No matter the negative economic headlines, the markets continue moving into record territory.
Curzio’s own Genia Turanova, editor of Moneyflow Trader and Unlimited Income, shares why she believes this market has more upside in the near term… but also why investors should be looking to hedge risk.
Genia also explains how to find income in today’s low-rate environment… and shares two of her favorite dividend stock ideas right now. [31:35]
As happens each quarter, hedge funds are disclosing their holdings. While you shouldn’t just blindly follow these filings, individual investors can gain a ton of insight by looking at what Big Money investors are buying and selling. Get your pen out—here are some of the most notable hedge fund moves of the quarter. [57:53]
- Guest: Genia Turanova, editor of Moneyflow Trader and Unlimited Income [31:35]
- Educational: The biggest hedge fund moves of the quarter [57:53]
Wall Street Unplugged | 735
The world's greatest investors are pouring into these stocks
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 August 19th. 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. Someone once told me that your very worst day can be your very best day depending on how you look at it. I remember being in college at the time, Dowling, Bohemia, Long Island, taking some final classes to complete my bachelor’s. I was 29 years old. Yes, I got my degree late, got three and a half years on working as a research analyst… And that’s when two planes flew into the World Trade Center towers. Of course, you all know the story. But for me, I don’t know if I shared the details on the podcast before. I mentioned it from New York, I was there at that time. But two days after this happened, I was with friend, an ex at the time, and we hoped on the M-train, which was a train I took from Queens, New York, the city, where it goes directly downtown to Wall Street and the World Trade Center.
Frank Curzio: So it was just a 35-minute commute, one train, which is great, from New York City to Queens. And by the way, if you’re not familiar with New York, that’s very, very quick for a commute. Some people live in Suffolk County or Westchester outside of the city and commute an hour and a half, sometimes longer, just one way to get door to door in New York City. It’s crazy. My commute was pretty good, 35 minutes. Now, they close off every bridge, every train station and you couldn’t get into the city unless you’re a city worker, firefighter, police officer. Again, just close it down. So screw it. I really want to go, I want to see this and let’s see if we get it because I really want to see it.
Frank Curzio: It meant a lot to me because I know people that died. So my friend had a car with dust who couldn’t get out of the city for eight hours. In fact, I have one friend whose brother-in-law was very, very high up the chain at the PD and after the planes hit, he was downtown at the time, rushed downtown, and it was him, Mayor Giuliani, and a couple of high-profile people. Again, the planes already crashed, it’s chaos, it’s nuts, and they’re waiting to run into save these people, but they needed the building commissioners to sign off it. The building commissioner gets there and rushed there as quickly as he can and they decide and say, “Hey, the building’s safe, there’s no way that those towers are coming down.” Not faulting them. I mean, nobody even thought that in a million years that those towers are coming down especially with planes hit only the top.
Frank Curzio: So my friend’s brother-in-law sent a team of officers to rescue people. And then first tower collapsed, second one, almost every one of them died. Now, think of that was you. I mean, how fucked up would you be for the rest of your life? Since he knew some of those families, the officers that he sent in, if it was up to him, he would have went in, but he’s in charge. He has to get his orders directly from the mayor, report them. I mean, messed up for life. And stories like that aren’t mentioned the papers, very easily forgotten because it happened a long time ago.
Frank Curzio: Anyway, the train took went right to the World Trade Center and each stop, probably around 10 stops, whatever it is, is police officers getting on, city workers getting on, everybody’s getting on the train. Nobody said nothing to us. We just sat there like we were supposed to be there. I was amazed that we got through. It took us all the way to Chamber Street right by the Trade Center. It’s a sight that even to this day is difficult to describe. Dust in the air, not easy to breathe. I mean, no one’s really wearing mask. We didn’t know at the time how dangerous it was. Some people were. Standing on site, the rubble, which was the World Trade Center. Firefighters were going through it, searching for people because it was still a search and rescue mission, at least until the bodies are found, that everybody knew there’s going to be no survivors.
Frank Curzio: I’ll never forget seeing the faces of people, just blank stares, tears in people’s eyes. Like they couldn’t believe what they were seeing, wondering how the hell could this happen in America. More crazy, how could something like this happen to the greatest city in the world? That’s the worst part. We spent half the day down there, again, walking around. Starbucks, McDonald’s, stores that were lucky to be a few blocks away from the damage, they were giving everything away for free to workers. People bring in bottles of water, cases, masks to police officers and firefighters. There was no racism, no gender discrimination, no Democrats, Republicans. Everyone was the same. They’re all working together to help people during one of the most darkest times America has ever seen. Unless, God forbid, there’s world wars. It’s insane.
Frank Curzio: And I remember getting the chills seeing the kindness, the patriotism, the caring. People were proud to be an American. They’re wearing red, white, and blue shirts. They were wearing badges with our flag. It’s displayed everywhere, everywhere, on buildings, every place, the US flag, everywhere, including the firemen. There’s three firemen that were raising that flagpole, that famous picture, we saw that. I didn’t know was going to be a big deal back then. They died just the day before, but it was there and people were just honoring it. It was coming out of the rubble. I mean, again, a famous picture. It’s everywhere. You guys have seen it before.
Frank Curzio: Everyone understood that yes, we all have differences. We come from different backgrounds. We all have strong opinions. But at the end of the day, when shit like this happens, we all drop the bullshit, we all work together, we all love each other, and we’re Americans. And that’s what I remember the most from that day, the positives. It was a terrible day depending on how you look at it and seeing those people come together. Sometimes it can be a really great day.
Frank Curzio: Now, ever since that terrible tragedy on September 11th, they have a special ceremony which is called Tribute in Light where they installed 88 vertical search lights. Search lights. You know how big one search light is, there’s 88 of them, on top of its battery parking garage, which is a few blocks away from World Trade Center, and they represent the Twin Towers. They shoot all up in the air. So these beams of light shoot to the sky. They could be seen 60 miles away. Almost anywhere in the five boroughs, Northern New Jersey, parts of Connecticut, Westchester, Long Island. It’s an incredibly powerful symbol. That gives me chills just talking about it right now. It’s something that always, always, always brings the New Yorkers together when we see that. Seeing those lights shoot up to the sky in the middle of night to honor those nearly 3,000 innocent people who lost their lives. It’s the day that symbolized patriotism, hope, unity.
Frank Curzio: Remember, even during the darkest moments of darkest times, we’ll always going to rise, always come together in times of need because America’s the greatest place on earth and New York City is the greatest city in the world. There’s no disagreement on that. In the world. If you think it’s crazy, go anywhere. I’ve been to places where people hardly speak English and really, really rural areas all over the world. They don’t speak English at all. You say, “New York, New York, New York!” Everyone has people that they all want to go, the whole world, everybody wants to see. It is the greatest city in the world.
Frank Curzio: Every single year since 2001, the Tribute in Lights ceremony is taking place on September 11th. They said that they’re going to do 10 years. Now, it’s going… they keep doing it. Still a huge, huge event for every single person that lives in New York. And so that brings people together. It creates happiness at a time when I think, today, most people need it because there’s so much hate, depending on which channel you watch. I mean, it would be nice watching the Democratic National Convention. Someone say to the campaign managers, you know what, Americans believes in hope. They don’t like hate. They don’t like angry people. We don’t like angry people.
Frank Curzio: So figure out how you’re going to make things better instead of just yelling at everybody and how everything’s terrible. The best thing to do if you really want to get votes from that middle piece, you’re not going to touch the left and you’re not going to touch the right, they’re going to vote for whoever they want. If you want that middle, be positive. What are going to do? There’s no plans. There’s nothing being outlined. Just hate, hate, hate. You’re going to be in terrible condition. Everything. You got actors and actresses on there who’ve made $10 million over the past four or five years and have no idea to worry about.
Frank Curzio: But really, if you want to get into the heads of people and talk directly to them, talk about what you’re going to do to change and how you’re going to make it better, right? That’s what America is about. That’s what we want. We want to be the best country in the world. We want to be awesome. We don’t want to talk about the negatives. Stop being so angry. Right now, it’s on both sides where you see a lot of anger back and forth. I mean, you have friends I’m sure, if you’re Republican or Democrat, you have a friend on the other side. As soon as you start talking politics, these people you won’t talk to me anymore. That’s how heated it gets. Even though hey, you have a different opinion than me, big deal. Everything I’ve known about you, grown up, is fantastic. You’re a great person. You care about your family. You work hard. But yet it’s resulting in huge division.
Frank Curzio: And you’re looking at September 11th every single year. That’s the one thing that brings New Yorkers together no matter what, but Bill de Blasio, who’s the mayor of New York City, decided to cancel this ceremony. His excuse? Because he’s afraid that people operating it, basically turning a light switch on, are going to get COVID and die. Interesting because de Blasio doesn’t seem too worried about catching COVID when he decided to paint black lives matter in front of the Trump Tower in July. Dozens of protesters, some of them have masks on. That’s okay. Those people are different. They didn’t have to worry about catching COVID and dying. They’re fine. They’re fine. But the people going to turn on that light switch, nope, we’re canceling that. Canceling that.
Frank Curzio: And that was last month. We even know more about the coronavirus, right? Well, the numbers are getting better. We know that nearly every person under the age of 50 who gets infected with coronavirus is not going to die. Look at the CDC data. If you’re under 50, if you take that whole entire sector, it compares to the flu when it comes to fatality rate of the people affected. I showed you the numbers. If you take out the people in the danger zone, even going up to 60 years old, and you combine the rest of stats. That’s how old it is. We know what this disease targets, who they target, and we know a lot about it, and we know that. Doesn’t matter. Again, for all your doubters about the information, whatever channel you watch, go on my Twitter account, I posted on Twitter. Just look at the charts. CDC, right? Everybody believes CDC, both sides, unbiased. Just look at it. Ease your fears that are being spread by people who have an agenda. Again, just reporting facts to you.
Frank Curzio: But hey, let’s cancel the September 11th Tribute in Light ceremony because of people that are going to die of COVID. So de Blasio, not only destroying the greatest city on earth by reducing the amount of police on the streets, allowing violent protests to take place, these are all facts, and the homeless now being mandated in hotels that are now drug havens, allowing protesters to block streets that taxpayers pay for the right to use. See it everywhere.
Frank Curzio: But by canceling the September 11th ceremony, you took it to another level. Because this doesn’t show that you’re incompetent or an idiot, right? That doesn’t know how to read simple statistics. No, it doesn’t show that. I can understand that. This shows that you’re a piece of shit. Purposely, on purpose, preventing New Yorkers from coming together, of course, unless you’re protesting, New Yorkers from being united, supporting your cause. It’s so incredibly important to them, so incredibly appoints them on purpose with no data and no facts.
Frank Curzio: Now, we look at New York City on de Blasio’s watch, the mayor of New York City. You’re the man in charge. You’re the chief, head coach, leader, CEO, numero uno, whatever you want to go, call it whatever. Decide to cut $1 billion from the police budget, more than 15%. Reducing the amount of police officers on the street. Also, likes to disband the NYPD is plain clothes Anti-Crime Unit, which has resulted in what? Homicides being up 30% year over year, shootings are up over 80%, including 51 shootings in New York City this past weekend. Place I lived all my life. Shootings never happen. Rare. Rare. This is safer than ever. Statistics have been fantastic. There’s 51 shootings this past weekend compared to eight last year. This was the highest back 25 years. We’re just through August and, we still a while ago. So you beat by taking police off the street, you’re purposely inciting violence.
Frank Curzio: There’s crap pipes on the street. Talk to people who live there. I do all the time. My friends still live there. Everybody, I know a lot of people that do business there, talk to them. I have a friend that just went to the doctor today. He’s like, “I got to get out of here by five o’clock,” because he’s scared. He has a doctor’s appointment, his doctor is located in New York City. He lives outside New York City and he’s like, “We got to get out of here.” He doesn’t know if he’s going to be able get out of there. He’s got to leave before it gets dark out because they’re a lot of stop streets. Stop you, can’t drive. They pull you out of the car.
Frank Curzio: But you’re looking at the needles on the streets, something reminiscent of the ’80s. Homeless down 20% plus of the hotels in New York City, that’s the occupying, which mostly drug-infested from these people and taxpayers, by the way, are paying 25% of that. Body armor sales are up 80%. New York City gun sales are up 120% in June. I told you even I got a gun. I never thought in a million years I’d buy a gun and my wife wouldn’t buy a gun either. I don’t want it in the house. Now, we want it just in case. Just in case. And you’re seeing it out there. People love to come to houses, say whatever they want to you. They can break in. If you incite anything, and thank god, it’s in Florida, you’re allowed to carry guns, but there’s guys that came out with the AKA, I mean, they’re really getting indicted for all those people breaking into their property. It’s crazy.
Frank Curzio: But anyway, you’re looking at restaurants still remain closed despite the data. Positive data. Now, positive data that, again, the amount of people below the age of 50 who die of coronavirus, very, very, very, very, very, very low. Looking at almost everyone that I know who works in New York City and lives there is moving. Want proof of that? Southampton, that’s where a lot of rich people in New York City own homes, school enrollment in Southampton is up 26%. What does that mean? They’re not leaving for a few weeks. They’re gone. They’re enrolling their kids outside of New York City. They won’t send their kids there. Goodbye. They’re gone. That premium to live in New York is gone.
Frank Curzio: Let’s talk about COVID under your watch for de Blasio. Topic I’d say I’m pretty familiar with, right? People listening to podcast since January, especially when it comes to statistics. Over 32,400, probably 32,500 today, this is as of yesterday, Tuesday. 32,4550 people in New York City have died of COVID. That ranks fourth. Not fourth by state. If New York City was a country, it ranks fourth, behind Spain, France, Italy, and the UK. The only places that have more deaths as a country than New York from COVID. Why is that? Because you decided to put infected people into nursing homes. It’s like putting a hundred beehives in a room full of people highly allergic to bee stings. Again, I’ll give it to you. Nobody knew what was going on at the time. It’s a new virus, we make bad decisions. The fact you don’t own it, nobody wants to own it, is incredible. Again, your numero uno. You’re New York City, you’re the man in charge. That’s you.
Frank Curzio: So to further put these numbers in perspective for New York City, there are 430 confirmed COVID cases in New York City. Believe it or not, that’s not ranked number one by state, not even number two or number three. It’s actually ranked number four, behind California with 635,000 cases, Florida 580,000, and Texas with 570,000 cases of people infected with COVID. So all have a higher amount of cases, but the death rate is what is the most important thing. The death rate of infected for California is 1.8%. The death rate of infected for Florida is 1.7%. Death rate infected for Texas 1.8%. The death rate of infected in New York is seven and a half percent, more than three X more than the most populated states in America.
Frank Curzio: Yet, Mr. de Blasio, the handling of COVID in New York City and the fact that New York City is a warzone that’s unsafe for any family to walk at night, they’re not going to walk at night. It’s dangerous. But it’s not your fault. Again, you’re the mayor, you run the show, tell everyone what to do. But no, no, no, it’s not your fault. Instead, you’re blaming the police, who you took off the streets. It’s their fault people getting shot. It’s Donald Trump, the Republicans’ fault. They only got 18%. Republicans got 18% of vote in New York City from the last election. And 80%, 80% of New York’s congressional delegation is Democrats. How’s is it the Republicans’ fault? Nice try, though. Nice try. I get it.
Frank Curzio: But de Blasio being the mayor of New York City and blaming everyone else, the city is being run down, broke, unsafe, where criminals are not even getting punished, without being captured, beating up innocent people. They’re not. People have been going after them. They’re breaking windows, looting, burning cars, buildings, shooting at people, attacking police officers. And even when they’re caught, these people are out the next day in a few thousand dollars in bail. They’re high-fiving the protestors and get out. Hey, yeah, I’m out. Great. So you hit that police officer, they’re head with that pipe. Good for you. You’re out already. It’s insane.
Frank Curzio: But de Blasio… I’m going to let you in on a little something. Because being the mayor of a city, a mayor of a city, and blaming everyone else for becoming a shithole… he compared it to stock, it’s like Tesla going bankrupt then Elon Musk blaming his shareholders. They just stopped by the stock. They screwed the company. It wasn’t me. I didn’t do this in here. No, it’s Elon Musk’s fault. There’s a reason why we have mayors and governors in place. That’s a reason for that. He won’t even accept any help from the federal government. No, not for violence, not for protests. If we do, we’re going to fight it. We’re going to fight it. We’re not going to accept any help. And to use Black Lives Matter to further your agenda is an absolute disgrace. And seriously, if you really cared about black lives, you would listen to them. Over 80% want more police on the streets, not less.
Frank Curzio: Many have seen their homes looted, businesses destroyed. Decades of hard work completely gone, not because you’re incompetent, purposely, purposely push your agenda of chaos, more crime, fear. And for me, it’s… I never thought I would see a time when families can no longer walk in the streets in New York City at night. Can’t go to Times Square watching all the city performers. You can watch at one, two o’clock in the morning, jumping around in suits. It’s the greatest thing. It’s so cool, you can’t see that anywhere. Anywhere. You don’t see that anywhere at two in the morning. Stores and restaurants open through the night.
Frank Curzio: So congratulations. You managed to purposely destroy over 30 years of economic prosperity in New York City and you did it in just a few months. But it’s not your fault. It’s not your fault. No problem. And by the way, if you’re listening to this and say, “Oh it’s, Democrat.” We didn’t see this happen under Bloomberg. I’m a big fan of Bloomberg because he’s a serious control freak. He wants control the way people eat, people laugh. I didn’t like that. He would have never ever, ever, ever allowed this to happen. This didn’t happen on his watch, a Republican. Giuliani never allowed this to happen either. Had a lot of cleaning up to do. Even Andrew Cuomo, who’s the governor of New York, who, actually, did a remarkable job at the Democratic Convention talking about how great he did for New York City during COVID. I mean, what the fuck?
Frank Curzio: It’s okay. It’s okay to be… everybody was wrong. It’s okay to be wrong. It’s the time when we never saw anything like this. Fauci has been so wrong. The President’s been so wrong. Everybody’s been so wrong because this is new. No one thought you’re going to shut down. Nobody saw this come. Nobody saw at the extent that this was coming. It was going to cause that many deaths. There’s a lot of mistakes to go around. Own them, and learn from them and hopefully, we could save lives.
Frank Curzio: But New York’s death rate from COVID, the idea to send a massive ship with hospital beds in New York City that you never ended up using it’s only because the numbers were out of control. Where? I mean, Cuomo deserves responsibility for this, as well as de Blasio, where putting people in nursing homes create that death spike. Without that death spike, COVID would be so different right now because that was the first thing we saw in New York City, and we’re like, “Holy cow, this thing really kills people.” It’s killing 10% of the people who get infected. This is like SARS. Everybody, get out. It’s not. That’s why the rate’s dropping because we’re keeping those people who this disease targets safer.
Frank Curzio: But having that speech, Democratic Convention, come on, you can say, “Hey, New York still… ” You can’t brag about the job you did, buddy. Give me a break. Getting back to Cuomo, when talking about the job de Blasio is doing, and these guys don’t like each other, but they’re okay because they don’t like show, he said that New York City was slipping back into the battle days of the ’70s and ’80s. And on June 2nd, not long ago, he says he has the ability to remove de Blasio from office, but he did stress where not at that point yet. You don’t really hear that from a governor. Yes, he could remove the mayor and he said it on June 2nd. But you also say, “We’re not at that point yet.”
Frank Curzio: Mr. Cuomo, the point you’re talking about, you just drove by doing 90 miles an hour. It’s here. What else are you waiting for? The entire city to burn down? A hundred percent of the people living in New York gone for good in New York City? Is that what you’re waiting for? What point are you talking about? We’re not at that point yet. Are you kidding me? Have you been to New York City? Are you there right now? You’re just broadcasting from a nice little place wherever, safe environment, where you’re being protected by police, going on Zoom.
Frank Curzio: What are you talking about? What point? We’re not at that point yet. We’re there and de Blasio needs to be removed. This is being done purposely, creating an unsafe environment, not condemning violent protesters. Purposely taking police off the streets to protect and serve innocent people. Like you say he’s not an incompetent person making horrible decisions because he’s just stupid. This is a guy that’s dangerous. He knows exactly what he’s doing. He’s keeping the economy close. Schools are still closed. Churches are still closed in New York. Churches. And by canceling September 11th, that lighting ceremony, for fears that people would die of COVID. Again, there’s guys painting black lives matters and protesting everywhere, right? It’s the nail in a coffin. It shows this man’s going to do everything to keep the Yorkers from uniting, New Yorkers from coming together to honor and remember the 3,000 innocent the people who died September 11th, which impacted every single person living in New York City. It’s something where we all come together, put our differences aside, and just remember.
Frank Curzio: Now, the one bright spot here, Andrew Cuomo, just a couple days ago, is reversing course and said de Blasio should have done more to protect this event, so he’s putting safety measures in place to make sure the Tribute in Light ceremony takes place. Don’t you think you need it now more than ever? Good job on that, Cuomo. If you’re from New York, you know how important this event is. I know you want to keep everyone divided. It’s better. It’s going to support some people’s agenda. But not this event, guys. Come on. Not this event. You can’t tell me protesting is absolutely fine, yet that Tribute in Light ceremony is not because of COVID. It’s just a joke. So I’m glad Andrew Cuomo did the right thing and again, it’s nice. Isn’t it nice when just simply, it’s the right thing to do? Isn’t it nice?
Frank Curzio: Now, I usually bring a lot of this stuff back to investments. This is more of a personal thing for me for New York and hearing the stories from my friends that call, “Frank, you have no idea. You have no idea.” Everyone just saying you have no idea. We can’t go the city. It’s crazy. And yes, it is going to have significant impacts when you’re basically showing that the greatest city economy in the world, the rich people are leaving and going back to the ’80s. It will have significant consequences. But de Blasio, he has to go. He’s not doing this because he’s incompetent. He’s not doing this because… he’s doing this on purpose and it’s resulting in people’s lives, more violence or worse experience. Someone that needs to be removed. I know there’s couple of years left until he’s gone. We should get him out of that before that. I don’t care if he’s a Republican or Democrat, someone who’s doing this purposely, removing police from the streets and making places more dangerous, who have lived there their entire lives is absolutely insane. End of rant.
Frank Curzio: Hard to segue after that, but we’ll try because I have an awesome interview set up for you today with someone. I’m actually receiving tons of positive emails from you, and rightly so. When I say youth subscribers too, her two new products, which she writes in Curzio Research, Moneyflow Trader, and our newest publication, which is Unlimited Income, and that’s Genia Turanova. She’s been one of my best hires at Curzio Research. She’s an incredible analyst. Someone that not only has an amazing track record over the past few decades, and especially for us since I hired her, but someone that loves to educate her investors. Could tell you what to do with every position. Yes, even the ones that she’s wrong on, but it’s educational. It’s teaching people how to buy income related stocks, how to use options, but just the feedback I’ve been getting is amazing. Definitely listen up guys.
Frank Curzio: She’s going to share a lot of new ideas with you, including some income plays that not only provides you with income, which is tough to get these days, right? The interest rate is low, but are also growing faster than the market, which is the key to generating massive returns through income stocks and income investing, which again, it’s unconventional. People just don’t want to even look at the underlying stock and see if it’s growing, if it’s in the right industries. They say, “Oh, 3% yield. That’s great. Let me buy it.” It’s different. Her performance is fantastic in this newsletter. We’re looking at I think there’s 10 positions, nine or 10 positions, she’s up on more than 90% of them. So again, great emails.
Frank Curzio: She’s also going to take into Moneyflow Trader where she’s concerned with option strategies to bet for and against certain stocks, individual stocks and sectors. And for me, I love this newsletter just to teach you how to hedge your portfolio by using a small portion of your capital, yet opens the door to quick triple digit gains, which Genia’s just showed us, subscribers, betting on silver and gold over the past few months, really, really, really, really great trades. More than three X, more than if you just bought the spot prices. So really, really great interview coming up.
Frank Curzio: And in my educational segment, pay attention. I’m going to give you tons of ideas because it’s 13F time where hedge fund managers, fund managers, anyone who manages, I believe it’s about over a hundred million dollars in assets, they have to disclose their holdings every single quarter. That usually happens pretty much a week or two after earnings season ends. So they’re all coming out with their holdings. And again, 13F doesn’t mean they still hold the stocks, but you could find a lot of value guys who are buying positions and usually add to them over time. Of course, if you’re looking at high frequency traders, don’t even look at it. It doesn’t even matter. Renaissance, they probably add up this position in two seconds. They don’t care about fundamentals or anything. Just again, guys, I won’t go there. I won’t have another rant on that.
Frank Curzio: But if you’re looking for new ideas, because this season’s 13F, and I usually don’t say this, I break this down and tell you what has interest me and I always find great ideas because let’s say to go on buy them. These are stocks that they owned for the past three months and some of them may be out of them. But for me, looking at these ideas and then following along, maybe next quarter, see if they’re adding, and then sometimes you’ll see these stocks fall 15, 20%, I find tons of great ideas by looking at 13Fs. Ideas that I’ve shared with subscribers that they made a lot of money on. So pay attention because you’re going to see tons of surprises, things I never thought you’ll see.
Frank Curzio: It’s a big change shift in sentiment and nobody’s really talking about it. So you all have access to 13Fs now, to all level playing field. You can just put 13F in Google and there’s tons of sites that’ll come up that list a lot of top managers and the positions that they added, the positions that they’re selling, the ones that are totally out, the new positions. Everything is right there for you to see, to see what these guys are buying, what they’re selling, how they’re positioning, especially into the election. So again, if you look for new ideas, this segment is a must listen to. At least 20 stocks are going to mention, not all of them are longs because some hedge fund managers are actually selling their legacy positions, positions that they’ve been in for many, many years, which is surprising. Again, lots of surprises here, so listen up.
Frank Curzio: Before we get to my educational segment, let’s get to my interview with one of the top analysts I know and that’s Genia Turanova. Genia Turanova, thanks so much for joining us again on Wall Street Unplugged.
Genia Turanova: I’m happy to be here again. Thanks for having me.
Frank Curzio: So I guess let’s start with this because everybody hears opinions through podcasts, everything with the markets and through Twitter, and social media, everything, but I want to get your thoughts where we’re still seeing a big disconnect between Main Street who’s struggling and Wall Street where stocks are just at new time highs. And we know businesses and people having trouble making ends meet due to the lingering effects of COVID. Some of these businesses are still closed around the states and yet those stocks are hitting all-time highs, we just reached all-time highs for the S&P 500. So what are your thoughts on the overall market here because I know there’s a lot of mom and pop investors, individual investors, retail investors out there that are pretty confused.
Genia Turanova: I can understand that. It is confusing. But there’s a few reasons for the market to be up, there are several reasons for the market to continue to rock, and there are several reasons for us to be a little hesitant here. But still, this can go on for much longer than the many of us have anticipated and even for optimists in us that apparently do anticipate. Because what is happening here is that we are drowning in the sea of free money. The rates are zero. The Fed has made sure that the rates were zero back in the beginning of spring, I think end of March, that’s what they said. Don’t worry, we’re cutting it to zero. That didn’t quite work and then they came out and said, “You know what, we’re going to buy everything we can on the fixed income markets,” and that helped.
Genia Turanova: There reason it helped because a showed not only that liquidity will be back in the amounts that the market is needed. It also showed that they will do literally everything they can for as long as it takes to support the market and the economy. But the economy is really, in this case, as the secondary function of the market because the market marked up their rate. Financial market marked up their rate. For the economy to operate, that’s not the only condition, but it’s one of the conditions. And now, the Fed has continued to say it. We will stick to the plan. We will keep the rates at zero. Don’t worry about it. That will go on and on and on. And the market acknowledge it and it’ll go on forever. So where else will we go? We can’t buy anything else other than the best of their markets and larger stock stocks and that’s why mega caps outperformed. That’s safe. The market is still looking for safety.
Frank Curzio: Now, speak about that safety because we created a new product, Unlimited Income, which you write for us to Curzio Research, one of our biggest selling front-end products. When we say front-end, it’s very, very low price. People can afford it. I love people coming in and seeing your research firsthand. You get a lot of positions in there. I want to say probably at least nine, 10 positions and I think only one’s down. You’re doing fantastic. But one of the things that people seek because of what you said is income, right? Because interest rates are zero, it’s very hard to get yield out there. And we created this product not to say, “Hey, we’re going to recommend the biggest names, you’ll look at yield.”
Frank Curzio: It’s almost like an unconventional way. It’s not unconventional for some people, especially me, especially you because you this is how we view how you should buy income stocks. But talk about this product a little bit and how it differs from just the conventional thinking of everyone when hey, this is an income product that you’re just going to buy Intel at a four and a half percent yield. It’s much, much more detailed than that. But talk about Unlimited Income and a little bit about your methodology because people are dying for yield out there and they’re nervous buying stocks at all-time highs, so I could see that they really need someone to steer them in the right direction.
Genia Turanova: Right. So yes, it’s such a concern. And we all really are in the same boat here. The S&P 500 yields more than bonds. Think about it. Just for the first time ever, the S&P 500 yields more than the average over compared to high equity bonds. You can’t really get anything else in the market that pays dividends or any kind of yield to you and has a potential to increase that payout. Fixed income has this name fixed income for due diligence. Once you buy, the income, it’s fixed. If you buy individual bonds, you have a promise of a return to the principal at the end, but the annual payout is fixed. Bond funds is a slightly different story, but let’s stick to individual issues for now. They don’t yield anything, just take off.
Genia Turanova: High yield is slightly better in terms of income, but it’s risky. The S&P 500, on the other hand, at least has the potential to grow earnings and, potentially, grow dividends. The trick is you know what to buy, you know where to look. Don’t go for the highest yield, and be very careful when you’re buying, and be very careful during the sell off, which at some points will come. Be confident in your choices, but be nimble enough to say, “You know, guys, I was wrong. The stock is not going to grow. These dividends are not going to increase anytime soon. This is a losing sector. This is a losing company. Let’s give up. Let’s reposition. Let’s buy something else.” You want your income, you also don’t want to lose your principal.
Frank Curzio: And one of the things I’m looking at, because I have your portfolio up right now, it’s interesting because you’re still able to find pretty decent yields, a couple of 3% yield, there’s even one of 4%, but some of them are 1.9, one is 1.4%. And I know people might say, “Well, this is an income newsletter. I want more income,” but could you talk about the importance of those capital gains?
Frank Curzio: Because people don’t realize when they say Buffett, he buys, and holds, and does great, and compounds it, and the compounding includes the capital gains and that’s why he became… with that and plus, he leveraged to insurance and put more money into everything that he bought because he’s very smart. But if the capital gains on top of the yield where I think sometimes people just look at a 4% yield and if a company’s not growing or if the stock was down 15% that year, that yield is meaningless. Could you explain why you shouldn’t overlook a one and a half, 2% yield or yield lower than 3% for income because of those capital gains and because of that growth?
Genia Turanova: Well, you want everything. Ideally, you want stock appreciation and dividends because, again, what you want, you want the market to recognize that the stock you own can grow and that’s how this game is played. The winners get all the attention, the losers get dumped. And again, the high yielding stocks, they’re in the process of being dumped, so many of them, because the market does recognize that these companies are in trouble. They can grow revenue, the profits are in trouble, the margin is shrinking. The business is in the wrong area of the economy or something is wrong with the execution and the market does heed before many of us or some of us do.
Genia Turanova: And this is the way some of these companies are showing huge yield. You won’t want those yields. You want the potential over future yield growth and capital gain appreciation. You don’t have capital gain appreciation, you have a higher stock price, you, in theory, can create your own dividends. You can sell a little bit of your stock if you need income and act as if this is a payout of your stock. What’s the difference? Money is money. Let it be called dividends, it will be treated differently, of course, from the stock point of view. But if you’re holding his long-term, it really wouldn’t matter too much. And on the other hand, whatever the tax treatment is, it should be the last of your concern because it’s better than losing.
Frank Curzio: It definitely makes sense. I want to switch tunes here. It’s important for people to realize that because I know when they see yield product, it’s like boring. What are you going to buy until whenever? It’s much more detailed than that because you really have to focus on the growth. These have to be great underlying businesses that are growing and, unfortunately, with COVID you had to be lucky. I mean, you look at Target and Walmart, the numbers that they just posted, 25% growth in revenue Target just report. You see massive growth these companies, yet look at Kohl’s. So there’s a massive difference where some are okay and some aren’t, but you want to have that yield with that growth potential because that’s how you really generated those massive gains and also with that income component.
Frank Curzio: But I wanted to turn to Moneyflow Trader because this is one of our newsletters that I love. It uses conservative option strategies to bet on stocks, when…against or for stocks. Whereas a conservative option strategies you’ll buy puts to the point where you’re only limited to the amount you’re putting in, right? You’re not shorting a stock and if you short one of these, Tesla or something, whatever, which is not the best example, I know, that was my previous-
Genia Turanova: It is a good example. You really don’t want to short Tesla.
Frank Curzio: Yes, these high-flies. But talk about this product because the reason why I created it is I always looked at it as a hedge because the market is risky. This is a place where I would look at it as putting 10% in your portfolio, meaning that if the stock market’s surging, you’re going to see some losers in this, but the rest of your portfolio is going to be doing fantastic because you probably long that 90%. Yet if the market does come down, that small 10%, which you showed in February and March, then some of those positions can go up three X, four X, five X, 500% gains. And I think that people understand using that, it’s almost like an insurance type thing. Talk about that product a little bit because it’s really something I love and it just complements what we do here.
Genia Turanova: Actually, I do think it’s like insurance. It doesn’t pay, it doesn’t pay, it doesn’t say. Ideally, you really don’t want it to pay. But considering that this is our stock market, we all know that it will never go off in a straight line. It will eventually pay. Unlike your car insurance, that I wish you will be able to just pay in and you’ll never get a pay back. But with this product, just like six months ago or five months ago, I’m confident, no guarantees, but I’m confident that this kind of insurance policies will have some payouts and depending on the situation, depending on the way we’d lay it, this payout can be very significant.
Genia Turanova: And in any case, this is what allows you to stay invested if you know that you are protected. You can go along. You can be in the market if you are free of fear. And that’s having those protections, of course. Having that protection is one part of our strategy. And when we realize that the market is really cool, that you’re liquid, and the Fed is not going to stop in helping the market, and all possible level of liquidity is out there and all the liquidity is unleashed, we’ve added liquidity place. So even though it’s a protection insurance kind of a newsletter, they actually made pretty decent gains, triple digit gains already this year, somewhere playing on that opposite side of the market consider on that liquidity.
Frank Curzio: Now, talk about those trades because this is important to realize when say, hey this is the insurance space, but even when we saw this product, for me, I never want to handcuff any of my editors because I was handcuffed when I had a stock and under 10 newsletter for the Street.com. And there were stocks at 13, 14, 15 that I loved that went to 60, 70, but because of the way the newsletter was mandated under 10 and then I switched that and said okay, you want to be able to look at the whole entire market and go long or short. So you took positions in gold and silver, and everyone’s who say, “Oh, I own gold,” and now they do. But the position that you took a couple months ago, in terms of options, where people just bought the underlying ETF defaults the spot price of gold and silver, yeah, that would have been up.
Frank Curzio: But talk about those two trades because using your option strategies, like you said, you locked in very, very big gains on these, at least the silver trade and the gold trade, I believe is still open and you’re doing fantastic on, but talk about those two trades and maybe take us through a trade, like actually how did you do the silver trade just the way people understand it because it’s a lot easier. People hear options and they get nervous. It’s very simple. You go in your E-Trade account, you could do it, and you tell them exactly what to do, what to buy. It’s pretty easy. But why don’t you take us through that silver trade? Because the timing on that was really, really good.
Genia Turanova: Silver is slightly different from gold because it’s an industrial metal. It’s precious metal, but it’s industrial. And this quality of the metal is the one of the reasons that it’s been lagging gold for so many years. Looking at the Fed’s liquidity, it seemed to me that it was finally silver’s time. So we took a position in silver. I think we took a couple of positions, in fact, before we trialed it. We did it, I think it was in May and June, and silver really took off at the end of June. Have we done just straightforward silver play and on the metal on the silver ETF, SIL… I’m sorry, SLV, not the silver mining. The silver ETF that represents physical metal, it would have been 50% depending on the entry points, maybe a little bit more, maybe a little bit less. With books are 200% plus gains on each trade.
Genia Turanova: So we did it in two steps. Every time, I explained why, why now, why do it slowly, and how. And then when the time came to take the gains, well, again, I explained why now is the time and how to execute. I’m looking at the silver trade right now, so one-half of silver, let’s see, is 265%. And the other would book 220% gain. Again, this is the power of leverage. The underlying security, the silver ETF was up significantly less than the gold that we’re invested in.
Frank Curzio: Yeah, and I appreciate you finding it because I know… for me, I just asked questions off the cuff, so I appreciate you going back in that trade just comparing it because I know you just did that. So okay, if you did the ETF… so no, I appreciate that. But you’ll get 200% plus gains compared to 50% gains, right, using these options strategies and you’re still in that gold position. But just going through that process, and I love the fact that you really explained in detail, in writing how to do this, it’s been tremendous for investors.
Frank Curzio: We always get positive comments on it, and I appreciate that because sometimes, it’s a big component of what we do when you’re talking to retail investors. I mean, these are people who are learning things for the first time. These are people who have jobs in every way, and they’re very successful in their jobs. This is what we do where if you don’t understand it, you’re not going to make money off it. So going through that extra process, I really appreciate your writing, which is fantastic. And I guess we’ll end with this: Everyone always loves ideas, maybe on the income side, do you have any ideas to share that that maybe people could buy right now?
Genia Turanova: Considering that we’re talking about precious metals, I like, it used to be a silver streamer, but now it’s a precious metals streaming company with precious metals, WPM. It’s in the business of essentially buying the byproduct of other companies, of other mines that are not precious metals mines and are selling it as its primary business. So it’s a precious metal company, but it’s not a minor. Not the highest yielder and because of the price appreciation this year, it yields less than 1%. But it’s a fantastic way of getting some yield, getting less risk than the miner, and benefiting from their potential appreciation in gold and silver.
Frank Curzio: And any more to share that you might be able to share? I think everyone’s going all in on gold right now and all in on silver, so I guess you’ll be seeing appreciation. But yeah, I know that you love sharing ideas, so I’m going to try to get at least one more out of you, so let’s see if we can.
Genia Turanova: More? More?
Frank Curzio: One more. Let’s get more.
Genia Turanova: Okay, sure. I was doing materials again. I like another material, but it has nothing to do with gold or silver or even or oil and gas. It has to do with industrial production. It’s actually investor and gas company called Air Products and Chemicals. One of the leading industrial gas companies in the world. I like it because it’s the dominant. I like it because it’s important for everybody else. So whatever is happening elsewhere in the economy, we will need manufacturing, we will need their refining. We will need green economy, which is hydrogen, which APD is working in, and it does yield. Right now, it yields 1.9%. In January, it hiked its dividend by 15%. It was the highest increase, dividend increase in the APD’s history. Of course, this was back in January, but still, it is an extremely strong company with a significant potential.
Frank Curzio: No, that’s great. And I know those two positions that you have in your portfolio that you’re also doing well and you think they’re going higher. So we’re not giving away free stuff. These are positions that if you’re subscribed to, you’re very well in right now, but I know you still like them and APDs, Air Products and Chemicals guys, and in precious metals, WPM, you should a look.
Frank Curzio: So Genia, like always, I love when you come on. I’m getting so many good emails about your products and how you’re doing in them and just how you’re educating investors. It makes me really proud. So I just want to say thank you for all your hard work. I know how hard you work here, market junkie like me. You love this stuff. It’s probably not even work to you, but I really appreciate the job you do, and I know my subscribers you too, so thank you so much for coming on.
Genia Turanova: Thank you very much. And thank you for all the nice words and kind words that everybody writes in. Thank you.
Frank Curzio: All right. Take care.
Genia Turanova: Bye-bye.
Frank Curzio: Okay, guys, great stuff from Genia. And I love the fact that she does interviews on my podcasts. She also spoke at the MoneyShow event. She doesn’t like to do these that much because English is not her first language, right? It’s easy for her and it’s tough for anyone, right? Going in front of a crowd and that’s not your first language, sometimes it’s difficult as you can hear on that. Don’t, don’t, don’t mistake that for how smart she is or her newsletter because you probably even know that she actually taught economics in the Ukraine, probably the best place to teach economics with the inflation rate exploding and going over different things. Things that you don’t really see in the US, a lot easy, right?
Frank Curzio: A lot of our numbers are transparent. Some of the other places they aren’t. But she’s been a teacher, a great teacher, and you could see that in her newsletters. That’s why we get so many positive emails because even when she’s wrong, you get to see what to do with the position. She explains option strategies very simply in her newsletter. And right now, we are offering a very big discount on Unlimited Income, which is available to you, listeners. You can go to our website, get a special discount. There’s also a link at the bottom of this. But for me, I lowered the price. It’s basically one of our lowest priced subscriptions. We are independent, we don’t get paid by anyone. So the fact that we lower these prices for me to show what Genia could do. And once you see that, that leads to you buying maybe other products from Genia, right? That’s the way it works. For me, I’m a show-you-person. I’m not a tell-you-person.
Frank Curzio: I actually have to promote her because she doesn’t like to do this part., And the reason why I promoted her is because she’s making people money and she’s doing great and that’s why I want. I want to put great people in front of you, that’s why you listen to this podcast. Standard subscription for this is very, very affordable because I want everyone to see Genia’s research firsthand. So really happy because we launched this a few weeks ago. We had beta version, which is why there’s so many really good stocks and newsletter-ready, she’s doing fantastic. But the emails that we get have been fantastic, and I wanted you to see her research firsthand because once you do, people become subscribers for a long time and this has been one of the best-selling front-end newsletters, low priced newsletters, in Curzio Research history. That’s how many people took advantage, and that’s why people are so happy.
Frank Curzio: Again, it’s nine to 10 stocks are up. Past performance is not indication what’s happened in the future and all the disclaimer bullshit. But you could see from the performance, you could see from her research, and you can go back and look at the issues of how much research she does behind all of her picks and it’s really, really fantastic. So I love the fact she came on. Just awesome, very happy. And I said earlier that Genia is one of my best hires at Curzio Research. Someone that I trust with my subscribers. And it’s really, really nice to see the emails coming in because, guys, I say this all the time, with our business, Curzio Research, we’re launching a token. It’s going to allow people to an equity stake in our business if you want. It’s coming out in a few weeks. Lot of stuff going on behind the scenes, it’s been busy. We’re going to become the first security token in the world to trade in a global exchange available to retail investors. Something I’m really proud of.
Frank Curzio: And I love that. I look at it from a shareholder point of view and I look at it from just subscriber point of view and people listening to this. But the biggest thing for us, and the way I wanted to run this company, is a lot of times in businesses, the sale is the end point. Hey, we made a sale, that’s it, let’s move on. For us, the sale is the starting point. That’s the handshake. That’s you saying, “You know what, let me give Curzio a chance. Let me give Genia a chance and see what this is all about.” That’s when the relationship starts. So it’s up to us to provide you with great ideas, above average returns. We want to provide you with… educate, teaching you how to actually buy stocks and what we look at from our 20 years of experience.
Frank Curzio: So the fact that people sign up and buy that newsletter and then go out to actually type our email and send us an email saying how great the product is, as the business owner, you can’t be more proud of than that and that’s what we do here. So I want to thank Genia for all the work she’s done. She’s been fantastic and again, one of the best hires we have here. Trust her a hundred percent and just yeah, to put her in front of all the subscribers and see what she’s doing, it really, really is cool.
Frank Curzio: Now, let’s get some educational segment. 13F season. 13F suggests with the SEC, all hedge fund managers managing, I’m pretty sure it’s over a hundred million in assets, which is pretty much the ones you really care about the most. The big asset managers have to disclose their holdings, their buys, their sells, stocks they added to, and they do it well, two weeks. They release this stuff after the earning season around, but they all release kind of the same time. There’s a lot of different places you could find this information. For me, I love to break this down because some people do a little bit research on it.
Frank Curzio: For example, how did you know that Buffett bought Barrick gold? It was everywhere. He bought it. So funny because I knew it probably half a second after this news was publicly released right. And it’s funny, two weeks later, I had people in the mining industry, “Did you see that Buffett bought?” I’m like, “Yes, yes.” I cover everything, not just mining stocks, but it’s funny how a lot of my friends in the gold industry, mining industry, “Did you see that?” Yeah, we saw it. We know. We know. But people looking at Buffett saying, “He bought Barrick,” well, they’re using it, and from what I’m my hearing too even from a lot of gold bugs, this is a sign America is going to do bad. We’re going to see crazy inflation and it’s a store value because he hated gold for such a long time. He didn’t see the value in gold.
Frank Curzio: Buffett is buying Barrick not as anything else with the US or alternative currency. He’s buying Barrick because Barrick, and Newmont you’re looking at as well, these large cap gold companies are like technology stocks when it comes to margins, when it comes to profits. These companies add in 44% growth year over year. You’re looking at debt for Barrick came down from 3.4 billion to 1.4 billion and they have another… was it three billion or so on their balance sheet? It’s incredible where the all-in cost, the all-in sustaining costs, which the number you should care about the most, how much it totally cost for them producing now, is a thousand dollars. Well, when gold is 1,500, those margins are good. When they start going up, they explode. Everyone thinks gold’s going over $2,000.
Frank Curzio: So sitting on massive cash hoard, that’s why they go out and buy so many junior miners who have the best assets, have been so undervalued, that’s you’ve seen that market take off. But Buffet’s a fundamental analyst. Again, you could say, “Well, his guys bought it,” but I’m sure they have to go by Buffett considering that Buffett said that he hates gold stocks for the last 30 years, “Hey, is it okay if we buy it?” I would think so. Because he knows Buffett’s going to get shared returns on TV for this and say, “Hey, you didn’t like it. Why do you like it now?” Same for the airlines.
Frank Curzio: But if you look at Barrick, and Newmont, and the gold industry, these companies like technology plays when it comes to margins. They’re incredible. They’re like software companies. You could say whatever you want and I mean, if you really thought America is going to end and that that’s going to… whatever, he wouldn’t be long anything and he’s still long everything, other than a couple of things. He did sell a big, big position at Wells Fargo. It’s been like Sea Holdings for a long time.
Frank Curzio: But some of the things that caught my attention, I wasn’t joking, I wasn’t playing at the segment like surprises, I have third point down-low when the greatest investor’s out there buying JD and Alibaba. That was kind of surprising to me. These are companies that are going to be listening in Hong Kong and listed to Hong… just US, they’re fighting. You would think that to buy them right now, it should very interesting. Maybe it’s a more of a play where if the Democrats win, because Trump’s pretty much been all over China and there’s a lot of friction there, and maybe they feel like that’s going to ease.
Frank Curzio: I know that the poles are getting, polls me nothing, guys, but the polls are getting closer and closer, right? The margin is getting closer, but still you’re looking at Democrats, predicted to win, Biden’s predicted to win, maybe that’s the play. He had a ton of Disney, which I think makes sense. It’s something I’ve been wrong on but hey, if people want to pay up for this company at this level when I’ve broken down the fundamentals for you and they are horrible, this is a company’s every divisions impacted sales down 40%. The only thing that’s good is, well they say that they’re good, is to sign up more people to Disney+, but the more people they sign up, the more money they lose. It’s a huge, huge money drainer, which they don’t have.
Frank Curzio: They paid a fortune for this. By the way, Fox sold them those assets for, what was it, 70, $80 billion, whatever. What a great sale, man. Holy cow, Fox. Fox Entertainment assets, great job for selling right the top. But they took on more debt than they’ve ever taken, but nobody cares. But I could say if people are comfortable buying Disney now, what do you think this is going to be six, eight months from now where COVID numbers are all getting better across the board, death rates are going down? You’re looking at all the numbers. I’ve covered this. Go to my Twitter account, @FrankCurzio. I have lots of charts, do live videos. All this stuff’s coming down. It’s getting better across the board. And the death rates pushing at 3%. It was at 8% at one time of the people that get affected. Fatality rate, you look at the numbers coming down tremendously across the US. Even more people getting tested. We know that this impacts a certain group of people under 50. Hardly anyone dies from COVID under 50. Just look statistics. Again, CDC, it’s all there. But yeah, some interesting stuff there like Disney.
Frank Curzio: You have Trian Peltz selling GE and significantly, he’s taking a big loss. He’s held that stock for a very, very long time, but it’s interesting to see him selling it now. I would think that GE would do good or better going forward as the economy gets better, more people buying plains, healthcare division. I would think from this point, I’m just surprised, if you held on this long during everything else, I’m just surprised that you’d be selling here with… there’s more optimism around COVID. I’m not even talking about if we get a vaccine, but if you figure, six to nine months, I think GE, the divisions will start picking up.
Frank Curzio: David Einhorn, Greenlight Capital, has been doing great lately. Everyone talks about, and I was quick to mention too because it was a good five, six year stretch where it was terrible, terrible. But he’s doing much better now. He also bought GDX. That big name going into gold, 1.8 million shares. Looking at Stanley Druckenmiller, Duquesne Capital, buying Carnival Cruise, new position 2.8 million shares. Surprise, surprise. That’s such a surprise.
Frank Curzio: It’s not such a surprise if you are a Curzio Venture Opportunity subscriber, plus, it’s not a surprise if you listen to the past few podcasts, how I said small caps are going to explode if the Fed puts in yield curve control, which they’ve only done one time in the history of America, 1942. There was a big presentation on it for the MoneyShow, live virtual thing you could… we’ll send it to you if you want to see it. I don’t know if you want to see me. A lot of stuff I’ve said on the podcast.
Frank Curzio: But once they do this and they put a fixed rate, I mean, YCC is yield curve control. So when a central bank sets a specific target for interest rates, that’s what they do, it’s a yield target. But then what they do it they commit to buying whatever amount of government securities are needed to maintain this target. Now, how is that different from what they’re doing now? Right now, the Fed fixes the amount of monthly purchases under a regular program, which is called you guys know it as quantitative easing. This is different. Because they’ve only done this once, 1942, World War II. So the Fed cap yields at two and a half percent to help the Treasury basically fund debt in World War II. And if you look at what happened over the next 10-year period, holy cow, if you’re looking at asset prices, homes, the price of homes surged.
Frank Curzio: Again, that what this does is it shows that the Fed is committed to low rates very long-term and the market loves, the market is a forward-looking vehicle and this takes a lot of risk off the table. And what happens when you take risk off the table? The riskiest of assets explode. They go higher, and higher, and higher. That’s why you’ve seen Stanley Druckenmiller buy Carnival Cruise. That’s why you’re seeing the ValueAct, ValueAct, ValueAct, I got to say it again because they just bought 11 million shares of Nikola. That’s incredible. I mean, you’re a value company buying Nikola and he bought it last quarter. He’s probably doing well, that sucks up. And easy playing is saying it could be the next Tesla and again, it’s generating whatever it is, I don’t know what the market cap is, how many several billions of dollars in market cap and they’re generating like a hundred grand in sales or something like that. ValueAct. So you’re seeing that across the board.
Frank Curzio: David Tepper, one of my favorites to follow, someone I admire very, very much. He was ahead of the market. He took a big position AT&T, nine million shares, new position. It makes sense. Markets coming back, the economy coming back. AT&T has leverage to the consumer, which switched the whole entire business over. And streaming, and HBO, and plus, it pays a nice yield that’s perfectly safe. I’ve covered that numerous times.
Frank Curzio: People say, “It’s 200 billion in debt, the most debt… ” They generate $30 billion in free cash flow from everybody paying their bills every single month. I mean, it’s just monthly recurring revenue. That’s why you’re seeing some of these companies, even the cable companies, once you have that recurring revenue, it’s why Disney switched its whole business model around because they don’t really have that recurring revenue model. Now, they’re trying to do that by building up their streaming business because all these other companies had that revenue coming in constantly, constantly, every month, every month, every month. Charge advertising and tracking everybody and all that stuff, you make a fortune.
Frank Curzio: But buying AT&T, he also bought 1.2 million shares of Disney. Again, I was wrong on Disney, but if people really believe that Disney is in a good position now, they’re going to be in a much, much better position six months from now. As these parks start increasing that capacity, more people are dying to get out of their homes, man. Holy shit, they’re dying. Adding five million shares too, another stock that I think is garbage. Well, maybe not so much garbage, but Goodyear, right? You see more cars being sold, but he added up to five million. So I think it added about 1.7 million. Now, it’s a five-million share position at Goodyear.
Frank Curzio: So when I look at 13F, guys, this is what you want to pay attention. I probably just shared like 20, 30 stocks. The trends that I saw is a lot of these guys are taking on more risk. They’re getting rid of their legacy positions that are shitty, like Wells Fargo with Buffett, like Trian Peltz with GE, and they’re getting more aggressive, much more aggressive. Some of them are also buying those high yielding stocks with good underlying business models. But the Carnival Cruises, the Nickolas, I’m seeing a lot of plays being bought here that are considerably risky because if you look at the conditions in the market right now, I don’t think I’ve ever seen anything more favorable.
Frank Curzio: I know it sounds crazy to you, guys. Again, when the facts change, you need to change. We’ve bullish for last two months. Before that, I was really worried. I didn’t expect the government to spend as much as they spent and they’re not stopping. But if you’re looking at this market, guys, this is why it’s important, why it makes sense to own risky assets, some of the most risky assets because the risky assets and risky stocks outperform when you have a bull market. But look at Target, 25% increase in sales for a mega stock like that. Makes sense. Also, Walmart blew off the numbers as well, right? You close every other store and you leave those open, that’s what’s going to happen.
Frank Curzio: But hey, you’ve seen that on a consumer level. Super low interest rates are here, plus a chance that we’re going to get yield curve control, which is going to keep low for a very, very long time. You’re looking at home starts and permits. Did you see those numbers? Did you see home prices? COVID numbers getting better across the board and, if you look at it from a tech perspective, we finally just broke out to new highs. If you look historically, when you break through those highs, it’s one of the best times to buy the markets. That’s taking back S&P 500 when it became 500 companies in the ’50s. So now you’re looking at this going “Whoa!” It’s okay to be nervous. It’s cool. Be nervous, be skeptical. That’s why we use stops.
Frank Curzio: But if you’re looking at the conditions of the market, where you’re looking at low interest rates and the biggest point here, guys, what you need to understand, what you need to understand is why that we’re selling Curzio Venture Opportunities at a dirt-cheap price. Because it’s one of the greatest opportunities I see to buy risky assets in a long time. Because when you’re looking at the Fed, they’re going to have to continue to spend trillions into the market, put trillions into the market, because the difference between Main Street, that gap to Main Street and Wall Street, Wall Street owning assets is going to continue to take off with low interest rates. But there’s still a lot of businesses that aren’t open and Main Street is struggling.
Frank Curzio: It puts the Fed in a position that they have to continue to fund these markets to fund these companies that aren’t doing that good. Provide more loans, keep interest rates low. And what’s going to happen when COVID goes away, which it will? It may take a year for people to feel more confident. People feel more confident going out now. What’s going to happen? Because now you have a market, it’s going to go back to normal pre-COVID levels, except you just injected seven trillion so far and trillions more are coming and it’s going to continue to come. What do you think is going to happen? You see the dollar come down, yield curve control come in, this way they make sure those rates are going to stay low for a while because that’s their biggest fear, that’s the biggest risk of rates rising with so much debt in the balance sheet.
Frank Curzio: Then you got the Fed, it’s a perfect environment right now for assets. That’s why you’re seeing them explode. I never thought I’d see conditions like this where markets are at all-time highs and the Fed is throwing trillions at it. Nobody would predict that, but they’re doing it. You can get pissed, I say this all the time, hold up a sign, do whatever you want, but you got to buy stocks and buy risky assets because they significantly have been underperforming the major indices, significantly, which never really happens when you see bull markets. Small caps significantly outperform on the way up and significantly underperform the way down. That’s way the markets are. This bull market that we’ve seen since March going all the way to highs, the NASDAQ still down on the year. The foreign technology stocks were about 30%. It’s a great, great, great, great opportunity to buy risky assets and that’s our CVO product we’re offering at one of the biggest discounts we ever did, which you could find that at Curzio Research, on our website.
Frank Curzio: Okay, guys, that’s it for me. Thanks so much. Thanks for Genia for coming on. If you want to find out more about Curzio Research, go to our page, curzioresearch.com. Also, we have a YouTube page where we’re doing live videos and posting them, a lot of fun. Getting lots of subscribers to sign up for that, which is really, really cool. And also, follow me on Twitter. I try to post three, four, five times a day, and a lot of my live videos are posted there as well. And you could do that by tweeting me, follow me @FrankCurzio. So guys, lots of ideas to digests. Thank you for being patient through my rant, but something that’s very, very personal and dear to me, New York City, which I love. And I just want to say thanks so much for listening. I really appreciate all your support, and I’ll see you guys in seven days. Take care.
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