Latest / Felix Nikolas Prehn's Podcast / Felix Prehn - Leaked: THEY Now Control the FED (Most Aren’t Ready) + Stock Market News 05 February 2026

Transcript

Felix Prehn - Leaked: THEY Now Control the FED (Most Aren’t Ready) + Stock Market News 05 February 2026 · Felix Nikolas Prehn's Podcast

• 0:00
  SPEAKER_00: It's not crazy to suggest that that Stan Druckenmiller might be the most influential financial mind in the American economy right now.
• 0:09
  SPEAKER_00: One guy on Wall Street now controls the two most powerful people in financial markets.
• 0:15
  SPEAKER_00: Not the president, not Congress, one billionaire investor you've probably never heard of.
• 0:22
  SPEAKER_00: And what he does next could either protect your retirement or absolutely wreck it.
• 0:28
  SPEAKER_00: So I'm going to show you what's really going on here, what you don't read about in mainstream media because, well, you know, they don't want to unsettle you now, do they?
• 0:36
  SPEAKER_00: So here's the situation: Stanley Druck and Miller, one of the most successful investors in history, 30% returns for three decades straight, never had a losing year.
• 0:48
  SPEAKER_00: His two proteges just took over the United States economy.
• 0:53
  SPEAKER_00: Kevin Walsh, the new Fed chair, he worked for Druck and Miller for over a decade.
• 1:00
  SPEAKER_00: Scott Bessant, who is the Treasury Secretary, he was hired by Druck and Miller 30 years ago.
• 1:06
  SPEAKER_00: They worked together ever since.
• 1:09
  SPEAKER_00: Both guys talked to Druck and Miller multiple times a day.
• 1:14
  SPEAKER_00: I don't speak to my parents that often.
• 1:17
  SPEAKER_00: And it means one investor's view of markets as going to shape all US economic policy and your portfolio.
• 1:25
  SPEAKER_00: My name is Felix Primer for my investment banker.
• 1:28
  SPEAKER_00: That bank there is Winston, who sniffed out all the research and all the puppet string connections here.
• 1:34
  SPEAKER_00: And I'm also the founder of the GOAT Academy, where my mentors have taught over 20,000 students how to protect their wealth better.
• 1:43
  SPEAKER_00: I'm also the co-founder of TradeVision.io, where we keep regular people like you and me informed of what's actually moving your stocks.
• 1:51
  SPEAKER_00: There's a free trial link down below if you want to check that out.
• 1:54
  SPEAKER_00: And I used to be a regular investor like you, and then I was lucky enough to learn the job in banking.
• 1:59
  SPEAKER_00: And now I have this mission to spread financial education to the world by giving people access to my mentors.
• 2:05
  SPEAKER_00: So for this video, Winston's gone really deep.
• 2:08
  SPEAKER_00: He literally went through Druckenmiller's entire investment philosophy, looked at all its relationships, particularly with Walsh and Pessent, and looked at what this concentration of power actually means for your money.
• 2:21
  SPEAKER_00: So we will be breaking down here three things for you today.
• 2:24
  SPEAKER_00: Who the heck is Stanley Druckenmiller?
• 2:27
  SPEAKER_00: What does he do?
• 2:28
  SPEAKER_00: What does it matter?
• 2:29
  SPEAKER_00: And what does proteges in power mean for rates, inflation, and which stocks to own?
• 2:37
  SPEAKER_00: And how this investment lesson can help you protect and grow your money potentially.
• 2:42
  SPEAKER_00: So by the end, you understand the biggest power shift in modern finance and exactly what to do about it.
• 2:49
  SPEAKER_00: And maybe you're thinking, why does this matter to me?
• 2:51
  SPEAKER_00: Maybe no Wall Street is all, you know, this stuff.
• 2:54
  SPEAKER_00: Well, the Fed controls interest rates.
• 2:57
  SPEAKER_00: That affects your mortgage, your savings account, your 401k, your portfolio, what your stocks are worth.
• 3:03
  SPEAKER_00: The Treasury Department controls government spending, taxes.
• 3:08
  SPEAKER_00: And together, these two institutions control basically the entire US economy.
• 3:13
  SPEAKER_00: Normally, the Fed and the Treasury are supposed to be independent.
• 3:17
  SPEAKER_00: They check on each other, balance of power and all that good stuff.
• 3:20
  SPEAKER_00: But here's what just happened: the president nominated Kevin Walsh, Druck and Miller's guy, to run the Fed.
• 3:27
  SPEAKER_00: And he appointed Scott Bessent, also Druck and Miller's guy, to run the Treasury.
• 3:32
  SPEAKER_00: So these aren't just sort of professional connections.
• 3:34
  SPEAKER_00: We're talking about father and son dynamics here.
• 3:37
  SPEAKER_00: Bessant worked with Druckenmiller for 30 plus years.
• 3:40
  SPEAKER_00: They got rich together, shorting the British pound in 1992.
• 3:44
  SPEAKER_00: Walsh joined Druck and Miller's family office in 2011 and spent a decade learning the markets from Druckenmiller directly.
• 3:54
  SPEAKER_00: And get this.
• 3:54
  SPEAKER_00: Druckenmiller himself said he's really excited about the partnership between Walsh and Bessett.
• 4:03
  SPEAKER_00: I quote here, having an accord between the Treasury Secretary Territory and the Fed chair is ideal.
• 4:09
  SPEAKER_00: Ideal for whom, I ask.
• 4:12
  SPEAKER_00: And you can answer that yourself, because of course without making any accusations here.
• 4:16
  SPEAKER_00: Drucken Miller undoubtedly has your family at heart and the well-being of society and puppies and all that stuff, right?
• 4:27
  SPEAKER_00: That's obviously what he's in it for.
• 4:29
  SPEAKER_00: That's why you join Wall Street because you care about the little guy.
• 4:33
  SPEAKER_00: So maybe some of you think, look, Trump's just appointing two really smart people.
• 4:37
  SPEAKER_00: They happen to learn from the same guy who's one of the most successful investors out there.
• 4:41
  SPEAKER_00: Surely that's good, right?
• 4:42
  SPEAKER_00: All right.
• 4:43
  SPEAKER_00: There's a problem with that, though.
• 4:44
  SPEAKER_00: It's a fair point to think in that, but Jucca Miller is a billionaire hedge fund manager.
• 4:49
  SPEAKER_00: His interests are not your interests.
• 4:52
  SPEAKER_00: What's good for him?
• 4:53
  SPEAKER_00: High inflation that boosts asset prices might destroy your savings account, your income, right?
• 4:59
  SPEAKER_00: Your pension.
• 5:00
  SPEAKER_00: Second, the Fed is supposed to be independent for a reason because when one person's ideology and financial motivation controls both monetary policy, which is money printing and interest rates, and fiscal policy, which is how much we spend and how much we tax, there is no check on bad decisions.
• 5:20
  SPEAKER_00: There's no balance.
• 5:21
  SPEAKER_00: It's all gas pedal, no breaks.
• 5:24
  SPEAKER_00: And third, and this is the big one, Druckenmiller has a very specific view on inflation, government debt, and interest rates.
• 5:32
  SPEAKER_00: He's been calling for aggressive action to fight inflation.
• 5:37
  SPEAKER_00: He's been comparing what we need to what Paul Volcker did in the 1980s.
• 5:42
  SPEAKER_00: He raised interest rates to 20%.
• 5:44
  SPEAKER_00: So if Walsh follows that playbook, well, your stocks could crash.
• 5:48
  SPEAKER_00: If Besson follows that playbook on the fiscal side, government spending cuts, higher taxes, the economy could slow down.
• 5:56
  SPEAKER_00: And well, maybe, just maybe, they're not going to follow that playbook.
• 6:00
  SPEAKER_00: Maybe they cut rates to help pump the president's popularity, sorry, I mean the economy.
• 6:09
  SPEAKER_00: And then you might get high inflation and overvalued stocks, which isn't really ideal for most people either.
• 6:17
  SPEAKER_00: So let me tell you a little bit about who our friend Stan really is, because his track record is insane.
• 6:25
  SPEAKER_00: From 1988, I was eight years old, to 2010.
• 6:30
  SPEAKER_00: For 22 years, he managed money for George Soros.
• 6:35
  SPEAKER_00: Yes, that lovely chap who has only the well-being of the little man at.
• 6:42
  SPEAKER_00: And also the quantum fund.
• 6:44
  SPEAKER_00: And he ran his own fund called Du Cresnu Capital, I don't know how to pronounce that.
• 6:48
  SPEAKER_00: You guys can tell me in the chat.
• 6:50
  SPEAKER_00: And in that time, he averaged a 30% annual return in about a single losing year.
• 6:54
  SPEAKER_00: Not one, right?
• 6:55
  SPEAKER_00: So put that in perspective.
• 6:57
  SPEAKER_00: If you gave the guy$10,000 in 1988, he would have given you back$1.5 million 22 years later, just from the returns.
• 7:05
  SPEAKER_00: He didn't put an additional cent in them.
• 7:08
  SPEAKER_00: And what's he most famous for, I'm instance leaving the room of the mention of Soros, in 1992, he and Soros shorted the British pound.
• 7:19
  SPEAKER_00: They bet billions that the UK couldn't maintain its currency peg.
• 7:24
  SPEAKER_00: And they were right.
• 7:24
  SPEAKER_00: Bank of England collapsed, they made over a billion dollars in profit.
• 7:28
  SPEAKER_00: People called it the trade that broke the Bank of England.
• 7:32
  SPEAKER_00: And I'm sure that was for the general well-being of the little guy in the UK, right?
• 7:40
  SPEAKER_00: And he also profited from the dot-com crash along.
• 7:44
  SPEAKER_00: The 2008 financial crisis was also good for him, and lots of market cycles since.
• 7:48
  SPEAKER_00: So the guy doesn't guess.
• 7:50
  SPEAKER_00: He's very good at reading macroeconomic trends.
• 7:54
  SPEAKER_00: Now he's retired from managing money, but he runs his own money as a family office.
• 7:59
  SPEAKER_00: Just his own wealth's got plenty of it.
• 8:02
  SPEAKER_00: But he's still one of the most influential voices on Wall Street.
• 8:04
  SPEAKER_00: People listen when he talks.
• 8:06
  SPEAKER_00: And his two proteges, the guys he trained and are now running the United States, well, they've got all the power now.
• 8:13
  SPEAKER_00: And you might think, well, this guy must obviously be very smart.
• 8:16
  SPEAKER_00: Of course he is.
• 8:17
  SPEAKER_00: But it's not whether it's not about whether Walsh and Besseter qualified.
• 8:22
  SPEAKER_00: They clearly are.
• 8:23
  SPEAKER_00: The issue is concentration of power.
• 8:26
  SPEAKER_00: One person's view, no matter how brilliant, shouldn't really control the Fed and the Treasury.
• 8:34
  SPEAKER_00: And here's the other thing, no one's really talking about.
• 8:36
  SPEAKER_00: Rocken Miller's investment strategy is all about what?
• 8:40
  SPEAKER_00: Flexibility.
• 8:42
  SPEAKER_00: He's famous for changing his mind fast.
• 8:45
  SPEAKER_00: You go from bullish to bearish overnight if the data shifts, he's a flipper.
• 8:49
  SPEAKER_00: He's not a diamond handler or hodler, as some of you might be.
• 8:53
  SPEAKER_00: And that's what you need when you want to manage a hedge fund very well.
• 8:56
  SPEAKER_00: I don't know how to lose in year.
• 8:58
  SPEAKER_00: But central banking and government policy, they usually need more stability, predictability, longer-term thinking.
• 9:06
  SPEAKER_00: So you've got a situation here where the two guys trained by a hyper flexible hedge fund trader are now running institutions that need to be steady and reliable.
• 9:16
  SPEAKER_00: And that worries me a little bit.
• 9:18
  SPEAKER_00: Markets hate uncertainty, you see.
• 9:21
  SPEAKER_00: Now, I know we're going to cover a lot here today.
• 9:23
  SPEAKER_00: We're going to cover the actual sectors and a ton of other stuff.
• 9:26
  SPEAKER_00: So I've put together a workbook for you.
• 9:27
  SPEAKER_00: You can get that for free.
• 9:29
  SPEAKER_00: Go to our free community, FelixFensel.org slash research resource and download it.
• 9:34
  SPEAKER_00: And I'm also going to do one better for you because I really want you to get value out of this.
• 9:37
  SPEAKER_00: This is not a doom and gloom video about fear mongering around the Fed and so on.
• 9:42
  SPEAKER_00: It's not a political statement either.
• 9:43
  SPEAKER_00: It's just about how do we profit from this?
• 9:46
  SPEAKER_00: How do we protect ourselves?
• 9:47
  SPEAKER_00: So I'm also going to run a live training session for you on Saturday.
• 9:52
  SPEAKER_00: So link down below, FelixFriends.org slash training.
• 9:55
  SPEAKER_00: And what am I going to teach you?
• 9:56
  SPEAKER_00: I'm going to teach you Wall Street's own rules for how they pick stocks in this kind of fluid world that we are now in in 2026.
• 10:05
  SPEAKER_00: So you're going to join me for that.
• 10:06
  SPEAKER_00: Again, free of charge, FelixFriends.org slash training.
• 10:10
  SPEAKER_00: Register.
• 10:11
  SPEAKER_00: Be on time.
• 10:12
  SPEAKER_00: We've got 5,000 people already signed up for that.
• 10:15
  SPEAKER_00: We're going to close the door shortly on that.
• 10:18
  SPEAKER_00: So sign up now and be early, because it'll probably be oversubscribed and not everybody will get into the room.
• 10:24
  SPEAKER_00: We've had that before.
• 10:26
  SPEAKER_00: But let me dive a little deeper for you into Drucken Miller's philosophy, the investment lessons, and what Walsh and Besset will actually do.
• 10:35
  SPEAKER_00: So again, the workbook will help you a lot with actually absorbing all of that.
• 10:39
  SPEAKER_00: But let's break that down.
• 10:41
  SPEAKER_00: So Stan the Miller started in finance in the 70s.
• 10:45
  SPEAKER_00: Very smart guy, not some Ivy League chap.
• 10:48
  SPEAKER_00: He worked his way up.
• 10:49
  SPEAKER_00: By 88, George Soros, one of the richest investors in the world and one of the kindest, sweetheartest, you know, mindset anyway.
• 10:59
  SPEAKER_00: You know, Soros, the devil hired to run the quantum fund.
• 11:04
  SPEAKER_00: And that's when the legend sort of started.
• 11:06
  SPEAKER_00: Druckenmiller wasn't just good, he was just great.
• 11:10
  SPEAKER_00: 30% average returns for decades.
• 11:13
  SPEAKER_00: And Buffett, by the way, managed about 20% averages of his career.
• 11:18
  SPEAKER_00: The SP 500 is about 10%.
• 11:20
  SPEAKER_00: So Drucken Miller basically tripled the market returns for 30 years straight, which is just insanity of 22 years or whatever.
• 11:27
  SPEAKER_00: So how does he do it?
• 11:28
  SPEAKER_00: He's a global macro investor.
• 11:31
  SPEAKER_00: That means he looks at the entire world, currencies, interest rates, government policy, commodity prices, and he finds the big trends before other people see it.
• 11:40
  SPEAKER_00: He's not buying stocks because he likes a company.
• 11:42
  SPEAKER_00: He's buying or shorting based on where he thinks everything is headed.
• 11:47
  SPEAKER_00: And he's famous for essentially three things.
• 11:50
  SPEAKER_00: One, he changes his mind really quickly.
• 11:52
  SPEAKER_00: The data shifts, he shifts, no ego, no sort of conviction, no, you know, no kind of STDs on that front.
• 12:00
  SPEAKER_00: And he just follows the trend.
• 12:02
  SPEAKER_00: And I'm I'm very much with him on that because I think people just fall in love with stocks and CEOs, and it just gets in the way of things.
• 12:09
  SPEAKER_00: And then he makes huge, concentrated bets when he's confident.
• 12:13
  SPEAKER_00: So he sees an opportunity, he doesn't nibble, he goes full all in.
• 12:17
  SPEAKER_00: That's how he made a billion dollars and you know, single day on the pound sterling.
• 12:22
  SPEAKER_00: And third, he's obsessed with risk management.
• 12:24
  SPEAKER_00: So he makes these big bets, bets, but he never blows up.
• 12:27
  SPEAKER_00: He just stop losses, he hedges his positions, he protects his capital.
• 12:31
  SPEAKER_00: It's like that's his religion.
• 12:32
  SPEAKER_00: So you've got a guy who's aggressive and cautious at the same time, which sounds odd, but that's kind of the genius part.
• 12:38
  SPEAKER_00: Now let's talk about Kevin, the new Fed chair Walsh, and his relationship with Joker Miller.
• 12:44
  SPEAKER_00: Kevin Walsh was a Fed governor from 2006 to 2011, the youngest Fed governor in history at age 35.
• 12:52
  SPEAKER_00: He was there during the 2008 financial crisis.
• 12:55
  SPEAKER_00: He worked directly with Ben Bananki and was the Fed's main liaison to Wall Street.
• 13:02
  SPEAKER_00: Yeah, the Fed has a liaison to Wall Street.
• 13:05
  SPEAKER_00: At first, Walsh supported all these crisis measures, like you know, the money printing, bailing out banks, all that stuff.
• 13:12
  SPEAKER_00: But then he turned and he started warning that the Fed was printing too much money, it was risking inflation.
• 13:18
  SPEAKER_00: And he resigned in 2011.
• 13:20
  SPEAKER_00: He was frustrated.
• 13:21
  SPEAKER_00: He thought the Fed had gone too far with all the money printing and all bailing out all the bankers, so he left.
• 13:26
  SPEAKER_00: And when he left, Druck and Miller Hart and to run his family office, his personal wealth.
• 13:33
  SPEAKER_00: So maybe he wasn't frustrated, maybe he just left for a better paycheck, or just the same hypothesis.
• 13:39
  SPEAKER_00: So this was like real mentorship, not just working for the guy, but managing his personal money.
• 13:45
  SPEAKER_00: It was a decade-long education on how markets work.
• 13:49
  SPEAKER_00: So, yes, Walsh spent five years at the Fed, you know, dealing with all that stuff, the academic side, and then he spent 10 years with Druck and Miller to see how actual trading works, how money moves, how investors make decisions in real time.
• 14:01
  SPEAKER_00: And people close to them describe their relationship as father-son.
• 14:05
  SPEAKER_00: They talk constantly, apparently more than a dozen times a day with chords, texts, and you know, all that sort of stuff.
• 14:12
  SPEAKER_00: One analyst said Walsh's time with Druckenmiller was like a curriculum curriculum, a complete education and global macro investing, you can't get anywhere else.
• 14:22
  SPEAKER_00: So, what does Druck and Miller say about Walsh when Trump nominated him for the third challenge?
• 14:27
  SPEAKER_00: Druckenmiller literally went public with his endorsement.
• 14:32
  SPEAKER_00: And he said in an interview with the FT, the Financial Times, you know, those lunatic love is out of London, he said, I could not think of a single other individual on the planet better equipped than anyone on the planet.
• 14:45
  SPEAKER_00: Pretty strong endorsement.
• 14:47
  SPEAKER_00: And then he said something really that caught my eye.
• 14:49
  SPEAKER_00: Now, markets initially labeled Walsh as a hawk.
• 14:54
  SPEAKER_00: What's a hawk?
• 14:54
  SPEAKER_00: Hawk is someone who's gonna raise interest rates aggressively, fight inflation, right?
• 14:59
  SPEAKER_00: Destroy the economy in the process.
• 15:00
  SPEAKER_00: But Drockenmiller said, the branding of Kevin as someone who's always hawkish is not correct.
• 15:07
  SPEAKER_00: I've seen him go both ways.
• 15:09
  SPEAKER_00: Meaning Walsh isn't locked into one ideology.
• 15:12
  SPEAKER_00: He's learned from Jucken Miller to like go over the flow.
• 15:14
  SPEAKER_00: He's flexible, he adapts, right?
• 15:16
  SPEAKER_00: Just like Juckenmiller.
• 15:17
  SPEAKER_00: And then Drockenmiller said, and this is important, I'm really excited about the partnership with between Walsh and Bessant, having an accord between the Treasury and the Fed.
• 15:29
  SPEAKER_00: It's ideal.
• 15:30
  SPEAKER_00: So coordination.
• 15:32
  SPEAKER_00: Two Drockenmiller proteges working together, which is what he wants.
• 15:36
  SPEAKER_00: Because it gives them the ultimate influence, the ultimate power.
• 15:39
  SPEAKER_00: Right?
• 15:39
  SPEAKER_00: So, what's Walsh gonna do?
• 15:41
  SPEAKER_00: What's the new Fed gonna do?
• 15:42
  SPEAKER_00: What does it mean for you?
• 15:44
  SPEAKER_00: Well, here's my read.
• 15:45
  SPEAKER_00: On interest rates, Walsh has said he's gonna lower them.
• 15:49
  SPEAKER_00: They should come down.
• 15:50
  SPEAKER_00: Why?
• 15:51
  SPEAKER_00: Because he says AI is going to drive up productivity and it's going to lower inflation, as it'll be cheaper to make things thanks to AI.
• 16:02
  SPEAKER_00: Now that's good for stocks, at least in the short term.
• 16:05
  SPEAKER_00: But he does not like that the Fed has printed so much money, right?
• 16:09
  SPEAKER_00: They've been printing all this money.
• 16:12
  SPEAKER_00: He thinks that Fed balance sheet should be smaller.
• 16:15
  SPEAKER_00: Now, what happens when you shred money?
• 16:17
  SPEAKER_00: It's bad for stocks.
• 16:19
  SPEAKER_00: So you've got these weird signals, you're gonna have lower interest rates, woo, and then you've got money shredding, and you're like, oh no, right?
• 16:25
  SPEAKER_00: So which side of that is gonna be bigger?
• 16:29
  SPEAKER_00: And that's the uncertainty.
• 16:31
  SPEAKER_00: Now, a word on Scott Besson, and then we talk about the actual sectors and stocks and so on.
• 16:35
  SPEAKER_00: Because Scott Besson is the other half of this power deal, right?
• 16:38
  SPEAKER_00: Besson's background, finance for decades, Druckenmiller heightened to uh the quantum fund, right, which is where Druckenmiller worked for Soros.
• 16:46
  SPEAKER_00: So you had Soros at the top, Druckenmiller running the day-to-day, and then Besson learning from both.
• 16:52
  SPEAKER_00: They worked together, as I said, in that pound trade in 92.
• 16:55
  SPEAKER_00: And when Bessend left Druckenmiller, he started his own hedge fund called Key Square Group, again with backing from Soros.
• 17:02
  SPEAKER_00: That guy's got his fingers and everything, right?
• 17:04
  SPEAKER_00: Made his own fortune, built his own track record, but he nevertheless lost the Druckenmiller connection.
• 17:09
  SPEAKER_00: Never went away.
• 17:10
  SPEAKER_00: They remained very close.
• 17:11
  SPEAKER_00: That's sort of father-son dynamic, just like with Walsh.
• 17:14
  SPEAKER_00: So what does that really mean?
• 17:16
  SPEAKER_00: Well, Bessend thinks like a trader.
• 17:18
  SPEAKER_00: So he's not gonna spook the market, right?
• 17:21
  SPEAKER_00: He wants to like be a smooth operator.
• 17:23
  SPEAKER_00: And all these guys are very wealthy.
• 17:24
  SPEAKER_00: They have a lot of money in the market, they don't want the market to tack, right?
• 17:27
  SPEAKER_00: And that's something to think about when you, if you're sitting on the sidelines, you're like, oh, this market's scary, I'm just gonna wait it out.
• 17:33
  SPEAKER_00: Well, you've got billionaires running this, they're all billionaires, right?
• 17:36
  SPEAKER_00: The whole lot of them.
• 17:37
  SPEAKER_00: But Besson's got a pretty shitty job.
• 17:38
  SPEAKER_00: He manages$35 trillion of debt and gotta figure out how to make that sustainable, which it of course isn't, right?
• 17:46
  SPEAKER_00: Now, what are they gonna do?
• 17:48
  SPEAKER_00: Well, in my humble opinion, they're gonna keep the dollar weak, lower interest rates will be good for that.
• 17:53
  SPEAKER_00: It'll help American businesses, right?
• 17:55
  SPEAKER_00: It will be good for what?
• 17:56
  SPEAKER_00: Gold, silver commodities, generally speaking, arguably for international stocks, but uh I'm a little bit fishy about stocks that are listed in, you know, um sort of tin pod hot economies like uh so I think the smartest thing we can do with our remaining time here is to learn what we can learn from Druckenmiller.
• 18:16
  SPEAKER_00: And that way you'll be better positioned to make better decisions for this year and the coming years.
• 18:22
  SPEAKER_00: So, what are we thinking about?
• 18:23
  SPEAKER_00: Well, you've got to start with the big picture.
• 18:25
  SPEAKER_00: You gotta understand rates, currencies, and government policy.
• 18:29
  SPEAKER_00: And then you gotta ask yourself, well, which sectors actually benefit here?
• 18:32
  SPEAKER_00: So, my belief is interest rates are gonna come down.
• 18:35
  SPEAKER_00: Now, who benefits the most from lower interest rates?
• 18:38
  SPEAKER_00: Well, non-profitable tech stocks.
• 18:41
  SPEAKER_00: The loony bin of investing.
• 18:43
  SPEAKER_00: Yeah, so sort of arc is probably gonna make a comeback.
• 18:45
  SPEAKER_00: You know, Kathy Woods with her uh bets on anything that looks really, really insanely risky.
• 18:51
  SPEAKER_00: That's the sort of stuff that typically does well.
• 18:53
  SPEAKER_00: Now, the second lesson, and of course gold and silver, because we'd expect inflation.
• 18:59
  SPEAKER_00: Second thing is change your mind.
• 19:01
  SPEAKER_00: Like Drugamilla doesn't marry his ideas, he sort of dates them loosely.
• 19:06
  SPEAKER_00: And that's a good thing to do with money, not with the better half of your life, I'm not suggesting that.
• 19:12
  SPEAKER_00: But say in 1999 he was bullish on tech stocks.
• 19:14
  SPEAKER_00: He wrote the.com boom, he made a fortune.
• 19:16
  SPEAKER_00: In early 2000s, he saw signs of the bubble, he sold, he got out before the crash.
• 19:20
  SPEAKER_00: Did he care about looking wrong?
• 19:22
  SPEAKER_00: Did he care that he'd been super bullish just months earlier?
• 19:25
  SPEAKER_00: Nope, the data changed, he changed.
• 19:27
  SPEAKER_00: Most retail investors do the opposite.
• 19:30
  SPEAKER_00: They buy a stock, it goes down, and they hold on because I believe in this stock.
• 19:34
  SPEAKER_00: Or I don't want to admit that I was wrong, right?
• 19:37
  SPEAKER_00: Which is ego.
• 19:38
  SPEAKER_00: Ego destroys portfolios.
• 19:40
  SPEAKER_00: Join me on Saturday and we're gonna fix that for you, by the way.
• 19:43
  SPEAKER_00: So, how do you apply this?
• 19:44
  SPEAKER_00: You've got to set rules for when you're wrong.
• 19:47
  SPEAKER_00: Maybe it's stock dropping 10% or moving to a certain moving average line, or you know, it can be a little bit more complex than that.
• 19:54
  SPEAKER_00: But we have rules.
• 19:56
  SPEAKER_00: Hope is just not part of a story.
• 19:59
  SPEAKER_00: And that's one of the big things I see on the thousands portfolios that I've reviewed, my mentors have reviewed.
• 20:04
  SPEAKER_00: That's the mistake most people make.
• 20:06
  SPEAKER_00: And when you're confident, you make bigger bets.
• 20:10
  SPEAKER_00: When he's highly confident, he doesn't nibble, he really loads up, right?
• 20:15
  SPEAKER_00: Now, I actually see most investors make bigger bets when they're confident, but their confidence isn't based on anything real, it's just based on everyone else's doing it, which is usually when it's when it's a little bit too late, by the way.
• 20:31
  SPEAKER_00: So, again, we're gonna fix that.
• 20:32
  SPEAKER_00: We're gonna give you Wall Street's three rules if you join me on Saturday.
• 20:35
  SPEAKER_00: Why am I not giving you these right now?
• 20:36
  SPEAKER_00: Because it would make this into a two-hour video, which would be silly.
• 20:40
  SPEAKER_00: So, the most important part of what makes Drucken Miller one of the greatest investors out there.
• 20:45
  SPEAKER_00: Not as famous as Buffett, I get it, but actually, he was a better investor for that period of time.
• 20:51
  SPEAKER_00: Risk management, it's everything.
• 20:53
  SPEAKER_00: Stop losses are the religion.
• 20:55
  SPEAKER_00: And I use stop losses on everything.
• 20:57
  SPEAKER_00: I don't own a single thing without a stop loss.
• 21:00
  SPEAKER_00: There's an exception to that.
• 21:01
  SPEAKER_00: If you just buy an index fund like the SP and you want to hold that till death do us part, then you don't need a stop loss on that.
• 21:07
  SPEAKER_00: But individual positions, in my humble opinion, should have them.
• 21:11
  SPEAKER_00: And he never risks more than 2% per trade.
• 21:14
  SPEAKER_00: That exact number, again, depends a little bit on where you are.
• 21:17
  SPEAKER_00: But so what does that mean?
• 21:18
  SPEAKER_00: Well, say you have a position that's 10% of your portfolio, but goes down 20%, you'd hit 2%, right?
• 21:25
  SPEAKER_00: That would be like when you were out.
• 21:27
  SPEAKER_00: And we could debate whether that should be 1% or 2%, or so it depends a little bit on how you're investing, what you're investing in.
• 21:34
  SPEAKER_00: And then watch the data, watch the money.
• 21:38
  SPEAKER_00: I always say that, just follow the money.
• 21:40
  SPEAKER_00: Don't make it too complicated.
• 21:41
  SPEAKER_00: It's not the money who's got the best technology or the smartest CEO or whether, you know, PayPal's gonna rebound or any of that.
• 21:48
  SPEAKER_00: No.
• 21:49
  SPEAKER_00: The money follows into the stock.
• 21:53
  SPEAKER_00: We follow.
• 21:54
  SPEAKER_00: And we can see it.
• 21:55
  SPEAKER_00: There are signs before all the money pops in.
• 21:57
  SPEAKER_00: There are three rules to that.
• 21:58
  SPEAKER_00: I'll teach them to you on Saturday.
• 22:00
  SPEAKER_00: So that's really, really important.
• 22:02
  SPEAKER_00: Price action, some people call it, I just call it money flow.
• 22:06
  SPEAKER_00: And then we've got to be patient.
• 22:07
  SPEAKER_00: And we've got to wait for the right opportunities.
• 22:10
  SPEAKER_00: I look every Sunday for something to invest in.
• 22:13
  SPEAKER_00: And some weeks I find loads of things, and some weeks I find nothing at all.
• 22:17
  SPEAKER_00: Do I then force something?
• 22:18
  SPEAKER_00: No, I don't.
• 22:19
  SPEAKER_00: I just do nothing at all.
• 22:20
  SPEAKER_00: So you've got to be patient.
• 22:22
  SPEAKER_00: You've got to wait for the fat, beautiful pitch.
• 22:26
  SPEAKER_00: And then we I I Winston and I swing relatively hard about that.
• 22:30
  SPEAKER_00: So how do we position for this?
• 22:32
  SPEAKER_00: Look, if Walsh comes in and he cuts interest rates by like a percentage point, and he sort of just slows down the money printing a little bit, he has to do a bit to keep the banks afloat.
• 22:41
  SPEAKER_00: Then, in my humble opinion, the things that'll do really well are growth stocks, tech AI, you know, a non-profitable tech.
• 22:49
  SPEAKER_00: Small cap stocks should really benefit from lower interest rates because they actually borrow from banks at market rates.
• 22:56
  SPEAKER_00: And potentially crypto.
• 22:58
  SPEAKER_00: Now, crypto is one of those things when it's done nothing for two years, everyone hates it and it's all over, it's never going to come back.
• 23:03
  SPEAKER_00: Bitcoin's dead and CIA runs it, probably does.
• 23:07
  SPEAKER_00: Or maybe it was, you know, Epstein or whatever.
• 23:11
  SPEAKER_00: Um, but typically it's in those moments that there is actually an opportunity.
• 23:15
  SPEAKER_00: They're not telling you what to buy.
• 23:17
  SPEAKER_00: I'm not a financial advisor in any way, shape, or form, but that's something to look at.
• 23:20
  SPEAKER_00: Now, if they lower interest rates aggressively, there is a pretty good likelihood we're gonna get higher inflation and a weaker dollar.
• 23:28
  SPEAKER_00: Those two things will benefit gold and silver tremendously.
• 23:34
  SPEAKER_00: Now, what's the second scenario?
• 23:36
  SPEAKER_00: Like, if he really comes out as an inflation fighter and he's just like, we're gonna, we're gonna, we're gonna like just shred money.
• 23:44
  SPEAKER_00: Um, and you will find that out by his following his uh speeches.
• 23:47
  SPEAKER_00: And again, you can just subscribe to Trade Vision with ping the news to your phone and notifications.
• 23:52
  SPEAKER_00: Well, then we're gonna need to get a little bit more defensive.
• 23:54
  SPEAKER_00: You know, utilities and gold and and that kind of thing.
• 23:58
  SPEAKER_00: Cash, by the way, is not something I recommend to hold for long periods of time.
• 24:01
  SPEAKER_00: Um, and and by cash we generally mean bonds, not actually cash.
• 24:05
  SPEAKER_00: So when when Buffett says I've got three and a billion in cash, no, he doesn't.
• 24:09
  SPEAKER_00: He has it all invested in bonds, so pay him like 5%.
• 24:12
  SPEAKER_00: So there is a sort of barbell strategy one could look at.
• 24:16
  SPEAKER_00: Again, this is not financial advice, not recommendations, this is something to base your thinking of.
• 24:21
  SPEAKER_00: Um quality large caps.
• 24:23
  SPEAKER_00: I'm a big fan of that, hangled um fairly heavily on some Google, for example, this week.
• 24:29
  SPEAKER_00: Uh I think they're one of the Max 7 best positioned.
• 24:32
  SPEAKER_00: Again, doesn't mean you should do it, just with my opinion.
• 24:35
  SPEAKER_00: Gold, energy stocks.
• 24:36
  SPEAKER_00: I wouldn't short, isn't for most people, it's just something if you're a real trader.
• 24:41
  SPEAKER_00: Some high growth tech stocks, some defensiveness.
• 24:44
  SPEAKER_00: And then by cash, I mean some dry powder for opportunities because this is going to cause uncertainty.
• 24:50
  SPEAKER_00: This is going to cause whiplash, and whiplash is always beautiful when you can take advantage of those opportunities.
• 24:56
  SPEAKER_00: So, how do we take it from here?
• 24:57
  SPEAKER_00: Well, look, we watched the first speech as a Fed chair.
• 25:00
  SPEAKER_00: I will tell you about it if it's important.
• 25:02
  SPEAKER_00: The first FOMC meeting means we'll get a transcript of exactly what was happening.
• 25:07
  SPEAKER_00: And then as the inflation data responds, we want to see how does he react to that.
• 25:12
  SPEAKER_00: Is he overly cautious?
• 25:13
  SPEAKER_00: Or is he one of those who's like, ah, I'm chilled about it, I don't care, I'm going to cut rates anyway, sees what happens, which is what Trump wants him to do.
• 25:20
  SPEAKER_00: And then we're going to be adjusting.
• 25:22
  SPEAKER_00: So I have no firm opinions about any of my stocks that I will be holding them in 12 months' time.
• 25:28
  SPEAKER_00: I may be, or I may not be.
• 25:31
  SPEAKER_00: And I think if you're individually stock picking, you want to be in a place where you go with the flow, you go with the money flows.
• 25:38
  SPEAKER_00: And again, I'll teach you those rules if you join me on Saturday.
• 25:41
  SPEAKER_00: And really, really also learn risk management, right?
• 25:45
  SPEAKER_00: So if you are an active investor, you better be a little bit active.
• 25:50
  SPEAKER_00: Come and join me Saturday, Felix Wensalog slash training.
• 25:52
  SPEAKER_00: I'll break it down for you.
• 25:53
  SPEAKER_00: And if you got some value out of this, you got some insight on this that maybe you didn't cut this from mainstream media, then share it.
• 25:59
  SPEAKER_00: Share it with a friend.
• 26:00
  SPEAKER_00: The more people we can reach, the bigger impact we can have, which is what this is all about.
• 26:05
  SPEAKER_00: And um Winston, can you Winston?
• 26:08
  SPEAKER_00: Come on.
• 26:09
  SPEAKER_00: Winston, come.
• 26:13
  SPEAKER_00: And Winston will leave us with some real wisdom here.
• 26:16
  SPEAKER_00: Sit down, my darling.
• 26:20
  SPEAKER_00: There he is.
• 26:21
  SPEAKER_00: Winston, any final words on um the Fed share and Drucken Miller's um strange influence?
• 26:28
  SPEAKER_00: He says um he's pretty relaxed about it, right?
• 26:31
  SPEAKER_00: He's got really good risk management.
• 26:32
  SPEAKER_00: It's got really good risk management.
• 26:34
  SPEAKER_00: I thank you for watching.
• 26:35
  SPEAKER_00: I wish you a beautiful year.
• 26:36
  SPEAKER_00: All the best.