Latest / Financial Survival Network / Gold Knows What's Coming - Dale Smothers #6403

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Gold Knows What's Coming - Dale Smothers #6403 · Financial Survival Network

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  Speaker 1: You're listening to Carrie Letz's Financial Survival Network, where you
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  Speaker 2: And welcome. You are listening to and watching the Financial
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  Speaker 2: Survival Network. I'm your host, Carrie Letz, and Dale's Mothers
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  Speaker 2: is with us today. We just got an inflation report,
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  Speaker 2: which shouldn't have surprised anyone, But of course the media
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  Speaker 2: is always surprised by everything, aren't they, Dale.
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  Speaker 3: They certainly are.
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  Speaker 4: Everything is the end of the world.
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  Speaker 2: It seems. Yeah, so what does this mean and why
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  Speaker 2: should we care?
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  Speaker 3: Yeah, you know this CPI, if it had been even
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  Speaker 3: higher then I think it would have really potentially make
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  Speaker 3: the Fed really kind of handcuffed in having to either
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  Speaker 3: raise rates or at least begin discussing the idea of
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  Speaker 3: raising rates. CPI came back with a you know, higher
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  Speaker 3: than we desire report. But it's not as if CPI
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  Speaker 3: is showing inflation just completely running off of the rails.
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  Speaker 3: It's still hopefully contained, and the end of the war
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  Speaker 3: would would make this a much easier narrative to spin
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  Speaker 3: the idea that inflation is transitory, that ugly t word,
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  Speaker 3: transitory inflation.
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  Speaker 4: I don't see this as.
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  Speaker 3: Another twenty twenty two scenario, but we clearly have to
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  Speaker 3: have oil stay below one hundred dollars a barrel and
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  Speaker 3: hopefully fall shortly after the war ends to see inflation
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  Speaker 3: not become even stickier situation. And I'm just not one
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  Speaker 3: hundred percent certain that that's going to happen to this point.
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  Speaker 3: I think it's it's been in the system for so
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  Speaker 3: long that it might take a couple of months to
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  Speaker 3: see oil fall.
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  Speaker 4: But who knows when the war in Iran's going to
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  Speaker 4: ever end.
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  Speaker 3: Carry it just cranked back up, as you know, yesterday
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  Speaker 3: we saw a helicopter down and then a reaction from
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  Speaker 3: American military forces. That is where all of our eyes
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  Speaker 3: are right now. And thankfully the CPI is not worse
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  Speaker 3: than it was.
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  Speaker 2: This is right. So yeah, four point two percent, that's
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  Speaker 2: what they admit to. But know, the reality is something
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  Speaker 2: a lot different, isn't it.
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  Speaker 3: Sure Sure, sure you know which you know you and
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  Speaker 3: I were talking about why the rush to gold has
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  Speaker 3: has been something a lot of retail investors have been
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  Speaker 3: doing a lot of institutional investors have been doing. There
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  Speaker 3: is certainly, as you pointed out, you know, this idea
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  Speaker 3: that the conspiracy seems to be looking more and more
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  Speaker 3: true each and every day, that this is all just
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  Speaker 3: a little bit of a game, and they're hoping to
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  Speaker 3: keep this game going as long as possible to spend
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  Speaker 3: out on AI. The demand for AI and earnings can
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  Speaker 3: make an investor, you know, rationalize why stocks are going higher.
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  Speaker 4: We're in that camp.
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  Speaker 3: We work with stocks every single day for our investors
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  Speaker 3: here at RDS well and clearly we are cautiously optimistic
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  Speaker 3: that earnings continue to grow. But if things fall, Carrie,
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  Speaker 3: if things start to tumble, they could tumble quite a
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  Speaker 3: ways before we see the bottom any time soon.
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  Speaker 2: So we should ask, what's your take on SpaceX here?
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  Speaker 2: Is it immune from all of the inflation talk? Are
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  Speaker 2: we really in a new age because of AI? Every
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  Speaker 2: time they've told me we're in a new age and
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  Speaker 2: the business cycle has been repealed, and what could possibly
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  Speaker 2: go wrong? Something has always gone wrong.
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  Speaker 3: Right, Something's always gone wrong. Realistically, we are not chasing
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  Speaker 3: SpaceX here for multiple reasons. One of them is, just
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  Speaker 3: like you said, it's not a different story this time.
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  Speaker 3: The IPO of SpaceX is not like buying Amazon when
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  Speaker 3: it was just an online bookstore. We've been telling our
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  Speaker 3: investors this for well at least six months now, with
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  Speaker 3: the idea that SpaceX was coming public. SpaceX has been
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  Speaker 3: around since two thousand and two. That's twenty four years
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  Speaker 3: of continuing to grow, continuing to take in investors capital.
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  Speaker 3: These investors are something called accredited investors or venture capitalists
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  Speaker 3: that are out putting millions of dollars in. Now they're
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  Speaker 3: opening it to the retail sector, and I think what
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  Speaker 3: Wall Street is selling is a dream and it's going
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  Speaker 3: to be sold at the highest possible premium.
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  Speaker 4: And for that reason, we expect.
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  Speaker 3: The IPO to pop a little bit here at the
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  Speaker 3: beginning and then to see something very similar to what
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  Speaker 3: would be a rug pull, especially if the investors that
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  Speaker 3: had invested years ago come to a three month or
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  Speaker 3: six month lock up window and that price is high.
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  Speaker 3: They're gonna be looking to take profits, there is no doubt,
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  Speaker 3: and that is going to sell or it's going to
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  Speaker 3: lead into a selling frenzy from our books. So what
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  Speaker 3: we're telling investors very simply, carry we believe that you
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  Speaker 3: are going to have an opportunity to buy SpaceX, which
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  Speaker 3: I think could very easily be one of the most
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  Speaker 3: important companies of our lifetime. But you're going to have
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  Speaker 3: an opportunity to buy that at a cheaper price than
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  Speaker 3: what at IPO's on Friday.
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  Speaker 2: Yeah, but you know, we do have this thing called fomo, right.
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  Speaker 3: That is very true fomo, and that fear of missing
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  Speaker 3: out is likely to take that stock higher. So if
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  Speaker 3: you are a day trader, maybe you're a swing trader,
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  Speaker 3: maybe you are a speculative trader, I think you're going
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  Speaker 3: to see that speculation continue to take that IPO higher
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  Speaker 3: for a period of time. The realistic expectation of when
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  Speaker 3: that time ends, when the music stops, when the dancing,
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  Speaker 3: you know, is over, and the lights come on and
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  Speaker 3: everybody's told to go home. No one knows when that
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  Speaker 3: party is going to end. And that's why we at
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  Speaker 3: RDS wealthy are not necessarily chasing this IPO for the
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  Speaker 3: time being.
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  Speaker 2: So another thing we're seeing here money flowing in from
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  Speaker 2: all over the world into the US. I always like
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  Speaker 2: to say that the US dollar is the best looking
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  Speaker 2: house in Baltimore. This is going to pick up, isn't it,
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  Speaker 2: Because a lot of things don't get covered by the media,
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  Speaker 2: which is more designed than accident. But one thing we
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  Speaker 2: know for sure is the euro dollar market has really tanked.
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  Speaker 2: We've had a lot of international issues there in Europe,
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  Speaker 2: their auto industries imploating before our very eyes. And basically,
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  Speaker 2: where else is the money going to go? It's always
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  Speaker 2: going to seek its perceived safest option, right.
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  Speaker 3: Oh, certainly, And you know at this point, I think
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  Speaker 3: America is the safest bet for the global money that
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  Speaker 3: is flowing. The US dollar. Like you said, it's the
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  Speaker 3: strongest of all week currencies. I mean, all currencies currently
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  Speaker 3: are weak. There are nothing but paper and now we
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  Speaker 3: know this to be true. Again the reason for the
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  Speaker 3: gold bid up, and I think we will continue to
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  Speaker 3: see that through twenty twenty six and into twenty twenty seven.
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  Speaker 4: It's a place that.
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  Speaker 3: People will flock to for fear. Bitcoin could be another
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  Speaker 3: place to maybe store some value there. And you and
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  Speaker 3: I have talked multiple times about bitcoin. We're not chasing
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  Speaker 3: that for our clients, but the idea that we have
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  Speaker 3: to have something that is finite and not printable is
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  Speaker 3: more and more taking hold in the general public. For
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  Speaker 3: the current time, though, the petro dollar is the standard
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  Speaker 3: of the world, and that US dollar is likely to
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  Speaker 3: continue to be the case.
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  Speaker 4: And where else.
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  Speaker 3: Are you going to go right now in markets to
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  Speaker 3: make any money. There was a period of time where
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  Speaker 3: the international markets were out pacing the S and P
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  Speaker 3: five hundred. But when things get concerning or scary in
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  Speaker 3: a global stance, and right now we've got China VERSUS America,
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  Speaker 3: which is the predominant narrative. When that starts to ramp up,
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  Speaker 3: I think we're going to see more and more dollars continue,
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  Speaker 3: as you said, continue to flood in to American economy
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  Speaker 3: and to the American companies for sure.
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  Speaker 2: So it's interesting that the uncertainty that the US has
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  Speaker 2: created with the war in Iran, actually the dollar becomes
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  Speaker 2: the beneficiary of.
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  Speaker 4: That without a doubt, without a doubt, you know.
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  Speaker 3: And you can look at multiple things, starting with Venezuela, Greenland,
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  Speaker 3: potentially Cuba, the idea that we are establishing some sort
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  Speaker 3: of dominance here. The plan is to establish dominance in
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  Speaker 3: the US dollar, that petro dollar, which is not backed
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  Speaker 3: by anything except the full faith and credit of the
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  Speaker 3: US economy or the US government rather, and the US
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  Speaker 3: government's full faith and credit has been in question for a.
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  Speaker 4: Couple of decades.
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  Speaker 3: Probably this this only solidifies the fact of other other
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  Speaker 3: countries having to say, where else are we going to go?
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  Speaker 4: There's no other place but the US at this point
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  Speaker 4: in time.
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  Speaker 2: Yeah, Tina, there is no alternative. And exactly, and uh,
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  Speaker 2: you know, if they want to park ten billion dollars
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  Speaker 2: over the weekend, sure they'll put it in treasuries or
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  Speaker 2: US bank But if they're looking longer term, they're going
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  Speaker 2: to probably put it in the stock market, aren't they?
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  Speaker 4: Absolutely?
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  Speaker 3: You know. And again this is even further fueling that
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  Speaker 3: K shaped economy that we talk about often. The the
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  Speaker 3: K shaped economy is real. I think it could very
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  Speaker 3: easily be the foreseeable future.
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  Speaker 2: Uh.
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  Speaker 4: You know, there's talk of AI.
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  Speaker 3: And and and what is it the minimum income? What
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  Speaker 3: it's got a fancy name that that I think maybe
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  Speaker 3: even ENI must.
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  Speaker 2: Give it minimum income.
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  Speaker 3: Yeah, and so this this idea that the government is
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  Speaker 3: going to take care of you and you don't have
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  Speaker 3: to work, it's all optional.
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  Speaker 4: All that's going to do is further this case shaped economy.
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  Speaker 3: There are going to be those who own, and they
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  Speaker 3: are going to be those who borrow or rent and
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  Speaker 3: barely get by. And you know, the sad part is,
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  Speaker 3: I don't see anyone really addressing the elephant in the room,
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  Speaker 3: which is how much money our country is actually spending.
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  Speaker 3: It has to be paid back somewhere somehow, and I'm
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  Speaker 3: afraid that the everyday common man is the one that's
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  Speaker 3: going to have to put that bill at some point
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  Speaker 3: in time.
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  Speaker 2: And so basically things are going to kind of continue
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  Speaker 2: on right now as they are until they don't right, you.
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  Speaker 4: Know, I mean, I don't want to pay you to
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  Speaker 4: doom and gloom picture here.
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  Speaker 3: AI has the potential to change not only the financial industry,
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  Speaker 3: but the medical industry. It has a potential to change
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  Speaker 3: our everyday life. I think you're already seeing artificial intelligence
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  Speaker 3: impact every day Americans more and more ways than we
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  Speaker 3: ever were possible just.
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  Speaker 4: Two years ago.
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  Speaker 3: It's much more now than just a chatbot that you
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  Speaker 3: ask a question to Carrie. But what I'm concerned about
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  Speaker 3: is the existential threat that AI poses, and it doesn't
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  Speaker 3: seem as if anyone is really paying attention to that.
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  Speaker 3: The idea that we are freely giving up information on
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  Speaker 3: a daily basis, and this.
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  Speaker 4: Old AI chatbot, the AI.
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  Speaker 3: Revolution has been fueled and created by the information that
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  Speaker 3: we have given it as everyday citizens, and we get
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  Speaker 3: nothing for it in return, no financial incentive, no intellectual incentive,
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  Speaker 3: nothing at that point. And this is concerning to me,
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  Speaker 3: and it doesn't seem to be getting any better. So
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  Speaker 3: I'm not necessarily painting a gram picture. I think this
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  Speaker 3: more than anything, is where we look at our investors
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  Speaker 3: and we say, you've got to be invested because you're
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  Speaker 3: either going to be on the top of that K
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  Speaker 3: shaped economy or you're going to be on the bottom
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  Speaker 3: of that K shaped economy. And we would prefer being top,
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  Speaker 3: which is the owners of assets.
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  Speaker 2: Yeah, it always pays to own assets when when inflation
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  Speaker 2: is rearing its ugly head. But other than the obviously
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  Speaker 2: treasury treasury bonds short term, we're good. But obviously, so
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  Speaker 2: somebody's got some cash, what are you telling him to
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  Speaker 2: do now? Yeah, right now.
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  Speaker 3: If you've got cash that you're wanting to deploy at
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  Speaker 3: this present time, you know, first of all, i'd probably
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  Speaker 3: tell you let's let's let's let uh the Iranian war.
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  Speaker 3: If you don't have cash, it's already in the market
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  Speaker 3: right now. Let's let the Iranian war kind of start
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  Speaker 3: to play out here. It's starting to crank up. What
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  Speaker 3: does that become over the next week or two. Let's
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  Speaker 3: see what earnings finish up with. I've got my eyes
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  Speaker 3: very closely on Micron's earnings.
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  Speaker 4: I think that's going to be the.
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  Speaker 3: Telltale sign as to whether or not this AI boom
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  Speaker 3: has started to hit a little bit of a breather
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  Speaker 3: before it finishes the race throughout the year, or if
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  Speaker 3: it's going.
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  Speaker 4: To continue sprinting. The earning season is about to wrap up.
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  Speaker 3: We've got Oracle today, I've got Adobe tomorrow, and then
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  Speaker 3: at the end of next week, I believe it is
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  Speaker 3: we have got Micron potentially showing their earnings, and we
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  Speaker 3: would love to see how they've done. That could very
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  Speaker 3: easily spar a little bit of optimism. If that's the case,
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  Speaker 3: get involved. But I don't think that you chase semiconductors
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  Speaker 3: here unless you have a long term time horizon in place.
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  Speaker 3: We like an equal weighted index right now because there
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  Speaker 3: is likely going to be some cyclical rotation out of
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  Speaker 3: these semiconductor names into a broader market. If inflation can
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  Speaker 3: get under control big if there, but I do think
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  Speaker 3: over the next three months being equal weighted could very
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  Speaker 3: easily pan out to be been a beneficial move for you.
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  Speaker 2: That reminds me of an old saying if the queen
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  Speaker 2: had a certain anatomy, she'd be the king. Anyway, there's
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  Speaker 2: a family the show, so we can't get too deeply. Well,
• 14:04
  Speaker 2: let's not go there, but I'll tell us. How do
• 14:08
  Speaker 2: we connect with you? How do we find you on
• 14:10
  Speaker 2: the web? And the what should we do?
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  Speaker 3: Yeah, so we we put out a weekly podcast, the
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  Speaker 3: Retirement Matters Podcast. You can find out on any of
• 14:19
  Speaker 3: the podcast streaming services of choice YouTube as well. We
• 14:23
  Speaker 3: have guests on a regular basis. This particular podcast lends
• 14:26
  Speaker 3: there as well. And then the idea that we are
• 14:29
  Speaker 3: all over the national media Fox Business, CNBC kind of
• 14:32
  Speaker 3: giving our voice there is huge. But really what we
• 14:35
  Speaker 3: do more than anything is help retirees who are close
• 14:38
  Speaker 3: to retirement and need that stability in the market. They
• 14:41
  Speaker 3: need income in the market. Urdswealth dot com. It's exactly
• 14:45
  Speaker 3: where you can find us our dswealth dot com. Click there,
• 14:49
  Speaker 3: look around, get some information and if you're interested, give
• 14:51
  Speaker 3: our team a call two seven zero six hundred plan.
• 14:54
  Speaker 4: We'd be happy to help.
• 14:56
  Speaker 2: Excellent showing that links in the show notes to this
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  Speaker 2: interview on Financial Survival Network dot com. Questions comments for
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  Speaker 2: Dale myself, shoot me an email kl at Carrie lets
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  Speaker 2: dot com. Also a question for you out there, is
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  Speaker 2: inflation going higher? Is it just a function of war
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  Speaker 2: or is there uh a more important story that isn't
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  Speaker 2: being told. Let us know kl at Carrie lets dot com.
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  Speaker 2: Send us your opinion. Dale really appreciate you coming on
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  Speaker 2: as always and we will talk to you again soon.
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  Speaker 1: Talk soon, Garry, thanks for having thanks for listening to
• 15:34
  Speaker 1: Carrie Let's this Financial Survival Network your solution to today's
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  Speaker 1: trying times. For the latest, go to Financial Survivalnetwork dot com.
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  Speaker 1: Financial Survival Network now more than ever