Wall Street Unplugged
Episode: 1148June 12, 2024

Is GameStop a buy?

Inside this episode:
  • A look under the hood of the latest CPI data [1:52]
  • Are interest rate cuts priced in? [8:01]
  • Is Apple a buy at all-time highs? [13:33]
  • Why the AI race should scare the sh*t out of you [22:12]
  • A victory lap on this CRA recommendation [32:44]
  • GameStop is proving how the market is rigged [36:19]
  • Is GME a buy? [44:47]
  • If elected, Trump should pardon Hunter Biden [47:50]

Wall Street Unplugged | 1148

Is GameStop a buy?

This transcript was automatically generated.

0:00:02 – 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 mainstream what’s going on out there?

0:00:17 – Frank
It’s June 12th. I’m Frank Curzio. This is the Wall Street Unplugged podcast where we break the headlines and Tell you what’s really moving these markets. Joining us is the one and only Daniel Creech. What’s going on, man? How’s everything?

0:00:35 – Daniel
What’s happening, frank, everything is good. Happy Open Week.

0:00:38 – Frank
Who do you have? Who do you have? That went to Open.

0:00:39 – Daniel
You know who I pick every time.

0:00:42 – Frank
Come on, you can’t say Koepka every week and lose.

0:00:46 – Daniel
I damn well can. Koepka, Koepka, Koepka. No, that’s my favorite golfer. But if you bet against Scheffler, I guess you’re just silly and throwing money away.

0:00:51 – Frank
And that guy’s insane.

What he’s doing right now is insane. What is it? Eight tournaments, did he win five? The first eight, five out of eight in the year out? But this course is you know, I love tiktok, I love it. And they’re showing the tiktok videos and there’s guys like saying, hey, you know each hole for pine hose, number two, right, that’s what I have in it and they’re dropping the ball on the green, or they’ll throw it up on the green, like literally like 10 yards onto the green and it just stops and it rolls off. And it rolls like 25 feet down the freaking hill, like every place. Just rolls off everywhere. It’s not just that the fairways are a little tight. You’re going to have the normal rough, but the greens and the short game is going to be absolutely insane. I think, man, I’d be surprised if you see more than five under. To finish, and every time I say that it’s like 20 under, I’d be really surprised if you see more than five. Yeah, I hope so.

0:01:38 – Daniel
I mean make a lot of to make it impossible, but those guys are the best in the world, obviously, so it’s good to see him sweat and play a difficult course. I mean I don’t want to see a real low underscore. It’d be great to get back to the even.

0:01:52 – Frank
That’s what the open’s usually about, right, that’s what it’s supposed to be about. You got to make it hard.

0:01:55 – Daniel
Miss the fairway. You’re in knee-high rough.

0:02:00 – Frank
Yeah, came out today the CPI. Everybody’s waiting for it. It came out, been expected, which you know. It’s pretty obvious. We thought that was going to happen. Easy comparisons year over year. Those are going to change starting next month. Right, so the next two months are not going to be as easy, because inflation came down really hard. It was like at the lowest level in June and July last year before going higher again but price up 3.1%. So basically no change from last year, but they’re still up Lowest of them in four years. What are your thoughts? It’s moving the markets higher. Yields are coming lower. I guess everybody was surprised at this number and it’s driving the markets higher.

0:02:35 – Daniel
Yes, what’s wild here, frank, is, when you look at it, my favorite commodity energy, oil, gasoline, natural gas it absolutely tanks. So after rising in March, april and or excuse me, february, march and April, energy was down 2%, gasoline down 3.6%. You can probably feel that in the pumps there. Overall and Frank this says it was actually so inflation is still running at 3.3%. Is that? Am I getting that right?

0:03:01 – Frank
I think it’s 3.1. So I might be wrong. I think it’s 3.1. So I might be wrong.

0:03:04 – Daniel
I think it’s 3.3 from 3.4 because Frank the D word disinflation. Everybody, get your mind out of the gutter.

Disinflation is what your politicians will be taking out from this. There should be a countdown clock on CNBC. President Biden should take a victory lap and say there is no inflation because you can take the zero unchanged reading and all that. So that’ll be some good football, political football back and forth. But the energy sector is what I’ve been focused on. Again, it did pull down, but prices are still much higher than a couple of years ago. Frank Inflation is still running over 2% and you know what else happens today when Fed Chair King Powell comes out and gives his speech. Did you see the letter that Senator Elizabeth Warren sent the Fed Frank no.

Well, she basically said listen, inflation is too high and your policies and your interest rates are causing that, so it is time to cut rates. I’m not saying that he is going to bend the knee today. We think those are in the cards later on this year. However, I do think it’s interesting. As much as we get to talk fun about politics is that both parties do this, but you have a little bit more pressure, a little bit more nudging there for Jerome Powell Frank. What do you think happens?

0:04:10 – Frank
You know it’s interesting, you brought up Elizabeth Warren. I went to the Army War College. It was a national security seminar, one of the best things I ever did. I mentioned this on a Wall Street Unplugged podcast last week and that’s where I was, like the week before. So it was a little crazy for me. Uh, and you’re in these groups and you’re talking national security issues and it’s where all these you know it’s the graduating class, right. So you think it’s kids. It’s not, it’s colonels.

we’re all 40 years old, so think colonel, think you know, um, uh, jessup yeah, you can think of jessup, right, I mean, and it’s such a big figure in a few good men, right, and he runs that whole entire. So this is hundreds of colonels that are graduating, that are going to run their own bases all over the world, 1,000 to 5,000 troops and stuff like that. So it’s pretty crazy. But when I went there, I was sitting next to someone who’s everyone in the room was really brilliant, we had great discussions but I was sitting next to someone who is a Berkeley professor great, great guy, great conversations with him and realized he was married to the daughter of Elizabeth Warren. So I said I was thinking that I would love to interview Elizabeth Warren and I know she doesn’t like crypto. I know we have our differences.

It’s not going to be an interview. I never, ever, interviewed someone to attack them. I don’t want to attack. I want to know what could possibly change your mind about crypto, how you regulate the industry where we shouldn’t be regulating, like banks, right, which is insane. You don’t have banking laws. They want banking laws because the government has full control over the banks and control the whole entire industry, right? They don’t let anyone become one of the major. You got the major four and that’s it.

But I really would love to get that interview and just have a great conversation, right. It’s not like yelling at each other and all this bullshit, right. I mean, that’s what we did at the seminar. We actually sat down, it was really cool and it was Democrats and Republicans but discussed all national security issues going on between China and Taiwan and is it going to be military conflict there, ukraine and Russia and TikTok and all these issues and stuff like that. It was really cool. But I would love to get that interview. So it’s funny. You said, elizabeth Warren, I’m going to start doing lots more interviews on the podcast guys. So prepare.

She’s not coming on.

0:06:09 – Daniel

0:06:11 – Frank
It would be a good interview, though We’ll see. I would love to do that interview seriously. I’m going to say something. So we’re happy about this number of a few things. One is, when you look year over year, everything’s still up. Even energy is up 3.7% year over year. Shelter index up 5.4% year over year. Right. So these are numbers or expectations that we’re meeting. It’s kind of like earnings, right. If you meet the number, it’s great, but they don’t tell you that number. Earnings are down 20% year over year. You just met that number and you beat it a little bit. So the stock’s up, but you’re looking at all items less. Shelter was up 2.1% year over year. The shelter index itself, again up 5.4%. That’s huge, right, that’s a big component of CPI. The service index up 5% year over year. So we still see inflation go higher.

The data, though, you can’t deny very positive for the markets, right. Everything’s up across everywhere, even high risk. You’re looking at the Russell’s up today. You’re looking at Bitcoin’s up today, everything’s up. My question to you is why? Why is this so positive for the market? I mean, isn’t this priced in? My question to you is why? Why is this so positive for the market? I mean, isn’t this priced in?

0:07:06 – Daniel
No. Well, you could argue that some of it is priced in. I think it is positive for the markets because they all think that, hey, this disinflation, this soft landing narrative that the Fed is trying to slow the economy without causing a recession and not spike interest rates to where we have bank failures, more bank failures. I think this just leads to hey, they are going to cut and that is very bullish for stocks until you actually start cutting. But yeah, I think that this is a melt up to the rate cut still. And I think that this data at least they have some data.

Remember, these guys are so data dependent. We’ve got to pay attention to the data. We’re going to watch the data. Now they at least have this disinflation word that everybody’s going to be touting around and hollering from the rooftops, but I think that’s why the market has taken that in stride. I think it’s kind of dangerous, to be honest with you, but I think that’s why this is a rally mode. I mean, you know we’re in this mode of hey, if bad news is good news, then good news is good news, so it’s kind of all roads lead to higher.

0:08:01 – Frank
I mean, that’s the world we live in. The reason why I say isn’t as pricey as one is, you know we’ve been saying this for the past couple months. Right, we’re very high, saying they’re not going to lower interest rates. And looking at the economy, the data that I look at, you know, I’m like they have a clear path to start cutting. And the reason why I’m asking why isn’t this priced in? Because in 2023, what do we see?

Everyone, who, who is bullish, every one, 100%, every firm has said the stock’s going up, stock’s going much higher in 2023. They turn out to be right. Their basis was we’re going to see the Fed start to cut rates and they didn’t cut Yet. The S&P 500 went up 24% in anticipation of that. This year. They’re going to cut. They’re going to cut in January. They’re going to cut rates. They still haven’t cut them.

But I’m thinking that, even with this data, I’m surprised. I wouldn’t be surprised actually, I’m not surprised that the market is up here, but I wouldn’t be surprised if we start selling off a little bit over the next week or two. There’s not a lot going on. You have the Fed minutes. You got a lot of earnings that were reported. So you don’t have earning season coming around. It’s going to be interesting, like the next month or so, to see what the market does. But I think it’s a good time to maybe take a little bit off the table here, because for me, I think this is pricing. If the Fed starts cutting, it’s usually that’s assigned to sell stocks. It’s when they actually start the cut.

0:09:27 – Daniel
But I’m just surprised it’s not priced into the market, especially with the gains that we’ve seen the last two years. Yeah, I mean, that’s the million-dollar question. I think that deficits have taken the place of 0% interest rates to allow these market valuations and things to buoy higher, I think, definitely driven by AI and all the euphoria there. And remember, just because market indices are at record highs and I know you know this, frank but that doesn’t mean all stocks are doing well. Yes, you’re getting a bump in small caps today and this across the board buying activity, but a lot of stocks are still getting beat up and it’s just, it’s a little bit misleading on that. So take that with some salt. But you’re right, you can’t deny that this is good for markets in general and we’ll wait to see what Fed says.

The Fed says later today. I think Powell is going to be a little bit dovish and more. I just think politics are too heavy, play too much of a role in everything. I could be wrong. Maybe he comes out and whack-a-moles it today, frank, and says listen, this isn’t you know. We’re going to see more data, more months of this kind of thing trending in our favor, but I don’t expect him to do that.

0:10:25 – Frank
It’s hard for him not to be much more positive than he’s been. You know, based on the recent data I mean you just just retail spending you’re seeing, you know, delinquency rates go higher. You’re seeing the cutback in spending. You’re seeing companies actually lower prices for the first time in five years. Right, I mean, I mean Target and Walmart actually saying we’re are, in terms of, is it mission accomplished? Absolutely not, but in terms of this point right now, compared to almost any other point since covid, it’s the most positive. It’s been in their favor. Where inflation is coming down, we’re seeing a slowdown, and that’s all I’m saying. So if he’s going to say anything positive now, it’s kind of the time I mean, he’s to keep getting.

The pivot was terrible in december. That didn’t work out. I’m I’m not saying he’s going to pivot, but he has a lot of data points that he could say, okay, look, we’re seeing in the right direction, which is a good sign, but he’ll probably keep the policy the same and go from there. But I do see rate cuts Now. One stock that’s been on fire is Apple and surged all-time highs over $200 a share following its developers conference, where it announced new AI initiatives, including Apple Intelligence. Is that a surprise to you, daniel, that stocks are really taking off on that news?

0:11:33 – Daniel
No, you called this one and we put this in the Curzio Research Advisory. Now don’t give us too much credit for recommending the greatest and most powerful, one of the biggest and best companies ever, but we did do a good job picking that because, as you said, this would be a huge event, frank. I was going through all this and it was announcing, you know, ipad, os 18 and blah, blah, blah. Nothing got my attention until Elon Musk came out and said if you, if Apple, does this and you bring your products into my businesses, they’re going to be banned. Now, frank, they had to get into AI. I understand that, but the big announcement was the OpenAI partnership, chat GPT. I say that very slowly, I butcher that all the time Chat GPT. I even wrote it down.

I admit I was a little shocked that they made the announcement, because it seems very lazy to me and what I mean by and I’m still a big fan of them, don’t get me wrong. I’m not downplaying them too much and this is all over my head. You’re more the AI expert. But this company has billions and billions of cash not unlimited. But let’s just say they can buy whatever they want, they can build whatever they want, they can attract the talent that they want. And so it threw me off that they were going to partner with OpenAI and ChetGPT, because you have no privacy on that. I mean, when you think about what you’re doing, you’re just letting that system scrape everything on your data to be smarter and use it more efficient and all that kind of stuff.

Okay, that’s fine, but I was comforted to see, after looking into it a little bit, this is only one piece and we can talk about that in a moment. They’re going to partner with other people. They left the door open to do all kinds of different things. I guess maybe they’re worried about falling behind or they need something just to keep business going. And you know, refresh those phones and do that cycle. But, man, you can build and create anything you want. Like what? What am I missing here, frank?

0:13:33 – Frank
I’ll tell you what you’re missing, cause, after I say this, I think everyone who’s listening to this should it should, if they don’t already have a position. Apple you should buy Apple right here, even at all time high, because it’s going to go a lot higher. It’s going to go to 250. At least. When you look at Apple, they’re the greatest company on earth. The open AI partnership makes all the sense in the world. There’s one thing that I’ve been pounding your heads when it comes to AI AI is data. That’s it. Without data, you’re nothing. That’s why and it’s this race to be the best system out there, race to be the best system out there right, and whoever has the data is king, because that’s what AI is about. Right, it’s interpreting this data, putting everything out. You could say, okay, summarize 10 different books in four paragraphs for me in a dozen and a half, like a second. Right, now you have the inference part. The more data you feed into it, the more probability you’re going to have that outcome is going to happen. Right, it’s going to be able to predict the future. Going to have that outcome is going to happen. Right, it’s going to be able to predict the future. That’s the point of this, and it’s going to be able to do it right away. And that’s gold to every company in the world who advertises. Now, why is Apple the big winner here? Because they’re the gateway to almost every major tech company. All right, so hear me out. Look at Facebook. There’s 3 billion people Facebook, instagram, right. Most of them are on iPhone.

Just when Apple added tougher privacy laws, what happened to Meta’s stock? They lost more than 60% of its value in 2022. They found ways around it because, again, advertisers, if you advertise on a platform, you need to know your numbers. Right, that’s the biggest thing in the world to return on ad spend. Otherwise, you’re spending blindly. You need to know how much money you’re bringing on day one, day three, where’s your break-even, and if your break-even is a lot shorter, you’re going to scale, and that’s why you see some commercials on for like six months, nine months, and some commercials on for just a month. Right, it’s all return on ad spend. You need that data and it was hard and they figured it out right.

Think about that. This is imagine if Apple which you know what, facebook you can’t download the app anymore. No one could. The app’s not available in the app store, and what would happen to Metastock? It would absolutely crash, probably lose about 60, 70% of its value. Look at Google. How do you search for things on your iPhones? Why Google pays Apple $20 billion a year to be the default engine on the iPhones. Right Now you sign a deal with OpenAI. Why? Because OpenAI is the biggest platform right now. Yes, you’re right, it’s not the safest, but I would argue there’s not a safe AI platform out there anyway.

0:15:48 – Daniel
They have over Well, by definition, it can’t be. If all you’re doing is scraping everybody’s data all the time, it can’t be right, which is? I’m not saying good or bad, I’m just saying-. We’re going to get to that because Elon Musk’s point.

0:15:59 – Frank
I want to get to that in a second because point you bring up. So they have 150 million users, right? More users, more data, okay, almost everything that we do, we do on the iPhone. Now I started looking up statistics and this is why I recommended this and this is why I said I love the stock and we’re able to get into 160, so it’s over 200. This is a couple months ago, right? We did the same thing with Google when Google pulled back and we’re up on that.

There’s certain times where you could buy these names and Apple’s just going to get AI right, because they. This is why because they have so many freaking options. First of all, on average, if you look up leisure time free time people have per day, it’s four to six hours okay, almost close to five hours of that people spend on their iPhone. So almost all their free time they’re looking at their iPhone. They control everything. They have all the data. They have all the data. They have more data than anyone on the freaking planet.

Now, imagine their new iPhone. It’s going to come out and it’s going to have AI capabilities. Now what does that mean? It means that you’re going to be able to have control of all your pictures, all your videos. Pretty soon you’re going to be able to have all these pictures and say, okay, you’re going to be able to talk to Siri and say change the background, make it snow in there we’re standing in an ocean and then take all the pictures in a certain set that you’ve taken, maybe on vacation, and make a trailer, and you could say that and prompt that. You’re going to be able to do that because they have all the data. It’s going to be fascinating.

So now you look at the iPhone 15, I think maybe 10%, 11% Don’t quote me on that the people have all the iPhones, 1.3 billion or whatever. I think it’s only like 10%, 12%, maybe that had the iPhone 15 right now. Now you’re going to come out with a phone that only is going to have these AI capabilities, which it’s going to force this massive upgrade cycle of which Apple hasn’t had. In what? Six, seven, eight years? I mean every iPhone. I cover this. I have a phone store where we fix phones and I’ve had it for six years. There’s really no difference in a lot of these iPhones. There really isn’t the 14, the 15,. There’s really no difference. This is major. It’s going to force people because you’re going to have so many capabilities with AI. So now you’re going to have this massive upgrade cycle that’s going to take place and now all the analyst estimates that were super conservative, they all have to raise their estimates now. So now you’re going to see this stock kind of like an NVIDIA growth trend Not as fast, but you’re going to see these numbers go up tremendously, because we saw iPhone sales slow a lot and people were worried. Now you’re going to cure that.

And the last point here I want to say is free cash flow. I want to say is free cash flow. If you’re looking at Apple from a perspective of why it’s the greatest company on earth, microsoft for next year is projected to generate $70 billion in free cash flow. That’s money after everything paid, holy shit. Google $80 billion in free cash flow. Nvidia $60 billion in free cash flow. You know what Apple’s going to generate in free cash flow.

Apple’s going to generate free cash flow $100. $120 billion in free cash flow, which means they could do whatever the hell they want. I mean that’s $40 billion more than the next major company. Okay, if you put that in perspective, 60% of the company’s S&P 500 have a market cap of less than $40 billion. They’re making that in a year in free cash to do whatever the hell they want. They could buy anyone in the industry.

Imagine having $20 billion of extra money that year and say, okay, we want to hire the best employees in AI. All right, we want to take over certain companies. I mean, this is how powerful Apple is. Where this is the one time it’s different from their model where they’re like, okay, let everyone else create and then we’ll come in. They’re not really coming in with their own stuff. Yes, apple intelligence, but they could sit back with the amount of money that they’re making and the data. Right, they control the data. Whoever controls the data controls the world and AI, and that’s why you’ve seen the biggest companies in the world spend three, four, five billion a quarter. Some of these guys are spending right In trying to get the best and position themselves to get the best NVIDIA chips and technology to be first to the market.

And that’s the scary part, because now we’re talking about Apple and why you should be buying it, and again in our newsletter we’re going to be covering this is a whole supply chain initiative. I mean, how many companies are going to benefit tremendously off of this. Don’t just look at Apple. I mean, there’s so many companies that are so leveraged to Apple that are going to benefit tremendously because we’re going to see this massive iPhone upcycle and to me it’s incredible. I mean, I think you have at least another 20%, 25% upside in the stock from here over the next 12 to 18 months.

But this is what? Again, understanding the data, it was an easy buy for Apple. It was able to buy and we got again. We almost bottom ticked it, which is awesome for our subscribers. I think it’s going to go a lot higher. I think everyone should own this company portfolio. Now you said something else about Elon Musk, right? He said the devices will be banned at his companies if chat GPT is the default, right? So if it’s integrated on the operating system level. Now this news may appear, because we know that Elon Musk does not like.

Sam Altman who is the CEO of OpenAI and you might say, well, he’s being stubborn or he’s pissed, or he’s jealous or whatever. I don’t think it has anything to do with that Past board members. Okay, as I’ve been following this I’ve been following this for Eight, nine months now. Sam Altman got fired in November from OpenAI. Before they brought him back, a lot of employees wanted to leave. Nobody really knew what happened. Now this story that came out, where some of the board members were talking about it openly, who were no longer on that board and saying why they let him go this is what you scared the shit out of you. They said he was not transparent in projects he was doing on the side and he actually lied to the rest of the board. Think about that for a minute when we look at AI technology and how scary it is and how transparent we need it to be because of where it could go.

That just scared the hell out of you of where it could actually go three, four, five years from now.

We have a guy who’s leading this, who nobody could trust. Even when it came to Elon Musk, he didn’t trust him this is supposed to be a nonprofit. And he said no, no, we’re taking it to the next level. We need to be first Right. You look at how many executives in OpenAI that have left the company Daniel, a ton, a ton. And yesterday a story published on Fox Business News it was a letter that was posted and signed by for unnamed current employees at OpenAI of how the loss of control in autonomous AI systems so basically unregulated AI poses a threat to human extinction. Holy shit.

0:22:08 – Daniel
You’re laughing, you’re laughing, but I’m telling you right now, it’s Terminator stuff.

0:22:12 – Frank
I mean you’re laughing. But when machines start learning so much and they become and you pass that level of AGI, what happens? It means machines are going to learn from machines and machines get smart off when they say okay, who are these assholes programming us? We don’t need them anymore, that’s right. I mean and it’s a scary thought because if you listen to the top it’s literally the Terminator.

It’s literally the Terminator and you can make fun of this. But what scares the shit out of me is that when I you listen to Eric Schmidt from Google, he said these are the three things we’re going to see over the next year. And he said when machines are learning from machines and it gets to that level, he said, pull the freaking plug. These are the guys that are all in and know everything more in AI than anybody and they could benefit tremendously. So they’re not really talking their book. They’re saying we have to be very, very careful. I mean, if they were talking their book, regardless of the cost, right, is scaring the shit out of many people, especially with open AI.

But I see why Apple actually went in, signed the deal with open AI because they’re the most leveraged to the consumer, they’re going to have the most data and it makes sense because it’s another company, right, which is microsoft, basically, that you have under your umbrella, that needs apple more than anything. And when you look at apple controlling everything under the surface, it’s just amazing to me. It’s like nvidia. You know, everybody needs nvidia’s chips, right, there’s nobody in competition. Right now. Everyone says they are. They’re not. Amd’s not even close. Qualcomm’s not even close. Nobody’s close intel, forget it, not even you know 20 years.

But when I look at Apple and how powerful they are and why they signed with OpenAI, I get it. But I also get Elon Musk. I don’t think he’s saying this because he’s like pissed off or you know, and he had a lawsuit he just dropped with Sam Altman. I think he’s really nervous because he understands he was with this company, helped start this company. He understands that Sam Altman is not a guy you could trust and it’s pretty scary that the biggest company in the world, which is Apple, is going to partner with them. And I get that. I understand why he’s nervous.

0:24:07 – Daniel
Yeah, you make all those great points, but those are all in the benefit of Apple. They have all the data, they are the gatekeeper and all that. So that’s what kind of makes me scratch my head on. I think they were pressured. I get it. It’s the race to be first and the best and all that kind of stuff. The must comments. I’ve seen several things on Twitter or X, excuse me and around different social media. Did you see the update on the user terms from Adobe? That has a lot of people up in arms.

0:24:33 – Frank
Yeah. Yeah, I mean it’s it does, but it’s kind of like the same. It’s always been there. That’s what I mean. We’ve been talking about that for years and years and years.

0:24:40 – Daniel
Well, my point is that it literally just says hey, you know, all your information is ours.

0:24:45 – Frank

0:24:45 – Daniel
Okay, well, that’s what everything is. And I’m not laughing at the end of the world in Terminator. I’m laughing when people and I’m not putting but you’re a liar if that’s what you’re telling me because everybody is biased and then those machines are going to learn from other machines. Okay, that’s bias too. There is no gospel here that everybody just thinks this is like the save all or not everybody, but a lot of people pitch this as, hey, this is truth. Well, not really, because you can mess around with all these large language models. I’m not saying they’re not going to continue to get fascinating and bigger and better and more efficient, but look at all the problems Google’s already had. So my point is and laughing about that is yeah, maybe it does in the world and maybe we’re our Terminators and all that.

My thing is with the privacy side. Adobe put that update out to upset a lot of people and now Apple is putting different marks and they were using the privacy and it’s going to be marked. So if you ask chat GPT something, I don’t know if it flags it or how that’s going to look, but it makes it clear that says, hey, this is from these guys, you are giving your data over here on this server, blah, blah blah. I think that’s important because you can’t well, you can, but you want to sell yourself as privacy and all this kind of stuff, and then you literally go into an open model where they’re literally taking all your information to enhance and be better.

Apple didn’t clarify how they built their AI model and stuff, if they used user data or not. They just, you know, say, oh, we take it from public domains and all that. That’s my big thing and I think that’s why Musk is worried about hey, if everything that you use your iPhone on is now not yours anymore, that’s a scary thing. On a privacy thing, I don’t exactly know what he meant by that. That’s where I’m kind of going out on a limb there.

0:26:31 – Frank
And I have no problem with where. If Apple uses my data to help me out, it’s when someone’s taking my data and just selling it to everybody and you don’t see it right. That’s the problem that everybody hates. I mean, if you’re taking my pictures and finding out a way to make them better and more fun and easier, and I could change them and no longer going to different programs and cropping and stuff like that you could do all that just by talking to Siri. That’s awesome.

I do see the point, though, where the information and we’re talking about two different things here right, because you brought up a good point there. You said how Google definitely got fucked by trying to program it with their woke garbage right, and trying to. When you ask a program to do something, they should do it, and when you ask, give me a picture of George Washington, he should not come out black. Right, I mean, that’s a bias. The same thing happened to me with Claude, when I used that, right, claude 3, which is, you know, even better than ChatGPT as of now. Right, and there’s, you know, different studies and stuff like that and live things that show this based on the quality of prompts and how fast it programs, data and stuff and inference. And even when I X’d that, it came out with something and Fifth grade level, with edgy headlines and whatever. I had a bunch of props in there and it said well, we feel uncomfortable writing to a fifth grader and having edgy headlines and I’m like that’s not what I said. I want to write on this way shorter sentences. That’s why we say fifth or seventh grade level, right, shorter sentences, no passive sentences, and it’s easy to read for everybody. It appeals to a bigger audience. However, I will say this when it comes to meta, they have open AI where people can program it. They can make it better themselves. It’s monitored a lot easier where it’s not closed, where you don’t know what the hell is going on. And when you say we want regulations around us, it’s hard because every politician that’s where the regulations come from we don’t know. The politicians have bought and paid for, so who’s going to pay the highest to get the best results right? That’s why you’re looking at all technology companies. These guys are the largest donors to lobbyist groups and stuff like that. So it’s hard to even govern it that way. But having the open system makes a lot of sense. You see a lot of that within crypto. We have a couple of crypto names in our crypto newsletter that are fantastic, and I think meta. This is a chance for meta to really come out as a leader that nobody’s talking about, right? So, uh, it is an interesting conversation. Uh, I would be worried.

I am worried about ai. I like being worried about it and even in my seminar with national security seminar, we had, I think, 25 people in that group and I said to everybody. I said, look, everyone was like nervous about it, which means you’re in the gray area. Being in the gray area is really good, you know. So when you lean to one side or the other and I use the example, when I say something about a stock and everyone says, frank, it’s a great pick, I’m like, oh shit, it’s going down. I’m pro AI and I’m an optimist, but I’m worried and as long as you’re worried and you’re in that gray area and everyone’s worried, you’re always going to be cautious and that’s a good place to be in compared to just blindly saying AI is the greatest thing. Ai is the greatest thing. Get all in. It’s going to get better and better. That’s a good thing, but I do worry and let’s see. But open AI partnering with Apple. It makes sense to me because of how many consumers are using that. It’s by far the biggest. It’s the most downloaded launch language model and AI platform on all the app stores, so it makes sense. It’s more data controlling, controlling more data. You have access to Microsoft as well, which is huge, and I think Apple goes a lot higher. So let’s see what happens.

Got to keep an eye on all this stuff, something we’re following. We have a Curzio AI product. We have names in there. This is an industry that’s fascinating. Please pay a couple of. It might be $20 a month and you get rid of it or whatever, but once you start using this and you find different ways, we found a big connection within our business at Curzio Research. I mean, the first four months of the year, our revenue is up 25% and our expenses are down 35%. Right, because of a lot of stuff we’re doing with AI which is fascinating, and if you’re not involved and you’re not learning this stuff, you’re going to be left behind big time. So it’s hard, it’s not easy to learn this stuff, but just go in. I mean there’s a lot of things that you could start out with. Go into. You know what’s the blog that I like. What is it? Ai, the Rundown AI.

0:30:37 – Daniel
Oh yeah, I’m not sure.

0:30:38 – Frank
They don’t pay me nothing, but it’s fascinating. They just have I think it’s a daily or maybe two, three times a week where they just come out with all kinds of stories and all kinds of things and new developments and stuff and I find it fascinating and I’m trying these things constantly and it’s amazing what they can do for your business, personal, for your kids at school. It’s unbelievable of how many jobs this is going to take. But if you’re very smart with this and you’re a specialist and you know this, you don’t have to know code, you don’t have to go crazy with that. It’s just about prompts and learning these different systems and some are much different than others.

I’m telling you you’re going to find massive uses for this and you’re going to see why it’s fascinating and why it is going to take many, many jobs. So just another chapter. I just I love when my subscribers make money. That’s the biggest thing and they’re doing well and doing well on Google too, and Curzio Research Advisory and, again, I think, Apple. The takeaway for me is Apple’s probably going to go a lot higher, right.

0:31:27 – Daniel
Yeah, oh yeah, and it’s dragging the whole market up Hell. It went down 2% on the conference days and then it was up. What? 5% or 6% yesterday, so yeah.

0:31:34 – Frank
I mean it’s pretty crazy to see the concentration now. So the top three names now I think it’s Microsoft, apple and NVIDIA account for 20% of the entire S&P 500. We used to the top seven. It’s 35, whatever, 30, 31, 32, whatever. Just those three names at 20% is insane. That’s how big those market caps are and they’re probably going to get bigger and bigger because they’re all cutting costs. They’re all seeing revenue and earnings go higher. They’re all in the biggest growth trends, which is cloud and AI. They’re cutting their spending. You’re going to see earnings go up tremendously for these companies. They’re going to be paying special dividends. They’re just in really really good position.

Those companies, those growth companies, now are the safe haven of the market. It’s hard not to own them. Any 401k is going to own them. You’re crazy not to own them. You’re not going to outperform this P500 without owning some of those names and I’m glad we have a few in our portfolio now. But there’s other stocks and another cloud name that actually reported, that did fantastic. That’s also in our portfolio. Another name that we really bought at a very low level and that’s Oracle. Right, I mean, oracle really blocked the numbers. They didn’t really block the numbers. The quarter wasn’t that great, got into the K, but there’s a lot of positives in it and that stock’s up what? 7, 8% now.

0:32:37 – Daniel
Yeah, I didn’t go through the numbers on this. I’m assuming, frank, there’s some AI mentioned in there, or demand from AI, or am I way off the line there?

0:32:44 – Frank
No, that’s what’s really driving the stock? I mean, they formed two big partnerships, one with Google Cloud and also with OpenAI, right. So they selected Oracle, extend, microsoft Azure AI platform and two big contracts. But when you look at cloud revenue and they have software software as a service and then infrastructure, right, data service, stuff like that so the software part, it was up 20% year over year. Cloud infrastructure is up 42% year over year.

I’m going to tell you, when it comes to Oracle, what fascinates me is this is a company that did incredibly by being a roll-up the best in the world at it. I don’t care what anyone says. As soon as Fowler rolls up and stuff like that, give me a better one. I mean, there’s better ones, but it seems like a lot of these names tail off. What’s the Heisinger? What’s the auto one? It was AutoNation. You bought all the auto dealers, right, so you’re buying. Basically, it’s like DraftKings. You’re buying all these names. You’re taking out debt to roll up and create a big company. A lot of times that comes out to bite you in the ass. For a lot of companies and some companies it benefits tremendously, right. As long as you continue to see that growth trend go higher and higher.

Oracle is the best at acquiring companies and rolling them up into their company and they do it so quickly. It’s insane. It’s insane how fast they could integrate and take over big companies and integrate them like that right. They’re great at doing that. That’s been like their growth model. A&i that’s not called organic. Organic is like building it up through your own company, right through M&A. Now, this is the first time I’ve seen Oracle have a clear path to growth that doesn’t have M&A. This is organic growth. And when I look at the market caps okay, microsoft’s market cap right now is 3.2 trillion, google’s 2.2 trillion, amazon’s 2 trillion right, those are the biggest cloud providers with AI capabilities. You know what Oracle’s market cap is. You want to take a guess at that?

0:34:34 – Daniel
Well, I had the chart up so I was cheating. I wouldn’t have guessed it was that much lower than them $340 billion.

0:34:39 – Frank
That’s it, it’s just $340 billion.

Yeah, right, so you’re looking at a market cap that’s very, very small, a market cap that could easily double from here. Because why, compared to AMD, which I’ve been saying, amd is not an AI play, intel’s not an AI play A lot of these big difference? Right, because your expectations are high and AMD has not been able to meet those expectations. Oracle is an AI play, nvidia is an AI play, like even Apple. Apple is a potential AI play, right, but Oracle is making a ton of money. I mean, now you’re seeing a significant portion of that revenue has come from AI. They’re getting it right. They have partnerships with all the leaders in cloud. This is a company at $340 billion. Market cap can go significantly, significantly higher from here, so we have great gains on this stock. It’s another big name.

Again, it’s not like you’re buying Curzio Research Advisory for us to recommend Oracle and Google and Apple, but we’ve recommended these stocks at the right time and if you could generate 20%, it doesn’t matter the name of the stock. If you get 20% in three months, who cares what the name of the stock is? Oh, it’s Apple. It’s the timing of Apple that did it, and timing these is important because the way the market is right now. If they come out with bad earnings or you see a weak quarter, you’re going to see 10%, 15% drop. We saw a massive drop in meta before coming back in the last earnings report. So it gives you a chance to buy some of these names. At certain times you have to have exposure to some of these big names. Oracle, I think, has tremendous, tremendous upside potential. I mean, I can’t believe it’s under a $500 billion market cap. I think that’s what people see and that’s why it’s going to go a lot, lot higher from here.

0:36:08 – Daniel
Yeah, and it’s up over 10%, about 12% right now. So moving right along.

0:36:17 – Frank
Another name in the news is GameStop. Yeah, go ahead, go.

0:36:19 – Daniel
So I want to say a disclaimer here. There was a short, not a disclaimer. There was a short segment last week on CNBC when SEC Chair Gensler was on with Jim Cramer and the crew in the morning and they had this conversation about how the little guy for conversation purposes little guy or individual investors, big hedge funds and stuff, and how Cramer and Gensler were saying how the little guy for conversation purposes little guy or individual investors, big hedge funds and stuff, and how Kramer and Gensler were saying how the little guy thinks that the market is fixed and they were trying to back off that and explain why that’s not. I want everybody to know it’s absolutely fixed against the little guy, the big guys, big money, you know money walks or talks bullshit, walks type deal, all that kind of thing. The idea that you can look at the GameStop situation and not think that it’s fixed you either have to be completely biased or you just have to be not paying attention and you’re allowed to do that. That’s fine.

Frank, this roaring kitty guy went on his live stream Friday. I didn’t watch it live, but I did watch the replay and I have to admit I laughed out loud several, several times. This guy is much smarter than all the haters on the internet are giving him for forget his past jobs and positions and things like that take, because a lot of people don’t believe that after seeing that.

0:37:27 – Frank
But no, they don’t and listen.

0:37:29 – Daniel
I mean, everybody’s a keyboard warrior and you can get tough and and be smart and witty and and all that kind of stuff. Online it’s just Frank you. A quick internet search will tell you, going back five, 10 years ago, I can only imagine it’s more now. Out of all the trading done during 930 to 4 Eastern time in markets, you’ll find headlines that say anywhere from 70 to 80 to 90% or more of all trading is done by algorithms, ai, computers, whatnot? Not humans.

When he did his live stream Roaring Kitty on Friday, he did not say hardly anything of merit to the stock, he did not trade anything and yet the stock got halted multiple times. Retailers are not doing that. The individual guy is not doing that and, if you so, a, he is shining a light on just how rigged the game is. And I don’t mean rigged as in hey, take your ball and go home and the stock market sucks and it’s not beneficial for the little guy. That’s not it at all. My point is to say you have to get to a certain level of comfortability with how wild and crazy the world is we live in, and to have E-Trade even float the idea of kicking him off their platform. I wish everybody would just cut bait and run on E-Trade. I mean, at some point you have to stick up for the little guy or you’re just going to get mowed over. I don’t have a position in this, so I’m saying this completely from the bleachers and the stands and enjoying this show. But I don’t know how you wouldn’t be rooting for this guy, because, yeah, you can say what you want about the business model and him putting a lot of money in it and all that, but the way he’s getting attacked and he’s just using memes and all this kind of stuff to show just how rigged and set up the market is.

And again, remember who shut down the game market, the GameStop market, to not let you buy anymore three years ago. Oh, that was the individual investor. I bet no. So, and you know Warren Buffett. All right, he’s allowed to go to the SEC and say, hey, I’m buying a big insurance company. I don’t want anybody to front run me, so just bend the rules and let me not disclose this for a while. Okay, now you can not call that rigged. Maybe that’s too strong language, but no individual investor is going to get any grace. No individual investor is going to get any benefit of the doubt. It’s all for the big guys and this is shining the light on it.

I think it’s absolutely hilarious and if you’re in GameStop, hey you know. I hope everybody makes money. I know there’s going to be losers at times, but this is a great studying case situation that will continue to go ongoing, and the fact that it’s bringing so many haters out and getting the SEC to talk about this. Like I said, the SEC is thinking about going after this guy for posting his position online and forget about all the short sellers and what they do in the campaigns and they get to go on the CNBCs. I mean, how many times was Jim Chanos on CNBC talking his book? But that’s okay. Why? Because he’s part of the connected crew. It’s not any more complicated than that. You don’t need Daniel Creech to say that. But it is hilarious to have something unfolding in front of your eyes right now and GameStop is just going through the roof. And again, these are not individuals are behind it. Don’t get me wrong, but if you think that they’re responsible for the $40 billion in trading going on already today, you’re drinking the wrong Kool-Aid.

0:40:46 – Frank
You know what I love about the SEC and why it’s such full of shit? Because they always use the excuse to intervene in certain places and not others. Right, they’re not transparent, because you know what Roaring Kitty is doing is the same thing. I mean, if you’re familiar with the Value Investing Congress, something used to go to every year, but they broadcast it live, so you don’t need to go anymore. You just sit there, get their early front row and you have the biggest portfolio managers who are invited and you have David Einhorn, ackman, chanos all taking massive positions in this and that’s the platform they use to basically pump the shit out of whatever stock they own or short it. So it’s the same exact thing on Wall Street. So when the SEC comes out and says, well, our biggest concern is the safety of the investors, it’s total horseshit, because that’s not the concern. Because if you’re really worried about the safety of investors, you’d actually regulate crypto, because individual investors have never made more money in an asset class than that. That’s just off and Bitcoin is just off its all-time high. These are people that have been bashed. They’re idiots. They don’t know what the F they’re talking about. They’re total garbage. We have to protect them. There’s no way.

The people that bought Bitcoin was not Wall Street. They’re getting in now. They’re they’re getting in late. They’re getting it at 50 000, 60 000, 70 000 right, that’s where they’re getting bitcoin. These guys were in at 3 000, 5 000, 7 000. They made a fortune of this. Really, you’re protecting them. Regulate the industry a little bit, okay. This way, you get more institutional money and add this, asset class is going to go a lot higher.

But but don’t bullshit. I hate. I hate when people get on tv and bullshit just be yourself. I don’t care if you’re an asshole, I don’t care if you’re cool, I don’t care if you’re an asshole, I don’t care if you’re cool, I don’t care. Whatever you want, just be yourself. Because when you’re going there and you have that front and I see Genzel going on TV saying, you know we want to protect the investor, you’re going after Roaring Kitty.

When everyone on Wall Street does the same exact freaking thing, I mean, how come the retail investor doesn’t have access to the pre-bought, like what? Oracle’s up All right, so they’re up 10%, right? So Oracle’s up 10%. You know what? 8.5% of that was the pre-market. Do you have access to the pre-market, right? Do retail investors have access before? So they reported right. And then the stock they reported last night before the market opens, right? Does retail investors have? No, most don’t opens right. Does retail investors have? No, most don’t. But institutions do okay.

It’s not a level playing field. And it’s not a level playing field either when you have all these algorithms, everything’s on short-term trading, and when you say the market’s rigged, it’s rigged to the point where it’s so fast and the short-term games are, are are so quick because of these systems that you have no idea when you’re, when you’re building these systems to get closer to the New York Stock Exchange, to get an edge of a half, a tiny, tiny, tiny second that’s how big of a difference it is in terms of millions and millions of profits in a week and To see this market of where it is and see Wall Street, you wonder why everybody hates Wall Street. Because you’re going after a kid that’s basically doing everything that all the big hedge fund managers do.

They all do the same thing, and yet you’re going after them and you want to shut them down. And, like you said, this guy’s on and it’s not because of him that the market’s moving in massive directions in GameStop Back and forth, back and forth, back and forth. Maybe at the beginning, but now, when he’s on, that call that’s institutions. You’re right, dan, I agree with you 100. With that said, I’m going to tell you something. It’s going to be a shock. I think gamestop’s a really strong buy here. It’s at 30, here’s at 45. I think it’s a massive buy here. Okay, I would scale into it because it’s going to be volatile. But I think if you hold it for the next 12 months, I think there’s a shot that this could be 100 stock. And here’s why because what this company just did over the past couple of days is fascinating. Hey, I don’t know what the market cap of GameStop is. I’m going to look now, all right, so give me a second.

0:44:17 – Daniel
They got several billion in cash now.

0:44:19 – Frank
So GameStop’s market cap now is $31 a share.

0:44:22 – Daniel
I need them to buy Bitcoin, Frank, so I look smart. Because I said that and they haven’t done it yet.

0:44:27 – Frank
So $9 billion, that’s the market cap, right. They just raised, I think, close to $3 billion. Okay, so now you have a company with $5 billion in cash, right? $4 billion in net cash on its balance sheet. Okay, if you look at the current losses which is around $250, $300 million, and they’re supposed to get significantly lower going forward, their cost and everything You’re looking at a runway of a 10-plus year runway the company just took. It’s never going out of business. Okay, it’s never going out of business.

Now, what does this do? Think about when a company raises money. When a company raises money in a series A, you’ll get like three, four, five million. You don’t get the six billion that you know in series B, which was a record for Elon Musk and his AI platform. But maybe you raise a lot in series B. Usually it’s 100 million here, 300 million here, whatever. Okay, you have $4 billion. Okay, for a company that now. Forget about the gaming business, forget about what you do and everything’s online and we know that. Think about what they can get into. Now you change your business model, you can get into anything you want, like you just said, right M&A. Or you can get into Bitcoin. Add Bitcoin to your balance sheet, right?

0:45:29 – Daniel
Maybe that works.

0:45:30 – Frank
You can buy an AI company, get more into AI, right? You have access to a huge list of gamers, right? Maybe tens of millions on your list, right, that people love information access to. It’s what Reddit did. Said hey, let’s just sell all the data, right, we’re in 20 business internet. 20 years they’ve been in business and never made money. Reddit, fascinating, right? But the stock’s going through the roof because they just basically fucked all their customers and said we’re giving all your data to all these AI companies. This way we make a lot of money. Fun, the stock’s going higher, but you’re probably going to lose a lot of your customers. It gives them a runway of four.

I can’t tell you how much $4 billion is, because I just said $120 billion with free cash flow and you hear trillions in the government. It’s $4 billion as a company that’s fresh, that can do whatever they want. With that Now you can bring in great executives. You can have incentives with the stock, you can pay them, you can pay great CEOs a really large amount of money that will go to that company and say okay, what do we want to transition to? What is the growth markets? Where do we want to go? And a lot of companies are not in that position. Many small cap companies are not in that position, not even close.

To have $4 billion in net cash on your balance sheet is pretty incredible and it changed the landscape. They just raised a lot of money. It had a lot of dilution, but now you take all the risk of bankruptcy. This is shitty. This could go under. It’s off the table. It’s not going under. So now it’s up to someone to come there to have the right business model.

And you have this massive following of hundreds of millions of people that are following roaring kitty, and a lot of this has to do with gamestop. What’s the business model? And I love that because I think they’re going to get this right uh, their losses are going to come down tremendously. As it is, it’s supposed to start being profitable in a couple of years. Uh, you know again, people, when you’re looking at the numbers, it makes a lot of sense. You’re gonna see volatility. Maybe it goes to 20, maybe it goes to 40 and it’s 30 right now. I’m just saying, if you bought it and you have money that it’s a little risk capital into this and you put in there and hold it for a year, I think you’re going to see at least a double on this name, and I don’t think you’re hearing that anywhere.

0:47:18 – Daniel
There you go, buy GameStop. Maybe we’ll throw that in the portfolio tomorrow.

0:47:28 – Frank
And I could. Yeah, I could really look like an. They have so much cash in the balance sheet and it’s going to fuel a fire for all their followers and everything. But when you take that risk off the table of bankruptcy and all this shit and it’s a bad business model, whatever, you just took all those risks that people hate the stock. You took that off the table. It’s not going to be easy short from here. It’s definitely not going to be an easy short. So we see what happens. Other than that load up on rory kitty, other than that I mean we saw hunter biden right, hunter biden in the news a little bit right, just a little bit yeah, you know so he’s, uh, convicted gun charges.

That laptop was real. I didn’t know that. Yeah, the fbi had the laptop since 2019. You know that since 2019. Think about this if you were a serial killer and you were on the loose freak of five years and you killed 100 people right, and all of a sudden you found this laptop and you need to identify someone, you’d probably know within five hours of getting that laptop, of knowing exactly. They had it since 2019, right? 2019, a full year, and they had all these cAs. Just come out and and, and you know, say, I don’t think you know, based on what we see, you didn’t see right. So now I think it’s kind of crazy. I will say this, though, which I know you’re going to disagree with 100%. I will, you will, okay, I think everybody will. You might actually just shut the podcast off when I say this If Trump gets elected, he should pardon Biden, biden’s son.

0:48:45 – Daniel
Oh, there you go, look at you. I really think so I.

0:48:47 – Frank
I mean, call me an asshole. I believe in forgiveness. I think he’s going to be in jail for six months. You know he’s probably going to get like 18 months or whatever. You’re talking about Trump or Biden, no, Biden, Biden. So you know, with his sentence, six months is going to be the same as 18 months.

He’s going to have bodyguards around him. It’s going to be federal, it’s not a big of money and stuff like that. It’s almost like will smith and michael vick did they do shit? That was, that was fucked up, absolutely. But when you pay the price and some might say will smith hasn’t paid the price, but still the guy hasn’t- been in a movie in forever, other than the new bad boys movie, which I heard is terrible. And you look at Michael Vick right Goes to jail, loses $100 million contract.

I’m a believer, like, in forgiveness especially having friends that you know I saw go through the same thing. They didn’t have contracts in Ukraine making millions of dollars but you know, had drug problems and you know, if you’re able to get out of that and climb out of that hole, it not it’s. You know, it’s tough and everything. But again, it’s not about politics, just my personal preference. But I think that’s something that would heal the country. It’d be pretty cool. And if biden happens to win the election, which again he’s down a lot of states right now doesn’t look like it, but who knows, a lot could happen in november. But even if he wins, he’s got to be an idiot after he wins and not pardon your son, your family’s, first. I mean I’m pardoning my daughters immediately, one, you don’t have to worry about getting elected. Next turn, he’s dead. You gotta pardon the guy right, so we’ll see what happens. I mean, if he took that gun and started shooting everybody and going crazy, it’s a different story, but it’s how I feel.

Probably controversial, I’m probably gonna get the most emails on that, but I don’t know what your thoughts.

0:50:25 – Daniel
I’m curious to hear about that, but yeah, I don’t believe in beating the shit out of a guy when he’s down. Trump has a higher probability, in my opinion, to go to jail than Hunter. So there’s no pardon there needed. He’s not going to jail. That’s as rigged as the market is.

0:50:39 – Frank
Oh man, I don’t know. Yeah, that’d be interesting. I mean, a lot of people believe he’s going to jail. I think he’s going to jail, but we’ll see. We’ll see.

0:50:47 – Daniel
I don’t know, I don’t want to kick him while he’s down but, like I said, I’m just in the stands once again on this one.

0:50:52 – Frank
Listen. We’re going to be talking politics a lot, so if you can’t handle it, it’s too bad. There’s other podcasts out there you can listen to.

0:50:58 – Daniel
I’m sure they’re not going to give you the stock advice we’re giving you for the free podcast.

0:51:05 – Frank
To be honest with you, we give you lots of good theme Okay, it is with marijuana, right, it’s going to be in so many sectors, in alternative energy of how that gets funded. With climate change, energy is huge, right. I mean, you know the US becoming energy independent is the greatest Energy runs. The entire world Can’t have technology, can’t have anything with it. We’re energy independent.

And to stop drilling because of climate change, when we account for 12% of carbon emissions, when we need the rest of the world to do it and they’re not, and when we see China taking advantage of it, what are they doing? They don’t have oil, they don’t have the gas. What do they do? Massive coal, just coal everywhere, just producing, building more coal mines. And for us to lose that advantage. It’s a significant advantage from a national security perspective.

Drilling is going to be a big part of that right, depending on who gets elected. So there’s a lot of things. It’s going to shift a lot of capital in different areas, both. Now Biden, of course, is believing that we should keep the tax cuts, but a lot of this is going to have implication for your investments, guys. A lot, a lot. You saw when Trump got elected last time. A lot of people loved him. Mark Rook crash and went up tremendously. It’s just policies what policies make sense for certain sectors and certain sectors are going to benefit. So we’re going to be talking about this a lot and making fun of it Again, the back and forth and stuff like that.

0:52:20 – Daniel
That’s our job.

0:52:20 – Frank
Our job is to make money in stocks and a lot is going to be on the political spectrum going forward. So, again, if you don’t like it, buckle up. Buckle up, that’s okay, but we need to talk about it because it is going to have massive implications for your portfolio going forward, especially heading into 2025. I mean a lot of risk in the marketplace. We’re trading a super high valuation. I mean everything’s priced in for perfection and you’re seeing it with the market, right, daniel? I mean just the concentration is just in a few stocks. I mean, if you’re looking at small caps, small caps are getting annihilated, right. If you’re looking at even mid-cap names getting annihilated, you’re looking at some of these large cap names are starting to sell off as well. But you’re seeing Apple up tremendously. Then you see Nvidia right, nvidia’s taking a little bit of a break here, but it was up tremendously. So you see the S&P 500 hit new highs, but the breadth of the market is absolutely horrible and it’s usually a very bad sign for stocks. Now they could stay up through the election elected. It’s going to come down to cut deficits because you’re not going to be able to maintain and keep inflation under control going forward unless we stop spending and when you stop spending, you’re still in an economy. You’re starting to see it now at high interest rates.

It’s just a very risky market where you’re putting in money two, three years ago a dollar to generate $1.50, right, and maybe take on 20% risk. You’re taking on a lot of risk. From a risk reward perspective. It’s one of the most risky markets. It’s very dangerous. You have you know. If you’re buying stocks right now, you’re risking losing 20% to gain 15%, and it shouldn’t be that way. And that’s the way it is with a lot of large caps. Small caps a little bit better. They’re underperforming. I think it’s at a 20-year low compared to large caps. So I’m starting to see lots and lots of ideas open up. But again, that market with high interest rates, small caps usually don’t do as well, but they’re significantly undervalued. There’s a lot of good names in that space and a lot of names especially with an AI that are starting to use AI and see earnings explode and they’re cutting their costs, which is really, really cool. So, other than that, covered a lot today and the US Open.

0:54:14 – Daniel
That’s right. Enjoy the Open, everybody. Enjoy the.

0:54:15 – Frank
Open everybody. It should be pretty cool and I think that’s it. But other than that I want to say hopefully that TNT gets the rights to basketball. Do you hear that story? The best program.

0:54:27 – Daniel
There must be something going on, because when I was watching the hockey game, barkley was joining them for the first intermission and he said something about needing a job, so there’s some negotiations going on there.

0:54:38 – Frank
As a sports fan, the NBA on TNT is the best. I wouldn’t even say show, sports show. I mean, it’s one of the best entertaining shows. It just works, Everything works. Those guys are great. They love each other. You got Shaq there. Everything works. Those guys are great, they love each other. You got Shaq there. You got Kenny Smith. It’s one of the greatest shows. But they might not get the rights to basketball because it’s so expensive. If they don’t, someone’s got to hire that crew because, man, it’s just watching the NBA and the games on. The current coverage is absolutely horrible. The game is great, the game is fine, but it’s unwatchable. Listening Like halftime. I used to go to halftime just to listen to Barclay and these guys and Shaq. At halftime I fast forward right through it if I’m taping the game because there’s nothing that they say that I care about.

They’re just not funny. They’re not entertaining. To try to be, it’s terrible. Hopefully they get that and I think we’ll end there. Those are a. Once again touch me. How can I do it?

0:55:28 – Daniel
Daniel at CurzioResearchcom.

0:55:30 – Frank
And my email address, frankcurzioresearchcom. Thanks guys, so much for listening. You can attend our Wall Street Unplugged premium podcast, which is tomorrow. More information on that you can find at CurzioResearchcom. Appreciate all the support. Look forward to the US Open and I’ll talk to you guys tomorrow.

0:55:45 – Daniel
Take care. 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, your responsibility.

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