Speaker 1: And ask the question where where do the nobody come from?
Who's buying? You know, back at Acrail it turned out
it was foreign investors. There was Asian retail sovereign wealth funds,
hedge funds outside of the US, because I think they've
seen the story before and they started that whole rally.
And then what happened is FOMO then kicks in. If
you're missing out and the idea that you know, well,
what's the worst that can happen here? And if you
look back to the financial crisis, you know the worst
can happen is you lose your house, you lose you know,
your money and all that, which is pretty damn bad.
Look back to twenty twenty. What should you've lost? You
lost your money and your life.
Speaker 2: You were listening to Carrie Letz'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
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Survival Network now more than ever.
Speaker 3: And well, thank you are listening to and watching the
Financial Survival Network. I'm your host Carrie Lutz. Hey, we've
gotten close to the middle of June. We got trade
deals going on right and left. We got the markets
trading getting closer and closer to record levels. And well,
we like when we get to this point in time
to talk with Andrew Horowitz, disciplined investor.
Speaker 1: Andrew, it's great to have you back on the show. Hey, Carrie,
how are you? Thanks?
Speaker 3: Okay, okay. We're enjoying this nice warm Florida weather here
hot and while Florida is heating up, so are the markets?
Aren't there?
Speaker 1: Yeah, things are, Things are resilient. There's definitely been a
significant bid to markets generally speaking, and any kind of
good news really kicks things off. Some of the positions
we have, for example in the last few days, and
more speculative to a degree, like our SMSMR is a
small module reactor stocks nuclear or as I call it,
new clear energy, not nuclear, new clear energy, So everybody
could wrap their head around something different that sounds good,
versus thinking about the China syndrome with Jack Lemon back
in the seventies. You know, is breaking out. I mean,
we're we're talking in the last four months, five months
that we've owned these things, you know, one hundred and
seventy to two returns.
Speaker 3: Already amazing, amazing. Yeah, I have a friend who worked
for a large contractor. He's retired, but because he knows
all about the nukes, that can't let him go, so
they pay him a fortune to be a consultant. It's
kind of funny. And yeah, he's big on those, on
those modulars. He's working on them behind the scenes, and
he's convinced it's the future. But unfortunately, what he told
me is it's not quite as simple as you say, oh,
let's just put one. Ain't over here or over there.
It's not really that simple, but it is a big
advance from where it used to be.
Speaker 1: Yeah, the words small is really not the best use
of that, because the smallest relative to the big, Right,
it's not these things that you could just carry around
on your back all at one day. Maybe we'll get.
Speaker 3: There, yeah, suitcase suitcase power plants. You know, we're kind
of come from nuclear subs and nuclear powered aircraft carriers.
Those are small, modular and they're they're portable by nature.
So so so we thought it was all over in April,
and here we are. You know, we were supposed to
sell and go away in May, and we're still buying.
Speaker 1: I mean, it looks like the big something happens. I
think something happens from a psychological standpoint, when we have
these events. You look back in history and you see
when you've ever had these more recent history, probably back
since two thousand and eight, where you look at these
big drawdowns on the markets where you have eight, ten, fifteen,
twenty percent move and then it happens is abrough ut
it happens, you know, for a reason potentially, and then
all of a sudden it starts to turn the corner
pretty fast. We had another v recovery again after this
big shock. But what's interesting is that the bids keep coming.
Look back to April and we did some of the
forensics on this, and you can find that and ask
the question, where where do nobody come from? Who's buying?
You know, back at April it turned out it was
foreign investors. There was Asian retail sovereign wealth funds, hedge
funds outside of the US, because I think they've seen
the story before and they started that whole rally. And
then what happened is FOMO then kicks in. I f
you're missing out. And the idea that you know, well,
what's the worst that can happen here? And if you
look back to the financial crisis, you know the worst
can happen. You lose your house, you lose you know,
your money and all that, which is pretty damn bad.
You look back to twenty twenty what should you've lost?
You lost your money and your life. You look back
to twenty twenty five, but what could you've lost a
couple of bucks? There's no You're not losing your house.
You're not losing your house, You're not losing your life.
So big deal, right, you found what I'm saying.
Speaker 3: It's only money.
Speaker 1: It's only money. And and and with the current idea
that we've seen this movie before, the Fed will step in,
the government will step in. You know, Trump comes in
and say his bystocks. He said it a few times,
but you know, and then all you know, things are
starting to pick up. And then miraculously we get all
these deals that are done or pauses on the tariffs.
You know, the terriffs went into place they're supposed to
go into place of last minute was okay, we'll lift
them up. Everybody freaked out. So that the bark is
much worse than the bite. And we've discovered this. Whether
you want to call it the taco trade, which I'm
not a big fan of saying, or whether you say
that this administration is trying to negotiate and put the
pressures on, but really is not going to have the
teeth to bite into this situation because they know that
the ramifications are a bond market that could sell off,
a dollar that can sell off, and the stock market
that could sell off of trillions of dollars or at
risk here over what eighty one hundred billion dollars a month?
You're gonna go for multiple trillions of dollars when you
can have you know, eighty billion or one hundred billion
maybe making in tariffs and maybe four hundred billion a year.
It makes no sense. This makes no sense.
Speaker 3: Yeah, yeah, well, risk reward, right, risk reward. You always
got to be looking at that with your investing in anything.
So what sectors are you particularly upbeat about.
Speaker 1: Let's start with the downbeat right now. There's a lot
of concern over retail. You know, you've seen a big
disparity in numbers, so Lulu Lemon, you so just get
absolutely a viscerated recently on their outlook, saying that they're
you know, the dynamic geopolitic geopolitics. That was the words
they used in their conference call. Actually was something that
really spooked people. And then you see the other side,
you know, like david Buster is actually doing okay, and
that's interesting for a place that you just throw your
money away essentially, right, So so people are not buying Yeah, right,
you throw away your money at playing ski bowl at
david Busters, but you're not buying yourself a pair of
workout pants, you know, Walmart, Costco. You're concerned about the
uh A consumer, but yet things are okay. You know,
whether or not they're gonna have to eat some of
the taraffs or raise prices. But the consumer, again is
resilient and depending on who you are. I mean, I was.
I can tell you I was in the Bahamas last weekend.
We were at a little private club, beach bar because
we were vited. It was a long story, and the
prices were absurd, absurd. Yeah, I'll tell you absurd, absurd
to a point that like, oh my god, absurd. Literally
Now I brought a bunch of people there, so just
you have to wait for the whole story here, because
it's I'm not as nuts as I'm about to think.
Speaker 3: I am.
Speaker 1: I got a hamburger and a drink and it was one
hundred dollars. Yeah, Now it sounds like the Bahamas that
I said, it's never It's not that bad in the Bahamas.
It's not that that's ridiculous. And I said, look, I
brought all these people to this private club to them
check it out. So they comped it. They camped. I
wasn't buying that sixty five dollars burger without being caught up.
Speaker 3: How's it go away? Usually they do not have good
burgers in the Bahamas.
Speaker 1: It was it was they brought everything in from Miami.
Everything's brought into that one little beach club. It's called
the Benita Beach Club in Bivinie's brand new five million
dollars in up houses, private beach club, private cabanas. They
asked me to come because I brought up thirty boats
over to Bimini on a trip that we went to.
So we got entrede to this place and spent a
whole lot of money. But my point though, is that
there are people still spending Now that's just my crowd
or anything like that. That's not what I'm saying. It's
people are spending money. Depending on where you are, there's
pockets that are problematic. People don't need maybe another pair
of Lululemon pants. They just don't need them, so they're
not buying them, but they are doing other things. They
are going to finally back to the dollar general, et cetera. Okay,
so put that aside. You know, you got some things
that are good, some things that are bed, some restaurants
that are having good times, some that are bad, you know,
and big v recoveries. You know, look at a company
that's looking today at Wingstop. W Ing is a symbol
total almost a double since April because why well we
got you know, we're not worried so worried about chicken
bird flu. All that's been resolved. Right, There was a
big problem with the eggs that happened to do with
bird flu and colleague of the chickens, which by the way,
have wings, which Wingstop needs to serve their particular brand. Right,
so that that's been resolved, some of these things that
have been playing out. The inflation numbers that we saw
this week are a little bit better that should help
the banks a little bit. And we see the yield
curve in pretty good shape right now. The employment numbers
in pretty good shape. Technology clearly some areas we like
to some of the defense firms that are continuing on
some of the commods in certain areas, healthcare questionable. We
think that Rfkjuni is going to continue this stampede. Just
fired the whole vaccination panel. I saw that just this
just this week. But yet, you know, we're looking at
companies that are like that have seen a big sell
off when he first came in, like a Crisper, which
is a company that makes Crisper is a kind of
process for gene splicing and genetic engineering, if you will,
hoping to solve a lot of problems. They have a
couple of products out there ready that are helping. But
you got a few in that very select few in
that area, and people really worried about that under RFK Junior.
But it seems he's not really hitting that in the
stock seems to be a little bit more resilient lately.
Some of the names in like a CROs that I like,
which just bought a company called Generak, which it is
I have this is that you probably bought it right
before a hurricane season or right after either one.
Speaker 3: Yeah, I bought it when I moved into this place
in twenty twenty one, and there was a backlog of
the things, and finally I got it a six month backlog.
Speaker 1: We like it this time of year. The seasonality trends
that show that Generak is actually a great stock. It
has been. If you look at the analogue going back
and the pattern which I know you're a big, big
fan of, going back many many years that starting about
Judish mid June, when you start getting the idea and
people say, oh, it's hurricane season again, and storm season again.
It's it's a rainy season again. It's flood season again,
tornadoes blah blah blah blah blah, right, all this stuff, Well, oh,
Generator Company is the only pure play generator company really
out there. And all you want is as horrible as
it sounds. They sound like a roofer Okay, sound like
a guy that right now that owns a roofing company.
I wish for a storm. Yeah, so you have that area.
I still like some of the you know, some of
the technology names that are like an Apple Loving which
got a bad rapt for a while, but it's come
back very strong. Some of the Chinese at t A
tour holdings are basically like hotel chains in China. Especially
if you open back up a little bit, that can
be interesting. I think that European stocks still have a
pretty good valuation overall. Bonds. Stay away from the long
end of the bond because I think it's gonna be
a very bumpy ride. Gold still is still an appetite
for gold, and so platinum, platinum, silver, yep. In those areas.
We'll see what happens with oil. It it's in a range.
I don't think it's going to break out of any
ranging ranges right here. Doesn't seem like that, and something
really weird happens, you know, with all the things that
are going on in Russia and Middle East, it's still
not opec quash to continue pumping.
Speaker 3: Geopolitical risk for sure. What you're feeling about Big Pharma,
it looks like Trump has kind of declared war on them.
Not sure if his executive order is enough to bring
down their prices, but they might voluntarily bring them down
to avoid what could potentially be really bad.
Speaker 1: You know, I think I've come to the point that
the bad things that the Trump administration are doing don't
have any teeth, and the good things are really sparking
some stocks. I'll give you an example. You have this
whole thing going the el Le stock. I mean it
was up dramatically this week. You know, you look at
some of the names in that industry, Yeah, this Spizer
and all. A few of them just haven't been lagger
I mean hardcore laggards. You know, Maderna just ugly ugly,
ugly ugly. Right, But some of the big names that
have some important cures, I don't know how much they're
gonna be really dinged now. Obviously, you know, with the
executive order to bring down pricing to match what we
have in various countries. You know that whole thing where
there's irregularity. So I guess the best way to put
it in pricing with certain drugs, why are we paying
more than they are? And we're the ones that make
it here and strange, right, But you look at some
executive orders with the nuclear energy or nuclear energy or
even the we'll call it autonomous slash like duty aircraft
like a jobee or an arch aviation, I mean beautiful
moves on executive order to keep developing these. So I
think that I'd rather play the side on the positive
developments that there's going to be some money behind it,
rather than negative because I find that the negative ones, right,
the things that should bust in industry aren't really doing
anything right, at least in the short term.
Speaker 3: All right, So what about AI? Yeah? What about it?
What's your take? Investible? Is it too late? Has the
train left the station?
Speaker 1: So what do you have to invest in? You got video,
you got Microsoft to get Amazon. I like Amazon a lot.
You have Google, which I don't like. I think that
Google actually is going to accountbalize on his self. In fact,
if you do a Google search, yeah, as you do
do Google search right now, you're gonna come up with
the AI first and you don't need to go any further, right, Yeah,
for sure. I don't remember the last time I clicked
on something.
Speaker 3: Yeah, that's killed. There's search business, and they're facing a
potential breakup, which I think they are actually preparing for.
They believe it's inevitable, and you're going to see three
companies come out of it, I think. And the search
is probably the least attractive, but YouTube still growing and
their other their Google apps thing is also growing so
interesting to see.
Speaker 1: Facebook Meta just bought a fifty nine percent take in
an AI company doing what they can to try to
make sure they stay relevant and to have the coming
out of the new product that will essentially allow for
the relief of your advertising and PR firm and utilize
an in house AI bot or agent or whatever you
want to call it. Yeah, they're going the word has
changed versus bots these days. If you notice that that's
kind of a trend towards you're using the word agent
sounds better than a bot. Use this agent that will
allow for development, creation of marketing slash ad and advertising campaigns.
Speaker 3: I just then up for one today just to see
a demo of it. That'll do your PR to like
three hundred and fifty thousand podcasts. It'll do an outreach
to get you on whichever you know you obviously.
Speaker 1: I saw I saw something. Which way was that one?
Because I saw I'm trying to think of the name
it was. It was PR Bodies. Was that the one pod?
Speaker 3: Pitch pod pitch Yeah, yeah, you probably got that same
email as me. You have a podcast, you got the
email and uh yeah, it'll you know, AI is taken over.
I mean, I use it for so much. I don't
use it to actually create content, but I use it
to refine it and augment it and to do due
diligence on it as well. And you know, it's pretty spectacular.
And then I don't use just one AI. I use
two and sometimes three. I'll use chatch ept Rock and
another one. I don't really trust the Google AI and
the Meta AI. They got too many constructs. It's like
it's like Chinese AI tried deep seek and put in
Tieneman square and you get a blank screen, right.
Speaker 1: Yeah, blank stare blank screen. I mean I think that
you look at there's a great great piece of Sam
Altman on his blog. Does look up Sam Altman blog?
Now how much of this he wrote versus AI, I
don't know. But he wrote a piece this week I
think this morning actually called the Gentle Singularity, talking about
building millions of robots, initially by hand in the robots,
building robots, robots, building data centers, data centers, building data centers.
Kind of an interesting discussion by the ninth By the
twenty thirties, this is all gonna be there to a degree. Now,
whether that's twenty thirty five, twenty thirty two.
Speaker 3: I don't know.
Speaker 1: You know, we were looking for row Bot taxes for years.
Supposedly one was spotted in Austin just this week two
oh too is spoken too?
Speaker 3: Now, yeah, it was too.
Speaker 1: They were amazing. By the way, how week after Musk
is no longer involved in Tesla in Doge, all of
a sudden the news shifts to Tesla. And also when
we get these new things coming out.
Speaker 3: That's going on, that's that's orchestration at its fondest finest.
I mean, just like that. Why why didn't we have
this a month ago? Because he was doing something else
he decided we got to do something here. Yeah. Well,
it's the Rosie o'donal effect, where fights are created not
because there's underlying animosity, but if they're created to shift
the narrative, whatever it might be.
Speaker 1: Sa I went to high school with her, he did.
Huh yep, Rosie O'Donnell.
Speaker 3: Uh.
Speaker 1: And also Bob Costas he graduated about ten years before me.
Speaker 3: Wow.
Speaker 1: And uh, there's actually a Florida sportscaster who I'm forgetting
his name now, and he was about two years before me.
He actually graduated in the same classes as Rosie o'donald.
I was friends with Rosie's brother, but she graduated I
think three or four years ahead of me. Uh, who
was his name? I can't remember his name now.
Speaker 3: Yeah. I never believed that that fight was really legit.
Speaker 1: Oh yeah, we talked about that on DH and Plug.
They talked about that with They've Wanted Only. John ced
Devorak this week on DHM Plug podcast. I don't know
if you listened to that yet, but we talked about
the whole uh spat and the well, the distastefulness of
it all. Frankly, but but uh public eats it up though. Yeah.
That that that John said that it was created by
Trump essentially to allow for an exit plan for for Musk.
Speaker 3: I totally agree with him, you.
Speaker 1: Know, I'm not I'm not totally there. I'm not totally there,
just letting you know. I think it's too harsh. I mean,
you could have done something else. You don't have to
be so nasty. You didn't have to have a Musk
with the Epstein files though, and he came up with
all sort of reasons why each one of these things happened.
Speaker 3: Yeah, but I don't know.
Speaker 1: I don't think people that's smart. By the way, I
don't sorry.
Speaker 3: I don't think they are, but I think the AI is.
Maybe maybe I think Trump GTP said, GPT said it
all up here, Andrew, and possibly, Hey, while we're at
I'm just gonna pitch my book here. The way according
to Martin Armstrong.
Speaker 1: Wait, could it make that clear? I can't see the
bottom movie hand a little bit right there? Put it
closer there you go right there?
Speaker 3: Yeah, the world, according to Martin Armstrong, conversations with the
master forecaster, and you know, a lot of forecasts he
made seemingly out of the air, you know, have come
to pass. There's at least a dozen of them in
the book Breaking of the Swiss Peg to the Euro
Gold prices. Told me for ten years they weren't going anywhere,
and they didn't, and then all of a sudden he said,
they're common, and then they are, and a lot of
other forecasts. The link to buy it is in the
show notes this interview. And Andrew one last question cryptocurrencies,
particularly Bitcoin. I was at the Bitcoin twenty twenty five
conference in Vegas sponsored by none other than I think Blackstone,
but maybe yeah, I think it was Blackstone.
Speaker 1: Was they black Rock or Blackstone.
Speaker 3: You know, I always get them confused.
Speaker 1: I think Blackrock has ETF funds, the Blackstone's private equity.
Every think would be Blackstone. I think I mean black
Rock Blackrock. You're right, I always get them confused. I
stand corrected. I think it was well a bunch of
Rock ones of Stone. I mean, it's the.
Speaker 3: Probably connected anyway, but we don't know. But the amount
of money that was there Andrew was staggering. You know,
these booths I guestimate went from fifty thousand to mid
seven figures and there are thirty five thousand people there
and media coverage and politicians. You know that someone told
me that the half of the Republicans' political contributions coming
from the crypto sector.
Speaker 1: I wouldn't doubt it. I wouldn't doubt by the way,
just speaking about cryptocurrencies. In about four weeks, I think
Anthony Scaramuchi is going to be a guest of my show,
The Disciplined Investor podcast who the last time he was
on I believe, if I'm not correct, he had to
do a hard cut because he was having a meeting
with the Democratic National Committee to talk to them right
before the election, and that was coming on the heels
of him talking to the RNC about the points of that.
So there's a lot of many too, splashed around because
a lot of money to be made, a lot of
congressional griffs, and I find that the stuff that's going
on right now with the fact that I call me nuts,
and by the way, just to be clear, you want
to shoot me down and not listen to me because
I'm talking it's about something about your favorite president or whatever.
The fact is, I've never seen such a thing that
the president's family owns a cryptocurrency firm and now we're
pushing cryptocurrency reform. Distasteful.
Speaker 3: I agree, totally agree, but not good.
Speaker 1: With that in mind. Putting that aside for a second,
I'm a big fan of like let's say ethereum. I
think there's a great opportunity there, especially with the stable
coins that are coming through and that's being resolved it seemed,
uh and being utilized to a great extent as an alternative.
I don't think the idea of utilizing bitcoin is a
currency for the for a country is a wise idea
at all. As a matter of fact, I can go
through a laundry list, which I'm not going to do
of reasons and rationales why it makes no sense to
do that from economics one O one, from basic principles
of how an economy is formed, and and and and
uh and and runs. But you know, it's been a
nice run here. I think that again by the dip,
there's a lot of speculative money out there because the
fact that we have governments that are continuing to stimulate,
because the reality is that there's been no negative impact
by the trillions of dollars worth of bonds that if
we have amassed over the last number of years, and
until something happens, then is all going to be just
let's keep on doing what we've been doing until we
don't get a reversal from a v trade down or
the hard and a half where the markets come down
very dramatically and all of a sudden sit down like
they did in the seventies for fifteen years, for the
two thousands, where the Nasdaq was so highly value that
it took I don't know what it took eighteen years
to come back to zero value again. Until we have
one of those kind of flush outs, this speculative nature
of trading is going to happen and the excessive amount
of marketing is going to go on because you realize
something that just like in Vegas, where the casinos.
Speaker 3: Are not built on the losers, on the winners, they're
now I hold them for winners, that's for sure. My parents.
Speaker 1: Same thing with what's going on with the with the
bitcoin booths. You know, a million dollar booth is not
built for the lowest cost bitcoin operation in town.
Speaker 3: Mm hm.
Speaker 1: So I have no objection if people want to buy
any of these. I mean I would stay away from
the mean coins and the crap out there that's you know,
the shit coins that no value waitress whatever coin or
the name with crazy Dog, the German Shepherd coin or
whatever is this.
Speaker 3: Week shebo you know or whatever?
Speaker 1: Yeah right, yeah exactly. I actually own forty million coins,
but you knew.
Speaker 3: Oh well, congratulations, what is it? What's the trading at
these days?
Speaker 1: I could tell you the value is about eighteen hundred dollars,
but I figure if it goes to a dollar ever,
I'm in great shape.
Speaker 3: Hey, you know what we call we call those, Andrew,
we call them klepto currencies exactly. Yeah, yeah, yeah, you
know the president should be floating, uh crypto. You know,
two days before or a day before he becomes president.
There's no excuse for that.
Speaker 1: And but I do like crypto aside from all that
crap that goes on, because a lot of craft that
goes on around the crypto universe, just like just like markets,
by the way, with with with SPACs and some of
the I p o s and some of the bad
news and the and the trial balloons that are sent up,
and the bad earnings reports and the expectation. I mean
there's all that in finance. You know why because there's
money to be made. Yeah, and it's going to happen. Yeah,
generally speaking, you know, stay with the big boys.
Speaker 3: Uh only in the theory.
Speaker 1: Huh Yeah, those those are I don't know. I'll stop
there those two.
Speaker 3: All right, I'll buy it. So just tell us where
we find your podcast. Where we find you Andrew?
Speaker 1: Yeah, you go to YouTube, which we don't have a
big following on YouTube because we just started that. Actually
we don't have any video. Amazon Music is pretty big,
and uh, of course over at Spotify and Apple. Podcasts
that Diciplined Investor dot com or just look up the
Discipline Investor podcast or d H Unplugged Brockhart Horowitz Unplugged
is our other podcast, and there's plenty of stuff in
our strategies, what we do, how we do it, all
on The Discipline Investor dot com.
Speaker 3: All Right, Hey, appreciate you coming on. I've gotten questions
for Andrew myself.
Speaker 4: Email klatcarrielots dot com and uh you'll find a link
to Andrew's site in the show notes to this interview
on Financial Survival Network dot com.
Speaker 1: Carrie, what was that book again? I don't remember the
name you?
Speaker 3: All right, The World according to Martin Armstrong World.
Speaker 1: Okay, that's what I missed, The World according to Okay, gotcha,
And it's available on Amazon and wherever.
Speaker 3: Fine books used to be sold. All right, Ben, Hey,
it's great catching up with you. We'll talk to you
again real soon.
Speaker 2: So much, Gerry, thanks for listening to Carrie Letz's Financial
Survival Network, your solution to today's trying times. For the latest,
go to Financial Survivalnetwork dot com. Financial Vival Network now
more than ever