In today's episode, Kip dives into the latest market developments starting with the stronger than expected jobs report and its unexpected implications, including reactions from gold, silver, and other commodities. He concludes with thoughts on maintaining an optimistic outlook and understanding the impact of a strong economy on corporate earnings.

Don’t look back to because the market is closed. Good Friday afternoon, everyone. Kip Herriage here with the daily bearing investing podcast. Hope you had a good day today. Hope your week is fantastic as well. I’ve got a few things to talk about important today. Let’s get right to it.

Jobs. Gonna start with the jobs report this morning, which came in stronger than anticipated, which it threw a monkey rich and everything, let’s be honest about it. But a lot of reactionary things happened today. You know, gold got smacked, silver, the miners got destroyed today, but it didn’t stop there. It was throughout the metal spell, throughout the commodity. When you see that. We’ll get to that in a minute, because I want to walk you through what, I’ve seen this happen a few times in my career, and it’s almost invariably the same thing. It’s reactionary and it’s not to be acted on, not to be in either direction.

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If you could do anything by. But typically these things tend to shake out for a few days. Again, we’ll get to that in just a moment. Nvidia to talk about Nvidia’s ten point split taking place after today, starting Monday 10th, one stock split, and talk about the importance of that, what it means, both Nvidia for the markets and for the Dow Jones. I think there’s a play here. And what else? Oh, it’s not just the jobs data. We got CPI next week. So let’s just talk about the markets first and we’ll get to all this and some of the things that we’re seeing here.

First of all, I went on the day today, everything was down today, not big. There were no big losses here today. Matter of fact, the semis finished flat on the day. That, again, that’s our tell. The winner was the Dow Jones down 210% to 1%. That’s down 87 points after opening down close to a couple hundred points. And then rallying from there, one point up 200 points. Get finished at 87 points, as you have down six points on the day.

Russ? 2000 down 1.1%. Nasdaq down also down just over two cent, 1%. So Dow Jones slightly beat Nasdaq, but again, look, we’ve had a great, we’ve had a great move higher. We just hit all time highs in the Dow Jones S 500, excuse me, in the s 500 and Nasdaq this week and then, but we still have the Dow Jones 1100 points away from all time highs. So I think, we think there’s an opportunity there. And what else? Ten year yields, of course, this is the biggie. Ten year yields back up to 4.43% on the day on the job status. Let’s start there, because I kind of broke my own rules, if I’m being honest, and I don’t want this podcast to ever be about me, but, you know, you do listen to me and Tyler.

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So maybe it’s maybe helps to have a little bit of what goes on upstairs kind of my process, if you know me at all. You know that I don’t make predictions about these individual economic reports. I almost never do. And the reason, especially jobs reports, the reason is, number one, they’re completely unreliable. They’re revised almost all the time. Number two, we look at trends. We don’t look at individual reports, we look at trends. Well, I came out on Monday pretty bold.

I guess I was feeling pretty cocky. And that’s breaking rule number one with the investing gods, because if you’re not humble, the markets will make you humble. But I felt we had a pretty good call on our hands here because all of these interest rate sensitive groups have been moving higher. In other words, rates have been moving lower. Everything looked like we’re getting near to a fed rate cut. We’ve had all these european central banks cut, Canada just cut. Right. ECB cut on Wednesday.

All the signs are there. So I really. High confidence, Tyler did as well. High confidence call that today’s jobs report was going to be a miss. And it wasn’t. We came in, as you, I’m sure, seen by now. Yes, it was 180,000 whisper numbers, like 160, but it came in at 272,000 jobs created, much stronger than anticipated. Now, the unemployment rate did rise from 3.9% to 4%.

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Of course, that really doesn’t matter. It’s a headline number, though. It matters to the public. It certainly does to the public. But average hourly earnings rose a solid four tenths to 1%, folks. That’s 4.8% wage growth a year based on average hourly earnings. So it’s a strong economy and that’s. We’ve never debated that.

We’ve never argued that it is a strong economy. But even strong economies go through. You have your little ebbs and flows. That’s just normal. Nothing goes in a straight line, certainly not with economic data from relying on the government to produce force. Right. But underestimating, I think, the fact that this economy is this strong, I don’t even know why I did that, frankly, because that’s our base case. Our base case is that this is a strong economy.

It’s going to continue to be a strong economy. Matter of fact, it’s going to gain strength. This economy is going to gain strength in the months and years to come, especially if Trump is elected. I mean, I think we see the writing on the wall here. But again, the point being, it’s these individual month reports, especially on this jobs data, that you’re just not going to hear me make a forecast on again, because what do you gain from it? I think I help people get positioned exactly wrong for this, and for that, I apologize. But let’s talk about the bigger picture, and I’ll get to medals and miners and the destruction there in just a minute, which is a derivative, of course, what happened today. But this doesn’t change the fact next week, by the way, get the CPI data. So what if we get a weak CPI report, which, again, I’m not going to make a forecast on this, but look at the trend.

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We have clear disinflation. Inflation clearly have been falling now for well over a year, was over 9%. What was it, a year and a half ago? And now we’re trending 3.53.6%. If you remove shelter and insurance. I think those are the two biggies, right from the last couple reports. Everything else is below the Fed’s target of 2% inflation. Again, a whole conversation about whether or not we trust the data. Okay? Because I never, we never, we’ve never trusted this inflationary data.

Right? But anyway, this is what we have to go off of. This is the system we’re in. Arguing those points gets you nowhere. It just doesn’t, it certainly doesn’t help you beat the markets. And that’s our goal here. So we don’t even get down in the minutiae and analysis paralysis. Because I tell you something, I’ve been in this business long enough to know that the people that do that, and I know these people, they never beat them. I’m not talking about individual retail investors, okay? I’m talking about people that do what I do.

The people that get involved in the analysis paralysis and try to debate and argue these economic reports, they’re horrible investors because that’s where their energy’s been in the wrong place. Right? Instead of analyzing companies bottom up and finding the best investments and sector analysis and things we do in the very best, instead of doing that, they focus on arguing about government data. And it’s just, you can’t win. I’ve tried that for a while. Okay. I actually wrote a book where the whole book was pretty much doing that. My first crash prosperity book so I feel like, I feel like we’ve run a little bit from that. The point being that’s not what our focus is.

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But the focus I believe we’ll see next week with the CPI data will be a continuation of the fact that, yes, inflation is falling, it’s going in the right direction at least. But the bigger picture point that I think not enough people are focused on is that the strength of this economy, again, as you know, been with us a while, we call this the innovation revolution. And the strength of that and what’s going to come from that is going to be significant, ongoing disinflation, maybe even deflation. That’s how strong from all of the, again, from the disruption and innovation. This is what history tells us. So we have a lot of history to go off of that points to this, especially in periods that we foresee of extraordinary economic growth that’s on the horizon. And I think that’s what we’re seeing. By the way, when you see, again, we talk about the roaring 2020s, people used to laugh at us.

Now they may not like hearing it still, because again, some people just are just born to be negative. I guess I’m not, I’m a glasses, completely full person. I’m always looking for a way to make money on the long side because I believe that what you think about your bring about, I know that to be true. And so that’s a whole other conversation, of course, but I believe that optimists beat the markets and pessimists lose to the markets. Look at Warren Buffett. Think about this for a second, different topic. Again, I know, but think about this. Think about every single really successful person that you’ve either known or that you’ve read about or heard about throughout your entire life.

What’s the one characteristic they all share? They are the eternal optimist. So that’s what I choose to be. And again, I think that’s how you, I think that’s how you win in life. But the way that applies to this is that we see data, we see what’s happening with this, the innovations to the fourth industrial revolution that is evolving right before our eyes and the way it’s going to revolutionize both the economy, certainly corporate earnings and human growth in our potential and our income and our wealth creation, our prosperity. And so all of that is going to continue, in our view, to drive inflation down. And again, if the CPI next week confirms that we’ve got just then, I think you’re going to see a lot of people saying that. Why did we get so worked up about this report. Now, remember, the markets didn’t get smoked today, right? The markets didn’t get hit hard.

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Even the bond market didn’t get hit that hard. The yield jumped back to ten year, back to a 4.43%. Who cares? It was 4.7% just a month ago, right? So it’s clearly lower. We shared a chart with our members this morning. On the ten year chart, it broke down. And today’s rally took exactly back to the trend line that it broke down from. Which means that trend line now serves as resistance. At least that’s in theory.

That’s technical analysis would tell you if this is a clear break and a trend change, then this trend line will now serve as resistance. So we’ll see what happens there. But again, nothing big happened today except in the commodity space. And because we have, we focus a lot of attention on that. That is something, of course, I’m very focused on here. So. But again, our views on the stock market, when you see an economy creating more jobs than fewer, some people think that’s a reason to be concerned. I don’t even know what they’re talking about.

All it does is make us more bullish. We want a strong economy. We want more people having jobs. Right? That’s what’s going to propel corporate earnings. From the point of view, you don’t want companies having to cut employees to increase their earnings. I’ve been through those cycles. They actually work. I don’t like them.

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Because you’re having to profit from other people’s misery. There’s no fun in that for me. Right. So we want to be profiting from a bull market that is based in an economy that is rock solid and growing. That’s what this number report was today. So again, the only shakeout here again was in commodity space. Let’s talk about that now, by the way. So I was up late, up early this morning, and I was up.

I went to bed at 130, woke up at 430. I went into bed at 130 this morning, and gold was up $10 an ounce. And I went to bed, I slept for 3 hours feeling great, ready to rock and roll. Woke up and like, gold’s down 30. What just happened in the last 3 hours? Why did I go to bed? Probably better I did than having to wake up and watch that chinese water torture as gold starts getting cracked. My very first thought, I tweeted this out early this morning. Very first thought was, all right, somebody in the Biden administration leaked this data because they’re known for doing it. This is a criminal enterprise that’s running our country right now.

And these administrations leaked our criminal. There’s no question about it. If this has happened, administrations passed, there’d be prosecutions. There’d at least be talk of prosecutions. Not that there would be, of course, because no one ever goes to jail in these administrations anymore. But this data is not supposed to be leaked. Well, it was leaked, clearly leaked. And so I woke up to gold down.

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I was like, okay, well, that’s not good. But now I was like, wait, okay, silver’s down with it. I understand that. Why is copper down two and a half percent? Right. Well, why does this extend? Why would this strong economy is good for copper? Okay, so with the electrification of not just the US, but the world, copper goes in everything. This makes no sense, right? So my first thought this morning was, okay, this is reactionary. This is reactionary, and that’s where I believe we are today. Now, let’s get the hard numbers here, because, again, this is a.

This is a hard. If you’re long medals and miners, and we are. This is not a fun day. Gold today down $80 an ounce right now, 23.10. That’s down 3.3%. Silver down 6.7%. Again, silver is really more of an industrial commodity than a precious metal. And, I mean, obviously it’s both.

But again, in a strong economy, silver shouldn’t be down. So you see the disconnect here, right? At least this is how I view it. And so we saw across the commodity metal space, we saw pain today. The only thing that wasn’t down was oil. But they came out. The Biden administration’s refilling the SPR now, taking advantage of low oil prices, which they should be doing. But anyway, I think we’re now for that. I think you would have seen oil down as well today.

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Now natural gas is up 4%. That’s a whole other beast. It’s its own commodity trades on completely on supply and demand and what is expected. And natural gas, I think it’s about to go on a tear here. That’s our view. And we have a lot of exposure to that through, of course, lost soldier oil and gas, which just is one of the most exciting plays of my lifetime. That’s a private deal we’re involved with here for our very membership. So that’s my view, by the way.

I don’t want to stop there. Let’s continue in the devastation so I can own up to this. GDX today, the minor ETF down 6.6%. Okay, now on the chart, it tells, the chart tells a different story because it’s now pulled back to just below the 50 day moving average, still 10% above the 200 day moving average. And again, from a longer term point of view, meaning back to the end of February, this, there’s, there’s been no hotter group. This has been the hottest group, the miners up at 1.46%, I believe, in a span of, what, two, two and a half, three months, something like that. And so again, but now it’s back just below the 50 day. So the chart just says, okay, that’s an ugly day, but it doesn’t nullify any kind of a bullish chart pattern whatsoever.

And so you know that. But that’s where the pay was built today. So I wanted to walk everyone through it. Spent all day looking at this, trying to make sense of it. And I’m telling you, this is reactionary. And it certainly has very little to do with a strong jobs number or the fact that the Fed is now probably going to have to put off cutting rates. That just doesn’t matter. It just doesn’t matter.

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Okay. It just doesn’t matter. Then that’s, I think, where we’ll wind up with this, when we’ll look back on this in the days to come, certainly in the weeks to come, and we’ll just say, yeah, it was another shakeout. This group’s known for it. And guess what? It was buying opportunity. So that’s how we’re treating it. But I will say, for those wondering, I had some emails today. So are you buying this dip? No, I don’t buy waterfall.

I don’t buy these waterfall declines. I want to see at least another day’s action and it might mean I have to pay a little more. But if there’s something I’m missing, I want to find out what that is first. If there is something, I don’t think there is. But we’ll wait. We’ll wait till Monday and we take a fresh look at it. I do believe that these probably are a great buy here. Longer term, if you’re a long term investor, absolutely.

But in the short term, again, we don’t like to, you know, we don’t like to catch falling knife, as they say. So we’ll be a little more patient with it to make sure we didn’t miss something with this move. I don’t believe we did. I don’t think so at all. Okay, let’s, let’s talk about Nvidia here now, because again, today they markets closed the course on Monday. If you’re on Nvidia stock, you’re going to get ten times more shares and ten for one stock split. And these are very positive, by the way, bank of America, is that with a good study on this, the average, just the average stock in the year after a stock split has been up 25%. This goes back pretty long ways.

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That’s after the stock split. So I know some people were saying, well, it’s running up because of the stock split and that’s going to be it. No, that’s probably not. Almost certainly not going to be it. This is the bell of the ball. This is, this is, you dance with the date, the brunga. And this is the one, this is the one of this bull market today. And we don’t own it here in the VR portfolio individually, we do own a three time leveraged GF that has about a 20% position in Nvidia.

So we have not direct exposure, but very strong indirect. Well, I guess it is direct exposure to Nvidia. We own it directly. And so I think that, again, is it overbought? Yes, extremely bought. Has it been more of a bot? Actually it has, but now it’s now a $3 trillion company again, roaring 2020. Joining Microsoft is the only two $3 trillion companies out there. It won’t be that long in the future. Somehow, $4 trillion companies, because, I mean, that’s this bull market.

That’s what we believe for some time. And why would we change our two now? Nothing’s changed. This is where we’re headed. And I also put out a tweet that I shared this morning in our letter. You know, now, I’ve said this before, but to make this point clear, you know, from 95 to 2000, I managed about $100 million to two companies public during the.com melt up. And it was crazy. It was a blur even then. I remember thinking, times seems to be going faster because everything was happening.

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So we were working like crazy because, you know, you strike with the iron tight. And we realized, we recognized, okay, this is a, this is an interesting bull market. And if we weren’t making our clients 10% a month, they were seriously looking for another advisor that could and would. So there was fierce competition to make your people money. The brokers that were lazy and that didn’t stay locked in, they lost account after account after account. And they frankly, most were out of the business when the Nasdaq crashed 75% after the.com top, most left the business. I happened to retire in 99 just about six months before the top, because I thought I saw what was about to happen. And again, after 15 years in that environment, that was enough for me.

And I’ve been very blessed and fortunate to have some success and be able to take some time off and do what I wanted to my family become a dad and a husband again after five crazy years. But again, that was then. And so I think I’ve got at least somewhat of a unique perspective to what’s happening now and again to the people, to the doubters, and to the perma bears, which are really, they’re not really investors as list builders. We know that. Right, because they know for yourself. I mean, who has time for that crap, right? Right. But to those people, I would just say they just don’t see what’s coming. They will.

I think they will. But most people don’t see this, what’s coming. They don’t recognize what Nvidia represents and what this AI cycle and innovation revolution represent, because this is a game changer. It’s a long term game changer, and it’s going a lot longer than five years. A lot longer than five years. So we’re staying locked in, we’re staying focused on the big picture macro events that are going to make this bull, continue to make this bull market. And then we got to deal with the short term shakeouts like the miners today. As you can tell, I’m pretty hyper focused on this because we got a lot of people in these.

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And I also said yesterday in our letter, this period reminds me very much from the miners point of view of 2003 2007. Take a look at the chart. I remember this pretty well because in my second ever very letter, I recommended gold, silver and Newmont. We didn’t have GDX was not an ETF then I didn’t come along for a couple more years. So we had to pick the biggest miner this time, Newmont Mining. And so I recommended gold at like 375, silver at $5 an ounce. And the Newmont mining, I don’t remember what it was at, but I recommended those three in my second ever bureau letter. And I mean, this massive bull market was then underway.

It took off. It was. Timing was pretty good there. That’s actually when I thought I might be able to do this for a living, because I was like, okay, maybe I understand some timing things here. Having the VRA system certainly helped as it continues to. But, yeah, 2003, interesting about that timeframe, Greenspan was fed chair. Irrational exuberance. He’s a horrible call.

But for 2003 2007, that’s also, by the way, when Warren Buffett said derivatives are weapons of mass destruction. And then we learned during the financial crisis that he had mass exposure to derivatives and had $40 billion worth of paper losses, had they not bailed the system out, guess who? Guess who would have been in serious trouble had the government not count come to Wall street, to the banks, and to Warren Buffett’s aid, granddaddy Buffett would have been buried and may have lost his company. This is a story almost no one’s talking about. I talked about it at events for a long time, and it came home one day and found out my JP Morgan chase accounts have been closed. We banked for 11, 12, 15 years, I think, actually. Anyway, I stopped telling that story, but that is the truth. And so Buffett is. Gave it the name, right? Weapons of mass financial destruction.

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And yet he used them to a large degree. So hypocrisy on Wall street never ends, does it? That’s why people giving this guy roaring kitty so much bullshit, you know, so much flack, right? The gamestop guy. I mean, look, it’s, let him. It’s his money. Let him do what he wants to with it. You know, maybe target the slime balls that are on Wall street and the hedge funds and the high frequency traders and the many others tied to that environment that are really, Robin is playing let this guy have fun just to watch him and enjoy it. You don’t have to like what he’s doing. You have to like him.

He, very frankly, strikes me as an oddball. Okay? I don’t think he and I have anything in common, but I think it’s fascinating as a ton of the times in the roaring two thousand twenty s to watch because it’s going to keep happening. This is the beginning. This is the beginning. More things like this are going to happen. More and more. Take it in, enjoy it. This is fun.

They don’t. No one should get worked. I see people getting worked up about it and calling them all kind of names, trying to disparage them, trying to dox them. I mean, come on, really go after the real bad guys. Not this guy. Just watch this guy and enjoy or not, whatever you want to do. But anyway, 2003, 2007, the thing was unique about that timeframe is that the miners and equities, Nasdaq has 500, Dow Jones all went up together. This is that timeframe from that point of view, I believe.

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And so these shakeouts are opportunities. And again, I think it’s a bull market. A bull market. I’ve said it for a long time. Long gold. I’ve owned gold longer than 99.9% of the people that talk about gold on your commercials, even on Wall street. No, I’ve actually done it right. So I think I know this group pretty well and how the personality of the group, the character.

And again, this is shakeout. Should not change your view on metals and miners. And I’ll leave it there. Yeah, I’m a little obsessed with today. I hate being on the wrong side for a day even of these trades. Hey, ruin my weekend, tell you the truth. But, but I think all will be, the ship will be right in next week. So I think this is very similar to that market.

But the story about Nvidia, the ten for one split, I’m going to come back to that, is that the rumors are, and I think this is probably going to happen, Nvidia is now, because the Dow Jones doesn’t add expensive stock to the Dow Jones industrial average. This stock split for Nvidia, instead of being $1,200 a share come Monday, going to be dollar 120 this year. So, yeah, all the bears that said Nvidia is going back to dollar 100, they’re about to be right. They’re finally going to get it right as the stock gets split ten for one. But anyway, so now I think that you’re going to see Nvidia. Takes time for that to happen. Who knows? But I think Nvidia is going to be added to the Dow Jones. We know what it’s done for Nasdaq.

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What might it do for the Dow Jones? Which is why I featured it this morning as our focus chart in our very letter. Number one, I think that’s a pretty good reason for the Dow Jones to go up as Nvidia is going to be included in it. Number two, the Dow Jones is 1100 points lower then it’s all time high. That’s a two. I read it this morning. What is it, one point, I forget the exact number, but it’s the most oversold of the major indexes. And, you know, again, SF 100, Nasdaq have rallied back to all time highs. But again, Dow Jones eleven points below, significant percent below.

So I think there’s a catch up play there. I like the Nvidia angle, too, being added. But the other thing is that on the very investing system, the Dow Jones just hit extreme oversold on stochastic just a couple days ago. So it’s got light years to run before it even sniffs heavily. Overbought or extreme, any of those things that we concern us. So I think that you’ll see this rotational thing that Tyler’s been talking about happen with the Dow Jones, and we might even have a period where maybe Nasdaq drops a few days and rose 2000. Follow me. But the Dow will support it.

And that’s rotation has been supporting this bull market. It’s happened with the mega cap, the tech stocks. It’s happened. The internals have fallen apart from time to time. But there’s always been one key steady group that’s been rotated into, and that’s a sign of a strong bull market because when all of these start firing, as these cylinders start firing, pistons start firing, then you’re going to see the market really rip higher. We’ve had doubts of that. Right. And so I think that’s the nature of a young bull market.

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That’s where we are. It’s a textbook young bull market. Also, we shared this this morning. Oh, I guess that’s my final thought. Dow Jones. I think it’s going to, I think, I think of all the indexes, it looks the best, at least to us on the charts for now, not just bearing Nasdaq at all. Believe me, I’m saying as a short term trade or investment opportunity, I think the Dow is going to be supportive of the broad markets and is going to probably lead higher. Share this, this morning as well.

Tyler showed me yesterday. Fascinating story here. This has been reported some time. Remember, for a while they’re saying there’s more than $6 trillion in money market accounts. It’s an all time high. And we’re like, wow, at some point, if that money starts coming in the stock market, look out. Well, it’s now 7.3 trillion. It’s jumped 1.3 trillion in no time at all.

They say people aren’t flush your cash. Nonsense. Absolute nonsense. People are flush your cash. And derivatives of cash, maybe equity in homes. Right? But people are flush. People are flush. We’ve covered this so often and still people are fighting it, on it.

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And I just, I don’t understand how people can’t look at facts and understand that is we are not consumers. And american companies are the strongest position they’ve been in decades. Certainly companies, again, debt to their debt to market caps at 50 year lows for american companies they have the ability to lever up is unbelievably significant here. But again, back to money markets, more than $7 trillion in money markets, and now that it looks like money starting to come out of money markets, so if that money is going to start going into stocks. And it is because it’s time for that phase of the cycle, right? That’s the fomo. If you’re missing out, it’s going to start kicking in. And then when you see the reports that we’re seeing about all the deals being done, private equity deals, we’re working on some of these too. You see these, the amount of money that’s going into these deals because these companies at some point are going to go public and then we’re going to have our hot IPO phase.

We’ve talked about. We’re not even sniffing that yet. That’s how early we are in this bull market. Okay? So that’s, again, that’s another thing just to understand and study. As far as you talk about cycles and you talk about, again, if this is the next 95 to 2000, so many things have even yet to happen that happened in. This is not. It is, this is 1995, this is the beginning and it’s going to go longer because it’s real. These aren’t dot air companies.

These are actually $3 trillion companies, okay? These are real with real earnings. Funny thing about Nvidia, by the way. Last point of Nvidia, its price earnings multiple is actually going down because its earnings are growing at such a fast rate. That did not happen in the.com bull market. Right. We’re not even getting close to 80 to 90 to 100 times earnings, okay. Or 50 times cash flow. Right.

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This is that. We’re not, we’re not anywhere near that yet. These are real companies, real earnings, and they are cheap. They are cheap based on metrics, anything close to what we saw in 95 to 2000. Alright, let’s get to the internals today and we’ll wrap it up, let you have a good weekend. I’m gonna make it real short and sweet. Internals were advanced decline three to one. Negative for both NYSE and Nasdaq.

Again, these weren’t good readings today. Down volume, NYSE was 73%. Down volume. Nasdaq was better at 58%. New 50 highest lows came in just a little negative, but that’s about it. In our commodity space, already covered that really down across the board. Probably no reason to cover that. Again.

Why go through the agony again, right? And finally on the day, also again, interest rate sensitive groups, that includes now bitcoin. Bitcoin down to 69,325. I think it traded to a high today. If I don’t have that 71.5 today, I think so, down a couple thousand from the highs. Everyone’s got the same question. How is it possible that these billions of dollars of fresh buying are coming into bitcoin and it’s flatlined? Okay, well, it’s called futures markets. And look, if you. You know, you know the.

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You know the impact that futures trading has had on, for example, GLD, the. The gold ETF. But let me tell you, there. There is no comparison here, because these bitcoin ETF, these bot. Bitcoin ETF’s actually own the bitcoin. Right. Not a derivative of. Not.

It’s not been hype. They can’t be hypothecated. That’s what GLD is, hypothecated. You don’t own shares of gold. You own shares of GLD. They just keep printing them. So that goes on for forever. That’s really destroyed the gold market.

Tell me that wasn’t by design. Right. But with bitcoin we talked about before, but the volume of trading happening in the futures markets, there’s now $6 billion short bitcoin in futures trading. And so I think a lot of this is. Some is short term positioning, some is hedging. And there’s another thing that’s happening because there’s so much demand for bitcoin. You’ve got firms that are shorting bitcoin for delivery of to their buyer. They want to say, maybe a buyer wants to buy a billion dollars worth of bitcoin, but they want to do it over a year.

[00:31:48]:
Well, they know they got to pay margin interest on the short and along with any losses, by the way. But they’re okay with that because they’re buying for long term positions, but they don’t want to run away from. They don’t want to get 150,000, 200,000 before they get their position filled. There’s a lot of that taking place. So there’s a lot of hedging and, yes, shorting, but I think most of that is hedging going on. And there’s a lot of trading as well. There’s a lot of trading on both sides. But I would not be concerned about that because these ETF’s actually own the spot.

They own bitcoin. Right. They own bit. You can’t say physical because it’s not physical. They own bitcoin. So there’s no comparison between that. I wouldn’t be concerned about that. I think it’s all going to work itself out in the wash.

And the final point I’ll make is the one I’ve made so many times, Tyler, as well, just say thank you, that it’s cheap because it gives you an opportunity to buy more. And I really believe that is the smart money play. It’s what, it’s what we’re doing here. We dollar cost average every month into our favorite growth stocks and bitcoin. And then I use gold as my savings account. Silver is a separate investment, like 70 30, maybe 80 20, gold and silver. But bitcoin I’m treating as a tin bagger. And so every month I dollar cost average into bitcoin.

[00:33:03]:
Been doing that for some time and I reckon we recommend that. I also recommend, by the way, I think it’s something we’re probably going to make an official policy here, but we’ve been taking 10% of our profits from our equity positions, right, every year and rolling that into gold. I think we’re going to start taking some of that, rolling that into bitcoin as well. I don’t see any reason not to do that. And then again, because as this, as this, as this, as this cycle moves on, you’re going to own more and more bitcoin and gold. Because at some point, you know, the bull market is going to end. Maybe it’s ten years from now, maybe it’s 20, we don’t know. But again, I like the idea of saving in scarcity, vast in scarcity and store value.

And you cannot tell me that bitcoin is not a store of value. Anyone that says that, I think doesn’t know what they’re talking about. Bitcoin is absolutely a store of value, just as gold is. All right folks, look, I can keep going, but I won’t. That’s it for the day. Hey, always appreciate you listening. Have a great day and even better weekend. We’ll see you back here again Monday after the close.

Bye.