Banking Sector Concerns: Recent banking sector issues have raised alarms due to fraudulent activities like overselling account receivables, causing temporary market panic.
Market Volatility: The market is experiencing rapid news cycles with significant daily fluctuations, often influenced by geopolitical tensions and policy announcements.
Federal Reserve Actions: The Fed's decision to halt quantitative tightening suggests a shift towards maintaining or increasing current debt levels, which is seen as a stimulative action.
Gold and Silver Market: Gold and silver experienced significant volatility, with recent price drops following a period of substantial gains, attributed to various global economic factors.
Apple's Market Influence: Apple's recent all-time high was driven by strong iPhone sales in China and the US, significantly impacting the Dow Jones index.
Investment Strategies: The concept of "right to win" is emerging as a business strategy, emphasizing a company's competitive advantage in entering markets successfully.
Retail Investor Impact: Retail investors continue to play a significant role in market dynamics, particularly through meme stocks and zero-date options trading.
Corporate Earnings: Companies like GM have reported strong earnings, contrasting with others like Netflix, which faces challenges with shrinking margins despite positive guidance.
Transcript
Hello and welcome to D'vorak Horowitz Unplugged, an hour-long discussion of activity in the financial markets around the world featuring columnist John C. D'vorak and money manager Andrew Horowitz. This conversation is casual and unrehearsed. Let's join John and Andrew now. >> I'm John Cavorak. >> And I'm Andrew Horowitz. >> And it's the 21st of October. Where you been the last two weeks? Uh, I've been around. >> I haven't I didn't send you any pictures. I didn't even tell you where I was. >> You did send me a picture. >> I did send you one. Maybe >> you were in Tuscanyany. >> Yeah. Yeah. Yeah. It was nice. It was nice. I mean, I was in Turkey for a little while. >> Uh, >> oh, you went to Turkey. >> Turkey, Istanbul, which everybody smokes. Everybody smokes during dinner. >> They smoke a lot. >> Then went to uh Capedokia. >> Turkish tobacco, as a matter of fact. >> Yeah. They they they one hand they have the fork, the other hand they have a cigarette. >> Wait, you went to Istanbul? Did you buy a rug? >> I didn't buy a rug. I didn't buy veneers. And I didn't get hair implants. >> Wow. >> That seems to be the thing. >> How do you I don't know about that, but I don't know how you got out of Turkey without buying a rug for two. >> Yeah. >> Uh they tried. They tried, but I'm like, "No, that's not happening." And then uh went to Capidokia for hot air ballooning which we were winded out. The wind was over 10 miles an hour so they canceled it. But I did go to and I'll tell you offline another time. One of the most amazing cooking courses I've ever done or classes. Very cool. Started with uh >> where >> in Capidokia. It was a uh >> I keep wanting to say Gonzite every time you say that. >> It it was very cool. It was a farm to table kind of thing. It was very unexpected. Um, it was very old school. It was just very a lot of fun. >> What did they teach you to cook? uh made uh like this millet and this rice with all these different ingredients and stuffed all our own fresh vegetables and then made uh I think it's called dolma or no dolma dolma with the the grape leaves that we rolled up with the fresh grape leaves that we picked and then they they blanched and then we rolled those um with some of the rice and then with all sorts of other uh tomato sauces and then put that on like a big smoky fire and then we made this other beef dish and then we made um I made oh with uh they made grape molasses. The guy was stomping the grapes, cooking the grapes, and made this grape molasses. And we used uh kind of a rue, what they called something differently. And we made this like well grape molasses candy. >> Oh, that's interesting. >> Yeah, it was it was a lot of fun. Good fun. Good clean fun. So, >> except for the toes. >> Yeah, exactly. Well, he was using boots, actually. It was a kind of he had these um worse firefighter kind of boots on or something. I wanted to uh dedicate if I we don't we haven't done this before but I thought this was a little bit special. Um I want to dedicate this episode of our show to uh Sophia Maria, someone who is uh very special to us. Uh good friend of the family. Uh my good friend's daughter passed away last week very unexpectedly. Uh a weird health situation, too young, 20 years old and um it was a very sad thing. So, I thought we'd dedicate this show to her today. >> Sounds good to me. >> So, all right, warm up. We have a new crisis brewing. The banking sector once again is at it. Three different fraud, bankruptcies, weird stuff that happened within not a particular bank, but to a particular bank. And that raised the alarm and the flags and the everybody was all upset for about a day uh about this because like, oh my god, you know, uh the three in a row and Jamie Diamond is talking about things. We have some notes on that. Well, it seems that there was some hanky panky going on with some of these companies like overselling their account receivable. So, what they would do is they'd factor their account receivable. They're like, "Okay, we have a million dollars coming in, but we need to buy some stuff." So, what they do is they factor it out and basically pledge their accounts receivable to a bank, and that bank will give them money ahead of time. That's all fine and good except when you do it five times. >> Yeah. Yeah. You're only supposed to do it once. >> Yeah. It It's like the movie or the play The Producers. >> Remember that one? >> That's what you do. Yeah. >> Do you remember the show or the I saw it with Nathan Lane, but do you remember the And uh and uh Matthew Broadick. Do you remember or not? No, that wasn't it. Was that Were they in the show? Was Matthew Broadick in the show? >> I think he might have been. Yeah. The movie was Zuro Mustell and uh uh the the the the comedian guy, I can't remember his name right off hand. Do >> you remember? Do you remember it was >> Jean Wilder? No. >> Wilder. Gene Wilder. >> Do you remember? I don't remember that. And then there was a remake of the movie, too. Do you remember? >> No. The first movie is the best one of the group. Do you remember the uh the Broadway play musical? The name of the musical that they used to sell the shows to the old ladies. >> Yeah. Springtime to for Hitler. >> Springtime for Hitler. Springtime for Hitler and Germany. That was a It was supposed to be a flop and everybody would get lose their money. Well, I don't know if that situation was similar, but maybe somebody got the idea for that for what was going on in the auto parts industry and uh that was one and there was two others that happened all rapid fire and you know billions of dollars disappeared. So now all of a sudden the alarms are ringing that are we seeing too much of a push for either private equity for credit or private credit I should say uh private equity firms doing private credit and just trying to find stuff and doesn't matter about the underwriting and banks getting sloppy with their underwriting. That's kind of what the whole theme was of this one or two day freakout and everybody's like, "No, you know, >> it's basically criminal activity." >> Yeah. And it's already forgotten. The news cycle is so fast and the cycle in the investment world is so fast right now that literally things happen uh within minutes of the news item and recover within a day. This happened also two weeks ago or a week and a half ago on a Friday when President Trump whether he had some horrible gas maybe from a bad Mexican meal or something was aggravated and somehow lashed out at China on a Friday afternoon saying you know what by God we are going to uh put a 100% tariff on them because they're you know curbing exports of their rare earth materials. markets freaked out. >> Yeah. >> Well, a day later, JD Vance came in and he walked it back saying something like, you know, don't you know this is a negotiation tactic? Which is the equivalent of you and I playing no limit holdem and me pushing all in and then saying, you know, by the way, John, I just want to let you know that's a bluff. >> Yeah. >> Dumbest negotiation process I've ever seen. And then uh yeah and then and then you know then a day later before the of course before the futures opened on Monday President Trump coming out and saying you know what everything's going to be fine. >> President Xi you know Xi and I are very good friends don't worry about it everything's going to be fine. So markets rallied dramatically that Monday and and even today there was conversation by Trump saying you know um I think uh you know we we're going to make some something like we're going to make good progress but I don't think we're going to have a meeting like wait you have to have a meeting this is the whole point of it right you know the we're going to make good progress the meeting was a big meeting they're going to be a meeting right we're we're going to do this meeting but you know I think we're going to make good progress and things will be fine you know after the meeting but I don't think we're going to have a meeting like How does that how does that work? So markets are getting played pretty well and investors are just taking it in stride. They were in sideways mode pretty much since the last month or so probably the last month until maybe yesterday. Then they not I don't think all but the Dow broke out particularly because of Apple. We have some news about that. Um, and we have an announcement of the winner of the close to the pin for Lithium America Corporation. And by golly, they got it pretty close considering especially how volatile this thing was or is. >> Yeah, pretty amazing. >> Yep. Yields are dropping. Uh, we're finally seeing seeing what was hoped for with the idea that the Fed was going to reduce rates, but it's actually happening due to other reasons. the rates are coming down with the dollar again and uh ahead of uh some structural let's say weakness that's being seen now some things we can't see remember because the unemployment rate for example the government's shut down we can't get the reports how convenient >> yeah very convenient >> yeah we don't know what's happening we could have a 9% unemployment rate right now we wouldn't even Yeah, obviously that's a stretch, but point is that uh ma you know most of the major uh governmentalbased statistics you're not going to get those reports and then whatever you get it doesn't matter at that point by the time you get it because it'll be the next one will be coming out already. And now the Fed made a recent move also the Fed keeps on working it seems though government shut down but the Fed keeps working. the uh maybe they're on furlowed to a degree on pay also or probably not. They're probably exempt. Oh, they're not a government agency now that I think about it, right? But they're on the payroll. >> Yeah, the banks are supposed to pay their pay their salaries. >> The Fed stop talked about stopping quantitative tightening. If you remember, we amassed an incredible amount of debt since what year? I don't know. two 2008 >> 2008. >> Yeah. 2008 78. And then and then we we hockey stick it in 2020. And the idea was, you know, before 2020 was, hey, we're going to make progress. We're going to start taking down our debt, you know, because it's horrible debt and the debt to GDP ratios and our our our costs to for the for the debt servicing are so high and it's, you know, breaking the back of the country and blah blah blah blah. Okay. And then 2020 comes along, goes crazy again, and then we started, oh, you know what? We're going to start bringing it down again. the Fed is going to, you know, the Fed's going to get now. Now the numbers are ridiculous, right? Um >> Yeah. Once they start to they got they got a power hungry. You you're it's giving you they got like two control levers that they never had before. >> Yeah. Right. >> And they're [ __ ] around with them. Let's see what happens if we do this. >> Yeah. Which is interesting because as soon as they talked about the quantitative tightening being stopped, in other words, they weren't what they were doing was allowing for the bonds to roll off so that upon maturity, the bonds would no longer be renewed, thereby reducing the amount of debt that they had outstanding. Right. >> Yeah. >> So, they said, "We're not going to do this." Starting last week, they said, "We're not going to do this anymore." I'm thinking, "Wait, wait, wait, wait, wait. Let's think of what that means. That means that they not may not be adding debt." Please explain. >> Yeah. Well, what that means is that that they're not going to be reducing the debt anymore. They're in fact going to keep it steady, rebying. Once again, they're actually going into you're either qu one of two modes. You're in quantitative tightening or you're in quantitative easing. Those are the two words, two two modes. Not doing anything. Keeping it at the same level is actually the mode of quantitative easing because you're buying bonds. You're buying them as they mature. So that's that that's a that's a favorable stimulative activity versus quantitative tightening which is actually pulling money out of the system. So either keeping the debt at the same level or increasing the debt are both stimulative. One is more stimulative than the other but still stimulative. So that's uh something what why why all of this why why all of a sudden we're reducing rates by a quarter percent and maybe another one in in the next uh meeting. Uh who knows? Not that we have the data to know what to do anyway, but whatever they're going to do. And at the same time, you know, all of a sudden they want to keep money in in the system by continuing with the quantitative easing cycle. Going back to quantitative easing cycle, >> I'm reminded of a story that uh my old roommate had a girlfriend who was a nurse and she told this story about how nurses on the night shift when they came in all these patients that were especially in the more critical wards, they crank the oxygen up to every one of them to the max. >> Really? Oh. And then because they know they'd get through the night with all this fresh air, fresh oxygen, pure oxygen, then they'd cut it back before the shift was over and they give it back to the person that came in for the day shift. This is kind of what we're talking about here. >> Cranking the oxygen up. >> Yep. Yep. Yep. >> So the economy doesn't die. >> Yeah. Right. Right. Right. The life support is being reinstated. Right. It's or or look at it differently, it's the heroin is being reintroduced to the the drug addict. Just when you thought it was safe to take him off and they were healing and they were getting beyond it in the rehab. No, you put it right back on. You know what? Maybe needs John needs a little more juice. We're never We're never going to get off this. So, the only thing that we can possibly do is try to extinguish the debt through a variety of mechanisms like taking the dollar down. Now, this is something that actually came in as a question, and I'm going to weave it into this right now. Um, something a listener wrote in and said, "Could you explain what the Mara lo the Mara Lago accord is?" The Mara Lago accord. There was something like this a number of years before in a similar action and, you know, they named it something. Um a and uh this phrase was coined by uh US money market wizard and previous credit Swiss strategist Zultan Pner. Posar, Posar, Posar, Zultan, Posar back in 2024 as an um the idea that we can force countries to accept a weaker dollar and lower interest rates on their US Treasury investments in order to still be protective protected by the US security. So, it's like, hey, that's your payment. You want big daddy to protect you, you're gonna have to pay up. How you going to do it? All right. You know how you're going to do it? You're going to borrow money. You know, we're going to we're going to do it at a lower um dollar value and lower interest rates on the US Treasury investments. And uh you know, that's how it's going to work. You know, you take these deals, you borrow money uh or you know, you pay us for the not borrow pay us for our bonds, but you know, we're only going to pay you like 2%. Wait a minute. Wait, the going rate's 4%. Yeah, but too bad. You want us to uh have those, you know, F-15s flying overhead? you want us to patrol your waters or in this day and age, you want us to shoot you out of the waters if you're in the Caribbean, uh, you're going to have to accept that. And and that was kind of this discussion of how things may operate. And what's interesting is that's kind of happening. We're seeing this happen in real time over the last number of months. One of the reasons that a lot of people are suggesting that the dollar has been coming down so substantially is because it's being pressured that way. that will in turn help extinguish the debt by uh inflation inflating out uh the value of the bonds or you know deflating out the the the >> yeah you pay back pay back the debt with cheaper money >> right so something to think about and and that could be why we're seeing you know on what are we on uh US government shutdown day 1920 21 something like that right >> fourth week I think >> yeah and that's why gold Gold, gold, gold. I love gold taking a walloping over the last couple days, but it was hit a new high just like three days ago. >> Yeah, it's skyrocketing. >> Silver on fire. Platinum going crazy. That that last move >> called the platinum thing. >> Yeah, that last like I still can't get platinum. I tried to get platinum at Costco. I couldn't get it. >> Get a bar. It's like 2,400 bucks for a bar. >> Yeah, because silver's up to 50 bucks, which is really high. I mean, silver tra traditionally is around I don't know 38 bucks. >> Yeah, I think it popped to what 52 or 53. >> 50 some. Yeah, 50 plus. That last little move there with gold and silver. This is a good lesson because that last move on gold and silver, they're they're called um like exhaustion breakouts. They're called, you know, uh, exhaustion level kinds of moves where, um, think of, think of an airplane, you know, it goes up, it goes up, it goes up, and all of a sudden you start getting more vertical, right? You're going now, now you're straight up. What happened? Stall speed happens, right? Think of that chart of gold. The plane is is gaining altitude for a long time. That last burst, it goes vertical and it stalls and then it just starts coming right back straight down. That's exactly what gold did over the last couple of days. I think silver's down eight or nine% in the last two days. Worst worst beating uh gold and silver has taken in in decades in in in terms of a couple days. I mean, it was going literally higher for months and months. I think what is gold up 50% this year or something? >> Uh it wasn't I don't think it was that much, but it's quite a bit. >> Let's look. There's a there's a tracker. Um, you can look at the GL GLD ETF. And let's go to year to date. 53%, sir. >> Really? >> Yep. Last five days down 2.7. Today was down 6 43%. And uh there's another one. There's SLV is another tracker. You can buy these outright. Um SLV is down 8% today. So year to date, silver is up 62%. And that's with the dropping it took uh over the last couple days. If it wasn't for that, the high here was 493. Another 9% 70%. Silver would have been up 70% this year. >> It's ridiculous. >> But do you see what I'm talking about that last bit of an exhaustive gap out? >> Yep. >> So kind of interesting. Um this is a couple things that are people like why why has it been happening? Well, let me tell you what's happening. First, you had the momentum. You clear momentum of let's buy gold. Then you had the fear factor. What the hell's Trump going to do? What's the world going to do? What's going to happen in the Middle East? What's going to happen in Ukraine? You know, all the old things around the world, right? Then you had the consideration of the dollar going down as we've talked about and then the Diwali in India where this is a big time of year where buying gold and silver on the dahandras this is the holiday within I guess the Diwali season um is considered highly auspicious right it symbolizes wealth prosperity it invokes blessings from uh the goddess Lakshmi Lakshmi Lak Laksh Lakshmi the deity of wealth um Lord Dahavantari who is the divine healer all these things go into this it's a big time for buying gold now also there's been a lot of buying of gold by the Chinese central bank like a lot so all this kind of ended up in this mad rush and all the excitement that finally exhausted itself talking about gold have they ever gone into the Fort Knox to look around take some photos to prove there's gold in there. I thought they were going to do that about 3, four, five months ago. What happened to that? >> Is it even necessary now that we don't have any backing of any of our currency or anything? We have, you know, the backing. >> No, they promise that we're going to do it. >> It's got to go. First of all, I don't know who's going to do it, but the only person I'm going to ask to do it. There's only one person that comes in mind to do this. >> You know who that is, right? >> Peter Schiff. >> Oh, that's an interesting one, too. No, I got somebody else. He um You know who it is. Once I say, "Oh, yeah. Yeah, yeah. This is the kind of guy that does these things. >> Oh, Heraldo River. >> Heraldo Riveras, >> right? It's perfect for it. >> Yeah, >> you can go in with Peter Schiff. >> Peter Schiff was on the show like two weeks ago. >> Yeah, you told me. >> It was good. Um, so anyway, all that's been going on. Interesting. Okay. You know, uh we like to look at things like phrases and new terminologies and new marketing kind of uh what would be the right word? What would be the word when you're trying to uh tantalize like an investor to do, you know, to hurt somebody? What would that be? That would be um uh >> propagandistic phrasiology. >> Yeah. Yeah. That's perfect. Perfect. Propagandistic phrasiology. if that that's what that's what that is. So there's a lot of phrases out there, right? You hear things that that irk me a lot like, "Oh, oh yeah, well, we got uh 47 million TAM." This whole total addressable market thing, right? >> Yeah, I like that one. T, you know, what's the TAM? What's the TAM? You get that all what's the TAM? Then you have uh Okay. Well, you know, how many gigawatts are you going to be buying in chips relating AI power consumption? And that would be, you know, the number all this kind of thing. Well, the latest one I heard I just heard it twice today again this morning. It's a new one, but at least for me, it's ready. >> Yeah. >> We have the right to win. >> The right to win. >> The right to win. >> How's that going to induce buying? >> Well, I'll tell you why. So you have a a CEO of a company that starts talking about um you know we have this product that product and we have the right to win because uh you know we have uh the the uh the best uh or they won't say it like that we have the right to win in this department in this sector in this area. So this I looked it up because it was kind of like really >> what does it mean? Does it mean that they have some sort of they're they're they're granted by a king or something a the right to win or or they're entitled. Is it entitlement kind of a concept? >> Yep. I think so. It's a business strategy concept. Uh this is right out of the book that refers to a company's ability to enter a competitive market with a high probability of success based on its unique advantages. It's not an automatic entitlement, but it's earned through a coherent strategy that aligns to a company's way of play. It strategy uh with its core capabilities and assets. >> Way of play. There's another one. Yeah, there's another one. The right to win. We have the right to win due to our way of play, >> brother. >> Right. So, who talked about this today? Uh today, this morning on uh CNBC, as I was having a little bagel fin for breakfast, um it was the CEO of the NASDAQ and the CEO of Goldman Sachs. Both in separate interviews use the same terminology. >> Huh. It's obviously going around. >> Yeah. So, we have the right to win. >> Well, we do too on this podcast. >> We have the right We have the right to win in the podcast space. >> Yep. Uh we talked about the super taco. That was the walk back of the 100% China tariffs. That was an extra super Taco Bell taco. Uh warnings. David Solomon, the CEO of Goldman Sachs, also talking uh recently in Italy, says he said a draw down was likely to his stock markets in the coming two years. Now, what do you think of that? >> Well, that's a that's a bold prediction. >> Bold going out on a limb, huh? He says, uh, relating to what we're seeing right now to the dot bubble, you're going to see a similar phenomenon here. I don't see it. I mean, I see this I see a similar bubble. I mean, there's a bubble, but not comp the.com thing was very screwy. >> Yeah, we the problem is that the probability of us doing the same thing again >> never happens. >> But it'll be something it'll be as something different entirely. >> Yeah. It's always some ne it never the same. That's what only reason people are interested in following it because it's always something different. It's and it it'll be different enough that it will, you know, people would be analyzing it in terms of what happened in the past saying, well, it's kind of like this, it's kind of like that, it's kind of like this. This reminds me of vintage wines and Bordeaux. Every time a good vintage comes out, they're trying to equate it with, well, it's kind of like a 29, but maybe it's a little more like a 45 or 61, maybe. you know, they're trying to place it in in a spot in history when it's there's nothing to you can't do it. >> And and and the funny thing is after the fact you look back and you're like, "Oh yeah, yeah, yeah, that was obvious." >> Yeah, that's like stagflation. >> It's obvious after the fact. So he said over the next 12 to 24 months we see a draw down with respect to equity markets. I think there will be a lot of capital that's deployed that will turn out to be uh nothing and will not deliver returns and when that happens people won't feel good. This really huh? >> Yes. This this this this this nugget of knowledge from the CEO of Goldman Sachs. And what does he make a year? Let's see. >> What does he make a year? >> We're going to find out. David. No, he's not doing his um DJ gig anymore, right? >> I hope not. >> No. Um he made in 2024 his comp package was 39 million. >> Oh, that's reasonable. >> He's got a base salary of 2 million, $8.3 million cash bonus, and the remainder in stock and incentives. In addition, he received a uh $80 million retention award conditional him staying with the company for five more years. How do you like that? Hey. Hey, hey, guys. >> There's an incentive that would keep him around. >> Yeah. Listen, do me a favor. You know, I I need you to stay for a while. I'm going to pay you an extra 80 million. All right. Okay. And then what happens? He says, "I'm leaving." They really want to keep him. And then he says, "You know what? That 80 million wasn't enough. Bump it to 120 and I'll stay." >> I don't know. >> Yeah. Yeah. That's what you do. >> What What What's uh That's David. He's like the athlete who rec, you know, he makes a does a great deal with his team and then within a year he's changing the contract. >> Interestingly enough, Jamie Diamond's 2024 compensation was what? 39 million. >> Ah, price fixing. >> Huh. He had a base salary of 1.5 million, 37.5 million in performance-based incentive compensation, $5 million cash bonus, and 32 million in performance share units. Not bad. Really? The same exact Yeah, the same amount. I want what he has, Daddy. >> Yeah, exactly. >> Oh, how come he's making more than me? >> Well, now Jamie Diamond is out with some warnings, too. He's talking about now he's talking about he's always has some flare, you know. He's got that what that New York, New Jersey kind of Long Islandish accent going on, right? This kind of a sloppy talking guy. >> Tough guy. >> Yeah. He talks about cockroaches related to the recent bankruptcies. You know, when there's one, there's probably more. We had the first BR brands group. These are the the the bankruptcy fraud situations I was mentioning earlier. >> Yeah. So this you got to can you get closer to your microphone? >> No, I can't really get much closer. I'm right on top of it. >> We lost you. Lost you. I mean, you're there, but it's very very faint. >> Nothing. I haven't changed anything. >> Let me check mine. >> Hello out there. >> Yeah, it was me. Actually, I don't know what happened. There you go. Talk. >> You bumped the knob, >> I guess. So, uh, I got so excited about the 39 mil. >> Uh, Jamie Diamond talking about cockroaches. We got First Brands Group, which is an auto parts supplier, which filed for bankruptcy with over 11 billion in liabilities. This is the company that did the invoice factoring, allegedly pledging the same receivables to multiple lenders. Then you gotricolor Holdings, which was a subprime auto lender, which is accused of fraudulently pledging risky loan portfolios to multiple banks. See that? That this is what freaked everybody out. We had that and we had one other thing. Yeah, they're all doing the same game. >> Why not? You got you got you got 12 year olds probably doing the uh you know fresh out of college doing >> that are 12-year-olds running an AI >> Yeah. Yeah. running it through an AI approval process for the loans. >> Yeah. You would think that a basic process of discovery for financing of your loans to see if there is an attached deal already to uh either your current finance, you know, current financials, current book of business, your invoices or or your AR, right? You you would think that would be step one, >> the first thing you check. Yes. And not only do you check it, you don't just say to the client, "Hey, by the way, uh, are we the only ones, you do some you do some All these things are registered. All these deals are somewhere signed somewhere. You have to look this stuff up, right?" >> Yeah. They're not all secret deals. >> Very sloppy. Very, very sloppy. So, zero dated options. we see these daily turnarounds especially on Fridays where by the end of the day things are getting pushed pretty well and the new studies are showing that zero date options push the end of the day uh is is a big player in that process. So on an index of like the S&P 500 where like 35% of the top 10 holdings is the makeup of of you know between Facebook or Meta uh Apple and Amazon and you you know you look at all uh Nvidia the the the top 10 positions the the the concentration of positions in the top holdings of the S&P 500 like 30 35% is the concentration. Can you imagine if those stocks go down? >> Be a nightmare. >> It's unbelievable. So, what you do is you you push up those names and then collect your your back end. You just, you know, buy that in because everybody wants to buy it and the funds just don't buy it and your banking just buys it and you buy the futures and all that and you have these zero date options and you get over the number and it's great. Friday 10:17, if you look back at that, great example of what happened there. Decliners outpaced advancers all day. Small cap is down, mega cap is up. They're pushing the big names to push the indices so that they can have the options on either the the index or the option on the stocks do well. the zero dates and as the day progressed the squeezing continued and you know 180 degrees on the Friday before just just rotated around and a lot of discussion is being held not not not discussion like well got to get rid of those that's not what I'm saying they're just like trying to figure out what kind of influence do these really have and what should we make of it because again the retail trade has become a very big powerful uh not a lobby but a a powerful uh you know um >> it's a variable. >> Yeah. >> Yeah. The retail guys in fact that's all if you ever watch Charles Payne's show >> making money >> on Fox Business one of the few shows that actually does concentrates on stock tips >> as opposed to Trump news. Um that's all he talks about. But the zero deal >> the retail guy the retail guy's running the show. >> Yeah. >> You see today, you see with Beyond Meat, that stock was dead in the water. We talked about this a couple weeks ago. Beyond Meats. >> Yeah, we did. >> It's up uh enormously, like 360% in the last three days. >> Unbelievable. >> It's at like four and a half dollars from like 50 cents. I think it was up 22% after the close as well. >> And what's the reason for this? Uh there's two reasons. So it was up 146% today, another 22% after hours. Last week it was at uh uh let's see, year to date the stock is up 22% just miraculously. On a 5-year basis, it's down Oh, no, that's not that's not right. I'm sorry. Year to date, it's down 6% still. On a a 5-year basis, it's down 97.89%. Uh what's the reason? Well, one thing is supposedly it was some Walmart deal, but the second thing was it was it was added to a meme stock basket ETF. >> Uh, meme stock. >> So, it kind of got a big, you know, kapow. >> How do we get to find out what these what's going to go in the meme stock basket before they put it in? which is a good question because on October 20th on Friday October 17th at the close okay this was 73%. So the question is um that was Friday. Today's Tuesday, right? So let's look here the 21st. That's today, right? The news is that it was included in Roundill's uh meme stock ETF. That that's that's the news. That's on the 21st. So yeah, 600% in three in three days. So So the point is who let the cat out of the bag on this one? >> Well, and you know it they're going to do that constantly. >> Is there is there some way you can see it in the chart? >> You Well, if something's moving like crazy, but then you know you going to play this thing up. >> Well, I mean, if you go back far enough, can you see the I mean, because you know, if somebody knows something in advance, it's going to go in the meme the meme uh stock pile. that somebody's going to be picking it up in advance. >> How is How is Beyond Meat down 97% a meme stock? What makes it that is is is a meme stock a piece of [ __ ] stock that should be dead in the water and bankrupt? Is that a meme stock? >> It seems to me >> maybe with a big short position. Who's who's shorting the stock? Well, we do know that if the stock's at 50 cents, it can still go to 25. >> Yeah, you can still make money. Yeah, >> but who's going to do that? Is anybody in their right mind going to do that? the the the the if the stock >> short at 50. >> The stock is down 97. >> You want to short it at a dollar. >> What I'm saying is the stock is down 97%. Isn't the general run over? >> I would think so. I would think the stock is over. >> Well, yeah. And that's a non-touch, right? >> Yeah. >> I don't know. >> Yeah. You'd stay away from it. You wouldn't even short it at at 25 50 cents or 25. >> No, it's too dangerous. >> Yeah, because it, you know, it's Yeah. Could any dead cat bounce, it's gonna wipe you out. >> I mean, this is probably shortable any second here. just like, by the way, you were totally right about Oracle, even though it's not showing up in the game numbers, but you know, Oracle is down 20% from that top move, that that big um capitulation short squeeze slash Oh my god, Open AI is going to pay us uh $300 billion trillions. >> Yeah, >> they were going to pay um was it $300 billion over 10 years or something like that. And and you called [ __ ] >> Yeah, I did call [ __ ] And we both said, you know, wait a minute, uh, OpenAI is coming up with, you know, all this wonderful money, yet they're losing money. How is this all happening? Then they came up with more money for somebody else. You know, it's the Oprah Winfrey, I'll give you a billion. I'll give you a billion. I'll give you a billion. And I think they caught on to this whole thing saying, you know, how many how many how many times over? Same thing. Same same again. >> Same as the bank scam. Same same as the bank scam. same as the producers. How many times can you give out money you don't have or the hope that you do have? And that's the same thing that's going on with the vendor financing. So Oracle got a nice boost. That was great, but it came right back down to earth. Not all the way, but a substantial amount, 20%. That's pretty good. GM on the other hand did really well. Interesting if you look at a comparison of GM and Ford. Pretty interesting to look at the two different stocks and the performance there. Ford is like stuck in a rut. GM is doing great. In fact, um symbol GM a whole a whole different a whole different um look of of this. So GM was up 15% today by the way. It's up >> for what? >> Well, they had earnings. I'll tell you that. Let me say something else before it's up it's up 80% in the last five years where Ford on the other hand in the last five years is up 50% but has come down and been pretty much stagnant since 2023. So GM um it it it had its best day in trading since 2020. Uh second best trading on the market since its 2009 emergence from bankruptcy. because they came in with adjusted earnings of $28080 per share when expectations were 50 cents lower at $2 and about 30% 30 uh revenue revenue blew it out. They had like $3 billion more in revenue. They they had uh 48.5 billion versus 45 billion. Their adjusted earnings before interest in taxes was 3.38 billion versus 2.7 billion. And they reduced their expected impact on the tariffs to between which still still not not nothing. It's not a small amount but between three and a half billion and four billion down from four to five billion. So um pretty pretty impressive numbers. And Mar was talking about all the you know the reasons why they're so great and so wonderful and all this stuff and probably they have the right to win. I guess probably uh >> the right to win. There you go. >> You know. Yeah. >> Uh and um it was a pretty it was a very first of all it's a very impressive quarter considering the fact that uh they're dismantling most of their EV production, refitting their factories, and I guess they have cars that people like these days that interest rates are really not that low and that the consumer >> trying to figure out what car that they're what what what they're selling that I would have any interest in uh at all. Let's see. >> I mean, pretty much this the this that Chrysler group has got the uh the minivan thing locked up. >> Uh >> Ford's got the pickup truck market, I think. >> No, the the Silverado and the Cement. >> You think the Silver the Silverado is doing better than the F-150? I thought it was the best truck best pickup truck you could buy. It's too big, by the way. >> Um let's see. F-150. Um, how many what do we say? F-150s in 2025. Uh, 620,000 units of uh, which is the best selling truck in line. Yeah. So, 620 units. 620,000 units where GM has sold 282,000 of the Chevy Silverado CMC Sea Sierra is about 166. So between the two the GMC Sier was probably the same kind of car, you know, they just repackage it. I don't know. I have to look at that. But um I don't know. It's also their um the Equinox 129,000. For whatever reason, they're selling selling. Ford can't get out of their way anyway. That's a different discussion. I agree with that. >> Number one bestselling vehicle in US is the F F-S series pickup truck. >> The best >> Yeah, Ford has got management problems. They've always had they have a certain kind of weird arrogance at the management level that is kind of hard to put your finger on what is why it's there. It reminds me from uh my experience of the old General Electric hacks or IBM >> years >> years gone by. Yeah, IBM to some extent, but the General Electric guys, the oldtimers that before, you know, the company got all busted up during the Jack Welch era. They had these guys. They thought they thought that their [ __ ] didn't stink. It was the most arrogant group of people I've ever run into. >> Yeah. Until they got rank what was it called? Rank uh rank filing. No, rank >> uh ranked stack stacked ranking. >> Stacked ranking. Yeah. Yeah, that that shut them all up. >> Yeah, that that'll do you in. >> So, pretty good. Now, on the other hand, we had some great numbers from GM. We talked about that. The number one selling car uh is um in America is the Ford F150. Then then it's the Chev the Chevy Silverado. >> Those are pickup trucks, >> right? Right. Those are number one. >> Does anybody buy cars anymore? They're just all Toyotas. >> I don't understand a pickup truck. I mean, I I I I it seems like a lot of wasted space for the the majority of time not being used. >> No, they're a part-time uh car, >> right? >> In my opinion. I don't know why people do drive them around all the time, but they're they're they're too big. They uh they don't navigate well. >> Well, we're in the minority here, though, obviously. Now, meanwhile, Ferrari posted their worst trading day ever last Thursday after the luxury car maker updated his full year and his 2030 guidance. >> 2030. So, they're a little ahead of their time, it seems. >> I'd say it's five years from now. >> Yeah. Uh, all of it short of expectations. um expected revenue of 7.1 billion euros this year, up from a previous forecast of more than 7 billion, but net revenue expected to be around 9 billion in 2030. I don't know how they could do this. >> Does it take him 5 years to build a car? >> I think they have a long cycle. >> Well, they obviously have a long cycle. The cars are more or less handbuilt. >> Yeah. So, there was something going on. They didn't like it. They took away the EV thing that there's a EV thing going on. There's like a lot of little >> That was idiotic. >> Yeah. Who wants a Ferrari that's an EV? >> That way it can be nice and quiet. >> So dumb. It's like, hey, you know what? I got a great Harley for you that doesn't make any noise. >> That's going to go over well. That's >> the point. >> Yeah. Uh quantum stocks. JP Morgan announced that it will invest up to $10 billion in 27 specific indices uh industries including quantum computing. And that that sent everything back up to the moon, up a few hundred% this year. The Regetti, the ion cube, uh quantum um bits. So, hey, big Apple news. Two things. Two things big. Uh first of all, Apple hit an alltime high this week. Yesterday was up big. That's what really jacked the uh the the Dow Jones yesterday. >> Yeah. Why? Well, because they said that iPhone series 17 outperformed its predecessor in early sales in China and in the United States. This was from a research firm counterpoint without material facts because remember Microsoft doesn't release I mean uh Apple doesn't release this information but they're saying the newer models outsold the iPhone 16 series by 14% during their first 10 days of availability in the two countries. Sales of the base model iPhone 17 nearly doubled in China compared to the iPhone 16 during the same period. Very, very, very big. Everybody's excited. We're making headways. They're buying us in China again, which I don't know. Weren't we supposed to not be selling to China? I don't know what's happening. But the fact is, I guess if you have dinner with President Trump, everything's good. Now, they also made another big announcement. This is kind of different. This this is I thought this was really interesting. uh Apple and Formula 1. I don't know if you're a Formula 1 fan. >> I'm I'm familiar with I have a an autographed cap from Schumacher. >> From Schumacher. >> Well, see, you don't you're not a Formula 1 guy. >> Clearly not. But >> Schumacher was the the I think he's German. He was one of the winningest uh Formula 1 guys in history. >> In what year? >> Retired some time ago. >> Oh, yeah. was a while ago. Well, if you want to watch Formula 1 F1 racing starting soon, >> which is kind of boring to watch in my opinion. >> Well, it's better than You know what I heard is really boring? My friends went to the F1 when Miami. It's right down the road here. That's uh if you don't have the First of all, getting in there is difficult. You really can't get out. It's loud, which is part of the deal. But all you see is zip zip. That's it. >> Yeah. No, you just car zipping by. Um, Apple and F1 racing, uh, Formula For Formula 1 announced that, uh, F1 races will be exclusively shown on Apple TV in the United States beginning next year. What do you think of that? >> Yeah, boy. I'm going to Yeah, let me sign up. That's not interested. >> That's a 5-year deal. I thought that was fascinating that you will not be able to watch F1 racing. You can't anyway. >> Well, well, yeah. Okay, but I'm saying if you wanted to somehow do that. So, the partnership builds on Apple's deepening relationship with the Formula 1 following the global success of the Apple original films adrenaline fueled blockbuster, which is the highest grossing sports movie of all time. F1 the movie. Highest grossing sports movie of all time. I was looking up some other sports uh movies. They didn't come close. Do you know what this You know what the second highest uh sports related, you know, sports movie of all time was? >> What? >> The Blind Side. >> Never heard of it. >> What are you talking about? What a great movie. >> Never heard of it. >> It was a story about this guy who I don't want to say learning disabilities. It wasn't that. He was, you know, he was a guy that had to get through college and he was kind of big big by you know, like a refrigerator Perry, big guy. Big dude. Um was he at Ohio or where was he? I forgot what school he was at. Anyway, um and and and long story short, he was playing offensive line and he wasn't do getting it was just a whole thing. And then somebody said he was very fond of of his mother and this other woman and um they gave him a a prompt said protect the quarterback like you were protecting me. And that was that. >> And it was a whole just a beautiful story. >> Um brother, >> it was a great story. It was a great story. The blind side. Then you have like they put like a Happy Gilmore in there. Two two of the highest uh two of the highest others are Adam Sandler movies. I think the Sand Sand the the Water Boy or something. >> Yeah. And those would be determined even though they're just flatout comedies. Yeah. Because they had a sports angle quote unquote sports movie. >> Rocky Rocky. >> Rocky I would say was kind of >> Jerry McGuire was definitely a sports movie. >> Yeah. Longest yard. How about The Longest Yard? >> Yeah, I saw that. >> Right. How about How about one of my favorites of all time? >> Field of Dreams or The Sandlot? >> Well, I never saw The Sandlot, but Field of Dreams, of course, is a classic. >> Yeah. So, there you go. Uh, robbery. Robbery. Woo. Get out the uh the police. Uh, you can hear the way that you know those uh uh European police cars different than ours. You know how they make the different sound. >> Thieves broke into Paris's Lou Museum on Sunday, >> using a crane to smash an upstairs window, then stealing priceless objects from an area that houses the French crown jewels before escaping on motorbikes. This is like This is like a uh uh uh uh um Tom Cruz movie. >> More like the Thomas Crown affair. >> Thomas Crown affair. Uh the robbery or or the one with um uh Sean Connory, one of those. Anyway, the robbery raises awkward questions about the security at the museum where officials already sounded the alarm. Sounded all like him. Nothing. Little nothing. >> Got to keep a or maybe it sound Does that sound more like what's his name? the I think I have the same the same sounding voice as I imitate Sean Connory and uh what's his name from you know from the Senate. >> Oh you know you do that one well Mitch McConnell. >> Yeah Mitch McConnell here. Um anyway officials had already sounded the alarm about lack of investment at a world famous site everybody accept the whole thing. They say that the robbery was either commissioned by a collector, which is good news because in which case there's a chance of recovering the pieces in good state or undertaken by thieves interested only in the valuable jewels and precious metals. First of all, you got to break this stuff up, right? You got to bring this to a chop shop. >> You're not selling, you're not like going to walk into a hey, >> the guys in the group might be a chop shop guy, >> right? Because you're not going to you're not going to it's not going to be like uh on eBay available today is the crown jewels. little furnace and melt down the crown. And then you got the jewels will float to the top. You pull those out and scrape off the the metal and you got the raw stones for sale and a and a big uh pot full of silver or whatever it is. Gold, pot of gold, pot of silver, pot of platinum. >> Yep. Yep. >> You sell that by the ounce. >> Yep. Let's see what else we got here. Booze. Exports of US spirits fell 9% in the second quarter according to a report by the distilled spirits council of the United States. They war that trade tensions were hitting demand in key markets. Here, listen to this. This is fascinating. The decline marked a sharp reversal from 2024's strong export performance with steep drops across major markets including European Union, Canada, Britain, Japan, which together represent 70% of total exports by value. Canada saw the most dramatic fall with US spirits exports plummeting 85%. >> No, that's because they're boycotting. >> All right, I'm just saying they they have the right to do that. If we're messing with them, they can mess with us, right? >> They can do whatever they want. >> But, you know, there are people up there that like drinking uh bourbon as opposed to the Canadian whiskey, which is >> a good product, but it's kind of bland by comparison. >> What's the Canadian whiskey? Uh C CNC CN >> there's a bunch of them a Canadian club uh >> this is one of the big ones. Uh isn't uh oh I I should know a half of them on Black Velvet's a good example. That's a Canadian uh whiskey. >> I I prefer not to you know Crown Royal. >> Crown Royal big time big shot. Big big one. >> That I mean that's a good one. >> Yeah they're all good because Canadian whiskey is really good. But it's semi neutral tasting compared to, you know, a nice bourbon. >> Yeah. Yeah. So, >> it's like comparing French brandy to to army. >> Oh, something that I don't do very often. >> That's the comparison I make. >> Oh, you'll have to tell me about that one day. Exports to the EU, the largest market, dropped 12%. Shipments to Britain fell 29%. Japan decreased 23%. So, not so good. Yeah, but the stuff doesn't go bad. >> No, of course not. >> So, it's a little different than an agricultural product and they can just get it increases in value over time. So, it's quite possible could be a windfall down the road. >> Down the road. Open AAI following up on the vendor financing and circular financing. Openai has disclosed a trillion dollars of commitments pretty much over the next 10 years. Signed a deal with AMD. Did you see this deal? signed a deal with AMD since the last time we spoke. >> Stock spiked 40% plus. >> Yeah, I know that was a missed opportunity. >> Well, we had the short on the game that was stopped out. As part of this arrangement, AMD issued a warrant that gives OpenAI the ability to buy up to 160 million shares of the AMD for 1 cent each. 1 cent each. Why wouldn't they do that? Why shouldn't they do that? Why wouldn't you do that? >> Yeah, you tell me. I I'm gonna buy warrants of 160 million. So, let me just let me just clearly understand this for a second here. You're telling me that I can if I decide to do so for some reason. I don't know why I'm going to be able to if I meet there certain milestones that has to happen, right? But assuming that uh OpenAI gets there because they want to be able to buy this at 1 cent each. So, it's eventually an incentive or rebate program. You're going to give away like 10% of the company or whatever the number is. for like nothing. Again, what they're doing is they're turning this is once again the same crap. They're turning balance sheet >> I agree. This is a a borderline scam, >> right? They're turning the they're turning balance sheet assets. So, just to make sure everybody's totally clear on this once and for all, it's like me taking money out of my bank account and somehow giving it to myself through I give it to you, but you give it back to me. And I say I take a million dollars from my bank account. I give it to you. You give it back to me for whatever, right? And I say, well, I made a million dollars. Oh, okay. Yeah, I see. I Yeah, but not really. But by doing so, it makes my business look that much more valuable. So instead of I'm just picking numbers out of the blue here, right? A business that's worth, you know, a widget business is worth 10 million. You just gave me another million dollars of revenue. Now I go, whoa, we multiply that up, it's worth another$8 million. Now my business is worth $18 million. And what did it cost me? It cost me a million dollars from my bank account. >> Yeah, >> great deal. So something to think about. >> Well, this can't go on forever. >> Nope. Um, so with with that, I'd like to mention that uh you all have the right to win. You should have the right to win. And one of the ways you do that is by helping other people win. One of the ways you do that is going over to DH Unplugged. You can check out all the things that we have there. But one of the things that's really important to understand is we have a special magical right to win button. It's yellow. It says the word donate. We don't want to, you know, be obnoxious about it and say that, you know, click this button, you'll have the right to win. But you do. You have the right to win. Go over to DHM plug, click that button. If you haven't done so so far, seriously, shame on you. Got to shame you in the in the in the parlance of no agenda. By doing so, I think you get what's what do they what do you call it on your show with Adam Curry and John T'vorak on Thursdays and Sundays when someone gives finally gives money and they they they go and they help out the show. It's called a what? >> Producership. >> I think it's called a ddouching. >> Oh, you get a douching. Yeah, you do get a >> Well, only if you're a douche, >> right? So, >> which means you never donated before. >> That's what I'm saying. That's what I'm saying. Yep. So, just consider that now. >> Start doing that. Uh let's talk about Can we talk about the close to the pin for a second? >> Yeah, I'd like to talk about it. >> So, Lithium America finished uh at uh $6.79% 79. The masses entirely average price, everybody's average price when we put it all together was $6.99. Not so bad. Pretty good. Neil L won this competition seven cents away. 1.17%. So, we're sending him a nice brand new really cool shirt, an SPF uh shirt that's uh that's uh sun sunshirt with long sleeves, white with a nice DHM plug. You've seen it. It's fabulous. So, he's getting >> Has he won before? I don't think so. >> I don't think so. I thought it I thought it was somebody at first. Um some of some of our favorite names were close to the top of the list again, you know, top eight or top 10. is the thatched roof guy. >> He was like top eight. Yep. >> Yeah. He's always there. >> Yeah. Yeah. I should have visited him. I was in London last week, too. >> Oh, yeah. Well, he's probably out in the country. So, there's some some towns out in the middle of nowhere that just all thatched roofs. >> I went out there with a friend of mine once and we're driving around the one of the main towns is Got out and take some pictures surrounded by police. >> Oh, really? >> Yeah. We put our hands against the car. We're patted down. What are you guys doing here? >> It turned out to be the town that one of the it's either the prime minister or the one of the big shots in the government stayed there and they thought they were I guess had some terrorist threats and the guy I was with he had this beard kind of looked like a terrorist so you know they checked us out and sent us on our way. >> Oh there you go. All right let's get over to the game. This is a game that we play. It's not a solicitation to buy or sell any security. It's not a recommendation of any kind. Nothing on the show should be considered investment advice or a recommendation. If you choose to invest in any of the stocks mentioned, you should know that it may carry risk along with the risk of a loss of principle. You should also seek out professional financial advice for your particular situation. We assume no risk as these are not to be considered recommendations. Horowitz accompanied myself or John Cavor may invest in any of the securities mentioned and will disclose that on the website under the weekly stock pick section. You can go to dhunplug.com and see all the names we discussed in the segment along with the performance information from the date discussed as well as any additional important disclosures. A couple couple of notes on this. We'll go through this maybe quickly because we're running out of time, but uh some of the names like for example um got few a number of things got kicked off but um Viking Therapeutics. >> A lot kicked off. >> Yeah. But Viking Therapeutics would have been up big now. >> I think it's at 30. Got kicked off at 24. Um, there was another one. I think it was I think it was maybe I don't know if it was Lumis. There was some other Oh, uh Oh, Oracle. Oracle. So, Oracle got kicked off at $311, right? >> Yeah. >> And currently it's trading at $275. >> Yeah. It would have been way up. >> So, there's some some good names on here. Some really good picks by you, by the way, that if they would have stayed on, it would look I mean, they don't look good. >> Yeah. I'm ahead of my time. >> Yeah. A Yes. a Renaissance man. So, you have any you have any picks for this week? >> No, not really. There's a few things I'm looking at, but I'm I I'll put them off till next show. >> Yeah, I'm I'm there. There there are a bunch of earnings happening. Netflix came out. I think the stock was down, if I'm not mistaken. Uh Netflix Oh, I didn't You know what? We had this So, Netflix actually missed on their earnings and but beat. I know it sounds weird, but what they did was they were down 6 and a half% down 80 bucks after hours um on this this miss. But the problem is that one of the misses may the miss the miss may have been this lawsuit that they had that wasn't anticipated that's being put in and if they didn't do so they would have had it better. But the big thing that I saw in Netflix was even with that and even with the margin change due to that the margins are going to contract another 5% 500 basis points >> into the next quarter. They're they're giving upside guidance but their margins are shrinking. So something's a little out of whack with the whole thing. >> And I think investors saw that big draw down. Don't forget that last quarter um after their earnings there was a bit of a draw down >> and uh you know this stock was 855 back in April then it rose all the way up to about 1350 in June and then after that it came all the way down to about you know another 200 something points down um and then it's been level since then it hasn't moved since it's been basically you know between trading at about you know to high of about 1263 narrow range it's been, but I think that the big issue year to date this is um up 40%. And the question is how much more gusto and growth does it have really with the numbers it's showing. So, and and I don't think they're really breaking out a lot of their viewership anyway anymore. So, I think people are kind of like taking a look at this and saying, "Uh, maybe not." >> Yeah, I think you're right. >> Yep. >> I don't go to Netflix hardly any. >> I mean, I go to here and there. There's definitely some good movies on there and >> yeah, >> it's easy enough and they have the best interface. >> Expensive and >> yeah, >> you know, they're always checking you. Ah, you know, somebody else is using the account or >> that's a problem. >> There's one thing or another. >> All right. Well, let's uh let's call it and uh see you again next week. >> All right. See you then. >> All right. Bye. >> You've been listening in on a conversation with John C. D'vorak and Andrew Horowitz. Hope to be with you again soon. Bye-bye. >> Now, I'm not broke, but badly bent. I'm not down to my last scent cuz I got a dollar but it's my last dollar bill. Yes, sir. In my pocket there's a dent. All my dough is nearly spent but I got a dollar and it's my last dollar bill. Oh, I'd love just one more buck fortune left me by chance. Now here's a hint. I feel like a men. You can hardly tell by a glance. I don't care. No millionaire can give me the Isis stack cuz I got a dollar. My last dollar bill. >> This podcast is intended forformational purposes only and does not constitute personalized investment advice. Investing involves risk, including the possible loss of principle and past performance, is not indicative of future results. The views and opinions expressed are those of the hosts and the guests and may not necessarily reflect those of Horowis Company, Inc., an investment advisor registered with the US Securities and Exchange Commission. Registration with the SEC does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Horowits Company is properly registered or is excluded from registration requirements. Any mention of thirdparty companies, products, or services is provided forformational purposes only and does not constitute an endorsement. Hypothetical scenarios or forward-looking statements are for illustrated purposes only and should be viewed only as that and not as guarantees. Content is intended for US residents only and may not be applicable in other jurisdictions. Listeners should consult a qualified financial adviser before making any investment decision. Please visit our website for additional information, disclosures, as well as a copy of our form CRS.
DHUnplugged #774: Right to Win
Summary
Transcript
Hello and welcome to D'vorak Horowitz Unplugged, an hour-long discussion of activity in the financial markets around the world featuring columnist John C. D'vorak and money manager Andrew Horowitz. This conversation is casual and unrehearsed. Let's join John and Andrew now. >> I'm John Cavorak. >> And I'm Andrew Horowitz. >> And it's the 21st of October. Where you been the last two weeks? Uh, I've been around. >> I haven't I didn't send you any pictures. I didn't even tell you where I was. >> You did send me a picture. >> I did send you one. Maybe >> you were in Tuscanyany. >> Yeah. Yeah. Yeah. It was nice. It was nice. I mean, I was in Turkey for a little while. >> Uh, >> oh, you went to Turkey. >> Turkey, Istanbul, which everybody smokes. Everybody smokes during dinner. >> They smoke a lot. >> Then went to uh Capedokia. >> Turkish tobacco, as a matter of fact. >> Yeah. They they they one hand they have the fork, the other hand they have a cigarette. >> Wait, you went to Istanbul? Did you buy a rug? >> I didn't buy a rug. I didn't buy veneers. And I didn't get hair implants. >> Wow. >> That seems to be the thing. >> How do you I don't know about that, but I don't know how you got out of Turkey without buying a rug for two. >> Yeah. >> Uh they tried. They tried, but I'm like, "No, that's not happening." And then uh went to Capidokia for hot air ballooning which we were winded out. The wind was over 10 miles an hour so they canceled it. But I did go to and I'll tell you offline another time. One of the most amazing cooking courses I've ever done or classes. Very cool. Started with uh >> where >> in Capidokia. It was a uh >> I keep wanting to say Gonzite every time you say that. >> It it was very cool. It was a farm to table kind of thing. It was very unexpected. Um, it was very old school. It was just very a lot of fun. >> What did they teach you to cook? uh made uh like this millet and this rice with all these different ingredients and stuffed all our own fresh vegetables and then made uh I think it's called dolma or no dolma dolma with the the grape leaves that we rolled up with the fresh grape leaves that we picked and then they they blanched and then we rolled those um with some of the rice and then with all sorts of other uh tomato sauces and then put that on like a big smoky fire and then we made this other beef dish and then we made um I made oh with uh they made grape molasses. The guy was stomping the grapes, cooking the grapes, and made this grape molasses. And we used uh kind of a rue, what they called something differently. And we made this like well grape molasses candy. >> Oh, that's interesting. >> Yeah, it was it was a lot of fun. Good fun. Good clean fun. So, >> except for the toes. >> Yeah, exactly. Well, he was using boots, actually. It was a kind of he had these um worse firefighter kind of boots on or something. I wanted to uh dedicate if I we don't we haven't done this before but I thought this was a little bit special. Um I want to dedicate this episode of our show to uh Sophia Maria, someone who is uh very special to us. Uh good friend of the family. Uh my good friend's daughter passed away last week very unexpectedly. Uh a weird health situation, too young, 20 years old and um it was a very sad thing. So, I thought we'd dedicate this show to her today. >> Sounds good to me. >> So, all right, warm up. We have a new crisis brewing. The banking sector once again is at it. Three different fraud, bankruptcies, weird stuff that happened within not a particular bank, but to a particular bank. And that raised the alarm and the flags and the everybody was all upset for about a day uh about this because like, oh my god, you know, uh the three in a row and Jamie Diamond is talking about things. We have some notes on that. Well, it seems that there was some hanky panky going on with some of these companies like overselling their account receivable. So, what they would do is they'd factor their account receivable. They're like, "Okay, we have a million dollars coming in, but we need to buy some stuff." So, what they do is they factor it out and basically pledge their accounts receivable to a bank, and that bank will give them money ahead of time. That's all fine and good except when you do it five times. >> Yeah. Yeah. You're only supposed to do it once. >> Yeah. It It's like the movie or the play The Producers. >> Remember that one? >> That's what you do. Yeah. >> Do you remember the show or the I saw it with Nathan Lane, but do you remember the And uh and uh Matthew Broadick. Do you remember or not? No, that wasn't it. Was that Were they in the show? Was Matthew Broadick in the show? >> I think he might have been. Yeah. The movie was Zuro Mustell and uh uh the the the the comedian guy, I can't remember his name right off hand. Do >> you remember? Do you remember it was >> Jean Wilder? No. >> Wilder. Gene Wilder. >> Do you remember? I don't remember that. And then there was a remake of the movie, too. Do you remember? >> No. The first movie is the best one of the group. Do you remember the uh the Broadway play musical? The name of the musical that they used to sell the shows to the old ladies. >> Yeah. Springtime to for Hitler. >> Springtime for Hitler. Springtime for Hitler and Germany. That was a It was supposed to be a flop and everybody would get lose their money. Well, I don't know if that situation was similar, but maybe somebody got the idea for that for what was going on in the auto parts industry and uh that was one and there was two others that happened all rapid fire and you know billions of dollars disappeared. So now all of a sudden the alarms are ringing that are we seeing too much of a push for either private equity for credit or private credit I should say uh private equity firms doing private credit and just trying to find stuff and doesn't matter about the underwriting and banks getting sloppy with their underwriting. That's kind of what the whole theme was of this one or two day freakout and everybody's like, "No, you know, >> it's basically criminal activity." >> Yeah. And it's already forgotten. The news cycle is so fast and the cycle in the investment world is so fast right now that literally things happen uh within minutes of the news item and recover within a day. This happened also two weeks ago or a week and a half ago on a Friday when President Trump whether he had some horrible gas maybe from a bad Mexican meal or something was aggravated and somehow lashed out at China on a Friday afternoon saying you know what by God we are going to uh put a 100% tariff on them because they're you know curbing exports of their rare earth materials. markets freaked out. >> Yeah. >> Well, a day later, JD Vance came in and he walked it back saying something like, you know, don't you know this is a negotiation tactic? Which is the equivalent of you and I playing no limit holdem and me pushing all in and then saying, you know, by the way, John, I just want to let you know that's a bluff. >> Yeah. >> Dumbest negotiation process I've ever seen. And then uh yeah and then and then you know then a day later before the of course before the futures opened on Monday President Trump coming out and saying you know what everything's going to be fine. >> President Xi you know Xi and I are very good friends don't worry about it everything's going to be fine. So markets rallied dramatically that Monday and and even today there was conversation by Trump saying you know um I think uh you know we we're going to make some something like we're going to make good progress but I don't think we're going to have a meeting like wait you have to have a meeting this is the whole point of it right you know the we're going to make good progress the meeting was a big meeting they're going to be a meeting right we're we're going to do this meeting but you know I think we're going to make good progress and things will be fine you know after the meeting but I don't think we're going to have a meeting like How does that how does that work? So markets are getting played pretty well and investors are just taking it in stride. They were in sideways mode pretty much since the last month or so probably the last month until maybe yesterday. Then they not I don't think all but the Dow broke out particularly because of Apple. We have some news about that. Um, and we have an announcement of the winner of the close to the pin for Lithium America Corporation. And by golly, they got it pretty close considering especially how volatile this thing was or is. >> Yeah, pretty amazing. >> Yep. Yields are dropping. Uh, we're finally seeing seeing what was hoped for with the idea that the Fed was going to reduce rates, but it's actually happening due to other reasons. the rates are coming down with the dollar again and uh ahead of uh some structural let's say weakness that's being seen now some things we can't see remember because the unemployment rate for example the government's shut down we can't get the reports how convenient >> yeah very convenient >> yeah we don't know what's happening we could have a 9% unemployment rate right now we wouldn't even Yeah, obviously that's a stretch, but point is that uh ma you know most of the major uh governmentalbased statistics you're not going to get those reports and then whatever you get it doesn't matter at that point by the time you get it because it'll be the next one will be coming out already. And now the Fed made a recent move also the Fed keeps on working it seems though government shut down but the Fed keeps working. the uh maybe they're on furlowed to a degree on pay also or probably not. They're probably exempt. Oh, they're not a government agency now that I think about it, right? But they're on the payroll. >> Yeah, the banks are supposed to pay their pay their salaries. >> The Fed stop talked about stopping quantitative tightening. If you remember, we amassed an incredible amount of debt since what year? I don't know. two 2008 >> 2008. >> Yeah. 2008 78. And then and then we we hockey stick it in 2020. And the idea was, you know, before 2020 was, hey, we're going to make progress. We're going to start taking down our debt, you know, because it's horrible debt and the debt to GDP ratios and our our our costs to for the for the debt servicing are so high and it's, you know, breaking the back of the country and blah blah blah blah. Okay. And then 2020 comes along, goes crazy again, and then we started, oh, you know what? We're going to start bringing it down again. the Fed is going to, you know, the Fed's going to get now. Now the numbers are ridiculous, right? Um >> Yeah. Once they start to they got they got a power hungry. You you're it's giving you they got like two control levers that they never had before. >> Yeah. Right. >> And they're [ __ ] around with them. Let's see what happens if we do this. >> Yeah. Which is interesting because as soon as they talked about the quantitative tightening being stopped, in other words, they weren't what they were doing was allowing for the bonds to roll off so that upon maturity, the bonds would no longer be renewed, thereby reducing the amount of debt that they had outstanding. Right. >> Yeah. >> So, they said, "We're not going to do this." Starting last week, they said, "We're not going to do this anymore." I'm thinking, "Wait, wait, wait, wait, wait. Let's think of what that means. That means that they not may not be adding debt." Please explain. >> Yeah. Well, what that means is that that they're not going to be reducing the debt anymore. They're in fact going to keep it steady, rebying. Once again, they're actually going into you're either qu one of two modes. You're in quantitative tightening or you're in quantitative easing. Those are the two words, two two modes. Not doing anything. Keeping it at the same level is actually the mode of quantitative easing because you're buying bonds. You're buying them as they mature. So that's that that's a that's a favorable stimulative activity versus quantitative tightening which is actually pulling money out of the system. So either keeping the debt at the same level or increasing the debt are both stimulative. One is more stimulative than the other but still stimulative. So that's uh something what why why all of this why why all of a sudden we're reducing rates by a quarter percent and maybe another one in in the next uh meeting. Uh who knows? Not that we have the data to know what to do anyway, but whatever they're going to do. And at the same time, you know, all of a sudden they want to keep money in in the system by continuing with the quantitative easing cycle. Going back to quantitative easing cycle, >> I'm reminded of a story that uh my old roommate had a girlfriend who was a nurse and she told this story about how nurses on the night shift when they came in all these patients that were especially in the more critical wards, they crank the oxygen up to every one of them to the max. >> Really? Oh. And then because they know they'd get through the night with all this fresh air, fresh oxygen, pure oxygen, then they'd cut it back before the shift was over and they give it back to the person that came in for the day shift. This is kind of what we're talking about here. >> Cranking the oxygen up. >> Yep. Yep. Yep. >> So the economy doesn't die. >> Yeah. Right. Right. Right. The life support is being reinstated. Right. It's or or look at it differently, it's the heroin is being reintroduced to the the drug addict. Just when you thought it was safe to take him off and they were healing and they were getting beyond it in the rehab. No, you put it right back on. You know what? Maybe needs John needs a little more juice. We're never We're never going to get off this. So, the only thing that we can possibly do is try to extinguish the debt through a variety of mechanisms like taking the dollar down. Now, this is something that actually came in as a question, and I'm going to weave it into this right now. Um, something a listener wrote in and said, "Could you explain what the Mara lo the Mara Lago accord is?" The Mara Lago accord. There was something like this a number of years before in a similar action and, you know, they named it something. Um a and uh this phrase was coined by uh US money market wizard and previous credit Swiss strategist Zultan Pner. Posar, Posar, Posar, Zultan, Posar back in 2024 as an um the idea that we can force countries to accept a weaker dollar and lower interest rates on their US Treasury investments in order to still be protective protected by the US security. So, it's like, hey, that's your payment. You want big daddy to protect you, you're gonna have to pay up. How you going to do it? All right. You know how you're going to do it? You're going to borrow money. You know, we're going to we're going to do it at a lower um dollar value and lower interest rates on the US Treasury investments. And uh you know, that's how it's going to work. You know, you take these deals, you borrow money uh or you know, you pay us for the not borrow pay us for our bonds, but you know, we're only going to pay you like 2%. Wait a minute. Wait, the going rate's 4%. Yeah, but too bad. You want us to uh have those, you know, F-15s flying overhead? you want us to patrol your waters or in this day and age, you want us to shoot you out of the waters if you're in the Caribbean, uh, you're going to have to accept that. And and that was kind of this discussion of how things may operate. And what's interesting is that's kind of happening. We're seeing this happen in real time over the last number of months. One of the reasons that a lot of people are suggesting that the dollar has been coming down so substantially is because it's being pressured that way. that will in turn help extinguish the debt by uh inflation inflating out uh the value of the bonds or you know deflating out the the the >> yeah you pay back pay back the debt with cheaper money >> right so something to think about and and that could be why we're seeing you know on what are we on uh US government shutdown day 1920 21 something like that right >> fourth week I think >> yeah and that's why gold Gold, gold, gold. I love gold taking a walloping over the last couple days, but it was hit a new high just like three days ago. >> Yeah, it's skyrocketing. >> Silver on fire. Platinum going crazy. That that last move >> called the platinum thing. >> Yeah, that last like I still can't get platinum. I tried to get platinum at Costco. I couldn't get it. >> Get a bar. It's like 2,400 bucks for a bar. >> Yeah, because silver's up to 50 bucks, which is really high. I mean, silver tra traditionally is around I don't know 38 bucks. >> Yeah, I think it popped to what 52 or 53. >> 50 some. Yeah, 50 plus. That last little move there with gold and silver. This is a good lesson because that last move on gold and silver, they're they're called um like exhaustion breakouts. They're called, you know, uh, exhaustion level kinds of moves where, um, think of, think of an airplane, you know, it goes up, it goes up, it goes up, and all of a sudden you start getting more vertical, right? You're going now, now you're straight up. What happened? Stall speed happens, right? Think of that chart of gold. The plane is is gaining altitude for a long time. That last burst, it goes vertical and it stalls and then it just starts coming right back straight down. That's exactly what gold did over the last couple of days. I think silver's down eight or nine% in the last two days. Worst worst beating uh gold and silver has taken in in decades in in in terms of a couple days. I mean, it was going literally higher for months and months. I think what is gold up 50% this year or something? >> Uh it wasn't I don't think it was that much, but it's quite a bit. >> Let's look. There's a there's a tracker. Um, you can look at the GL GLD ETF. And let's go to year to date. 53%, sir. >> Really? >> Yep. Last five days down 2.7. Today was down 6 43%. And uh there's another one. There's SLV is another tracker. You can buy these outright. Um SLV is down 8% today. So year to date, silver is up 62%. And that's with the dropping it took uh over the last couple days. If it wasn't for that, the high here was 493. Another 9% 70%. Silver would have been up 70% this year. >> It's ridiculous. >> But do you see what I'm talking about that last bit of an exhaustive gap out? >> Yep. >> So kind of interesting. Um this is a couple things that are people like why why has it been happening? Well, let me tell you what's happening. First, you had the momentum. You clear momentum of let's buy gold. Then you had the fear factor. What the hell's Trump going to do? What's the world going to do? What's going to happen in the Middle East? What's going to happen in Ukraine? You know, all the old things around the world, right? Then you had the consideration of the dollar going down as we've talked about and then the Diwali in India where this is a big time of year where buying gold and silver on the dahandras this is the holiday within I guess the Diwali season um is considered highly auspicious right it symbolizes wealth prosperity it invokes blessings from uh the goddess Lakshmi Lakshmi Lak Laksh Lakshmi the deity of wealth um Lord Dahavantari who is the divine healer all these things go into this it's a big time for buying gold now also there's been a lot of buying of gold by the Chinese central bank like a lot so all this kind of ended up in this mad rush and all the excitement that finally exhausted itself talking about gold have they ever gone into the Fort Knox to look around take some photos to prove there's gold in there. I thought they were going to do that about 3, four, five months ago. What happened to that? >> Is it even necessary now that we don't have any backing of any of our currency or anything? We have, you know, the backing. >> No, they promise that we're going to do it. >> It's got to go. First of all, I don't know who's going to do it, but the only person I'm going to ask to do it. There's only one person that comes in mind to do this. >> You know who that is, right? >> Peter Schiff. >> Oh, that's an interesting one, too. No, I got somebody else. He um You know who it is. Once I say, "Oh, yeah. Yeah, yeah. This is the kind of guy that does these things. >> Oh, Heraldo River. >> Heraldo Riveras, >> right? It's perfect for it. >> Yeah, >> you can go in with Peter Schiff. >> Peter Schiff was on the show like two weeks ago. >> Yeah, you told me. >> It was good. Um, so anyway, all that's been going on. Interesting. Okay. You know, uh we like to look at things like phrases and new terminologies and new marketing kind of uh what would be the right word? What would be the word when you're trying to uh tantalize like an investor to do, you know, to hurt somebody? What would that be? That would be um uh >> propagandistic phrasiology. >> Yeah. Yeah. That's perfect. Perfect. Propagandistic phrasiology. if that that's what that's what that is. So there's a lot of phrases out there, right? You hear things that that irk me a lot like, "Oh, oh yeah, well, we got uh 47 million TAM." This whole total addressable market thing, right? >> Yeah, I like that one. T, you know, what's the TAM? What's the TAM? You get that all what's the TAM? Then you have uh Okay. Well, you know, how many gigawatts are you going to be buying in chips relating AI power consumption? And that would be, you know, the number all this kind of thing. Well, the latest one I heard I just heard it twice today again this morning. It's a new one, but at least for me, it's ready. >> Yeah. >> We have the right to win. >> The right to win. >> The right to win. >> How's that going to induce buying? >> Well, I'll tell you why. So you have a a CEO of a company that starts talking about um you know we have this product that product and we have the right to win because uh you know we have uh the the uh the best uh or they won't say it like that we have the right to win in this department in this sector in this area. So this I looked it up because it was kind of like really >> what does it mean? Does it mean that they have some sort of they're they're they're granted by a king or something a the right to win or or they're entitled. Is it entitlement kind of a concept? >> Yep. I think so. It's a business strategy concept. Uh this is right out of the book that refers to a company's ability to enter a competitive market with a high probability of success based on its unique advantages. It's not an automatic entitlement, but it's earned through a coherent strategy that aligns to a company's way of play. It strategy uh with its core capabilities and assets. >> Way of play. There's another one. Yeah, there's another one. The right to win. We have the right to win due to our way of play, >> brother. >> Right. So, who talked about this today? Uh today, this morning on uh CNBC, as I was having a little bagel fin for breakfast, um it was the CEO of the NASDAQ and the CEO of Goldman Sachs. Both in separate interviews use the same terminology. >> Huh. It's obviously going around. >> Yeah. So, we have the right to win. >> Well, we do too on this podcast. >> We have the right We have the right to win in the podcast space. >> Yep. Uh we talked about the super taco. That was the walk back of the 100% China tariffs. That was an extra super Taco Bell taco. Uh warnings. David Solomon, the CEO of Goldman Sachs, also talking uh recently in Italy, says he said a draw down was likely to his stock markets in the coming two years. Now, what do you think of that? >> Well, that's a that's a bold prediction. >> Bold going out on a limb, huh? He says, uh, relating to what we're seeing right now to the dot bubble, you're going to see a similar phenomenon here. I don't see it. I mean, I see this I see a similar bubble. I mean, there's a bubble, but not comp the.com thing was very screwy. >> Yeah, we the problem is that the probability of us doing the same thing again >> never happens. >> But it'll be something it'll be as something different entirely. >> Yeah. It's always some ne it never the same. That's what only reason people are interested in following it because it's always something different. It's and it it'll be different enough that it will, you know, people would be analyzing it in terms of what happened in the past saying, well, it's kind of like this, it's kind of like that, it's kind of like this. This reminds me of vintage wines and Bordeaux. Every time a good vintage comes out, they're trying to equate it with, well, it's kind of like a 29, but maybe it's a little more like a 45 or 61, maybe. you know, they're trying to place it in in a spot in history when it's there's nothing to you can't do it. >> And and and the funny thing is after the fact you look back and you're like, "Oh yeah, yeah, yeah, that was obvious." >> Yeah, that's like stagflation. >> It's obvious after the fact. So he said over the next 12 to 24 months we see a draw down with respect to equity markets. I think there will be a lot of capital that's deployed that will turn out to be uh nothing and will not deliver returns and when that happens people won't feel good. This really huh? >> Yes. This this this this this nugget of knowledge from the CEO of Goldman Sachs. And what does he make a year? Let's see. >> What does he make a year? >> We're going to find out. David. No, he's not doing his um DJ gig anymore, right? >> I hope not. >> No. Um he made in 2024 his comp package was 39 million. >> Oh, that's reasonable. >> He's got a base salary of 2 million, $8.3 million cash bonus, and the remainder in stock and incentives. In addition, he received a uh $80 million retention award conditional him staying with the company for five more years. How do you like that? Hey. Hey, hey, guys. >> There's an incentive that would keep him around. >> Yeah. Listen, do me a favor. You know, I I need you to stay for a while. I'm going to pay you an extra 80 million. All right. Okay. And then what happens? He says, "I'm leaving." They really want to keep him. And then he says, "You know what? That 80 million wasn't enough. Bump it to 120 and I'll stay." >> I don't know. >> Yeah. Yeah. That's what you do. >> What What What's uh That's David. He's like the athlete who rec, you know, he makes a does a great deal with his team and then within a year he's changing the contract. >> Interestingly enough, Jamie Diamond's 2024 compensation was what? 39 million. >> Ah, price fixing. >> Huh. He had a base salary of 1.5 million, 37.5 million in performance-based incentive compensation, $5 million cash bonus, and 32 million in performance share units. Not bad. Really? The same exact Yeah, the same amount. I want what he has, Daddy. >> Yeah, exactly. >> Oh, how come he's making more than me? >> Well, now Jamie Diamond is out with some warnings, too. He's talking about now he's talking about he's always has some flare, you know. He's got that what that New York, New Jersey kind of Long Islandish accent going on, right? This kind of a sloppy talking guy. >> Tough guy. >> Yeah. He talks about cockroaches related to the recent bankruptcies. You know, when there's one, there's probably more. We had the first BR brands group. These are the the the bankruptcy fraud situations I was mentioning earlier. >> Yeah. So this you got to can you get closer to your microphone? >> No, I can't really get much closer. I'm right on top of it. >> We lost you. Lost you. I mean, you're there, but it's very very faint. >> Nothing. I haven't changed anything. >> Let me check mine. >> Hello out there. >> Yeah, it was me. Actually, I don't know what happened. There you go. Talk. >> You bumped the knob, >> I guess. So, uh, I got so excited about the 39 mil. >> Uh, Jamie Diamond talking about cockroaches. We got First Brands Group, which is an auto parts supplier, which filed for bankruptcy with over 11 billion in liabilities. This is the company that did the invoice factoring, allegedly pledging the same receivables to multiple lenders. Then you gotricolor Holdings, which was a subprime auto lender, which is accused of fraudulently pledging risky loan portfolios to multiple banks. See that? That this is what freaked everybody out. We had that and we had one other thing. Yeah, they're all doing the same game. >> Why not? You got you got you got 12 year olds probably doing the uh you know fresh out of college doing >> that are 12-year-olds running an AI >> Yeah. Yeah. running it through an AI approval process for the loans. >> Yeah. You would think that a basic process of discovery for financing of your loans to see if there is an attached deal already to uh either your current finance, you know, current financials, current book of business, your invoices or or your AR, right? You you would think that would be step one, >> the first thing you check. Yes. And not only do you check it, you don't just say to the client, "Hey, by the way, uh, are we the only ones, you do some you do some All these things are registered. All these deals are somewhere signed somewhere. You have to look this stuff up, right?" >> Yeah. They're not all secret deals. >> Very sloppy. Very, very sloppy. So, zero dated options. we see these daily turnarounds especially on Fridays where by the end of the day things are getting pushed pretty well and the new studies are showing that zero date options push the end of the day uh is is a big player in that process. So on an index of like the S&P 500 where like 35% of the top 10 holdings is the makeup of of you know between Facebook or Meta uh Apple and Amazon and you you know you look at all uh Nvidia the the the top 10 positions the the the concentration of positions in the top holdings of the S&P 500 like 30 35% is the concentration. Can you imagine if those stocks go down? >> Be a nightmare. >> It's unbelievable. So, what you do is you you push up those names and then collect your your back end. You just, you know, buy that in because everybody wants to buy it and the funds just don't buy it and your banking just buys it and you buy the futures and all that and you have these zero date options and you get over the number and it's great. Friday 10:17, if you look back at that, great example of what happened there. Decliners outpaced advancers all day. Small cap is down, mega cap is up. They're pushing the big names to push the indices so that they can have the options on either the the index or the option on the stocks do well. the zero dates and as the day progressed the squeezing continued and you know 180 degrees on the Friday before just just rotated around and a lot of discussion is being held not not not discussion like well got to get rid of those that's not what I'm saying they're just like trying to figure out what kind of influence do these really have and what should we make of it because again the retail trade has become a very big powerful uh not a lobby but a a powerful uh you know um >> it's a variable. >> Yeah. >> Yeah. The retail guys in fact that's all if you ever watch Charles Payne's show >> making money >> on Fox Business one of the few shows that actually does concentrates on stock tips >> as opposed to Trump news. Um that's all he talks about. But the zero deal >> the retail guy the retail guy's running the show. >> Yeah. >> You see today, you see with Beyond Meat, that stock was dead in the water. We talked about this a couple weeks ago. Beyond Meats. >> Yeah, we did. >> It's up uh enormously, like 360% in the last three days. >> Unbelievable. >> It's at like four and a half dollars from like 50 cents. I think it was up 22% after the close as well. >> And what's the reason for this? Uh there's two reasons. So it was up 146% today, another 22% after hours. Last week it was at uh uh let's see, year to date the stock is up 22% just miraculously. On a 5-year basis, it's down Oh, no, that's not that's not right. I'm sorry. Year to date, it's down 6% still. On a a 5-year basis, it's down 97.89%. Uh what's the reason? Well, one thing is supposedly it was some Walmart deal, but the second thing was it was it was added to a meme stock basket ETF. >> Uh, meme stock. >> So, it kind of got a big, you know, kapow. >> How do we get to find out what these what's going to go in the meme stock basket before they put it in? which is a good question because on October 20th on Friday October 17th at the close okay this was 73%. So the question is um that was Friday. Today's Tuesday, right? So let's look here the 21st. That's today, right? The news is that it was included in Roundill's uh meme stock ETF. That that's that's the news. That's on the 21st. So yeah, 600% in three in three days. So So the point is who let the cat out of the bag on this one? >> Well, and you know it they're going to do that constantly. >> Is there is there some way you can see it in the chart? >> You Well, if something's moving like crazy, but then you know you going to play this thing up. >> Well, I mean, if you go back far enough, can you see the I mean, because you know, if somebody knows something in advance, it's going to go in the meme the meme uh stock pile. that somebody's going to be picking it up in advance. >> How is How is Beyond Meat down 97% a meme stock? What makes it that is is is a meme stock a piece of [ __ ] stock that should be dead in the water and bankrupt? Is that a meme stock? >> It seems to me >> maybe with a big short position. Who's who's shorting the stock? Well, we do know that if the stock's at 50 cents, it can still go to 25. >> Yeah, you can still make money. Yeah, >> but who's going to do that? Is anybody in their right mind going to do that? the the the the if the stock >> short at 50. >> The stock is down 97. >> You want to short it at a dollar. >> What I'm saying is the stock is down 97%. Isn't the general run over? >> I would think so. I would think the stock is over. >> Well, yeah. And that's a non-touch, right? >> Yeah. >> I don't know. >> Yeah. You'd stay away from it. You wouldn't even short it at at 25 50 cents or 25. >> No, it's too dangerous. >> Yeah, because it, you know, it's Yeah. Could any dead cat bounce, it's gonna wipe you out. >> I mean, this is probably shortable any second here. just like, by the way, you were totally right about Oracle, even though it's not showing up in the game numbers, but you know, Oracle is down 20% from that top move, that that big um capitulation short squeeze slash Oh my god, Open AI is going to pay us uh $300 billion trillions. >> Yeah, >> they were going to pay um was it $300 billion over 10 years or something like that. And and you called [ __ ] >> Yeah, I did call [ __ ] And we both said, you know, wait a minute, uh, OpenAI is coming up with, you know, all this wonderful money, yet they're losing money. How is this all happening? Then they came up with more money for somebody else. You know, it's the Oprah Winfrey, I'll give you a billion. I'll give you a billion. I'll give you a billion. And I think they caught on to this whole thing saying, you know, how many how many how many times over? Same thing. Same same again. >> Same as the bank scam. Same same as the bank scam. same as the producers. How many times can you give out money you don't have or the hope that you do have? And that's the same thing that's going on with the vendor financing. So Oracle got a nice boost. That was great, but it came right back down to earth. Not all the way, but a substantial amount, 20%. That's pretty good. GM on the other hand did really well. Interesting if you look at a comparison of GM and Ford. Pretty interesting to look at the two different stocks and the performance there. Ford is like stuck in a rut. GM is doing great. In fact, um symbol GM a whole a whole different a whole different um look of of this. So GM was up 15% today by the way. It's up >> for what? >> Well, they had earnings. I'll tell you that. Let me say something else before it's up it's up 80% in the last five years where Ford on the other hand in the last five years is up 50% but has come down and been pretty much stagnant since 2023. So GM um it it it had its best day in trading since 2020. Uh second best trading on the market since its 2009 emergence from bankruptcy. because they came in with adjusted earnings of $28080 per share when expectations were 50 cents lower at $2 and about 30% 30 uh revenue revenue blew it out. They had like $3 billion more in revenue. They they had uh 48.5 billion versus 45 billion. Their adjusted earnings before interest in taxes was 3.38 billion versus 2.7 billion. And they reduced their expected impact on the tariffs to between which still still not not nothing. It's not a small amount but between three and a half billion and four billion down from four to five billion. So um pretty pretty impressive numbers. And Mar was talking about all the you know the reasons why they're so great and so wonderful and all this stuff and probably they have the right to win. I guess probably uh >> the right to win. There you go. >> You know. Yeah. >> Uh and um it was a pretty it was a very first of all it's a very impressive quarter considering the fact that uh they're dismantling most of their EV production, refitting their factories, and I guess they have cars that people like these days that interest rates are really not that low and that the consumer >> trying to figure out what car that they're what what what they're selling that I would have any interest in uh at all. Let's see. >> I mean, pretty much this the this that Chrysler group has got the uh the minivan thing locked up. >> Uh >> Ford's got the pickup truck market, I think. >> No, the the Silverado and the Cement. >> You think the Silver the Silverado is doing better than the F-150? I thought it was the best truck best pickup truck you could buy. It's too big, by the way. >> Um let's see. F-150. Um, how many what do we say? F-150s in 2025. Uh, 620,000 units of uh, which is the best selling truck in line. Yeah. So, 620 units. 620,000 units where GM has sold 282,000 of the Chevy Silverado CMC Sea Sierra is about 166. So between the two the GMC Sier was probably the same kind of car, you know, they just repackage it. I don't know. I have to look at that. But um I don't know. It's also their um the Equinox 129,000. For whatever reason, they're selling selling. Ford can't get out of their way anyway. That's a different discussion. I agree with that. >> Number one bestselling vehicle in US is the F F-S series pickup truck. >> The best >> Yeah, Ford has got management problems. They've always had they have a certain kind of weird arrogance at the management level that is kind of hard to put your finger on what is why it's there. It reminds me from uh my experience of the old General Electric hacks or IBM >> years >> years gone by. Yeah, IBM to some extent, but the General Electric guys, the oldtimers that before, you know, the company got all busted up during the Jack Welch era. They had these guys. They thought they thought that their [ __ ] didn't stink. It was the most arrogant group of people I've ever run into. >> Yeah. Until they got rank what was it called? Rank uh rank filing. No, rank >> uh ranked stack stacked ranking. >> Stacked ranking. Yeah. Yeah, that that shut them all up. >> Yeah, that that'll do you in. >> So, pretty good. Now, on the other hand, we had some great numbers from GM. We talked about that. The number one selling car uh is um in America is the Ford F150. Then then it's the Chev the Chevy Silverado. >> Those are pickup trucks, >> right? Right. Those are number one. >> Does anybody buy cars anymore? They're just all Toyotas. >> I don't understand a pickup truck. I mean, I I I I it seems like a lot of wasted space for the the majority of time not being used. >> No, they're a part-time uh car, >> right? >> In my opinion. I don't know why people do drive them around all the time, but they're they're they're too big. They uh they don't navigate well. >> Well, we're in the minority here, though, obviously. Now, meanwhile, Ferrari posted their worst trading day ever last Thursday after the luxury car maker updated his full year and his 2030 guidance. >> 2030. So, they're a little ahead of their time, it seems. >> I'd say it's five years from now. >> Yeah. Uh, all of it short of expectations. um expected revenue of 7.1 billion euros this year, up from a previous forecast of more than 7 billion, but net revenue expected to be around 9 billion in 2030. I don't know how they could do this. >> Does it take him 5 years to build a car? >> I think they have a long cycle. >> Well, they obviously have a long cycle. The cars are more or less handbuilt. >> Yeah. So, there was something going on. They didn't like it. They took away the EV thing that there's a EV thing going on. There's like a lot of little >> That was idiotic. >> Yeah. Who wants a Ferrari that's an EV? >> That way it can be nice and quiet. >> So dumb. It's like, hey, you know what? I got a great Harley for you that doesn't make any noise. >> That's going to go over well. That's >> the point. >> Yeah. Uh quantum stocks. JP Morgan announced that it will invest up to $10 billion in 27 specific indices uh industries including quantum computing. And that that sent everything back up to the moon, up a few hundred% this year. The Regetti, the ion cube, uh quantum um bits. So, hey, big Apple news. Two things. Two things big. Uh first of all, Apple hit an alltime high this week. Yesterday was up big. That's what really jacked the uh the the Dow Jones yesterday. >> Yeah. Why? Well, because they said that iPhone series 17 outperformed its predecessor in early sales in China and in the United States. This was from a research firm counterpoint without material facts because remember Microsoft doesn't release I mean uh Apple doesn't release this information but they're saying the newer models outsold the iPhone 16 series by 14% during their first 10 days of availability in the two countries. Sales of the base model iPhone 17 nearly doubled in China compared to the iPhone 16 during the same period. Very, very, very big. Everybody's excited. We're making headways. They're buying us in China again, which I don't know. Weren't we supposed to not be selling to China? I don't know what's happening. But the fact is, I guess if you have dinner with President Trump, everything's good. Now, they also made another big announcement. This is kind of different. This this is I thought this was really interesting. uh Apple and Formula 1. I don't know if you're a Formula 1 fan. >> I'm I'm familiar with I have a an autographed cap from Schumacher. >> From Schumacher. >> Well, see, you don't you're not a Formula 1 guy. >> Clearly not. But >> Schumacher was the the I think he's German. He was one of the winningest uh Formula 1 guys in history. >> In what year? >> Retired some time ago. >> Oh, yeah. was a while ago. Well, if you want to watch Formula 1 F1 racing starting soon, >> which is kind of boring to watch in my opinion. >> Well, it's better than You know what I heard is really boring? My friends went to the F1 when Miami. It's right down the road here. That's uh if you don't have the First of all, getting in there is difficult. You really can't get out. It's loud, which is part of the deal. But all you see is zip zip. That's it. >> Yeah. No, you just car zipping by. Um, Apple and F1 racing, uh, Formula For Formula 1 announced that, uh, F1 races will be exclusively shown on Apple TV in the United States beginning next year. What do you think of that? >> Yeah, boy. I'm going to Yeah, let me sign up. That's not interested. >> That's a 5-year deal. I thought that was fascinating that you will not be able to watch F1 racing. You can't anyway. >> Well, well, yeah. Okay, but I'm saying if you wanted to somehow do that. So, the partnership builds on Apple's deepening relationship with the Formula 1 following the global success of the Apple original films adrenaline fueled blockbuster, which is the highest grossing sports movie of all time. F1 the movie. Highest grossing sports movie of all time. I was looking up some other sports uh movies. They didn't come close. Do you know what this You know what the second highest uh sports related, you know, sports movie of all time was? >> What? >> The Blind Side. >> Never heard of it. >> What are you talking about? What a great movie. >> Never heard of it. >> It was a story about this guy who I don't want to say learning disabilities. It wasn't that. He was, you know, he was a guy that had to get through college and he was kind of big big by you know, like a refrigerator Perry, big guy. Big dude. Um was he at Ohio or where was he? I forgot what school he was at. Anyway, um and and and long story short, he was playing offensive line and he wasn't do getting it was just a whole thing. And then somebody said he was very fond of of his mother and this other woman and um they gave him a a prompt said protect the quarterback like you were protecting me. And that was that. >> And it was a whole just a beautiful story. >> Um brother, >> it was a great story. It was a great story. The blind side. Then you have like they put like a Happy Gilmore in there. Two two of the highest uh two of the highest others are Adam Sandler movies. I think the Sand Sand the the Water Boy or something. >> Yeah. And those would be determined even though they're just flatout comedies. Yeah. Because they had a sports angle quote unquote sports movie. >> Rocky Rocky. >> Rocky I would say was kind of >> Jerry McGuire was definitely a sports movie. >> Yeah. Longest yard. How about The Longest Yard? >> Yeah, I saw that. >> Right. How about How about one of my favorites of all time? >> Field of Dreams or The Sandlot? >> Well, I never saw The Sandlot, but Field of Dreams, of course, is a classic. >> Yeah. So, there you go. Uh, robbery. Robbery. Woo. Get out the uh the police. Uh, you can hear the way that you know those uh uh European police cars different than ours. You know how they make the different sound. >> Thieves broke into Paris's Lou Museum on Sunday, >> using a crane to smash an upstairs window, then stealing priceless objects from an area that houses the French crown jewels before escaping on motorbikes. This is like This is like a uh uh uh uh um Tom Cruz movie. >> More like the Thomas Crown affair. >> Thomas Crown affair. Uh the robbery or or the one with um uh Sean Connory, one of those. Anyway, the robbery raises awkward questions about the security at the museum where officials already sounded the alarm. Sounded all like him. Nothing. Little nothing. >> Got to keep a or maybe it sound Does that sound more like what's his name? the I think I have the same the same sounding voice as I imitate Sean Connory and uh what's his name from you know from the Senate. >> Oh you know you do that one well Mitch McConnell. >> Yeah Mitch McConnell here. Um anyway officials had already sounded the alarm about lack of investment at a world famous site everybody accept the whole thing. They say that the robbery was either commissioned by a collector, which is good news because in which case there's a chance of recovering the pieces in good state or undertaken by thieves interested only in the valuable jewels and precious metals. First of all, you got to break this stuff up, right? You got to bring this to a chop shop. >> You're not selling, you're not like going to walk into a hey, >> the guys in the group might be a chop shop guy, >> right? Because you're not going to you're not going to it's not going to be like uh on eBay available today is the crown jewels. little furnace and melt down the crown. And then you got the jewels will float to the top. You pull those out and scrape off the the metal and you got the raw stones for sale and a and a big uh pot full of silver or whatever it is. Gold, pot of gold, pot of silver, pot of platinum. >> Yep. Yep. >> You sell that by the ounce. >> Yep. Let's see what else we got here. Booze. Exports of US spirits fell 9% in the second quarter according to a report by the distilled spirits council of the United States. They war that trade tensions were hitting demand in key markets. Here, listen to this. This is fascinating. The decline marked a sharp reversal from 2024's strong export performance with steep drops across major markets including European Union, Canada, Britain, Japan, which together represent 70% of total exports by value. Canada saw the most dramatic fall with US spirits exports plummeting 85%. >> No, that's because they're boycotting. >> All right, I'm just saying they they have the right to do that. If we're messing with them, they can mess with us, right? >> They can do whatever they want. >> But, you know, there are people up there that like drinking uh bourbon as opposed to the Canadian whiskey, which is >> a good product, but it's kind of bland by comparison. >> What's the Canadian whiskey? Uh C CNC CN >> there's a bunch of them a Canadian club uh >> this is one of the big ones. Uh isn't uh oh I I should know a half of them on Black Velvet's a good example. That's a Canadian uh whiskey. >> I I prefer not to you know Crown Royal. >> Crown Royal big time big shot. Big big one. >> That I mean that's a good one. >> Yeah they're all good because Canadian whiskey is really good. But it's semi neutral tasting compared to, you know, a nice bourbon. >> Yeah. Yeah. So, >> it's like comparing French brandy to to army. >> Oh, something that I don't do very often. >> That's the comparison I make. >> Oh, you'll have to tell me about that one day. Exports to the EU, the largest market, dropped 12%. Shipments to Britain fell 29%. Japan decreased 23%. So, not so good. Yeah, but the stuff doesn't go bad. >> No, of course not. >> So, it's a little different than an agricultural product and they can just get it increases in value over time. So, it's quite possible could be a windfall down the road. >> Down the road. Open AAI following up on the vendor financing and circular financing. Openai has disclosed a trillion dollars of commitments pretty much over the next 10 years. Signed a deal with AMD. Did you see this deal? signed a deal with AMD since the last time we spoke. >> Stock spiked 40% plus. >> Yeah, I know that was a missed opportunity. >> Well, we had the short on the game that was stopped out. As part of this arrangement, AMD issued a warrant that gives OpenAI the ability to buy up to 160 million shares of the AMD for 1 cent each. 1 cent each. Why wouldn't they do that? Why shouldn't they do that? Why wouldn't you do that? >> Yeah, you tell me. I I'm gonna buy warrants of 160 million. So, let me just let me just clearly understand this for a second here. You're telling me that I can if I decide to do so for some reason. I don't know why I'm going to be able to if I meet there certain milestones that has to happen, right? But assuming that uh OpenAI gets there because they want to be able to buy this at 1 cent each. So, it's eventually an incentive or rebate program. You're going to give away like 10% of the company or whatever the number is. for like nothing. Again, what they're doing is they're turning this is once again the same crap. They're turning balance sheet >> I agree. This is a a borderline scam, >> right? They're turning the they're turning balance sheet assets. So, just to make sure everybody's totally clear on this once and for all, it's like me taking money out of my bank account and somehow giving it to myself through I give it to you, but you give it back to me. And I say I take a million dollars from my bank account. I give it to you. You give it back to me for whatever, right? And I say, well, I made a million dollars. Oh, okay. Yeah, I see. I Yeah, but not really. But by doing so, it makes my business look that much more valuable. So instead of I'm just picking numbers out of the blue here, right? A business that's worth, you know, a widget business is worth 10 million. You just gave me another million dollars of revenue. Now I go, whoa, we multiply that up, it's worth another$8 million. Now my business is worth $18 million. And what did it cost me? It cost me a million dollars from my bank account. >> Yeah, >> great deal. So something to think about. >> Well, this can't go on forever. >> Nope. Um, so with with that, I'd like to mention that uh you all have the right to win. You should have the right to win. And one of the ways you do that is by helping other people win. One of the ways you do that is going over to DH Unplugged. You can check out all the things that we have there. But one of the things that's really important to understand is we have a special magical right to win button. It's yellow. It says the word donate. We don't want to, you know, be obnoxious about it and say that, you know, click this button, you'll have the right to win. But you do. You have the right to win. Go over to DHM plug, click that button. If you haven't done so so far, seriously, shame on you. Got to shame you in the in the in the parlance of no agenda. By doing so, I think you get what's what do they what do you call it on your show with Adam Curry and John T'vorak on Thursdays and Sundays when someone gives finally gives money and they they they go and they help out the show. It's called a what? >> Producership. >> I think it's called a ddouching. >> Oh, you get a douching. Yeah, you do get a >> Well, only if you're a douche, >> right? So, >> which means you never donated before. >> That's what I'm saying. That's what I'm saying. Yep. So, just consider that now. >> Start doing that. Uh let's talk about Can we talk about the close to the pin for a second? >> Yeah, I'd like to talk about it. >> So, Lithium America finished uh at uh $6.79% 79. The masses entirely average price, everybody's average price when we put it all together was $6.99. Not so bad. Pretty good. Neil L won this competition seven cents away. 1.17%. So, we're sending him a nice brand new really cool shirt, an SPF uh shirt that's uh that's uh sun sunshirt with long sleeves, white with a nice DHM plug. You've seen it. It's fabulous. So, he's getting >> Has he won before? I don't think so. >> I don't think so. I thought it I thought it was somebody at first. Um some of some of our favorite names were close to the top of the list again, you know, top eight or top 10. is the thatched roof guy. >> He was like top eight. Yep. >> Yeah. He's always there. >> Yeah. Yeah. I should have visited him. I was in London last week, too. >> Oh, yeah. Well, he's probably out in the country. So, there's some some towns out in the middle of nowhere that just all thatched roofs. >> I went out there with a friend of mine once and we're driving around the one of the main towns is Got out and take some pictures surrounded by police. >> Oh, really? >> Yeah. We put our hands against the car. We're patted down. What are you guys doing here? >> It turned out to be the town that one of the it's either the prime minister or the one of the big shots in the government stayed there and they thought they were I guess had some terrorist threats and the guy I was with he had this beard kind of looked like a terrorist so you know they checked us out and sent us on our way. >> Oh there you go. All right let's get over to the game. This is a game that we play. It's not a solicitation to buy or sell any security. It's not a recommendation of any kind. Nothing on the show should be considered investment advice or a recommendation. If you choose to invest in any of the stocks mentioned, you should know that it may carry risk along with the risk of a loss of principle. You should also seek out professional financial advice for your particular situation. We assume no risk as these are not to be considered recommendations. Horowitz accompanied myself or John Cavor may invest in any of the securities mentioned and will disclose that on the website under the weekly stock pick section. You can go to dhunplug.com and see all the names we discussed in the segment along with the performance information from the date discussed as well as any additional important disclosures. A couple couple of notes on this. We'll go through this maybe quickly because we're running out of time, but uh some of the names like for example um got few a number of things got kicked off but um Viking Therapeutics. >> A lot kicked off. >> Yeah. But Viking Therapeutics would have been up big now. >> I think it's at 30. Got kicked off at 24. Um, there was another one. I think it was I think it was maybe I don't know if it was Lumis. There was some other Oh, uh Oh, Oracle. Oracle. So, Oracle got kicked off at $311, right? >> Yeah. >> And currently it's trading at $275. >> Yeah. It would have been way up. >> So, there's some some good names on here. Some really good picks by you, by the way, that if they would have stayed on, it would look I mean, they don't look good. >> Yeah. I'm ahead of my time. >> Yeah. A Yes. a Renaissance man. So, you have any you have any picks for this week? >> No, not really. There's a few things I'm looking at, but I'm I I'll put them off till next show. >> Yeah, I'm I'm there. There there are a bunch of earnings happening. Netflix came out. I think the stock was down, if I'm not mistaken. Uh Netflix Oh, I didn't You know what? We had this So, Netflix actually missed on their earnings and but beat. I know it sounds weird, but what they did was they were down 6 and a half% down 80 bucks after hours um on this this miss. But the problem is that one of the misses may the miss the miss may have been this lawsuit that they had that wasn't anticipated that's being put in and if they didn't do so they would have had it better. But the big thing that I saw in Netflix was even with that and even with the margin change due to that the margins are going to contract another 5% 500 basis points >> into the next quarter. They're they're giving upside guidance but their margins are shrinking. So something's a little out of whack with the whole thing. >> And I think investors saw that big draw down. Don't forget that last quarter um after their earnings there was a bit of a draw down >> and uh you know this stock was 855 back in April then it rose all the way up to about 1350 in June and then after that it came all the way down to about you know another 200 something points down um and then it's been level since then it hasn't moved since it's been basically you know between trading at about you know to high of about 1263 narrow range it's been, but I think that the big issue year to date this is um up 40%. And the question is how much more gusto and growth does it have really with the numbers it's showing. So, and and I don't think they're really breaking out a lot of their viewership anyway anymore. So, I think people are kind of like taking a look at this and saying, "Uh, maybe not." >> Yeah, I think you're right. >> Yep. >> I don't go to Netflix hardly any. >> I mean, I go to here and there. There's definitely some good movies on there and >> yeah, >> it's easy enough and they have the best interface. >> Expensive and >> yeah, >> you know, they're always checking you. Ah, you know, somebody else is using the account or >> that's a problem. >> There's one thing or another. >> All right. Well, let's uh let's call it and uh see you again next week. >> All right. See you then. >> All right. Bye. >> You've been listening in on a conversation with John C. D'vorak and Andrew Horowitz. Hope to be with you again soon. Bye-bye. >> Now, I'm not broke, but badly bent. I'm not down to my last scent cuz I got a dollar but it's my last dollar bill. Yes, sir. In my pocket there's a dent. All my dough is nearly spent but I got a dollar and it's my last dollar bill. Oh, I'd love just one more buck fortune left me by chance. Now here's a hint. I feel like a men. You can hardly tell by a glance. I don't care. No millionaire can give me the Isis stack cuz I got a dollar. My last dollar bill. >> This podcast is intended forformational purposes only and does not constitute personalized investment advice. Investing involves risk, including the possible loss of principle and past performance, is not indicative of future results. The views and opinions expressed are those of the hosts and the guests and may not necessarily reflect those of Horowis Company, Inc., an investment advisor registered with the US Securities and Exchange Commission. Registration with the SEC does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Horowits Company is properly registered or is excluded from registration requirements. Any mention of thirdparty companies, products, or services is provided forformational purposes only and does not constitute an endorsement. Hypothetical scenarios or forward-looking statements are for illustrated purposes only and should be viewed only as that and not as guarantees. Content is intended for US residents only and may not be applicable in other jurisdictions. Listeners should consult a qualified financial adviser before making any investment decision. Please visit our website for additional information, disclosures, as well as a copy of our form CRS.