Latest / Felix Nikolas Prehn's Podcast / Felix Prehn - LEAKED: The Bombshell Hitting Palantir, SoFi, Tesla, Nvidia… + Stock Market News 06 December 2024

Transcript

Felix Prehn - LEAKED: The Bombshell Hitting Palantir, SoFi, Tesla, Nvidia… + Stock Market News 06 December 2024 · Felix Nikolas Prehn's Podcast

• 0:00
  Speaker 1: Felix and Tallulah here, and Wall Street is trying to scare you out of your money.
• 0:06
  Speaker 1: Once again, the FUD machine of mainstream media and, my opinion, funded by the lovelies on Wall Street is putting out all this stuff to scare the bejesus out of you, to make sure you sell.
• 0:19
  Speaker 1: Why do they do that?
• 0:20
  Speaker 1: Well, they actually make more money the more active you are.
• 0:23
  Speaker 1: So Tallulah and I who's got a new winter costume today?
• 0:27
  Speaker 1: Look at that.
• 0:27
  Speaker 1: She's got a two-hour outfit.
• 0:31
  Speaker 1: She's feeling much better, which is lovely we're going to walk you through and explain and take apart each of the arguments of the impending doom and collapse and then show you what, in my opinion, is the actual story, the actual opportunities that we have today to make some real money.
• 0:54
  Speaker 1: And that's the prompt for the next 10 minutes or so.
• 0:59
  Speaker 1: And, of course, take your questions and you can ask us anything.
• 1:02
  Speaker 1: And really, what this is all about is this.
• 1:05
  Speaker 1: This is what this is all about Staying in winning trades.
• 1:09
  Speaker 1: You see these three open trades down here.
• 1:12
  Speaker 1: This is in trade vision.
• 1:14
  Speaker 1: We're up 30K on a 30K portfolio.
• 1:17
  Speaker 1: There's a second time this year that we've done that.
• 1:19
  Speaker 1: So we turned 30K into about 90K this year, and we do that by picking winners like SoFi or Tesla or PayPal.
• 1:28
  Speaker 1: Here SoFi is the one that's up the most at the moment 261% and these are intentionally small trades for teaching purposes and knowing when to get in and knowing when to get out, and most people that's why I put the poll up are driven by fear and worry.
• 1:45
  Speaker 1: Oh my God, it's going up so much.
• 1:46
  Speaker 1: Maybe I should get a closeout because otherwise I'll lose all my money and I don't want to do that.
• 1:49
  Speaker 1: And have you ever been in a situation where you felt like that, where you felt like I feel a bit uncomfortable about what's going on here?
• 1:59
  Speaker 1: Maybe there's too much risk?
• 2:00
  Speaker 1: What if I lose my money, like I had that when I first started investing my first $10,000 investment, first money ever earned put it in biotech, you know when In 1999.
• 2:11
  Speaker 1: Speak of great timing, right as I'm making myself a little bit of an electrolyte boost here.
• 2:16
  Speaker 1: And yeah, I lost half that money and I sold it because I panicked.
• 2:22
  Speaker 1: And I want to make sure that you don't do that, because you are better informed and you understand what's going on out there.
• 2:29
  Speaker 1: You understand the motivations of the bastards on Wall Street and sorry, I meant the informed bankers and financial advisors who have your best interest at heart.
• 2:39
  Speaker 1: You know the ones, so let's jump straight into it and I'll walk you through a couple of points here and one by one.
• 2:45
  Speaker 1: I'll try to break it down in a way that makes the most sense, and we'll also look at yep jobs reports.
• 2:52
  Speaker 1: We'll look at that in a moment.
• 2:53
  Speaker 1: No urgency on that because it's a bit of a non-story, but these are the things that are being thrown out, what I'm seeing in mainstream media as to why this party must end the rally, must collapse.
• 3:06
  Speaker 1: So this is, in my opinion, thought item number one.
• 3:09
  Speaker 1: Wall Street banks set a price target for the S&P every year and they get it wrong every year.
• 3:18
  Speaker 1: Somehow those people don't get fired.
• 3:21
  Speaker 1: They just come up with a new target for next year and then they're wrong again.
• 3:24
  Speaker 1: It's a little bit like a fund manager who keeps failing to beat the market and doesn't get fired.
• 3:30
  Speaker 1: Do you know that 95% of fund managers fail to beat the market, 95%?
• 3:38
  Speaker 1: Why is that?
• 3:39
  Speaker 1: They have no incentive to beat it.
• 3:41
  Speaker 1: You know why they don't get fired.
• 3:43
  Speaker 1: Money doesn't leave because you don't know where else to put it right.
• 3:46
  Speaker 1: Most people don't.
• 3:47
  Speaker 1: So it's a really, really weird industry, finance and yes, there are some good eggs.
• 3:51
  Speaker 1: I'm not saying everyone's terrible, but I've been in the industry and I can tell you it's not great.
• 3:55
  Speaker 1: Most people are really really, really not great.
• 3:59
  Speaker 1: So, because we are 25% above the target of these Muppets who are always wrong for the S&P, we therefore think we can't go any higher.
• 4:16
  Speaker 1: Well, they're never right.
• 4:17
  Speaker 1: So to me, this is absolute nonsense.
• 4:19
  Speaker 1: So I would call this FUD, right?
• 4:20
  Speaker 1: Fear, uncertainty.
• 4:20
  Speaker 1: What's the third one?
• 4:21
  Speaker 1: Fud?
• 4:21
  Speaker 1: I can't remember.
• 4:22
  Speaker 1: Basically trying to scare you out of your positions.
• 4:26
  Speaker 1: Now, cathie Wood, yeah, well, they charge pretty high fees.
• 4:34
  Speaker 1: Have you seen how high their fees are?
• 4:35
  Speaker 1: They call them an ETF.
• 4:36
  Speaker 1: It's really a mutual fund that's just wrapped into an ETF, but the fees are extraordinary, extraordinary.
• 4:42
  Speaker 1: Now the other thing is that they're saying companies are growing so much, we're expecting so much growth right now, it can't go any higher.
• 4:54
  Speaker 1: And therefore, the big stocks, the big tech stocks, known as the Magnificent Seven, they will not grow anymore, they'll go down.
• 5:03
  Speaker 1: Do you know?
• 5:05
  Speaker 1: The same people said in like 2005 or something, that Amazon was going to go out of business.
• 5:11
  Speaker 1: Do you know who they said was going to run them out of town?
• 5:14
  Speaker 1: Walmart?
• 5:16
  Speaker 1: Yeah, they just figured out what online delivery is.
• 5:20
  Speaker 1: So you got to come up to a place where you have developed the confidence to spot patterns yourself and have sufficient knowledge so you can look past the headlines and the fuck, and you should have been taught this at school.
• 5:38
  Speaker 1: I mean, everybody should understand this.
• 5:40
  Speaker 1: The most important information out there is how to become financially literate, how to be able to take advantage of the money that you have, make it work for you so you and your children and your family can do whatever the heck you want to do, and nobody in your family ever has to work it.
• 5:56
  Speaker 1: Yet, generation after generation after generation, we all get born and we're like we don't know anything about money.
• 6:02
  Speaker 1: Our parents usually know nothing about money Mine didn't, and it's baffling.
• 6:07
  Speaker 1: And it's, of course, intentional, right, because there's an entire industry that makes money out of our not knowingness and our uncertainty and us going oh my God, well, let's sell right.
• 6:18
  Speaker 1: They make a margin when you sell right.
• 6:21
  Speaker 1: So to me, this is nonsense, because all we are seeing is that the big companies, the big tech companies, are getting more profitable, they're getting growing faster.
• 6:30
  Speaker 1: These are companies that are like 10, 20, 30 years old and they are still growing faster than they were last year and AI is going to make them far more profitable.
• 6:41
  Speaker 1: So, to me, this is FUD item number two complete nonsense.
• 6:54
  Speaker 1: Now, this is the next thing.
• 6:54
  Speaker 1: This is related.
• 6:55
  Speaker 1: They're saying that profits, again, are priced in.
• 6:56
  Speaker 1: It can't go any higher because everybody's expecting that in 2025, we're going to have record earnings.
• 7:03
  Speaker 1: And we have record earnings.
• 7:04
  Speaker 1: Well, they must come crashing down.
• 7:08
  Speaker 1: Well, we are in this very, very unique situation which we literally haven't seen since the 1920s.
• 7:15
  Speaker 1: Really, the 1920s is we have a tech revolution, so we have new tech that we haven't had before that makes everything better.
• 7:26
  Speaker 1: It's called AI.
• 7:27
  Speaker 1: It's the equivalent of the internet, or you know, the motorized car and electricity in every household, the steam engine, you know that kind of thing, one of those, true, like shifts of a generation.
• 7:41
  Speaker 1: It's AI.
• 7:43
  Speaker 1: And then what else do you have?
• 7:44
  Speaker 1: Well, you've got more money than ever.
• 7:47
  Speaker 1: Why?
• 7:48
  Speaker 1: Because the Fed and all the central banks in the world were printing money like absolute freaking idiots during COVID, undoubtedly encouraged by all the pharma billionaires.
• 8:00
  Speaker 1: At least, that's my humble opinion.
• 8:01
  Speaker 1: I think the whole thing was a money-making exercise, honestly.
• 8:04
  Speaker 1: But we digress and YouTube isn't that open to that kind of digression yet.
• 8:09
  Speaker 1: So we shall stay on topic here so we don't get removed.
• 8:13
  Speaker 1: And what are they doing right now, central banks?
• 8:15
  Speaker 1: They're cutting interest rates.
• 8:17
  Speaker 1: You know what happens when you cut interest rates?
• 8:18
  Speaker 1: More money flows into the stock market.
• 8:22
  Speaker 1: Why?
• 8:22
  Speaker 1: Because you lower the money you make from bonds, because you get less interest.
• 8:29
  Speaker 1: So what does the money therefore do?
• 8:31
  Speaker 1: Well, the money goes well.
• 8:33
  Speaker 1: I want to go where I make the most money.
• 8:35
  Speaker 1: I want to go where you know the beach is the best, the girls are the hottest, that kind of thing.
• 8:39
  Speaker 1: That's how money thinks, and money therefore flows back into stocks.
• 8:43
  Speaker 1: And there are, at the moment, $7 trillion in some sort of form of bond instrument $7 trillion.
• 8:53
  Speaker 1: Think about that Crazy Fear, uncertainty and doubt.
• 9:02
  Speaker 1: Thank you very much, my friend.
• 9:03
  Speaker 1: So to me again, this is fun, it's nonsense.
• 9:06
  Speaker 1: Just because a company is becoming a lot more profitable doesn't mean it can't be a lot more profitable.
• 9:11
  Speaker 1: Think about it this way have you ever bought a stock that's gone up from I don't know 10 to 15?
• 9:16
  Speaker 1: You sold because you're like I'm up 50% and then it went to 20, and then to 25, and then to 30, it went to 50.
• 9:21
  Speaker 1: I mean, look at Palantir, for example, right, or the other way around Just because something has happened doesn't mean it can't continue happening.
• 9:28
  Speaker 1: It's just nonsense.
• 9:32
  Speaker 1: And then they keep throwing this out.
• 9:34
  Speaker 1: They're saying there is this concentration, that the whole stock market is held up only by 10 stocks.
• 9:41
  Speaker 1: Right, and that's true.
• 9:43
  Speaker 1: It's true.
• 9:44
  Speaker 1: The top 10 stocks are everything.
• 9:47
  Speaker 1: Right.
• 9:47
  Speaker 1: The top 10 stocks are at the moment, what is it?
• 9:52
  Speaker 1: 38% of the market or something like that.
• 9:54
  Speaker 1: And you might think that's very scary.
• 9:57
  Speaker 1: What if something terrible happens at Microsoft or Nvidia or Apple or something?
• 10:00
  Speaker 1: But the Do you know?
• 10:03
  Speaker 1: People talk about inequality and they say inequality is terrible.
• 10:06
  Speaker 1: And, yes, it's not pretty, I agree with you.
• 10:08
  Speaker 1: But inequality is actually a natural law because the top 10 take all the action, they make the smart decisions, they take the risk, they learn, they study, they get better, and the bottom 90 don't.
• 10:26
  Speaker 1: And that's actually why you get inequality.
• 10:30
  Speaker 1: Now, sure, there's corruption and there's other things.
• 10:32
  Speaker 1: I'm not saying there isn't that.
• 10:33
  Speaker 1: But fundamentally, if you took all the money away from everybody and gave it out equally, I guarantee you 10 years later you'd have exactly the same distribution again that you have right now.
• 10:44
  Speaker 1: And why is that?
• 10:45
  Speaker 1: It's mindset, it's skill, that's largely what it is.
• 10:49
  Speaker 1: So you can control both of those things.
• 10:53
  Speaker 1: Whether you are in the top 10 or whether you're in the bottom 90 is a choice, and I know that isn't very nice to hear.
• 10:59
  Speaker 1: When I was first told that, I was like that's a bit harsh because I wasn't in the top 10.
• 11:02
  Speaker 1: And well, then I met some people who were very wealthy.
• 11:06
  Speaker 1: Like I have friends who are billionaires and they're like whether you're in the top 0.01% or whether you're in the top 1%, which to them is a problem I say that's a choice and I'm like, wow, that's a bit harsh.
• 11:17
  Speaker 1: But there is a lesson in that.
• 11:19
  Speaker 1: And the great companies have the greatest management.
• 11:24
  Speaker 1: They have the greatest staff, the greatest engineers, they get the greatest management.
• 11:26
  Speaker 1: They have the greatest staff, the greatest engineers, they get the greatest technology, they have the most money, they have access to most funding.
• 11:32
  Speaker 1: If Nvidia tomorrow wants $100 billion or Elon wants to borrow $100 billion, he just goes to the market and says I'd like $100 billion and everyone's like can we give you $200?
• 11:42
  Speaker 1: Because he's in the top 10.
• 11:44
  Speaker 1: So this is just natural and this should actually continue as long as the top 10.
• 11:45
  Speaker 1: So this is just natural and this should actually continue as long as the top 10 stocks are profitable companies that are well run.
• 11:53
  Speaker 1: There'll be a little bit of a change, but actually this will continue, so I don't think this is a problem.
• 11:58
  Speaker 1: So again, the fact that this is a problem, fuck right.
• 12:02
  Speaker 1: Fear, uncertainty.
• 12:03
  Speaker 1: And what was the third one?
• 12:04
  Speaker 1: I keep forgetting it.
• 12:07
  Speaker 1: Someone wrote it out just now.