Speaker 1: So just before Zach came on, I got permission from
his people to chat a bit with him in the
green room while he was having a champagne and all
the lobster and side, and so he says to me,
he said, I'm changing my tune on the market a
little bit because sometimes things are just too cheap to
pass up. And that pirked my ears. So I got
permission from his people to bring him on when he's done.
He's done, Okay, mister Abraham is done with his lobster.
We'll talk about this with the help of our free
speech platform, the Todd Hermer Show dot subseac dot com,
and of course with God Almighty.
Speaker 2: But Todd Herman Show is one disapproved but big pharma
technocrats in tyrone Sabrian ware from the highd Mountains of
Free America. Here's the Emerald City, XI.
Speaker 1: Todd Herman. Today is a day the Lord has made,
and these are the times which God has decided we
shall live. Zach Abraham, my friend and brother, chief and
vest Officer bow were Capital Management Jointis. Zach, thank you
for letting me talk to your people this morning, and
I see that you're well taken care of. How was
the second lobster as good as the first.
Speaker 3: Well, yeah, but I gotta let you know, man, I
got the private jet warming up on the tarmac right now,
and my good buddies Elon and Vivic want to consult
me on Doge. Some issues in Doge, right, So I
can only promise you fifteen to twenty minutes. I'm kind
of a big deal.
Speaker 1: God man, you really intrigued me. There's a lot of
things to talk about today. I read this analysis in
Nvidio might be more important to the market than the
FEDS and jobs data.
Speaker 3: That's crazy.
Speaker 1: We saw the Nvidia dropped on Wednesday. I think it
was we got to talk about the World Bank and
they fear Trump. But let's start with this thing you
said to me, kind of changing your tune a little
bit because there's things that are too cheap to pass up.
And then you said something about the Chinese word for risk.
So let me just shut my speaking whole and listen
with my listening and holes.
Speaker 3: Well, you know, obviously there's you know, there's been a
lot going on, you know, politically, financially, all that kind
of stuff that everybody's aware of and that we all know.
And listen there is. It's headlines like that one right
there that that really boosts my belief in uh in
where real opportunity lies. And I'm getting to the point
now where I honestly think and I feel this with
a very high level of certainty, which I don't usually
say that, and I don't want to get too specific
because I again, I never want people going out and
making investment changes or trades based on what they think,
you know, I said or did, because I could be
wrong too. Haven't around plenty of times. Having said all
that it that statement is true, and yet that is
also one of the prime reasons why I think this
is we are going to look back in a not
too distant period of time and see this as an
incredible investment opportunity and perhaps even generationally a generationally exceptional
period of time to invest. And what I mean by
that is I don't think that really large for the
entire market. As a matter of fact, I think the
market is going to produce extremely underwhelming results over the
next ten years. I don't think it's because any big
disaster is going to happen. There's always the potential of that.
I just think that when you look at valuations. If
you just look at history as a guide, whenever you
get a market valued this richly, and we've only had
it valued this richly two other times. This is going
back to eighteen seventy, that returns are very anemic going forward, right,
which makes sense. I mean you fast forward at all
the gains. Right, You've got the third most expensive, third
most expensive market on one metric, most expensive market another
nine metrics. So I mean, you know, it's right up
there with one of the three craziest periods of times
in market history. And yet the other thing just as
crazy as all that stuff is. And I think we
should get it a little bit into crypto and micro Strategy,
a company that's at the heart of the whole crypto
movement right now is as crazy as it all is
on the insane side, meaning just stuff that makes absolutely
zero sense. People buying because something's going up, not understanding
or paying attention to the underlying fundamentals. We've talked about
this before, but I honestly think that we've reached a
point of and again because I'm saying this, this probably
isn't true, but I think we've It probably won't play
out that way, but I think that we've reached a
point where it literally is time to completely ignore short
term results and start buying the value that's out there.
Meaning we had a moment the other day. Now, don't
get me wrong, man, I would love to sit there
and be like this never bothers me. I am immune
to emotions. That's not true. We owned a goal stock
the other day. It was a very small position, a
little more speculative, but deeply undervalue, deeply undervalued. And they
reported earnings. The earnings included a little bit of a
delay in their underlying you know, process to build out
of their different properties, and a little bit of margin slippage,
a little disappointing, but didn't change the long term picture
of this company at all or how deeply undervalue it was.
On that news, the stock sold off sixty percent in
a single session. Okay, so to the point where it
was trading at about a sixty sixty five percent discount,
to where the newly hired CEO had just invested millions
of his own personal money buying the stock rights at
a sixty percent surcharge to what's currently going on. And so,
don't get me wrong, that hurt, and that really made
a second, Guess what's going on because we're looking at
the results, going this doesn't even make sense. Why are
you selling this off? This thing so deeply undervalued? Right,
we went back and checked our numbers. And I'm not
going to give you the name of the company, but
we went back and checked our numbers. At the time
when we were looking at this in this past week,
the stock was trading around sixty cents a share. Okay,
when we go look at the resources, the confirmed gold
and silver that this company has in the ground that
is worth twenty three dollars per share. Oh, twenty three
dollars per share. The stock's trading at sixty cents. Okay.
Could it go to forty? Sure, could it go to
twenty five? Yep? But I think you've reached this time
where you don't care. And as a matter of fact,
I think you've reached the time where you cheer for
it to go lower. Because when people are willing to
pay a dollar for ten cents, you sell it to
them until they don't want anymore. Right, if people are
willing to sell you a dollar for ten cents, you
buy it until you cannot buy anymore. Right, Wow, And look,
I am not telling you to go load up on
gold stocks. They're not all the same. I'm not telling
you that. What I am telling you is this lunacy
I think has reached a point where you're looking at
these companies and going the disparity. And here's the thing.
A lot of these scenarios, the company has their own
fate in their hands, meaning the stock's been beaten down
so much. If they cash flow a fraction of what
they're projecting, they could buy back fifty percent of the
shares outstanding over the next three years, you know, I like,
so they could issue special dividends. They're the equivalent of
fifteen percent.
Speaker 1: You've You've explained this so well, and I think I
get it now. And let me take a second here
and do some we need to do talking of discounts
and availability. But I want to bring the vidianto this
because I think I get it now, Zach, and please
pay off this thing the Chinese word for risk, because
you said that in the green room in a second.
Do that a second. There's a product I use that's
called wisdom, and it's really sort of an interesting thing
for this program. This is I think maybe the second
time this has ever happened to me where I read
about a product because I was researching food freedom and
I read about this product called Wisdom, and it caught
my attention because it's a Bible based herbal blend. So
I did the research on the guy who founded this.
His name is doctor Patrick Gintempo. And the way this
all came about is doctor jen Tempo was in the
Holy Land. He was walking in the steps of where
Jesus walked, and he was just brought this attention the
smell of all these herbs so profound. And then as
he's doing his Bible reading, he saw that very often
herbs and spices were treated in an almost sacred sense
in the Bible, often referred to in the way that
they could heal. So he got to thinking about what
would he do to take the Bible and the sacred
herbs or that are treated sacredly and put them into
a product. That's what Wisdom is. So this is made
in small batches, small bruise, it's cold brood. All of
that locks in the potency, but he goes some other steps.
It's infused with sound and light waves, which locks in
the potency and the stability of the product. Now, I
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That's try wisdomnow dot com slash todd. So let me
see if I'm tracking here, Zach. The insane of Nvidia,
which had on Wednesday they dropped. There were some revenue
forecast disappointments because there's xuberant expectations of this company. Their
stock price is completely irrational compared to their growth. It's
a good company, you've said, it's maybe even a great company,
But the fact that it might well be more important
to the entire market than the Feds and job data
shows the level of insanity on these popular stocks that
everybody's buying. Because everybody's buying so more people buy because
more people buy. Meanwhile, your gold company and companies like
that can't buy attention. They can't get attention. And so
we have all these opportunities for those of us who
are looking at this from the long view, saying, are
you kidding me? I can buy a twenty three dollars
stock for forty cents and just wait until math makes
a comeback.
Speaker 3: Yeah, I mean obviously we can't. You know, nobody can
look at you and say that that company is ever
going to trade a twenty three dollars right, We're saying that,
you know, if you do the math, that part of it.
And they've got some liabilities in the balance sheet too.
But I'm illustrating though, like the you know, the unbelievable
disconnect here between the actual value and the perspective value,
you know, because there's some forward looking stuff into that
twenty three dollars per share, but the spread is so wide, right, Like,
you can come up wildly short of that twenty three
dollars estimate and still make can extra money, you know
what I'm saying, Like so so and again, none of
these are guaranteed outcomes. But here's the thing. It's not
just with the gold companies. You see it all over
the place. Go look at a company like Google. Okay, Now,
this isn't nearly as good of an example, and Google
is not as clean in so many ways. I think
it's really it's close to the more geopolitical risk in
a lot of ways. Well it isn't. It isn't. But
you know, you see pricing anomalies everywhere because of these
dynamics playing out in markets. Like I said, you go
look at Google. Google is a company that is growing
at fifteen percent a year. Let's go compare it to Costco. Okay,
Google is a company that's growing at about fifteen sixteen
percent a year. Costco's growing at about nine nine and
a half. Okay, Google's margins are in excess to thirty percent.
I believe costcos are right around four. Okay, at four
to six, I would say somewhere in there. And I
might be being generous, but you know, they're retailers. It's
not great, not great margins. You go look at you know,
margins are better. Go look at the balance sheet Google's got.
You know, Costco's doing well. The Googles got, you know,
ridiculous amounts of cash on hand, they've got a more
diversified business. You look at all that, then you go
look at so you know, Google growing at virtually double
the rate, almost double the rate at Costco margins that are,
you know, eight to ten x what costcos are. Flip around,
look at the valuations. Costco's trading at nearly sixty times
earnings and Google's are twenty one.
Speaker 1: Right.
Speaker 3: So, so again not telling you to go load up
on Google. What I'm saying is that these are examples
of what usually if you want to if you want
to go find out the you want to look through
history and find out the guys that typically do the
best put up the best performance numbers in any given cycle. Right,
it's usually the guys that we're investing the heaviest into
the most underperforming sectors at the height of the previous bubble.
Right Why because that's where the values are. It doesn't
mean that all the things in those categories are going
to do well. What it means if it's in that category,
it's probably pretty cheap, right because it hasn't performed, especially
that's magnified now in the longest and biggest bull market
we've ever had in US history. So if you're looking right.
The number one way to manage money over the last
fifteen years was throw your money in the Nasdaq and
just let it ride, right, So passive investing has been
almost the impossible way to the impossible form of investing
to beat in this whole cycle. Okay, well, guess what
that creates all kinds of anomalies, which we think is
setting up the next cycle, which is the inverse, where
it's going through the indexes and picking out these companies
that for stupid reasons have been completely left behind and rejected. Right,
how good as the pull passive by everything has been
over the next ten years, I firmly believe it's going
to be the inverse that if you want really good
and excess returns, you need to be able to figure
out where the value is because that's going to in
my opinion, and if history is any guide, that it
will turn. And when is it turned, it turns when
the largest amount of people are the most sure that
it never is going to right. And you're there now,
So you look at Nvidia like you were asking. Another
classic sign of this. I think that that headline is
one hundred percent correct, as crazy as that is. Why,
because do I think it. Let's not confuse it. I
don't think it's the most important stock as it relates
to the underlying economy, but as it relates to the
stock market absolutely. Reason number one, you've got a market
where the number one source of new flows are ETFs
passive investments. In Vidia's the biggest company in the S
and P five hundred, so it gets the biggest amount
of the flows. Right, So if in Vidia keeps going up,
that is a really big pull on the rest of
the market to go up. Right. If in video goes down,
that is a really big anchor pulling the rest of
the market down. The other thing is is what is
everybody the most excited about? AI? In Video is the
center point of that, right, So if AI, if in
Vidia trips, if in Nvidia trips by ten percent, the
AI sector as a whole will probably get hit for
thirty would be you know, that's that's my guess. I mean,
obviously I can't guarantee that, but yeah, I think that
that's one hundred percent correct. But again, stet back for
a second. That is precisely why you shouldn't be loading
up on companies like in Vidia, because that's idiotic. That
is irrational. We are talking about a big business based
on math numbers and cash flows, right, saying that all
of these other companies are going to lose value because
one company that's trading an evaluation that would make an
aircraft career full of drunken sailor's blush, right, Like, that's
that's ridiculous, okay, but it's true. So what does that
tell me? Inherily, it tells me that this is a
market that is very detached from logic. And what it
also tells me is that, you know, it's like the
little kid, Like we've used this analogy, a little kid
digging through the hile a horseman to or right, there's
a pony in here somewhere, And that's that's the way
we're looking at it is saying, Look, I agree with you,
and that's why I am so excited because when markets
become this value and fundamentally blinded, you know, for a fact,
there are dollars selling for ten cents, and that's what
we're excited about.
Speaker 1: You remind me of this. A couple of farmers I
knew in Utah and they bought some lands down in
Nevada and bit by bit by bit they were selling
off the land, and bit by bit the casinos were
coming in and they did this crazy, crazy trade. Is
they just did this thing where they all they wanted
was bridge rights. That's that's it. Like they sold and
they sold, and they negotiated and they traded and they
brought some they bought some bridge rights to bridge this
river down near Mesquite, Nevada. And lo and behold the casinos.
Look at these idiots, these buffoons, willing to make this
trade just for bridge rights. They didn't have their engineers
go look at the river. They did not look at
the historical flow of the river. They did not look
at the overflow of the river. They did not look
at the historical floods. They did not realize that in
terms of geological stability, there are two places you can
build a bridge that's not going to sink. The farmers
knew this because they'd farmed the land forever. Everything else
here is sand and dirt and mud. There are exactly
two places are tractors didn't sink, exactly two places along
this entire area of river that you could safely build
a highway without doing all sorts of infrastructure build there's
only one place that we're going to have control of.
We need the second one, one at the front of town,
one at the end of town. This was about forty
years ago when the casinos started to have really good
business come in. They needed some bridges, so they went back,
started to make the plans to go to the city
and build the bridges, and they started going to the paperwork.
So the grandkids of those guys got a phone call
about those bridge rights. They saw this when no one
else saw it, and the casinos thought they were going
to come and play with some farmers. Well, they played
with some farmers grandkids who had been to college. One
got turned into a lawyer, one got turned to an MBA.
So they were perfectly happy to lease the bridge rights
to the casinos.
Speaker 3: And how much they're releasing them for, oh well enough
for whatever they wanted.
Speaker 1: Their lives materially changed. And one of the things they did,
and I questioned the wisdom of this, was we get
a whole bunch of free stuff at the casinos. There're
super fun people to go to casinos with because they
don't pay. Yeah, really really interesting. All right, we need
to talk about this company micro strategy. You talked about this,
and this has to do with cyber and cyber coins
and bitcoin, and we'll talk about this with Zach Abraham.
Over the holidays, had a great conversation with a guy
who has moved his job. His acts of I guess
you could say service, and it is service from the
United States down to Mexico. Now, I had this conversation
with some friends of mine and this is the stem
cell organization renewed dot Healthcare. Over the weekend, it was
having another conversation with a friend of mine who broke
the world record for squat many times over and man,
is he paid a price. He and I continue to
have these talks. He continues to want to get down
to Mexico. And he took me aside and goes, look, Todd,
I did some research. They have offices in Scottsdale. I go, right,
He goes, okay, So, but you keep saying it's in
Mexico based company. No, No, they do the treatments in Mexico.
They have to have a corporate entity down there. And
again he said to me, Okay, this is where I
get confused, because my surgeons and doctors are up here
telling me they use stem cells. Okay, let me try
to put this debate to bed forever. In Mexico at
renew dot Healthcare, the stem cells are alive. They're cultured
in a lab after they take the core stem cells
from placebas and umbilical cords. They pay for the birthing
process of those mothers. They observe the health of the
mothers and the babies during birth and for a long
while after birth before they will ever ever use the
stem cells. They still pay for the births. They take
the very best of the stem cells, they get them
to Mexico very quickly, and then they culture them so
there's more of them living. Need to go packed with
building capabilities, but nothing assigned to build, meaning they can
build anything in the human body, muscle, tendon, they can
build cartilage, They fight inflammation, they destroy inflammation. That's the
stem cells in Mexico. The stem cells in the United
States almost always come from your own body. They usually
come from bone marrow. So however old you are, that's
how old your stem cells are, and they go through
a process of licing before they're put in your body.
Basically they're spun around that is centrifuge, which makes them
even less effective. They do fight inflammation. But that's really
just about it. So the difference is profound. If you
want the real healing process of stem cells that I've done,
my friends have done, and countless now viewers and their
listeners to this program have done, go to renew dot Healthcare.
It's our e in ue dot Healthcare. Telling them you're
part of the Todd Hermanshaw family, and they will tell
you if they can help you or not, and they'll
even tell you the percent chance of success. That's renew
dot Healthcare.
Speaker 3: Zach K.
Speaker 1: Brahm's with US chief investment officer Bulwark Capital Management. Zach,
you're talking about this company called micro Strategy is going
around and buying up all the cyber currencies. At least
that seems to be the strategy. So this seems significant.
Speaker 3: Yeah, I mean, look again, you look back through financial history.
This is yet another classic sign that you expect to
see in bubble environments, which is, and I want to
be really clear, guys, but I'm talking about a bubble.
I'm talking about a kind of a unique bubble because
I think in some ways the bubble is so much
more widespread in terms of who's participating in it. Yet
at the same time, the bubble is very selective in
terms of what types of stocks and what types of
things that's involved in. So when I'm talking about this,
I'm not foretelling a market crash. I think things are
going to crash, but I also think that the saving
grace in this market is that there's so much stuff
that's undervalued. So while a lot of this ridiculous stuff
is getting smoked, I would expect this other stuff to
return back to some somewhere close to intrinsic value. And
so I actually think this process could take This process
could occur without you know, seeing a forty percent market drop.
I don't think it's necessarily like, you know, an apocalyptic thing.
I just think that if you're writing the things that
have worked, including the general market, over the next five
to ten years, I think you're going to have significantly
different results than you had over the last ten to
fifteen years. And I think you're gonna have a very
hard time keeping up with inflation rates. But micro strategy
would be another classic example that you'd expect to see.
You know, if you had a checklist of things that
you expected to see in a bubble of some kind,
this would certainly be one of them. What micro Strategy
is doing is it's a relatively small, sort of niche
tech player. I'm not one hundred percent sure and exactly
what they you, but it's it's a I believe that
they kind of provide some equipment to like the cloud
based businesses or something like that. Don't quote me. The
underlying business is not impressive at all. I want to
say it does revenue in the neighborhood of like seven
eight hundred million a year, growing at a very modest rate.
Kind of a fine little business, but kind of a snoozer, right. Well,
what the CEO did, and interestingly enough, the CEO was
the CEO of another company back at the tech bubble
in the late nineties that you know, crashed by ninety
some percent and got obliterated too. So it appears he's
going back to the well. But what he's doing is
he is issuing tens of billions of dollars in convertible debt. Okay,
so debt it could be converted to equity, and the
debt pays zero percent interest, okay, And the reason you're
buying it is because of a convert So it's it's
it's what you're hoping is that you get an arbitrage
where you're able to convert to an abnormally large size
of equity. So if you buy a convertible debt note,
technically what you're hoping is that the company has a
big drop in its equity prices, right, which allows you
to convert and get a big stake of the company.
Speaker 1: Here's your bet. You're buying a convertible note. You're loaning
the company money, but you have the option to say, actually,
we don't want the interest you were going to give us.
Speaker 3: Well, remember they're not paying interest on these ones. No option.
Speaker 1: Yeah, I got that part. But traditionally, convertible debt is
someone loans you the money and you're paying interest, but
they have the option to come along and say, yeah,
we don't want the interest anymore. We want equity, so
we want to turn that debt into equity. But that
traditionally comes with an interest payment, and the investor wins
either way, right, small or big. If the company is
doing super super well, it converts, they get equity that
is now pays them back more money than the interest
would have. But he's doing this with zero interest rates,
zero percent interest rates and issuing tens of billions of
dollars of this.
Speaker 3: Yeah, yeah, billions, And so he's yeah, levering up the
balance sheet in an unbelievable way, turning around taking that
money buying a non cash flowing asset. Okay, so let's
stop right there. Okay. I don't care what you think
about bitcoin or any other cryptocurrency. This is an old
movie that's been around, that's been played many times. When
you are levering up a balance sheet to an ungodly
amount to buy a non cash flowing asset, it is
only a matter of time until you get margin cold.
And the reason for that is at some point, especially
if you are buying something that is as volatile as Bitcoin. Now,
to Sailor's credit, he rolled the last bitcoin drop down
from sixty some thousand down to fifteen or sixteen thousand,
and he wasn't forced to liquidate yet. But that point,
we'll always get there, and at some point right there
will be a mismatch, meaning he will as an exity holder,
you will have two choices. At some point, Bitcoin will
drop well below their average purchasing price right of of
of the of the deal, because remember they're purchasing the
largest amount dollar amounts as bitcoin goes higher, right, So
so their dollar costs d averaging, meaning their average cost
for bitcoin is continually rising. Right, Well, so are the liabilities.
So at a certain point bitcoin drops to a certain level. Okay,
they've got to do one of two things. They either
have to pay that debt back or it's got to
convert into equity. Well, as soon as that debt converts
into equity, it's going to trigger all the other equity converts, right,
because they're sitting there going, well, we got to get you,
We got to get in here, right, and and and
and swap this thing.
Speaker 2: You know.
Speaker 3: Anyway, what you eventually get to is you've got two
You've got two options as a share holder of the stock.
Eventually they're going to be either massive forced sellers of
bitcoin or you will get diluted down to nothing. Now,
the irony is this company's stock trades in lockstep with bitcoin,
except it moves up on average about four times four
percent for every one percent the bitcoin moves. Now, think
about that. That's insanity. You're buying the stock because of
the bitcoin. Okay, but in this case, the bitcoin has
a massive liability attached to it, which is this convertible
debt that is going to convert because the company doesn't
have the cash to pay the debt back, right, it
doesn't pay an interest rate, so it's gonna convert equity
right at some point. Okay, So you're saying that owning
an ever decreasing percentage of a company that owns bitcoin
is better off than owning bitcoin itself.
Speaker 1: This is insane. And you mentioned so that that's the CEO.
He's an Air Force veteran, so thanks for serving the country.
But that that's that's that defies explanation. I mean, this is,
let's put this in common human terms. There's a company
that buys up with zero interest rate loans all sorts
of tickets to concerts. So they buy them, and it's
this convertible notes and you can buy and you can
go to these concerts. And so time and time and
time again they're buying up these concert seats and you
have this and eventually gonna go these concerts, or you
could buy a ticket and go to the concert and
pay less, far less. And this guy's that's a four
hundred percent premium. He's getting two actually just owning bitcoin.
Speaker 3: Yeah, yeah, and it's just it's and that's one of
the problems you have about so much record retail involvement
is that the guy says things. I read this explanation
from a retail investor on Twitter this morning about it,
saying like he finally gets what Michael Saylor is talking
about and why it's worth so much more. And I'm
sitting there going, this is nonsense. You're getting swindled. And look,
it is entirely possible. And I've listened to Michael Saylor
talk It's entirely possible that he believes it. There's a
part of me that thinks he does believe it. I
don't think he's a swindler per se. I just think
he's incredibly foolish. And I just again I look at him,
and I'm like, I look at these people, and I go, guys,
look at the structure of this deal. If you want
to own bitcoin, like, you're guaranteed if you buy the
stock here at this price, you're virtually guaranteed that your
ownership percentage is going to get diluted. And the only
asset of side that matters on the balance sheet is bitcoin.
So you've just figured out a way to negate the
one biggest upside of bitcoin, which is that you can't
make any more of it, well, right, because as you
print more of anything, right, the value of that thing
becomes less. Okay, well, how is that any different than
buying a company where you're underlying share in that company
is constantly being diluted. So like, it's crazy that this
is trading at a premium to bitcoin because the whole
idea behind bitcoin is you can't make any more of it, right.
Speaker 1: Yeah, I just saw this tweet, he responded to with
clown faces and laughing faces. Michael Saylor, CEO of this
micro Strategy is the new Warren Buffett. Yeah, this even
I'm listening to this going, this has to collapse. I mean,
you could have bought ten percent of micro Strategy and
now it's nine percent and eight percent and seven percent
and six percent. Every single day you are guaranteed to
make less money on your investments every single day more
people buy. You could have taken that ten percent you
bought and bought bitcoin and not have this solution ever.
Well yeah, but this bitcoin could go down.
Speaker 3: But it's crazy, man, when you tell this to people,
it's a very unique and you know, I talked to
buddies of mine that have been in the industry for
forty years. It's a very unique attitude in this market
where they look at you and they go, oh, you're
just you're just mad that you weren't it And you're like,
what are you talking about? And they're like, well, you
know who cares? You're not?
Speaker 2: Right?
Speaker 3: The stock went up, so like everybody has this attitude.
If the price goes up, that is reality, right, And
it's really bizarre because you've never had that attitude wholesale
and markets like this.
Speaker 1: Oh right, But there's been one time when I was
raising money out a Silicon Valley. There was a time
and I saw it. I saw people whose companies had
never turned a profit. They were nowhere near a profit.
They were twenty years away from a profit buying helicopters.
I had dinner with them, and the conversation began. Sitting
down with the CEO of Salon dot Com, sitting down
to eat dinner. Hey, Michael, how are you about it? Helicopter?
Speaker 3: Yep, yeah, yep, wow. But I mean, but but I remember,
what's so unique about this is that mania lasted about
two and a half three years, right, this has been
going on. Argue arguably for five to seven years, right,
I mean, it's getting crazier, right.
Speaker 1: But it is. And I'm not saying it's the same thing,
but I'm saying at that time, I am I'm looking
in the eye. And there were people who who would
look you in the eyes say you don't get the
new economy man, like, yeah, I remember things like that.
That's that doesn't happen anymore.
Speaker 3: Remember, Remember, it's not about cash flow and earnings. It's
about eyeballs.
Speaker 1: Yes, I got a phone call from a woman I
did business with their and become friends with, and she
lives in San Francisco, and and we did a lot
of business together. And she called me from San Francisco
and she said, Hey, I'm gonna talk to you for
a second. She was just one of those companies where
CEOs were buying helicopters. And I said, hey, what's going on, Leah. Hey,
you know my husband and I bought this house at
hate Ashbury. Oh yeah, on top of on top of
the hate oh wow, by the zoo.
Speaker 2: Yeah.
Speaker 1: Well we've got a view of both sides. Oh wait,
so you're I mean, you're you're up there. Yeah. So
we bought it with stock I forgot where's your husband?
Zding at? Where are you salon? Yeah? What's going on?
Could you loan of some money? They've fit this margin
call apparently, you know, we've got this this this bubble
agreement on our mortgage, and they're just they think our
stocks sowing got back up, so they're they're kind of
called the loan. So we've we've got a little time
before we have to make the bubble payment. Could you
loan us some money? How much you're looking for?
Speaker 3: Uh? Oh, so they took a hold on, hold on.
They didn't sell their stock to buy the house. They
took a loan out against their stock because they I'm
sure it was going to go up more.
Speaker 1: So how much would you guys? You know what we
looking for? Oh, fifteen to twenty thousand dollars? Uh leah?
How much time does that buy you? Thirty days a month?
You know what. I'd love to be able to help.
Speaker 3: I'm a good man of money after bad there a month?
Speaker 1: Oh no, no, it's okay, I get it. You know
it's a lot of money, and you know, we don't
know what you did that well, and my husband's father
is going to step in and help us. This month. Leah,
this isn't going back up. No, No, it'll be good. No,
and this this is the attitude. Then we need to
talk about this now. Going from the so called private market,
I guess micro strategy is private, I VIDI is private.
But I need to run by you some stuff that's
going on with the World Bank, and then just some
kind of political stuff since there was this election and all,
and I want to talk with you about that some
of the ways we're spending our money as government. Sach
Abrahm's with US chief investment Officer Boward Capital Management. Transparency
is utterly vital. It's utterly vital for today's society because
people no longer like anything that reeks a pretense. This
is why Kamala Harris couldn't make any attraction because there
is no Kamala Harris. There's nothing about her that's genuine
because she's not capable of being genuine. My friend, Zach Abraham,
the chief investment officer Bullwark Capital Management, the guy you
here and or see on our show once a week,
or usually once a week with an occasional vacation like
this past week. He is the guy you see and
hear on this program is not any different when you
hang out with him and you can go have these
social events with him. He does his free live webinars
and he gives speeches. In fact, I'm just going to
ask him. I found out I'm going to Seattle in February,
and I'm going to ask him about doing a private
event there. If you talk to him about your finances
or politics or faith, same guy utterly transparent. He's transparent
about the losses his family suffered economic losses, and guys
in the finance business they don't normally talk about that,
but Zach does. And praise God, it was several decades ago,
but he was being transparent with his bosses. When he
was a young guy in finance, the housing market's going
to crash, and he was laughed at. See he'd always
been a guy motivated by risk management. But when that
happened and his wife and he had to give back
their house all those decades ago, he made himself a
promise when they started their own firm, the number one
thing would be risk management. If two terrorist attacks on
the first day of twenty twenty five don't convince you
that we are headed into an incredibly risky time, that
the deep State and our enemies are going to triple
and quadruple down their efforts to make things hard for America.
I don't know what will. I really suggest that this
is a signal to you to make sure you take
Zach up on his free offer to do review of
your portfolios and your retirement goals. You'll do this for free,
with no obligation. And if you at that end of
that call or video conference or in person meeting, if
you look at that and say, you know what, I
don't need you say that to Zach and he'll say,
God bless you. Go get her done. And if you're
in good stead and you're doing a good job, guess what,
Zach might be the first to stop you and say, hey,
can I stop you? You don't need me. You guys
are set up so well. However, if your portfolio is
not being actively managed, which actually can reduce risk and voluntility,
and you are not set up to reach your retirement goals,
he's going to tell you in loving, straight kind words
and suggest that you let him do what he does.
Here's how to take advantage of this free offer. Go
to Know your Risk radio dot com. That's no your
risk radio dot com or call him at eight six
six seven seven nine Risk. That's eight six six seven
seven nine Risk or know your Risk radio dot com.
Investment advisors services are for the Truck Financial loc and
sec Register Investment Advisor invencements involved risk and are not guaranteed.
Past performance doesn't guarantee future results. Truck twenty four Dash
three seven eight. The World Zach is a little bit
afraid that President Trump might might cut their budget. This
is after the World Bank they lost track of some
money and they're looking for it.
Speaker 3: It was they find it.
Speaker 1: I'm sure ye it was. It was twenty four billion.
Speaker 3: I mean, check the couch Christians, Check the couch Christians.
Speaker 1: What does the World Bank do? I mean I know
someone whose grand dad was on the border the World Bank,
Tim Draper, And I asked him one day what does
the World Bank do? And he said, look, I don't
He couldn't tell me.
Speaker 3: Here's something I was thinking about. Yeah, did I think
that we as a I think that we as a society,
not just here in the United States, but around the world.
I want you to think about something real quick. Now.
I don't I am nowhere near as familiar with the
legalities surrounding you know, the legal structure and the and
the rules and the restrictions surrounding the World Bank. What
they can and can't do.
Speaker 1: They could do anything. They can misplace them for a billion.
Speaker 3: Bucks, right, yeah, And that's my whole thing. My assumption
is is that they're set up quite similarly to the
central banks around the world. Correct. So uh And as
a matter of fact, my understanding is that they're almost
like a surrogate of the world's central banks. But think
about this. Take a look at the Federal Reserve. Okay,
the Federal Reserve has the ability to create currency out
of thin air without any type of approval. Right, the
US government cannot tell them what to do. The Treasury
cannot tell them what to do. Okay. They can iss
issue currency out of thin air with no congressional oversight.
Speaker 1: No audits, nothing.
Speaker 3: Can't look at their books, they cannot be audited. Right.
What do you think are the chances that if we're
able to pull those curtains back we would see ungodly
misappropriations of money that we would see potentially central banks,
including the Fed, illegally funding military actions and places where
they shouldn't be making money. Off illicit trades like drug
and weapons use. Look, I'm not accusing the FED of this,
but what I do know is where there is a
lack of transparency, that is never an accident. Right, It's
never an accident. Where there is opacity, it is always
there for a reason. For instance, you don't ever see
clouded glass right on a door that separates a hallway
from a pool. Right, you're gonna saying, like, where do
you now you walk into a bathroom or a shower door,
you're gonna see some smoky glass, Right, It's for a reason. Right.
So when you see the FED and they have pushed
back vehemently against being audited multiple times, what does that
tell you? Like, and I just sit there deductive reasoning
and go, let's flip it around. What do you think
the odds are that if we audited the FED, we
wouldn't find any of that stuff?
Speaker 1: Zero?
Speaker 3: Samely, I would say, I would agree, Hey.
Speaker 1: When you have a World Bank, And when I asked
him Japrin, what do they do?
Speaker 3: Well?
Speaker 1: They fund projects around the world to help countries that
can't afford loans from the United States. Okay, so the
United States doesn't have to make loans well no, I
mean we still make loans and we give money out. Okay,
so they're a supplement to a foreign aid. No, they
don't have that much money. So what do they do? Well,
so they might back say building projects, say in Africa. Okay,
so like when we have funds to help build things
in Africa, there are a supplement to that. No. No,
they'll buy those things and they'll convert them, convert them
to what. Well, then independent investors will come in who
can set money. Although that goes back to the World Bank.
What do they do with it? Well, they go fund projects.
It's a bank, it's a sticking bank. And we don't
get to audit that. We don't get to audit the FED.
I'm telling you be suspicious of this as a as
as a married couple. If you walk into the front
room and your spouse is typing away on the phone
and they see you coming and they turn it off
and set it face down and then sit back from it.
Speaker 3: I probably weren't buying you at Christmas present.
Speaker 1: Maybe they were, but probably not. So when someone does that,
you know they don't want you to see what they're doing.
We know the FED doesn't want us to see what
they're doing. So I hope President Trump comes along to
the World Bank and says, yeah, I'll give you more
money as as soon as you tell me where's twenty
four billion went?
Speaker 3: Well, and look, and I think that's the same. I
think that's the same thing, the same. Well, what I'm
hoping the same approach to users with the FED is
what I'm And what I'm hoping is that his threat
of inserting himself into interest rate or monetary power decisions
is just leveraged for him to get the FED to
agree to an audit.
Speaker 1: Oh, I would love that so much.
Speaker 3: Yes, because if that's why he's threatening being involved in
the monetary policy decisions, then then I'm good with that.
If he earnestly wants to be involved in monetary policy decisions,
I think that is a train wreck. Uh, and that
is something that will cost us deeerly in the long run.
Speaker 1: So I totally agree with you and that when I
brought up auditing the FED. And did I tell that
story when I brought up auditing the FED Washington, d C.
When I was in the Republican National Committee leadership team meeting.
Speaker 3: No, but I'm sure it was like the equivalent. I'm
sure the reaction was like having a you know, a
square gun full of holy water in a room full
of vampires.
Speaker 1: I'll tell you in a second the actual reaction. It
was so so phenomenal that we need to go through
some spending and just you know, I like what about isms,
So I thought we'd do some what about isms in
terms of what we spent in in this this past year,
and just work our way down to some people who
might need the money more than the folks were giving
it too. We're talking to Sack Abraham, chief invest officer
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It's bone Frog Coffee dot Com slash todd. So Zach,
let's run through some numbers for the year, just a
year in review. So far this year, the United States
has given twenty four billion four hundred million to Ukraine,
eleven billion, three hundred million to Israel, one million, nine
one billion, nine hundred and fifty million to Ethiopia, one
point six billion to Jordan, one point four billion to Egypt,
one put one billion to Afghanistan, one point one billion
to Somalia, one billion to Yma, nine hundred and eighty
seven million to Congo, eight hundred ninety six million to Syria,
nine thousand per illegal immigrant who's entered the country, and
Americans who've lost everything through Hurricane Helene are filling out paperwork,
hoping very very much to be able to get seven
hundred and fifty dollars. Many many people being denied that
seven hundred and fifty dollars you made a joke earlier
about Elon Musk and Vivic Ramaswami and the doge thing.
I start here, I start with this comparison, and I
go back and I talk about something you and I've addressed.
Done this show before. It is time for President Trump
to come to the table and say this. Every government
department starts at zero. It's basedline budgeting time. Guys, your
spreadsheets are filled with zeros. Come and make an argument
that you should exist fair enough.
Speaker 3: Yeah, oh, I mean yeah, I mean yeah at one percent.
I mean, I mean I do feel bad for the Congo.
You know, I'm they didn't hit the billion dollar mark.
I would accuse that for racism, probably some ism. Yeah,
I mean, you gotta get I mean, I mean, it's
just the slap of the face when you're not a
part of the billion dollar United States giveaway, you know,
I mean, like that's it. That's like not having a
seat at the table for family Thanksgiving. You know, you
show up, You're like where am I going to sit?
So I mean I think you could eat your car,
yeah yeah, or you sit outside the garage with a cat,
you know, keep him company. Yeah. This, I mean, there's
so much low hanging fruit. People are like, Oh, they're
not going to live up to the expectations, And I'm like, look,
do I think that they're going to trim an amount
of money that significantly impacts our deficit situation right now?
Speaker 2: No?
Speaker 3: I don't. Okay, do I think that they could trim
hundreds of billions of dollars off of the federal deficit
and for us to actually see increased service and increased results.
I absolutely think that that is possible. I don't think
it's not only possible, I think it's fairly easy, meaning
I don't think like there's so many of these situations
where the money spent on the regulator is the problem. Right, Like,
So if all you do is get the regular out
of regulator, not all not all the time, and not
with all regulations, but sometimes a lot of the the
you get a two for one deal, right. You get
the money that you save federally, then you get the
increased tax revenue off of increased production and increased profitability
in the underlying sector. Yep, So it's it's kind of
a it's a two for one. So do I think
that they should do that? Yes, But here's the reason,
you know, to be fair, to our politicians on the
Hill and all those and all those bureaucrats in the
UNA to be fair to them. The reason that they're
not giving these people more than seven hundred and fifty bucks.
I mean, I don't think you're being really fair about it, Todd.
When they give those people the money needed to rebuild
their houses. Their nieces and nephews aren't getting special board
positions that are paying half a million dollars a year
by some foreign entity. I didn't even I mean, yeah,
I mean, so you know, if nephew Nick ain't getting
his sweetheart five hundred grand a year, you know, working
for an Estonian you know, nat Gas provider or something
like that, I mean what you know. I mean, look,
I wish the folks well, hope they can rebuild their house,
but nephew Nick's got to eat man.
Speaker 1: Yeah, you know what. Let me just say this now.
I want to apologize to all the people I hurt
by not understanding this better, and I seek to do
better in the future. I'll reach out to some of
these communities as the marginalized sons and daughters of Speakers
of the House.
Speaker 3: And et cetera.
Speaker 1: And we just learned, you know, I just I fell
short of my expectations of myself, and I'm making a
small donation, small to my size, to the fund to
preserve the sons and daughters of the United States Senators.
Speaker 3: That's what I'm here for.
Speaker 2: Man.
Speaker 1: I think I'm happy to be of service to my attention.
Zach Abram has been with US chief investment Officer Bullwark
Capital Management and good friends, great friend of the show.
Always appreciate you. It's Wise counsel day. Thank you, my brother.
Speaker 3: Hey, thanks for having me. Man, God bless you and
all the listeners.
Speaker 1: Bus you. This is the Todd armanshell. Please go, be well,
be strong, be kind, Please make every effort to walk
in the light of Christ.