You know. The funny thing about that is they recently actually just launched a
at chatt and GPT like bought portfolio that buys twenty stocks. I think it's
twenty stocks and rebalances weekly and that it's it's it's holding a lot of technology
right now. I took a glance at it just to see. You know,
out of curiosity, you're listening to Carry Letts's Financial Survival Network, where
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your host, Terry lets Well. We just got the core CPI numbers out
and much as expected, PPI is next, FOMC is happening already. Today
is June thirteenth, twenty twenty three, and Friday is the quad which ing
hour were or basically four times a year, we have four major asset class
options expire on the same day. Eddie Gifford, you are with us now
to help make sense of an insane world to your CPI. So we should
be dancing in the streets. It came in. It's only point four percent,
so or inflation rate of a little more than five percent. It's great,
right, Well, you would think so the way the market's reacting.
You know, we saw this morning when they first headlined and the headline inflation
is actually only at point one month over month. So then when we take
out the energy and food, we're at point four month over a month,
which annualized is still four point eight percent, so super super far away from
that two percent target they keep telling us about. And I think what it
does is it kind of opens the window or at least a hawkish stance tomorrow
with the Fed, maybe even maybe even a bump, maybe even at quarter
point bump. You know, everyone wants Pow to kind of pump the brakes
and kind of you know, was play the weight and see game. But
if there's anything that he's been Claron over the last eighteen twenty four months,
it's that he wants to get inflation under control. And if we go back
to the seventies, we can remember that, you know, inflation seemed like
it was subsiding. They started to cut and then inflation just like ripped up,
and so I think that he doesn't want to make that mistake. But
you know, we'll see there. There seems to be a lot of pressure
also for a for a more debash stance, so you know, it doesn't
help it. It's a you know, pre election year, and then a
lot of stuff is going to happen over the next you know, fifteen months,
all right, So we're heading for stagflation. In other words, I
would say that stagflation is kind of the base case and probably the most worrisome
case. At the same time, we're in this scenario where growth is definitely
muted and lation looks like it's going to remain elevated. And so you know,
if we look at well, what does that mean for markets in general?
Generally speaking, if we're looking at the broad stock market, that means
we're probably going to be stuck in a range for a while. And I
think we're at the top of the range right now. So everyone might argue
that AI is going to save us all. But when AI doesn't come through
in six months like everyone's anticipating, I think that we're we're going to be
disappointed. And so you know, the flexibility and probably keeping your eye on
commodities is probably a good stance here. All right. Has anybody asked AI
what you should be doing here investment wise? What is Chat GPT latest investment
advice? You know? The funny thing about that is they recently actually just
launched at Chat and GPT like bought portfolio that buys twenty stocks. I think
it's twenty stocks and eleans is weekly and that it's it's it's holding a lot
of technology right now. I took a glance at it just to see,
you know, out of curiosity and and so you know, like it didn't
hold in video. I went in video blew up though, So it definitely
can't see the future. All right. So where do we find this AI
portfolio? Well, you know, there's there's different ways to find it.
The the AI portfolio that I'm referring to is uh, something that was that
CNBC was actually promoting through an app called Autopilot that you can kind of jump
on and see what it's doing. Um, you know, and I think
that there's gonna be a lot more of that. We're going to see a
lot of more like AI, at least influenced portfolios. I know that that
tactive. We're interviewing like different AI companies to say, hey, like,
is there some way that maybe we can add some type of AI derivatives too
a model portfolios. So if you're not at least exploring it, then you're
falling behind. Yeah, so you played around with it, you tested it
out. Oh, I at least like took a look. It lasted lasted
the week before I said, no, this is this isn't for me.
Uh, you know, I think that you know, it's important to have
inputs, and AI can serve as a great input, but you still need
someone to interpret those inputs. And your interpretation of those inputs is going to
be what's going to drive the success of the portfolio or not. Uh.
You know, mechanical works to an extent, but there's a lot of other
little things that can really mess up the portfolio. If you trade at the
wrong time, if you you know how you trade what you do, if
you're using limit orders versus market orders. So there's a lot of different things
that even though the signal might be right, the portfolio could be wrong because
you just didn't do it right. Ye. So so really, and you
did it at the wrong time, because that call might have been good for
ten seconds right alone, good for exactly and how many of us can just
sit right there and hit the button. And then even if we hit the
button, is it going to get filled compared to the supercomputers that we're up
against, And the answer is probably not. So, you know, you
to lean on good research inputs, have a strategy, make sure that you
have offit targets, make sure that you have stops in place, protect yourself
and just know that like the trend is up, it's it's okay to lean
in. And if it's not, there's nothing wrong with the with with an
account you know, invested in treasuries, it's earning five in a order right
now. Yeah, so you should take what you can get. Yeah,
I think that, you know, like, especially right now, we're definitely
uh seems like we're a little bit extended. We're near the top of a
range. If stagflation does hold true that you know, this range could be
you know, this could be like the upper limit for the next ten twelve
years. Now. Obviously, if it breaks through and runs, that's why
you have profit targets, and then that's why you have stops. If it
rolls over and things go back down. You know, you get out and
you wait for another buying opportunity. So discipline is what drives success, you
know, like in any investment strategy. And then you know, your ability
to stick to your strategy regardless of what's going on. I think that that's
the thing a lot of investors have a lot of trouble is you know,
oh, this one's not working for the last you know, six months,
so we need to abandoned it, right, And the picture is much bigger
than six months, and we need to remember that, especially when we're being
when we're risk managing, right, because at the end of the day,
we're just trying to offer a superior risk adjusted return. And what that means
is is sometimes you know what, we're gonna be wrong. Yeah, but
that's okay, all right. So I mean, should you be in the
market at this point? It's always said that stocks climb on a wool of
worry, right, Yeah. I don't think there's any issue with being in
the market. I think it's just having an investment strategy with an exit strategy,
whether it's on the upside or the downside. You you know, like
making sure that you have a plan that you're following the now. I wouldn't.
I wouldn't necessarily say say, oh my gosh, like we should go
all in right now in the specific sector or anything. But I think,
you know, volatility is around the corner. I think it's been uted for
a while now. Next year is an election year, so there's they're playing
the dollar cost averaging game. When you're sitting in cash or sitting in treasuries
at five to five and quarter or five and a half to build a position
over the next twelve eighteen months isn't a bad thing. And if you're going
all in, make sure you have an exit plan. All right? I
like that? All right, Eddie, it's always great having you on.
So tell us where do we find you? How do we connect with you
on the web? Yeah, the Indian Staying got to tactive wealth dot com
slash Eddie Gifford. You know, you could also just google Eddie Gifford and
I'll be right there at the top of the list. And you know,
we're excited to talk to anybody who's looking for a differing opinion of what you
can do with your money out there. All right, Well, we need
that. That's for sure, Hey, you've got a question for Eddie myself.
K l at Kerryluts dot com is the email. Make sure you go
over to the site Financial Survival Network dot com and sign up for a free
newsletter and you can click right through to Eddie's Eddie, We'll be talking to
you again next month and see what they've got in store for us. Then,
so's we got to appreciate Carry. You have a good one. Thanks
for listening to Carry Lenz's Financial Survival Network your solution to today's trying times.
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