In today's episode, Kip calls out the mainstream financial media for their take on inflation and the impact of Trump’s tariffs, sharing his unfiltered views on the Federal Reserve and Jay Powell’s role in the current economic landscape. He also recaps the start of Q2 earnings and shares his outlook for the quarter. 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. Going to be a fairly short podcast today. I’m going to be on tonight with Wayne Root on his new show on with he’s doing a joint podcast with the get what you pundit and tonight’s the second night. We are proud to be the lead sponsor of the show Vras and it’s going to be big for Wayne.

Really happy for him. One of the best guys that I know, one of my best friends on the planet and just a guy that’s always he’s salt of the earth, you know, if you need something, he’s there for you. And I think everybody would all of our lives would be better if you had a friend like Wayne Allen Root in your life. So rooting the guy on tonight. Really happy to be part of this new show with new podcast with him. Hope you can join us tonight. I’m on at 6:30. The show runs I think five to seven each night on you can find it right on Gateway pundit website.

[00:00:57]:
You can, you can, you know, stream it right from there and likely from Wayne’s side too. I don’t actually have the answer yet, but I’m looking forward to be on Wayne tonight. Already had a great show last night and I’m looking forward to being on tonight. Talk about the markets and about some things you wrote about this morning, which is this is a good time to segue into the insanity that is financial reporting. Okay. Unbelievable. What’s the Dow? First of all, the dow finished down 400 points. Okay.

Nasdaq was up 37. But the story is at Russ 2000 was down 2%. Okay? So and it’s been red hot, you know, now everybody’s getting bullish on small caps now, you know, now, now, now they peter out, right? But the story of the day, and I don’t watch much financial tv but I when I’m doing a podcast, I want to find out what are they saying at the close, what are they blaming the move on? Cause it’s the market. The market rarely if ever moves because of the reasons that the financial media tells you that it does. Well, guess what they’re saying today, this is Trump’s fault. This is Trump’s fault. Because yes, Trump’s tariffs are in fact causing inflation. This is so and every network is saying it.

[00:02:14]:
I caught it on Bloomberg CNBC, which I don’t watch. I saw it on CNBC’s website, haven’t watched CNBC since the pandemic. I’ve, I’ve, I don’t boycott many things. I boycotted, I’ve been boycotting CNBC since the pandemic because they were just, the propaganda was overwhelming. It was so nauseating. Just lie after lie about what was happening. Just, it was unwatchable. And so I, I haven’t gone back to it.

But bottom line, they’re saying that the CPI read this morning was hot. CPI data was hot. And so that’s why the, that’s why the market fell. Okay, first of all, bullshit, I don’t know how else to say it. Complete horseshit. Bullshit. The CPI came in with core inflation of 2/10 of 1% for the month of June. The estimate was 3:10.

It was better than the estimate and the core. If you listen to our good buddy Jay Powell and his merry band of money printers, the Fed, they’re always telling you, oh, we, we don’t look at just the cpi, we look at the core cpi. Oh, what’s that? Oh, we can’t really tell you. It’s kind of secretive. It’s just such a scam. It’s such a scam. Yes, Jay Powell should be fired. I don’t care about, at this point.

[00:03:29]:
I don’t care about the drama in the markets. Get this guy out of there. He should not have this job anymore. Remember? Let me just talk about one major screw up. This is the one that deal, this is the, the career killer should be for Jay Powell. You probably all know I’m going to say so. No, this isn’t about 2018 when he calls the fourth quarter from hell for no good reason whatsoever. Okay, again, that was get Trump.

This is get Trump too. But during Biden’s administration when all the $9 trillion being printed, this combination of fiscal and monetary stimulus. $9 trillion folks. And Trump had played his role in that too. But now fast forward to Biden. All of a sudden we were getting signs of massive inflation on the way. What did the Fed say? Jay Powell said, no, we have no, actually have no inflation. That’s what he said.

The first month we have no inflation. And then the next month, you know, we’ll want to correct that last statement for last month. We do have a little inflation, but we see it as transitory. And then in the third month, all of a sudden we’re on our way to 41 year highs in inflation. Right. J Pal has never apologized to Mercury for this. He’s just said, hey, we made, we screwed up. And he laughs about it like it’s just funny.

[00:04:45]:
No, it’s not funny. It is a career killer. He should have been fired on the spot there, of course, wouldn’t he have with Biden’s president? And look, sometimes I think Trump could be a little, you know, I don’t know, short sighted in the way he attacks people, right? And punching down and things like that. I think we all kind of feel like that a little bit. But, you know, let Trump be Trump, right? So we are not this case. He should fire him. He should be fired now because this is the federal, Trust me, I tell you, this is the Federal Reserve and their lackeys that are feeding the media this nonsensical story they’re talking about today. That CPI is now hot and this is Trump’s fault because of the terrorists.

We’ve had five months of Trump’s terrorist folks, five months. And we’ve had no inflation in any of the months. Now it doesn’t mean we won’t have a little bit, but who cares? This is all talk about transitory, this inflation is transitory because it’s only going to happen once and then it’s set in stone. That’s the rate, that’s the tariff rate, right? It won’t continue to build. So they should be able to look through this, right? And just say, look, look, here’s what we’re going to do. We’re going to go and start cutting. We’re going to resume a rate cutting schedule because that’s the right thing to do. People can’t buy homes now set with 7% mortgages.

[00:05:59]:
Second America is in real trouble and they are, they’re getting late on the credit card payments, their credit card, their car payments. Second America is hurting and you got half the country that can’t buy a home because mortgage is set. You bring a mortgage rate down from 7% to 4 and a half percent. It’s a game changer for the whole country. So shame on Jay Powell. He’s the worst Federator of our times. He should be fired today. And any of the media lackeys that are repeating this nonsense, you know what, just give them the middle finger.

Call them up, send them an email, send a message, right? You suck. And we don’t just do what I do. Boycott CNBC and be very, very selective who you let in your mind. You know, just listen to me and Tyler on our podcast, read our letter every morning and I’m telling you, you will be set. Find some other really great people like Wayne Allen, Ruth, you know, make your Own cure. Have your own cured list of like 10 people. That’s what I’ve done. I only have a certain number of people I let in my mind, okay, that I waste my time listening to because life’s too short and it’s too frustrating listening to idiots or propagandists.

[00:07:09]:
And that’s what we’re surrounded by today. So, yeah, this is. Inflation is not a problem. Now today we also got the bank earnings. I’m gonna go through this very quickly. J.P. morgan did great. Wells Fargo has long term structural issues.

I would not touch that. I would not touch that stock with my worst enemy’s money. And Citi, actually, their stock did the best today. So JP Morgan, Citi did fine. But again, they got caught up in, you know, the Dow Jones being down. These are value stocks here. So the bkx, the bank index today did wind up finishing down. Let me give you a final read.

Yeah, 2.4%. Not, not a big deal. Remember folks, let’s, let’s, let’s, let’s, let’s zoom out a little bit, right? Let’s remember where we are right now. We just had one of the sharpest bull market runs, one of the best bull market runs in history. From the April 7th bear market lows. Now the SPF hunters up now 38, 38%. 38%. And what is that, three months, right? April, May, June, NASDAQ is up.

[00:08:18]:
Where’s that? I just did the 39% after today, probably 40 roundup. Okay? But along the way, as we’ve been telling you, we got to extreme overbought levels and that’s where we are. That’s, that’s what’s going on here. Bad things happen in extreme or bought. But look, we’ve also taken a pretty hard line on this. That. No, we’re not, we’re not taking profits here. We polish our buying in some things, but we’re not, we’re not taking profits.

And there’s still a lot of things that we are buying, you know. You know. So anyway, it’s, it’s, it’s. Sorry we got the hiccups here. It’s a no bar market. But anyway, that’s. And we have no inflation and J. Powell should be fired.

Okay, let’s take a look today. What else we got here for you? I wrote this up this morning. I’ll go through quickly. We got four major reasons the markets have been discounting what’s going on. In other words, the reasons they’ve been melting up. Okay? Animal spiritual kicking in. This is primarily Tied to bbb. Right? Trump’s big beautiful bill.

I think that’s what it is. I call it bbb. So much I don’t know. But again, it cemented the tax cuts in 2017. It’s got deregulation tariffs, of course, and what’s happening with energy and a commitment to these data centers and AI. It’s just extraordinary the growth this is going to bring to the country. And so we’ve been telling you that by the second quarter of 2026 we will have 5% GDP growth in this country. I think we’re the only people saying that.

[00:09:46]:
Okay, but remember three years ago we told you we were going to have the roaring 2000s and that we were entering the innovation revolution and the stock market was going to melt up. No one else is saying that. Three, no one else that we know was saying that three years ago except us. And we wrote a book to prove it. Okay? So we’re sticking holding our guns. 5% GDP growth a year from now, probably by year end. That’s what’s really going on. See? And that’s what looking back, looking forward, that’s probably what Jay Powell will be able to use.

Oh no, we don’t have inflation, but look at the growth we have. Oh, we now we have wage inflation. Now we have, oh, the economy’s really starting to take off. Can’t cut rates now. This is all about get Trump. If this was a Biden presidency, they would never have paused the rate cutting schedule. Just know that five fire this guy. He’s only in office now to hurt Trump.

[00:10:43]:
Get rid of this bum. He’s the worst edge here of our times. All right, just very quickly here, we covered a lot of territory this morning. I just wanted to mention one thing here today on Charles Payne show, making money, he had the CEO of GME, GameStop, Ryan Cohen was on and very interesting interview. Ryan Cohen, first of all is very tight lipped. He’s very, very cautious about what he Sundays. Now there’s two schools of thought here. I guess I understand that he thinks the shorts are out to get him.

So he doesn’t like to give his game plan, make it public. I don’t know that I buy that. I think he’s just a conservative guy that moves slowly and he knows what he’s focused on is kind of boring for most people. Like he’s turned GameStop around. When’s the last time you were in a GameStop store? Right. What would you go into? Trade Pokem. What are you going in there for now? Everything, all the, every, all these games are online. You stream everything.

Right? I don’t, I don’t know why people go in these stores, but somehow magically, he has been able to turn this thing around to a profitable business. That’s the story. And I think he just knows it’s so boring that he didn’t want to repeat it. But now, but now he’s got $9 billion in cash through these convertible note offerings that have no interest. They bear no interest. It’s free money for GameStop. It would only equal dilution if this, if the shares go up 30% and then the convertible note would be converted into common stock. So you know that, that’s, that’s the, that’s the possible downside, but it’s just more dilution.

[00:12:17]:
But again, 9 billion in cash. I think it’s a good trade off. But Charles asking some great questions today. I want to just cover a couple things because we own, we own GameStop. And I asked a question that Charles was nice enough to put on air today as the first question about. I wanted Ryan to talk about what they’re doing with what his views are on financial engineering because that’s what he’s up to. That’s what he’s doing. It’s very high level.

He comes across as just this oh shucks kind of guy. And I just believe in making America better. And I’m pro America and I don’t like shorts and I want to be the next dude, you know, Warren Buffett or something like that. Right. But he’s done all shucks kind of guy. Although he did drop an F bomb and say on Charles show today. So next time I’m on Charles show, I’m gonna see what I can get away with. How about that? I didn’t even see Charles.

I didn’t even see him wince or anything. You know, I don’t know if Tyler did, but we didn’t talk about that. But anyway, you don’t hear the F bomb a lot on Fox Business if you did today. But I really want to find out. That’s what most I’m most interested about. It’s why we haven’t sold the stock. Because this is. I actually have a problem with this management style here because a CEO’s job, a CEO has, if they do share responsibility to his shareholders because it’s not his company, it’s a shareholder’s company.

[00:13:35]:
Yeah, he owns 8% of the stock, but that ain’t the majority. Right. He has a fiduciary responsibility to explain how he’s building the company now. No one’s going to make him do that. And you always had the option of just selling your shares. And I think a lot, I think that is happening, by the way, I think a lot of the old retail guys are gone now. His retail support team, which I think is why he’s going on TV now. He’s on CNBC this morning.

He said even less on cnbc. Anyway, bottom line is we’re staying with this because he’s working on something big again. 9 billion in cash kind of gives it away. They now have a position in bitcoin, which he refuses to even talk about. Whether or not he likes bitcoin or not. He’s just like, yeah, we bought 5 million worth of bitcoin because I said we were going to. So we did. Who knows what’s going to happen.

But what I think what came true here is what maybe not be well known about. And Tyler agree with this. This guy’s conservative. This guy’s conservative. He said that the market, we don’t. He said the market sometimes go from red light to green light without even having a yellow light, meaning that as he said, the market could drop 20% in a hurry. Well, we just did see that, didn’t we? That just happened with Trump’s tariff screw up. All right, that just happened.

[00:14:50]:
So he’s not wrong. But he didn’t put his money to work. So when you get that opportunity, Ryan put it to work. That’s when you load the boat with bitcoin and you know, however you’re going to diversify, what other stocks you’re going to buy or because he wants to be a money manager essentially, like again like a buffet and invest in the company. So, you know, it’s not an easy, it’s not for me, it’s not an easy story to defend. And today’s interview didn’t make it any more. So I like to know what’s going on in a company and it’s hard to see this outside of their working on turning the Gamestop story around. I just don’t know why, I don’t know why you want to.

But again, that’s his passion. But he’s truly America first guy that comes clear. He hates short sellers and he’s obviously a very bright guy. He’s done something here. Pretty miraculous. So, yeah, we’re going to keep our position in it and just keep trying to find out more because I think he’s, I think he’s up to something. When this finish. I know he is.

He has to be. He’s got big plans here. We just gotta, we gotta be a little more patient, I guess and wait and see what that is. All right. But again, hope you enjoy us tonight. Wayne show. Maybe we’ll have a chance getting that tonight too. I’m gonna be a little more transparent than Mr.

[00:16:00]:
Mr. Cohen is, I can tell you that much. Okay, the internal state go through quickly. Internals today were not good. We had, I just had the screen up. There we go. Rounding up almost 4 to 1 advanced decline negative. NYSE, NASDAQ 3 to 1 negative down volume.

NYC was 70% of 7% down volume. NASDAQ today actually was almost flat volume. NASDAQ again did higher. It was slightly negative, but, but no big deal. And we also had about 200 more stocks hitting a 52 week high to hit 52 low. But again, this is an overbought market, folks. It’s an overbought market. And by the way, on these bank stocks, I can’t tell how many times I’ve seen this bank stocks will report like the first day and the stocks will go down or up, whichever, and then they go the other way.

The rest, I’ve seen this happen so many times. So I think that the banks, the banks are in good shape here. We don’t own them and I’m not recommending them. But again, we’re very bullish on this Q2 earnings season. Remember, estimates now have fallen to only expecting Q2 earnings coming just 4% growth. Right. We did 16% in the fourth quarter, 12% in the first. So they, again it’s, they think the tariff, the tariff strategy of Trump is going to just destroy the economy.

[00:17:24]:
This is what, this is what these mainstream economists and analysts do. They just what are the consensus is that’s the side they take. And if, you know, Tyler and I, you know, we are contrarians all the way. If we get everybody saying go left, we’re going right. And if everybody’s bullish, we’re not right. And right now I think that people are reading this economy incredibly wrong. They don’t apparently have any idea what’s inside the BBB and how pro growth this is. So I think this quarter will be the worst quarter of Trump’s presidency.

And I think the market is going to, I think again we’re seeing the V shaped bottom is telling us what this market wants to do and it will continue to move higher. This is not a great time, seasonally speaking analytics, it’s not a great time to be bullish here. And we are overbought. But it’s a great time to, it’s a great time to be a stock picker, right and buy the stocks that you want to buy. And we’re doing that right now. Gold Miner Snow, Snowline gold up another 4% today. Hitting another all time high today. Just really starting to take off again in a, in a, in a down day for a down day for the miners.

[00:18:29]:
GDX today was down almost 2% today. Right. And then you know we love smr, which is a new court. Nucor. Nucor. What the hell is it? It’s a nuclear company. New scale Energy Corp. Thank you, Kip.

You got it right. And that stock has been just red hot. So I think it’s a pick and choose market. But it’s not a great time to buy if we own Nvidia. It was up 4% today. Not a great time to buy Nvidia here. It’s just again it’s extreme overbought. So that’s the work we do here with our Vre Vesti system, Tom.

And again it’s, I think it remains a great stock pickers market. That’s the point I’m trying to make here. Let’s go ahead and just go and wrap this up. I gotta get going here. Look, we’ll be back with you again tomorrow. Hope you have a great night and we’ll see you back hopefully again. But tomorrow you join us for our podcast tomorrow soon. Have a great night everybody. We’ll see back here again tomorrow after the close.