Flagship Pod: What The Inflation Report Means

Every single Friday we host a live discussion in our Discord Channel at 12:00pm EST. This gives you the opportunity to ask us questions and hear our thoughts on the things you want answers to!

Here are the 4 key things we went over for this week: 

• Why the inflation report tanked the market

• Why the successful Ethereum merge still kicked off a bear market

• How the situation in Russia will affect global markets

• How we see the market developing from here

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Check out a broader summary & transcript below! 

Peter Starr:

From Moby.co, this is the Flagship Pod, a weekly live podcast about the stock market, the economy, and the various market forces powering the world around you. As always, I'm your host, Peter Starr, bringing you this time a pretty spicy week honestly.

We had a really hot CPI report come in. We saw the dollar get even stronger than it's been before, straight up hulking out. FedEx came in this morning and made the market even more spooked by saying that, the CEO literally said he's expecting a worldwide recession coming in the next year. A lot of spicy monetary stuff, a lot of macro stuff. Again, everything was kind of coming down to today and now everything is aiming at the next slate of earnings reports we'll see, starting in October, going into November.

It's a real straight sprint to the finish, obviously, audience. And to go through that as always, I'm joined by CEO co-founder, and chief analyst here at Moby.co, Justin Kramer. Justin, dude, what's good, man? How's life over on your end?

Justin Kramer:
Doing pretty well to your point. I mean, we say this every single week, every week's crazier than the next, but this is the first week where people are starting to really come back from their summer vacations and overall, just start to get more involved back in business.

So this is the start of what will probably be a very, very crazy Q4 starting in a few weeks, but looking forward to start diving into today's topics that are going to affect us.

Peter Starr:
Exactly. And of course, the main issue the world is having right now is the kind of doom and gloom we're seeing from the U.S. CPI. Again, our inflation data came in slightly over 8%. We were hoping for eight on the nose.

We are 0.1% slightly more inflated month over month when last month we were at zero. It's one of those things where even though gas prices are going down, that's not the only supply-side driver anymore. Now, energy's really driving the bus. Food prices are starting to creep up as well.

What do you make of this, Justin? It's one of those things where, has the fed kind of missed its mandate here? Or is it one of those things where, no matter how much we raise rates, it's just not enough to keep up with the supply side mayhem we're experiencing?

Justin Kramer:
It's a very challenging environment right now because the Fed frankly just acted way too late. They said inflation was transitory, they kept saying it, it kept going up. And then they kind of got in this situation where inflation ended up kind of spiraling out of control, it's north of 8%.

Your target is 2% so they're clearly way off. And now they're kind of scrambling to pick up the pieces. So their options are very limited. What they can do and what they have done is raise interest rates. They've also continued to pull back the amount of money that's being pumped in the economy from quantitative easing now over to quantitative tightening.

But long story short, their tools are limited. And then ultimately, it takes a while to feel their effects. By the time they raise rates, it subsequently flows down to consumers, then comes back in the economic data the month thereafter.

There is some sort of lag effect and that's what we're seeing now. So has inflation peaked? Most likely. Does that mean it's going down? What we've seen from the last report, the answer was no. It went down month over month for the last month or so, but last month, even with energy prices dropping as much as they can, the other prices going up in the economy made it rise. So ultimately when we look at that, that's extremely discouraging and that's why we've seen the market sell-off. If we saw another month of decreasing inflation, we might be in a position now where we could say, hey, we're trending in the right direction. A few more months of this, and we might be out of the clear. But with things going up, it just kind of puts us right back at square one.

So if the Fed is going to be forced to raise interest rates even further, that ultimately slows down economic activity that much more and then puts us, similar to your comments on the FedEx CEO, puts us that much higher likely a chance of being in a recession or some sort of severe economic pullback.

So we will see how this shakes out, but with the Fed raising rates, with them taking money out of the economy, it should alleviate things. The fact that it hasn't really shown you how worldwide and systemic some of these issues are. And so, this is going to be more pain before it gets better. Again, like everything, things will reverse, but until it's very clear that we are out of this, markets will continue to be volatile and kind of be up and down as we've seen it over the first course or the first nine months of this year.

Peter Starr:
And most market makers are putting this at almost certainly going to be a 7.5%, 75 basis point interest raise coming with the next sort of cycle of Fed raising rates, Justin, but the audience question and something that keeps popping up on fin Twitter and across the doom and gloom side of things, is a 100 basis point single month raise out of the question? Would the fed get that aggressive with it given that the demand side here is just not working as effectively as it should be?

Justin Kramer:
I mean, it's definitely possible. Right now, the chance of it being .75% or 75 basis point raise right now is pretty much all but guaranteed. But when we're looking at the potential of 100 basis point, I mean, it's definitely lower than like 30%, I think right now.

The future market have it around in the high teens, low 20's. So the chance of it happening is probably pretty slim. But if things continue to get worse over the next few weeks until they report at their next cycle, then it's definitely still on the table. Again, long story short, what we're seeing now, given the data we have, we don't think it'll happen, but by no means is it not going to happen. If they do raise 100 basis points, I mean, no one would've ever thought they would've raised 75, let alone 100 basis points about a year ago.

But if they do that, they raise .75 to 100 now, they do another 75 then down maybe to 50 or 25 over the next few months, I mean, we're going to be in a position where interest rates could be well over 7%. For people to afford to buy a home or really do anything is going to be severely impacted to the point where a recession honestly seems inevitable, and a severe economic pullback. If people can't borrow money, if companies can't borrow money, they can't continue to pump the products into the economy they once were, they have to stop hiring, and there's just all these trickle-down effects.

So long story short, 100 basis points are definitely on the table, but either way you shake it right now, we're not in a good position.

Peter Starr:
And it's one of those things where the ways out are kind of... A lot, it's mayhem for the fed right now, because there's a bunch of competing forces that are also hurting the fed's ability to sort of slow down the demand side. First and foremost, just kind of years of labor not necessarily getting raises and all of that is now kind of jumping into this period where this railroad strike was averted because the railroad workers got a 14% raise. You're seeing union activity across the board and that's going to be sort of raising. That's another thing the fed would like to avoid.

They never say it out loud, but higher wages means more money in the economy means higher inflation, so it's one of those things where perhaps if we had been a little bit more proactive on the front end, maybe things wouldn't have been as bad right now. But watching this, the fed's main mandate is a soft landing, which looks further and further away from the realm of possibility as they basically have to just slam the brakes on everything just to keep the kind of inflation they can't even really control under control.

So rock and a hard place. We're going to be seeing some real kind of mayhem. And so we've kind of thrown short-term gains out the window as we're thinking about investing, like we are all in long term right now, right? Because it's just going to be volatile for some time as the bear market kind of continues. And you're seeing that across the board. A lot of investors are behaving the same way. Later on, we'll get into the Ethereum merge and why Eth is down even though the merge was successful and what you should be doing moving forward as you think about the crypto bear market, if crypto winter does continue.

But for now, let's maintain. We have a lot of backlog to get through in terms of thinking about a long-term position. So Justin, last week after our podcast, we finally got a chance to release our updates on Neo. And I'm just curious about, with tech stocks being the way they are right now in an inflationary environment, why are we still bullish on Neo, the Chinese EV manufacturer, especially with a strong dollar depressing the value of international stocks? What gives there, dude?

Justin Kramer:
Yeah. So Neo to your point is in an interesting position right now, because they're going to be in that tech basket where things won't rebound likely for their stock, no matter how well they do, until the markets come back. Having said that, when you look at the stocks specifically relative to other stocks like Tesla, while Tesla is down huge, and the other ones, with Neo down 40% year to date, right now, they're sitting at a $34 billion valuation. When we look at their valuation relative to Tesla, they are trading at a cheaper multiple than revenue for price to revenue, they're trading at cheaper multiples on enterprise value. Across the board, they're just being valued less. There are some good reasons why that's the case, but when we see the production coming out of Neo, the pipeline, the demand coming out of this Chinese EV player, we're really excited about the future.

And we're playing this over a multi-year period. So when we're looking at the stock, yes, it's down huge. But when you zoom out further, it's kind of leveled out and bottomed out around this, anywhere from 15 to $20 level. So yes, can it keep falling? 100%. But we're pretty confident that's going to be the bottom, and so, we'll be able to see some pretty large upside on the way up. And so if you even go back to January 2021, the stocks trading in the 50s and 60s. I mean, that's two to three X where the stock is now. And in January, 2021, late 2020, the company from a manufacturing perspective, production perspective, sales perspective, no matter how you slice it, they are nowhere where they are now. So their valued at a third of the amount of their all time high, while being two to three X bigger than they were back then.

So yes, valuations are compressed, but they ultimately will rebound and stocks like Neo are going to have significant, significant upside when it does rebound. But to your point, over the short term, it is likely to stay depressed. But again, this is why we do not trade over the short term. Predicting day-to-day movements is all but impossible. It's not a game us or frankly anyone should be getting into. That's why we're looking at stocks like Neo that we know are down huge that we can buy on the cheap. And so when they do rebound, we're in a really good position to capture the upside.

Peter Starr:
And of course, audience, not to have the troll response there, but the immediate question from the entire audience, they've been trolling you about this for over a year now. Does that mean, is it time to really start doubling down on Twilio as well? They're seeing, they're making their course corrections. Obviously this stock popped 11% this week. It's now only up about 3% as that sort of was an over bought type situation. But when you're looking at Twilio, is it okay to sort start thinking about dollar cost averaging through this? Or is it one of those things where inflation may still hammer local tech stocks as well moving forward?

Justin Kramer:
No, I mean, Twilio's another one. They've got an absolute crush, but from a forward-looking revenue perspective, they're trading at like three to four X revenue. I mean, that's just a company that's growing tremendously doing everything right that has been unfairly dinged given what's going on in the markets right now. Yes, they had to let go 10% of their workforce, but like so many other companies, when you're focused on growth, you're making hires and doing things that necessarily isn't called the most optimal for the business.

So similar to Snap, similar now to Twilio, similar to a bunch of other companies, they are starting to make the necessary decisions to set themselves up for success, both from a growth perspective, as well as doing it financially responsible. So, long-winded way of saying yes, the stock is down massively. Will not hide from that fact at all.

It's down over 70% just this year. But again, this is a company that is growing and is carving out a corner of the market that they have a real monopoly over. And so, that's a company we want to get invested in now. And again, if they reclaim those highs that we saw in 2020, I mean, you're looking at five, six, seven X where it is now. Those are returns that we typically want to generate over a 10, 20, 30 year period that definitely peak in the next several years. So similar to Neo, this is a very long term play, but over the next several years, there's no reason why this shouldn't be one of the largest contributors of performance in your portfolio.

Peter Starr:
And on the other side of that too, audience, another thing we're also trying to do is try to give you avenues for some potential short-term growth, as well as long-term growth. And that's why we just finally decided to add to our pharma portfolio by adding Biogen finally, despite the fact that literally a month ago, we were kind of trashing them a little bit. And let me kind of go through the math there real fast. Biogen is a brilliant innovator in the pharma space. It's just that they innovate by doubling down on certain sectors. And so, for the past 10 years, they have been the king maker in neurogenerative disease. They were basically the player in terms of making multiple sclerosis treatments, but that was over 10 years. And in pharma, you only have 10 years to really suck up all of the profits in a particular space.
And now, all of their multiple sclerosis medications are getting a lot of generic pressure, which is really taking away a lot of their revenue.

They were set up for success in terms of beating that by tackling, again, Alzheimer's. However, there's a lot of worry in the Alzheimer's research space right now because, I don't want to get into it again, there is some potential about some fraud leading the entire Alzheimer's research space, going after the wrong kind of protein to actually treat Alzheimer's. We relooked at a lot of the data there. That's going to be something that's going to be unpacked for a while. But just because a biomarker is incorrect doesn't mean it's not in the same region of treatment. So when we saw some data come out from Eli Lilly on a similar kind of treatment, have positive medically measurable effects and made us think, okay, it's not entirely all bogus, there's going to be a lot of oversold pressure in Alzheimer's medication.

And Biogen, despite pulling a not necessarily effective Alzheimer's treatment, has some really important trial data coming out in the next two months, either later this month or by mid-October, that will show with their second Alzheimer's treatment, hey, we're going to see a lot of efficacy from, if they see any efficacy from this, this stock is going to absolutely pop off. If not, the generic pressure on their multiple sclerosis line is going to be able to carry them all the way through their next research phase. So it's one of those things where either, A, it's going to be extremely successful in the short term once we get some actually positive news re Alzheimer's treatment, or it's going to be successful in the long term in terms of just buy and forget for the next five years. And that's kind of the line we have to play in terms of thinking about what we're buying right now. You got to go long term narratives and you have to have long term reasons for buying stock.

Because again, if you're buying on the short term and only the short term, you're not going to be successful. However, we do want to throw a bone to some of our more quarter-by-quarter degens who are in our audience and who are a valued member of the moby.co community. We get you, we want to value you, so we give you some unfair gambles. We give you some gambles if you really want to use them. But really as an investor, please do not think on these short term time scales. Think long term, invest long term, and you'll have a lot more success that way.

And that kind of brings us back to thinking about how we can move these long term narratives as well, Justin, because one thing we've been kind of alluding to is, with these higher interest rates and with certain other banks around the world not catching up to the U.S. as quickly, the U.S. dollar is now up 18%, bro, which sounds great. That means a strong dollar. But I mean, in this case, we do not want a strong dollar because we are a global spending empire. So the question is simple, Justin. How should I be ingesting my investing strategy if the dollar is so strong? Should I be going local only? Is it okay to be buying international stocks right now? How do I think about the strong dollar and how that's going to impact growth moving forward?

Justin Kramer:
Yeah, it's a really good question, because to your point, there is an interesting dynamic right now where the dollar is, it's inflating, so the sense that you can't buy as much with it, but relative to other currencies, it's actually one of the strongest currencies and is up huge. So it kind of creates this interesting dynamic where, when you leave the country, even though prices have gone up so much elsewhere, the dollar is so much stronger that it ultimately kind of cancels out to a certain effect, whereas in the U.S., even though it's going up 13% relative to the goods here, you're ultimately getting a depreciating dollar. So it kind of puts us in this interesting dynamic. And so, when you have an inexpensive dollar, typically in economics what that means is, users or customers or people or individuals, whatever you want to call them, in the U.S., they have a stronger dollar, so they can go buy goods in other countries that are cheaper.

And so what the U.S. will start doing a lot is importing goods from other countries. So our dollars will leave the country and goods will come in the country. And so when we think about that from a company perspective, that's why we're seeing a lot of interesting opportunities start to pop up in Asia and Europe. Countries that have really high inflation, so interest rates are going to start increasing like crazy. It hurts the valuations, but they have some really good, shorter term business prospects from all of these foreign consumers, like U.S. consumers, potentially buying goods from those areas. And with their valuations even compressed more so than the U.S., that is a really good opportunity for us as well. Having said that, with the U.S. dollar being stronger, we're going to see more people pile into as a reserve and safety currency when you have the pound, you name the currency constantly being devalued.

You'll have more money flowing in here, which potentially then can also hurt us from an inflation perspective as more people, as there's more demand for the U.S. dollar and ultimately drives it up even further. So long winded way of saying right now it can either play in a few directions, but ultimately for us, I think the long winded way of trying to say that we like a lot of overseas opportunities with valuations compressed there even more and with foreign goods being cheaper than ever for U.S. consumers who drive the bulk of demand for a lot of these companies. It actually presents some really good investing opportunities and could lead to a 2023, 2024 scenario where emerging market and certain European equities actually outperform the U.S., so definitely something we're looking at.

Peter Starr:
Absolutely. And if you're a Moby.co member, make sure you're checking out our emerging markets portfolio, as well as our offshore portfolio, as you're going to see a lot of more of these quantitative investments that we're using computer models to make sure we have a good sense of where the best action is. If you're not a current moby.co member, obviously check out moby.co/go to join up, try a free trial, see what we have in terms of our portfolios. That's your ad read for the day. We try to keep them lightning quick. And as we think about that too, audience, obviously the main thing we're also trying to understand is these main things that are driving inflation. And that's why most of these podcasts we're talking about these macro forces, because I mean, ultimately, this is why people love bull markets, right? The narratives in bull markets are simple company, cool company, good number, go up. Bear market pandemonium.

There's a million different factors. The dollar's too strong. Oh, the dollar's too inflated, Japan's too weak. It's mayhem. And there's so many different strands pulling at the actual forces that will drive various people to buy or sell certain assets. So it's really hard to predict any direction because there's so many different threads pulling in so many different directions. Speaking of which, Justin, a new thread just dropped actually. Germany just seized a bunch of Russian owned oil refineries in Europe and just kind of added to the overall energy mayhem. How do you think, I mean, that's cool and all. Is that going to turn the heat up on the Ukraine conflict or is this one of those things that can actually help get natural gas and oil prices more under control and help alleviate that side of the inflationary situation?

Justin Kramer:
Yeah, no, that's a good question as well. That's something that's definitely a little bit more developing right now in terms of what you're referring to. But I think right now, the Russia-Ukraine situation, I think is moving in the right direction from what we've seen, from what we heard on the ground. There's a really good chance that this ends up going more the Ukrainian way. If a lot of this ultimately depends on Putin, he's a little crazy to say the least. But if they have to concede, he gets, I mean, honestly he gets assassinated or something, whoever comes in and makes the next decision could be in a position where we'll say, hey, we'll give Europe more of this natural gas, oil, whatever supplies they need and ultimately help bring prices down.

I mean, if that ends up being resolving itself within the next few months, and then compounded with interest rates going up, there's a really good chance we could get some sort of strong rebound as energy markets drop significantly in pricing. That's going to be really hard to play out, but just know if that's something you believe in fundamentally, that could bring a massive rally going into next year.

Peter Starr:
I was about to say, that's one thing that's kind of an encouraging sign. Honestly, if you talked to us literally two weeks ago, we would've said that this Ukrainian situation is looking like a straight-up Afghanistan. Multi-year nothing but pain situation. There's no way anything is going to move in any direction. And this astonishing counter-offensive led by the Ukrainian army is incredible. They've reclaimed over 3000 square kilometers of land so far.

Don't know how far it's going to go, but obviously there's an immense amount of pressure on the Russian administration right now, so hopefully that's going to resolve in a positive way. And that's one of those things where, it's not like it's going to be hard feelings or anything once it's all over. That gets the natural gas pipelines coming back. That gets sort us back to normal. We're still going to experience pain from this, but just getting any positive indication that it's actually going to end, even in 2023, would be absolutely gigantic.

Justin Kramer:
I mean, we're effectively kind of in a cold war now, if you think about it. We all, not all, but a lot of countries have nuclear capabilities. Everyone rightfully so, unless they want the world to end, are in no position to launch them. But once one person launches them, everyone else launches them. And so you have kind of Russia teaming up with China in some capacity who's also teaming up with potentially North Korea. And then you have the allied powers more in the Western hemisphere. You have a lot of parts of Europe, you have the U.S., and we're kind of in this cold war scenario again.

So we create a lot of financial restrictions for Russia, they're like, we're not giving our energy to the rest of Europe, so their prices are going up. So, I mean, we're still in this exact scenario where we've been, where we need to seriously look at foreign politics and see how it affects the economy, because everyone's kind of in this stance right now of, who moves first, and it's like that Spider-Man meme.

Peter Starr:
Exactly. And it's one of those things too, where we're always going to be watching the Taiwan situation as well. And that really looked like it was going to pop off a little bit more back, let's say again, two weeks ago. And it looks like things have kind of simmered down a bit, especially with the U.S. pushing as hard as it is to move semiconductor production over here.

Obviously, we would go to bat for Taiwan if that was the situation. And that's one of the things where obviously president Xi has been watching this Ukrainian situation really, really well. And again, two weeks ago would've said that China doing something with Taiwan is on the table. But watching the U.S. just supporting Ukraine enough to push back on Russia has probably cooled some jets as well. So it's one of those things where we are absolutely in a cold war type scenario and that a Taiwan situation is absolutely also going to be on the table.

We're going to be in this bizarre period of, again, pointing at each other and wondering, who's going to move first kind of tension until, I don't know, certain factors resolve themselves. This is a very goofy time in history that's really hard to predict. And obviously, that makes the markets really hard to predict as well. So Justin Kramer, CEO, co-founder here at moby.co, we somehow just zipped through half an hour here. Just wondering if there's any final thoughts for me before we go ahead and sort of rounding this out.

And did we miss anything in terms of this market? Oh, I already know we did. We completely, I don't know how we always do this. The biggest event in crypto history happened this week and we're like, nah, let's just talk about China and Russia. That's obviously more important. Ethereum merge went well, Justin. Proof of stake works, but Ethereum price goes down 10%. What gives?

Justin Kramer:
So I mean, this is typical buy the room or sell the new scenario. Ethereum's going to be 99% more efficient energy. Its energy consumption is going to fall off a cliff. And so people are like, oh, that's a great opportunity, I would want to buy Ethereum. And so yes, the markets did rally and did help Ethereum a little bit, but the combination of it finally being completed and then also markets falling off a cliff the last few days, it was just like, hey, Ethereum is going to drop significantly. It's not like an isolated incident.

So if you look at Bitcoin, for example, which obviously dominates the market, over the last seven days, it's down like 8%. Ethereum is down 15 so it's definitely more. If you're looking at the top 10 cryptos, Ethereum's down the most out of all them. But again, when you take the markets falling off a cliff compounded with the sell the news type of scenario, a lot of this stuff is being priced in already and people are trying to make money on the run up.

So again, doesn't change outlook at all for a long term price target Ethereum. If anything, it helps it. But again, with everything, continue to buy the dip. I know people who are listening or who've never invested before or newer investors who think we're crazy, think everyone else is crazy. But I'm telling you, when you look back in five, 10 years and you see this opportunity that you totally or hopefully did not pass by, you'll thank us for being one of the cooler heads and prevailing on the other side of this. U

ltimately, this will happen again, whether it's five years, 10 years, 15 years, 20 years. Who knows? And then again, use this time now to be like, hey, this is a great buying opportunity for names that you fundamentally still believe in. Buying GameStop now after a huge dip, not going to rebound. But strong names and strong markets will come back.

Peter Starr:
I'm really excited for you to eat your words in the GameStop situation and also AMC by association, but to be the slightly less cool head in the room, for me, this is absolutely a bigger opportunity for me to dollar cost to average a little harder into Ethereum specifically, because in addition to staking, which is now live and official in the Ethereum dashboard, we also have lots of various providers trying to encourage people to join their Ethereum staking opportunities. I'll be giving you a list of those next week. My top one right now is Binance who has been one of the biggest players in being a crypto exchange and is not as terrifying as Coinbase, from my perspective as somebody who was like a day one Coinbase user. I'll get into that later though. But Binance is offering 8% APY for staked Eth, which is just insane compared. I know it doesn't sound like a lot because we're used to Dows offering like 210,000 whatever percent, but staking Ethereum on Binance rocks and you get 8% APY.

So even though the volume of Ethereum goes down another 10%, you're still making 8% year over year in terms of actual Eth coming back to you, which is awesome. And so, staking is going to be a huge part of the crypto universe moving forward as we move for this proof of stake model. And I'm absolutely going to be moving a lot of my stuff over to that 8% on Binance. Again, not paid by Binance, not paid by any crypto exchange, honestly, but it's just the best deal on the table right now. Period. If there's other ones, I don't know about them and I will love hearing from anybody in our audience that I got that one wrong. But for me, it's all about Binance, getting out of Coinbase, putting my stake, getting all my Eth staked, because I'm not using it as a currency or anything.

I want be a part of this new liquidity pool. I want to be part of this new system where it's going to be 99.9% energy efficient. It's not going to reduce transaction fees. Buying and selling Eth is still an extremely expensive proposition. That's not one of the things staking does. It just makes it so that Ethereum doesn't literally destroy the planet with its energy consumption, which was on the table before this went. So it's awesome this worked well. There's going to be a lot more volatility in the crypto market moving forward as Ethereum sort of stabilize. It may kill Avalanche and or Solana in the short term. Other smaller players might not do so well like ICP or might do very well. We might see a whole robust crypto ecosystem come out of this, but right now it's going to be very volatile. And as inflation continues, crypto winter will also continue as well.

So again, you're buying, holding right now, you're staking right now, and you're forgetting about it for five years. And again, five years from now, you'll be glad you did it, because again, getting 8% year over year on anything, that's your literal goal as an investor. Congratulations. You win the game by default. You don't have to think about it. But the main thing is just making sure that you have that cool head and those cooler heads prevail. And so that finally gets us to the actual end. We did actually round out a little bit longer than half an hour. Forgive us audience. Justin Kramer, CEO, co-founder and chief analyst here at moby.co, again, thank you so much for your perspective. Any final thoughts from you before we go ahead and read the credit here? Again, as always, blitz. Give a conversation. It's going to be nothing but sprinting from here until about Thanksgiving. So anything else from you, bro?

Justin Kramer:
Yeah, I mean, we covered a lot. There are 5,000 other things you and I talked about that we wanted to cover. But happy with what we got through so far. If you are a regular listener, you might be listening to this thinking that inflation is all we talk about.

But unfortunately, that is what the market dictates right now. The fed, the direction they move in is all based on inflation, and then the markets move around the fed. You're not going to beat the fed in the short term. It is impossible. So you need to know what's going on in the economy and when things will reverse, and this is now more about a top down view than it's ever been.

So that is what we ultimately need to report on. We're talking about Neo, we're talking about other stocks that we like within that over the long term view, but that is what is going to dominate the stock market right now. And that's what ultimately most people are talking about.

So if there's other questions that are more specific to individual stocks, we're happy to answer them, but that is going to be a lot of what we talk about and focus on as we start getting updates weekly and monthly and go through it.

Peter Starr:
Don't beat the fed, audience, worship the fed. Set up a nice little shrine to Jerome Powell in your bedroom and slash or kitchen, candles, the picture, the works. And you'll be able to guide us out of this and get that soft landing particularly. It's one of those things where, we're just in that sort of short term pain situation. If you're a tech worker like us, obviously make sure you're maintaining a stronger budget and a strong emergency fund in case the grim specter of layoffs comes for you as well. But it's one of those things where this is one of those bear markets. It's honestly the most typical bear market we've ever seen. This is the bear market we should have had in mid to late 2020. Instead, we got the apocalypse. So I'm very excited for us to keep investing our way through this, getting some really great discounts on various stocks, and I'm excited for our economy to gradually get back under control.

But for now audience, that's a great place to end it. As always, thank you so much for listening. If you have any other questions for us, you can hit us up either at [email protected] or join us live for these conversations here on Discord. They used to be on Thursdays at 5:00 PM.

We've moved them to Fridays at 12:00 PM just to make sure we capture a lot more of what's happening in the actual market. And doing a podcast at five kind of sucks actually. So we were on west coast time before, what do you want from me?

f you have any other questions for us, again, hit us up there. Find us on Instagram, find us over on TikTok. We're going to be posting a lot more over there. I'm going to have a lot more great stuff coming for you. Next, we're going to be talking a lot more about industrials as well as sort of local banks with this strong dollar happening.

Otherwise audience, I really appreciate your time. Thank you so much for listening, and as always, we like to leave you with peace, love and incremental gains. Everyone be well. Thank you so much.