In today's episode, Kip takes a deep dive into what he calls “textbook bull market action.” With institutional money still waiting on the sidelines, Kip breaks down why every market dip is being bought up and why he believes we’re set up for a continued melt-up rally. He also discusses the global economic outlook with Trump's growth-oriented strategy. Tune into today's podcast to learn more.

Don’t look back because the market is closed. Good Tuesday afternoon, everyone. Kip Herriage here with the daily VRA investing podcast. Hope you had a good day today. It does feel like a Monday, does it not? However, we had the long Memorial Day weekend and again, our heartfelt sympathies and. And much more to everyone that has someone in the military in your life. I know we have a lot of VRA members here. That that applies to Memorial Day is about remembering the fact that so many made the ultimate sacrifice.

I saw a number of million people, and I don’t think I’d seen that before, but just sobering to know how easy my life has been versus what so many others had to go through. It’s almost incomprehensible, you know? But anyway, thank you to everyone that served. Again, thank you for your service and all those lost. A family member. Hearts and prayers are with you today. What a day. Come back. You know, again, you know, last week, I would say this is just perfect setup.

[00:00:58]:
It really is perfect setup. We’ve been telling you this is a. This is a textbook bull market. We’ve been getting textbook bull market action because that’s what we’ve been getting. And then last week, we have it three or four days for the market was down in a row. We ended up kind of on a sour note on Friday because Trump said something tariff related. And then again, that’s. That.

That sucked the air out of the markets. And then he comes back today over the weekend, he came back with, oh, you know what? We’re going to extend the EU terrorist deadline to July 9th. And because we’ve had good conversations, you know, behind the scenes, blah, blah, blah. And so, you know, then it was off to the races in the futures markets starting Sunday night. And then, of course, all day yesterday, you know, European markets were up solidly, as were Asian markets. So you knew it was going to have a good start to the day. But this is the kind of day that’s a real tell. I think Todd and I just had this conversation.

We’ve seen this happen a lot where you get days like this where, where the market barely goes down. Like, we don’t. We. We. We didn’t have any wave moves. You know, we didn’t have any, oh, look, they just sucked 100 points out of the Dow Jones. Took them five minutes. We.

[00:02:00]:
Any of that. Every dip we had was minor, and it was bought immediately. The money was just sitting there, buying. That’s, folks, that’s institutional money. That is left by the wayside here. That is on the wrong side of the market. We got some reports today from both J.P. morgan and Goldman Sachs that this institutional money, fund managers, et cetera, they still are refusing to come in.

They still are. They’re still short. And so they don’t believe this rally. And you know, that’s the thing, you know, there’s no reason to try to tell the markets what to do. I see somebody after doing this as long as I have, I think so many people, if I could just give them one piece of advice, it’d be stop trying to tell the market what to do. The market’s telling you what it wants to do, just pay attention to that. But instead I think it’s, maybe it’s a lesson you have to learn the hard way. I’ve never been a perma boar or a perma bear perma.

Any anything get you in trouble? I’ve always been a trend follower. That’s what I was taught by my mentor Ted Parsons and Michael Metz at Oppenheimer. We’re both trend followers, didn’t know each other, never, never in the same room together as far as I know. But both had the same methodology when it came to investing and it just made sense to me like okay, watch the internals, watch the leadership, watch all the, you know, the indicators that we talk about here. Everything by the way went into building the VR investing system. And just like that, that gives you a high probability move out of that. And so that takes away so much of the risk and so much of the downside. We don’t catch every move, obviously we don’t catch every move.

[00:03:34]:
We got buried during the Trump, during the tariff trauma that we went through. But look again that happens. That’s just called life, right? And especially we got Trump as president, you know, be ready for anything to happen. But again we, we relied on our medium to long term indicators that said you got to stay long this market, right? Everything that we had been talking about for years now and that we came up and wrote the big bribe innovation revolution, the roaring 2020s just the growth is taking place technology wise and new industries again. We’ve got a launch coming out I think today of Starship today this thing is a football in the third long. Look how big this thing is. And you know, this is what’s going to carry astronauts of course to Mars and probably beyond that at some point. It’s just unbelievable.

But the growth that’s going to come from space, you know, both exploration and tourism, I think that, you know, those that everyone’s worried about AI and how could you not be worried a little bit? Right? Because it is going to replace so many jobs. No doubt about it. It’s already started. But somehow, somehow, technological advance always brings more jobs with it. I don’t understand. That’s because we can’t see the future, because we can’t see what’s about to happen. There’s going to be new industry, there’s going to be new growth. There’ll be a billion new jobs created out of all this.

[00:05:04]:
Watch, Right? And it’ll be the people that are taught to or can learn from the changes happening because of AI and the growth of these new industries. And the fact that, guess what, this is coming, folks. We put this in the big bribe, too. We got. People actually laughed at us about this. Within 20 years and maybe less now, there’ll be no disease. No one will die of a disease. We’re all going to live longer.

Death will still happen, of course. Very unfortunately. That’s just a fact of life. But we’re all going to live longer. And we’re going to have to find a way to make that work. And the government’s going to have to get involved. There is going to have to be. Hate it if you want to.

There’s going to be some. There’s going to have to be some kind of modern. What is mmt, right? There’s got to be some form of government payments to people that have just been replaced. And there’s, you know, it’s in addition to Social Security that’s coming. But, you know, Trump’s strategy. I’m getting off topic a little bit, but Trump’s strategy here, that we are fully behind. And this is kind of a. He always knew that he wanted to have the Reagan model of grow, trying to grow our way out of our problems.

[00:06:13]:
And so again, if you’ve listened to us, you already know we’re not concerned about our debt problems. Okay? We’re just not. My Entire career, I’ve been. I’ve been told by people smarter than me, right? Older than me, wiser than me, from the time I was a Rookie Stockbroker in 1985, my entire career, I’ve been told that our debt problems are going to crash, crush us. Well, they told me that 1985, it hasn’t happened. What’s going on here? When is it going to happen? Because it’s a market timing model. It sucks because it just hasn’t really. It hasn’t resulted in any real change.

All we do is keep adding to our debt. Well, there’s A lesson in there. I think maybe it’s not that big a deal, especially when you got Japan. I know that sounds like, you know, blasphemy. I get that. Okay, before you hang up on me, just remember, and I always put this into the conversation because nobody else says. Nobody else says this. Our debt to GDP is tiny, tiny compared to Japan and China, the second and third largest economies on the planet.

[00:07:16]:
Right. They’re 250 to 300%. Debt to GDP, likely higher because you can’t trust China’s accounting. Right. I would say. I would say China is probably all in. I say they’re 350% easy. Japan, all in. 300% easy. US, all in. We’re probably 150, 160 instead of the 122 that’s officially reported. But we have the world’s reserve currency. No one else has that. That’s a big, big deal. And it’s not really talked about. It gives us leverage.

It gives us. It gives us the ultimate leverage. Okay? And now we have a president like Trump that knows how to use the United States as. As the weapon, if you will, that it is. Right. We are the big kids on the block. We can be bullies if and when we need to. And when it comes to getting our way and righting wrongs, like the way we have been taking advantage of currency manipulation and trade, you know what? That’s the time to write that shit.

[00:08:13]:
Maybe that time is now. Right? So. And then growing our way out. This is my favorite part of the story, is growing our way out of it. You may have seen the post last week from Elon Musk on Twitter. You can tell the guy’s exasperated. He did an interview, I think it was on Fox over the weekend. I only caught part of it, but, boy, he was very careful about how he answered questions about Doge and how things are going.

If he caught that, I caught a bit of it. And he’s, like, biting his tongue because he knows he can’t bite the hand. Trump’s his guy. My wife Cindy asked me, do you think Musk is ever. Will Musk ever turn on Trump? Because the way the Doge really hasn’t worked the way that Musk wanted it to. I said, no, you don’t bite that hand. He’s too smart, and you don’t bite that hand. They have a very special bond.

That’s clear. Okay. It’s very obvious that they do, and that’s fantastic. But he also is biting his tongue, talking about some of the quote Unquote, failures of Doge to get these codified into the law. And of course that’s not what happened at all during the budget process. But I also understand the budget process is not really built for that. That’s actually something, a separate congressional action that needs to take place. I’m not ready to throw in, to throw in a towel yet on that.

[00:09:27]:
But the point being Musk has now come around publicly on an X account as the same with Trump and Scott Bessant of okay, we just got to grow out of this. We got to grow. It means I got to build a lot more robots, I got to have a lot more self driving cars and a lot more of everything that can help the economy to grow and make things less expensive. Okay? So deflation comes with that. And again, that’s rates. Rates. Look, we’ve been preaching, all right, we’ve been preaching this tune and I, and it looks like we’ve been exactly wrong. But I’m telling you folks, interest rates are about to plummet.

Right? They are about to plummet. You saw it happen in Japan. You know, Japan left there, everyone’s talking about it. Every, all the fear mongers. Oh, Japan’s just had the biggest move in history in the 30 year, three and a half percent yield. Yeah. It’s because they let it. That’s because they let it happen.

Right. And so, and now they have a huge move in the bond market overnight in a positive way in Japan that also sparked our rally today because they basically let it happen. They essentially gave up in yield curve control and they’re like, let’s see, let’s see, where does it go if we’re not, if we’re not as involved, where is the top. Right. And that’s what happened. Huge move there. And again, our bond market also had a fantastic day. The 10 year now battle of a sudden back down to 4.43%.

[00:10:51]:
Our position has been, you know, our position, Tyler and I are not, you know, we’re not, we’re not, we’re not a single mind or a single voice here. We do agree on most of the big things. And, and he knows that as I’ve got a little seniority here, so if something bigging doesn’t around here, he just really kind of bites his tongue. And I feel sorry for him for that. But hey, I had to do it. My mentors too. That’s just the way it works. But no, I think we agree on this that rates are going lower.

I know we do because we said it in the big Bribe. It’s a long term trend. Everything we’ve seen with a higher rate has been a counter trend. And I know again, that seems like heresy. Okay, but if we’re right about rates have only gone down for 40 years. If we’re right about everything we’ve seen being a counter trend, move higher in yields, think about what that means going forward. And my view is certainly I’ll let Tyler speak for himself, is that rates are going to plummet. The Fed has got this all.

I think we’ll cover this tomorrow morning. The Fed’s got this all wrong. Imagine that Jay Powell being wrong. What’s he been right? When’s Jay Powell been right? Since 2018 getting the job. This is by my count his fifth major policy error that he’s gotten wrong. Now he’s oh, we can’t cut rates because tariffs are going to cause inflation. No, they’re not. You’re not paying attention, are you? Right now 10, 10 year back down to 4.43.

[00:12:15]:
Global deflation is taking place, global disinflation. China is exporting the shit out of, out of, out of products right now. And they got a window to do it. And again all that does is drive down price costs. Look at oil prices. 60, what is it, 61, 62 a barrel. Now that, that’s, that’s the biggest driver of inflation there is because it goes in everything. And we’ve heard Trump tell us his story many times.

He’s exactly right to do so. Get drunk real quick. So Rachel, going lower. I’m not sure how we got on this topic or how I got on this topic. I only circle back and say that I, I think that the tariff stuff is, is largely behind us again. There’ll be some hiccups. Those will be buying opportunities. And now we’ve had this shakeout last week.

The markets have worked out their overbought conditions. Markets now set to run again and we, again we, we’ve been telling you this feels like a meltable market. Ask why would we change our tune now? What a day to day. Dow again. Markets finished rip roaring. Never had a drop today because there’s solid money, big, big money on the sidelines still. That’s got again institutional money and guess what? Yeah, that those money market funds still there, only growing 7.2, $7.3 trillion in money market accounts. This is money that’s going to come into the market as this train keeps leaving the station.

[00:13:37]:
Dow Jones today again. Everything finished right at the highs today. Dow Jones up 740 points, 1.7% SB 500, up Rust 2000 at 2.4%. Nasdaq up 2.47%. And our good friends Assemis. I actually don’t know where that closed here. Smh. Yeah, up three point.

Kip Herriage [00:13:55]:
Textbook smh. Semi ETF up 3.2%. Nasdaq up 2.47%. Leading everything else. Textbook bull market action continues. And again, if you’re, if you’re on the wrong side of this market, and I know a lot of people that are. I know some big names that are. I, I, I, I don’t like to out people on our podcast, but I know people that are still calling this a bear.

Big names that are still calling this the bear market, and this is a bear market rally. And I just look at them and go, man, why would you, why would you fight this? What, what, what do you have to gain from fighting this? Is your pride? Is your pride that big that you can’t admit? Hey, I got a call. Wrong. Let me flip. Let me get back on the right side of this party. I don’t, I don’t, I just don’t understand that because I, if I go to bed at night on the wrong side of the market, I don’t sleep, I wake up in a horrible mood. I’m in a, it’s reflected, probably reflecting in everything that I do. I want to be on the same side as the market.

[00:14:55]:
Who wouldn’t want to do that, right? That’s just the pain you don’t need to live through, Right? Again, don’t be a permanent anything. Is, is, is my, is my, is my lead comment there. But again, textbook. Everything we’re saying, without a doubt. And then Tom course also fifo, right? Fifo. First in, first out, right? I mean, this has been something we’ve been harping on from the April 7 lows. Last time I was on Charles Page’s show, I talked about it. Tyler talked about it on Charles Schwab, who he was on his show last, is that we’ve got the FIFO first in, first out.

The two market leaders that first peaked in last December and January worked in this order. Tesla and Nvidia 2 Max 7. Two most important companies out there. They both peaked again. Tesla in December, Nvidia in January, and started going lower. That’s when we started like, what’s going on here? We don’t like seeing this, right? And you know, again, it went up, biting us in the butt pretty good. But, you know, all we did was continue to add to our Tesla position, and then we we actually added Nvidia to the VR portfolio. The first time we’ve done that.

[00:16:05]:
It’s not been in the VRA portfolio and we bought that at 106. And since the April 7 lows, these two stocks have done nothing but lead the way higher again. That is relative strength. That it again textbook what you want to see. So FIFO is playing out that all of these, all of these signs pointing to a market that wants to only do one thing and that is go higher. And now we’ve had our shakeout from last week and a four day pause. So the overall conditions are gone. A lot of reasons to be excited here.

Nvidia tomorrow announces earnings after the close. As I wrote this morning, I’m going to tell you straight up, the news doesn’t matter. The earnings don’t matter for Nvidia. They don’t matter. It doesn’t matter that sales are down 47% in Europe for Tesla. It doesn’t matter at all. It’s already built in the news. The markets are the smartest discounting mechanism on the planet.

They already know their markets are now thinking about what happens in six months, not what happened three to six months ago. This is why you every look at Tesla overnight again out of Europe I saw all these negative piece of Tesla. Tesla’s business is down 49% in Europe. Oh, they’re not going to how they’re going to survive. Stop. 7% today. That’s up 7% right on that news. On that terrible news.

[00:17:21]:
Again, it’s not the news that matters. Is the market’s reaction to that news. Right. Nvidia day also at 3%. So there are two market leaders of 7 and 3%. Nvidia reports after the close. I would just say this about Nvidia again. We just bought it at 106.

It’s 135. Now here’s the thing. If the, if the news is somehow bad, some surprise happens, I doubt that that’s going to happen. But if something does happen and the Stock gets hit 10, 15%, whatever again, I don’t see it happening. But if that were to happen, guess what we’d be doing? We’d be buying. Probably not just in the viewer portfolio. We’d probably be in parabolic options too. We’re working on some new things and parabolic options that we’re pretty excited about some new trading strategies to add to what we do with the VR investing system and that’s the kind of thing we look to add to.

So anyway it’s again tomorrow is Big, of course, for the Nvidia news. Also this week, of course, The Bitcoin conference 2025 has kicked off in Las Vegas. Wish we could be there. Tons of 26,000 attendees, 300 speakers. This is the world’s largest gathering of bitcoin. Hodlers, of course. And look, we got, you know, we’re well positioned in bitcoin. Not just bitcoin, One of the ETFs, of course.

[00:18:31]:
Galaxy Digital GameStop. I wrote a special report over the weekend. God, Tyler’s blessing. So I was happy with that about GameStop. Kind of a deep dive that I had not done so far and put it out. Actually we put it out not just for VRA members this morning, but also put it out on our blog. We normally don’t put these out on the blog. That’s normally just for paying members, our VIP’s here.

But we went ahead and put that out because I do have a lot of people that follow me online for GameStop. So I wanted everybody to see this and you know, take a look if you’re not with us here to go to kipherage.com or go to v letter.com you can access our blog there and you, you’ll read that full report because again, they’re not yet in bitcoin. They’ve made the announcement that they’re about to be, but they’ve yet to announce they bought a single one and they’re only sitting on $6.3 billion in cash now. What does that mean? It means that they got 42% of the entire market cap in cash. If I didn’t, if I didn’t know any better, I would think, I would think the GameStop is an acquisition target because Ryan Cohen, CEO, and again, he’s got a cult following. Of course, the whole company does. Very passionate. I guess if he wasn’t there they’d probably all sell their stock.

[00:19:49]:
But he only owns like 8 point something percent of the company. I say only it’s a large holding. He takes no salary and you know, he just bought more recently. So obviously he’s, he’s, that’s the Warren Buffett model. Big believers in what they build. And he, he’s, he’s a huge fan of Warren Buffett. But outside of that they have 42% of the market cap in cash. That’s not being used so far.

I would think that’s an acquisition candidate. No. And we’re actually digging into that a little bit and put it in the report. But it does have interest up GameStop. Today, by the way, up a big 6% today. Just over 35. That is a clear breakout. It’s a pennant formation breakout.

No question about it now. And you know our next target there is, is the 50, 50 ish range, right? Getting stock today at $35 a share. Very excited about that. Especially when they started buying, when they started announcing they bought bitcoin. Just look out. All right, just, just look out. What else today? Let’s take a look under the hood today. Great action today.

[00:20:52]:
Great, great action again. Wasn’t great the last three, four days of the week, but it never got horrible today. Advanced decline today for a second quick refresh. Advanced decline for Nyse today was 6.2 to 1 outstanding. That’s outstanding about 3 to 1 for, for Nasdaq today. Up volume today for NYC, 82.3. Almost exactly the same with Nasdaq 82.9 again. These are very strong numbers, right? Garlic strong.

And we also had 259 stocks, 150 week high to 77, hitting a new 52 week low. And a sector watch today also rock solid. All 11 sectors trends higher on the day. Again, this was that kind of a day. All that money on the sidelines got to come in. Consumer discretionary got 3%. This is what you want to see. Consumer discretionary and tech leading the way.

And commission services, it’s really tech anyway. Okay. I don’t know why they even separated it out, but they did. So those are the three areas you want to see rocket and roll on day like this. And that’s exactly what we got again, nothing finished lower on the day. All 11 sectors finished high on the day. Commodities took a little bit today for the obvious reason. It’s a risk on, it was a risk on morning.

[00:22:01]:
So gold got hit today by one point right at, let’s call it 2%. It did finish about 20 bucks off the lows. Ask me if it matters to all the top callers that have been telling me for years, decades, really, gold is top. Why are you in that? Why are you in that non appreciating asset. Why are you in. The asset doesn’t pay dividends. Why are you in that? Yeah, because we bought it at 350 and now it’s 3200. So do the math.

Right? And we love to use these pullbacks as buying opportunities because gold is just going so much higher. So this is a gift really. But it’s a risk on day. So this, you know, this one, these assets take a breather. I really sincerely doubt it’s going to be for long. Especially in the mining stocks. They’re so, so cheap. Listen to this.

The entire market cap, the entire market cap of gold miners. Just, just what do you think? How big do you think it is? The entire market cap is 400 to 450 billion. For 400 to $450 billion for every gold miner on the planet. Microsoft’s market cap is 3.41 trillion. It’s seven times. Microsoft is seven times bigger than all the gold miners combined. Does this make any sense to you? No. That’s why this group is so cheap and that’s why again we’ve now had breakouts or the important 10, 12, 13 year rounded bottom breakouts that have taken place in gold

[00:23:31]:
And so you know it’s on, you know it’s, these are just phenomenal long term holds buys really but you know they get extended because they’ve had pretty good runs now and just you know, let it rest a little bit, let it take a pause and then we like to use monthly dollar cost averaging you know to add to our positions there. So again gold finishing at 3327. Silver today 3338 down half a percent. Copper today down 1.9%. 474. Been a pretty good run though. Crude oil today get back down to 61 down a half buck a barrel today again disinflation. There you go.

And finally the day Bitcoin. Bitcoin 25, 2025 is going on right now in Vegas. Wish we were there. We’ve got some folks that are there. We’ll, we’ll look forward to reporting back with their what they, what they tell us. So make sure please do that because we know all about it. Bitcoin by the way I don’t mean to jinx bitcoin. I mean we’re, we’re long but it’s 109,200.

Pretty much every time they do one of these events bitcoin sells off because I think the excitement’s there so everyone’s buying, buying, buying and then you know the shorts probably come in and go well there’s no more buying pressure. This is be an easy short and they hit it again. I’m not trying to jinx it. I have no idea if it’s going to happen again. I’m just saying that is a repeating pattern that has happened. So no we’re not obviously not selling but maybe you know may maybe a good time just to keep some, keep cash piling up there that you normally put into bitcoin now at one of these events and just wait and see. Then again tomorrow it could open at 120 like an idiot. Okay.

[00:25:06]:
Bitcoin will make you look that way again. Last trade, 109,200. All right, folks, that’s it for today. Hey, I hope you had a great day. Welcome back for the long weekend. And we’ll see back here again tomorrow after the close.