Wall Street Unplugged
Episode: 814November 2, 2021

The “great separation” in stocks is starting… Here’s how to avoid getting smoked

Don’t get smoked during the “great separation” taking place in stocks

The “great separation” is starting… and if you’re not paying attention to it… you’re at risk…

But first, I’m humbled and grateful that so many of you took advantage of our Crypto Intelligence special offer. Members: A new recommendation hits your inbox tomorrow! [0:34]

I hope you had a great Halloween. Ours was amazing… with tons of families out trick-or-treating in my neighborhood. It was like it’s supposed to be. [2:20]

Turning to the markets…

The major indices are hitting record highs as earnings season winds down. I share what stood out the most as I went through the latest results. And I break down the “great separation” I’m seeing in certain industries. [7:40]

It’s been over 18 months since the COVID lows… and the markets are starting a new chapter. I point out several examples of the “great separation” across industries… including the opposite paths that Intel and AMD are taking… as well as Under Armour and Nike. Plus, I share why Amazon will continue to dominate (even though it pulled back after earnings). [14:10]

Speaking of great companies, a listener wants my thoughts on tech giant Nvidia ahead of its earnings report. [19:50]

Our last question comes from an older investor who’s getting into crypto… and wants to know about taxable gains. I dig into the details a bit… and explain why stablecoins can be especially useful when you’re juggling different trading platforms. [27:36]

Inside this episode:
  • A new Crypto Intelligence recommendation due out tomorrow [0:34]
  • My family’s amazing Halloween [2:20]
  • The “great separation” I’m seeing in certain industries [7:40]
  • Several examples: Intel vs. AMD… and Under Armour vs. Nike [14:10]
  • My thoughts on Nvidia ahead of its earnings report [19:50]
  • Details on crypto taxable gains [27:36]

Wall Street Unplugged | 814

The “great separation” in stocks is starting... Here’s how to avoid getting smoked

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

Frank Curzio: How’s it going out there. It’s November 2nd, I’m Frank Curzio, host of the Wall Street Unplugged podcast, where I break down the headlines and tell you what’s really moving these markets. Wow. So first, I want to thank so many of you for subscribing to Crypto Intelligence, since I’m buying a new house. Now I can build it. So, I appreciate it. We just closed a special offer on Friday. Man, we had a lot of subscribers, and I’m really happy for you. Really, really happy and excited. Though you subscribe, you get to see our new pick come out on Wednesday. That’s going to come out after the close. To direct play on the trends I talked about in that video, DeFi, NFTs, the metaverse. We have one company in our portfolio. Great play on metaverse. And this is one of the recent picks that surged, I mean, really, really surged over the past few days.

Frank Curzio: I think a lot of you were able to get in that because we all know that Facebook announced they changed their name and they’re going into the whole metaverse thing. And now, everyone’s going crazy with it. This is a company that has a platform already built. It’s absolutely amazing. I showed in video, so it’s really, really cool. That stacks up. But this next pick is also playing all three of these trends combined: DeFi, NFTs, metaverse. So, you’ll see me break this down in video format in Crypto Intelligence. So, my apologies that you have to watch me the whole time, but breaking down that research behind the new pick and sharing sites that I’m using some free, some paid. This way you could follow on the whole time. So, it’s a big educational component to this product.

Frank Curzio: So, I’m so happy to so many of you subscribe, I just see so many opportunities. It’s very, very exciting times. Really excited to help you guys learn more about crypto since I’m currently learning myself. And that’s why I love this industry so much. It’s why I love my job. Right? You always learn something new in different industries. But man, everywhere you go it’s incredible. This is where you’re seeing innovation from. And I think you’re going to see incredible growth in so many names in so many areas and really exciting times. So, thanks so much for subscribing. Second and this might sound a little corny, but I want to express how happy I was. The happiness. During Halloween, it was on Sunday, and we wind up trick or treating around the neighborhood. I talk about my neighborhood and it is filled a bunch of older people that hate life and hate everybody and never wave and stuff like that.

Frank Curzio: So, it used to be a great neighborhood to go to Halloween. Now, it’s not. So, we actually go to it to a different neighborhood, not that far away, with one of our friends, and there was like hundreds of kids out, I mean, tons of families, having chairs outside the houses. So, it wasn’t just like, you’re ringing a doorbell and trick or treat, like, they were outside and hanging out and they were dressed up with their costumes. I mean, it was just really, really cool. And then, they do Halloween all the time. So, all the families know each other in all these houses, it’s probably about a good seven, eight blocks. And they have special treats for the parents as well, which are jello shots as you go around. And of course the jello shot sort of people that aren’t driving, their kids and stuff like that.

Frank Curzio: You don’t want everybody to get drunk and drive their kids home and crash. But it was cool seeing so many people enjoy themselves, having fun with their families without the mandates, without the masks. And we all know that, hey, if you’re older, we get it, right? You have underlying conditions. Maybe you don’t want kids coming to the house. That’s okay. That’s not a problem. I get that. But it was one of the first times in a while where nobody was talking about COVID, nobody was talking about masks. They were just having fun and laughing. And I know Florida’s seen as this place where we’re irresponsible. That’s what’s being portrayed on so many media outlets, the sense it is killing people, but looking at the facts. Our kids went back to school right away, one of the first dates. The economy remained open for the most part, which didn’t force a lot of people to lose their jobs.

Frank Curzio: One of the first to remove mask mandates. Of course, Florida is one of the states that’s against vaccine mandates, it should be your choice. And you know what, Florida went from having the country’s highest infection rate to the lowest in about two months. And you know where that stat comes from? The Wall Street Journal, they actually reported that. They reported that yesterday, right? The Wall Street Journal reported that, it’s interesting with the title, “Media ignores Florida COVID recovery.” It was signing out of CNN, MSNBC, continue to rip this guy, even though he turned out to be dead, right. Which was not that difficult if you actually looked at the data, showing that kids are not at really at risk, almost 99 point, whatever 67… 99.6, 0.7, whatever it is, they don’t transmit the disease. A lot of them are immune and looking at the stats, I think it adjusted accordingly.

Frank Curzio: And it was nice. It’s been really cool in Florida. I just think that even now, when I watch the media and I like to watch different media sites, just to get a good feel of what’s going on, even no matter what side you’re on, that’s what you should do. Because you’re going to get ideas. You’re going to know how people are thinking, what people are saying. Trust me, it leads out to a lot of great stock ideas in terms of buying and shorting and stuff like that. But looking at Halloween and going with my kids, it was just really cool that everyone’s having fun. And we went from 4:30 to 7:00 PM, and then I took them to Spooktacular, at the Jacksonville zoo, which was awesome. And you actually have zombies chasing you now, and they gave away candy, and the DJ’s playing great music.

Frank Curzio: Again, it was just nice to see everyone’s family laughing and having so much fun. That’s what life’s about. It’s about your families, right? It’s making the next generation better and better and better. And just to see everybody happy and smiling in a world where there’s so much hate right now and anger, it was just really, really cool. But the Jacksonville zoo, I love. It’s a smaller zoo. Every time I go, I have fun, even during the holidays. And they always had special events, but this Halloween did a great job with the zombies. That was the first time. These zombies were like chasing people. They were chasing people. It was pretty cool. And for me, I probably would’ve let the tigers out and the apes out and chase people around. I think that probably would’ve went more viral. A lot of fun during Halloween.

Frank Curzio: But again, we know how social media is and how crazy it is, but in all seriousness, they did a good job. It was fun and exciting, but really enjoyed Halloween this year. I just found myself, looking at families, looking at people and seeing everyone smiling, laughing, and you don’t really see that anymore. Right? It’s fricking crazy out there. It’s so nice to see people living right, doing what really matters, hanging out with their families, being happy. And most importantly, right, just as I said: living, living your life and having fun. Because, that’s probably going to change in terms of fun. If you let it. Because midterm elections are around the corner, we have a big election today actually, both sides of the media going crazy over it in Virginia, going to see a lot of shitty marketing campaigns, trashing the party you represent.

Frank Curzio: And you’ll start seeing those in a few months, right? Midterm elections. So, social media, if you’re active, get ready for the trolling, the bots at full force, trying to get that anger out of you. Just remember, have some fun enjoy life you guys deserve it. Now for the markets, and this is on-market podcast. I’m want to talk about happiness and Halloween all the time. But looking at S&P 500, almost all the major instances have record highs. You have earning season kind of coming to a close, but there’s something that’s interesting as someone who loves earning season, it’s my favorite time of year, listening to these conference calls and reading the transcripts and getting ideas and seeing how these guys are managing through tough times and inflation and supply chain issues.

Frank Curzio: The one thing I noticed is the separation, it names within the same industry. A lot of times, COVID, everything went up. Everything went up, some socks went up a lot higher than others, but everything just went up no matter what sector, wherever you are, almost everything. Just surge, completely surge. You’re not seeing that right now. I mean, look what FedEx reported. Horrible numbers and look at UPS, great numbers. I thought Google or Microsoft reported great numbers, compared to Apple and Amazon.

Frank Curzio: Apple said seeing supply chain disruptions are actually going to wind up cutting iPad sales, because they need to put they got greater margins on a 13, a new phone and want to put more capacity into that. Amazon their numbers missed. They’re seeing supply chains issues. Although, I love Amazon. I think it’s an incredible buy here. I mean, if you look at companies get hit a lot of times when expenses go higher, but you have to look at where their expenses are going. And sometimes, they’re going to places that are going to ensure long-term growth. And I see that so much. CapEx goes higher, they get crushed, maybe margin a little bit lower and these names get nailed and say, wow, we didn’t know costs are going to be that high. And again, it takes a big bite out of earnings, but you have to look what those costs are, right? You have to invest money to make money. You have to invest, whether it’s marketing strategy. Amazon here is investing in people.

Frank Curzio: I mean, that’s a great investment right now when nobody could hire anybody. Look at Starbucks, what they reported, anyone who goes to Starbucks knew they were going to blow the quarter. They knew they were going to miss a quarter. It’s terrible. And I can’t say how many times I pulled up at Starbucks, there’s a lap around the whole freaking place in the drive-thru where I just passed. I used to like going there probably three times a week. I go there once a week now. And I know I’m not the only one. I don’t feel like waiting on that line. And even when I do, they don’t have a lot of items at that are in. And these are like regular items that are some of the biggest selling products that they don’t have. The results are you go in someplace else.

Frank Curzio: But most places that you’re seeing, especially restaurants wherever they have labor shortages. But Amazon said, look, we’re going to invest in our people. And what does that mean? I mean, you’re looking at a company that really didn’t see that much supply disruption, or disruption from the customer point of view. Yeah. There was a few things. Maybe that came a little bit later than they expected, but overall Amazon pretty much got the job done through COVID. And now, you’re investing in people at the most critical time, maybe in the history of companies, not just going into the holiday season, but we have the biggest supply disruptions this country has ever seen. I mean, it’s insane. You see it. I mean, companies reported blow-out numbers of 17, 20%. And they’re like, we have supply constraints. Imagine what they would be if they can get their products, because there’s so much demand out there.

Frank Curzio: But now you’re going to the Christmas, holiday season. I mean, Amazon’s going to kill it as their competitors try to go through this holiday period without spending boatloads to hire great workers. I see this a lot. Stocks get hit where they spend more, but you have to look at what they’re spending on. It’s very important. If you’re spend on marketing, or spending on people, you’re spending on a little bit on M&A, or you got to look at they’re spending money in the right areas. That’s the biggest area for Amazon. They have to make sure that their systems, everything’s up and running, people get those packages delivered on time. I’m telling you got to see a massive separation, between Amazon and almost everyone else. The Walmarts, the Targets, watch. Watch during the holiday season, they’re going to kill it.

Frank Curzio: And you’re going to see that stock really, really soar. I take advantage of Amazon right here, but getting back to that separation, and we saw Intel compared to AMD. Look at Under Armour’s numbers. Holy cow. And when you look at them compared to lots of sports apparel companies, including Nike, that reported a big inventory shortage, last time they reported, I said, that China weakness, it was a couple months ago. I don’t think they reported yet for this quarter, but that was last quarter. And the stock came down pretty hard. It went to 150 and now it’s been creeping higher, 165 right now. The all-time high is 175, even though we reported, so expectations are pretty high. I mean, nice job for Goldman Sachs, which we all criticize. Goldman Sachs initiative would buy at around 150. And it’s 165 already. Good job on that.

Frank Curzio: But that separation that you’re seeing is incredible with some of these names. And Under Armor, man. Sales exploded, margins exploded. I mean that thing’s going to get re-rated, that thing’s going to soar a lot, lot higher. A lot higher. I’m doing this early, it was up 8% now. I think it’s about 15, 20%, whatever it was, it is right now, but it’s going to get re-rated, because when you see sales exploding and they raise their, guys, significantly raise their EBITDA and their margins are going high. What does that mean? They’re not seeing the same problems that Nike saw last quarter. Other sports power makers are seeing, which is supply constraints or limited pricing power.

Frank Curzio: This company obviously has pricing power because margins are going higher. I mean, that guidance was fantastic. Avis is another one. We having a portfolio surge. I think it’s going to be a ten bagger now for us in Curzio Venture Opportunities. Recommend that a lot cheaper. Holy cow. I think it’s taken off, blew out the earnings. I think we reported like $10 dollars in earnings or something. They’re supposed to $6 dollars. Unbelievable, unbelievable numbers. But when you look not everything is benefiting from the COVID rebound or the $11 trillion plus in government spending, which includes fiscal and monetary.

Frank Curzio: So, you have some management teams that are getting it done while others are struggling with a lot of those issues, supply chains, inflation. And you have to have pricing power. If your costs are going up, which they’re going up for every single company in the world right now, you have to be able to pass those costs on to your consumers. And if you can’t, look out. Dollar Store’s saying that they’re going to start selling most of their products for over a dollar, to their pricing power. People go there to pay a dollar for stuff. I don’t know. I think McDonald’s has pricing power. Chipotle obviously has pricing power. Under Armour has pricing power, focus on those companies, because these are the names that I see an explosion in their numbers, but there is a big, big separation going on and it’s pretty cool to watch. Management teams are getting it done and some aren’t, but that means it’s a stock picker’s market, now.

Frank Curzio: Not everything is going to go higher. You have to be careful, so pay attention. I am seeing lots of good ideas, especially on the small cap front. So, you look at a small cap, significantly underperformed, large caps, feel geared to date 6%. It’s close to 10% if you take the past six months, where Russell’s basically flat over the past six months, it’s surge early in the year. So, the past six months, if you wonder, well my small caps aren’t doing that great. Stocks at all-time highs, it’s basically flat over the past six months versus 10% gain for the S&P 500. But if you look under the hood, which I say that a lot and I love the Russell I’ve been following this, small caps is I love it. The majority of my career is what I did. Stocks under 10 newsletter, do you guys remember? At TheStreet.com? Kramer ran that newsletter, that product. But when you look at the comparison between large caps, small caps, the difference is much greater when you look under the hood.

Frank Curzio: Since most of the gains in the Russell have come from the larger names in the space. And you can say, well, the S&P 500, 20% is FAANG and stuff like that. This is different. This is different. I mean, wait until I break down these numbers. So, you look at the Russell. Russell rebalances every year around June, and in May, they come up with their guidelines, and it’s pretty easy to figure out. May, if you fit in those guidelines within those market caps, you’re going to go in. And if you’re higher than it, you’ll move up to the Russell, whatever 1000. But $7 billion dollar was the high range, which is extremely high, the highest ever.

Frank Curzio: I think it was $5 billion last year, but $7 billion was the high range. So, we had a company that was a $7 billion market cap. That was back in June. As of right now, today, this is only June, just 35 companies with a $7 billion dollar plus market cap, that are trading in the Russell. This includes Asana, which is a $25 billion dollar company. AMC, $18 billion. Avis was 12 billion before this 40% move. So, it’s probably like what, whatever close to $12, $17, $18 billion now. Crocs, $10 billion. Macy’s, $8 billion. Digital Ocean, $10 billion. And these names alone, those names I just mentioned probably have the bigger market cap than the last thousand companies in the index combined.

Frank Curzio: So, where am I going with this? If you’re looking at the performance of the Russell, it’s mostly driven by those top companies. Again, you can say the same thing for the S&P 500, but this is much, much, much, much more concentrated. And these companies account for, if these are like the FAANG names and the Russell, they account for more than 50% of the total market cap, where you’re looking at 20% of the S&P 500. But even if you take the top 25, 50 companies, maybe 50 companies in a Russell, you’re looking at 2, 3% of the entire index that’s being driven there by those larger names. Where many smaller names in the Russell, outside of banks and energy, two sectors that have done incredibly well this year, especially later on in the year, significantly underperformed. If you want more proof, the Russell 2000 index up 17% for the year, yet 40% of the index is showing losses on the year.

Frank Curzio: In fact, close to 60% of the index has underperformed the overall index. It shows you, it’s very heavily weighted on the top. So, I’m seeing lots of underperformers, companies that do have pricing power, good management teams. They reported solid earnings. A lot of those earnings are coming out over the next week or two, mostly the large caps are just about done this week. You’ll have more next week. But the majority its done for the S&P 500. Now, it’s small caps. Now, it’s fun. But you see in some of these names, just starting to benefit from the reopen tree. Names in the travel industry. Yeah, they rebounded, but they’re not past their COVID highs, their pre-COVID highs. Biotech has got murdered. Furniture, retailers, restaurants, fast food, some of these names rebounded, you’re going to hear about the Chipotles, some of the other ones, but Steak & Shakes or whatever. There’s a lot of names that have significantly underperformed.

Frank Curzio: We’re taking a look right now, especially when they report this quarter’s earnings. So, expect to see a lot of these names show up in Crypto Intelligence. Also encourage your research advisory, which as you guys know is mostly mid- to large cap stocks and growth names and stuff. But I may get a little more aggressive in this newsletter, since that’s where I’m seeing the opportunity. I always want to be flexible. So, you might see a couple of small cap names with market caps above 3, 4, $5 billion, which 7, $8 billion is considered small cap these days. It used to be under a billion. Then, it was under 3 billion.

Frank Curzio: Now, it is under $5 billion. Now, it’s like under 7, $8 billion, its considered a small cap. Amazing. If times change. If I see a lot of these show up in Crypto Intelligence, encourage your research advisor again, because that’s where I’m seeing the opportunity. Now, as always, want to get to a couple questions with this podcast, which I love to do. And let’s start with one from Matt S. So he says, “Hey Frank, what is your view on Nvidia? Expensive stock? But in super exciting areas, example AI metaverse, autonomous driving, data centers, blockchain, gaming, etcetera. Try to wait until the report and see if we can get on sale. Other chip companies to watch?”

Frank Curzio: So Matt, it’s good question. I mean, Nvidia is one that I obviously I missed by a mile. It’s amazing. The stock right now is at all-time high of 260. And I like to look at where the analysts are for this company and the analysts, of course, from their perspective, 37 buys and one sell. So, expectations are high. Granted, they’ve been high for a while and these guys have been right, but. The median target for these analysts, the target price is 235. It’s trading at 260. So, think about that for a minute. If you’re looking at those 37 buy ratings, look consistent. So, 37 firms. Of those firms with buy ratings, close to half have a target that’s lower than the current price. Think about that for a minute. So, you’re telling your clients that Nvidia is a buy, and you’re saying it’s worth a certain price. And that price, which you’re telling them to buy, is currently lower than where it’s trading.

Frank Curzio: What does that mean? Expectations to sky high. Which is normal. Again, for this name. If the stock trade at an all-time high, don’t short it. Don’t ever short a stock at its all-time high. Please wait for the chart to break down. Talking from experience there. Just don’t. But look at Tesla. Just don’t, don’t short it. These high growth names. Where you look at it, it has a mark cap of over $650 billion right now. Traded 60 times forward earnings, but it’s growing those earnings 30% plus. So, that’s reasonable. That’s not expensive. I mean, you look at Disney, Disney’s barely growing its earnings, and they’re trading at 40 times forward earnings. So, you could command that higher multiple if you’re in the right markets. So, like Intel’s multiple is a lot lower, IBM’s multiple is a lot lower. For some of these technology companies, Ambarella, AMD, a lot higher because they’re in the right markets, the right growth markets.

Frank Curzio: And they’re growing those earnings. You have to look at growth. I mean, if you never bought a 60 time forward earning stock, you would’ve never had Apple during its early growth phase. You would’ve never had Netflix, Microsoft, all these companies traded 60, 70, 80 times forward earnings. But as long as you’re growing. And those earnings continue to grow, and you’re in the right markets, and you’re innovating, you deserve that premium. That’s why you’re looking at a video. A lot of people missed out it because it was always a super expensive stock trading for many years, over a hundred times forward earnings.

Frank Curzio: But look at the markets you’re in to, Matt, you mentioned that gaming auto, just all the right markets, AI. Markets where you have incredible pricing power because you have pretty much the best products in the market right now. And much different than Intel, which you saw, which bombed the quarter. You asked if Nvidia’s a buy here. Ah, I don’t know. I mean, the stock is up 70% year-to-date, easily outperformed at everything. Might say everything the S&P 500 its peers and at 60 times multiple, be careful. Earnings are growing. But if you look at sales, sales are off 50% year over year, easy comparison to COVID. But starting at 2023, which is not that far away. We’re almost in 2022, the growth in sales is going to sell from 50% to 10% annually. And that’s not just one year. That’s what the analysts are expecting of the next couple years.

Frank Curzio: So finally, you see it built. Listen, they fit into that $650 billion dollar market cap, but these guys are really going to have to report incredible earnings, which they will. But expectations are sky high. And even with the analysts who love the stock the most think it’s worth about 10% less than where it’s currently trading. So, could you get upside? Yeah, absolutely. You could. But you’re looking at other chip names. I wouldn’t really go to Intel here, not after that quarter, even though insiders are buying, which I like to see when a stock gets nailed. Ambarella is really getting the job done. Some just good names in the space AMD. It tells you to buy a company I own. I sold it too quickly, but I did do very, very well on it. But the stock that hit 90 came back down, hit 95, came back down. Chart, just pushing through that hundred.

Frank Curzio: And once it did, it was gone. It was like, this is a great buy right here, buy it and Twitter and everything. And then it did continue to go higher. And these are the chip companies that are getting it done right now. That’s where you want to be invested in. You look at quarters, you’re going to see companies that have the pricing power. Companies that beat estimates and still saying, which is the majority of companies, guys. They blew away estimates. And they’re like, we still have supply constraints. Think about that for a minute. Because, those will go away. Under Armour that went away a lot faster compared to Nike. But Nike, they’re anticipating it’s going to be much, much better and they’re going to blow out the quarter. Because last quarter was terrible. Slowdown in China, the biggest growth market. Margins got hit. But it’s pushing up to its all-time high, right near it.

Frank Curzio: So, we’ll see. But pay attention to the separation too. And a lot of names. I mean, you’re looking at Chegg and holy cow, that got nailed. Education companies. Although most educational companies have gotten hit now that the COVID is eased at least. And when it comes to chip companies, Matt. Good question. Awesome question. I wouldn’t be a buyer in Nvidia. But then again, maybe I’m the last person you should ever talk to about Nvidia, because I missed the whole move up on that name. I did well on other names, but that was a name that I stayed away from. And those guys have proved me wrong. I go to Consumer Electronic Show every single year, as you guys know, they always blow it out. Have the best products. Their booth is completely jammed. They have two or three booths there, which again, we’re talking about not a lot of money for a $650 billion dollar company, but it’s a lot of money to go on separate floors.

Frank Curzio: And they’re on the main floor. They’re in the autos as well a massive section there again, this is all going to be opening January should be a lot of fun. Hopefully, they’re not crazy with masks and stuff like that, which I think they are. So, I think I’m going to have the vaccination passport on me. I’m going to have a mask that says I had COVID and recovered, and then I’m going to wear a mask and say, if anyone gets infected from me, that would be one of the most amazing things in history. So, but yeah, that’s the way it is some places unfortunately and it’s crazy, but we should have fun. That’s coming up in the first week, January 5th to January 9th or 10th. And guys, I get the media badge because of the podcast. So, I have access to so much stuff, early access and a lot of these, a lot of times they close down puts for me to really talk to so many people there and do videos, is going to be publishing a lot of this stuff on YouTube.

Frank Curzio: So, we did a good job two years ago last year, obviously it was COVID, it was a lot, a lot of fun. And I’ll let you guys know when I’m doing that, because there’s going to be a lot of live videos and fun stuff and really cool things that I try look like an idiot and stuff like jumping in a big gigantic tank of water, getting soaking wet and swimming around one of these seated type things, which I ended up buying. But a lot of fun. It’s going to be a lot of fun this year. So, it’d be really, really cool. And let’s get to one last question here, and it’s from Brandon. “Hey Frank, I hope this email finds you and your family well, and you’re not too stressed with the craziness of building a home. First of all, I want to say congrats on the announcement and that I love your new format, because it seems like it’s given you the flexibility to address more issues and even a more timely manner.”

Frank Curzio: Exactly. Right? Like, we could talk about things right now. We just gave a report today. People going to be listening to this. This is today. So, it’s not just Wednesday, and we’re reporting at the beginning of the week and then Thursday and Friday. So, the fact that you’ll hear from me and Daniel tomorrow, that’s going to be on everything reporting’s more real time, and it’s resulting in a lot more downloads, by the way, which is really, really cool. So, getting a lot of positive comments, I appreciate that, Brandon. He goes, “I’m sure it’s more like work, but I think it’ll really pay off in the long run for the podcast.” He goes, “As an older investor, the complexity of crypto, STOs, NFTs seems really complex and confusing on paper. I’ve made hundreds of percent of gains, but that means nothing to my bank account. For now.”

Frank Curzio: “Because I watch an awesome video and I’ve spent around 15 hours over the last week, reading everything I could come across on cryptos, STOs, NFTs, and the metaphors, there’s a question. I wonder if you could help clarify something for me. So, your picks in Crypto Intelligence requires you to buy a crypto like Bitcoin from Coinbase, and then go to another platform and sign up to buy one of your other recommendations using the crypto from Coinbase. When you do that, say your Bitcoin goes up a few dollars in a time, it takes to buy another recommendation on the platform. Does Bitcoin count as a security sale that you have to claim as a gain on your taxes. Do most purchases end up being a taxable event, finance no longer available to us citizens. Could this happen to other platforms? See what I mean? I know I need to just go for it, but life experiences keeping me from pulling the trigger.”

Frank Curzio: “Any generic advice you have for some of your older subscribers would be appreciated? I don’t think I’m a total lost cause I have open account on tZERO and is patient of buying your CEO too, but I admit this is a pretty straightforward process. The same as any brokerage firm. Thanks for everything you do and what your team does, Brandon, from the second freest state and the union.” You don’t have that state here listed. I’m going to guess and say it’s Texas. It’s either Texas, or if you think Florida, whatever, but a few things here. First, I love the fact being an older investor that you are getting into crypto, it’s a learning curve, which is fine. I’m learning as well. There’s just so many industries, but you say you spend about 15 hours over the last week.

Frank Curzio: That’s how I am. Every time I’m researching this, I feel like it’s 3, 4, 5 hours goes by and just learning and just seeing the brilliant people in this space, and how I can contribute being from the Wall Street side, of how I could see some of these things really develop, how we can make money off of them. What are going to be a project in the future are some of these companies going to go into STOs, which we’re going to have a lot of access to, since we have one of the first security tokens launched that went from raising money to actually trading you’re right about tZERO. It’s the reason why we’re switching to a US-based account. We’re a US company trading on a US-based platform. That’s what we wanted. And it’s easy to separate accounts there, which we’re going to be trading in a few weeks, probably early December.

Frank Curzio: So, that’s one of the things that I really, really love. You’re asking me about tax questions and stuff like that, realize that stablecoins are huge, right? So, USDC is on Coinbase. So, when you have that money, it’s kind of like when you sell a stock and it goes into money market account, similar. You saw the other day there’s regulations coming out, they should regulate this. You need to know that that is stable, right? You want more regulation, especially if you’re doing the right thing, you need regulation in this industry. That way, everything’s stable in this system doesn’t collapse. There’s too many ties to big banks. Now, I like the fact that they’re regulating, they’re looking at it, the current administration to regulate, not to the point where they’re going to crush the industry or anything, but you don’t want to have a Squid Game. Squid Game, a freaking token came out.

Frank Curzio: And then, the developers just leave and collect whatever $11, $12 billion dollar. And everybody gets left home in the band and gets destroyed, right? That just recently happened. So, there’s a lot of bullshit in this industry as well. Again, people are doing the right thing like us. We want to see more regulation where people are safe and comfortable. It’s going to lead to more worldwide adoption for everybody. So, it’s not necessarily what you have to sell your Bitcoin where you could have money and transfer it into stablecoin. And that’s kind of a money market account. You could transfer that into another account or you could just go into you could buy Bitcoin, or if you have Bitcoin and transfer the Bitcoin and sell it, and then you are all going to have tax coin, but almost all the places that you’re doing this on will send you records of this now.

Frank Curzio: So, Binance, yes, you can’t trade in the US, but Coinbase Gemini Voyager areas that you can trade. But yeah, you’re going to have to, I won’t worry about the move in Bitcoin and the time you take it to transfer Coinbase, you transfer. I mean, it takes minutes. I’ve done it. It takes minutes to trade to other platforms where you see it, maybe five minutes. Sometimes, it could take 15, 20 minutes. But most of the time, for me, it’s less than five minutes, where you see that transfer go through and you got, and you could buy it. So, I wouldn’t worry about five minutes time. And then you could purchase some of these things. Unfortunately, with crypto, you have to sign up to different platforms. You can’t just… I recommend stop. Now, I have the newsletters.

Frank Curzio: What do you do? You go to E-Trade you go to Fidelity, you go to Schwab, and you could buy it here sometimes, depending on what I’m recommending in Crypto Intelligence. You have to sign up for a new platform, and it’s for free. And it takes about five, 10 minutes now for, for most platforms, less than that, it’s just, you sign up for tZERO, which going to have a lot of security tokens. We’re going to be trading there soon. But even when you sign up to wherever, if it’s cracking or Coinbase, this process is relatively quick. I go over this in my videos in Crypto Intelligence. And once you do that, you would transfer from one platform to the other, but definitely use stablecoins. That’s where you’re holding your money, where that could provide easy, transfer, less cost, sometimes no cost. But that’s the easiest way where you don’t have to sell your Bitcoin or Ethereum.

Frank Curzio: You may have to, depending on how much you have in each you might be holding everything in Bitcoin right now, then you’re going to have to sell a little bit to buy some of the other issues. But if you have it linked to your bank account and you transfer money in there, that would go into a stablecoin, and it’s and something that can easily transfer over from one account to another, where you don’t have to really worry about those tax consequences way. If you’re looking at Coinbase, you’re looking at a lot of these platforms at the end of the year, they should have these tax documents for you showing the buys and sales and stuff like that. It’s the way it is. It’s the weight should be with every asset. You need to, it needs to know if you’re making money on it.

Frank Curzio: You’re going to have to pay taxes, which is fine. And that’s leading to more worldwide adoption, which was seen like crazy. I mean, Google just invested in so does SoftBank invested in gray scale has a 10 billion dollar valuation. These guys are just starting to get into crypto now, and grayscale’s huge, more than just ETFs data analytics platforms and person companies like crazy. Now, you’ve got the majors going in and saying, hey, we’re late to the party. That’s why you seen like the Galaxies, the Voyager Digitals, Silvergates, see where that stock has taking off tremendously. Another one, these are pure crypto plays based on the banking and trading.

Frank Curzio: And a lot of companies are partnering up with them because they’re early adopters, and it’s a lot easier to partner with the best of the industry. It didn’t start from scratch again. This is just early in the growth phase. So Brandon, thank you so much for the compliments. Thank you so much for the kind words. I really appreciate it. And thank you for subscribing Crypto Intelligence, as well as everybody else that did. Hopefully, that answers your questions. Any other questions, comments, free to email frank@curzioresearch.com. That’s frank@curzioresearch.com. Thank you all so much for listening. Appreciate all the support. And the good news is, I’m going to see you tomorrow. Take care. I’ll see you in a few hours.

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

Frank Curzio
Frank Curzio, founder and CEO of Curzio Research, is one of America’s most respected stock experts. His research is regularly featured on media outlets like CNBC’s Kudlow Report, The Call, CNN Radio, ABC News, and Fox Business News. His Wall Street Unplugged podcast—ranked the No. 1 “most listened-to” financial podcast on iTunes—has been downloaded over 12 million times.
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