In today's episode, Kip takes a deep dive into the innovation revolution that is reshaping our world and the deflationary power of disruptive technologies. Optimism abounds in this episode, as Kip continues to see this as a powerful bull market that is setting up, right now, for a fantastic chance to buy. Tune into today's episode to learn more!

Don’t look back because the market is closed. Good Monday afternoon everyone. Kip Herriage here with the Daily VRA investing podcast. Hope you had a great day today. Hope your weekend was even better.

Let’s get right to it today, because if you, if you’ve been joining us here, look, we’ve gone through a bit of a rocky period here. About a 5% pullback that’s taking place in the markets a little bit more, Nasdaq, a little bit less in some of the key blue chip stocks. Again, Techman hit a little bit more than that.

Semis down over 10%, for example. They lead in both directions and they’ve been leading lower. So we’ve been closely looking at the semis. We’re talking about that today. Some important relationships there that we think are telling us it’s the best buying opportunity we see in the semiconductors chip stocks in quite some time. All right, it’s not the same opportunities it was at the October 2022 lows, but this is the best opportunity we’ve had in a very long time in the semis. So we’ll get into that a little bit. Gonna spend a few minutes on bitcoin.

[00:01:08]:
Some really exciting things happening there. Look, the world is waking up to the potential and the excitement of bitcoin. Of course, now the fourth having has been completed, but the people we, I can just tell you from experience, so many people that we talked to have yet to buy bitcoin. I would say just of our folks, that’s probably 70%, I think. I’ve done a bunch of Twitter polls, I’ve seen a lot done where you see the same thing. It’s 60% to 70% of people have not yet purchased bitcoin or even one of these ETF’s. We spend a few minutes talking about the reasons that’s going to change and why we think this move, this coming in bitcoin is going to be so dramatic. And that’s to the upside, by the way, going to talk about our base case, because if you’ve got a strong macro case and it’s backed up not by emotion, not by hopes and dreams, but it’s backed up by reality and it’s backed up by what the market is paying attention to, then if you’re a trend follower, in addition to that, right, being a trend follower and then having a strong base case based again in macro and in the fundamentals, the fundamental side of the story, then you can make a whole lot of money because as long as you’re on the right side of the market, things get a lot easier.

[00:02:33]:
That’s why we don’t short stocks here in a bull market, in a bear market, we don’t like to go long stocks. But again, this is a strong bull market. So of course we’re long and strong here. Can talk about tokenization as well. That’s part of the bitcoin story. I got my notes all over my page here. Let’s just get to the markets first and we’ll go from there. How about that? Dow Jones today finished up at 253 points, is up 710% to 1%, about 180 points off the highs.

Just FYI, market was up over 400 points. Again, finished up 253. So not a great smart money hour. It’s one of the things we’ve been looking at. But again, it was a good day today. We’ve had until today. This actually might make five days. Frankly, we’ve had four bad smart money hours in a row.

[00:03:24]:
And again, this is something we pay close attention to. It’s been said, and I think it’s true, that the open is for amateurs, the close is for professionals. So that means the direction of the market really is dictated in many cases by what happens in the close. And again, we have not had good closes. That’s one of the things that’s worried us. I’m not that concerned about today. Again, we had a very good day today. We’ve got other things to report as well that back that up.

Also, seasonality has been a little spotty bit. You know, it’s, right now we had to get, we’ve had such an amazing run. This is, in presidential election year, this is kind of that period like mid to late April to mid May is a little spotty. That doesn’t mean downside action necessarily. It means it’s, it’s kind of been all over the place. And so I think that, again, the macro side of this and the base case we have is so incredibly strong, being this early in the innovation revolution, that, again, I’m just telling you, we are looking at this as a gift. These pullbacks of 5%, most full markets, you know, you, every year you’re going to get 110 percent. You know, you’re going to get a little correction.

[00:04:40]:
Okay, in pretty much every bull market just about every year. And that’s good. It’s healthy, it shakes out the excess. I don’t think we’re going to get that in this case. But again, we’ll keep paying attention to what, to what matters. And semis, mart money hour, the fundamentals, the internals, etcetera. We’ll cover today. Our leader today.

And again, this is where you get back to kind of a textbook bull market. Look, semis today, smh, up 1.4%. It had been up as much as 2.4% again. Lost some of that in the last hour trading. But second right behind that was Nasdaq. Nasdaq up 1.1%. So that’s textbook, right? Semi sleep. Nasdaq.

Nasdaq leads the broad market. That’s what we saw today. That’s what we have been seeing, really, from the birth of this bull market. Of course, the semis have been a house on fire. But again, now corrected, just over 10% leading the way lower rust 2000, also a good day. Small caps up 1% of the day. And finally, SPF, 109 tenths of 1%. So let’s start with what we wrote this morning to our subscribers, our clients, and our members, and that is that we are very close here to going aggressively along the semiconductor stocks again.

[00:05:54]:
Now, we’ve been long this group. We did take some profits along the way, but we’re still very long, this group. But we’ve been waiting for an opportunity to get aggressively long again. And so this is where we are. That’s what we think we have now. And the charts, we shared two charts this morning. I’ll do my best to explain these charts on this podcast. I’ll make it simple.

First, reverse chart the semiconductors on the VR investing system. Again, 30 years plus in use, in development, by me, based on the work and things I learned from my mentors, and of course, Tyler. And I learn a great deal. I learn more from Tyler every day. I’m sure that he does from me. But we review this every day in detail. And what we’ve noticed here is that the semiconductors, again, SMH, the semi ETF, has now hit what we call extreme oversold on steroids. This is the most oversold this group has been since the October 2022 market lows, bear market lows.

[00:06:53]:
Right now, where we are right now, it’s the most oversold and. But we’re still well above the 200. A matter of fact, we’re still above the 100 day moving average. So it’s not like, it’s not like there’s been a great deal of technical damage done to the semis, because there has not. Friday was just kind of a weird day. Nvidia was down 10% on Friday. Weird things happen on Friday afternoons because so many people aren’t around to see it. So liquidity tends to dry up and that’s kind of what we saw on Friday.

My educated guess is that Nvidia caught up and the semis to a lesser degree. Nvidia really was where the damage was done. Nvidia got caught up probably in a combination of three things. Margin calls, a stop hunt, you know, a stop, people taking out the traders taking out stop losses, which of course is a common daily occurrence. Stop stops are great to use, but you have to use them in smart way because otherwise you’ll get burned. These guys, these, these, I’m not going to call them the name that I want to, but that’s their job, you know, is to, to make money. And unfortunately they do it taking out stops. And a lot of very good people, they just don’t know better.

[00:08:06]:
You’ll find this out the hard way. So stop or stop, stop hunting what’s going on. You had a kind of a decline this feed themselves. It was a Friday afternoon, not a lot of people around. And finally there probably was a fund, maybe two funds that were selling, taking profits, just wanted to get because they saw weakness in the group. Maybe they got some concerns about q one, earnings, which of course start this week in earnest for tech stocks. But anyway, that’s what would happen. But it’s taken this whole group, the semiconductors, to extreme oversold and steroids.

And what confirms that, that what we think is an amazing buying opportunity for this group. And remember, the semis lead, they lead everything on the upside and downside. That’s why we pay someone’s close attention to this group. The other thing we share, we talked about here with you a little bit is a chart of the relative strength chart. We love relative strength charts. This chart compares the semis SMH to the s and P 500. And using this, because the S 500 is the largest, most liquid index on the planet. So it’s really, I think it’s the index to compare SMH to or pretty much any investment to.

[00:09:25]:
And what it shows us is of the last year, this is the fifth time this has happened. We had four previous instances where this relative strength ratio got to extreme oversold levels. And we just, again just had. The fifth just took place Friday at the close, we’re there right now. And every single time that’s happened we also had a very big move higher and that actually served as the bottom for that particular cycle. So we’ve got all of these indicators we look at that tell us that semiconductors are buy, which means the markets are buy. And again we’ve got the broad market indexes also hitting extreme oversold levels. Dow Jones is extreme oversold on steroids.

At least it was last Thursday. Now it’s really kind of led the way higher out of that little, little pause we have. So I kind of sell that to get to this point. Our base case is so much better than the bears based case. And Tyler and I just had the conversation. You know, it’s so easy to be bearish and to be negative. You’re surrounded by it. That’s all that, that’s all you’re going to see on, on a 24/7 mainstream media, financial as well, because negative sales, pure sales, they know this.

[00:10:44]:
That’s how they get people to watch it. It was all, you know, good news and puppy dogs and lollipops and rainbows. Uh, you get a little nauseated. Watch that. But if you can scare somebody, well, that’s worth tuning into. And so that is what happens. That’s just old school marketing, folks. There’s nothing fancy about that.

So, number one, we’re surrounded by it. So, you know, if I wanted to, I could come up with right now on the spot, I could come up with five reasons that we should, that I am super bearish. That would scare the hell out of you, and I can do it right now. They’re not hard to find. They’re not hard to get. Look, as president, look what’s happening with Russia, Ukraine, now. Look what’s happening in the Middle east, right? It’s not hard. Look at our debt levels.

So I just give you the reasons right there. And so that’s what people hear all day long. So your, your instinct is to be negative because we’re surrounded by negativity, but that’s not how the markets work. Just to be clear, I think we all know this, but these bears that are on various, they’re all over the place, social media, of course, on the Internet, and they’re the ones you see on tv as well. They sound so smart, don’t they? They make such a compelling case for why the market should collapse. Why? Another bear I saw over the weekend, another guy saying, here we go, this is 2008 all over again. And he just could not be more wrong because the facts do not support that. And that’s just that, frankly, it’s malpractice to be if you’re in the financial advisor and if you’re on television or any, any medium and you’re telling people that this setup reminds you of 2000, similar setup to the financial crisis, 2008, that’s financial malpractice because the data does not tell you that it is simply nowhere near that.

[00:12:37]:
Again, for our new folks here, I’m going to cover it very quickly because this is our base case. This is a macro case. Consumers and american companies are in their strongest financial condition in decades, at least two decades, I think, longer. But certainly we’ve learned from the financial crisis quickly. Home prices, all time high. Net equity in homes. Kind of a big deal, right? All time high. Consumer net worth.

That’s the biggest deal. Consumer net worth. Other call it consumer net wealth, same thing. All time high. This is the big east. Well, one third of Americans own their home without a mortgage. They have, their home is paid off. That’s, again, these are all, all time highs.

[00:13:22]:
Never happened before. And so, you know, when you and I can keep going, but, you know, there’s like, credit scores. All time high. Consumers have cut debt by 25% to a disposable income in the last 15 years. American companies are trading. This is crazy. This is, this one. This one’s really crazy.

When you think about this, corporate debt to market cap is at a 50 year low. So you’re not hearing this on tv. You know, we’ve been reporting this now for over a year. We found much of this when we were doing our research for our book, the Big Bribe. And so Tyler and I just kept digging. It’s like, wait, what is. Why is no one talking about this? And it’s not that, you know, there are some others, but just very, very few people, maybe a handful of people I could tell you that are talking about this actively as we are. You know, when I, when I go on tv and I’m going to be on with real America’s voice tomorrow night, I’ll be talking about it.

[00:14:24]:
Then again, and of course, when, when I’m on with Charles Payne, Tyler covered the same thing when he did his real America’s voice interview about a month ago. You know, when we talk about these things, you get kind of a glazed look in their eyes. You know, people are like, what do you say? What do you mean? Consumers in the best shape. We just saw the credit card debt just reached a trillion dollars. And we’re like, yep, that’s right. But that’s a number. That’s not a, that you got to now you’ve got to compare it to something, right? You got to compare it to disposable income. Let’s get a ratio here and a formula that actually makes sense, because, again, the bears only tell their side of the story, so.

But they make such a compelling case. These bears, because again, it’s not hard to do that. And so that does impact people. And it’s one of the reasons right now we have more than $6 trillion studying in money market accounts. Again, that’s just off an all time record. That’s fuel for the fire. These are people that I’m sure a lot of them just maybe they’re not, maybe they’re not afraid of stocks. Maybe they just like getting 5% in the money market account.

[00:15:31]:
Who could fault them? Right? But a lot of these folks are in money market accounts because they’re scared to death of the markets. Again, look at the president. Is all the things talked about earlier. Of course, it’s not that we don’t understand it. We understand it. We’re just pointing out that the supporting data, again, our macro case, our base case, is stronger than the Bears base case because this is a fundamental, a structurally strong fundamental bull market in structural bull markets, the most powerful kind, because they’re based in excellent fundamentals, which we have, again, for consumers and for american companies. So that’s our base case. That’s why this market is going to continue going higher.

We are in the roaring two thousand twenty s. The data bears that out. And again, then we get to the really fun stuff. Okay? This is the stuff I love talking about as much as anything else. Pretty much every conversation I have with people, friends at parties, at events or whatever, this is where I always want to take a conversation. Like, you hear what’s happening in the future, about what the future looks like. And so many people look at you like, what do you mean? Like, well, you’ve probably heard some of the obvious things, like flying cars are coming, the jetsons are coming. It’s going to be real.

[00:16:48]:
And that’s going to be next year, actually later this year in many parts of the country. And you know about Elon Musk and autonomous driving. Frankly, a lot of people don’t know about that. And so I kind of explain that and then I’ll go into not just FSD full self driving, but then you start talking about robo taxis. And really very few people are even aware of this. And again, we might be another year or two away from that being widespread, but it’s already happening in parts of the country now. We just haven’t had fleets of these robotaxis out, for example, in your neighborhood. If you live in a suburban neighborhood, for example, within a couple, three years, you’re going to have 20 or 30 robotaxis sitting in your neighborhood waiting for you to hit the app to pick you up.

[00:17:37]:
And it’s going to be dirt cheap. There won’t be a driver, you won’t have any of those expenses, right? You won’t have to tip anybody. It’s going to be a driverless car without a steering wheel, and it’s going to take you where you need to go. Again, it’s going to be dirt cheap again. And that’s the key, really, to what we call the innovation revolution, is that all of this, all of this innovation, this disruption, besides being pretty cool, it also has another major role. It brings down prices, it’s disinflationary, it’s even deflationary. And again, the markets know this is coming. The markets, of course, are discounting mechanism.

So again, having this conversation with folks about the innovation that’s coming, and again, what I’m excited about, of course, I’m excited about what Musk is doing. It’s not just the vehicle, because, again, it’s really a tech company and a car company. But of course, they’re doing with AI, robotics and Optimus, in a few years, a lot of homes are going to have robots in their home doing all the stuff that we don’t want to do. You know, the cleaning, the dishes. I assume they’ll be able to mow lawn, too. And, you know, we can. We can use our time to maybe do some good things to help out our community, help our family, maybe help, help you serve your church, you know, the things that all the time you have in your hand. So, again, all of this is very disinflationary, if not deflationary.

[00:19:03]:
Prices down, makes your life easier. This is the power of innovation and disruption, and that’s the cycle that we’re in now, this massive disruption cycle, and, of course, space exploration. I mean, what’s happening there is unbelievable. Of course, AI or artificial intelligence, that’s really been kind of the buzzwords of a lot of this. Of course, Nvidia kind of kicked that off last May with their first earnings report, where they shocked the world. Well, again, we’re just in the early innings, all of this. And again, I can keep going. Genetics.

I mean, if what I’m reading, we put this in the book, the big bribe. If what I’m reading and hearing from so many people that I trust and respect, we may not have disease in 20 years. Now, the power of big pharma makes me question that a little bit, if you know what I’m saying. Are they going to allow this to happen? But even if we could, you know, do away with half of disease and illness that we many suffer from today. I mean, because genetic research being done, I mean, how amazing would that be? Of course that creates other problems, doesn’t it? Because now we’re all going to live longer and outliving your money will become a very real thing. But at the root of all of this, again, our base case roaring 20 twenty’s innovation revolution at the root of all of this from the market’s point of view is here’s why this is so fundamentally bullish. Corporate earnings are going to soar. GDP is going to soar.

[00:20:33]:
Kathy Wood’s team again, they put out great work on this. We featured them last week when they’re, what’s his name, chief futurist Brett Winton. Great follow by the way, did a space on Twitter x now and just went through each of these and again he reiterated what Kathy Wood’s been talking about her team for some time and so many others are now talking about is that GDP growth is going too sore. They’re talking about GDP growth being six to 8% now. Right now we’re what, 2.5%? I think Atlanta fed is 2.8%. It’s not bad, right? Better than a lot of people thought it would be at this point by the presidency, but it is. And so the GDP is going to grow by six to 8% for 20 to 30 years. We’re talking about adding $100 trillion to global GDP.

[00:21:24]:
I mean, it’s just, these are insane possibilities. And again, it’s all based in disruption and innovation. And again, that’s what the markets are seeing here. And that’s, I say all that to make this, this broader point. Pullbacks are a gift. If this is the next 1995 to 2000, if we’ve said for a very long time, then certainly pullbacks in this bull market are a gift. That’s how we’re treating it. That’s why this work we’re doing in the semiconductors.

What we just covered a minute ago is so very important. Again, the semi was going to leave. They’ve been leading lower. If they continue to lead lower, we have something else going on. We need to find out is it going to be a 10% drawdown? Right? Is this going to really suck the year out of the room? Is it does are healthy long term, but no one likes going through them. So we think that this is a great buying opportunity. We want to see semis continue to lead higher as they did today and then we’re back off to the races. But again, it’s a big week, Tesla reports tomorrow at the close.

[00:22:20]:
Then all this week, you’ve got meta, you got Google, you got Amazon, you got Apple. The biggest. All announcing earnings. Q one earnings this week, the markets have already sold off. You know, it really is a perfect setup for a market bottom here. Unless we get some negative surprises. I really don’t see that happening. We’re too early in this innovation disruption cycle.

I don’t think that’s going to happen. I think these numbers are going to be good. As far as Tesla goes, I can just tell you, look, we’ve been on the wrong side of this. We recommended at 170. I’ve owned it since 18, recommended it finally, at 174, it went to 300, and now it’s back to 141. So we’re sitting on losses about 15% right now. And look, no one likes losses, but I’ll repeat what I said for a long time, because the same thing about bitcoin. I only feel this way about a few investments that I hope they go lower.

I hope they go lower. I want to buy Tesla cheaper. I hope, because I have a pretty good idea that it’s going to be a ten bagger from here, and I want to buy as much cheap stock as I can. I felt the same way about bitcoin, and I have for a long time. The cheaper it is, the more I can buy. But again, you got to have a strong base case. A real belief system based in reality, not fluff, and not the hopes and dreams based in reality. The reality I just laid out for you here.

[00:23:42]:
And that’s why we had this confidence in bitcoin and Tesla, because their macro story is so incredibly bullish. Tesla’s going to own the EV space. Bringing prices down is a very good thing. And Musk has been committed that for a long time. Getting vehicles down to $25,000, obviously, robo taxis, full self driving vehicles, AI Optimus the robot, getting them out there, again, this all takes time, but it’s all happening. And so I think Tesla won’t stay cheap for long. That’s really my opinion there, and that’s why we’re still aggressively recommending it here. And so, again, all combined again, one of the keys there.

And Tyler just shared this with me. Ken Fisher, I’m sure you know the name, the annuity guy, right? Or the guy that hates the annuities. Ken Fisher is, was on Fox Business Day with Charles Payne, and Tyler told me he was talking about, he’s incredibly bullish, right on equities, and he also agrees with that. I really, I did not know this, but he also believes that we have disinflation that will continue to build. And he’s talking about some of the same basics we’re talking about here. But really it’s more fundamentally, it’s just the economy is so fundamentally sound and this is a noble market. It’s only the second year of a new bull market that’s never been lower since 1952. And it dips for gift.

[00:25:09]:
You know, pullbacks are a gift, but as to disinflation, again, the innovation revolution is going to take care of much of that. But remember, this is a point that Ken Fisher made as well. China is clearly exporting deflation because they have it in their country. Of course, their exports are fairly renowned. And the other thing is that it’s also happening in Europe. And remember, when it comes to inflation and rates, just look at the parallels between Europe and the US. Europe has been leading and we have been following. Well, right now in Europe, they’re getting you ready for some pretty dramatic rate cuts.

That’s because prices are falling. That’s going to happen here. I’m sorry to tell the perma bears and those that love to fear monger about inflation that you’re just wrong and you’re going to be really proven wrong in the months and in years to come because it’s only going to continue to fall again. That makes a very strong base case for the markets, does it not? Canvas believe so as well. By the way, international markets have been doing really well. China was up over 4% overnight. We’re in a chinese tech investment, an ETF, and I still think that’s a very good play. But the war risk is gone.

[00:26:29]:
That’s another key point. That’s what we saw, really are seeing. Now, gold today was off big. I’ll touch on that in the commodity section here in just a moment. And that’s it. That’s good news, right? We don’t want to have war. We don’t want things to blow up in the Middle east or anywhere else. So hopefully that craziness, insanity is behind us.

And that means in the short term, yeah, gold may be weak. That’s only short term. Gold is not going up because of a global war. Might break out. Maybe that’s played a small part of it. Gold is going up for its own reasons altogether. Namely, it’s been way too cheap for way too long. And it’s gold’s time to make it very simple.

It’s goals time. I can give you all the reasons if you want them. It’s gold’s time. For years it’s underperformed bitcoin. And now I still think it will continue to, frankly. But again, they’re completely different assets. Anyone that compares gold and bitcoin, even called bitcoin digital gold. I mean, I understand the point, but it’s just not a good comparison.

[00:27:29]:
These are completely different assets that should be owned for completely separate reasons. At least that’s how we do it here. We use gold and silver as saving vehicles instead of saving in a fiat currency. It’s only going to lose value. It’s all that’s done for. 70% loss of value us dollar since the dollar was taken off the gold dollar, stay off the gold standard in 71 by Nixon, and a 98% loss in value since the creation of the Fed in 1913. So I was talking about insane levels of destruction in the value of our currency. Yeah, but that’s what the Fed’s supposed to guard against.

Right. But again, so we use gold and silver as saving vehicles. Don’t really use bitcoin as a saving vehicle. I guess, you know, it’s fairly, fairly volatile. It’s an aggressive saving vehicle. I really use bitcoin as an investment vehicle purely as an investment vehicle because supply, demand, story, the scarcity value and what’s happening. I’ll talk touch on that in just a moment. Is so incredible.

[00:28:33]:
Let’s cover that now. Okay. RFK junior had a, had a great. I think it was, I think it was a tweet because he’s a big bitcoin blockchain guy, right? Big crypto blockchain guy. Another reason that he’s a very interesting candidate. And he’s like, we’re gonna put. When I’m president, we’re gonna put the US budget, all the things we spent is gonna, we’re gonna put it in the blockchain. So everybody can, at any moment that wants to view it, can line atom out expenses and assets and can look at them at what we’re spending all this insane level of money on.

And when it’s on the blockchain, we have complete transparency. It’s a great idea. First of all, I hope that. I hope that initially does happen. Consider me a little skeptical, but it raises the larger point when it comes to bitcoin. It’s not just understanding cryptocurrencies in bitcoin. It’s not just about understanding how to make money from cryptocurrencies. It’s what’s happening in this space.

[00:29:36]:
And tokenization is a big part of the blockchain. And tokenization is a huge part of it. We’re having active conversations with people. Matter of fact, we’ve got a zoom on Wednesday that I’m looking very forward to with the major real estate developer out of the midwest. So I’ll say who wants to take all of his real estate, commercial real estate assets and put them on the blockchain? He wants to tokenize all of his real estate assets. And these conversations and these events are happening. You can do this Google search, you’ll find ten different companies that are already doing this. It’s happening.

It’s not widespread yet, but the structure, the framework is being built now again on the blockchain. And that’s the power of the blockchain, because eventually, folks, for example, NYSE today, the head of the NYSE said today, stock exchange said today that they’re now looking into making trading of all New York listed stocks 24/7 you probably saw this, right? Well, that may not sound like a great idea. I don’t know that I feel we already have after hours trading. I don’t really use it. I think it’s dangerous to trade that way. But we’re headed that way because everything, eventually, all financial assets, I say all. I mean, most all are going to be on the blockchain. They’re going to be tokenized.

[00:30:51]:
And that allows for so many interesting things like fractional ownership, complete transparency and liquidity, putting things in the blockchain, whether it’s commercial real estate, your home. Tyler made the point. Classic cars, whatever it puts on the blockchain, number one, gives you exposure. Now, anybody and everybody can see that asset, participate in it. They can own a piece of it if they want, if that’s how you want to set it up for fractional ownership may not mean they get to drive the car or live in the home, but just have an ownership angle, maybe you do want them to be able to drive again, the options here are going to be very fun and very valuable. And so what all this does is it increases maximum transparency. And when you have real transparency, then you’re cooking with gas, right? This is why the US markets are the best in the world, because we have full trend. We have as much transparency as any market on the planet.

And we’re not a socialist country, right, like so many in Europe and elsewhere. And so we’re still based in, primarily based in capitalism. It’s being chipped away at, of course, but right now, we are the best on the planet. This is why this is still the best country to live in. I don’t believe that point is even arguable for everything we could do here and all the advantages that it offers. But again, the tokenization of all financial assets is going to create great transparency, which is going to bring added liquidity, going to add breadth to the market, depth to the market. And guess what? The biggie, it’s going to increase asset values. There are so many reasons to be excited about where we are headed in our future.

[00:32:44]:
And again, cryptocurrencies, bitcoin, the blockchain, just a part of it. All that’s combined, though, again, is the innovation revolution. That’s our base case. I started this podcast with that. That’s our base case. I can promise you that’s a more accurate base case that any bear out there can make their base case, because again, it’s not that their points aren’t valid, but this is a special time to be an investor. This is 1995 to 2000, part two. That’s how we see it.

It’s how we’ve seen it for some time. And I think that the bull market, Ren, is evidence that that is the case. So many other things about cryptocurrency we’re excited about, too, but then we’ll leave it there for now. Let’s take a look under the hood today and the eternals. Pretty good internals today. 1 second. Let me do a quick refresh. All right, here we go.

[00:33:40]:
Advanced decline again. I’m going to round up better than almost three to one. NYSe Nasdaq just under two to one positive. These very good readings here. Volume today, 71% up volume day for NYSE Nasdaq, 68% up. Volume day. We did have more decliners in advance, 15 close. And highs came in at 67 new highs to 229 new lows.

That’s not a big deal, not something we concerned about. Those numbers have been much better tracking over a weekly and a monthly and quarterly period, of course, of late than they were last year, year before. Sector watch. This is very good news here. All eleven sectors finished higher in the day, led by, of course, technology, up 1.3%. Financials up 1.2. Downside, none. Every, every sector was higher.

Kip Herriage [00:34:33]:
It was a good day today. Again, Tesla kickoff’s earnings tomorrow. The war risk is gone, and we’ll transition to that now because, yeah, gold has gotten hit today. Let’s trade in. Gold is 23 41. When you say gold at $2,341, it sounds pretty good, right? Well, it was down $72 an ounce today. That’s $3 announced today. So that’s pretty painful.

[00:34:59]:
But again, the oil risk is being removed from the market. That’s a good thing. We are using gold, as we’ve been telling you, has hit extreme overbought levels. So had the miners. So we have, we’ve been holding off on buying more. Guess what? That’s now quickly evaporating. That negative overbought level quickly evaporating. We’ll update in tomorrow’s very letter.

So we’ll be adding, very soon adding to our positions in the miners and to gold. Silver right now. Gold again. $2,341 in a bull market of bull markets is underway here, folks. Silver today down a big 5.6%. Of course, it had been outperforming gold to the upside. Now it’s outperforming to the downside. Kind of a pretty, fairly common relationship between these two.

Last trade, 27 23 in silver again down $1.61 an ounce today. Copper today barely unchanged. It was down three tenths of 1%, down one and a half pennies a pound at 448 a pound. Copper’s been, of course, a complete tear style reminded me. Copper at a two year high. Doctor. Copper is telling us what’s happening in the global economy. Growth, growth and growth, all based in the roaring two thousand twenty s and the innovation revolution.

[00:36:11]:
You need a lot of copper for all these EV’s. And EV’s are going to dominate the auto industry inside of five, seven years. 60, 70, 80% of all cars in the road will be EV in the next five, six, seven years because battery storage is about to get insanely good. Right? And once that happens, it just won’t be. It won’t be a conversation. And of course, the robotaxis also removed the need to have a car. They’ll be everywhere. So most fans will keep one car.

We’re certainly going to keep. I’ll keep my gas guzzlers for forever. My 66 mustang by 2005 Hummer aren’t going nowhere. Matter of fact, I just had my Hummer kind of souped up and fixed. It looks brand new, frankly, and no way I’m ever getting rid of those. They’re classics. Now, why would I, right? But I’m gonna keep my gas guzzlers. But a lot of people won’t do that.

[00:37:01]:
You know, if you can save five, six, $7,000 a year by not owning a car, not having insurance payments, not having the upkeep, that’s a game changer for a lot of families. This is, these are the conversations that are going to take place again. That’s why Tesla is another reason is a great buy here. They’re figuring all these problems out. Tip the spear. Tip of the spear. Crude oil today down eight cents a barrel. Just barely down at all.

At 82.14. Again, the war risk had been removed from the market. When the bullets fly, stocks are a buy. And that’s kind of where we are now. Let’s hope it stays that way. If I’m in the day, bitcoin, last trade, 66,500. And I just have to just mention this. Okay, bitcoins up what? Right at $1,900 a bitcoin or 2.8% in the last 24 hours.

What’s happening here? We already know the having just got completed. I think a lot of people don’t know what’s really happening here. Hong Kong. This is probably the next big news story. A couple weeks ago, Hong Kong approved the purchase of bitcoin ETF’s in Hong Kong. Why does that matter? 10% of all global wealth is domiciled in Hong Kong. Alright, so it’s kind of a big deal now. They approved it.

But the actual trading of these bitcoins will not begin to take place until the end of this month. Look at seven, eight days away. Okay, call it a week away. That’s a big deal. A lot of demand is going to come in from Hong Kong and Asia routed through Hong Kong. When that’s approved. But you remember it’s not just that. How many countries don’t allow it? Still haven’t allowed it.

I mean, throughout Europe, you can’t buy these bitcoin ETF’s, you can’t. South Korea, that’s the next market going to prove it again. Countries in Europe are going through the process like 80 and also 80% of all us financial investment firms, broker dealers, means the financial advisors can’t do it, family offices can’t do it. Again, 80% of investment firms in the US have not yet approved the purchase of bitcoin ETF. So that’s coming. You know, various, all firms are going through various compliance approvals, the legal framework for their firm, how to handle disputes, who’s it meant for, what clients here should be allowed to buy all those kind of things because they open up, you know, liquidity, they open up risk. Right. And potential lawsuits to the firm.

[00:39:28]:
So that’s got, they got to go through that process and make sure they’ve got that to clarify all the risk and reward payouts as clarified. But it’s happening. That’s the key point. It is happening. And even big firms like Vanguard, eventually they’re going to allow the purchase of bitcoin. ETF’s okay, that’s coming just like Brett Blackrock’s already done. JP Morgan will do it. Dell swab, they’re all going to approve it, but it all takes time.

So again, the base case for our purchase of bitcoin is. That’s it. It’s scarcity value, the supply demand. There is no better supply demand story on the planet than bitcoin. And now the SEC has approved it. And all these, of course now everything I just shared with you about who’s gonna be allowed to buy it again, the demand is only gonna soar while the supply continues to evaporate. And remember this, approximately 80% of people that own bitcoin aren’t sellers or hodlers. They’re not going to sell again.

The scarcity value makes this a really compelling buy here, and it’s why I do not care what it does day to day. I hope it goes lower so I can buy more again. That is how I feel about bitcoin. And I think that’s the smart money play, if I’m being honest. All right folks, that’s it for today. I always appreciate you listening. I hope you had a great day, an even better night. We’ll see you back here again tomorrow after the close.