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 Main Street. 

0:00:16 – Frank Curzio

How’s it going out there? It’s June 18th. I’m Frank Curzio. This is the Wall Street Unplugged podcast. We’re back to the headlines and Tell you what’s really moving these markets. Daniel, how’s it going? Hello? 

0:00:29 – Daniel Creech

Frank man, another beautiful day I got my hair cut for you, so fresh and so clean. 

0:00:33 – Frank Curzio

You look nice and pretty today. Thank you, good to tell you you look good. So daggone hot down here, I thought you got it because Florida won the Stanley Cup yesterday. I know. 

0:00:41 – Daniel Creech

Congrats, congrats. A repeat, although I did get it wrong. I said five games, Frank, it was six. Six Could have been five, I have to tell you, though and they were winning in game five, and I went to bed and I woke up. 

0:00:52 – Frank Curzio

I don’t bet often, but I bet 500 bucks yesterday on Florida. Well, look at Frank. Only because I thought it was the easiest bet in the world. Because when Discussing who your goalie is going to be before game six and you’re switching back, it’s kind of like if you’re in a Super Bowl and you’re discussing who your quarterback is going to be that game, you want to talk about total chaos and just throwing in the towel. The last two games, man, they were not pretty. It looked like Edmonton just didn’t Look. 

Florida had a much better team, had a much better team. I think they set the record or something for the most people with I think it’s over 20 points, just their second line. You know you have your greatest players on Edmonton, everybody knows them right. And then you have your greatest players two or three right. But when you go down the line to compare, I mean Florida is extremely deep and it showed they just tired them out and you know, congratulations to Florida, it was great, but that was one of the easiest bets ever, right. When you’re discussing goalie and flip-flopping the goalie in the last three games, which is insane and the second goalie got killed yesterday, a couple days ago in game five and now in game six, it was just it was going to be a disaster. You knew it was going to be a disaster, so it was a pretty easy bet Edmonton two times in a row that they made it. I know it sucks, because only Don’t bring that up. 

0:02:04 – Daniel Creech

I know, like they said somebody quoted there’s no silver lining. Yeah, there’s no silver lining. 

0:02:09 – Frank Curzio

There is no silver lining. I mean, try telling Conor McGregor that Sucks to come up short. 

0:02:12 – Daniel Creech

Been there, done that, Sorry not on that level, of course, but yeah, but no. 

0:02:20 – Frank Curzio

People with game six and see if Oklahoma City can put him away, which would be interesting, especially since that best play is kind of hurt. 

0:02:25 – Daniel Creech

now Is this the easiest bet. 

0:02:27 – Frank Curzio

No. When’s the next game? Is it tonight or tomorrow? I’m pretty sure it’s tonight. It should be tonight. I mean, I think they have two days off now, so it should be tonight. And if it’s tonight, you know Halliburton got hurt. 

0:02:40 – Daniel Creech

He’s their leader. It’s a manana tomorrow. 

0:02:41 – Frank Curzio

The 19th Is it tomorrow? Jeez pushes shit out so far, but you know it’s going to be hard to win without him. It was going to be hard to win with him. I think they put up a good fight in the series, but, yeah, I think it’s going to be over by next game. We’ll see, but I wouldn’t be betting that. I wouldn’t be betting that. I mean some reason the team plays 10 times better without their superstars, even if it’s missing a quarterback, even if it’s missing, like the top tier in whether it’s hockey or basketball. It just seems betting wise. You think it’s like an easy bet. It’s not easy. This one was easy. This was an easy bet, I think. But when it came to the Stanley Cup, this one won’t be easy. Let’s see. It’ll be a blowout. It’ll probably be a lot closer than I think We’ll see. 

More important about the markets. The Fed is meeting today. Daniel, what are you expecting? I mean, the market’s just like blah. But I feel like we’re doing this before the meeting, a couple hours before the meeting, and all the time when I report this I’m like you know, oh, the Fed’s not going to cut and they’re going to be like, ok, hawkish, definitely not dovish, but you know, and next thing you know, you’re going to see the market up or down 300 points. There’s a lot that can move the markets of what they’re going to say. They’re not going to do anything, they’re not going to touch rates, but it’s what they’re going to say, what everyone’s going to be listening to. What are your expectations? And what’s Fed going to say is going to drive the markets higher or lower. 

0:03:56 – Daniel Creech

I think unfortunately did you see Trump’s comments or kind of in brief press conference while during the flagpole thing today. 

0:04:13 – Frank Curzio

No, did he call him stupid? 

0:04:14 – Daniel Creech

Okay, of course he called him stupid. 

0:04:16 – Frank Curzio

again, I was going to say so, the expectations are for no cut, followed by a few Trump tweets calling Powell an idiot. So those are the expectations. 

0:04:23 – Daniel Creech

Yeah, the aggravating thing is my opinion. Listen, they have no pun intended. They have the best Trump card. They can play the uncertainty card, which makes them look silly. In my opinion, they can claim to not be political. I’ve already explained they’re extremely political. Whatever the point is is that since Trump made those comments today, which shouldn’t shock anybody I think the Q&A is going to be kind of overtaken by that, and Powell’s been very good in saying hey, I’m not going to comment on that, this and that the other. 

What I want people to focus on and listen for is everybody’s all of a sudden this fiscal hawk and wants to really get our house in order. And all these guys Republicans, democrats are such spineless lying idiots. It’s just hilarious. If you don’t learn to laugh at it, you’ll go insane. It’s hilarious. If you don’t learn to laugh at it, you’ll go insane. 

But here’s what to listen for, because Trump’s now claiming hey, Frank, I need lower rates because we’ve got to refinance all this debt. And of course, every politician blames the other one. So guess whose fault it is? Of course it’s Biden’s fault. He did so much short term debt. If, if power just lower interest rates, we would save all this money on the debt payments, because what are you hearing about right now is the big beautiful bills getting tossed around debts, deficits and all that kind of stuff. 

I think it’ll be much ado about nothing. What I would like to get into, Frank, and hear your opinion is I think that the question should not be about what’s Trump saying about you, because that’s just political clickbait and headlines. What I think they should talk about is why are you not lowering? Because everything you’ve been saying is now in your favor. So tell me now again. They’re going to just do the same old song and dance. But if you don’t think the listeners out there, if you roll your eyes when Daniel Creed says everything is political, then you explain to me how Powell is not being political. I don’t have to. 

0:06:00 – Frank Curzio

So let’s hear it, Frank, listen, you know we discuss topics and we don’t tell each other how we’re going to approach it. And we, Frank, listen. You know we we discuss topics and we don’t tell each other how we’re going to approach it, and we just go on here and go at it and we could disagree and agree. I am 100 in agreement with you. I have no idea why Powell’s not lowering rates right now. I mean, inflation has fallen off a cliff. It’s, it’s absolutely crashing. If you look at the last six months, it’s crashing. You can look at the charts. You could say, Frank, you’re crazy, I’m paying. I’m just talking about the gauge that they look at when it’s the PCE or the CPI or whatever. They’re crashing, they’re completely crashing. Inflation expectations are now down to 3%, along with the three to five-year expectations, which are a big deal. As the Fed looks at right the three years under 3%, the five-year expectations is 2.6%. This was the reason Powell said we need to see inflation come down closer to the 2% level. It’s trending there. What are you going to wait until it gets 2%? It’s trending there right now. 

We’re seeing that tariffs aren’t having the effect that everyone thought they had, because maybe people already raised prices and there’s alternatives for different things. You can’t just raise prices today. You can’t say, wow, well, because of tariffs, we’re going to raise prices. If you’re a food company or whatever, you’re going to go someplace else and it’s going to be alternative that they’re not impacted by those tariffs and they’re going to keep their prices lower and and consumers are going to adjust. And you, you want proof of that and more proof that why the fed should be cutting. 

Look at retail sales. I, retail sales fell off a cliff, right. It’s not just retail sales, right, so it’s retail sales that have fallen off. Uh, down, nearly one percent, down one percent. When you see retail sales actually decline. Funny, because april’s retail sales number that was higher than expected got revised to the negative as well. You’re seeing this happen. You’re seeing with the housing market really starting to pull back in terms of prices. Starts and building permits just came out. That was early today, much worse than expected. Homebuilder sentiment is at pandemic lows. I mean, who the hell is buying a house right now? Who could afford it? So you’re throwing in higher oil prices and other extra costs most consumers can’t afford and you can say, well, that’s temporary fund, that is temporary, okay, but still everything else is not temporary. When you’re seeing the pullback in retail sales, when you’re seeing home prices coming down now across the board, even in good areas, I just I can’t think of one reason why the Fed is not cutting Politics right, I can’t other than that, because the Fed funds futures they’re predicting. 

By the way, they’re predicting their first cut to come in September. Now what I’m looking for and what could drive the market 300 points either way, I think we’re going to see a 300-point move. I like saying this because we’ll talk about Circle in a minute. It was going to open at 32. I said it’s a $100 stock. I didn’t know it was going 100 that day. We said the same thing with Coreweave, right. So I like talking before because you know it puts the pressure on us. That’s what we do. You basically follow us, follow this podcast, to make predictions, and a lot of people like to make predictions after the fact and play a money-money quarterback. I like to make predictions before they happen, to see what happens. So I’m saying that after the Fed meeting the market’s going to go up or down 300 points based on this. 

Powell has always operated where he doesn’t like surprising the market. That’s most Fed chairman. He needs to talk about the cut because it’s happening in September if he’s going to do it. So he can’t go on with his normal speech pattern over the past 10 meetings. Oh, you know what? Well, we’re okay and we see no reason to cut this and that you can’t go on with that Inflation. You see inflation come down tremendously. The job market is still okay. You know employment is pretty strong. So you know you could definitely cut now. But, based on what he’s going to say is really going to move the markets. Because if it’s the same tone that we’ve seen and we’re not going to see a cut by September, you’re going to see the market just to that. I bet you the market’s going to go down over 300, 400 points. Uh, and if he actually is more dovish and saying, hey, you know what we may and he should be saying that because September’s around the corner, it’s not that far away. You got September and December. You got three meetings, I think, left for the rest of the year. Okay, remember, we’re supposed to have six cuts, five cuts. Now it’s one, two cuts 2026, it’s three, four in total, right? So 2026, are you kidding me? That’s it. I mean that’s crazy to think. 

2026, with a new Fed chairman coming in, elected by the President of the United States, trump. Who’s going to tell that guy basically, I’m going to ruin your life unless you listen to exactly what I say. Whether you like that or not, that is going to happen behind closed doors. That guy is going to lower rates tremendously, at least by a percentage, maybe a percentage and a half next year. But right now the Fed what Powell talks about is really going to drive the markets and he cannot say if he, if he intends, with the market expecting a cut September it’s not that far away. He cannot have the same exact structure, the same tone that he’s had in past meetings. He’s got to kind of hint at that going forward. 

If he does, we could see the market go up a lot. If he doesn’t, you’re going to see the market pull back because the market has no reason why. Based on his own words. I want to see inflation lower. Unemployment has stabilized Everyone. Unemployment is historically low. We’re doing fine. He could actually cut rates and I think he needs to. He. He could actually cut rates, and I think he needs to and he start. But there’s no reason why he shouldn’t. 

0:10:47 – Daniel Creech

So, part of the other thing I want to one thing that Trump said today he foreshadowed this and, like him or hate him, he foreshadows and he’s transparent. He said, Frank, he talked about the debt coming due and, like I said, we’ve been hearing a lot about that and you can look at different examples, but you can say, hey, if we cut one full point, we would save X amount in interest payments. Or if we cut whatever Frank Trump actually said, we could cut one point, we’d cut two full points. I mean, the guy is just beyond, says whatever he wants. He said, Frank, listen, Biden’s fault because he did all short term debt, or mostly short term debt. And, for context here, basically the government, Frank, is refinancing nine to ten trillion dollars in fiscal year 2025 for bonds and stuff like that. To put that in perspective, that’s 30 percent of GDP. That’s on the high end of historical, obviously. But the point is Trump said, listen, we’re going to refinance all this short term debt and that’s why we need lower rates. Refinance all this short term debt and that’s why we need lower rates. Well, basically, I’m just going to refinance the short term stuff until my guy gets in there and then we’ll focus on long term debt refinancing. 

He is saying, hey, the next guy is going to cut rates, pal, needs to do it ahead of time. So you got like I said you can love him, you can hate him, but that’s what’s going to happen. Don’t fight that. Let me real quickly give Frank I’m glad you’re sitting down here Let me give you a Fed Chair Powell a bone here, because in Fed Chair Powell’s defense he does have the easiest card to play. Listen, we have uncertainty. We don’t know how these tariffs are going to impact the economy. We don. And this true inflation. Is that? I’ve talked about trueflation, excuse me. That does real-time data. It now shows the US inflation index at 2.12%. Now, that’s the rise of inflation, not the cost. But that is up significantly from about one and a half just a month ago. Okay, so he doesn’t look at that data, supposedly. 

My point is he has the perfect card of uncertainty, but at some point and I’ve already way past this how do you not lose character and credibility when you just keep saying, oh well, there’s just too much uncertainty. Oh, there’s just too much uncertainty. Yes, maybe tariffs come into play down river, but you have to pay attention to the present right now. And again you’ve said in the past you’re not going to wait until inflation hits your target, you have to cut beforehand. And now you’re not doing it and the only reason is because it would make Trump look good and that’s a no-no in the inner circles. And I know real quickly Daniel@CurzioResearch.com. Well, trump nominated Fed Chair Powell. Yes, he did Look at how many terrible, awful people have backstabbed or gone against the wishes of the sitting president during his first and second administration. So just because Trump says a nice thing about somebody because he’s got a long list of Phil doesn’t doesn’t mean that they’re best friends. So just understand that. 

0:13:37 – Frank Curzio

Yeah, and I don’t know about the true inflation figure, how it’s calculated. All I know is the only thing you should care about inflation Seriously. I know I pay my bills, just like you guys pay your bills. I know inflation has been going up. I’m not even talking about since 2022, right and post COVID, when our government decided to spend like maniacs, trillions and trillions after the fact that all asset prices were at all time highs at the end of 2020. Even before that, we see, we know the bills we pay and I always said 20 years, listen, ignore that, because it’s not what the Fed looks at. Okay, it’s not going to make you money in the stock market. Okay, you got to focus on what the fed, which is pce, which is a cpi that’s still looking at, and those things are crashing. Now, if Powell comes out and pounds his chest and says I hate Trump or whatever, I’m not lowering rates, whatever it is, uh, the market pulls back. The market pulls back considerably. Buy the shit out of it, just buy. 

Next year, we’re going to have a new Fed chair, which Daniel and I just discussed. I mean, they’re going to lower rates. Incredibly, that person. Couple that with deregulation, which is coming for the banks. They’re going to be able to lend out more money lower taxes, higher government spending, which we know government spending. They’re not going to slow down anytime soon. We know by this bill that he’s trying to pass again, and I’m not taking sides. I don’t care if you’re Republican, I don’t care if you’re Democrat. The only thing I give a shit about is making you money, and we’ve been doing a great job doing that, especially over the past six months. You should be up on a lot, a lot of stuff that we’ve been talking about special individual names, getting emails, getting you know which is really great, which is why we do this right for to continue to spend money, which is great for asset classes. But when you look at everything that’s coming down the line, you have a clear recipe for assets, notably stocks, to go considerably higher by next year and if the market pulls back, I’d be buying on that pullback. So let’s see what he says. 

We’ll address that tomorrow in our Wall Street Unplugged premium podcast. Again, that’s $10 a month that we have. We’ll really get into details. We have a whole portfolio of trading opportunities A lot of the things that we talk about, you see, in that portfolio, which we’ve been up a lot on, which is fantastic for our investors. So that’s a more detailed podcast. If you want more information on that, you can go to CurzioResearch.com and subscribe Again. It’s worth every single penny considering the amount of stocks that we talk about and recommend right Probably 40 to 50 stocks a year that we’re recommending as trading opportunities in that portfolio, which is really cool. But we’ll talk more about the Fed tomorrow on that podcast, but for now let’s move on Daniel and talk about crypto a little bit. 

Stablecoin bill passed the Senate. It’s a genius act. No surprise, it moved through very, very easily. Again, you had problems and it passed, but now it passed very, very easily. Now it moves on to the House. Expect it to pass the house as well before the August recess and it’s a very big deal. 

When it comes to stablecoins, there’s lots of plays in there. We told you about Circle, which we noted and said you know, buy Circle. People don’t understand how big the stablecoin is. This is a trillion dollar, $2, $3 trillion, maybe a $5 to $10 trillion market. Two to three trillion is what the government is telling you that market is worth. Circle is really one of the only pure plays and we said when it came out, you could have bought it under 90, it’s 170. And under 90 was the first day it closed under 90. We opened at 32. Even when it was 32, and we’re talking about Circle before it opened I said listen, this is $100 stock. People need to understand how big the stablecoin market is. It’s massive. It’s disruptive. Now you got laws in place right. There’s always disruptive within crypto. 

That the banking industry was scared shit about. It’s the reason why they lobbied Biden so much where he tried to shut down the entire industry. We got debanked in January 2023. The banks they went after two of the banks they illegally shut down. Those banks told everyone don’t do business or you’re going to get audited. That’s Operation Joke, point 2. That really happened and still happening, and they’re suing the government. There’s certain lawyers that are suing the government. That won against the government. Last time Obama tried the same shit against certain industries. But Circle is the play here. It’s 170. It’s probably going a lot higher, but you had the chance to buy that on the first day of the close a couple weeks ago under 90. 

If you’re looking at other banking plays, JP Morgan came out with a nice list today Q2, alchemize, encino were a couple of names, which are digital banking right, those are some plays, but this stuff’s for real. It’s probably going to pass before August, which is when Congress takes their break and their recess, and Trump wants to get this passed and it will get passed and it’s going to be very, very good tomorrow. Very good for customers, very good for everyone involved other than the banks, because they’re going to see their fees come down. But there’s a reason. What was it? Walmart and Amazon both exploring this, launching their own stable coins? Everyone’s going to be launching their own stable coins. It’s a very, very big market and Circle is almost on an island by itself that you could play. 

Tether is, but you’re not going to get equity by playing that. We’re talking about circle. You’re going to get equity in the stock and, man, their total addressable market is bigger than Apple’s total addressable market. That’s why the stock is going higher. Look at the total addressable market. Don’t look at the P ratio now or what’s going to be a year from now, because you would have missed Pal, the best in that industry, and you can capture a large percent of that total addressable market. Your stock is going to skyrocket much, much higher and the valuation levels are going to be insane when you look at them at the beginning, but they’re going to factor in, they’re going to build into that valuation over time because they are the leaders in a massive total addressable market. When you’re looking at AI, when you’re looking at stable coins, those are two markets Circle, Palantir, and Coreweave. Those are names that are just dominating right now and you’ve seen the stock price and all three of those, their stock price is going to continue to go higher. 

0:18:54 – Daniel Creech

They do have a lot of momentum Circle’s up again today, like you said, 170. Yeah, that thing’s on a tear. It’ll be interesting to watch now that the Senate kicks the bill, this genius bill, to the House. Just watch and see what all the BS Republicans and Democrats ask for. See their true colors there. It does pave the way, though. 

If this doesn’t pass, the bigger picture to me is to your point, Frank. Jp Morgan is talking about doing some sort of a stable coin settlement and payment. It’s not open, it’s fixed to them, but it’s either on with Coinbase or something. I read just a quick announcement on that. The takeaway there is the big banks have to get involved with this or be left behind. The dam has broken, as Frank jokes about the good old boys club, no doubt, and you have to give credit to Trump on that because it’s passing. 

But the excitement thing is there is that this is going to take over in the back end. Again, I don’t think the average Joe gives a flying Florida about how the money works on the back end, as long as you trust it. I’m in that camp. So just to see the interconnection and how crypto and these stable coins are going to provide the quickest thing everybody’s going to notice is hey, I can move money cheaper and faster and you don’t have to wait as many days to get your money. It’s just more convenient. 

So we’ll have to see more details Again. The irony here is that this is the one of the last grasping at straws to save the bond market, because you’re going to continue with this and the deregulation on banking where you don’t what’s the the term I just lost it where they have to, where the big banks buy treasuries and then have to put money aside. I can’t think of what I’m saying, but they’re going to repeal that, which is going to create an appetite for bonds from big banks, and then you have a bigger appetite with this stablecoin thing. Keeps the empire going. 

0:20:40 – Frank Curzio

Oh, by the way, you mentioned that last podcast. I think I don’t know if it was a premium podcast or not, Daniel, but I remember you talking about how they’re generating interest on the short term right through Treasury window and stuff like that, right to the Fed window. You mean Circle, not Circle the big banks, remember you said, I guess, when it started in 2008,. Remember that? 

0:21:00 – Daniel Creech

Oh, yeah, because Cruz is offering or suggesting that they quit paying overnight interest to the biggest banks. 

0:21:07 – Frank Curzio

Overnight interest. So you know that was the original bailout plan, but it didn’t work. Do you know that? So when you’re looking at what I was thinking about that I was reading up on it too I was like that was the original bailout plan. That didn’t work. And then one of the guys was suggesting look, we got to capitalize the banks. Everyone’s like no way, no way. That’s like you know nationalism. No way, absolutely not. And then they tried to buy all distressed assets and they said it’s too long and they need something done, like in a day or two, before the whole entire financial system collapsed. And then they decided to say, hey, let’s give all the banks like this ton of money. That you know. Again, they did whatever they wanted with. It was the point of it, but that was the original plan, right. So they’ve taken that back. Ted Cruz is right Also on a side note too. 

0:21:51 – Daniel Creech

did you see the interview with Tuck Carlson and Ted Cruz? Well, it’s not out, just the highlight. 

0:21:53 – Frank Curzio

Yeah, definitely watch some of the highlights. There’s several highlights in it that I saw. That was pretty good. We just, you know, talk about it because we not to jump around here. But I just want to say you know q2, alchemy and cno as names of play on on. You know digital banks and stuff. Q2 and alchemy provide software for regional banks, credit unions uh, you know again two groups that are all over this trend because they’re going to try to compete with the big guys. And cno is a class stock talented banks. Those are three names that jp morgan likes. 

You know again, we continue to say by circle here, as it goes higher and higher, it’s going to go a lot higher. We’ve been saying that the whole entire time, uh, but when it comes to the big story, is iran right, tensions heating up with israel, oil prices surging now over 75 dollars a barrel, as you know, they bomb each other and you know oil’s up 20 in a month. This is an area that you should have lots of exposure to. We have lots of exposure to. We’ve been talking aggressively on this podcast over the past two, three months about one of the best risk-reward sectors to own in energy and natural gas and stuff like that and so far it’s been doing pretty well for us. 

0:22:59 – Daniel Creech

Oh, I missed that handoff. Yeah, like I said, I’ve been big on oil and gas. I’ve been big on oil and gas. I’ve been wrong on oil, especially in the price direction. But if you’ve bought an EQT or Antero Resources or Range Resources or Vistra, you’re up anywhere from 90 to 60%. Natural gas was about a year ago, if memory serves me correct, it was around $2. It’s around $4 now. 

0:23:24 – Frank Curzio

One of the best trades you said One of the best trades EQT those natural gas and LNG exporting companies. 

0:23:31 – Daniel Creech

producers, in my opinion, are still a no-brainer. I’ve been wrong in the short term recently with ExxonMobil and Texas Pacific Land, but I don’t want to see oil rise for the wrong reasons In my mind. What wrong reasons are war, but they are going up. I’m not. I’m not adding to these on this. I hope that this isn’t a long drawn out. My big fear is and I think a lot of fear is is Iran, another Iraq and that would be another just horrible black eye on the US? So hopefully that’s not the case. But the short term pop in oil prices. I don’t think it’s an investable trait just yet. Let me put it that way what do you think, Frank, I guess? How long do you think this is going to play out? 

0:24:12 – Frank Curzio

I’ll be straight with you. I know we’re approaching $75. That’s where we were in January, so not a big deal. 2022, over $100 a barrel. We probably averaged around $80. We Average around 80. We’re within the 72, 73, but we’re also 90 through early 2024. So I would say we average around $80 through 2024, maybe approaching those levels. We could see oil hit $100 a barrel if the shit hits the fan. 

And major CEOs so the major oil companies, a lot of these CEOs whether they had Shell, enquist, total, on CNBC they are warning of what could happen. And I’m going to tell you something they’re not talking their book. I mean, if they were, they’d say, hey, there’s nothing to worry about. Who cares? All this shit blows up. Oil prices go higher. We make money. I know oil companies for a very long time. I went to every Shell area. Higher oil prices are not always great for them, right? You think, oh, they’re going to make more money on existing property. It depends, right? There’s a lot of stuff that goes through. Some have the infrastructure. Some could turn on oil right away. Some don’t have that. Some produce at different prices. But they’re saying that this is a serious threat. 

And these guys are really worried because if Iran is backed into a corner or if anything happens or something happens to the Straits of Hormuz you, straits of Hormuz, you probably heard that term a lot. Some people know, everyone in oil knows what that means. So, the Straits of Hormuz, let me explain it to you. And you already seen some ships trying to avoid, and if you look on a map, you’re going to see why it’s so important, because a lot of 20% of global petroleum liquid supplies flow through the strait every day, which is roughly 20 million barrels of oil day flow through this. You’re seeing some companies, shipping companies trying to pull back and avoid the ones that can by using pipelines, but they can only process through the current pipelines another two to three million barrels of oil. 

Remember, it’s 20 million barrels of oil per day. It’s massive, massive supply disruption on a scale that we really haven’t seen since the 70s. Now, close to 85% of the crude and condensate that moves to the straight harm moves, Daniel, 85% of it. Do you know where it goes? No, asia, china, india, japan, south Korea. 85% of that goes to Asia. Yeah, okay, yeah, but not all. 

0:26:25 – Daniel Creech

Yeah, 85% of that goes to Asia, iran. Basically all goes to China. You’re talking about everything. 

0:26:32 – Frank Curzio

Most of it goes to China, but 85% of it goes to Asia, most of it through China. Now, if you haven’t been keeping score, maybe you don’t know your politics, maybe you don’t know population. China and India are home to a lot of people. Both have over a $1.4 billion population compared to 350 million for America. So you’re about to piss off 2.8 billion people, 35 of the world’s population. Probably not a good idea. So if the us decides to engage and by engaging I mean they’re actually saying that they’re going to roll with Iran, because if you look at you know, Cruz and Tucker Carlson call them out on this, because Tucker Carlson believes we shouldn’t even be near that war, like it has nothing to do with us. We shouldn’t be near it unless they really truthfully have, you know, nuclear capabilities, which, by the way, we’ve had. People inside the administration say they weren’t there yet in March. Right, so maybe they do, maybe they have more information, I don’t know, but I do know this If we happen to be engaged, because Cruz said we, and he goes what do you mean? We? Are we in this war? He’s like no, no, no, no, no, no, but we’re helping. He said but you just said we, meaning the US is in the war. If we are in the world’s most populated countries, the most important resource and commodity on the planet, right, we need to get it to 2.8 billion people. So just to do this without discussing that with them is pretty crazy. So if this shit really hits the fan and something happens to the Strait of Hormuz you know basically 85% of the oil that’s flowing to Asia oil’s not going to go to $100 a barrel, it’s going to shoot to $150 a barrel in the blink of an eye. So you need exposure to this because if everything goes okay, we’ll probably see oil prices pull back a little bit. Just, the risk-reward is to own energy stocks, because if shit hits the fan, you’re going to make an absolute fortune on it, and if it doesn’t right now there’s no supply disruptions in Australia but if, uh, but if we lose access to that, uh, by going to war with iran. Look out, and it’s probably why trump at the g7 meeting in canada, which is supposed to be his meeting, talking about tariffs and everything, with all these people and tons of negotiating, he left. He said I gotta get the fuck out of here. Okay, we gotta go back and see what’s going on and that’s the conversation he’s probably having. It’s not just with Iran, Israel and all this shit with okay, if this shit hits the fan. You got to feel China, you got to feel India. These people are like whoa, you’re cutting. 

People think technology rules the world. No, it’s oil. Okay, oil rules the planet. That’s why we became even exceptionally powerful once we discovered shale right. Then we had this unlimited amount of oil and natural gas so much natural gas that we actually burn the extra natural gas right. So I mean, we have tons of it almost in a limited supply, which sounds crazy geologist, but if oil prices go to 300, we can dig deeper and deeper and deeper in these shale areas, which makes it economical. Believe me, I went in these areas. It’s incredible how much we can produce and the technology that we produce that they hit 100% of the time. They know exactly where it is. 

Long oil in the worst case scenario, because if there’s just mild disruption there and tensions could heat up between us and Asia and different nations, look out because oil could absolutely skyrocket from here and if it doesn’t, these tensions are still going to continue. Iran all the stuff’s not going away anytime soon. That’s why Trump’s probably like, hey, threatening them through social media, saying you, you know, just back off. That’s the easiest solution because if they keep fighting and they know that Asia has their side, that’s where they get their oil from, guys, that’s where they get their oil from. So it’s going to be interesting how politics plays in this. 

But from a perspective of owning stocks and making money off this, which is what this podcast is about own these oil and natural gas stocks. Natural gas stocks we’ve done tremendous with. I think oil stocks have another leg up from here. They’ve been up along with oil going up. What 15%, 20% in a month from this. I don’t see this problem getting resolved anytime soon. Even if it does, maybe oil prices come down a little bit, maybe oil stocks? I think you’re risking 10% to make 100% from right. That’s a really good risk reward of why you should be holding these and even buying some of them, because I don’t think this problem is going away anytime soon. I just don’t see it. 

0:30:30 – Daniel Creech

Yeah, and JP Morgan’s out, you know, with a big, high price target on oil spiking for reasons that you just said. Hey, this could get really bad really quick. Yeah, I mean hey for everybody out there that doesn’t believe in a deep state. You are seeing it, if the war machine drags Trump into this, then, uh, we have to see how this plays out. My only uh word of caution here is don’t be like the idiots in media, and every time trump tweets something or says something, you take that and run with it and exploit it. Um, you know, like I said, he said evacuate Tehran, and everybody was running up. Well, U.S. is going to bomb Tehran. 

0:31:05 – Frank Curzio

Well, okay, maybe, maybe, so but that’s his way of communicating, saying look, could you, could you, could you dial it down? 

0:31:10 – Daniel Creech

corrupt media you have to go to and here’s my point CNBC, Wall Street Journal. They are beyond unwatchable and it’s not just because they’re anti, they don’t even quote him correctly, like I was watching CNBC and briefing.com that we use we don’t get paid for uh, we should, but actually they’re just as bad as everybody else. But what’s funny is that they’ll take a quote from Trump and they won’t if they deem that it’s negative, like when he said attention seeking, uh, Macron, overseas. They edit out that some of it because they want to play God and act like that. You know they get to decide what people see and that’s disgusting. So just don’t rush over them, and or don’t rush to them and believe them is my point, Because if we get sucked into this, that’s going to be a prolonged awful situation. We have to see how that plays out, but don’t act like the free Florida media knows what they’re talking. 

0:32:01 – Frank Curzio

Yeah, and for me, I really don’t give a shit what anyone believes. I believe what you want to believe. I don’t care, whether politics or whatever. If you believe in imaginary people, whatever, I don’t care. What I do care about is, you know, you making money for your families, being financially secure, creating generational wealth, and when you do, and you look at the situation, I don’t see it going going away anytime soon. 

And you’re right with all the bullshit and the tensions, I mean, this is what they want, right? And even Tucker talked about Fox Business and how you know he’s like look, I love the Murdochs, they were great, even on the way out. All this stuff he goes. But you know, the one thing I hate about them is they love to promote war. They love to promote war. They want us to go in war to other countries where we really don’t have a lot of at stake there, and people might say, well, they’re gonna have a nuclear weapon and and, okay, maybe that’s true. I mean we’ve heard that story before with, uh, you know, last time went to war in the middle east, uh, but it, it. 

It seems when you’re looking at this problem in politics, you could get caught up in all this stuff. But it’s not a matter what you believe in, it’s just a matter of you know what is going to happen. Right, it’s same with the same with the Fed, same with inflation. I mean, people believe, well, we’re inflationary times. It’s crazy. But you know what? According to what they look at, it’s not inflation, meaning that inflation is going lower. We’re seeing it crash on levels where inflation has been incredibly high past four or five years. But when we look at it as a whole and take a step back, it means that the Fed’s pretty close to cutting rates. They’re going to cut rates and they’re going to drastically cut rates over the next 12 months. Whether it’s going to be Powell or the next Fed chairman that comes in in May, they’re going to start cutting dramatically. 

So adjust your portfolio, all right, and just like you’re adjusting your portfolio for oil we just talked about, you know how oil companies, infrastructure companies, should do pretty well. You know who’s not going to do well. Airlines and auto stocks least fall when oil prices surge like this, and we’re seeing that. So you know airlines have a lot of that oil hedge, not all that oil. Uh. Auto stocks as well. You’re probably going to see them fall a little bit. Uh, not so much tesla and electric, but you know, uh, those are industries that don’t do well. It’s always industries that do good and well, depending on situations, through politics or whatever. It’s. Not everything does great all the time, unless you have this massive government spending that we’ve always had, but still that there’s stocks and sectors that are going to do good. 

I would avoid airlines and auto stocks. I don’t like auto stocks at all. I haven’t liked them for a long time. I warned you about them and how terrible they are and inventory concerns and stuff like that that they’re still going through. Uh, and now tariffs, drawing on that as well, as it’s insane. Uh, airlines kind of expensive here as well. Uh, according to historically, you know they usually trade, but in oil stocks, I think, are still relatively cheap for what oil prices are and they can go a lot higher after shit hits the fan, which is very, very possible. That I talk about war with all of Asia, I’m just talking about if we limit just a little production, if we see production getting hampered in the straight harm moves, you’re going to see oil prices pop to $100 very, very quickly, and you know there’s a lot of money to be made there, so we’ll see how that plays out. 

0:34:48 – Daniel Creech

Yeah, Last thing for me I’ll catch the Senator Cruz and Tucker interview. I encourage you guys all to. But what I would say is for proof those of you think I’m crazy or insane, instead of being crazy, go look at the headlines of Tucker Carlson and Steve Bannon’s interview and then go listen to that. I just listened to it, the headlines I read four or five headlines and small articles. They have zero idea what that interview is about. That’s what I’m talking about. 

0:35:13 – Frank Curzio

Good stuff. So another story I’ve been going to is Meta trying to poach opening eye top employees one of the top read stories out there on investment platforms. 

0:35:23 – Daniel Creech

Frank, let me tell you my loyalty to you. If they offered me $100 million, I’d still stay here and work for you. Oh, I love it as long as you offered $100 million, as long as you matched them. 

0:35:32 – Frank Curzio

Yeah, I’d tell you to go and take $20 million of it. 

0:35:34 – Daniel Creech

So if that works too, You’re lucky I kept you around this long Give me $25 million. 

0:35:45 – Frank Curzio

Yeah me that I’m out of here. Just let you know now. So, but, uh, no, I appreciate that, but, um, you know, sam aldrin is pissed at this, and I guess my question is is a couple of how can’t you expect this? I mean one, it’s business and business cutthroat, especially when you’re jockeying to be number one in the greatest technology trend we’ve seen over 25 years, with a total just a mark in the trillions. Uh. Second, it’s Mark Zuckerberg. Mark Zuckerberg, okay, I like Zuck. I like Zuck because if you’re a shareholder, you should like Zuck, but as a person, man, I mean, he stole the Facebook idea completely right from the week of August. It was like running through campus when they were chasing him. By the way, those guys are pretty big. They were on the rowing team for you to know. 

Remember Cambridge Analytica, right, getting data illegally From Facebook users For political purposes? They did again. They’re the Biden administration Basically suppressing Conservative accounts. Uh, so, and if you want to think about that for a minute and say, well, there’s a lot of platforms that do it, yeah, you know, but Google will come out and tell you hey, we hate you because you’re conservative to your face, like they would say that, like Facebook, their religion, what the company is founded on, is connectivity, spreading knowledge to everyone, right, connecting people, no bias, right. And then they turn around and they’re like suppressing certain people. 

This is him running that company basically kicked out the instagram followers. You have to acquire the company, you know, almost forced them to leave uh, lobbying, bribing government officials since that’s what lobby is to ban tiktok, who’s their number one competitor. And then, when that didn’t happen, they basically stole the exact same idea for short videos and creating reels, which is fine and that’s open season. But you know, you’re looking at a guy where, if you’re a shareholder of Meta, you love Zuck and you should love Zuck, but I wouldn’t trust this guy to watch my dog for 10 minutes. That’s one thing, Dan. The other thing is who, zuck or Altman Zuck that’s one thing. 

Altman is another story. I mean that’s the last guy I should be complaining. I mean, when your own board outs you, think about that. Yeah, there’s definitely trust issues. Employees came to his rescue. You might say well, the employees really love him, that’s why they got it. Listen, your board knows you. They know everything about you. They know inside, outside, they know how you conduct business. 

And they said he lied about a lot of shit, including how he didn’t have a stake in OpenAI’s startup fund. And it turned out that he did. So he lied to him. He lied to him several times. He released the actual first version of ChatGPT, Altman released without consulting his board. First. He said I’m just releasing this shit, you don’t do that. So they got rid of him. Think about that. 

Openai also had told us about safety concerns. Why senior safety advisor, chief scientist of OpenAI they left on the same day. I mean I can’t tell you how many people left because they’re like we can’t go with this company. We just, you know, ethically we don’t want to be part of it. I mean so all in complaining how Zuck is an asshole and trying to steal his employees, I consider that like Charles Manson calling Tim Bundy a degenerate murderer. It’s like are you kidding me with this fight? But it’s pretty crazy. It’s not surprising of how much money he’s trying to get these people for. 

And it’s business. That’s the way business is conducted. Listen, if someone poached my employees, you know people want to complain and bitch. I wouldn’t bitch. I’d be like what am I doing wrong to not retain my employees? And that’s how you have to look at business, because you know the bottom line is and I mean this and this isn’t good for business and people or whatever. But I’m going to tell you as an employee, if you own your own company, it’s different. But as an employee, you should always 100% do what’s in the best interest of you and your family. And sometimes that results in employees leaving and I said, hey, the best to you, hope everything is good. I don’t take it personal. 

Someone I was going to hire, offer them 135% more than what I was going to offer them, and I knew it was going to be temporary. And they were like oh, I said you have to take it, take it. They’re like I’m so sorry. And we were negotiating for like two months. I said it’s fine and now shut off. That person’s coming back and saying things aren’t working out. I said that’s why they get rid of you right? 

So you want to be careful in your decisions, because when you make more money, you open a door to getting fired right away. You open a door to much more competition, and someone who’s very smart a lot smarter than me always told me, when it comes to employees and stuff like that, some of the best people to hire is experienced people that are over 50. Think about that for a minute. Those are people that are going to be happy with their job. They’re going to love where they work. They want to work the rest of their career another 10 years out. They’re probably really good, but you’re going to pay them. They’re not going to come to you and say, oh well, this person’s offering me this and this and this and this and this and a lot of younger employees, but you get great quality and with less of the bullshit from younger superstar employees that are going to look to jump ship, and that’s what you have in technology, that’s what you have in AI, and all these guys know it. 

So you know, with OpenAI fighting with Microsoft right now, Daniel, and now they’re pissed off at Meta. I don’t know why he’s pissed off at Meta. I mean, it makes sense. You know you want to have the best talent. You’re going to be able to poach it and poach it, but one you know that’s a good thing. Maybe you know you’re getting some of that character back. I don’t know. 

But just when it comes to poaching and stuff, people get pissed off. But you got to look yourself as a company in the mirror why your employees are getting poached. Maybe you’re not paying what they’re worth, uh, and maybe don’t like the company, but what could you offer them so that doesn’t happen? Instead of getting pissed at the company who has more money than you there’s always going to be a company out there that has more money than you. I don’t care who you are, unless you’re top five, seven companies in the world. You know how do you provide an environment where they’re comfortable working, they love working, they believe in your vision. You know you pay when things are really good and stuff like that. But but over overall, you know being pissed at someone’s post your employees. I think I’ve always looked at it as look at yourself in the mirror as a company instead of blaming everybody else. 

0:41:16 – Daniel Creech

I don’t know what the real beef is behind these two, but I guarantee you, for me this has nothing to do with it. I mean the fact that he’s dropping. Maybe he’s lobbying to try to get Congressional some political weight behind him. I’m not sure he’s throwing it. The media likes to oh, zuck’s offering 100 million signing bonuses and Altman said that he’s so proud because nobody’s left, I guess, yet. And then this guy had the goal, and this is hilarious to me. This just shows you again, whatever they’re saying is not what’s on their mind and not they’re talking about. So you have to read between the lines. 

But to hear Altman talk about how he thinks that that would create a bad workplace in a bad environment is beyond funny, for reasons Frank just talked about. Listen, this is not the end, all be all. This is not the saving grace. If you think AI is just going to be the warm hug that everybody gets, we can talk about the benefits and stuff, but this guy, this guy is a villain of villains. I mean, the only thing this guy has good taste in is cars, Frank, and I’m not even a fan of his $3 million car he’s got, so like yeah, I would be entertained by Altman and Zuck going back and forth, but I think maybe Altman sees a wedge between Trump and Musk so he’s trying to weasel his way in by throwing Zuck under the bus. I don’t know, but these are just funny billionaires watching each other and throwing mud, Frank. 

0:42:41 – Frank Curzio

Yeah, so you know, I mean the craziness between them. It’s kind of funny. But I could tell you, you know, with Altman you could see the competition right, because you see the competition with Microsoft going back and forth and thinking of suing each other and stuff like that, and now you know, I mean it’s heating up. It’s definitely heating up. We talked a lot about this. I talked about this. 

If you’re subscribed to our AI newsletter, you know the competition, ai, what’s going on, the need for power generation. You see a nuclear. I mean these guys are locking up nuclear and I really broke down the numbers, like broke down the numbers for people to understand that. You should be scared shitless because I have no idea how we’re going to get the energy to power ai by 2028, 2029. I have no idea. I mean people are saying that they’re saying, well, you know, I mean they don’t understand the numbers and not accounting for certain things that I broke down. I don’t want to give stuff away that people pay for, but I could tell you the ai issue that I just put out is probably worth fifty thousand dollars at to the right fund manager and you guys have gotten that right For whatever $1,000 membership to that newsletter. The best way to play when it comes to AI, you know, and just switch gears here is through power. 

The utility companies we talked about they’re going to be the new growth companies. They don’t want these safe companies that pay a dividend and safe havens and stuff like that. These are going to be the new growth companies. They don’t want these safe companies that pay a dividend and safe havens and stuff like that. These are going to be the new growth companies. These are almost going to be the new technology companies, because we don’t have energy, so much so that one of the largest and I don’t want to give away too much here because I have great context in this industry but one of the largest power providers in the world, a hyperscaler, six years ago could have got as much power as they wanted from them. This power company just told them they don’t have power. They don’t have any excess power to give them, and that was one thing which just shocked the shit out of you. The other thing is they said they’re not going to have any excess power to 2037. It’s one of the largest utility companies in the world, the stuff that’s going on under the hood. 

If you don’t believe it. Just look at the nuclear. There’s no nuclear in the US, right. There’s no uranium right, we’re not producing it. There’s a ton of it. We used to produce in the 70s, but all regulation restrictions, all companies used to produce it and say we’re not going to be in that business anymore and said, hey, we’ll let Russia do it, right. So now you’re seeing this massive production, this rush to production. There’s no production here. There’s nothing going. 

These hyperscalers sign deals, not for five years and 10 years out, for 20 years out. Even with technology when it comes to SMRs, that’s not going to be available for six to seven years. I mean these companies aren’t going to generate revenue, not earnings, not free cash flow, revenue, sales for another three years and they’re trading at $9, $10 billion valuations. That’s the dire need. I mean that’s like Warren Buffett’s’s going, like I can’t believe you’re investing that that long into the future. That’s how long that is 20 years for for energy deals that they’re signing. That’s what all these guys are signing, every one of them. 

You look at all hyperscalers amazon, google, meta, all of them, right, even oracle. And I have to tell you if you know companies that have their own power there’s one company has been doing very great for us and I’ll give it away because everyone’s up a lot on it. Who follows us? And that’s digipower, DGXX. Uh, you know we talked about power being the best way to make a fortune from ai. These guys are sitting on on 200 megawatts of power. That has a lot of power. They own this right, so they’re bitcoin miner and I’ll talk about the other shitty bitcoin miners that dilute the shit out of you forever and you make make nothing and they’re not going to sell their Bitcoin, so they keep raising money, diluting shareholders and the stock price has done nothing forever. 

These are guys that have been focused on this for over a year and they’re just starting to convert and they just the reason why the stock’s up tremendously. I mean, we’re talking about it. What a month ago under a dollar and it and I think this thing is going to go a lot higher because the 200 megawatts of power. They’re converting 25% of that into tier three, which is data center. They already have clients for data center, so each megawatt tier one, which is Bitcoin mining, is worth a million. So just based on that, when they’re fully in production at 200 megawatts, that’s a $200 million company and is trading at $80 million market cap now. But if you’re looking at transitioning and converting to tier three, that’s data center, right. So if you’re looking at those megawatts, they’re worth 10 to 15 times that. That’s what the hyperscales are paying. So if they’re converting 25% of that and they’re worth 10 times which is 10, that’s a $250 million market cap $250, $300 million market cap on the low end. 

Once they convert this, which a lot of this is going to be converted, because now they’re using Supermicro, they could do it in stages when Supermicro is an amazing company learn about liquid cooling technology, all that stuff, but it’s you know again, I know the accounting stuff and everything. Dell does it as well as other companies that do this. In terms of the liquid cooling compared to air cooling, that’s where the data centers are going, not to get too technical, but they’re able to do this almost like you’re building legos, like if you build a house, you could add to it. So that’s really big for companies, the size of digit power. Not only that, they have licenses in new york and california and those are places that are and I’m sorry north carolina and new york which are places that it’s almost impossible to get licensed for power, so companies could come and take over that and say now we can expand the power, because it’s almost impossible to start from scratch to get the licenses, because in New York, especially in New York right, it’s almost impossible. You need just so much red tape. 

So, you know, looking at these guys and where they can go, it’s just getting started and there’s a lot of little companies I’m finding in small caps. We’ve been pounding the table, Daniel, right on small caps. Telling you, the last couple of months maybe it’s the last six months, I know it’s been a while In the last three months and stuff like that you’ve seen small caps really really start to rise, where some of these names Digipower should not have been trading at that level. I mean, when you’re talking about a company that has megawatts and 200 megawatt of power and they’re going to transition, what does that mean? Okay, it’s going to take a while for you to transition, it’s going to cost a lot of money. Well, they’re already a Bitcoin miner and Bitcoin is surging. It’s over 100,000. So they’re printing money off of their Bitcoin operations already. As they wait, as they’re transitioning this, they also raise money through an offering. You know, these guys are in a really, really good position to go a lot higher. 

But you know power companies. If you find small companies that actually own their power, look out, because you have the biggest companies in the world say we need power, we’re paying for this shit for freaking 20 years out and it’s not even that much, it’s not even a gigawatt. A lot of this nuclear power, it’s not even a gigawatt, it’s megawatts. And we’re paying for this stuff to ensure that we have a contract whether it’s Constellation or whatever they’re paying in Pennsylvania and Amazon that we have this locked up for 10, 20 years, 20 years from now. That’s how in dire need of power they are. So if you can find small companies like DGXX, I think it’s going a lot higher. 

I’m a big shareholder. A lot of people have come in even at a better price than me, because I bought it when it was higher and then it came down and then I bought some more. But you know everyone that that we we spoke to should be in a very, very good price. Uh, and we’re getting emails like crazy and that’s what we love to see trying to find these hidden gems in the market for you guys and, uh, you can find a lot of that through uh you know our services and an ii newsletter and a small cap newsletter, curzio venture and, most importantly, through our uh, our podcast right, our paid podcast. So which is uh is Curzio Wall Street Unplugged Premium. So this is where we’re finding our ideas. We’ve got great contacts out there. 

It’s helping us but a lot of good stuff that we’re seeing on AI front, but the best way to play AI guys seriously is through power. It’s the easiest way. Dire need of it. Maybe this shit blows up. I don’t know if they’re going to have that return on investment with these guys spending anywhere from $70 billion to $100 billion a year to improve their AI. Maybe that changes in a year or two, but it’s not changing within the next 12 to 18 months. They’re going to constantly need power, even for the next generation of chips that are coming out in video which they’re starting to use with liquid, cool services and stuff. It’s pretty crazy right now, but I still don’t know how they’re going to service all that power, how they’re going to be able to get that power, I don’t know, but I know that they’re going to pay a shitload for it. There’s a lot of companies going to benefit, so that’s right. 

0:50:21 – Daniel Creech

I’m going to pay a ton for it. 

0:50:24 – Frank Curzio

They’re going to pay a ton for it. They have to, they have no choice. I got to pay a ton for it. 

0:50:27 – Daniel Creech

So yeah, with that, my to get better, but do not don’t just attack it to be first and what I mean by that is what Frank just said hey, we know CapEx is going to slow down at some point, you’re going to see some cancellations. But don’t just run out there and say, oh, don’t be first to say, well, it can’t last forever, because it can last for several years and you can make a great return or a lot of money. Case in point NVIDIA. We’ve been saying Nvidia is so far ahead of the competition they probably have another year or two from now, from now, to still be king. But if you’re out there saying, oh well, margins are going to come down eventually because competition is going to come in, that’s true. But if it’s true in seven Florida years, that doesn’t help you and it doesn’t provide value. 

So ride the wave in the present. Yes, pay attention. But don’t just assume you know what. Like tariffs up. Tariffs lead to war. No, they don’t. Tariffs were one data point going back to war. Like, just don’t jump the gun there, people. And I’m telling you that because I’ve done it and it pisses me off. 

0:51:28 – Frank Curzio

And I’ve seen some of these contracts. By the way, I’ve seen some of the contracts by utility companies where hyperscalers are signing these contracts, these three-year contracts, and they include up to 17% to 25% increases every year. I want you to think about what that means. So if you subscribe to one of my services and I say, hey, you can get this newsletter at a discounted price, for $1,000, but you have to sign for three years because the first year you’re going to get it for $1,000. Next year is going to be $1,200. The following year is going to be $1,500. The following year is going to be $1,900. Whatever, right. So you get like three. Like that’s the deal that you have to sign for my newsletter. You would say F you, I want to see what you do first. I want to see, okay, how you perform. Whatever, you’re not going to pay much, much higher prices into the future until you, because a lot could change in the future. Okay, so for these companies to sign these deals with these price increases and as soon as they come back with the price increases, the fastest they can get someone to have a pen and sign that. Or, if they’re signing it, whatever through Adobe, whatever you’re doing to DocuSign. These days they’re signing them immediately and that’s how much the increases are going on for the next three years. 

So you know electricity prices are absolutely going to skyrocket for these guys. They have to lock it in. That’s the biggest threat to them. Becoming the biggest player in AI is not having the energy, you’re not having the infrastructure, you’re not having that resource. It’s like having the greatest car in the world with no oil. It’s meaningless, you can’t use it right. So that’s what they realize. They see it, they know the stats. They’re not telling anybody. I’m looking at the numbers. I’m telling you. I study models all my life analysts what they’re modeling right now. They have no freaking clue how much energy we’re going to need. They’re not including how much power. 

The new generation of NVIDIA chips not the G200s, but the G300s, the VR200s, those are one for liquid cooling and they’re going to say, well, they’re 20 times more efficient, okay, they’re 20 times more efficient, okay, energy efficient, I get it. But when it comes to the whole entire rack, they’re using seven times more electricity and it’s not being modeled for right. And NVIDIA is pushing two to three million of these chips out, right? And that last generation of Blackwell? That’s not even getting put into the newer installs. So it’s crazy when you look at it. 

It’s great to have good contacts in this industry and I love when people even call me and correct me on some of the stuff that I’m doing and learning about this stuff. But unbelievable contacts, seriously, if you know a lot about this industry, I always make sure that we keep everything quiet and stuff like that. I mean, you’re not telling me public information, non-public information, of course, but it’s led to me having some great contacts in this industry. That’s helped me out tremendously. That’s why we have Digipower, which is up probably, you know, 200% for us at least from its lows right now, and that just happened in probably the past couple of months. So it’s why I told you to buy Coreweave right. So you know this is because of the information that we’re able to gather and that’s just podcasts about. So everyone out there, if you want to email me Frank@curzioresearch.com, all right, guys. 

0:54:11 – Daniel Creech

So that’s it for us A lot to digest. 

0:54:18 – Frank Curzio

And we’ll be back tomorrow with Walsh Unplugged Premium Again. If you’re interested in subscribing to that service, it’s only $10 a month. You can cancel immediately after one month and you can do that by going to our website at CurzioResearchcom. Other than that, we’ll see you guys tomorrow. Take care. 

0:54:35 – Announcer

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