The shorts are on the cusp of getting slammed big time. Can the rally move beyond fees and famine . I will talk to ed yardeni what he is calling a bull market. Significance rhetts, postage stamps survived years with lower volumes and higher prices. Is that the right combination when you invest in the stock market . David bahnsen is here with some answers. Now that a. I. Officially has taken jobs could the market see other problems with this juggernaut. Dan flax on that with apples big day, my speech i gave to the new york giants last week, i came away feeling like a champ because of these young men. All that and so much more on making money. Charles all right, so it has been an impressive market, right . Especially since the october lows. The question when will the same tide lift all ships, right . It has been feast or famine. I want you to see this, folks. In the Fourth Quarter of, Fourth Quarter of last year these are the names that did well. You know energy obviously had a huge year, industrials, financials, materials. So far in 2003 these are the names that have done well. In both periods nothing, not a single sector has outperformed and just one, real estate has underperformed both. We would like to see a market where all these names are up at the same time. Get all the ships moving in the same thing. The question is of course, what kind of economic backdrop do we need for that right . Last week, good news t was a monster session late into friday that saw s p 500, right, names above their 50day moving average, now above 52. Do you know last wednesday it was under 30 . Were starting to get greater participation. Would a fed pause be the thing that sparks this rally . Here is the interesting thing. History shows when we get these pauses when the yield curve is not inverted the market goes straight up. When the yield curve is inverted the market just moves sideways. I will bring in Yardeni Research president ed yardeni. Ed begin with market internals and participation, how much would you like to see the market rally broaden out . I would like to see it broaden out very much and i think it will. Lets go back a little in time, recall that the market had been running a pretty broad bull market october 12th to march 8th. March 8th is when the banking crisis started, financials really got whacked. Energy stocks started to get whacked because they were worrying about all of that leading to a global recession. So, i think what we need is some time here for investors to have more confidence that were not going to have a credit crunch, economywide banking crisis. In a sense that the Global Economy is picking up enough to drive up the price of commodities. So you began mentioning the potential, i saw it somewhere, you mentioned the potential for this a. I. Led rally to have a meltup. Yeah. Charles a great phrase, i saw, the mother of all meltups. That is the target, right . Youve been, youve been talking 4600 for a long time. I guess you dont want to get there too fast though . Yeah, i definitely dont want to get there too fast because the problem with meltups they almost always invariably are followed by meltdowns. I mean the pessimists have been right in the sense this has been a different bull market. Previous bull markets started at much lower valuation multiples. This one started with a forward pe of the s p 500 at 15. 1 and now it is over 18. A lot of that is because of the megacap 8. They have gone from 22 to 29 in their forward pe. Charles right. Ed, you mentioned the doubters out there. Jpmorgan yesterday issued a new report. Theyre not giving up on this thing. Theyre looking for the stock market to drop at least 16 from here. Looking at profits to plunge. I think now their s p profits are 185. Street is well above 200. What are your thoughts . Charles, i think that was Morgan Stanley. Morgan stanley yeah. They had a good call. They called the top of the market but the problem with trying to time the market like this is, now you need a good call on the bottom. I think october 12th was the bottom. They seem to be missing it. Instead theyre doubling down by talking about 185 in earnings this year. We got 225. So quite a discrepancy sy between my view of the economy and their view of the economy. I think they have been basically been in recession camp whereas i have been in soft landing camp. On gal lance i think that, the worst of the, weakness in the economy is behind us. Profit margins are starting to pick up and i think the market is looking forward. It is looking beyond the next few months. It is looking into 2024. Charles yeah. Ed, i just want to add, looks like your system shut down, so the audience. Ed has been coming on here month after month after month, he called the october low. I agree it is so frustrating. I dont know why Morgan Stanley took a victory lap. They certainly could have. Ed, thank you very much, my friend. Appreciate the week kicking off with you. My next guest said bad news for the economy is good news for risk assets. I want to bring in tjm institutional director jim iurio. Jim, ism Services Missed on the headlines but more importantly i looked into the internals in this thing, orders down huge, prices paid we want, employer down a little bit, supply down a little bit, backlogs down a lot. Inventory sentiment is up. Which of course is what you dont want s this the kind of news youre talking about, that could be good for markets . Exactly. The stock market rallied off of it. The same thing last week. By the way those Employment Data numbers we saw werent good. They looked good, that 339 number looked good as a headline number. If you took out the birth dot model it goes back down to 100,000. It was not a good number, the market rallied as well. To prove the market thought it was not that good after number, odds of a hike at june 14th meeting went down. Now there is 75 chance they will do nothing. Oddly pricing move at the july meeting which is odd. I believe the market believes the fed will flip. The data is starting to trend lower. Right. The fact there are 2. 5 trillion sloshing around above trend from those extraordinary measures they used to combat the lockdowns to keep demand up. It is interesting, the jobs report, work week was down a lot. Wages slipping by the way thursday before the report i said that is what you have to look at. Headline number i dont even know. Beating 14 months in a row we could have a who h whole different conversation. Get back to the fed. Fall volcker gets too much credit for shutting down inflation. There were two other factors, president ronald reagan, his policies helped and the internet. With that in mind could a. I. , Artificial Intelligence be todays version of the internet with respect to slowing down inflation . I will say from 1985 to 2021 the most underrated component of perception of low inflation was internet. Technology is always denationry. Particularly technology that combines and connects all other technology. What on the horizon will be another technological up take that will possibly keep prices down . Obviously it is going to be a. I. You see how many different lawyers are using it to write briefs. There is going to be a lot of jobses will be lost. It will be deflationary. I think its big deal. I think 2024 the fact theyre pricing in 200 basis points of easing is somewhat reflecting the technological advances. Yeah. I do really hope we dont have to ease that much. To me that the means the economy is really, really in trouble. Before i let you go. Seems like only twoways to be involved in this market. You can chase, particularly if you missed it or can start to bottom fish here. What are you buying . I am bottom fishing a little bit. I put on a trade where im long the russell against the nasdaq. If i could, if i had time to figure it out be long russell against the magnificent seven, on this market so much higher i would have done that. Im long the russell. That to me is about the broadening of rally. Ed said there could be a meltup in those seven stokes. I though there is not. If we think more fuel thrown on the fire by the Federal Reserve the russell will finally start to join in. Charles ed doesnt want it to happen either. If it happens he would be a little nervous. He agrees were sighing broading. Thursday, friday were heartening. Even today materials were pretty interesting. Cant get the real defensive sectors in. Jim, thanks very much, i appreciate it. Thanks, charles. Charles folks later on in the show i cant wait to share with you the speech i gave to the new york jets players. It was phenomenal. I came away great. Meantime traders and investors waited feels like an eternity to see the s p 500 close above 4200. It finally happened. What happens now . I want to bring in Thrasher Analytics founder and drew thrasher. To me, im just a student this. We have a clear shot, with a couple of speed bumps to 4600 am i being too optimistic. We finally broken out of a range. Weve been waiting weeks and months to get above those levels. Now were starting to put the august high back on the radar except today were starting to give back a little bit of last weeks gains. We started seeing broadening out last thursday and friday. Urn fortunately today were giving them back. Russell is down half a percent. We need to string more broading days if we are to see the s p make that next jump. Charles there is not a lot though, right to get it up there. For any some reason we went back under it, would that be a red flag a big red flag. Would which now talk 3800 again . I dont know if we go to 3800 it would be a red flag. Look at friday. We had less than 4 stocks making six month highs. Less than three making 52 highs. Youve been talking about it. Everyone talking about it. It is a handful of stocks really driving the market. Tech accounted for 10 of s p 500s gains we need a broadening out of breather to get the next leg over. Charles right. Rotation out of communications technology, that is chapter one. We need chapter two. That involves a lot more stocks. Charles we had the relative strength chart up there, to your point, gapped open. We got the big gap open. Looks like were almost, almost there. What do you, what else are you looking at here . What else should we be trying to look at to give us a clue where this market may be going . Im learning a lot of different breath charts. That is what i pay a lot of attention to. S ps getting back to august high. We have 40 of stocks at their august high. Instead look at the december lows. We have barely 50 of stocks above their december low. We dont have a lot of participation. Can the market recover to continue to move higher with that condition . Of course. But it is telling us the patients sick. May not be on its deathbed but not the most pictureperfect of health we want to sigh. To get the next leg high we need to small caps inproblem. Russell fighting 200day moving average. That cant be case if we want to see stocks materially move higher. Charles finally the vix this is blowing my mind. I think it is supposed to be contrarian, every time it comes down particularlily 20 or lower it is supposed to be counterintuitive. How do you explain, it has been under 15, no one on the street i knew thought it would be here. I heard 30, 40. I had a guest on said it would go to 90. No one said 15, 14. People calling the vix had to skyrocket to 80 before we bottomed are learning a thing or two about volatility. Right now of the most bearish market is volatility. Sentiment in Single Digits for the vix. A big part attrittable, everyone talking about zero days expiration options. Were seeing options on magnificent seven stocks, apple, nvidia, all those names are seeing explosive activity in the options market. That is driving volatility lower. Unwinding of debt ceiling. Sentiment is way too low. Volatility is ripe for moving higher in the shortterm unfortunately jive to give you props. Been a while since we talked. Charles dowd award winner. Second time. Thank you. Charles what did you do to win this award for the second time . This paper was looking how the market acts after drops 5 for market highs. Created a tightening tool to look for further weakness or actually buying opportunities. Looking how long it takes the market to decline going all the way back to the great depression. Every time it happened i take a deep dive into the duration of market declines, whether theyre bullish or bearish. Charles great stuff, my manned. We appreciate your deep dives, sharing your best. See you soon, and drew. Thank you. Charles coming up we have cautionary tale. Six flags is place to go although fewer people are going there. Should investors go into companies hiking up prices to make for lack of sales. This was supposed to be a explosive day for crude oil. It is not. Tracy shuchart what it means for prices and oil stocks as we move ahead. Shes next. Your record label is taking off. But so is your sound engineer. You need to hire. I need indeed. Indeed you do. Indeed instant match instantly delivers quality candidates matching your job description. Visit indeed. Com hire the chase ink business premier card is made for people like sam who make. . Everyday products. Designed smarter. Like a smart coffee grinder that orders fresh beans for you. Oh, genius for more breakthroughs like that. I need a breakthrough card. Like ours with 2. 5 cash back on purchases of 5,000 or more. Plus unlimited 2 cash back on all other purchases and with greater spending potential, sam can keep making smart ideas. A brilliant reality the ink business premier card from chase for business. Make more of whats yours. Charles i got a whole lot of hype going into the weekend. Talking about an event that was supposed to shock the world and send crude oil prices much higher. Looks like so far this opec meeting in the news landed with a thud. I want to bring in hill tower resource advisor, strategist, tracy shugart. Tracy, west texas intermediate opened 75 bucks. All of sudden it came down fast and hard. What happened . It is just really hard for this market to wake up out of this complacency. There is overwhelming fears of recession and certainly data in the eu, manufacturing deteriorating, u. S. Manufacturing data deteriorating, that is increasing these recession fears. That said if we look, what the market is, what investors are not looking at is what is coming straight at us and that is just in q3 were going to be facing a huge deficit, particularly with this extra Million Barrels a day cut by saudi arabia in the, for the month of july which also could extend. Were looking about 300 millionbarrel global draw into q3, that puts us 2. 3 millionbarrel deficit a day and the markets are just not paying attention to this problem that it is right in front of us. You know, we even have record demand in china. Charles right. You know, record demand in india. Data just came out, record Global Demand and this market just really is still very complacent. Charles you know how much of it technically, right . I know that most of the folks in your industry focus on brent. We do west texas intermediate, wti, just because it is more familiar with the audience. Im looking at 70dollar mark anytime it dips on that it feels like it is a nobrainer to buy anything associated with oil. Yeah. If you look at the breakevens in the United States particularly shale, what happens when you start dipping below that 70dollar a barrel, you start dipping into profits. So you will start seeing production come off and certainly the United States does not want to see that happen because that would further exacerbate the problems. Charles right. Oil has been tepid but not oil companies. They put out bigtime buyback announcement in front of an administration that has been wagging its finger t wasnt longing a, i mean, it wasnt long ago, i mean i thought they would surrender to the climate and esg. Mos. Feels like the tables have turned. Exxon, chevron, rejecterred Climate Change proposals. How does that influence the stock price . Were talking about extremely undervalued stocks. Obviously well. I mean the day after that announcement came both of them bounced so the market likes that. You know i think what we are seeing is a little glimmer of hope that some are sort of waking up from this unrealistic Energy Policy insanity. That were going to need fossil fuels for, for quite a while. Yeah, yeah. You know, were even seeing Companies Like vanguard left the net zero banking alliance. You had a bunch of Insurance Companies left the net zero insurance alliance. Slowly but surely i think people are waking up to the fact that fossil fuels are here to stay. Charles you know, i got at least for charles got less than 30 seconds to go. By the way reminds me of the state of the union that President Biden said we need oil for another decade, everyone laughed. No, we need it lot more than a decade. Last 30 seconds speaking of waking up, not happening in europe. Were hearing about france and germany locked into this battle. Germany already surrendered their economy. They shut down all the nukes. Now they want all of europe to do it. Im surprised, thrilled to be honest with you, france is pushing back. How do you explain the mind set you want to run an industrial nation without any power . Well, that is exactly it. You know lucky for france they have a lot of nuclear power. So that is very enticing to bring in these manufacturing, Industrial Companies because its cheap, right . Youre not certainly going to go to germany where prices are much, much higher. Good for france but were seeing kind of a bifurcation happening in the eu right know with the french kind of contingency against the german contingency. Charles im glad to see people waking up in the right way, in the right way. All of this stuff is doing to happen over time. Well have different, cleaner energy, we know that, to browbeat it into existence doesnt work. Tracy, it has been too long. Great seeing you. Thank you. Folks, coming upper rin gibbs says summer liquidity crunch spells june gloom. Oh, man, cant wait to take her up on that one. She is here at 2 40. First would you buy stock in a company that is raising prices all the time but their sales are slowing . David bahnsen here for fundamental school. The biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. It still does. What can you do with spy . Starting a new chapter can be the most thrilling thing in the world. Theres an abundance of reasons to get started. How far we take an idea is a question of willpower. Because progress. Is a matter of character. I cant, you know, thank my parents enough for making sure that this connection is here. One of the things that my mother told me when she was in the hospital, she didnt tell me, actually, she couldnt speak at the time, but she wrote it down. Go see alicia. Oh, my goodness. You know, and there was never a time that you were too busy. There was never a time you said ill call you back, you know. I needed to be there to carry you through, just like, you know, some of my friends carried me through. Charles lets face it the recession guessing game has become a fixation on wall street but also face it just about everyone got it wrong, everyone was premature, now some are even wondering if we can actually skirt by without one. I want to bring in i. Q. Research strategist, Danielle Dimartino booth. Lets talk about things going on out in the real world. Bankruptcies, something you talk about a lot. It is absolutely this the roof. These chapter 11 filings. We havent seen anything like this in a long time. Kind of comes to mind you talk to people all the time, individuals say, hey, my world is already bankrupt. I know economists say all of this kind of thing, these things are anecdotal but this also real life. The surge of bankruptcies, things that you see, other things thaw read, where are we on this recession scale . Charles, i actually think the National Bureau of Economic Research is prepared to declare recession. Now that we are having a greater realization now that the irs has opened up its own unit to try to investigate fraud that is attached to this Employee Retention credit, we had business income tax refunds more than double, pumping, more than 200 billion of extra cash into the economy that helps explain the spending portion that was keeping it, keeping the nber from declaring recession. In addition to that 37 of the jobs that have been created even as bankruptcies have doubled somehow come from new businesses forming, birth death model, 37 the last 12 months. I think this will all shake out in the revisions but at this point i think the nber is ready to declare recession. Charles when you say declare, time stamp the start of it . Correct. Since the Truman Administration the National Bureau of Economic Research, unlike other countries, germany, for example has had two consecutive quarters in a row of negative gross domestic product, that doesnt qualify for recession here in the United States. The way question approach recession is a little more nuanced. We look at seven different factors. The two holdouts have very good explanations to be explained away. We have seen the nber declare recession in the past with the Unemployment Rate at record lows. And as you pointed out to me, many states have seen the Unemployment Rate rise by half of a percentage point in addition to the nation as a whole seeing Unemployment Rate rise. 03 . Charles i will show a chart, just underscore what you said, i have to ask you another economic question coming up. It is really political. This morning target got another downgrade, target got another downgrade, this one from keybanc. This was unique. It was not because of the lgbtq situation, because of student loans. A lot of us dont want students to make them pay back loans, hey it will hurt the economy argument. Just how much will it hurt the economy . Charles, it is very difficult to discern, some sellside investment banks say half a percentage, 3 4ers of a percentage off the domestic product growth which would be a pretty good hick give. Demand shows 62 of americans who recently purchased homes in 2022 and this year in 2023 theyre not managing to make their mortgage payments. Add on an average of 393 per month for 40 million americans in that same millenial cohort that is recently become homebuyers you got a serious crunch with your budget this, serious one. Charles listen, you had a lot of fun. You went to cabo a lot of times. Hope youre ready to pay the piper. Here is chart i want to talk about, let the audience see, lines of recession where unemployment was low, recession, recession, recession, recession, recession, recession. Low unemployment number to your point often a harbinger of imminent recession so well see. Danielle, thank you so much. Always appreciate having you on . Thank you, charles. Charles folks i want to discuss investing based on fundamentals. Joining me Bahnsen Group managing director, david bahnsen. David, over the weekend i did some research. I saw a wonderful graphic, shows six flags, the attendance of six flags is in freefall, 14 million, just a handful of people, it is crazy. Here is the thing, the nip side of that, total spending at six flags has gone up just tremendously as well. Almost the exact opposite. You have to wonder as an investor what does that mean for the stock . I will bring up the stock price for a moment. So folks see it. It was near 60 back five years ago. It is under 30 now. So that seems right. That seems like logical to me. But i look around, for instance at staples this last quarter. Staples, they were posting these amazing revenue numbers even though volume was going down. I know you shared staple names with us. Youre making a killing with them. How do they pull it off but Something Like six flags cant . News bat very definition of a consumer is a company make as product people have to have the very definition after Consumer Discretionary company is one that is in a product or service like six flags the people dont have to have and your Pricing Power as a staple is very different. You look at the food companies, i think most of us agree, you know, charles, you and i both love our food, we have to have it. Look at hershey, look at general mills. These are up over 25 over the last 12 months without a huge increase in volume but good Pricing Power. The difference of the six flags, first of all they did go through the covid moment where the government shut down their business over a year. Even when you factor how the the hangover of that, it is a discretionary business. I think they have Pricing Power to keep revenues up. But not the type of a stock we would ever buy because it is so cyclical as discretionary. Charles right. But when you look at clorox is one of our big winners as a consumer staple they have Pricing Power, people still have to buy household cleaning products. We gripe bit but while standing in line to pay for it were moaning under our breath but we still stand in line and pay for it. Lets talk about the fed, what do you feel . Where are you modeling the feds next move . I was listening to your discussion about recession with danielle. Im in the camp were more than likely to have a recession than not although i still think you can make a very compelling argument, could be a real shallow recession. Those rooting for recession, believe the insanity that a whole lot of people have to lose their jobs in order to do something about inflation, i think they may end up being disappointed. I do think, charles, a lot of argument youre making could have been made a yearandahalf ago. People were screaming about recession 18 months ago and it still hasnt come but i look, i think it is more likely to come than not because the fed is recklessly trying to break something. Its pretty clear right now theyre going to pause next week. Then if the futures are right, they will resume increasing in july, well see how that shakes out. I just think its insane. I think there is absolutely no reason with the amount of liquidity they have taken out, the fact that shelter adjusted cpi is maybe 2 1 2 right now, soaking wet. There is no reason for the fed to not just take a victory lap, on inflation, allow six months of this to play out, and see where we stand. Charles right. But it is almost like theyre not content they have unemployed people. It is ridiculous. Charles david, i have 30 seconds. Let me slip in a new wild card now that every sun ways the debt drama is over, 1 1 2 trillion dollars that somehow will become a major factor in the economy and market, are you buying isnt. No, not at all. People dont understand how markets are discounting mechanisms. Every Single Person in the market has known this was coming. Liquidity factors and technicalities are priced in. Those various complexities youre referring to as they reload, reliquify the treasury covers everybody has seen that coming and bond yield volatility is actually lower than it had been a couple months ago which is ironic. Charles david, love having you on. We always learn something from you. Thanks a lot. We appreciate it. Thanks, charles. Charles folks, apple now making it official. We heard it would happen, debuting augmented reality headset, vision pro. It will rely on eyes, voice, and hands but is it too little too late . Well ask tech extraordinaire dan flax, he made you a ton of money. My next guest is talking about gloom and doom . Erin gibbs says say it aint so. She is next. Tourists tourists that turn into scientists. Tourists photographing thousands of miles of remote coral reefs. That can be analyzed by ai in real time. So researchers can identify which areas are at risk. And help life underwater flourish. lighthearted music best thing ive ever done. Thats what freddie told me. A person like me needed to get a reverse mortgage to change my life. It was the best thing ive ever done. Really . Yes, without doubt [tom selleck] joanne said just about the same thing. It absolutely is the best thing i ever did. Jack put it a different way. To him, it was about having his grandkids over. You want to have the kids over, you want to have the grandkids over. Yeah. You want to have the family over. You want to say, this is my place. 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What happened in the last couple weeks . A lot of it has come from the valuation of these megacaps. We know, weve been telling story of how there are two markets, tech stocks, nasdaq 100 and rest of the world. Charles right. Because were not seeing the breath i think high valued stocks are risky. That is coming down, bringing the entire market down. Im a little hesitant. Im obviously worried what the fed will do midjune, where they will direct us, seasonally tends to be a tough month for stocks. I think we have a few headwinds against us. Charles it is interesting, full disclosure i have my sub describers take profits in google today. We made over 30 in a few weeks in part because of the volatilities if nothing else. Right. Charles so with that said though you are seeing maybe this is a chance though so actually rotate into these small cap names . There is a lot of small cap names out there. R you looking anywhere specific . Mainly focusing on small cap value. We saw reversal of the underperformance trend starting last week. That has a lot to do with the hopes that the fed will pause, therefore making small caps further out in the future more attractive but because the spread has become so extreme were looking at 20, we havent seen these kinds of underperformance in 20 years or so on i think looking at some value stocks, if there is a downturn there is less risk on the downside but there is a lot of potential on the upside. As soon as we see a turn in the Interest Rate forecast. Charles we have xlf on the board, financials. It obviously has become rangebound, off the bottom of the range, not off the top yet. You like financials. Youre sifting around in there for some opportunities. I think some diversified. Im not ready to jump into the regionals just yet. Charles you have to goldman, Morgan Stanley. Charles you have to have nerve to jump into any regional now. Exactly. Because those larger banks that actually will most likely profit from some of the cash flows going into them, are, you know, pretty much hitting their bottom of their trading range, again its trading type of scenario. Were not looking for massive growth out of them but i think there are a couple good buys where theyre really at support levels lying goldman, Morgan Stanley, there could be a shortterm opportunity. Charles so at any given moment weve got, weve got a cpi number coming. I think that comes before the meeting . The morning of the first day of the meeting. Charles then after that the pce. At any given moment though if we get some sort of, feels like we need one bad cpi number, one number on the jobs report where there is a big down, not the birth rate trickery theyre doing, that people are seeing through to really solidify the fed is out of the way. When you believe the fed is out of the way will you become more aggressive . Yes. That is what were really looking for, not so much focused on Recession Risk but really about Interest Rate risk and whether that inflation is finally coming down. It is going to be, you know, that june 13th, 14th, will be such volatile days. For your day traders that might be the opportunity but weve got the cpi report on the 13th, they were the fed release on the 14th. 13th, 14th. It will be an interesting midjune. Charles right. Then probably some calm for the second half of the month. Charles buckle up, boys and girls. Thats right. Charles dont take middle of the week off. Thats right. Great stuff, erin, appreciate it. Thank you very much. Youre welcome. Charles coming up my takeaway last week i had a chance to speak with the new york jets about a lot. Financial literacy. Believe me they were absolutely amazing. I cant wait to share some of that with you in my takeaway. Apple vr headset. 3,000 bucks. Erin can afford it. Im not sure the rest of us. 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Tell your doctor if your Crohns Disease symptoms develop or worsen. Serious allergic reaction may occur. Best move ive ever made. Ask your dermatologist charles everyone is sew excited about technology, that is all we talk about. It shouldnt be a surprise to you. This is mindboggling. Largest inflows into tech in one we can ever, ever. Natural inclination on wall street when you see Something Like this its sell signal but what if it is the first inning, Fourth Industrial Revolution . I wanted to bring in Neuberger Berman investor dan flax. Youre a fundamental investor. I dont know in this sort of stuff, Behavioral Analysis situation you at all but when you see this have we come too far too fast . Charles, i think it is very early. We talked about the development of generative a. I. We see with Virtual Reality these trends are just getting going. I appreciate some of the moves they have made. If we look at google, apple, amazon, executing on their product cycles. That will ultimately drive growth. Charles youre okay with the explosive moves around nearterm volatility because youre looking further down the road . Were trying to see which companies have the intellectual property to really build devices and services that will delight users that will translate into Revenue Growth in my view. Ultimately it is the Free Cash Flow generation. These companies are spending tens of billions annually on r d and Capital Expenditures so there is a lot of growth ahead. Charles they have a lot of money but have to execute. Nvidia, a. I. Kind of eclipsed them, apple offering mixed reality future, ar, vr, which Mark Zuckerberg must feel great about, because all of the heat he took money he is spending on this, to a degree this validates the metaverse, right . It helps to validate what Mark Zuckerberg and meta are doing. As we know the broader industry is trying to tackle this problem, slash, opportunity, given how many issues you need to solve from a technology standpoint. The key is devices. What do we do with them . Sports, video, content, face timersaging. Facebook or meta is going after it. Apple is. It is a multiyear journey. Charles back on a. I. For a moment. Couple weeks ago i read an article, 2030, globally, worldwide, up to 30 of electricity will be used to power a. I. , just a. I. That blew my mind. The Computing Power to run a. I. Systems is like way up here, something we havent seen before. Is there infrastructure there to at least live up to the hype at least near term . In the near term there is a little little bit of hype but part of magic youre seeing going on, chatgpt and a. I. Going into broader business and society. Yes the computing and electricity costs are enormous. Cloud providers, amazon, google, microsoft, harnessing other wind, forms of power to try to do this. The other thing a lot of devices themselves, these edge devices have compute locally and thats an important point because it will actually take place on the device, not in the cloud. Charles last week, challenger, Gray Christmas the jobs company, put out jobs layoff, first time on the report, Artificial Intelligence took 3900 jobs. We read articles it will take 300 million jobs. How does that impact the companies, the revenue potential or i they make a lot of money, the rest of us are what, just watching from the sidelines . I think what is happening that the tools getting created everyone in every business will create them and google and microsoft. Charles you will be able to fire your wifes nephew who never did anything anyway . [laughter] the goal for everyone, when we speak to Companies Across industries, theyre looking for skills. Sure generative a. I. Will replace some jobs but a lot of new opportunities will be created, charles. That is what i think is very interesting as we think about the next several years. Charles you could have a different kind of skillset, right . Correct. You need more data, science, a lot more facility with software and analytics. Part of what youre seeing with nvidia and others is making it easy for order flairry nondata scientists to tap in what is out there. Charles i hope youre right, man. I hope all the industrial revolutions in the past, netnet society will be better, well create more jobs, well live better and better lives. Meantime we put some of a. I. Holdings. Youre spot on. You were there before almost everyone else. Thank you, charles. Charles all right, folks, coming up my takeaway on the Financial Wisdom i wanted to share with the new york jets and something they gave me back which is a lot of hope. I will explain in my takeaway. Municipal bonds dont usually get the Media Coverage the stock market does. In fact, most people dont find them all that exciting. 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First, theres an idea and you do something about it for the first time with godaddy. Then before you know it, it is a life changer. you make your first sale. Small business first. Never stopped coming. we did it and you have a partner that always puts you first way. no way start today at godaddy. Com. Charles so last week i had the privilege of speaking to the players on the new york jets, now, it was toes tense by about financial literacy, so i took the opportunity to go far beyond basic if financial literacy. Theyve heard about players who have ruined their lives and, of course, while something you never want to forget, people blowing millions of dollars, but i also wanted to talk about how they can play a greater role in society. Of course, we talked about generational wealth which is a hot topic among young adults, everyones talking about generational wealth. I did warn them about the shortsleeved purse. Its in every culture, how its about more than just money, right . You have to create a certain ethos that will guide future generations. I spent most of my presentation on how they can facilitate transformational wealth for wouldbe entrepreneurs and others, right . So they can play a bigtime role long beyond what theyre doing right now. I also shared the story of palmer lucky who, ironically enough, is tinkering with some old headsets in the garage, 16 years old, raised 2 million and a year later facebook bought the company for 2 million. Thats when they changed the name to meta. They took, they were brilliant observations, they took copious notes, and they really embraced me and show me tremendous appreciation, so i walked away from there feeling so great. And when the stories are told about these kids in the future, it wont be cautionary tales, itll be how people should follow their lead are. Liz follow your lead, my friend. You are an inspiration. Ill tell you whos not happy right now, meta. Breaking news, the apple effect is in effect. It may be wearing off that the tech world is still vibrating after the big unve