Wall Street Unplugged
Episode: 1049June 21, 2023

2 sectors you need exposure to right now

This market is unlike any other I’ve seen in my 30-year career… and I’m getting a ton of questions about how to play it.

I start today’s show by breaking down the mixed signals investors are dealing with right now… why Big Tech is surging—even as the Fed tries to cool the economy… and why it’s clear the Fed has no idea what it’s doing.

The good news is that all of this uncertainty is creating a lot of opportunities for investors. I highlight two sectors I’m extremely bullish on right now—including one that will benefit from a major market rotation that’s already underway… and a strategy you can’t afford to miss once the market starts pulling back again.

I’m crafting a special deal on three of our most valuable services to play these highly profitable areas. Keep an eye on your inbox next week for all the details… and if you act quickly enough, you could score a one-on-one conversation with yours truly (bear in mind, I can’t give individual investment advice). 

On tomorrow’s WSU Premium, Daniel and I will break down two opposing reports from Wall Street firms—one bearish and one bullish—and explain what to pay attention to in each one. Plus, we’ll reveal the latest Dollar Stock Club pick—an asset with incredible upside potential in one of the sectors I mention on today’s show.

Inside this episode:
  • One of the craziest markets I’ve ever seen [0:35]
  • The Fed has no clue what it’s doing [9:15]
  • 3 highly profitable ways to play this market [23:10]
  • Stay tuned for one of our best deals ever [44:20]
  • Don’t miss tomorrow’s WSU Premium [47:56]
Frank Curzio
Frank Curzio, founder and CEO of Curzio Research, is one of America’s most respected stock experts. His research is regularly featured on media outlets like CNBC’s Kudlow Report, The Call, CNN Radio, ABC News, and Fox Business News. His Wall Street Unplugged podcast—ranked the No. 1 “most listened-to” financial podcast on iTunes—has been downloaded over 12 million times.
Transcript

Wall Street Unplugged | 1049

2 sectors you need exposure to right now

This transcript was automatically generated.

Announcer: Wall Street Unplugged looks beyond the regular headlines heard on mainstream financial media to bring you unscripted interviews and breaking commentary direct from Wall Street right to you on Main Street.

Frank Curzio: How’s it going out there? It’s June 21st.

I’m Frank Curzio. This is the Wall Street Unplugged podcast where I break down the headlines and tell you what’s really moving these markets.

Wow, so much to talk about.

Maybe not today, over the past week in today’s Wednesday and whenever they have Powell on the Hill usually have comments from it.

But when they’re actually broadcasting it live on CNBC and Fox Business stuff, it usually means there’s absolutely nothing going on with the rest of the market.

A little bit after earning season, FedEx reported not so good but there was some good parts to it.

Markets expected to go higher.

Yes, they’re seeing a little bit slower demand, but a few things.

Stock was down a little bit and then as I’m taping it’s, it’s only down a little bit came back.

But lately I’ve been getting so many questions from subscribers and it asking me, Frank, how do you play this market? It’s really crazy, unusual times.

What should I do? Should I go all in? Should am I missing this to fomo? And that’s always, I’ll tell you all the emotions.

That’s the biggest when you feel like you’re missing out and that greed factor when other people are like, oh, I had Nvidia and I had this, and you’re missing out and, and you know you’re getting in late and then you get crushed.

But it makes sense.

I mean it is a crazy, crazy time.

We’re an inflationary environment where the Fed ‘s doing everything is power to slow growth.

That’s what they’re doing.

How are they doing that? They’re raising rates that’s by the fastest price in the Fed era by over And also by slowing the purchase of mortgage-backed securities and treasuries, which you know, qt QE is the buying of bonds.

When you’re doing that, they’re printing money to buy assets, right? So they’re constantly adding liquidity in the market, which is something that we’ve seen for over a decade.

But now what the Fed is doing and QT rates are higher, they’re taking liquidity out of the market.

And if you look at these policies so far they’ve worked to some extent seeing earnings for companies falling year over year demand coming down, the economy’s slowing, picked up a little bit last quarter, expectable to so later this year, consumer spending starting to slow.

Banks are tiny credit standards and, And when you see these conditions throughout history, normally, normally when the Fed is aggressively taking liquidity outta the markets, multiple stocks usually contract again, demand falls, prices come down, margins get hit, earnings start to decline.

I’m kind of seeing that right as the Fed is aggressively raising rates and removing liquidity from the economy.

You’re seeing this happen real time and it needed to do this at an aggressive rate because inflation is where hit 40 year highs last year.

It’s coming down to in the right direction.

Again, normally this will result in lower stock prices.

Normally this year however, the NASDAQ is up close to 30%.

It’s had its best five months to open a year in its history.

There’s a lot of confusion.

You see the Fed raising rates, inflation is moderating, yet unemployment is very strong.

What wage growth is strong? How did that happen? Housing, I dunno if you saw the latest numbers from this week.

Holy cow, it’s starting to pick up again.

Pretty big deal cuz this is a major component of CPI that they have very little control of and they made it this way over the past 30 years.

They made it.

So, especially rental rentals are a big part of this.

Why? Cuz rentals almost never go higher by a, by a huge percentage.

Even pre-credit crisis, when we saw home prices go up some 20% a year and going crazy for like two, three years straight rentals kind of went up, not that much.

A few percentage, three 4% wasn’t that bad.

They weren’t going up 10%, they weren’t made for that.

So that’s why they made this and they say Hey you know what? We wanna try to make this index show as little inflation as possible.

It’s the reason why for 10 years we all saw inflation with the bills that we paid.

But the Fed always told us it’s below 2%.

There’s no inflation in the market even though every one of our bills paid.

That’s why.

So maybe some of us own our houses and not rent them, but it kept that rate pretty low, that inflation rate for CPI and now it’s biting ’em in the ass.

And now housing is supposed to slow, supposed to, but did you see the latest data mortgage application to build new homes up 17% last month.

Single family housing starts search 18.

5%, these are the latest figures read at least a couple days ago.

Home builders all time highs where rates surge from So normal bull markets also, which includes strong economic growth.

That’s coupled with a normal market, which by the way no country, no country is seeing right now.

I mean you might be able to pick like the hundred 65th country that’s showing growth.

But if you look across Europe, they’re not seeing growth.

Look at China, they’re definitely not seeing growth.

They’re gonna announce a major, major trillions in stimulus one country that can do it because they don’t have too much inflation there.

I mean the figures that they reported, I mean will lower this year than they were last year and last year China was closed.

That’s how bad it is in China right now.

It could be a good opportunity as these stocks come down because they have no choice.

See trillions in stimulus but really in knowable markets, where’s the economic growth? And during these times we usually see what oil move higher.

Believe it or not, oil usually moves higher when we have bull markets, if you look at history and that makes sense too, right? Cause you’re growing more, you’re building more, right? But it’s down significantly from its high.

Something that we’re not used to seeing.

Look at a large percentage of the gains in Nasdaq.

S and p 500 have been driven by six seven stocks.

Yet outside of Nvidia, almost every one of these stocks are seeing earnings declines year over year.

Yet the trading in 52 week high all time highs.

And also their biggest growth segments are slowing.

When you look at Apple, the iPhone sales services, which is surprising worse than expected, iPhone sales are slowing.

They never, ever Apple follow all my life.

Apple never gives out their new phone for free.

I know they’re coming out with another one September, they never do.

If you, you can go to any carrier right now trading your old phone, they’re gonna give you a brand new one or a thou like a thousand dollars credit and it may cost you like 200 bucks, 150 bucks.

They never do that.

That’s just demand has come down.

You say Microsoft cloud growth is slowing, it’s still growing but it’s slowing from the pace that it was growing at.

Which means you know that’s not a good sign when you have a growth multiple on your stock.

Doesn’t matter.

Microsoft’s doing great cloud and consumer spending for Amazon slowing Google talking about a company that’s threatened by ai.

Holy cow.

Another one, it’s not really seen.

Strong growth.

And then you have Tesla, which has been absolutely on fire, don’t get me wrong.

I love Tesla.

I think they’re light years ahead of everybody else.

Light years now they’re all gonna be using Tesla’s charges.

And apparently this has been seen, as like the, the biggest bullish sign ever.

Fine up 13 straight days up incredibly well, well over trip over a hundred percent this year.

This year.

And most of these names are up over, I think Amazon’s up like 56% this year.

Most of ’em up over a hundred percent.

But you look at Tesla again, it’s been on fire.

Even though the company is doing what they’re lowering prices for their main product, EVs and margins are falling.

Not to mention almost every one of these companies are laying off employees and indeed lay off employees.

If you really think the next 12 to 18 months is gonna be positive and economy is gonna come roaring back, would you be laying off employees? I could see the first couple rounds, they’re still doing it yet they’re trading at their all time highs.

Like business is absolutely perfect.

Again, something we’re not used to seeing.

Probably why I’m getting so many questions when you look at this, see the confusion.

I know why you’re scratching your head wondering, you know, how the hell do I play this market? Hell, even the Fed if you look at the Fed has absolutely no clue saying inflation was transitory 18 months ago.

We all know that story.

Then raised rates from, you know, you just said before, point 25% to to over 5%.

And you can say, well that was a little while ago, but what about now? I mean the Fed knows less now or was more confused now than they were then and they could have been more wrong on anything the exact opposite.

They were pounding in our heads.

They told the president of the United States got on and said, oh all the economists and the Fed says it’s gotta be transitory, it’s gotta be transitory, it’s gotta be transitory, it’s gotta be transitory.

We heard that it was to, it wasn’t.

Not only was it not tra it was totally the opposite.

They’re like, holy s**t.

Because you know, this environment’s different.

You can say, okay Frank, we, we talked about that already, but what about today? The latest meeting, right? The Fed last week said it’s pausing but expects to raise rates later in the year.

What the, what the heck does that mean? I mean it’s being called a hawkish pause.

A hawkish pause.

I mean for reference, we’ve never seen the Fed who’s supposed to be the most transparent organization in the world and they do this on purpose since their comments, which they all speak publicly, not just Powell, both Fed presidents, they speak publicly and tell you what they’re gonna do all the time, right? They have to be transparent and they wanna be, cuz literally trillions of assets could go in and outta the financial markets based on what they say.

If they’re like, well we’re expected to keep rates the same next quarter and that’s what we see going in and and then into it, all of a sudden they raised by 50 basis points.

You’re gonna see a massive move in the global markets, right? These are the most powerful organization in the world.

So, so especially since a credit crisis, the Fed purposely makes sure that there’s no surprises and there’s been no surprises.

Everything that they said they were gonna do and the percentages they were gonna do, they did, they did.

The comments afterwards might have been different, but the rate hikes or the pauses, they were all expected and that’s what they want.

But we’ve never seen a Fed like this or say something like that.

Say it’s pausing now, but you know what we’re gonna raise later.

It’s like telling everyone to go on a diet starting tomorrow, but next month we want you to eat McDonald’s every single day for two months.

As we all get in shape together, it makes absolutely no sense.

I mean if you look at the markets, what’s the biggest threat? Even when you buy options, what’s what? What’s your biggest risk? It’s time.

You don’t know what’s gonna happen in the future.

We try to look at history to predict the future.

We’ll look at different things.

We do this for a living, you know, that’s the goal.

That’s what AI’s all about.

We wanna know, be able to predict a fusion before it happens.

But we all can’t.

And you can’t.

So since you can’t predict the future act on what we know today, we know today that inflation is still very, very high.

It’s very high inflation.

Yes, it’s moderating.

People think it’s gonna slow.

I don’t know because housing is going back on far to the point where my house, which I’m about to sell, I just looked at the price, the average price and, and houses still flying off the market.

Yes, I live in Florida, it’s up 5% from last month, 5%.

And if you look back historically and go back, you know, 30, one and a half percent average annually, yes you have inflated markets and it’ll go up more and then you see crashes after the credit crisis and you know the ups and downs.

But usually it’s up 5% in a month.

I thought this is supposed to come down.

That’s insane.

Seriously, if you own a house, go to Zillow and look un Zillow of where it is.

I, I bet you it’s higher now than it was 30 days ago.

It might be down from its high because it declined the past few months.

But all of a sudden, and yes it is the season to buy houses, people like buying houses now and their kids, they could go travel and stuff since they’re outta school.

But holy cow, this is a big part of the CPI.

So inflation is still very, very high, over 4% and we’ve never been over 4% annually since 1991 with the exception of last year we went 9%.

So it’s still very high even though we’re moving the right direction.

So we know that.

So we know that unemployment is still very strong.

We see the markets surging, so why not? Why not raise now? Instead you’re gonna choose to raise later when you can’t predict the future.

But here’s what could happen.

The market possibly sell off significantly.

I mean we’re valuation’s at incredibly high.

You could say that 20% ago or 10% ago for many stocks.

So now we have a possibility of the market coming down over the next few months, maybe while inflation stays high, since again housing is on fire again, unemployment is not really gonna change too much over two months, still historically low.

And what are you gonna do? You, you’re going to raise into that type of market cuz inflation’s remaining stubbornly high.

That’s the setup.

That’s what the smartest guys, the so-called smartest guys in a room.

That’s your setup, that’s your advice.

Are you kidding me? I’ve never heard that from the Fed in the 30 years I’ve been covering this.

So when you see the smartest guys in a room that are super confused, don’t beat yourself up for feeling the same way.

Cause there’s no playbook right now.

There’s no reference, there’s no data points to look back on and say, oh remember this happened at this time and now we’re gonna see this pattern happen at this time.

Right? They always say, you know, the past may not predict the future but it rhymes.

There’s nothing that’s predicting what’s going on right now.

Nothing.

Nothing.

And this s**t never happened before.

Locking down the entire freaking world funding other people’s war wars with unlimited budgets.

Like we’re seeing money, oh we made a mistake, we made an accounting error and, and it, you know’s, 5 billion, we we, it’s like unlimited.

Whatever you want, here you go.

Just keep giving money.

There’s no, it’s not like, hey, we’re gonna give you this.

Let’s see the progress.

There’s no point.

It’s not like, hey let’s mon just unlimited, keep printing.

Doesn’t matter.

I mean 32 trillion in deficits.

I always said deficits don’t matter until you can’t pay those bills if you’re not paying a debt that’s in trouble.

We’re starting to see that.

Of course bankings, loan loss reserves are starting to to go higher and higher.

We have earnings and sales slowing for the s and p 500 company fact slowing down year over year in earnings, barely seeing sales growth year over year interest rates, absolutely surging yet stocks are hitting 52 week highs.

Mortgage rates are the highest they’ve been in decades, maybe a little bit off of those highs.

And you’re seeing the housing statistics that we’re seeing and again, home builders, home builders at 52 week highs and they’ve been very adamant about what they’re seeing.

There’s a supply concern, people wanna buy houses and we are building like crazy and they, they’ve been saying this pretty much for over two years now and people are like, okay, well mortgage rates and they, you know, they come out and you expect it like you expect the holy s**t, okay, demand’s falling off a cliff and they keep reporting these blockbuster numbers.

Keep raising, you know, buying back stock.

I mean these guys have never been stronger in their histories and you’re waiting for it.

You’re waiting for it, especially past six months with rates rising, margin rates rising, you’re waiting for it and it’s still raising and it’s not like they’re seeing it well with, it’s not like they’re seeing with technology where earnings are declining year over year and they’re fing employees.

No, you’re not seeing that at home bill sector.

It, it’s roaring and maybe that changes next quarter to quarter after.

But these guys, all of them together are, are saying the same thing, bill, like crazy seeing demand surge, yeah, home prices are down in some areas but still seeing demand.

So it’s a crazy market and things don’t make sense.

Then before you run out and sell stock, say I’m done with this, wanna get out of it.

Maybe dumping treasuries or an Apple savings account, which offers four and a half to 5% yields risk free.

Which by the way you should have an allocation to, especially with retiree, you wanna have some risk in a market.

You wanna speculate with capital no matter what your age is.

I don’t care if you’re 98, you should speculate a little bit with a small portion of your money, just a small portion.

Of course that percentage, you know, will be higher the younger you are.

You wanna have a little exposure.

But enjoy those.

Enjoy the, the, the, the risk-free rates.

We haven’t had this in 15 years.

Risk-free at four and a half, 5%.

That’s awesome.

Before you run out and say, oh my god, I just can’t take it.

It’s so confusing.

I dunno what to do.

I could tell you one thing that’s certain, one thing that’s certain volatility, huge price swings.

The Fed not having a clue.

Raise, pause, will wait.

And this confusion, these conditions are not going away anytime soon.

And I’m talking years.

This isn’t like an end of the year thing.

This, I mean look, we were supposed to raise rates and start lowering.

Remember we were saying, we were saying nine months ago, we were talking about the Fed lowering rates in February, March, April.

It’s June.

And they’re out saying, okay, we paused, but we’re still raising rates at the end of this year.

Something that we’ve been adamant about, we told you there’s no way they could lower rates.

Inflation’s just too high, it’s coming down so we’re in the right direction.

It’s still extremely, extremely high.

We would be very nervous right now if the inflation rate was 4.

5% and it wasn’t This is crazy.

We haven’t seen this in, in, in 30 years but since it was 9%, four, four and 5% looks pretty good right now.

But that’s for certain these environments are gonna be nuts and confusing and it’s gonna be around for years.

But the great thing about markets like this is we see so many assets, stocks, even bonds, they get mispriced both ways.

On the upside and downside, you’re taking Nvidia seeing tremendous growth.

Now it’s trading 40 times sales, six times forward earnings.

And if you look at the average price of sales for S&P 500 company, it’s 1.

7 times.

Again, Nvidia is at 40 times the average PE right now.

Well usually if you take the 10 years it is 18, they’re trading at 60 times forward earnings.

Now Nvidia, like Netflix, apple, Amazon, Google from 10, You reported amazing quarter and then being an industry leader, however their margins are 70% massive, massive margins for our, you know, it’s not purely a hardware company but for these chips, chips.

I’m not just talking about a M D and semIcahnductors and Intel, Intel, geez they’ve been so behind the curve, but I’m talking about Apple and Google building their own chips.

That’s what happens when you have margins that big and these guys last I saw have incredibly deep pockets.

They could put tens of billions of dollars into building these new AI chips.

That’s more competition.

Maybe Nvidia figures this out and don’t listen to me about Nvidia cause I’ve been wrong.

I thought the stock going up, up a hundred percent into the quarter trading at a crazy valuation.

I’m like, even if they beat by a pretty good number, it’s probably gonna sell off.

They blew out the numbers good for them.

But could they continue with this? I don’t know, maybe there’s other large cap names that are trading at insane valuations while they’re seeing very little growth, which is unlike Nvidia.

I think we’re gonna see a lot of these names get hit in the next earning season.

Why? Because expectations are now sky high for these names.

Now what do I mean by expectations? It means the analysts, the analysts have been significantly lowering estimates for the past three quarters.

So when you see Microsoft beats and Apple beats and all these companies beat, they’re beating, they wouldn’t have beat their original estimates.

They’re just down eight to 10% going into the quarter.

So they beat that number, which is fine, which still happens to be slower earnings growth than they saw a year ago for almost all of these technology companies outside of Nvidia.

So now analysts are starting to raise these estimates as we’re seeing more optimism, some stocks going higher, the market’s going higher.

So now expectations are really, really high and valuations are really, really high, which means you better beat and not every one of these companies are gonna beat.

Some of them will have you Nvidia beats again, that’s fine.

But a lot of these names, again, they’re still laying off employees, they’re seeing their biggest markets slow down, they’re doing fine.

But should they be trading at their highest valuation and 52 week highs in this environment where the Fed is doing everything in its power to purposely slow growth.

So watch out cuz many of these names are up a hundred percent year to date, year to date, which is insane.

They put more weak results, they come out with those weak results or week outlook, watch out.

We saw this a month ago with some retail names, some of ’em bounced back, but we saw 15, 20% declines and like 5, 6, 7 stocks.

They like covered it.

Horse pump premium.

We could easily see these declines again with stocks up a hundred percent heading into the quarter, a 20% decline is not crazy, especially if you’re not meeting those expectations.

Or if you offer weak guidance, we’re seeing the biggest disconnections or small caps.

Then NASDAQ, if you look, you see a chart of this and due year to date, it’s unbelievable.

The NASDAQ is outperforming the Russell 2000 year to date by 23%.

I can’t remember ever seeing this wide of a gap in, in my 30 year history.

I I I, I have to look back, I don’t remember seeing that kind of gap because we also had small cap names rising during the top com era.

I’ve never seen something like, I’ve never seen the, just the gap of you see 5%, And you’re looking at small caps.

Many of these things are already cut costs.

They’re starting to see that supply chain concerns ease, which by the way, supply chain concerns.

If you look at Goldman, if you look at at so many companies, and I tracked this for a long time, to see who’s full of s**t blaming supply chain concerns and and demand.

When it was really demand companies like Ford and stuff like that, there’s no supply chain concerns.

Boeing could say, well we see a little here, we see a little, if you look at the supply chain concerns based on their index is lower today than it was in 2008.

That should not be a concern.

Otherwise you’re doing something wrong.

It’s easy to go to another supplier and get what you need right now.

Maybe there’s, you know, again some examples of things that that just are hard to get.

But overall, when you look at the industry supply chain concerns, ease incredibly, it’s not a concern anymore.

So a lot of these names cut costs, small caps, yet the difference between these names in small caps, some of the largest tech stocks, many of the small names are still down 50, Cause the market’s up and the S&P 500 is up and you know, again, it’s contributed to a lot of stocks and we’ve been down like three days in a row after hitting new highs.

But a lot of these names are down significantly.

It’s why we’re seeing huge inflows into this sector over the past few weeks and especially last week.

And this is factual, this is based on the Bank of America inflows, outflows.

If you subscribe to my newsletters, I usually show this and show just some of the sectors.

It’s good to see like trading opportunities and stuff.

But money is actually flowing a little bit out of tech finally.

But now you’re seeing small caps as this allocation in technology has gotten bigger and bigger and some of these funds have gotten it right that now the allocation as percentage is bigger.

Now they have to reallocate that money someplace and it’s going to, I’m not saying the whole Russell 2000 and by the whole Russell 2000, I’m just saying the ideas I’m seeing here are incredible from a risk reward standpoint.

I brought up Macy’s and Macy’s is a company that lowered guidance significantly.

They reported on June 1st, okay, a couple weeks ago, significantly they expected to to to earn $4 a share at the end of the year.

And they said now it’s $3 a share.

And they already lowered kind of like, you know, had kind of a, a weak outlook and said, you know, we’re seeing consumers really, you know, tail spending and you know, curb their spending and stuff like that.

But the reason for the miss is the worst that you could say.

It said weak traffic, weak sales.

And it, it was across many segments.

It wasn’t one thing or two things or something or one time it it, it’s weak traffic.

And they said they expect this, these conditions to continue for the rest of the year.

So you even saw digital sales fall 8% from last year.

I mean everyone’s digital sales.

Eh, I can’t say everything cause digital sales has gone up so much since COVID.

I mean some of it, but everything, every part of their business, it wasn’t one thing you could point to say Wow, look at me, that’s great.

So stock was $13 and 75 cents when it reported.

You know where it is now? It’s over 15.

It’s over 15 after significantly lowering not next quarter restaurants and keeping their yearly guidance but their year for the rest of the year significantly lowering those numbers.

So why is Macy’s higher? Because Macy’s was trading at a 52 week low heading into the quarter shares were down 45%.

They were $25 a share a few months early in February, they were 13.

So the risk was already priced in.

I’m not saying to go out and buy Macy’s, there’s other plays in our newsletter we like better than that.

But it is an example of how small caps have gotten crushed and a lot of ’em haven’t come back yet.

Many US still down 40% plus from their highs.

And the risk reward, even in its environment of slower growth is very compelling.

And for me, I recommend a small cap stock every month in my Curzio Venture Opportunity newsletter.

I always come up with a new idea, research a lot, I have to be honest with you.

Uh, it starts off with like, you know, you know, then maybe one or two ideas and I’ll pick one of those ideas.

That’s usually the way it goes.

I’m seeing dozens and dozens and dozens of ideas right now.

Things that make a lot of sense.

Things that companies would be like, oh my god, it sounds so crazy really because there was private equity companies trying to buy a specific company at double the price six months ago and that’s how far this come down.

And they own all their real estate for their stores.

And it’s not just a value play because you need some kind of growth cast.

There are growth callous you saw last quarter, last two quarters, they reported pretty solid results.

Not giving the name of that, it’s in one of our newsletters.

But many of these names are mispriced because everyone’s focusing on one sector.

It’s a large cap tech.

Now you see the smart investors, the big funds, they’re starting to sell tech again that says the latest Bank of America flow funds report they’ve been selling for the past couple weeks and allocating a portion of this, of their capital into small caps.

Notably believe it or not, into consumer discretionary.

It makes sense if you’re watching the markets, cruises, restaurants, hotels, EVs, places that we’re in in our newsletter In the other place.

I’m seeing a huge mispricing of assets.

It’s crypto heard me talk about crypto.

A lot of this podcast we actually tokenized our company offering equity stake to investors, which I think is a fascinating, fascinating thing that’s going to take off one day.

You’re looking at crypto and saying, Frank, this is the s*******t industry.

It was crushed 2022 terrible bankruptcies, fraud, regulatory issues where the SEC said we’re gonna regulate this for three years and just said we’re not gonna regulate it.

Now shut down a couple of banks, people think it’s dead in the US maybe the top 100 names in this space.

And there’s over 3000 that I’ve researched at least, at least over 2000 I should say really detailed over 1500 but others that I looked at.

And 90% of this industry is complete s**t I said that.

But man, that 10% and a lot of these big names, the technology and the innovation that’s coming outta them is incredible.

It’s incredible.

And this year Bitcoin, Ethereum doing fine up 50, But when you see all these problems and the fraud and the, I told you so and now you know the initiative between the government saying we’re not gonna regulate this kinda shutting down banks even though they did nothing fraudulently, nothing fraudulently.

Which is illegal by the way.

And they’re getting sued and they’re gonna lose that suit.

The government, yes, lost a similar suit couple years ago, Operation Choke Point, look it up.

But it led to a mass exodus in so many cryptos.

People were like, I’m outta this industry.

It sucks.

This is a good thing.

The junk is getting wiped out.

We see this over and over again.

A boom bus pattern throughout history.

Pick any sector, you’re gonna see what ai, you know, how much money it costs to implement ai.

I mean this money in Nvidia is coming from the biggest companies who have hundreds of billions to spend, right? And balance sheets and stuff.

Do you know how much money and how much money companies are going to lose on AI for many, many years before they get this? Right? It’s like data analytics.

You’re gonna lose a lot of money getting that right because 95% of your data is s**t.

It’s the 5% you have to learn to capture of how you could put AI on top of that and predict the future.

And trends have been following for decades, but the boom and bust is normal.

And after the bus what happens? Survivors usually go on to become industry leaders.

So those claiming crypto is dead, it’s gone.

It’s not.

We’re still in the very early innings.

BlackRock just filed to launch the first ever Bitcoin etf.

Other companies have done this and have not been successful.

They weren’t BlackRock.

BlackRock has over 10 trillion assets in the management and huge political influence.

This is a company that would not do this unless they were absolutely sure that it would get approved.

They wouldn’t waste their time.

They’re in everything that a large holder of almost every large cap stock, they wouldn’t waste their time.

And believe me, the political ties that they have now that you got rid of a lot of players in the industry, BlackRock all of a sudden now pretty amazing new crypto exchange launched this week.

US.

It’s backed by private equity giants, Citadel paradigm, massive equity funder in entire industry in crypto, fidelity and Schwab.

This week they launched with four cryptos, Bitcoin, Ethereum like Coin and Bitcoin cash.

Now to put this in perspective on why it’s a big deal, Schwab and Fidelity, last time I looked, they have a lot of clients.

Schwab has 34 million active brokerage accounts.

Fidelity has 37 million and both have trillions in assets under management.

So 70 million people will now have access to these cryptos, these four, many of them for the first time ever.

Cuz people have trouble.

It’s not the easiest thing.

It’s kind of easy on Coinbase to buy it, to buy cryptos, but it’s not the easiest thing to buy cryptos, I get it.

It’s gotten a lot easier, a lot easier over the past two, three years.

But now it’s gonna be really easy for 70 million people.

Again, like BlackRock, Citadel, fidelity, Schwab have close ties to politicians and regulatory authorities.

Believe me, when you’re working at the S E c, even if you move up the chain, you don’t make a lot of money.

You make a lot of money when you go in Goldman Sachs and then they give you There’s a reason why if you go back and look and look this up and you’ll see the top people that you see that left, they all work for major financial companies, the biggest in the world and they’re all getting paid a fortune.

That’s how the system is, that guys know when shit’s coming.

That’s why they have slush funds on the side whenever they get, okay, the government’s coming after ’em, we’re gonna have no fault and here’s 20 million, here’s 50 million, here’s 75 million, nobody even cares anymore.

And I’m not just talking about brokerage firms, the Goldman Sachs Morgan said they’re the biggest banks, JPMorgan, the fines constantly, Epstein constantly, all this stuff just goes away.

All these guys, big circle of trust.

These guys aren’t gonna launch something like this if they thought crypto would be banned in the US or if they believe crypto would not be a massive growth market in the US for decades to come.

It’s a trillion dollar market.

It got to 3 trillion, trillion, trillion dollar market.

I know we throw that number around a lot and we’re like Ah, it’s a trillion, it’s a trillion dollars.

I mean AI’s gonna take five to 10 years to get to a trillion dollar market.

EVs, I mean all these trends that we’re all hyping up and oh my god, this is great.

I mean before they become tr, crypto’s a trillion dollar market.

That’s how big it is.

The crypto offers incredible opportunities for investors cause so much of innovations taking place and it’s one area of the market where you invest in things like ai, the multiverse, the metaverse, whatever you wanna call this FinTech during the very early stages of growth.

And now when these things I p o at 40 times sales, most of the growth’s already priced in.

When you look at crypto, the apples, the Microsoft, the Amazons, the these, these names of crypto, they’re on sale right now.

These are the biggest names and I would suggest putting a little money into some of these big cryptos, whether it’s Bitcoin, Ethereum, and you can see how this news and this news is recent.

I’m not, yeah, picking this news.

Oh they’re, you know, BlackRock.

This is like the last week and a half, two weeks.

And you can see this news is driving Bitcoin sharply, sharply higher while the market’s coming down the past few days.

I mentioned last week that we have three newsletters that target these themes, which is rare.

Usually I’m like wow, small caps are great or shortening some of the large caps are great or crypto right now with three these three areas.

It’s what I’m doing personally with my money.

This is where I see the most opportunity over the next 12 to 24 months.

And let’s look at those three products.

The first one’s Moneyflow Trader, I mentioned a lot in this podcast.

Buys long dated puts be, he gets stocks and sectors, markets up sharply this year.

But where do you think it’s gonna be six to 12 months from now? Cause you really only need a 20% pullback in one of these names.

This is Genia Turanova’s product.

She’s amazing at this.

But you just need like a 20% pullback pretty much in the first six months, right? She’s usually like a a year put most of the time long day puts.

And you can make a lot of money easily more than double your money.

I mean during COVID, Genia had booked tons of a hundred percent winners.

She did again in 2022 when the markets fell sharply.

But now in this market where we’re seeing so many large cap names, trade at crazy valuations, seeing slower growth and we’re going to see slower growth, what the Fed ‘s doing.

It’s a product that can make you a lot of money in a short period of time while also protecting yourself.

It’s not a product that you invest all your money, all your capital in a product that maybe you invest three to 5% in your portfolio and people call it insurance.

And when you say insurance, oh it’s insurance, whatever that insurance book, 500% gains, 300% gains, and you’re buying these puts, you’re gonna lose money and you’re only gonna lose the money that you put in to the trade which limits your risk.

So it’s the opposite of shorting.

For example, I thought technology was overvalued in February.

Pretty dumb call buying long date puts on it and I got wrecked.

Now if I shorted the market and I got wrecked, I only lost the money I put into it.

Which wasn’t a big deal.

But if I shorted this market, I’d probably be divorced and sleeping on a park bench right now trying to broadcast someplace, use somebody’s studio.

So buying puts, it’s safer than shorting.

It’s a great strategy to bet against the market in sectors.

Cuz if it does happen that three to 5% could become easily 40, Thanks products, Curzio Venture Opportunities, this is a product I’m really excited about.

You’re seeing some of the names right now do very, very well.

So I flagship product the first we launched Curzio Research, but the opportunities I’m seeing are, are incredible from a risk reward standpoint.

We currently have seven stocks that are buys in our portfolio.

So several names start to move sniffly higher again, we we’ll part, you know, hotels and Norwegian Cruise Lines.

Uh, we have some of these names in that portfolio and we’ve had ’em before this recent move up.

So we’re doing very, very good.

We’re seeing a lot of money going small caps Kenny, these have just beaten up names that I’m looking at going like holy s**t, you just need, okay news and these things are gonna go up 20%.

This news also offers private placements, which you’re gonna see a lot of over the next 12 months is have great ties to the mining industry.

Took me a while to get on the inside of that industry.

And by the inside, meaning I’m not getting ideas fifth or sixth then using my newsletter to launch, do sec private placements right in your face to get the stock higher and then it crushes it and you crush your investors.

No, I’m talking about, I’m investing alongside the greats in this industry.

Again, it required a lot of work, a lot of being in the room at meetings, going to Vancouver, which is pretty far away from Florida if you don’t know four times a year.

But I think gold and silver, great bets over the next 12, 24 months and getting some of these private placements where you know they want to build, they wanna grow.

You have gold and silver ramp and higher right now a lot of these stocks have not really participated.

But these guys are also offering warrants, which is pretty cool.

These names do take off.

It’s almost like making double from your investment since you own warrants and it’s basically free money.

The stocks go higher, the warrants can exercise and you could sell ’em and a stock does not go high.

The warrants expire and you lose nothing from the warrants.

You have to be an credit investor and invest in most of these private places.

But you don’t have to be an accredited investor to subscribe to Curzio Venture.

90%, You could buy major exchanges.

It’s very easy.

We explain all that to you.

And then we have Crypto Intelligence, which has become one of my favorite newsletters because I’ve never learned so much in a three to four year period.

Learning these technologies, the fact that these guys don’t know how to talk, on below, I don’t even know what level.

I mean usually we try to write in in sixth, seventh grade level, you know, small sentences.

Try to make people understand things, right? You increase your total address of market.

The more people like understand in this market, holy cow learning these technologies and the way they write, it’s, I gotta read this stuff two, three times but it’s an incredible newsletter.

The one time, the average position, the average position, if I had to guess maybe like 12 to 15 names, it was up over 600%.

The average position in 2022, we got crushed and the best names fell 77 plus.

We’ll come back a little bit this year, but I could honestly say from crypto, I made the most money in my life.

Investing in this sector, it offers you one of the best risk returns in any asset class I could think of.

Is it risky? Yes, but it deserves a small allocation of your speculative capital because the gains that you could see could be life-changing.

Even for me, most are responsible for me building my own house.

Which again, I always say this, I don’t apologize for working my ass off nowadays.

You have to apologize.

I’m sorry I didn’t mean to No, but a lot of was due to crypto.

And you think about the bull market post COVID.

SPACs became super hot.

You take the best performing SPACs, say Lucid or even Virgin Galactic.

These names went from $10, which a SPAC user comes out with and they went to 50, around 50 ish I would say at the highs.

That’s Forex returns.

That’s amazing.

That’s great.

I mean forget the fact that these are b******t companies that are all trading low single digits right now.

But say if you bought when it went public at 10 sold near the top, that’s 4X returns again.

Pretty cool.

We had several names up 10 x one name up 40 x, not like one name or two names.

It’s like four or five names like this.

I’ve seen things in this industry go 50 to a hundred x and it’s not cherry picking a name here.

Cherry picking a name there.

Again, the risk, same risk with stocks, right? You could lose your money.

What you put in stocks.

We limit our positions sizes try to limit the risk.

The most you could lose most of the time is, is 6%.

We might go 8%, you know, very rare.

But these are gains you can’t get in the stock market anymore and everyone should speculate.

So I’m not saying throw all your money in this sector, but when you’re looking at the valuations of the companies that come out in the stock market where they IPO at or SPACs, which is pretty much a dead market.

I mean you’re looking at names where you just can’t capture the growth.

Most of the growth’s already priced in.

But crypto the best names, the most quality names, the best innovations that are run well that should have no problem in terms of regulation.

These names offer incredible opportunity.

And now these are names that 70 million people trillions in assets we now have access to, again, some of ’em for the very first time.

But crypto is definitely worth a small allocation of your speculative capital.

It’s worth it.

The gains could be that great.

The gains that you can’t see in the stock market, you could see here, is it risky? Yes.

But for me and going through these and being very careful from a risk reward standpoint, crypto right now I think offers an unbelievable opportunity for investors, especially the next 12 to 24 months.

So now last week I said they were discounting these three premium services significantly.

As I explain, I see a lot of opportunities in these products over the next 12 months.

Usually you don’t see ’em all products.

So I usually sell these things for $5,000.

That’s their retail value.

Sometimes we discount them, we’ve never sold them at a thousand dollars.

Each one of these products are gonna be offered for a thousand dollars for the next 12 months.

So I’m sending you offer next week, very early next week, go to everyone on our mailing list.

If you’re not on mail list, you can go to Curzioresearch.com, scroll down the middle of the page, put your email in the box.

We’re not gonna send you a million emails.

We send a ton of free content to show you what you’re all about, especially if you’re new clients.

Send you our best offers.

Sometimes we’re not flooding your email box, but the thousand dollars, it’s a one-time offer.

We never discount our premium service by this much.

It’s like not gonna happen again.

But with this offer, and I talked to my team about it, I want to offer something else to the first hundred people who subscribe.

By the way, we have over a hundred thousand people on a list for the first hundred people who subscribed any of these products.

You’ll get the opportunity to talk to me directly for 10 minutes, Which I think is pretty cool.

And my time, just like your time is precious, it’s valuable, it’s very valuable.

But on this call, you can ask me anything.

I can share with you what I’m doing personally with my money, how I’m using these products.

Tell me your concerns.

Anything, of course, you know, I can’t get personal investment advice when you sign up, it’s gonna take you to a calendar and pick a time slot early would probably be better this way I could, again probably gonna do it over the next three weeks or so.

We figured it all this out, the time and everything.

And you don’t have to pick a certain product before the call.

You can talk to me first.

You can select the product, multiple products after our call since you may have questions saying which one’s the best product for me? I may say, hey, this one is, or these two are whatever.

But something different probably won’t see being offered anywhere in our industry with a guy whose name on the door is gonna talk to you personally based on the amount of questions we’re getting through this podcast.

Plus the really great conversations in the friendships that, I formed with many of my listeners who invested in our company.

I mean that was a $25,000 minimum.

And I said, I wanna talk to everybody before they invested it.

Even I had talked to people before they invested in Curzio One as well.

So I wanna make sure the product’s right for you.

I have turned people away.

It’s very, very high price.

You get all products you know, now and forever, right? For the one price with just a small maintenance fee.

But just the conversations I had with with with business owners, doctors, executives, hedge fund managers, just even young investors, entrepreneurs.

I, I mean in terms of network, it’s incredible.

So talk to many of these people several times a year.

So I think it’s gonna be pretty cool.

We’ll see.

Again, it’s going out to over a hundred thousand people so you can do the math on that, but you’re gonna see a special offer next week.

Only because the opportunities I’m seeing across all three of these products are really, really great.

And again, if I don’t show you gains, you can run and cancel.

We’re independent and we have to show you gains.

We don’t get paid by companies or recommend, but right now the ideas I’m seeing these news are really incredible.

I know subscribing, you’re probably gonna become a client of ours for a very, very long time.

Cause there’s just lots and lots of ideas that I’m seeing.

Some I think gonna go higher and some I think could go significantly lower.

And Junior’s gonna help you out with that part.

Moneyflow Trader.

So again, first a hundred people to subscribe, be set up a 10 minute call with me.

Be pretty easy to set up.

See a calendar with open time.

Just put your name in there and you’re good.

So show you, check your email early next week.

And that’s it for me.

For Wall Street Unplugged Premium subscribers, I will see you tomorrow with the one and only Daniel Creech, who’s back finally from vacation.

The breakdown, two amazing reports.

Seriously, one from Bank of America that I talked about.

The Flow report, it was really amazing.

Lots of details on this thing.

Uh, and one by Morgan Stanley, which is Mike Wilson.

Uh, Bank of America is super bullish, right on certain trends that are happening.

And, and Morgan Stanley, Mike Wilson is, is pretty bearish.

So both make a great case.

That’s the type of market we’re in right to support their thesis.

But Daniel and I gonna pick it apart and tell you the parts of these research reports you should pay close attention to which ones you should ignore.

And we’re also gonna recommend a new stock.

Actually, actually, I don’t think I should call it a stock, a new idea.

Hint, hint, we believe has incredible upside based on several catalysts that just came to fruition this week.

Should be able to figure out what sector we’re going to.

But I’ll see you then.

Take care.

Announcer: Wall Street Unplugged is produced by Curzio Research, one of the most respected financial media companies in the industry. The information presented on Wall Street Unplugged is the opinion of its host and guests. You should not base your investment decisions solely on this broadcast. Remember, it’s your money, and your responsibility.

What’s really moving these markets?
Get free daily updates
Episodes about Digital Assets

Buy this ‘Mag 7’ stock right now

The market is ignoring some major risks… Which "Magnificent 7" stock is a buy right now … Company fundamentals finally matter again… Frank's shocking take on Disney (DIS) ahead of its quarterly report… And the Bitcoin 'Super Halving.'

This tech giant is a screaming buy

Why Microsoft (MSFT), Alphabet (GOOG), and AMD (AMD) are down after earnings—and which stock to buy on the pullback… Why Elon Musk deserves his massive pay package… And the next crypto catalyst could mean 10,000%-plus gains.

How crypto changed my life

The paradigm shift taking place across the crypto space right now… These major catalysts will send Bitcoin shooting higher… And why stocks can't compete with crypto's upside. Plus, this stock is a screaming buy following FedEx's ugly earnings report.

Debunking Elizabeth Warren’s crypto lies

What to expect from the market after today's Fed announcement… How Netflix's latest move will shake up the streaming industry… Elizabeth Warren's crypto hypocrisy… And how to sign up for our can't-miss LIVE event. Plus, Zelenskyy's terrible photo op.

More Wall Street Unplugged

AI will lead to an earnings explosion

In today's episode: A recent Billy Joel concert experience… AI is booming, providing efficiencies, and disrupting industries… Get in now. Crypto—and our portfolios—are on fire… Bitcoin crosses over $60,000… And MicroStrategy buys more Bitcoin…

AI… bubble or disruptor?

Is AI a bubble or a disruptor? What to expect after NVIDIA's (NVDA) earnings report. And stock volatility, despite solid earnings, signals an extremely dangerous market.

Tesla

How to trade Tesla

Netflix's (NFLX) blowout results—and why the company remains the undisputed king of streaming… What to expect from Tesla's (TSLA) latest quarter—and how to trade the stock… And why you MUST prepare for a major pullback.

CES 2024

The good, the bad, and the sexy from CES 2024

The best and worst tech from CES 2024… A first for sex tech at the Consumer Electronics Show… How VR/AR will change entertainment forever… And which companies have an early lead in the artificial intelligence (AI) space.

Apple is flashing major warning signs

What to expect from the "Magnificent 7" in 2024… The biggest risks to the market... Why you need to be extremely wary of Apple (AAPL)… And the left-for-dead sector poised to soar this year.

2024 will be a banner year for crypto

The catalysts driving crypto higher… Why this bull market has a long way to go… And how crypto gives investors the chance at 10,000% gains. Plus, how to reserve your FREE spot for Crypto 2024 LIVE.