Frank Curzio
By Frank CurzioSeptember 27, 2022

A simple way to make a killing from a market crash

inflation stocks
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What’s behind today’s market action… Where I agree—and disagree—with Cathie Wood’s CNBC interview… How major companies from Walmart to Ford are entering the metaverse (and you can, too)… Why October could be a terrible month for stocks… And the best way to protect yourself—and make a fortune—during a market crash.

Inside this episode:
  • What’s behind today’s market action [0:30]
  • Cathie Wood is right on inflation—but wrong about accredited investors [8:15]
  • How major retailers are entering the metaverse [15:46]
  • Prepare for an awful October for stocks [20:40]
  • How to make a fortune in this market [29:46]
Transcript

Wall Street Unplugged | 951

A simple way to make a killing from a market crash

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: What’s going on out there? It’s Tuesday, September 27th. I’m Frank Curzio, host of the Wall Street Unplugged podcast, where I break down the headlines and tell you what’s really moving these markets. It’s been terrible, the markets. Last week was horrible. Monday as well, a little bit before that. It’s getting wrecked. It’s nice to walk in and see the markets up about 2,300 points on the DOW today, around 1% across the board. It’s nice to see green sometimes. There’s a reason for that, especially for today, where you’re seeing a lot of people starting to come out, not a lot, but big names are coming out saying, “Listen, the Fed’s getting a little crazy here. They’re getting nuts with these 75 base point hikes.” I mean, it’s not just one, it’s not just two, it’s not just three. It’s probably going to be four now in a row, which is insane. We’ve never seen that. We’ve never seen at this level. I mean, you can say 40 years, in the ’80s, I mean, we brought the Fed fund’s rate, we increased it, we doubled it. Right?

Frank Curzio: Now, we’re coming from zero, which is unprecedented all the way through four and a quarter by year-end, which is expected. We’re seeing mortgage rates starting to push 7% now. It’s getting scary because you’re starting to hear from the businesses, starting to hear from the sectors.

Frank Curzio: Chicago Federal Reserve president, Charles Evans, said he’s nervous about the Fed going too far too fast. I don’t think there’s another Fed member that I’ve seen that wasn’t 100%. We don’t see any signs of inflation with moderating, going all in. I don’t care how much pain you see. I mean, this is the first Fed member, non-voting, so not that it matters, but it’s making the headlines. He is nervous, meaning that with the Fed raising rates by 75 basis points, and three consecutive meetings about to raise by another a hundred basis points by year-end, he’s saying it could be very dangerous, given that we’re not allowing the time to pass through from these current massive rate increases. We need them to filter through the system, and we’re not even giving them a chance because it’s every meeting.

Frank Curzio: It’s almost every single month. 75 basis point hike, 75 basis points. I mean, 25 basis point hike filters through the system. It takes three, six, sometimes nine months. We haven’t even seen the last 75 basis points, maybe even the one before that. It’s getting scary now because you’re saying, “Well, we’re not in a recession, everything’s going to be fine.”

Frank Curzio: I don’t know if you saw globally what’s going on; the dollar is going through the roof, the whole world’s investing in the dollar expecting a crash that’s coming, but the Fed’s just ignoring it. Which is interesting because not too long ago, a year ago, they were saying with zero percent interest rates and buying bonds, that inflation’s transitory. Now, you’re raising rates by the fastest you’ve ever, and you said there’s no way, now no way, it’s going to be transitory. You have Mohamed El-Erian has a similar take and has really been going off on the Fed since last year, saying they lost total credibility when it comes to inflation, when it’s transitory, transitory, transitory, when we were at 5% last year. Remember, if we look at the inflation rate, which is based on CPI, which the Fed looks at, since 1992 on an annual basis, we never hit, never saw a CPI hit over 4%. I mean, didn’t hit 4%. We’re at 5% and they were like, “Hey, it’s transitory. Nothing to see here, nothing to worry about.”

Frank Curzio: Again, now they’re raising rates by 75 basis points at each meeting like it’s absolutely normal. This is perfectly normal. But you need to wait to see the impact of what’s going on because it’s significantly impacting the markets, and it’s happening so fast. It’s incredible. If you listen to the companies throughout each sector and look at housing at a standstill… The recent price index from SMPK Schiller said home prices are falling at its fastest pace in history, in July. Granted, it showed that home prices are up 16% year-over-year, which is insane, and I get it, even more insane if you break down those details. Tampa and Miami, up 31% year-over-year, home prices. Yes, they’re going to fall, but they fell what, 3%, 4%? This data is July. It’s not August, it’s July. Wait until you see the data from August when mortgage rates were around 5%. They’re pushing 7… They’re pushing 7%. They’re 6.8% right now. You’re going to see home prices fall at least 15% from these levels over the next few months, or at least by years-end.

Frank Curzio: Who’s buying houses? I mean, you shut off the loan market. If you have cash, yes. If you live in Florida and Texas, yes. You’re going to see demand still and prices remain relatively high, but he essentially shut off the housing market, all the growth that’s involved with it, within six months. Unprecedented. Retailers, out of nowhere, sitting on massive inventories when they’ve seen these supply chain concerns. Massive demand, we got to get everything up and running, get everything. Stores are full. All a sudden, demand shut off like a second.

Frank Curzio: Have you seen the chip sector lately? Went from massive, unbelievable demand, where we need to build fat plants everywhere, which costs probably 4 billion or more to build these massive plants, which take a year at least, two, three years, some of them to build. It’s a massive process. Now all of a sudden, in a blink of an eye, they have gluts. Many of these companies. But this is what happens when you raise rates this fast without pausing at all just to see, “Hey, let’s take a step back just to see what’s going on.” You get massive shocks to the system, where inflation is going to quickly turn into deflation while you’re raising rates.

Frank Curzio: Just think about it. The Fed truly believes, and they do… They believe that keeping rates over four and a quarter percent for all 2023 is not going to cause a massive recession. They’re expecting 5% growth second half next year. How is that possible with rates over 4%, the housing market, interest rates, mortgage rates, 7, 8%. How is that possible? How are you expecting that? Where is it coming from?

Frank Curzio: I mean, this is a massive recession, close to a depression, but you’re looking at these guys like, “What are you doing here?” I get it. You were wrong. All right. I don’t want to talk about the past, and it’s so easy to just shit on the Fed. Everybody does it. But right now, we’re talking about right now, you need to sit back and wait because you’re seeing demand destruction across the board almost across every single industry. It’s happening immediately. This morning, Cathy Williams on Squawk Box, always controversial. I love her. She’s always bullish no matter what. Innovation, innovation, innovation, bullish, bullish, bullish. Well, innovation works when you have a great market. But she was saying the Fed is going to have a major pivot to an easier policy. It’s going to happen soon. Just, the US economy’s in a recession. I agree. She thinks inflation is peak, which I agree. The market should be discounting to peak in interest rates, and she would not be surprised to see deflation over the next six months.

Frank Curzio: Regardless of what you think of her, she is on the frontlines when it comes to the biggest, most innovative companies. She’s seeing this because she also went on CVC to announce that she’s launching a new venture fund with Andreessen Horowitz, and I forgot the other firm, raising money, where they’re going to give non-accredited investors a chance to invest in private, innovative companies. And she said something that was disturbing to me. She came out and said, when it comes to accredited investors, that people who are not accredited investors and the younger generation are much, much smarter than these accredited investors, when it comes to innovation, because they are fully engulfed in these trends. She has a point; if you look at a lot of these accredited investors, they are older investors, probably don’t really know too much about Bitcoin, Roblox, real late to Tesla, EVs, and things like that.

Frank Curzio: So, I could see the point she’s trying to make. Okay, I agree with that. The only generation, holy cow. But they’re not smarter than accredited investors when it comes to knowing how a deal is structured. And that’s important, that’s significant. You can say, well, some accredited investors don’t, but a lot of incredible investors… You got there, you got your head handed to you, right? You got the shit kicked out of you a couple times, and you realize, wow, okay, these guys are raising money, and they’re doing it at $3, and they’re going to go public at 5, 6, $7, and I’m getting in at 3, and the person who’s doing it just said they’re going to invest a whole bunch of money into the deal, or are already in it. They’re going to invest another million dollars. What you don’t know is, they invested $20,000 and got 5, 6, 7 million shares at a penny.

Frank Curzio: So yeah, it’s nice to say, okay, we’re investing a lot more in the next round, but at $3, you really have to look at valuations to see if it’s a bargain or not, because the people coming in at 3, that’s fine. But a lot of these people are in under a dollar who are going to be selling the out of this as soon as it opens to 5, and pushing it down to 3, and they’re going to be selling at 3 and 2 because they’re at a dollar. When you were able to get in at 3, that’s what we saw at SPACs. I mean, look at Chamath and Branson, they marketed Virgin Galactic. I mean, it’s not a terrible company, Virgin Galactic. It’s innovative, it’s cool. Valuation came out, it was insane. And that can only happen when you have an easy money policy. You have a bunch of idiots saying, “Oh my God, I want to invest alongside these guys,” when you don’t realize they didn’t buy, they didn’t just put millions into this stock.

Frank Curzio: It was… I said, broke down the stats. I think it was last week, or the week before, with Chamath. You spend like $25,000 buying millions of shares at 0.001, whatever. Then you got all these SPACs and pipe deals once they announced and saying, “Oh okay, well it’s going to come out 10, we’re going to raise even more money, and we’re going to give these guys stock at a $1.50, and warrants at $2.50, and it’s coming out at 10.” Meaning, when you see pressure on these things, it’s 7, 6, 5. You’re like, who’s selling? These guys are making a fortune while you bought it… I mean, especially when it comes to the average investor. When it comes to Virgin Galactic, you’re buying 15, 20, 30, while these guys are pumping the shit out of this. Chamath and Branson were pumping the crap out of this thing. Why? So they could dump it, make hundreds of millions of dollars, could new…

Frank Curzio: Because I talked to a lot of these innovative, young people right now, especially with the amount of money we invest in the metaverse and what we’re doing with within DeFi, metaverse, NFTs, and what we’re building here. And they are brilliant, but they’re coming to us because they have no idea how to structure a company. They have no idea. I used to think they were creating these tokens on purpose or ripping people off. They just don’t know. I’m like, stop ripping off your early investors. Create a real utility, create some kind of demand.

Frank Curzio: Well, these investors are going to benefit because when they benefit, and if you sell this company, they do well. They’re going to be with you for life. That’s how I built my credibility over the last 30 years. But they don’t know better. They don’t understand that issuing a billion tokens, and you have no demand and no utility feature, and all you’re going to have is sellers unless you’re pumping it through some kind of social media channel, which is Discord and Telegram these days. But it is interesting because yes, it’s nice for individual investors to be open to these ideas, but they need someone there to say, hey, you know what? I mean, who knows where Cathie Wood is getting in at? Is she getting in really, really early and doing a second round or a third round? Because she’s investing a lot of these companies where even though they’re down 60, 70%, Cathie Wood made a fortune on these because she was in very, very early.

Frank Curzio: And yet, she could say, well she’s down 45, 50, 60% on some of these names. That’s from the highs. But she was investing, I mean, look at all the names she invested in during the very early, early rounds, how you make a fortune. But I tell you, she did say something interesting about Bitcoin, that Bitcoin is going to reach 500,000 within the next five years. 500,000. It’s 20,000 right now, over 20,000. And notice how it’s been maintaining these levels. I mean, it’s 18 to 20, 21, 22, around there. But over the past, what, month, month and a half, went while stocks tanked may find that interesting.

Frank Curzio: How come gold’s not seeing that bid? Well, the dollar’s going up, but the dollar’s not impacting Bitcoin as much as it goes higher as it is with gold. You run into the exits. It’s hard to invest in gold when a two-year is yielding more than 4%. Why is gold sticking at the two-year? Why is Bitcoin different? Are you seeing it, the couple itself from the market for the first time in a while, but it’s been happening again. Maybe it’s interesting, saying, “Wow, how’s Bitcoin holding up here?” It’s not that interesting. If you do the math, if you look at the trillions that are going to have access to Bitcoin, to Ethereum, to some of the big names… Look at Ripple surging.

Frank Curzio: And I’m going to keep it running. So basically, what that is, is the emergency alert. Because I am in Florida, we’re getting a hurricane, so I’m going to keep that in here. Usually, we pull it out and say, “Oh no, what happened?” I have my phone on mute too and that still comes through. But we are experiencing a hurricane. Not going to be bad, too bad on our end. But yes, Tampa’s supposed to get nailed. So, we’ll be reporting about that even tomorrow when it really hits. But yes, they’re warning and going crazy. And again, people are worried, not really on our coastline, but the other coastline. But that’s another topic, hot topic that we’re going to be talking about tomorrow. But getting back to Cathie Woods with Bitcoin, 500, it’s 20,000, 500,000. I mean, you could say a hundred thousand, right? Even that would be a bold forecast.

Frank Curzio: But you’re seeing the access to the institutions, and these institutions are having going to give their clients access to Bitcoin for the first time ever. Like the Fidelitys, Charles Schwab, BlackRock. Don’t take my word for it. Look for how much these guys, in terms of assets they have under management, even from 4 trillion to 20 trillion. Trillion, trillion, trillion. Even if 1% comes in, you’re looking at Bitcoin tripling from here. What is it? 300, $400 billion market cap, under 400 billion right now. They’re going to have access to some of the biggest names, but this is where the money is flowing into even, in this market. That’s why they’re raising money in so many of these funds. NFTs, DeFi, Metaverse.

Frank Curzio: You see Walmart. Walmart came out, what, recently, a couple days ago, entering the Metaverse and signing a deal with Roblox, going to create two metaverse experiences. One’s called Walmart Land, and the other is The Universe of Play. And the second one’s going to be a virtual GLE platform, right? Where they play video, kind of like video games and give away certain things, get a blip that drops toys and music festivals. They already announce a big concert with three major artists, virtual stores, merchandise, but to understanding how big the metaverse is. And 80% of the people who go there buy something. They… All the retailers are going into this space, but they’re targeting what, Gen Z, 25 or younger. Millennials under 40. Look at Roblox, 52 million daily active users. They want that audience. That’s incredible.

Frank Curzio: Hadean is a company spelled H A D E A N. It’s a web3 metaverse company using computing to scale virtual and metaverse worlds. They just raised 30 million in a blink of an eye. This is over the weekend, 30 million. Who are they back by? Epic and Tencent, two of the biggest in terms of gaming. You’re seeing money continue to flow into this area. This is where the world is going, this is where the innovation is going. You’re going to continue to see money pour into these sectors. I’m just amazed by the amount of money, especially giving these current mark conditions.

Frank Curzio: Ford, now in the last week, they’re entering the metaverse and NFTs. They file for 19 trademark patents. They’re creating this open platform, not a closed platform like what you see on ROBLOX. Where ROBLOX makes the money, Walmart makes the money, No Ford. I like what they’re doing here. It’s an open platform where any developer can build a car, use digital artwork, who would likely share profits with Ford. But this is what an open metaverse is all about. It’s unleashing talent around the world, not just the talent from developers you have under your own umbrella. You have tons of amazing developers out there. They’re going to be able to take advantage of this opportunity. That’s what the open metaverse is about.

Frank Curzio: Instead of getting locked down with a company and making $300,000 a year, where you are generating $25 million in profits for companies based on your ideas, now you go to these companies or create through their website, and Ford’s going to share probably a large percent of the profits with you, and you’re going to have ownership of a lot of this stuff. It benefits Ford. If someone comes up with innovation for a car that looks absolutely amazing, and it’s going to sell 5 million units of this car based on the design from someone else, they would do that in a heartbeat. They give someone 5, $10 million. So in a heartbeat, it’s going to sell billions of dollars in this car. Makes sense. Benefits forward benefits of developers. Be independent. That’s what the open metaverse is.

Frank Curzio: It’s unleashing talent around the world and these developers, where again, it’s not just in-house people, it’s the world that’s creating, that’s innovating. That’s the future. That’s where this is going. And of course, it’s the data aspect. Well, you don’t have to share all your data, or you’re not sharing it. They’re stealing it from you and making money off of you. And that’s the model, right? Google, Facebook, I think that’s the model. You have to use these sites for free, but they steal everything from you and give it to third parties that could email you, call you. I mean, I can’t tell you how many people call me. At least three or four people call me. They know where I live, what I want. They’re like, “Oh if your house’s for sale, we could sell it,” even if they didn’t even know me. I’m getting three calls a day from people. All these lists. Where do you think they’re getting this information from?

Frank Curzio: That’s why the largest companies in the world are investing so much at the biggest investor. Billions and billions and tens of billions of dollars into the metaverse. This is where it’s going. People are sick of getting their data stolen; the open metaverse is what it’s about. Ford sees it, get Walmart’s testing. You get to see Roblox benefit tremendously because they’re testing. Plus, they get 50 million daily active users. So, everyone’s going to be testing on those platforms.

Frank Curzio: Nike World’s built on Roblox as well. See if people purchasing stuff, and Roblox going to have an advertising model pretty soon now, they just sell different products and sell different things and skin stuff like that through their site. But that’s a testing ground for Roblox. And then at Roblox, then they’re going to realize, wow, let’s go. They’re going to do what Ford does. Let’s open this up. Let’s see if anyone else outside our company has ideas of how we can grow, and we’ll pay them for it. It could be some kid in a small town in India that nobody knows about. They’re going to come up with a great solution for a major problem that Walmart has, and you’d never have access to that person unless you had an open platform, an open metaverse.

Frank Curzio: With that said and those ideas, when it comes to equities, you have to be careful, you guys, especially in October, and it’s not because it’s where we see all the crashes happen. It’s true. We just broke through the lows, and yes, we’re up a little bit today, but we’re in dangerous, dangerous territory, and you have people going to see statements for the first time, and they’re not going to be happy. At the end of this month, they’re not going to be happy. Yes, a lot of us have access to online, we see our… But some of them, a lot of retirees that don’t have working power of watching that home price start to decline again. It’s still up a lot, but hey, my home price is coming down, now my portfolio is coming down considerably, down 20% plus, likely across the board, and really just got hit in September.

Frank Curzio: What are you going to do? They’re going to be like, wow, all right, I’m going to go to cash or buy a two-year and generate 4%. Not bad. Also, if you look at mutual funds, mutual funds have until October 31st to lock in capital gains. Of course, it’s not going to be capital gains, it’s going to be losses that they’re sitting on. So, that’s for tax purposes. Individuals have until the end of the year; mutual funds have until October 31st. It makes sense for them to be selling like crazy because they’re sitting on massive, massive losses, many of these people. You can offset your gains, which is for selling. You can see lots and lots of selling, and probably selling at the lows. So, if you think something’s down 25% is trading at a 9PE, and it’s growing those earnings by 10%, you’re like, this is a great deal. Be patient, wait because you’re going to get a better deal. This is going to happen throughout October, especially with funds. Who was it? 90% are underperforming, and underperforming significantly.

Frank Curzio: And this is going on during earnings season, where many companies are going to be lowering or removing their guidance like FedEx did. Since every sector one-by-one is going to experience with the housing market… The chip sector has just experienced. Massive demand and out of nowhere within a month, month-and-a-half, two months, it shuts off. Demand destruction. That’s what happens when you raise rates at this pace, this fast, as quickly. And while you’re seeing this massive destruction in demand, consumers closing their wallets, what’s happening? People are flooding into the dollar, which is up like 20%, where every 2% move higher in a dollar usually results in a 1% decline, or it’s a headwind earnings through 20%, the dollar. So, you’re going to add 10% hit earnings. If you’re looking at the analyst, which is what I do, Daniel does, we look at this, we look at earnings.

Frank Curzio: See, they’re not lowering, they’re lowering… They’re not lowering fast enough, and that’s why you’re going to see so many of these companies say, “We’re moving guidance because you’re going to be able to get away with it.” FedEx warned, you’re going to see other companies warn, say we need to wait and see because we really don’t believe that. I mean, our earnings just got destroyed. We’re seeing demand come down for most companies throughout most sectors, and yet, we’re watching the Fed tell us that they’re going to considerably raise rates further and keep them that high through 2023, into 2024 for a full year. If you’re a company and you really believe that the Fed’s going to do that, which you should because that’s exactly what they said, and they reiterated from Jackson Hole again last meeting, and it keeps saying they’re going to do it. How do you offer guidance if you’re in the housing market? How do you offer guidance?

Frank Curzio: When everything’s getting turned off, and you just went from 3 percentage straight in January to close to 7%, and probably going higher… How do you order your supplies? How do you build houses? Yes, you have the current contracts under a negative, fulfills requirements for many of these places, and yes, you still have a supply problem, where there’s not a lot of supply for homes. But even in the chip sector, we are sitting on this massive glut.

Frank Curzio: Now, where’s the demand going to come from? All these auto companies, are they… Are these people who put down $500 for a new EV that you were supposed to get a year ago, and you did this two years ago. Now you just realize that EV you’re going to purchase is 35, 40% higher than what you were going to purchase it for. Are you going to pull that now and say, “You know what? Let me just buy like this gas vehicle instead of buying a brand new first generation car that you… It’s going to get recalled at least five times.” Because all these guys never built an EV in their lives outside of Tesla and scaled it.

Frank Curzio: You’re going to see it. You’re seeing it now. I mean, for the EV, almost all the EVs that have been released have been recalled. That happens all the time, but even more because you know the battery technology, you’re going to replace the battery, whatever. Seeing lots of recalls, going to run into lots of problems. They’re trying to get these things to market so fast. I haven’t been able to test them as they normally test them. We’ll see.

Frank Curzio: So, the good news, the good news here is, stay patient. Once the Fed stops raising rates, which by the way, we’ve never seen the equity markets bottom, as the Fed is raising rates during a tightening cycle, it almost never happens. You usually need to see interest rates top out, and they haven’t topped out; they’re still going higher. Maybe a little bit lower today because the market’s going up. But still, the trend is higher. We haven’t seen it. It never happens, never happens. It’s not going to happen this time.

Frank Curzio: For you to just randomly say, “Wow, I like this stock. I like that stock. It makes sense to buy this.” Be careful. It doesn’t even matter what stock. And I thought Costco’s numbers were really good. Yes, subscriptions came in a tiny bit light, but it was 17% growth… I believe it was in sales, 11% in earnings, if I’m not mistaken. The stock was already down over 20% from its highs, and it got nailed on that news. Was it a fantastic quarter? No. But it was pretty good. I guarantee that quota is going to be better than 90% of the companies that are going to report going forward over the next month, month-and-a-half. But look out.

Frank Curzio: So, we are going to have incredible buying, up to you, but you need to be patient, and for now, focus on some of the few things that are working. Bitcoin is working, innovation within NFTs, and the metaverse is working. You see more and more companies become purer plays on that. Not just a small portion of it. Like, Roblox is a great play. I mean, it’s down 70%, they’re still growing and still signing up tons of customers. But at 30 bucks, 30 something, I mean, seems like a steal down here.

Frank Curzio: Uranium. Uranium is not going away. I mean, that demand, even if prices come down and we see what we’re doing with strategic oil reserves, I know… President’s doing, keeping all the prices low into the election season. I get it. Makes sense. I know why he’s doing it; everyone knows why he’s doing it. But it’s… If you’re looking at what happened to these companies, what happened in Europe, they’re never going to make sure for the next 30 years, they’re never in a position like this, where one country like Russia could just pull 40% of your energy, and you’re just stuck on an island going, “Holy shit, what do I do?”

Frank Curzio: You’re sitting there with one of the best options in the world. Safest, cleanest, 24-hour base load power available. That means all day, all night. Not when the wind blows, not when the sun comes out. And you’re seeing in Europe, I mean, they’re going back to coal, right? Germany’s going back to coal. Major European nations going back to coal. It’s not a surprise. These climate changes don’t care, but people are going to die unless they get heat in the winter, and they’re in a lot of trouble over there. It’s bad. Nuclear is the option, and uranium. So, I’m interviewing Amir Adnani on Thursday, he’s a president, CEO, co-founder of Uranium Energy, and it’s going to be on Thursday. Great, great conversation, make sure you listen. But that’s an area that stocks have been volatile, well off their lows, or pull back from their highs. But wow, I think this a great market. Governments supporting it now. Our government supporting it now makes a lot of sense.

Frank Curzio: But let’s see when it comes to the market, let’s see how much some these stocks sectors sell off because even biotech looks incredibly attractive, looking at names that are trading at or below net cash… If you look at Biotech, there’s a market that peaked in September, 2021. So a year ago, the four, five months before the overall equity market peaked, and these things have gotten destroyed. 70, 80%, 80% plus good names that are actually generating revenue. That’s a great opportunity. That market’s probably going to come back a lot quicker. I still think it’s probably 20, 25% off of its lows, which isn’t really saying that much because it went down so much. But great opportunities there. But overall, going into next month, guys, follow you stops. You have to play defense buy puts, which Genia Turanova has been doing in our Moneyflow Trader newsletter. She just booked another triple digit winner, which bought the February 2023, put on EZU, which is the Eurozone ETF that tracks large and midcap stocks within Europe.

Frank Curzio: So basically, she’s betting against European equities. So get this, she bought this put last month and just closed out for 150% gain. And basically, we’re doing this over and over and over again for the past 10 months, while the equity markets have been absolutely crashing, and buying puts is not shorting. You don’t have that unlimited risk, which you have to worry about, the only risk and amount of money you put up to buy that put. Moneyflow Trader, if I had a the best, is probably the best financial newsletter this year. I mean, nobody’s even close. Very proud to have this product under our umbrella. I’ll be doing a special interview with Genia to get some of her favorite ideas going forward. What you do is behind our pay wall for existing subscribers, all existing subscribers interested in Moneyflow Trader and trying it out for three months, send me an email, frank@curzioresearch.com.

Frank Curzio: You need to learn to protect yourself. If you’re not interested, you think, “Oh Frank selling something or whatever.” This is something I’ve been pushing as soon as the Fed pivoted in November. So, it’s a fundamental change in the market, and forget that; this is protecting yourself, or hedging. This is how you make a fortune when the markets crash. You agreed meters should be going through the roof because you’re able to generate these returns while the market is coming down. You’re going to be sitting on massive cash, especially through October, because this market is incredibly overvalued. It’s either going to fall a ton in October, or fall a lot over the next few months as the Fed continues to raise rates. It’s going to be a very difficult market. But if you look past, if you look, man, the last 10, 12 years, if you look at these market crashes, they happen quickly.

Frank Curzio: They happen fast, and then you see the markets rebound. Now it’s different because the Fed’s raising rates, but the Fed cannot continue to raise rates and keep them well over 4% for longer than three to six months, even three months. And you’re going to see it. You need to take a step back and wash the monthly data. Forget about the CPI since it’s fixed, and use shelter as 30% of that component. We saw inflation last month with energy prices crashing. Think about that. That’s how much you’re looking at rentals and shelter accounts for the CPI. Stop looking at that because that’s not going down anytime soon. Listen to the companies, listen to what they’re telling you because we’re looking at two rate hikes, two 75 basis point rate hikes, and another one coming. The last two are not factored into the market yet, and you’re seeing it sector-by-sector.

Frank Curzio: Shut off. Demand destruction, be very, very careful. It’s going to get worse before it gets better. We broke through the lows. It’s not a good sign, but be careful because it’s going to create an unbelievable buying opportunity. But there’s times to be aggressive, times to be patient. Play defense. Play defense. You get through it with Moneyflow Trader, if you’re interested, frank@curzioresearch.com. And any questions, guys, during this time, I know it’s rough, get a lot of questions. I’m here for you, frank@curzioresearch.com. Feel free to see me email whenever you want. Really appreciate all of the support now. I’ll see you guys with Daniel tomorrow. 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 decision solely on this broadcast. Remember, it’s your money and your responsibility.

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.

Editor’s note: Genia Turanova just locked in her SEVENTH 100%+ winner of the year… thanks to the unique bear market strategy Frank shares on today’s show.

Here’s how you can join Genia… and start cashing in on the Fed’s mistakes

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