Latest / Felix Nikolas Prehn's Podcast / ⚠️$10 Trillion BUY Warning + Stock Market News 23 February 2024

Transcript

⚠️$10 Trillion BUY Warning + Stock Market News 23 February 2024 · Felix Nikolas Prehn's Podcast

• 0:00
  Speaker 1: Felix here, the $10 trillion question is can Nvidia get to $10 trillion?
• 0:06
  Speaker 1: And let me walk you through the numbers.
• 0:08
  Speaker 1: It's not as crazy as it might seem.
• 0:10
  Speaker 1: I also want to walk you through what the Fed said today, because both of those things are going to determine how much money you're going to make, which is what this is all about.
• 0:17
  Speaker 1: Before we get into it, do yourself a favor.
• 0:20
  Speaker 1: Do yourself one little favor, and that is come and learn how you actually make money out of these opportunities, because this is a trading environment wherein you make money out of stockpicking right now and out of trading.
• 0:33
  Speaker 1: So come and learn.
• 0:34
  Speaker 1: I'll teach you, completely for free, my three step beginner trading system exactly how I trade, how I enter, how I exit, how we automate it.
• 0:44
  Speaker 1: All you're going to do is go to FelixFriendsorg slash webinar and grab yourself a free seat.
• 0:49
  Speaker 1: It's completely free.
• 0:50
  Speaker 1: It'll be live on Tuesday when I'm back from this little jungle adventure here.
• 0:54
  Speaker 1: Right, let's walk through.
• 0:56
  Speaker 1: I'm not going to run you through every single data point.
• 0:58
  Speaker 1: If I'm in video, I don't think you need to know them all, but if you really want to know them all, I'll put a video out later with the full details.
• 1:04
  Speaker 1: Essentially, the industry is going to become so big that Nvidia, if they captured all of the demand, would become a 10 drill in your company.
• 1:12
  Speaker 1: Is that likely?
• 1:14
  Speaker 1: Yeah, well, competitors will come in and at the moment they are not anywhere close.
• 1:19
  Speaker 1: Intel is working with Microsoft, and Amazon is working with ARM and other people, and everybody is working on a chip, basically in the big tech sector.
• 1:28
  Speaker 1: But Nvidia is way ahead and the demand continues to exceed expectations because everybody's training their AI models and they know if they don't, they're going to get left behind.
• 1:41
  Speaker 1: So the Zooks and the Elon's and all those guys are buying every Nvidia chip that could ever be made, which is tremendous For Nvidia.
• 1:50
  Speaker 1: They can make a lot of money out of it.
• 1:51
  Speaker 1: How is that going to pan out in the long term?
• 1:54
  Speaker 1: Well, I think for the moment, stock's going to go a lot higher.
• 1:56
  Speaker 1: At some point we're going to hit a point where, yes, they're still going to sell an insane amount of chips, gpus, but the growth will start to slow down a little bit, and that might not be this year, it might not even be next year or something like that.
• 2:10
  Speaker 1: But look at Apple they still sell an enormous amount of iPhones, for example, but it's not growing as quickly.
• 2:19
  Speaker 1: So how does Apple survive with their roughly three trillion valuation by becoming a software business?
• 2:27
  Speaker 1: They're literally bats flying through here and they can do that because they have billions of iPhones installed, essentially with users, and therefore you are going to use seriously lots of little bats flying through here.
• 2:43
  Speaker 1: There's another one Can you see that?
• 2:44
  Speaker 1: I don't know if you can see that and there is another one, and that's tremendous revenue growth and it's very, very profitable.
• 2:55
  Speaker 1: Nvidia is already on that path.
• 2:57
  Speaker 1: They are making software.
• 2:58
  Speaker 1: They are making the software available for free pretty much right now, as long as you have the right Nvidia GPU, and I went through exactly that.
• 3:06
  Speaker 1: I traveled with this laptop here, which was new, and then I came back home a year later literally a year later and my desktop was an older Nvidia chip, so I could no longer use the Nvidia broadcast software that I'd become accustomed to.
• 3:20
  Speaker 1: I had to go out and spend $1,500 or something on a new Nvidia chip, which I did.
• 3:25
  Speaker 1: So they can capture hardware revenue and software revenue and eventually you will be paying and I promise you this.
• 3:35
  Speaker 1: You'll be paying a subscription fee to Nvidia for something in your life.
• 3:38
  Speaker 1: Definitely Everybody will, every business will, and that's to me the real kicker.
• 3:43
  Speaker 1: That's the recurring revenue.
• 3:44
  Speaker 1: That's really what's going to get them to three, maybe four, maybe five trillion, and I think that's very possible at this stage.
• 3:50
  Speaker 1: That's exciting, Very exciting.
• 3:52
  Speaker 1: Nice to be in this space Now.
• 3:56
  Speaker 1: Fed.
• 3:57
  Speaker 1: Should we talk about the Fed for a minute?
• 3:58
  Speaker 1: So the Fed released Fed Minutes and these minutes were the most boring minutes I've ever read.
• 4:10
  Speaker 1: They basically said exactly what we thought they were going to say, so don't bother reading them.
• 4:14
  Speaker 1: One bid was in there, though Two bits actually.
• 4:17
  Speaker 1: Fed President Bauman, who's a voter this year.
• 4:19
  Speaker 1: He said rate cuts are certainly not coming now.
• 4:27
  Speaker 1: The March cut isn't happening.
• 4:30
  Speaker 1: I don't think the May cut's happening.
• 4:31
  Speaker 1: I think it'll happen a little bit later.
• 4:33
  Speaker 1: But there is some light at the end of that tunnel.
• 4:35
  Speaker 1: There is something coming into place which is incredibly tedious, and it's called the Basel Three Rules.
• 4:41
  Speaker 1: There is a global agreement that must have been thought up within the delightful town of Basel in Switzerland, where all the dodgy bankers said sorry, did I say that?
• 4:53
  Speaker 1: The glorious Swiss bankers said and misspoke, obviously, and they determined how much capital you need, how much you can lend out based on that capital, and they're kind of tedious rules around banking and those rules, the new rules, the Basel Three Rules, are coming into force and they will tighten.
• 5:12
  Speaker 1: They make it stricter because they came out as a result of some financial disaster that happened somewhere and the Fed just acknowledged that is going to reduce lending in the US and that means less lending, means less economic activity, means the Fed can cut rates sooner and also somehow come up with some sort of continued support and bailout for their dear friends in Wall Street.
• 5:42
  Speaker 1: Because where do Fed presidents go after they leave the Fed?
• 5:46
  Speaker 1: Yes, to a hedge fund near you to collect a nice pay package.
• 5:50
  Speaker 1: So that's kind of the circular nature of that industry.
• 5:53
  Speaker 1: I'm not implying any corruption.
• 5:55
  Speaker 1: I'm sure it's a wonderful system for those in it.
• 5:58
  Speaker 1: Last but not least, enjoy the rally.
• 6:03
  Speaker 1: Seriously, I think it's gonna go a lot higher.
• 6:05
  Speaker 1: I think it's gonna get a lot better.
• 6:06
  Speaker 1: If you look at the marvelous quality at the moment of tech stocks look at Facebook and Netflix, for example who do you think makes more money per user?
• 6:16
  Speaker 1: And you'd think, okay, netflix, I pay whatever.
• 6:19
  Speaker 1: You pay $19 a month for it or something.
• 6:21
  Speaker 1: I've got a Netflix subscription, but something like that.
• 6:23
  Speaker 1: So you'd think they'd be collecting $200 a year, which they are, but Facebook, which charges you nothing to use.
• 6:31
  Speaker 1: Facebook actually makes more money per user, per free user, than Netflix for their subscription.
• 6:38
  Speaker 1: And that's the power of data, because Facebook knows huge I should say meta.
• 6:44
  Speaker 1: But you get the idea.
• 6:45
  Speaker 1: Meta knows everything you do and everything you just searched pretty much and therefore they can show you very, very relevant ads, and that makes them a lot of money.
• 6:54
  Speaker 1: Google has the same thing.
• 6:56
  Speaker 1: Now, with AI, they will be able to use that data way better and make way more money to show you more relevant ads.
• 7:04
  Speaker 1: So, for example, I bought this microphone and they would know.
• 7:08
  Speaker 1: I booked a flight, and maybe they would know I'm traveling to somewhere windy and then they could give show me an ad for the little windbreaker, for this microphone.
• 7:19
  Speaker 1: Silly example, but you get the idea.
• 7:21
  Speaker 1: That's what they'll be able to do with everything to a degree you've never seen before, and that's the power of AI computing to finally put those things together.
• 7:30
  Speaker 1: And it always baffled me.
• 7:31
  Speaker 1: Say, you walk into a shop, right, and you buy a blue shirt same brand.
• 7:36
  Speaker 1: When they get the new collection in with the new blue shirts in your size, do you ever get a message that says dear Felix, we know you love that blue shirt that you bought three times in the same color.
• 7:48
  Speaker 1: Widow, we have something in stock now same cut, same size.
• 7:52
  Speaker 1: It's a slightly darker blue.
• 7:55
  Speaker 1: Here's a picture of it.
• 7:56
  Speaker 1: I think you'd look really good on it.
• 7:57
  Speaker 1: Shall we send you one, right?
• 8:01
  Speaker 1: I would probably say yes, a lot of people would too, and obviously you can apply this to more complex business, to business situations as well.
• 8:09
  Speaker 1: That's what's going to happen and that's going to make the people who own the data your Google, your Metas, your Microsofts, all those guys way, way, way more valuable.
• 8:19
  Speaker 1: Netflix has a lot of data on you too.
• 8:21
  Speaker 1: They know all the drivel that you watch.
• 8:22
  Speaker 1: They know a lot about you from that.
• 8:23
  Speaker 1: That's, to me, the exciting future.
• 8:29
  Speaker 1: So do two things for yourself.
• 8:31
  Speaker 1: One, yes, keep investing, ideally every week, in good quality stocks.
• 8:35
  Speaker 1: I'd prefer it if you picked stocks than if you bought the index, but if you're starting out by the index and then put some time into it, because your money deserves that, you think about how you invest it.
• 8:46
  Speaker 1: Then, secondly, come to actually really understand the market and learn how to trade.
• 8:51
  Speaker 1: I think a lot of people think, oh, that's crazy, that isn't for me, and all of that.
• 8:55
  Speaker 1: I'm running a beginner life training on Tuesday and I will walk you through every step.
• 9:03
  Speaker 1: But how I get into the trade, how we automate the exits it's automated.
• 9:06
  Speaker 1: I don't stare at screens, I'm on holiday, there is actually barely Wi-Fi here and how we make money out of that.
• 9:12
  Speaker 1: Come and join me, it's completely free.
• 9:14
  Speaker 1: Felix Ranzelok slash webinar on Tuesday.
• 9:16
  Speaker 1: Grab yourself a seat now, before they have grown out, and come and learn with us.
• 9:21
  Speaker 1: That's really what it's all about.
• 9:22
  Speaker 1: Our mission is very simple.
• 9:24
  Speaker 1: We're a bunch of old investor bankers who want to make a million people financially free because we know you deserve what we have.
• 9:31
  Speaker 1: It's going to be fun.
• 9:34
  Speaker 1: I thank you for watching.
• 9:36
  Speaker 1: You know what to do with all the buttons press and push and share and all that kind of stuff.
• 9:39
  Speaker 1: See you soon.