Speaker 1: When you look at investors, as we are getting so
used to the tariffs and the negotiations as it relates
to it, they're not being as spooked as they were
in April when the market really dropped. I think people
are starting to realize that the tariffs are more of
a tactic than just a flat tax all the way
across the board. As the current administration continues to negotiate
back and forth, it's not having the detrimental effect on
the market in the economy as everyone thinks.
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Speaker 1: And welcome.
Speaker 3: This is Financial Survival Network. I'm your host, Carrie Lutz. Hey,
we're already in June. It's six five, twenty five. We
just got numbers and little soft interest rates. Well, surprise, surprise,
they're coming down. Maybe Trump will actually learn to love
Jerome Powell after all. Edward Siddell is with US now
you find Eddie at EGSI financial dot com. Eddie, welcome back.
So what's your take on the numbers?
Speaker 1: Well, thanks for having me back in. You know, honestly,
we weren't shocked. They're a little soft, and I think
we're going to continue to see a little bit of
a slowdown until rates get lowered. We do believe rach
Or they are going to lower rage, probably in not
in this next meeting, but they are going to lower
them once, if not a couple times by the end
of the year. They're they're going to have to. I mean,
they're already late to the game. Although, like right before
we started, I was shocked at University of Michigan's projection
for inflation going up six and a half percent next year.
I don't know where they got that number, promos actually
trying to find the report before we started. But yeah,
that's well. I think it has also a lot to
do with the tariffs and how they're projecting the tariffs
and the impact that that's going to have. But again,
you know, six and a half percent is super high.
Speaker 3: It's ridiculous, but you know, it all depends how you
calculate inflation. But the way the e Conherence Department does
now labor statistics then probably is spot on, especially if
gas prices stay down right.
Speaker 1: Right right absolutely, And you know that's really the whole
thing is when we're looking at inflation, if energy prices,
gas prices are down, that really transcends the entire economy
because we're a patrollum based economy from you know, not
just transportation, but you know, all the way to pharmaceuticals,
all the way across the board. So if those costs
are lower, how can inflation be be rising? Yeah?
Speaker 3: But what about the Green New Deal? You know, like
you're just gonna put a solar cell on top of
your car and you're going to go from there, right.
Speaker 1: Well, that that's right, that's right. Did you see the
report that came out today to beware of those solar
panels and and inverters coming from China that they are
now finding software in the inverters that that's yeah, crazy, crazy, creazy.
Speaker 3: Did that come from? I mean, what's going on here?
Do you? I mean, this world gets crazier by the day,
don't you think?
Speaker 1: It almost sounds like you can't make this stuff up?
You really really can't. All the way across the board.
It's just it's it's nuts to include, you know, the
Reconciliation bill, some of the that been the big beautiful
one bill all wrapped in one where we're adding to
the national debt. You know, if if you especially look
at the CBO report and again how they calculate these numbers,
how they discount it. You know, it goes back to
that old saying there's lies, there's damn lies and their statistics, right,
So it's amazing how they can make the numbers look
however they want.
Speaker 3: Yeah, well it's not really amazing, is it. So this
is a case of been there, done that, and got
the T shirt? Right, Yeah, absolutely absolutely it. I think
the one thing.
Speaker 1: That probably bothers me more than anything else, you know,
with it being in the Senate, in the one issue,
it almost seems like there's a couple of senators grandstanding
just to get the publicity, uh with with without a
whole lot of support behind it, you know, in what
they're really saying. It seemed like Senator Hallie is kind
of backing down a little bit and going along with
it because the reality is we have to extend the
current tax cuts. If we don't, it is definitely going
to tumble, not just the markets and the economy, but
it's going to put us in a very deep recession.
So I think it's going to get passed by the
end of summer. I don't think it'll be by the
fourth of July. But again there's I continue to not
be surprised.
Speaker 3: Interesting. Interesting. So where are we heading here? What do
you think the market's going to do? And where do
you see all this heading?
Speaker 1: Well, so the first thing that has to happen is
we we've got to get the reconciliation bill passed. So
once that happens, then we can start with deregulation from
the energy sector to the financial sector, all the way
across the board. That's going to spur on growth. I
think when you look at investors as we they're getting
so used to the tariffs and the negotiations as it
relates to it, they're not being as spooked as they
were in April when when the market really dropped. I
think people are starting to realize that the tariffs are
more of a tactic than just a flat tax all
the way across the board. As the current administration continues
to negotiate back and forth, it's not having the detrimental
effect on the market in the economy as everyone thinks. Now,
when we're looking at a lot of companies, including Jamie
Diamond and JP Morgan, you know, they're they're cautious, very
very cautious as it relates to you know, their their
future and setting expectations because they want to make sure
that if their earnings aren't where everyone's expecting them to be,
you know, the stock prices aren't going to get that
big of a hit. So we're seeing that all the
way across the board, from Walmart to Amazon, you know, everywhere.
So but that also creates really good buying opportunities. I'm
very bullish on the market. I think it's going to
be positive by the end of the year, all the
way in in every indassy there's a lot of still
really good buys out there, and I think long term,
over the next eighteen to twenty four months, we're going
to see unprecedented growth.
Speaker 3: Yeah, I am inclined to agree with you, barring some
major geopolitical situation. You know, it's like they keep criticizing
Trump like, oh, you just imposed these tariffs and didn't
talk to anybody, didn't do anything. Look post World War.
You know, we're talking eighty years of the US carrying
the world on its shoulders economically and basically dissipating our
wealth and all in the name of being a good superpower,
a nice superpower. And they weren't going to respond, and
they weren't going to react unless Trump did something really drastic.
You know that old story. Yet, the guy's got a
donkey and he's trying to push it up a hill
and it won't go, and it won't go. Then he
takes out a two by four and slams it in
the head. And this guy's watches what are you doing?
What are you doing? He says, he's not paying attention.
But now I got his attention. And that's what Trump did.
He slammed the two by four on the donkey's head.
If he hadn't done that, nobody would have come to
the table. And these deals are going to happen way,
way faster than anybody out there knows, because there's a
secret weapon involved here that I call Trump GPT, and
that is Trump's personal AI assistant. You know, he's used
to having a whole bunch of servants. He's got a
new one. It's an AI servant and they feed in
the trade deals, find how we're being screwed, rewrite the
trade deal with enforcement and say do this or else,
And all the other countries are and hawing, but you're
seeing them line up to make deals here.
Speaker 1: Really, what people don't realize is you keep hearing on
the media, right, I mean, it's they it's just if
it bleeds, it leads, they want to make it gloom
and doom, the sky is falling. But the reality is
is that the US America we hold all the cards
because we're the largest, you know, consumer nation in the world.
We're also the largest det nation, you know, in world history.
But in order to gain access to our markets, you
have to be able to you know, be willing to
play the game. And we're changing the rules and that
and that's huge. And these tariffs, it's affecting China more
negatively than it is US. And people are looking for
other supply chain avenues. When I say people other countries,
not just America. So I think this is good for
the world economy, but especially for US. And that's really
what's most important to hear at home. It is going
to be really good for us long term.
Speaker 3: Yeah, could not agree with you more, it's totally agree
and it had to be done. And you know, the
US has stopped becoming the world's checkbook. That's the intent.
USA ID being eliminated, all these other NGOs being cut out,
and we're going to see. So what about the fact
that Congress isn't even cutting anything from the budget in
this big, beautiful bill. They're basically leaving it all for
Trump to flex his executive muscle.
Speaker 1: Right, well, they are, and that's probably the most disappointing
thing when you have, albeit very slim a majority in
Congress supposedly where there's fiscal conservatives, and even as Doze
was going through and finding all this waste, fraud and abuse,
Congress has to come in and legally reappropriate that otherwise
they continue to receive those moneies. And they won't do
it because they're worried about re election and their constituencies.
So they're leaving it up to Trump to be the
big heavy hand because and here's the issue, if we
don't actually fix this, we're going to continue to be
the world's financial patsy all the way across the board.
Because with these you know NGOs, let's face it, they're
basically government cutouts and we're funding those to do things abroad,
and it's benefiting all these other countries, and we do
have to stop that in order to be fiscally responsible
and be good stores of taxpayer money. And you know
that's money coming right out on you know, my pocket,
in your pocket.
Speaker 3: Agreed, So uh, looking ahead though, basically it's just going
to cut the money off and let them sue. And
I think that the Impoundment Act of nineteen o seven
and four, I think it was is unconstitutional. It rained
in a power that presidents have had since the Republic
was founded. And really, you know, I don't see that
they're going to be able to do anything to stop them.
Speaker 1: It'll be interesting to see how the Supreme Court rules
in what the opinion is going to be on that.
I would be shocked if they rule against Trump and
his authority and power. But again, stranger things have been happening.
So but again it is they're going to leave it
up to him, and you know that's a good thing
because he's going to do what's in the country's best
interest America first, which you have to love.
Speaker 3: Yeah, yeah, absolutely, could not agree with you more. Hey,
So when we have this conversation on June fifth, twenty
twenty six. Where's the market.
Speaker 1: Going to be yet? I think, honestly it's it is
probably going to be at least twenty percent higher than
where it is right now. There are a couple of caveats.
Right here is the caveat. The number one caveat is
the reconciliation bill that has to get done. As soon
as that gets done, then the rest of the dominoes
are going to fall. So that is first and foremost.
There's a couple other things. And like you said earlier,
you know, bar some geopolitical strife. But yeah, I'm and
I'm being very very conservative. We're being more bullish than that.
We have redeployed a lot of cash and capital back
into the markets. We are about three percent invested for us,
so we we believe that strongly. And where the market
and the economy and everything is going over the next
twelve to eighteen months.
Speaker 3: All right, I like it, ed, Just tell us where
we'll find you again, Please.
Speaker 1: EGSI Financial dot com.
Speaker 3: All right. Links in the show notes this interview on
Financial Survival Network dot com. And while you're there, please
sign up for free newsletter. Also we've got a substack.
The link will be in there as well, and a
lot of valuable info excuse me, where we actually discuss
the rise of Trump gpt ed. Appreciate you being on.
We'll talk talk to you again real soon.
Speaker 1: All right, thanks for having me, talk to you soon.
Speaker 2: 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 Survival Network
Speaker 1: Now more than ever,