Speaker 1: You know understand if you're chasing a lot of these
meme type stocks. Yeah, eventually the fundamentals are going to matter,
which is one of the big reasons we tell people,
you know, always behedged.
Speaker 2: You're listening to Carrie Leutz's Financial Survival Network, where you
get valuable information. You just can't find anywhere else to
thrive in today's trying times. You need the Financial Survival
Network now more than ever. Go to Financial Survivalnetwork dot
com and get your free newsletter and gift. Financial Survival
Network now more than ever.
Speaker 3: And welcome you are listening to and watching the Financial
Survival Network. I'm your host, Carrie Letz and today got
a special triet for you. You're always telling me we
don't want mainstream thinkers. You don't want to hear the
Kramer types out there hawking the latest shiny object that
Wall Street is so fond of, and in fact it's
their business model. Well, I'm delivering through for you today
in spades. The website you want to go to is
tuttlecap dot com. T U t t l e c
ap dot com. Matthew Tuttle is with us now, Matthew,
nobody could ever accuse you of being a traditional Wall
Street thinker.
Speaker 4: Could they?
Speaker 1: They definitely could not.
Speaker 3: So obviously you have a different take on things. Obviously
the biggies.
Speaker 4: Out there aren't going to hire you.
Speaker 3: How did you become a contrarian? Was this from a
young age?
Speaker 1: It was from a fairly young age, you know. I
first kind of became a contrarian reading this Jack Schwager's
Mark of Wizard's Books. I read him in the nineties.
They were fascinating. At the same time, I had a
professor in my MBA class teaching modern portfolio theory who
took me aside and said, yeah, you know what, none
of this stuff works, but they make me teach it.
Then I went on, that's a little cynical.
Speaker 4: Ended it was.
Speaker 1: Then I went on to work on Wall Street. You know,
I was there during the Internet bubble and what passed
for advice was horrifying. So that was kind of the
last straw for me. Went out for my own company
and never looked back.
Speaker 3: So Matthew like, it's over one hundred years since Benjamin Graham.
I think it's close to one hundred years since he
wrote what did you write? Securities Analysis? Intelligent Investor? And
all that. He didn't he wasn't that wealthy when he
passed on, but he did give a logical framework of
how you analyze securities figure out what they're worth. Does
any of that apply anymore?
Speaker 1: Yes and no. You know, I I started investing in
the early eighties. I grew up with Fidelity, Peter Lynch's
from my hometown. And you know, back then, fundamental analysis
was was what you did. And if you were you know,
a hard worker and you were smart, you know you're
going to find undervalued companies that people weren't find it. Today,
we've all got the Internet, we've got Boomberg, we've got Ai,
and we've got what I call the retail revolution that
came out of COVID, where retail investors wield more power
than they ever have before, not only as a group,
but also now you've got a lot of the you know,
the hedge funds, the quote unquote smart money who are
following what retail investors do. So every once in a while,
valuations matter. You've just got to be cognizant that this
is a different market. And I don't think we're going back.
Speaker 3: And once upon a time you didn't have branding patents.
Intellectual property really wasn't worth a whole heck of a
lot of intangible values. It was really hard to judge
them and to make valuation judgments on them, unlike today.
Speaker 1: Right, well, yeah, I mean, you know, everything is different today.
The technology that we've got to be able to do things,
you know, it enlightening speed. You know, it's it's change everything.
The one thing that will never change as human emotion,
you know that that's the one constant. But you know,
beyond that, things change. But you know, understand if you're
chasing a lot of these meme type stocks, yeah, eventually
the fundamentals are going to matter, which is one of
the big reasons we tell people, you know, always be hedged.
Speaker 3: Okay, so always be hedged. And what does that mean exactly?
Speaker 1: So I'll tell you what it doesn't mean to me.
Bonds are not a hedge. Gold is not a hedge.
Bitcoin certainly is not a hedge. Cash is not a hedge,
even though cash helps somewhat. What we kind of try
to teach people are ways to use options, you know,
in more advanced ways. I mean, at a minimum, could
you buy some you know, s and p five hundred
puts or you know a put spread. Yeah, you know
that's going to cost you. You know, we've got an
ETF coming out probably in about ninety days. The ticker
symbol is oh oh and it's a no bleed tail
risk ETF. There are ways to use options to set
things up so that you've got puts on the market,
but you've got ways to pay for some or all
of those puts so they don't become a massive portfolio drag.
And you know that that's the type of stuff we
try to teach people. It gets pretty complicated, but in
a minimum just you know, have some s and P
five hundred puts or some NASDAC puts or you know
a put spread.
Speaker 3: Okay, So complicated trading strategies, how do they perform over time?
Speaker 4: It depends.
Speaker 1: Complicated trading strategies in the hands of people who don't
know what they're doing perform awfully. Complicated trading strategies When
you know what you're doing and know how to look
at it and know how to structure it, I think
that works fine. What you don't want to do is
base things off of past performance. You know, be careful
with trend following. You know a lot of people. You know,
for a lot of people, trend following is a hedge
that hasn't worked, and that you know, that's had the
opposite effect, that's getting you out right when you want
to get in and getting you in right when you
want to get out. So but you know, to me,
a complicated strategy in the hands of someone who knows
what they're doing not a problem.
Speaker 3: M all right, And uh, what do you think the
biggest risk today in the market?
Speaker 4: Is Is it the fact? Yeah?
Speaker 3: Is it the fact that the markets are at record
levels and they're due for a pullback? Or like you said,
emotions never changed. People are always emotional and they're always
going to be making emotionally based decisions.
Speaker 1: So those things are definitely there. I think the thing
that would worry me the most is if all of
this AI spend is smoking mirrors. You know, we know
AI is going to change the future. I mean I
use it extensively in my practice. It has replaced the
need for certain people and it will replace the need
for certain things. But what we don't know is how
that AI gets monetized. And you know, when do we
see a return on all that spend? You've got the
circular financing deals. Do those blow up? You've got what's
happening in private credit due to all of this. So
that's the type of thing like you know, Mark's go
up too far and they snap back, you know, five
ten percent. Again, if you're hedged, not a big deal.
If you're investing smartly, yeah that stinks, but again not
a big deal. What you need to worry about are
those systematic things like COVID like two thousand and eight,
black swans those what's that black swans? The black swans,
And if this whole AI thing unravels, then you have
a black swan. So that would be the thing that
would keep me up at night.
Speaker 4: M hmm. So here's a question for you.
Speaker 3: So AI, you know, trillions of dollars are heading into it,
we all use it to maybe you and I are
a little ahead of the loop as opposed to others,
but I don't think there's any question. Uh, it's effects
upon society, the workplace, everything you do, it's going to
be be astounding. But like you said, monetization. The only
one who's actually monetizing it effectively maybe is Tesla.
Speaker 4: And Xai.
Speaker 3: But even there, like Xai, you're not going to get
back trillions of dollars charging forty bucks or even two
hundred bucks a month, are you no?
Speaker 1: I mean I paid two hundred bucks a month for
chet GBT. I think I pay forty bucks a month
for the advanced rock, you know? Yeah, I mean what
can your valuation be there? You know, I think the
real winners could end up being the old economy companies
that are utilizing it. But again, how much are they
going to win? You know, should a Walmart be trading
it fifty times earnings because they're using AI to increase profitability?
Speaker 3: You know?
Speaker 1: Probably not? You know, so, yeah, we know it's going
to change the future, but does it justify you know,
does it justify a utility company trading at forty times earnings?
You could certainly make an argument that it doesn't mm hmm.
Speaker 3: But new businesses can be formed, a whole new ways
of doing things, supply chains, manufacturing, you name it. I mean,
I think it's obvious a number of our larger companies
in the country are already being run by AI. Alphabet, Google, Tesla,
obviously Microsoft almost certainly, maybe not being one hundred percent
run by it, but certainly AI is the driving force
and all these companies. So does it just make existing
companies more efficient, more profitable, or does it open up
opportunities in the marketplace that we haven't even conceived of yet.
Speaker 1: It's both. So there's certainly some company is it's going
to make more profitable. There are other companies that it's
going to put out of business. There are going to
be opportunities new areas. Like we saw, you know, no
one was really thinking about memory and all of a sudden,
you know, memory is a bottleneck. Now memory is expensive,
and the sand discs of the world have you know,
quadrupled or even more than that. You know, if you
had asked me what you know, if no one was
talking about photonics a year ago, Now now that's a thing.
So it's going to create opportunities there. It's also going
to create opportunities when you throw the baby out with
the bathwater, like what happened with software. All software sold off.
But I would argue there are certain areas of software
that will actually benefit from AI, and we were scooping
those up in our you know, Mimi ETF which is
our most say symmetrical idea is versus some other areas
of software that yeah, I mean, they probably deserve to
get you know, taken out and crushed because AI is
going to put them out of business at some point.
Speaker 4: Yeah.
Speaker 3: So yeah, interesting times ahead, that's for sure. So what
new products do you have in the pipeline to help
us wind our way through the AI minefield?
Speaker 1: So what I'm going to be laser focused on is
what are the themes that you should be in, try
to get you in early and you know, and launch
gtfs around that. And we've done that before. I did
the inverse r E ETF at the top of the market.
We did e WAD, which is europe European Aerospace and
Defense right after Trump got elected because we knew that,
you know, Trump won was going to be a lot
like Trump too as far as NATO goes. What we
just did is wed UFO D. It's called the UFO
Disclosure ETF, which Trump and Obama were nice enough to
help help give us a little bit of a boost,
you know, the past couple of days. So you know,
neither of them are on my payroll, even though some
people have asked, you know, but that's more based off
of something we call the secret gap, where the government
always has stuff that we haven't seen. They developed the Internet, GPS,
self driving, you know, a whole bunch of other things
years before we saw it. And that's based off of
the possibility that they've got you know, advanced energy and
propulsion technology. Another thing we're working on is European digital sovereignty.
So a lot like our European Aerospace and Defense idea,
where we realize the European countries we're gonna have to
deal with their own defense. They want to deal with
their own digital sovereignty. They don't want to rely on
us companies, so we're working on that. Chinese robotics is
something that we're really interested in. We've got a project
we're working on, you know, potentially in India, and we're
continuing to try to innovate. So, you know, in the
ETF field, covered call ETFs have become very popular. I
hate them because they're not asymmetrical. You're giving up upside
and you've got unlimited downside. We've got an idea there
we're coming out with. It has embedded hedges the way
we talk about where the puts are paid for and
have a way not to limit your upside. So and
you know, and I've got my kil risk product. So
those are some of the things I'm most excited about.
Speaker 3: All right, Well, it seems like you're certainly ahead of
the wave, Matthew. What's the best place to track you
down on the web, connect with you, find out more
about what you're doing.
Speaker 4: Yeah.
Speaker 1: So, our website, like you said before, is tuttlecap dot com.
We have a free daily newsletter. I write about a
lot of these themes, stocks, I'm watching all sorts of stuff.
It is long, but you know it's free. Feel free
to sign up for that. We do a lot of webinars.
You'll get information on that. I also try to be
active on Twitter. That's at Tuttle Capital. I don't have
a lot of time, but when I do, I try
to be active there.
Speaker 4: Right.
Speaker 3: All right, Hey, we really appreciate you coming on, and
thanks again for your patience. Got any questions from Matthew myself,
shoot me an email klatcarrieluts dot com and really do
appreciate you coming on.
Speaker 4: We will talk to you again soon. Thanks so much, Matthew.
Speaker 2: Thank you, thanks for listening to Carrie Letz's Financial Survival Network,
your solution to today's trying times. For the latest, go
to financial Survival Network dot com Financial Survival Network now
more than ever,