Speaker 1: We almost have to consider this as a sugar high.
Speaker 2: We are.
Speaker 1: We are on a sugar high, and the Fed just
gave us another pixie stick. It's kind of concerning if
you ask me, I've got two young boys on my own,
and anytime they ask for sugar, I know that there's
going to be this high activity period of time and
then the crash comes. And my fear is when does
the crash come? And how bad of a crash.
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Speaker 2: You are listening to and watching the Financial Survival Network.
I'm your host, Carry Letz. Hey, so we got our
fifty point basis cut. Most of the so called experts
were expecting twenty five basis points. So far, the markets
are reacting favorably. You wonder if they're reacting to the
election or to the center, to both. But we got
a guest here who's going to explain it all to you,
and well, hey, what can you say? Dalla Smothers is
with us now, President founder of RDS well Dale. It's
great to have you on the show. We first time guessed.
So yes, hey, how bad is the economy? B? Does
fifty basis points make any difference? And C does the
election matter at this point?
Speaker 1: Sure? So let's take it in order. Then let's go A.
How bad is the economy? You know, cutting straight to
the chase. I think a fifty basis point cut at
this point in the game is is a telltale sign
that they see something that's not in the publicly disclosed numbers.
You know, when you look at the jobless claims that
just came out this morning and you see that our
jobless claims aren't actually as bad as what you would expect.
After a fifty basis points cut, you've got to wonder
what the world are they seeing? You know, not to
say that they're wrong, it's just what are they seeing
that would that would negate this type of jobless claim
that we're seeing. I mean that the jobless claim is
trending in the right direction, and we still come out
with a fifty basis point cut for b on the
fifty basis point cut? Does it really affect the market?
You know, I think that the market's going to react
favorably to this, as you already see happening today. My
problem that I have with this is that we almost
have to consider this as a sugar high.
Speaker 2: We are.
Speaker 1: We are on a sugar high, and the Fed just
gave us another pixie stick. It's kind of concerned if
you ask me. I've got two young boys on my own,
and anytime they ask for sugar, I know that there's
going to be this high activity period of time and
then the crash comes. And my view is when does
the crash come and how bad of a crash is it?
And then for se does the election matter? I think
the election certainly has consequences, as every election does. We've
got the potential for a long term capital gain or
short term capital gain being taxed even without realizing it.
That could impact a ton of investors and in my opinion,
could make a lot of money flow out of the
capital markets that we currently see. A lot of policy
that is on the table right now is going to
impact the market, and we can unpack that as you
wish or in my opinion. I think again, either of
the sides that are going to be running are going
to be giving us more pixie sticks along the way.
So we're talking to our clients right now, Harry in
a and a notion of Hey, in the next ten
to fifteen years, we just got to make sure that
we're weathering this storm no matter what it becomes or
how bad it becomes. We've got to have assets in
places that perform in good markets and in bad.
Speaker 2: Yeah. So we talk in precious metals, we talk in cryptos,
and talking consumer stocks.
Speaker 1: And I love that you pitch that I like the
consumer stocks. I like those tried and true method stocks
that have been around for a long time and paying
very good dividends. And I'm a big fan right now
of stocks that have been hit pretty big, like say
a dollar general recessionary style stock that you know, if
the markets are bad or there is a recession, it's
a really good place to buy some things for a
lot of the Americans that are suffering the most. And
it was if I'm not mistaken, I think it's down.
I didn't prepare for this part, but I think it's
down sixty plus percent from its highs and there's really
no reason for it to be. Dollars is a good
place if you're in this area of the country. They're
popping up everywhere you turn. There seems to be a
dollar General being built, and you know, I think something
like that would be a good place. So consumers are
definitely consumer. Consumer sector is a great place to invest.
I like precious metals. I've not yet gotten on the
vandwagon of buying a bunch of gold, but having gold
is a great hedge. We also talk about diversification of
types of products that investors invest in, and there are
ways to safeguard against downturn markets with some insurance based products.
I also like options on some of these stocks that
we believe to be good for long term trading, perhaps
maybe generating some income from covered calls, those types of
things that we don't have to be as dependent upon
the market movement itself if we're getting the income we desire.
Speaker 2: Okay, anything any feelings about bitcoin?
Speaker 1: Yeah, so I know that you're a big fan of bitcoin.
I'll be honest. The way we talk to our client
it's about bitcoin is I think it's a great place
to put some money that you're okay, letting dance around.
I don't feel yet that we have a lot of
adoption of bitcoin, like we need to see if I'm
not mistaken. I caught on the news the other day
it was Donald Trump that was at a bar and
bought his first a bar in New York City. It's amazing,
and you know, type that type of momentum is only
going to make bitcoin or crypto currency more and more
in favor. I'm not yet ready to say that bitcoin
is something we shouldn't pay attention to by any means.
I think that we've woken up now that crypto is
potentially a currency of the future. But I'm still in
the camp of crypto is a asset class, not so
much a currency. So if you want to trade crypto
to make some money with capital gains, certainly that that's
somewhere you could put some money to say, it's a
hedge against the oncoming storm that I see happening, or
the the sugar crash. Going back to my analogy, I'm
just not there yet, and the reason probably carries the
clients we deal with. We don't want a lot of
volatility in their positions. If we're taking income throughout their
retirement years.
Speaker 2: But it is a non correlated asset and right now
as we're talking, it's right around sixty four thousand. Yeah, bang,
I buy a little bit every week. Honestly, what oh buy?
Because average up, average down, and actually, you know, yeah.
Speaker 1: Dollar cost averaging into an asset like that is a
perfect way to average out your cost if you are
interested in bitcoin and to carry I know you are
a fan of it. I watched the show. I know
that this is something that you enjoy even discussing. It's
just more or less coming from my perspective. With retirees,
our goal is to minimize the volatility, and something like bitcoin,
perhaps in the ETF four fits the bill for that,
but directly buying a bitcoin on a coin exchange is
not something that we've gotten into at this point.
Speaker 2: Yeah, well you got your twenty something ETFs that all
have bitcoin now, sure, so that makes it a little
bit more investible for you, doesn't it.
Speaker 1: And it's exactly right, And to my point, that becomes
a momentum shifter where now things are beginning to be
more in favor of bitcoin being adopted as an actual currency.
And this is this is all good for those bitcoin investors,
my guess.
Speaker 2: Is you know, seventy five thousand has been a resistance
point for bitcoin. If I look at the chart, I
think it was seventy three thousand it hit. I'm not mistaken,
Peace can't remember now, oh man senior moment here you're okay, yeah,
well that's for today. So we look at the one
year because it was just recent league and seventy one thousand,
four hundred and ninety one dollars that was the peak,
and hey, looking at it now, sixty three thousand, it's
been trading in a sideways channel with not lower lows,
but lower highs for sure. So it's been in a
kind of a bull pendant, a bear pendant, I guess.
But but you know, I got to see it break
out at sixty nine thousand. That's my breakout point. Then
it's going to make new highs.
Speaker 1: And you know that is that is trading one oh one.
If it hits through that resistance, we are likely to
see that one hundred thousand dollars number that's been prophesied
for the last four or five or even six years.
I remember I remember bitcoin coming onto the scene and
being able to snatch it up at a very low price,
and I passed on it, and you know, down a
little bit more inclined to say, Okay, this is something
that we might want to buy at the next dip,
but again at the moment, not something we're purchasing for
clients just yet.
Speaker 2: It's pretty easy to purchase and the hey I'm up nicely.
I mean, you know, bitcoin over the past year, it's
up thirty six thousand, five hundred dollars, so it was
at twenty seven and change. So that's a nice little
return there. So you have to curious, how do you how.
Speaker 1: Do you purchase bitcoin yourself or is that something that
you go to the exchanged direct I.
Speaker 2: Do it at the exchange, even though honestly it's cheaper
to do it in ETF at this point. Sure, but
I just kind of like having the wallet there.
Speaker 1: So all right, and I am curious too to this point,
we'll pull up here for just another second. Do you
see any divergence from ETF pricing and the actual bitcoin,
the underlying bitcoin in itself.
Speaker 2: Not yet, not major divergences, but I think that's in
the offing. And that'll because they're you know, san bankman
Free showed you can arbitrage crypto. Yeah, He's the first
one and really made it popular. So you know, the
divergences will not be big enough for individual traders to
be able to take advantage of it. You really need
a trading bought system to do that. You can't. You know,
they're so quick now because there are hundreds of different
traders and crypto looking for that little little divergence between
the ETF so they can sell one and buy the other,
right arbitrage? Yeah, but you know too much for me.
I'm just a hobby trader. Yeah, but you know it's
making money, then it's a good hobby, right, Why not? Yeah?
Speaker 1: You so you would be considered more of the long term.
Do you do do a lot of trading in and out?
Are you long term?
Speaker 2: I was swing trading it, but then when I saw
it broke certain points that it was setting higher, I
just held on for the ride. But you know it's
at sixty three thousand today, Dale, it could be at
fifty three thousand tonight. I know this is true, and
it wouldn't surprise me because now that there's ETFs and
there's options and futures, it's so easy to manipulate, and
there's no law against manipulating cryptocurrency, so everybody loves.
Speaker 1: It right, right, So just like you part of the appeal.
Speaker 2: It's just like you can't be charged for manipulating commodities,
you can't be charged for manipula manipulating cryptos, but you
can be charged for manipulating options on stocks, right. Does
that make any sense? Well, you know the rules we
work with.
Speaker 1: I guess is the big appeal, in my opinion, is
the it's the wild wild West, the idea that there
is no real regulation against the bitcoin marketing. But the
more and more it becomes a asset that's traded, I
think we see regulations start to creep in.
Speaker 2: Oh they have it, dude, Yeah, and then they got
to because but the other thing is that it's international, transnational.
There's no borders, there's no nothing, and the central banks
out of the picture. The exchanges are really in your imagination,
they don't really exist. Sure, I mean they're there, they're
just a website. So I'm not sure about it. But
looking ahead here, when we have this conversation in a year, dale,
what's going to be the economic landscape here? Man? Assuming
that political situation is neutral at best.
Speaker 1: Sure, yeah, so I think that any uncertainty for the
market is a bad thing. And so you know, just
the fact that we get the election behind us, I
think it's going to give us a little bit of
a trend in the right direction for the market. Again,
my fear is that we are on the sugar high
and that when we start to see the reason why
rates are being cut, we could see inflation re emerge.
Re emerging of re immersion of the inflation is going
to certainly be a halting factor for the market, especially
if the Fed has to react again to inflation. In
the hills of Kentucky and you know, the Appalachian Mountain
region here in Tennessee where I serve, we have wildfires
from time to time that spark just out of nowhere,
just a little bit of spark ignites a massive wildfire.
And you know one recently just almost burned down a
city that is that is widely known, Gatlinburg, Tennessee. Oh sure,
And in my opinion, I think what we see is
inflation was raging and all of a sudden, our firefighters
have put it out to say, ninety percent completely done smoldering.
But it's smoldering, You're exactly right, and it's still smoldering,
and all of our firefighters are headed home. And now
they the FED has decided that they are on the
other end of their dual mandate to worry about unemployment,
and unemployment doesn't seem to be a major factor right
this minute, so I'm curious what's going on in their head.
And then we've got a potential strike with the port workers,
and if that takes place, that could put a major
strain on supply, and ultimately it's an economics problem from there.
I don't care if you're a Knesian or a Freedman.
You have to understand that less supply, more money equals inflation,
and if inflation becomes another factor, we could see the
market begin to melt down in the face of potentially
higher interest rates.
Speaker 2: Once again, all right, We're gonna leave it at that,
uh Dale, Just tell us how we connect with you?
Where we find you on the web? Yes, sir, so again.
Speaker 1: You can go to our website Rdswealth dot com RDS
wealth dot Com. Log in there get in touch with
our team. You could call our office two seven zero
six hundred plan two seven zero six zero zero seven
five two six if you'd like to sign up for
our newsletter. Jump to our website again rdswealth dot com
and push subscribe at the top right for our newsletter.
Speaker 2: All right, Hey, appreciate you coming on, Yes, sir, and
if you've got a question for Dale or myself, shoot
me an email kl at Terry Leeds dot com. You'll
find the link to dale site in the show. That's
this interview on Financial Survival Network dot com. While you there,
please join the thirty five thousand other people who have
signed up in our subscribers to our newsletter. And Dell,
we appreciate you coming. Sugar highs are okay, but then
they're followed by crashes and your blood and then you're
like half passed out, you need a nap, and then
you're thinking, hey, maybe this wasn't worth it. I think
that's where we're going to be as well. We'll talk
to you again soon. Dale, thanks so much.
Speaker 1: Asah, thank you Ker.
Speaker 3: Thanks for listening to carry lets this Financial Survival Network
your solution to today's trying times. For the latest, go
to Financial Survivalnetwork dot com. Financial Survival Network now more
than ever