Well to another little deep dive edition of our Chicks on the Right podcast with
our good friend and sponsor of the show, Zach Abraham, who is the
chief investment officer at Bulwart Capital Management, who knows all kinds of things about
how all of the politics and the things that are happening in the world affect
your pocket book, and so Zach, obviously, one of the worst things
that's happening in the country right now is the biggest fire that has taken out
the most land and the most cows ever in the history of fires in America.
And there's some speculation now some lawsuits are happening that relate to the cause
of the fire. But we were curious about whether or not you believe that
it's like a power line, you know, a power company issue, or
whether it was caused by Jewish space lasers. I mean, naturally, the
Jewish tically. I mean that that's where my mind first went, you know,
went right there. Yeah, and you remember Austin Powers. Yeah,
there's a lasers. Yeah, yeah, they're going to laser and the shark
lasers. So whenever you hear stuff like that going on, usually it's a
laser. And then now in the age of the you know, Israel now
being an occupying state, it's natural then to make the assumption if it's a
laser, it's got to be a Jewish laser. Totally, it's got to
be a Jewish las. Yeah, exactly. I'm glad clear that up.
Yeah. So so on that note, like, do you think since listen
because I live in Texas and I can see. I mean, it's devastating.
We're talking like what a million and a half acres the industry, the
catalystry, the beef industry is being affected by this. And when I see
that, listen, I'm a big beef eater myself. Same beef industry is
affected. AG is just overall is affected by this. I don't think people
are talking about this enough. And so what do you think the ramifications are
just from a financial perspective, because I feel like that the industry is obviously
going to take a hit, and then well, I mean, we'll stocks
take a hit, will the market take ahead? Like what do you what
do you see this looking like in the next couple of weeks, kept a
couple of months, in the next couple of years. Well, I think
there's kind of a I think there's a couple of different ways you can look
at it. It's really one of the reasons I love doing this job is
because to watch economic trends unfold and play out, it's it's really it's it's
fascinating to me. And the reason I bring that up is, prior to
COVID, when you looked at the world, all you saw were threats of
deflation, right like so meaning you saw access is building up here or there.
You saw economies that couldn't escape you couldn't couldn't achieve escape velocity. You
had issues in China going on with their real estate market, that everything,
and you just saw it was like you just kept seeing, you know,
deflationary pressure after deflationary pressure, and it's just amazing how everything get turned on
a dime. And where am I going with this? I'm going I think
the biggest impact is that you just add this on the list of inflationary pressures,
right and it's going to be through more expensive power right now. Some
of that will be transitory, some of it won't. And I'm like that
you're using that word, Zach. I don't like it because yelling Yellen uses
that word, you know, but that's the that's the way of it,
right. Some of it will stay, some of it won't. But it's
just amazing that all of these things keep chalking up to inflationary pressures. And
then and then the other fascinating part about it is when you flip over to
the market as you would expect in a bubble scenario, which I you know,
I believe we're very much in one. And because we're in a bubble
doesn't mean it's to burst tomorrow. But one of the features of a bubble
is that everybody ignores what they should be paying attention to, and they just
chase this. Right. I just got done doing an interview with a friend
of mine who also manages money, and we were just talking about how there's
so many commodities, and there's so many agricultural things, and there's so many
really basic simple investments out there that I think are going to mop the floor
with stuff like in video over the next five to seven years, right,
just just from evaluation play. Just the inflationary pressures that are building up,
they're not getting dealt with. And remember, one of the reasons they're not
getting dealt with is that's not what anybody wants to own, So all the
capital keeps flowing over here to these tech kind of names and all of these
commodities. Right, you know, like we were talking about this, you
know in video, everybody's all jacked up out in video. Do you know
the average chip that in video? So the average home in the United States
consumes like twenty eight to twenty nine gillawass killawatt or is a gigawatt killowatt hours
for whatever that function is that that that metric got a lot hours per day.
Okay, one single Nvidia chip uses a third of that of the average
American house. And that's just the processing power. That doesn't account for the
air conditioning, the power that's used to air condition and cool the data centers.
Right, So you're looking at each chip effectively adding up to somewhere between
thirty five to forty five percent of the average power consumption of a home.
Right now, all of this happening, Well, they're trying to get rid
of nat gas, right you're plugging in. So now we're plugging in these
these data centers left and right. We've literally had utility companies come out and
say, hey, guys, you got to quit building data centers and we're
not gonna have power for you in two years. Right, Oh my god,
I saw a big article about that today, right Yeah, And then
everybody's ignoring it because it's not sexy and it's not artificial intelligence. And like
I've said so many times, one of the toughest things about a bubble is
a yeah, people lose a lot of One of the things that's the most
pernicious, though, is people ignore or miss the simple home runs right in
front of their faces, right, Like commodity needs are gonna go up,
and they're you know, you could make an argument there probably has not been
a better time to buy them, and that's not what anybody wants. But
yeah, all I see is just inflationary pressure after inflationary pressure. You know
what else is not sexy? Eating bugs. I'm not doing it. I'm
not gonna do it. I'm not doing it. You guys, you might
be forced to though, because like, now, what if they put stuff
in your food? There's like all kinds of laws now that they're putting through
where they can they can make grocery stores put stuff in and you don't ever
know things are things are bored right now, get we're saying I know she's
like worked her word like orked. It's all born worked, yeah, worked
up. Yeah, I can say in front of the kids too, you
know, and feeling it's like the sweetest chef from the Muppets memory the flame
is yeah, borked exact, yeah, completely, And that's and I think
I think it's just a great word right now, because I think everything is
everything is borked. Everything literally not everything. I refuse to eat bugs,
you guys, I'm not doing it well. At least we have Zach to
like help us understand, you know. I like the way that you put
things and kind of bring some realism back to what's happening and make people start
thinking, well, maybe there's other things in the market that I should be
paying attention to it instead of just freaking Apple and Google or whatever. So
that's a that's a good spin on this. Yeah. And here and here's
here. Here's an anecdotal. Right, So we're we're off to a really
good start this year. We're I think we're up like eight or nine eight
percent or nine percent so far year to date, and we don't really own
any of that stuff. And that's what I'm trying to tell people guys,
is being conservative and managing your risk doesn't mean we don't have to make money.
It just means you're not buying stupid, borked stuff. Yes, yes,
I love that way. True, it's true. Okay, Well,
so then how can people hear more from you? Because you offer a lot
of really really good advice. So what's the best way for people to connect?
Yeah? Just I think probably just connect to the show that we do.
We do a show every single day called The Daily Dots, about fifteen
to twenty five minutes summarizing all the important financial and economic news has happened that
day, and then do a once a week's show. Obviously, we run
a firm where we actually manage money too, so Know Your Risk radio podcast
Bulwark Capital Management, we're on every podcast site. Got a really cool interview
coming up with a buddy of mine who is from Monaco. He's a money
manager in Monaco and really smart guy. I just got done recording that today.
That drops tomorrow, so awesome. This should be a good listener,
Very cool. Thank you. That Investment advisory services offered through Trek Financial LLC,
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