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VRA Investing Podcast: Market Momentum, GameStop’s Potential, and the Bull Market’s Next Moves – Kip Herriage – June 11, 2024

In today's episode, Kip dives in to the latest market trends and investment opportunities, including an in-depth analysis of GameStop's potential for a short squeeze and its shift from retail to gaming. Kip breaks down market upd ...

Posted On June 11, 2024Episode 1402
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About This Episode

In today's episode, Kip dives in to the latest market trends and investment opportunities, including an in-depth analysis of GameStop's potential for a short squeeze and its shift from retail to gaming. Kip breaks down market updates on commodities like gold, silver, copper, and crude oil, along with his thoughts on natural gas investments. As we navigate through these exciting financial opportunities, Kip emphasizes staying measured and prepared for market downturns, allocating gains to safeguards like gold and Bitcoin, and maintaining a positive outlook on the innovation revolution and the roaring 2020s.

Transcript

Don’t look back because the market is closed. Good Tuesday afternoon, everyone. Kip Herriage here with the daily VRA investing podcast. Hope your day was a good one. It was gonna be a little different, a little bit of a different podcast today. So bear with me. I think. Well, these are a few different topics.

A lot’s happening. Unique things are happening again. We’re in the roaring force. It’s not even up for debate anymore. Okay, I’m sorry. It is not even up for debate. We are in the roaring two thousand twenty s. The sooner that investors understand and start buying into this, two things will happen.

Number one, you’ll make more money in the markets. Number two, you have a lot more fun doing it. This is that time. Let me tell you what I’m talking about today. Of course, first of all, the obvious, right? All time highs again. S 500 Nasdaq big day tomorrow. CPI data in the morning at 738 30 Eastern hour before the market opens. And of course, the Fed meeting today.

And the infamous J Powell the madman, the money printing rock star Jay Powell himself, our new financial masters of the universe takes the stage at 230 Eastern for his monthly, monthly, monthly, you believe this monthly presser? This is just insane. But again, they got to get their airtime in. So I’ll talk about that a little bit more later. But I want to tell you a couple topics we’re going to get into today. Gamestop. Now, to be very clear, this is not and probably won’t be a VRA, official VRA recommendation, but I did buy today in my own portfolio. I’m going to walk you through that because it’s a fascinating story. We played AMC when this whole thing happened.

[00:01:47]:
What was that? 2021? I think when the whole meme stock move started, we were involved in AMC, both in the common stock and the options. We did quite well. We did quite well and we said thank you very much, and we moved on. Never, never to touch it again. Donald J. Trump DJT Trump media that’s a meme stock. It absolutely is. We played that.

We did very well there. We made 100% gains in that. So we’ve been in this space. And that is a meme stock. It’s a cult following. Complete meme stock. It’s not a hot one. Matter of fact, it was down again today.

But that’s not the topic here today. Topic today is going to be Gamestop and why I bought it. And to tell you what’s happening here. Most of you know the story, but I’m going to give you maybe a little bit different spin on it here, because if I’m right, there’s another kind of financial engineering. One of our five big broad mega trends was financial engineering, okay? And this is financial. Looks to me to be financial engineering of a very advanced level. Most people think this guy, roaring Kitty, Keith Gill, I think his name is, is kind of a clown. And if you watch his videos, I mean, he does appear to be a clown.

[00:03:02]:
Wayne actually knows him. Wayne Root, good buddy. Wayne actually knows him from an event they were at together. And I guess they said the guy’s a complete goofball. But you understand, this is, this guy is not Wayne’s. They would not be friends probably in any kind of a, any kind of a world or universe that we live in. Right? But, yeah, that’s, you know, he is perceived to be a goofball, but this guy has turned his net worth into a billion dollars as of, what, a couple days ago. So it’s, you know, this is, this is someone to be paid attention to for sure.

And so I’m going to talk about that. I’m going to talk about, oh, Nvidia is so yesterday’s news. Nvidia who, right? Who cares? They’re now the third largest company on the planet. They’ve now been surpassed. Microsoft is number one. Apple today became number two. Apple’s market cap increased $215 billion today following the beginning of their annual confab to get together, the developers conference. Right.

And been very well received by the people, I believe, that matter most. And one of those people is Dan Ives. Web of securities Dan Ives in my opinion, I don’t think this is a close second. This guy is locked in. He’s a very colorful guy. You’ve probably seen him on tv. He wears these really bright outfits, but seems like, I don’t know him, but he seems like to be, seems like to be a good guy. He’s everywhere.

[00:04:32]:
And he’s completely locked in, plugged in to what’s happening in this fourth industrial revolution, in this innovation revolution, in the roaring 20. Twenty’s, all of this is happening together with this massive amount of global liquidity we have. Again, I want to say this again, I do not know, I do not know how you can’t be locked into this and recognize what’s happening here. All the money that’s been printed, the $7 trillion sitting in money market accounts, the fact we’ve entered the AI boom, right again, we’ve called it the innovation revolution because it’s so much more than just AI. I don’t know how you can know all of this and not be extremely excited and optimistic. And I told Tyler this in our. In our free podcast meeting a few minutes ago, and I know Todd agrees with me. If you’re not an optimist, I can’t imagine what your life is like right now.

This is the time to be optimistic. Not a glass is half. I’m a hundred percent glass as full. Okay. And pretty much always been that way. You know, sometimes you go through things in life and the markets, etcetera, and political, and these. These plan demics and stuff. You’re forced to be.

You’re dragged into it, right? And there’s nothing uplifting or positive about it. But, you know, when you’re going through it, it’s an important learning experience. That all started for me with 911, and I won’t go through the whole story, but that was my big wake up call. That was the light bulb moment for me that said, what the f. Is going on here? Because this makes no sense. And so that started the process for me of being a contrarian and a quote unquote conspiracy theorist, because I like being right. So I’m a proud conspiracy theorist. Only conspiracy theorists have been right consistently over the last 23 years.

[00:06:21]:
So I’m proudly in that group. I know most of you, probably everyone’s listening to this, which has your hand in the air. Me, too, Ken. Me, too. Keep going. Right. So, yeah, that’s exactly where I think people should be, is you should be an optimist, be a contrarian. Doesn’t mean you can’t be a realist.

Okay, I am a realist. I don’t live in a fantasy world. But I think this is an amazing time to be alive. And if you’re an optimist, I think you’re starting to see, okay, there’s some cool shit happening here. And this is an opportunity to build significant wealth, to have fun doing it, to get to know a community of people, like minded people like me. Right? And maybe these are all. This is our new circle. It’s our new.

All our new friendships that we’re going to have for the next decade or two. This is not going to be a short term phenomenon. This is going on for a long time. And again, the people that are really locked in are going to build wealth that will transcend our generation, in my opinion. And then there will be a back end to this. Okay? We’ll talk about this in years down the road. We’ll be prepared for it. We’re taking, right now, taking 10% of our gains from the stock market every year, putting it to gold.

And now bitcoin, that we put that, the big bribe, but we said it was gold. I’ve now included bitcoin in that group. So we’ll be prepared for the back end of this should shit go sideways. And it likely will. But who knows when? No one knows that answer. No one, even the smartest of perma bears, no one alive knows that exact answer. Well, maybe some of the planners do, right? But most people, regular people, you know, that are just participating in this alternate reality or whatever we’re experiencing here, we don’t know. But there’ll be a back end, and we’ll be ready for it.

[00:08:09]:
And that’s if you know your history, like from the Obama Republic, you know that if you had gold, 1oz of gold would buy you an entire city block, key property in Germany, right. 1oz, because of the unbelievable million percent hyperinflation that they had. And again, when that happened, it happened fast, but you still had time to prepare for it. The lead up to that, by the way, featured significant wealth creation. Again, we have more options to invest now, don’t we, than they had then. But, boy, do we ever, right? Cryptocurrencies now. So many derivatives of cryptocurrencies. But anyway, so our game plan is to be prepared.

We’re preparing along the way. But again, right now, the place to be is the stocks place to be is in any inflationary asset equities, real estate, housing, cryptocurrencies. Of course, bitcoin is our preferred crypto choice there. And that’s just the era we’re in. And so that’s, again, most of you know this listing, but want to become really clear for our new folks. That is the way we’re approaching this, this era that we’re in. And also going to talk about TEsla today a little bit. They got the vote coming up.

We’ll know on Thursday whether or not they’re going to move the company to Texas, which I believe will pass easily. Now, the question is, are they going to the incorporation of Tesla? They’re already here, of course, at the gigafactory in Austin. But the other question is, Will. The important question is, will musk compensation package pass? And I don’t like, I got to tell you, I don’t like the way the stock is trading. Right. It’s 170. It started the week at 177. I really expected the stock.

[00:09:53]:
I think it’s going to pass. It’s trading like it’s not going to. It’s trading like, it’s not going to. And let me just. I don’t want to spend a whole lot of time on this, but I’ll just say this now. If it doesn’t pass, the fear is that Elon’s going to take his toys and go home. Now, he’s not going to stop working at Tesla and doing all these amazing things, but the fear and the risk. And this might just be fear mongering from the Elon Musk camp.

Right. To make sure people vote the way he wants them to, probably is, I would think, a lot of that, smart guy. Why not? That’s what we live in. But I think the fear that people believe is out there is that he’s going to die. He’s going to take away the AI division, at least his energy of it, and then also the robotics. That’s Optimus. This is Optimus. Between Optimus and robotaxis, one of those two is going to be.

I mean, it’s going to be. That’s a. Each of those is like a five to $10 trillion idea. Okay. Long term. So, you know, we don’t want to see that happen. I don’t know that it would. And by the way, there’s another backup plan.

[00:11:04]:
Even if this doesn’t pass, Elon Musk has got plenty of other options through the board. They are going to, of course, compensate him. And so, you know, maybe. Maybe it’s all going to be figured out that way. I don’t like the way the stocks trading, but. But again, I’m a long term investor. I’m buying it pretty much every week at this point anyway, personally. So that’s the Tesla story.

We’ll know Thursday. Right. A lot of pushback, though, for sure. Some big institutions. Matter of fact, the world’s largest sovereign wealth fund, Norway, it says they’re going to vote against it. They want 1% of the stock. But I think retail is going to carry the day here. If retail investors vote, I believe this passes.

I expect it to pass. Dan is, by the way, just aforementioned Dan is Webbush securities, the tech analyst of this roaring two thousand and twenty s and beyond. He believes it’s going to pass pretty soundly. And again, he’s got it. I think he’s the smartest guy in the space right now. So I’m going to go with Dan Ives on this. Also, mention this before I forget it. I told you, can be a little unique today by the administration.

All right. You know, again, no, this is not about Hunter Biden. The Biden administration today proposed that I am so 100% behind this that all medical billing reporting should be removed from your credit reports and your credit scores. Absolutely. They should be. Our medical system, hospital system, doc, all of this. The medical industrial complex is so royally screwed up that people just don’t know better. We don’t work in this space.

[00:12:44]:
They gouge us, they charge us for things. All of these bills are incorrect and the charges are outrageous. My wife is having a second. Actually, it’s a third, but because they’ve screwed the first one up. But we didn’t get it. We didn’t get a refund. Having our third knee replacement this Thursday, each one of those is $125,000. Can you believe that? I could not believe it.

Thank God we have insurance, but still, there’s a lot out of pocket there. Unbelievable what they’re charging for this. Even they can’t believe it. They’re like, yeah, just a few years ago, you could have done it for a quarter of this. This is outrageous. But that’s the lobby. That’s the industry again. We have the military industrial complex and the medical industrial complex.

And after Rona and the pandemic, who trusts any of these pools? So the bottom line is Biden administration wants to remove all of it. Now. Right now, the way it works is anything below $500 as far as unpaid bill is not reported on your credit report. Anything over 500 is. So Biden’s proposing, and this just came out today, that regardless of the amount, it will not appear on your credit report or affect your credit score. And I say hallelujah. I think Trump absolutely should get behind this. He probably won’t because he’s very much in the hip pocket.

I don’t know Biden is either. Maybe it’s just boat buying. You know, it probably is. You know, once the election’s over, assuming Biden wins, this thing might just disappear. That’s not our point. The point is this is something I could get behind. I think most Americans could, because it’s just our system is so completely messed up that good people should not be had their lives ruined, be bankrupted, or not be able to buy a car, or if they do have to pay 30% interest rates and not be able to buy a home. The report I read said that this is going to, if they can pass this, that something like 12 million Americans would then be eligible to buy their first home.

[00:14:41]:
Okay? Now, where I come from, again, I’m second America guy. We grew up with nothing. I never lose that side of who I am. And I remember what it was like not having money. Okay? We grew up in a trailer, all right? So I know what that’s like, and it’s not a lot of fun, right? We didn’t know we were broke at the time, of course, but looking back, like, wow, that kind of sucked, you know? But, yeah, you do what you had to do, and it may be the person. I am not complaining, but I recognize the pain that people go through. Good people that want to pay their bills that they can’t, people that do not want to file bankruptcy, that want to pay back all of their bills, that want to keep a good credit score. But you get to the point, do I buy milk for my baby or do I pay.

Can I pay off my medical bills? Right? These conversations should never have to happen in this country, at least not to the degree they are now. So I. I’m saying kudos to Biden administration. I don’t care if they vote by. It’s the right thing to do, and you absolutely should get passed. I’m all for that. Okay. And I’m a wrap today.

And I think you want to stick around for this because this is a minuscule percentage of probability that it’s going to happen. But we’re a little different here because we like to talk about things that Wall Street’s not, and we like to talk about risk that may be out there. And it brings me back to a conversation I have with Wayne Root many years ago when he told me, this will give you a little teaser. Wayne told me many years ago, when Biden first got elected, goes kept. You don’t understand. When communists take power, they do not leave. You must force them out. So he’s saying basically, an election, election laws won’t matter.

[00:16:26]:
So how could that happen? What would that look like? I’m going to walk you through a possibility today, because, look, we do have some signs pointing to a lot of risk, don’t we? Okay, I’ll leave it there. We’ll come back to it again. Low probability, not fear mongering. I don’t do that. Don’t believe in it. But we also don’t like spring. Last minute emergency investment. You know, we gotta.

Oh, my God. This happened. And we didn’t prepare you for it, so just sell everything. We don’t do that. But this way we could talk about it. We’ll have months to talk about it. We put some stops in, maybe buy some insurance at the right time, we’ll be ready for it. Mentally and emotionally, being ready for these things is just as important as the event itself, we learned that from the pandemic, did we not? Look at the sheeple.

Look at the sheeple that you can’t believe. Agreed to go along with all this stuff and finally just got in line. Right. That’s because that’s how the propaganda, the indoctrination works. It’s incredibly powerful. The government knows this. That’s how they control us. So we want to make sure we stay out of that arena as much as possible.

I’ll walk through that at the very end of this podcast. Let me tell you, the markets first, I’m going to come back, then after that to GameStop. How about that? Because it’s fascinating story. Again, I bought the stock for the first time today, $20 a share. I’m watching after hours. Right now it’s trading between 29 and 30. So, you know, again, just bought it for the first time today. Again, we played AMC.

[00:17:51]:
I didn’t really understand the GameStop story. I’m not telling you. I do now. This is speculative completely, but I’ll come right back to it. Again, all time highs today, Nasdaq SB 500. Interesting day today because we started off ugly. Dow Jones dropped at one point, down 400 points. Okay.

But if you witness the VRA, I wrote this morning that it’s very common that on the day before the FOMC statement and depressor, which of course is tomorrow afternoon, it’s very common, like a high probability that the markets rally into the close. That’s exactly what happened today. Nasdaq finished up 151 points. That’s nine tenths of 1%. Right. Nasdaq was down big along with the Dow, although the Dow was, Nasdaq was the leader. Nasdaq went positive first and then semi followed. That’s a little bit inverse of what normally happens, but we’re not complaining.

Again, tech is leading. That’s a good thing. This is a good sign today. Tomorrow we get the CPI data. Okay. I have no idea. I whipped on the employment data on Friday. It was so out there, nobody had that number.

So honestly, in retrospect, I don’t know that I whipped. Is everybody whipped? It’s like it just didn’t even make any sense. It doesn’t jive with what we’re seeing elsewhere. The jobs data on Friday was the only positive economic data we had for the entire week. Everything else pointed to weakness. Okay. And by the way, the bond market now is giving up all of its gains in yields. Right.

[00:19:19]:
The ten years back to a 4.4% yield. It’s back below that trend line we’ve talked about, if you’re with us here, if you already know I’m talking about, it’s back below that trend line. That trendline is serving its purpose as resistance. Now, if that continues, guess what that means? Rates are headed a lot lower. That’s been our forecast all year. We’ve been, generally speaking, wrong on that. It’s been bout, you know, but generally speaking, we’ve been, we’ve missed the timing on the direction, but hasn’t changed our view. The rates are going lower, and they are, because again, innovation revolution disruption is taking place during innovation periods like this.

Extreme innovation that creates disinflation and rates fall. So that’s ultimately, that’s where we’re headed. That’s been our view. And I still think that’s exactly the right view. And I know, I know Todd agrees with this, too, but so tomorrow, CPI, who knows? I think, I think it doesn’t matter. I don’t look for a big surprise. The markets are ready for a negative. That’s why we open lower today.

That’s why we took a little bit on Friday. Certainly in the miners precious metals markets are all panicking in advance of such sell the rumor by the new stuff, in my opinion. So I think it doesn’t matter unless we get a bigger big shock, you know, then I guess it would. I don’t expect that. Don’t expect that. I think what we’re going to see is the markets are going to rally as they did today again, very, very good. Second half the day today again, Nasdaq up eight tenths, nine tenths, 1%. SB 500 up three tenths of 1%.

[00:20:48]:
Dow Jones is down three tenths. Russ, 2000 down. .36 so no, no damage really done anywhere here. Good gains. And what you want to see, that’s the area of tech and bond market, okay? That’s the area we want to focus on, especially right now, because people think the biggest risk are inflation and rates. So if those things are kind of corralled, guess what? We’re back off. We are off. We’re all time highs again today.

What am I talking about? We’re already in good shape. Right? But we like to, we want, we want our interest rate sensitive groups that we’re invested in here. It’s important that they rally. And I think they’re going to, I really believe, I think it was overdone what happened in the commodities and miners last week on the job Friday on the jobs data. It was way overdone. Okay. We had a little bit of respite yesterday, I think the GDX is up a couple percent. Today it was back down a couple, no, no, it actually rallied today.

Excuse me, let me get a quick drink. Yeah, GDX was down one point today like close to 2% and finished down just eight tenths of 1%. So I think that’s all over, done. I know it’s overdone. Okay. I’m telling you I don’t know. No, no, but how could I know? No, no, but my opinion, this is the bull market of bull markets for this group. So we just want to get a continuation of the trend that’s already in place.

I think that, so sorry, I think that that’s what tomorrow gives us, CPI and the Fed president, and here’s why, and I’ll wrap this whole segment up with this because it’s all terribly boring. That is gracious. Let me put a, let me get a quick mint in my mouth here. Something to some cough throughout the rest of this one last, while I’m wrapping this, here’s why at the end of the day, I think tomorrow Jay Powell is going to be dovish. First of all, that’s what he’s been, they’ve been, he stayed the course of late, which has been exactly the right move. Why else, why would he change his mind at all here? So I think the CPI data doesn’t matter because the trends going in the right direction. Right. We get two groups, we got housing, rent and we got insurance.

[00:23:07]:
Both of those are lagging indicators. That’s important to understand that. So they are falling, they just lag and we know what’s coming. Okay, so CPI should not be a problem. Jay Powell should not be a problem, although he can mess up a press conference, his last one was spot on. Remember how good it was? I, we gave him a standing ovation. Tell I came a standing ovation, that’s never happened before. Has a horrible fed chair, reactionary, really, no street smarts at all.

It’s just a book smart guy. But he does seem like a, like I like him, he seemed like a likable guy. I always liked Ben Bernanke too, you know, and so I liked, I liked yelling too. I mean, just seemed like nice people to me, frankly, we need more of that. But of course they’re all part of the fed so they can’t be that nice. Right? But they’re at least good actors I guess. But, so I think Powell is going to stay the course. I think the markets are going to really, I think, I think tomorrow is going to wind up being a good day.

But the big thing, and I wrote this up this morning, is what’s happening in the regional banks. Take a look at Kre. We started talking about this a couple weeks ago. Kre started falling. And now you’ve seen reports probably of, okay, there are rumors that there are other regional banks in trouble. Remember it was in the spring of last year where we had the regional bank crisis. This is a big deal. Kre, the regional bank ETF, plummeted 43% in less than three months, okay? And it was everyone, you know, remember all the fear mongers and Perma bear, here comes the next 2000.

[00:24:39]:
Oh my God. The number of people that had big followings and their influencers that were claiming, you know, here, it’s going to be worse in 2008. I’m just, we had to battle these people and had to hold hands over this because these morons, and they’re absolute, they’re morons, they’re adding followers. They’re list builders. They’re not serious people. We said at the time, if you find somebody, remember, we said at the time exactly this. If you find somebody saying, here comes the next 2008, you know, you’re hearing from an idiot or someone that’s just building their account because there’s just no way. But banks have not now there’s, they’re always banks in trouble.

Let’s not kid ourselves, right? With the statement loan crisis, we lost like a thousand banks and markets, all they did was go up. So that’s not the deal here at all. Anyway. Banking industry has never been stronger, at least not in decades, like consumer. So that’s not a problem at all. It’s just not. Some regional banks fell, maybe, but that’s the concern. And this is something the Fed looks at, because the last thing they want right now is another Silicon Valley bank to spread to a few others.

[00:25:53]:
And then here we go, right? Because Kre in the last three weeks is down 11%, just dropped below its 200 day moving average. Okay? And it fell again today. It was down today, one and a half percent. And it close today just down, well, still down 14th, 1%. So it’s even further below the 200 day. But the key point is this, I can promise you, if there’s any one group that the Fed, Jay Powell and his buddies, if they, if there’s any one group that they watch, it’s this group, because they don’t want to have another spring. And by the way, had it not been for Nvidia, which in May of last year reported earnings and remember, that was the birth of AI. That’s when they just, they came out with the numbers nobody could believe, you know, and stock just begin to skyrocket.

Okay, again, video now. Chumps. Third place, third largest company. Bunch of chumps and losers hanging up. Just, just quit. Move on. Number one, Microsoft. No, Apple.

Number one, Microsoft. Number two. Now, I think I got that right. Apple gained 250 billion, $215 billion. Market cap today. Tyler told me that’s the second most ever. I think Microsoft is number one. It was.

And then now Nvidia’s third as far as biggest gains in a single day. But again, when you have companies gaining $200 billion in a single day, how can you not say that we’re in the roaring 2020s. How can you not say that unbelievable levels of financial engineering are taking place. Companies this size don’t grow by that much overnight. This means we’re in a very special time, folks. We are in that special time. I know you know it because you’re here with us every day. Thank you for that.

[00:27:39]:
But we do have new people joining it. And if you know me, I only go this forceful when I really believe we’re onto something. And we feel extremely confident about it. Not that we get them all right, but we do get a lot of them, right? All five are big bribes. All five of our megatrends in the big bribe are happening. We wrote that book two years ago. We started writing it three years ago, but they’re all happening. So again, we do our homework, and then when we feel confident, we want to tell you about that.

So you understand the level that we’re invested, we’re right there with you. If we recommend something, we own it. Okay, so Nvidia bailed off the markets last spring, and so the Fed is absolutely the last thing they want. It’s an election year, right? If they want their team to win this team state, right? You know, the unit party, I mean, it’s all the same pretty much now, except for a handful of people. Some of these people Trump supporting. Oh, my God. Some of these people that, these rhinos that Trump’s supporting, where he’s backing them over true conservatives, true, true american patriots. It’s just unbelievable.

Wayne root came out with a piece today. I’m so proud of him. We said, mister Trump president, I love you, but you’re exactly wrong on this Nevada senator race. When Wayne is backing this guy Gunter, who’s a true conservative and like an american patriot all the way through, and everybody that’s a true conservative, an american, again, patriot, loves this guy. And Trump backed his competitor. And Duane told me this story. I probably divulge you more than I should, but Wayne introduced Trump at two events in Nevada last weekend in Las Vegas, spent the whole weekend with Trump and his team. And so Wayne’s in that inner circle.

[00:29:28]:
I mean, how cool is that, right? You know, say six degrees of separation. We’re one degree away from the president because of our friendship. And long term, we’ve got back 20 something years now that I just do think that’s very cool. And anyway, now I’m thinking about other things. I won’t get off too far on the tangent, but, yeah, so, you know, Wayne, Wayne put out a piece today and said, you’re wrong, mister president. You’re just wrong. You got bad advice, you’re looking at the wrong polling. Whatever it is, McConnell and his team put press on.

Whatever the reason is, they’re not good enough. You’re back in the wrong guy. That’s why I love Wayne. Wayne’s the also the only guy, only guy in Trump’s orbit that has put Trump on the spot about these death jabs and about the plan dement. No one else has. Only Wayne Root did it. And I know that because we sponsored both of those interviews sponsored by VRA. And I asked Wayne to do it and he did it.

I mean, the sponsorships were only like $5,000. So we’re like, oh, absolutely. We get our name on the banner below and everybody that views this is going to see. Absolutely. You know, Wayne could have charged, hope he’s not listening to this. Wayne could have charged me a lot more than he did. Right. But, so we sponsored two of those interviews where Wayne puts Trump on the spot and nobody else has.

Kip Herriage [00:30:50]:
So, yeah, look, no one’s perfect. I get it. Who’s the better of the options, of course, is Trump. I’m not going to go down that road right now. I think it will be Trump. By the way, I kind of covered that in a podcast earlier, but we decided to, we really want to stay focused on, on the markets and making money and so polarizing, you know, we hear that 24/7 elsewhere. So if it’s something big, look, as we get closer, you know, we’re going to talk more about it, but we’ll keep it very measured. Okay.

[00:31:17]:
And we’ll try to stay down the middle and give our viewpoint. But again, I think these are common sense viewpoints. I really do. And like, it’s like the Biden deal today with Pos on medical billing. Yeah, it’s Biden. So I know some people were just going to give me the middle finger for daring to support something that Joe team Biden believes in. I don’t. I’ve never cared about any of that.

I’m at lifelong independent. I’m beholden to no one. If it’s a good idea, I will support it. If it’s a bad idea or a bad person behind it, why would I right this loyalty to a single person? I’ve never understood that. That’s not the way it’s supposed to work. We don’t have kings in this country, okay? We have human beings that either have good ideas and we want to vote for them or they don’t and we don’t. So fed is watching Kre because, again, they want their team to win. We cannot have another banking crisis in an election year.

So it’s not going to happen. Jay Powell is very aware of what’s happening these regional banks. I believe he’ll be dovish tomorrow, or at least stay the course. And I think the market’s going to continue to rally. Matter of fact, highly confident that the markets continue to rally here, as you already know. So by the dip, we’ll continue to be this marsh. Money strategies, GameStop cover it quickly. Bought it for the first time today.

Again, follow the story pretty closely. This guy, Keith Gilroy. And kitty, amazing story. Goofy, goofy, goofy guy. But he’s really smart. He just is. And I believe what he’s on to here with this short squeeze. And again, I know a lot of you listening to this, you’re gonna know more about it than I do.

I’m just getting down this rabbit hole with GameStop. But this company is transforming itself, fundamentally speaking to a degree, from being just a retail location. They’re doing other things now. And so a lot of this is being tested in various locations. I got to get up to speed on all of that. That’s not really the. I’m not buying GameStop because I like it fundamentally. Let me make that clear.

[00:33:15]:
I’m just saying the two companies, like, for example, AMC or GameStop, which one would I want to own? It’s Gamestop. Fundamentally, it’s in gaming. It’s an $8 billion valuation. They got at least 50% of the shares sold short right now. Probably much more than that with this latest activity. Okay, so a good potential for a short squeeze here. And it’s good versus evil, isn’t it? It’s retail. It’s goofballs like roaring Kitty.

Keith Gill, I don’t know. And maybe maybe I’m goofier than him. I probably am goofier than him. But again, that’s how he comes across, of course. And that’s kind of his brand. Good for him. It works. Obviously, the guy’s doing something right.

But I like it over AMC because I don’t. The movie theater business, I just don’t get. I mean, people are staying home. I just don’t see that as a. Compared to gaming? No, I don’t think so. And even compared to Trump media, just know, I mean, the truth. Social is just not making money. They’re barely making any income.

I don’t see the story. Matter of fact, the short interest is not even that big in the stock anymore. So you can’t even make the case for a short squeeze in this. Okay. So, yeah, if you’re going to play a meme stock, without question, in my opinion, is GameStop. And the financial engineering part of this is what’s really interesting, because this guy has built up such a big position in the options market and tagged along with him that I’ll make this as simple as I can. If they’re able, it’s called a gamma squeeze. If they’re able to continue with this option strategy.

[00:34:51]:
And if his strike price, I think his strike price is 25 or 27. Again, I don’t have all the specifics here, but I know I’m close. If the stock closes above this, when these options expire, which the next Friday is June 21, I believe I got the date right. Yeah, June 21. Then he has the option. He could do it now, by the way, he could go ahead and exercise, but it’d be very expensive to do it, to exercise the options into the common. But there’s a very sophisticated strategy whereby you continue to do this gamma squeeze, you continue to roll, you continue to exercise. In other words, you’re taking stock off the street.

And every time you buy a call, market makers have to go out there and buy the stock. That’s the simple relationship of how that works. And you got, look at the open interest in these calls. It’s just unbelievable. They’ll give you an example. I’m in the short term, I’m going to tell you about the GameStop. These are the GameStop. Gamestop stock.

GME is a symbol, of course. These are the options. Okay, let me go, let me go, let me go. Way out. Okay, listen to this. This is insane. These options I’m about to tell you about expire this Friday. Okay.

Three trading days from now. The stock is trading right now at $30 a share. Just over $30 a share. The furthest you can go out, strike price wise, is the $128 contract. Again, the stock is 30. People are betting it’s going to go to 128 by Friday. The open interest is 75,000 contracts. And right now the options are trading at 0.35.

[00:36:41]:
So, yeah, they’re not expensive, but they traded 30,000 volume today. Okay, now to give you an idea of something a little closer in the money, all right, let’s say the stock just goes to 60. Just to 60. The all time, the yearly high is 64. Let’s say it goes to 60 from here by Friday. Today, the open interest is 13,747 volume. Today, 8000 contracts. And they’re over a buck each.

They’re over a dollar each. That’s for options that expire in three days. You can’t believe some of these premiums. If you go out a little further, they’re just, they’re even more ridiculous. So this is the gamma squeeze strategy. It’s happening. Retail are piggybacking onto roaring kitty. It’s not just retail.

There’s a lot of Wall street firms that have said, you know what? I want to be on your side on this. So it is a very, it’s the battle within the battle that’s so compelling about this. And that’s why I bought it. For a combination of all these things. It’s speculative, pure speculation. Okay? I’ll grant you that. But look, we did good in AMC. We did good in Trump media.

Okay? And I got. We kind of have a feel for this. At least I hope I do. You can open it ten tomorrow. Having said this, knock on wood. Investing guys don’t like the bragging at all. But I like it on a chart basis, technically speaking. Tyler and I have been talking about this throughout the week.

GameStop pulled back to, like, the $23 range where there was support, and that was what, yesterday. Okay. And so now it’s based from there, it’s short term technical analysis, but it pulled back to a level of support. And now here comes the volume. Right? Big volume day again. They got a meeting coming up in a couple days. And so there’s also a possibility, and this is, I’ll close with this. The rumor is that GameStop, the company, and this guy, you know, the CEO of this company, is very tuned in.

[00:38:44]:
He’s not, he’s not just an innocent bystander. He’s locked into this. Right. If they decide to remove their shares from the DTC system, that theoretically could create a short squeeze of monster proportion. What are the odds of that? I don’t know. I’ve never heard of that happening. So, again, there’s a lot of these kind of rumors out there, but I’m on the side of, I’m on the side of Rory and Kitty and Keith kill and all the retail investors that are, that are in this. Let’s see what happens.

So that’s it. We’re not. I highly doubt we’ll recommend the VRA. We got some very serious and, you know, interesting, exciting things we’re doing there. I don’t want to confuse those stories with something that’s purely speculative, but I do want to spend a minute on it to let you know our thoughts. I do think, I think the stock looks good here. I would not be surprised to see the stock go back to dollar 100 a share. Not a prediction, but I wouldn’t be surprised to see it happen.

I think it’s going higher from here. I really do. Okay, last thing, and I’m going to just cover this quickly. Years ago, when Biden got elected, Wainrich told me, he said, people need to start thinking about this because communists don’t leave office once they’re in power. Study history, kept. Look at history. You have to take them out. They don’t leave.

[00:40:13]:
And that just stuck with me. I’m like, you know what? That is true, isn’t it? Wow. Like, you have to forcibly, like using the military, take them out. You have to have a coup. You have to, you have to, you have to beat them in the streets almost. So if you notice what’s happening, there are russian, possibly nuclear armed ships 60, 70 miles off the coast of Florida. There are threats of the same thing taking place in Venezuela. What kind of a stretch would it be? Because if, again, if the theory is they leaving office either way, even if, even if, even if Biden, say, if Trump, if Trump wins, they just aren’t going to leave.

After the pandemic, how much of a stretch is it to imagine what they might do to stay in power and to not even have an election? Or again, we’ve already been through this, haven’t we? Two weeks to slow the spread. Remember that? That was under Trump, by the way. Two weeks slow the spread. Some cases it was well over a year. In some states, two years before they start to get back to normal. There are still mandates for these university students. Unbelievable what’s taking place. Complete crimes against humanity.

[00:41:35]:
It’s just, you just can’t even fathom this happens country, but it happened. So look, I think the odds of something like that are really small. Okay, I think they’re really small. But again, our approach is here. We like to put an idea out there as a risk or an opportunity so we don’t have to just say we never talked about it. Oh, we meant to talk to you about it. You know what I mean? So we’re not that, we’re not those guys. And so what we’re going to do as we get closer to November, and again, I mean, they don’t have elections in Ukraine anymore.

Look who’s running that show. Same people. How big of a shock would it be to find out we’re not gonna have election November? Again, not a prediction. But isn’t all, aren’t all these pieces starting to come together? So look, with the planemic, we had initial signs, right? We knew that something was happening and we got a sense of it pretty quick. Was that that first big down day in the Dow Jones of 900 points and boom, that was it. That told you, okay, there’s something to this. So we know what to kind of look for. We’re going to put together a game plan so we have a document up that should something like this happen, this is what we think are the best moves to make.

[00:43:00]:
So, you know, again, everyone’s got a game plan. We can put a hedge on, we can put some stops in, we’ll put that together. But again, very small odds of this happening. But, you know, we want to be prepared, right? We want to be prepared. That’s the key here. And I hope Wayne’s wrong and I certainly hope nothing like this happens. So if you listen to Wayne, you know, he thinks it’s high percentage, something goofy like this happens. But again, after the pandemic, I just don’t want to discount anything.

That’s really how I’m viewing this. And so we like to make sure we’re on the same page and that will spring something on you. And I will. Tyler said earlier, hey, dad, everyone’s talking about this. I mean, the only people aren’t talking about is Wall street. Every else, everyone else is talking about nuclear armed weapons and 60 miles off coast of Florida and a lot of people out there saying we might not even have an election because they don’t leave. I mean, this is not all that new, but we’ve never had the conversation with you and no one on Wall street is talking you won’t find on CBC and Bloomberg, right? You’re not going to find it in the mainstream or fox not going to find this. But if we’re, we have the conversation.

We can prepare for it. At least put a hedge on, have that ready. Really can soften some pain. As if we had to go through something extraordinary like that. Okay. All right, let’s talk about. I’m going to skip right to the eternals. Weren’t great today.

Sector watch was not good. I don’t want to spend any more time on that. I think tomorrow we’ll get some resolution. And again, you know our view tomorrow. I think it’s going to be a pretty good day. I think it’s going to be a pretty good day. Let’s go back to commodities because, frankly, that’s where the damage has been done. Gold is 23 33 right now.

[00:44:40]:
Kind of a quiet day today, but again, they got smoked last week. Again, I think. I think that the primary, the primary trend, which is higher, will continue, will resume. Okay, that’s our strategy here. So we are buyers on this dip. The charts look good here. You really have pulled back just below the 50 day moving average. Now.

They’re getting oversold. I’ll include a couple of these in tomorrow morning’s letter so you know exactly what we’re looking at. Okay, so that’s the same for silver. Silver is 29.38 copper. Pullback now to 451. Got over $5, 451 a pound. Now, again, these are healthy pullbacks. This is what happens in a healthy bull market.

It’s the way it should happen. Crude oil today. Forty three cents a barrel, 7817. I saw that. Hedge funds are. Investment funds own the least amount of oil that they ever have. That’s a recipe for higher prices right there. And look at what’s happening in that gas.

Wow. What is smooth. We’ve been talking about it for a while. It’s been due. They call it the window maker. It’s a very, very tough group to invest in because there really is a lot of it. But of course, the electrification of the country and the world. Nat gas.

And hopefully one of these days. We’re talking about nuclear. Of course, we’re big believers in uranium. We invested there. It’s a great story. It makes perfect sense, probably why we haven’t done it. Natural gas today, up another 8.4% to 315 per mcf. That matters to a lot of us here because we’re also involved in the company called lost Soldier oil and gas, which has the largest discovery in at least four decades, not just in Wyoming, but in the region right in the central part of America, not Central America, but in the center, in the center of America, Wyoming region.

Which is Rocky Mountain basins. A lot of big gas here. Bruner found ultra petroleum there, which, of course, is, you know, one of. It’s one of the best investment stories you’ve ever heard. I was involved in is the best investment story of my career. Fifty cents a share to $200 a share in nine years. And this could be bigger if the way Bruner tells it, it’s going to, because there’s no uncertainty about this man, and I love that about him. But, you know, Steve Richards is saying it, too.

[00:46:54]:
Right? Steve Richards, 37 years Schlumberger. Steve’s the real deal, and he’s president. And the whole team they’ve got there go together. Great team. Of course, you know, we’ve all hung out a lot together, got to know each other. It’s a good people, and it’s fast. It’s an amazing story. It really is.

It’ll be a Netflix. It’ll be a Netflix series because they got everything on film, so we want to see gas prices get. It doesn’t really matter. They have, so they found, they believe so much natural gas, and this about 40,000 acre concession, federal leases, by the way, locked up for a long time. It just doesn’t matter almost what the price is because it’ll be so cheap, you know, getting into the pipe, which is very near to them. So it’s a great story. Of course, higher Nagas prices only makes the store better, of course. And right now they’re overseas.

We filled up the a, the founders round, now the a shares, and now we’re doing the b has opened up. They’ll be doing that primarily through Europe and Asia. They’re on a road trip there now. And we sent out the new lost soldier report this morning in the VRA letter. Anyway. Yeah, Nat gas. I see that. My mind always goes to one thing, and that is lost soldier oil and gas.

It’s been a lot of fun. I know a lot of you got involved here, and, boy, this is, again, we’re in the roaring 2020s. Let’s enjoy this. Great time to be an optimist. Great time to be an optimist. All right, folks, going wrap here for the day sector. Oh, bitcoin. Bitcoin today.

Got hit a little bit. It’s right now back over 67,000 last 7300. You know, it’s coiling. I think it really is coiling near all time highs. This would be healthy long term consolidation. So many people got so bullish. Probably a little much, including me, but I don’t think in the end of the day, it’s just not going to matter because it’s fundamentally incredible story. A lot of those out there right now, aren’t there? Let’s stay locked in, folks.

I always appreciate you listening. Hope you had a great day. Need a better night. We’ll see you back here again tomorrow after the close. Bye.

Podcast Newsletter

Listen On

Time Stamps

00:00 Jay Powell speaks, Gamestop and AMC discussed.
04:32 Excited about global innovation and technological revolution.
08:09 Historical hyperinflation, wealth creation, and preparation.
09:53 Concern over potential implications of Tesla decision.
14:41 Understanding hardship, empathy for struggling individuals.
19:19 10 years back to 4.4%, trending lower.
22:06 Complex financial discussion predicts dovish stance from Fed.
25:53 Kre down 11%, closely watched by Fed.
28:46 Root supports Gunter; disagrees with Trump's choice.
31:37 Lifelong independent, no loyalty to a single person.
34:51 Predicted strike price, options expiration, exercise.
38:07 GameStop pulled back, potential surge in volume.
42:12 Suspicion about election being canceled, prepping plan.
47:10 Natural gas boom story overseas.

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