Morning all. Stocks up early. Must be the all-clear signal? Just kidding. Stay careful out there.
I’m not making any moves today, but am sitting tight, working on some new ideas, making some calls on some of our existing positions and otherwise hustling to stay on top of our economic and market analysis.
Here’s a lightly edited transcript from yesterday’s episode of The Cody Willard Show, including the topics of: How will the collapse of Turkey’s economy impact you?; What’s the point of lobbying anyway (using the NM Governor race commercials as examples)?; If Facebook becomes a bank, will we call it Facebank and will it be worth a trillion dollars?; Why gold will go up 500-1000% in my lifetime, “Are they Revolutionary or are they Fitbit?” And sports with Ross the Boss.
We’ll be broadcasting another episode tomorrow (Friday) at noon ET.
You can watch a replay this morning’s show on Facebook here or on YouTube here.
The Cody Willard Show is a live show that you can find on Facebook, YouTube, Twitch TV, Periscope, Twitter and elsewhere. We also publish it each week in podcast form on iTunes, Soundcloud and Stitcher. And we send out a transcript of each show exclusively to Trading With Cody subscribers.
Speaker 1: Coming up on The Cody Willard Show, how will the collapse of Turkey’s economy impact you? What’s the point of lobbying anyway? Sports with Ross the Boss, and if Facebook becomes a bank, what’ll we call it? Facebank? The Cody Willard Show is brought to you by tradingwithcody.com.
Cody Willard: Welcome back, everybody to another episode of The Cody Willard Show, where we really do strive to be objective. We’re not going to claim that we have reached or attained objectivity, but I guarantee we’re not slanted left or right in any of the usual ways that they slant these paradigm and this way of framing the world these days. My executive producer, co-anchor, Chris McHugh in the house.
Chris McHugh: Well, stocks are getting crushed this morning as the economic crisis in Turkey escalates. How will Turkey’s collapse that’s been dominating the financial news headlines for days now affect people here in the US, Cody?
Cody Willard: What is happening in Turkey is a long time coming. These bubbles and … I don’t know. It’s almost like a vacuum underneath the system itself end up and they develop over time in these especially highly corrupt economies, and Chris, can you run our tape? The guy running, Erdogan, the guy running Turkey tried to climb on that economic horse and this is real footage of him at some event. Ouch. Didn’t work out so well for him, but Turkey’s not the only economy that’s going into collapse right now. Argentina, this is footage of the streets in Argentina and the people hungry and rioting.
Cody Willard: We almost joke about it a little bit as we think about how this applies to us in the US, but we should step back and recognize that there are people suffering. There are people going to be hungry and losing their homes and businesses, and there’s real-world pain out there that these markets reflect. When the stock market here is down 250, 300 points or whatever it is as we’re talking right now, it’s not necessarily going to impact you at home.
Cody Willard: It’s not like your business in Ruidoso, New Mexico, or New York City, or anywhere in between is really going to be impacted directly, but what is concerning and what you have to just sort of be aware of is number one, this economic cycle is long in the tooth already. It’s eight, nine, ten years of growth, especially of corporate earnings growth. Meanwhile, stock market valuations have really been on the rise. Sure, earnings, corporate earnings and sales growth have been good over the last eight, nine years during this boom, but the prices have actually probably even outpaced a lot of that growth in the actual fundamentals.
Cody Willard: You’ve got price to sales in the overall S&P 500 that’s now at like 2.2, the highest it’s been in many, many decades. That can be how this ends up impacting you is if the stock market is already overvalued and there starts to be a sell off there can be a contagion. Most of the time in the years past, the last three or four years, I’ve typically just sort of bought when there’s been a geopolitical crisis of some sort like this. At this stage of the game, these crises seem to be accelerating. We’ve got two in about three or four weeks with Argentina and Turkey. We’ve got Indonesia, Malaysia, and several other countries merging markets that look like they could also be impacted pretty soon here. To take it all together, it can end up impacting the stock market. It can impact bank earnings, and contagion can happen.
Cody Willard: I’m not saying the bubble-blowing bull market that we’ve all been riding at Trading With Cody for the last eight years while this bubble-blowing bull market has been in bloom.
Piper: Nirvana reference in there too.
Cody Willard: We’re going grunge right there. In bloom.
Cody Willard: Oh, and a little Nirvana reference too. I didn’t catch that. I was just being alliterative. At any rate, it’s so long in the tooth and all the stuff can come together and undermine the markets, the expansion, the economy. It’s not that it is right now about to, but I will tell you I am more cautious now than I was six months ago. I’m more cautious today than I was two weeks ago. I’m certainly more cautious and in much more cash today than I was six years ago, so be aware that, yes, this isn’t really going to impact you directly any time soon but there’s always the chance that markets come unwound and that real-world pain that is happening to people in Turkey and in Argentina comes home to roost here. Chris.
Chris McHugh: Cody, you always get lots of great feedback and questions from the viewers, and one of them wrote on Facebook a really thought-provoking detailed question. By the way, for the viewers at home, we’ll republish the entire question in the comments section of this video, but in essence, what she asked was, “I wonder what else can be done and what exactly would be the goal of activism for the poor? Would it be more for government assistance? Would it be directed toward big companies to build and/or relocate their factories or plants to employ more of the poor?”
Cody Willard: This question stems from what we talked about a couple, three episodes ago when I ran some footage of Michael Martin Murphey’s concert and talked about how he said he used to be a civil rights activist and he no longer is. Most of the show he had hit on Republican conservative talking points. I wondered, is there activism for the poor anymore? Chris, it’s a great question because it got me even thinking about the governor race here in New Mexico with Republican-Democrat regimers who are running for governor here and what their grand ideas and what they’re supposed to do to help us, help me, help the people of New Mexico. Chris, go ahead and run one of those commercials. Will you?
Michelle Lujan Grisham: Some call our state the heroin capital of the country, but the truth is opioids and crime are problems all across New Mexico.
Cody Willard: Wait. What?
Michelle G.: Some call our state the heroin capital of the country, but the truth is opioids and crime are problems all across New Mexico, but we can do something about it. I’m Michelle [crosstalk 00:06:48]
Cody Willard: That doesn’t even make any sense what she just said there. I mean, let’s let her finish, but my god, there is a problem in New Mexico, but the truth is there is a problem in New Mexico. Keep going, Grisham.
Michelle G.: … millions of dollars for police training, and as governor, I’ll force the drug companies to stop pushing opioids and start paying for treatment. The people of New Mexico deserve better.
Cody Willard: So aside from the fact that whoever wrote that commercial for her failed English 101 or something because you can’t say, “But the fact is …” “But the truth of the matter is,” and then repeat the same point you just made, which is what she did to start the commercial. Every time I’ve heard that commercial, you can ask my wife, I go, “Wait. Did I just hear her say what she just said? Because that does not make any sense. How did that get vetted?” Then, of course, I remember that she’s been the entire system, her commercial, the propaganda that she’s going to do, that Pearce is going to do that I’ll run in a moment — The Republican side of the governor here. — it’s all been vetted by the Republican-Democrat regime and it’s never going to be any good anyway.
Cody Willard: But if you’ll notice her ideas it’s, “Hey, I’m going to get more money from the Federal government. I’m going to get more money from these people. I’m going to get more redistribution of wealth.” Now let’s run the supposed conservative Republican side of this and let’s see one of his … Let’s see what his grand ideas are how to save jobs and fix New Mexico. How is he going to help me and Piper?
Speaker 7: Big ideas for a better New Mexico? Steve Pearce has a few.
Steve Pearce: A new silicon mesa where 21st-century industries would set up shop to support our national labs with a highly trained local workforce. Put apprenticeship programs into high schools so kids have a pathway to a good job if they’re not going to college. Cool jobs with better pay. Upgrading air conditioners-
Cody Willard: Cool jobs.
Steve Pearce: … to cut pollution. Powering solar panels. Let’s get creative. Jobs in the film industry. Making movies or political ads.
Cody Willard: So more welfare for Hollywood movie and TV companies.
Speaker 7: Steve Pearce. Leadership for New Mexico.
Cody Willard: So his grand ideas are also let’s just redistribute wealth from Piper and me who are working and paying our taxes to a corporation and entice them to come here and create jobs for me and Piper, I guess, with my own tax welfare money. Everybody, the entire system, Republicans and Democrats, what are they doing?
Cody Willard: Like I talked about last week, they are all just figuring out how to redistribute wealth. They are just going to the government till. It is all a form of welfare. Pearce wants to do welfare for giant corporations to help create jobs, while Grisham wants to do welfare for drug addicts to help … Going back to the question here. What are we supposed to be lobbying for? What is Grisham and Pearce supposed to be doing?
Cody Willard: Well, number one, they’re supposed to be fighting for your rights. They’re supposed to be helping you keep your money. They’re supposed to be helping you be free. They’re supposed to be protecting you from predators. They’re supposed to be protecting you from invaders across the country. The only thing you need the government to truly do, and this is what the whole Constitution was supposed to be about, and Republicans from Trump to Pearce and Democrats from Grisham to Obama, all of them have lost this concept. That small government. Truly. The whole point, what you’re supposed to be lobbying for, the only way to help the poor is to defend freedoms and allow prosperity to happen, and allow …
Cody Willard: The government always has an agency problem. It’s never Steve Pearce’s money. He wants to spend my money, he wants to spend Piper’s money, but it’s never the government’s money. There’s always an inherent agency problem, and unless the government specifically does what the Constitution specifically outlined it should be doing, which is simply limit the government and redistribution of wealth in every shape and form, then we’re all going to suffer. I want to help the poor and if we’re going to have welfare programs I’d much rather them be for the poor than for corporations, but all of it is socialism.
Cody Willard: All of it is a slippery slope toward communism and fascism where the government truly is in bed with great, big business and controls all facets of your life. We don’t want that. We don’t want bailouts for farmers and we don’t want more welfare for corporations who might come here and create some jobs. I’m paying full taxes and I’m creating jobs. Including the guy sitting right here next to me and the guy on the screen about to pop up. Thank you, Chris.
Chris McHugh: You are so welcome, Cody. You know what? Coming up you can cool your jets on the politics for just a little bit. Take a-
Cody Willard: Please. Thank you.
Chris McHugh: … a little drink, something like that because coming up after this commercial break we got some amazingly bad movie reviews and Ross the Boss. Why not?
Cody Willard: Cool. We’ll be right back.
Speaker 1: A former CNBC and news anchor, hedge fund manager, and the go-to stock market guest for The Tonight Show, Cody Willard and his stock analysis have been published in The Financial Times, The Wall Street Journal, Fortune Magazine, and many other places. Want to follow his secrets to investment success? Go to tradingwithcody.com. There you can get analysis on stocks, cryptos, markets, and the economy. A full list of Cody’s positions, access to Cody’s chatroom, trade alerts every time Cody buys or sells, and much more. To find out more go to tradingwithcody.com.
Chris McHugh: Hey, we’re back, Cody. What do you say we do a little B movie action?
Cody Willard: Chris, I heard you’ve got a good one today. I actually snuck in and watched a clip of Cory’s latest Amazingly Bad Movie Review. Let’s see it.
Chris McHugh: Okay. Here we go.
Cory Turner: This is Cory Turner, and welcome to Cory Turner’s Amazingly Bad Movie Review. You know how some movies are so bad that they’re funny? Well, 1966’s Manos: The Hands of Fate is so bad it’s just bad. This movie that was made due to a bet by its director, a Texas insurance and fertilizer salesman … Did you say fertilizer? It’s all starting to make sense now.
Cory Turner: The movie follows a man who is also the director, his wife, and young daughter who are on vacation. Now, after a long uneventful driving sequence, they are lost and seek help and shelter from a house that just popped up out of nowhere. Now, much to their dismay, they house is owned by a polygamist pagan cult leader who decides to violently add the wife and young daughter to his harem.
Cory Turner: Horrible acting, confusing editing choices, actors who look at the camera, and dubbing of all lines that I’m sure were done by the same three people, Manos: Hands of Fate, well, if it was made because of a bet, I’m sure they lost that bet.
Chris McHugh: Pagans, Cody.
Cody Willard: Pagans.
Chris McHugh: You know what I learned from the movie Dragnet back in the ’80s? Pagan stands for people against goodness and normalcy, and they’re just no good.
Cody Willard: You’re taking your morality from Friday? Detective Friday? That’s going to be our gauge? 1950s morality. I love it.
Chris McHugh: No, no. This was the ’80s. The reboot.
Cody Willard: Dan Aykroyd. Even better.
Chris McHugh: With Tom Hanks and Dan Aykroyd.
Cody Willard: Let’s take our morality from Dan Aykroyd.
Chris McHugh: You can’t shut that down. It’s like shutting down a Bill Murray reference or something. You just got to go with it.
Cody Willard: I always love a Bill Murray, Dan Aykroyd reference. Chris, let’s jump right in. I’ve got my main man, my partner in crime, my sports aficionado, former producer of The Tonight Show for many years, with no further ado, let’s bring out the man himself. Ross the Boss.
Ross the Boss: Hi, everybody. I’m Ross the Boss and I want to talk sports with you, cowboy. It’s going to be a great segment, Cody. I feel it. You’re going to be involved. We’ll talk sports. We’ll talk about other things. It’s going to be great. Let’s jump right into it.
Ross the Boss: What is my favorite show during August? Hard Knocks. HBO. Last night they did a great, great segment about Antonio Callaway. He’s this rookie receiver from Florida. He had a troubled past. Supposed to be a first-round pick. He dropped down to the fourth round. Of course, the first week of training camp he was busted for pot, didn’t tell anybody. Ended up coming out, telling the coach. Instead of the coach benching him for the preseason game, he played every down. I’m talking about every play, he was running [crosstalk 00:15:28]
Cody Willard: Wait, wait, wait. Ross.
Ross the Boss: He was unbelievable. Usually, you would bench somebody and punish them. You were punished. Remember when you played basketball and you were late to practice one time? The coach said, “You’re not playing the next game.” And you said, “Yes, sir.” But they did the opposite. That is great coaching. Cody.
Cody Willard: But Ross, wait, that actually … The coach forced him to play in a preseason game as punishment. Does that not underscore the fact that we shouldn’t have preseason games. I mean [crosstalk 00:15:56] There’s already being star players getting hurt, blowing out their knees in preseason in the first game. Why even do preseason games if it’s an actual punishment for the players in reality?
Ross the Boss: It’s for players like himself to make the time. I mean you have 100 guys on your roster for preseason. You have to drop that roster 50%, okay? You have practice squads and everything else. Let’s say they take the top 50, fine. He has to make the team. If he’s going to get hurt, he gets hurt, but the whole thing was this guy, instead of making him feel bad and punishing him, not having him play, the coach did the opposite. I commend Hue Jackson. Bravo, Hue Jackson! Bravo!
Cody Willard: Hey, by the way, Ross-
Ross the Boss: Young man …
Cody Willard: Did the Browns win? Do you owe me a Pepsi?
Ross the Boss: We’ll get there. We’ll get there, but, yes, Cleveland did win last week. I took the Giants. You won. I lost. Mayfield played a lot of the game. Callaway had a touchdown, just so you know. I did watch some of that game. It’s hard to watch to preseason. Again, preseason games, you don’t know how long certain players will play, but you do the best you can. I’ll have my picks at the end of my segment. Real quick. [crosstalk 00:17:13]
Cody Willard: Ross, real quick. I got to throw you a curve ball about Baker Mayfield. My little nephew, 14, 15 years old, love the kid, Jackson Willard, shout out. He has pinned to the top of his Twitter feed that Baker Mayfield will be a bust. Heard it here first.
Ross the Boss: No.
Cody Willard: That’s what he thinks. I told him I think he’s nuts. What do you call? Your call, Baker Mayfield.
Ross the Boss: Baker Mayfield did not play much this year. Next year he’ll be starting. I love the guy. I think he’s a winner. He reminds me of Brett Favre. He does what it takes to win. He’s not the biggest guy in the world. He’s not the smartest guy in the world, but he’s a winner. He won the Heisman last year. I love it. I think everybody else loves the guy.
Cody Willard: Brett Favre’s a good analogy. Hit your next topic, Ross. Sorry. I keep sidetracking.
Ross the Boss: Tom Brady. He was on the radio yesterday. That’s the first time he’s ever said this. He said that Bill Belichick is the best coach ever, ever, Cody, in the NFL. We’re talking about GOAT. Now, I don’t know if I agree with that with Deflate Gate, when he spied on the Jets practice, with all this crazy stuff he does. All the crazy tactics. He’s a good coach. He has five Super Bowls. That’s the most of any coach, but the best of all time? If I had Tom Brady as my quarterback I would win at least three Super Bowls. Cody Willard, you release with two. Of course, I have one more than you.
Cody Willard: Ross, I’ve got to ask …
Ross the Boss: There’s Bill Walsh. There’s Chuck Noll with Pittsburgh who had Terry Bradshaw as his quarterback. Does anybody ever say Terry Bradshaw’s the best quarterback to ever play? No. No, I never hear Terry Bradshaw ever in the conversation, so that all being said, I think Bill Belichick’s great. He has 250 wins, five Super Bowls, his winning percentage is over 600. He’s a great coach. I don’t know about the best ever. I can’t believe Brady said this on a radio interview, especially with all the controversy with his strength coach and him not allowed to bring his strength coach into the locker room.
Cody Willard: I’m totally okay with him saying that. I’ve just got to say even at this point, Alex Jones has Sandy Hook that he thinks was false. Idiot. Meanwhile, I actually have Deflate Gate. I don’t believe Deflate Gate. I think it was false. I’m not a Patriots fan by de facto, but I now cheer for the Patriots because of Deflate Gate. [crosstalk 00:19:36]
Ross the Boss: Ah, you put a dagger in Ross the Boss. Ross the Boss does not … I don’t like the Patriots.
Cody Willard: Sorry about that, bro.
Ross the Boss: They’re arrogant fans. There’s this guy name Chris Meyer that all he talks about are the Patriots. He pesters me. He emails me. He’ll do whatever he can to talk about the Patriots. I don’t like the Patriots.
Cody Willard: Anybody from Boston’s like that. Boston thinks that if they lived in Boston … Anybody from Boston thinks that just because they lived in Boston that they actually are part of the winning culture of the Patriots. You’re not. You’re not.
Ross the Boss: You’re not.
Cody Willard: You guys are losers in Boston.
Ross the Boss: You’re lucky to even be involved with the Patriots. You wear a jersey you think you’re a fan. You’re not a fan. No.
Cody Willard: I’m basically, [crosstalk 00:20:16]
Chris McHugh: I live in New England now. I’m part of the culture. Let me enjoy it.
Ross the Boss: I feel sorry for you. Oh, I can’t stand [crosstalk 00:20:22] The Red Sox are the best team in baseball. They’re probably going to win 115 games, which is insane. [crosstalk 00:20:31]
Cody Willard: Wait. Who cares about baseball, Ross?
Ross the Boss: I have to listen to these fans for another two months. I am so dragging watching baseball now. I can’t stand the Red Sox. I can’t stand them, so [crosstalk 00:20:44]
Cody Willard: Ross, you’ve got one minute for your last topic. Hit it.
Ross the Boss: Okay. Really quick, let’s talk about baseball. The Dodgers have lost five in a row. Kenley Jansen, their star reliever, has a heart problem, irregular heartbeat. He had heart surgery in 2012 for the same problem. He’s supposed to be off six weeks. He said yesterday, “I pitched yesterday and I feel fine. I’m coming back in a week.” In a week, Cody! Instead of sitting out and worrying about having a heart attack or having his heart stopped, he’s going out there and he’s playing. That’s dedication, Cody Willard. You complained about a sprained ankle, not being able to play one game. This guy can die any time on the mound, drop dead. Instead, he’s pitching for the Dodgers who lost five in a row because their bullpen is just awful.
Cody Willard: Ross-
Ross the Boss: Awful, awful, awful.
Cody Willard: … is the actual [crosstalk 00:21:33]
Ross the Boss: He wants that ring. He wants that ring, Cody Willard. [crosstalk 00:21:36]
Cody Willard: Is the act of pitching actually a risk itself or does he … Playing baseball doesn’t necessarily add to the risk of him dying, I hope. If so, I hope he’ not risking his life to play a sport.
Ross the Boss: You’re throwing the ball 100 miles an hour. Go on the pitching mound. He throws 100 miles an hour. There’s stress involved about pitching. He’s a relief pitcher. He come in the game bases loaded. Your heart beats faster, man. Got a lot of pressure going on. Ross the Boss feels don’t push it. You’re coming back in a week because the medication is working now and it was supposed to be six weeks? [crosstalk 00:22:15] No, but let’s get to my picks. Let’s talk about preseason football.
Cody Willard: You’ve got to hurry. We’re running late. You’ve got three picks. Go.
Ross the Boss: The first pick I’m going to take, it’s a rematch of the Super Bowl. The Eagles are playing the Patriots in New England. I’m taking the Patriots, minus the three points because I think it’s revenge. Brady’s playing. He said he’s playing this week, so let’s take the Patriots this week. Oakland’s coming back to LA. They’re playing the Rams. We’re taking Oakland. I feel they’re going to play hard. They have a great roster. The Rams are not going to play anybody. Oakland’s going to win that game. The last game I like, the Bears are playing in Denver. We are taking Denver at home, minus the three points. I feel the Bears are not going to win in the Mile High City. It’s a tough place to play, especially with their backups, so those are my picks.
Ross the Boss: Good luck. Again, it’s preseason. It’s like throwing darts sometimes, but Ross the Boss is always right. Thank you for the necklace. I love wearing this thing. It’s-
Cody Willard: You’re welcome, Ross.
Ross the Boss: … a great-
Cody Willard: Ross the Boss. Love you. We’ll be right back, folks.
Speaker 1: No matter where you turn the news is slanted left or right. That’s why people are watching The Cody Willard Show.
Cody Willard: How can we create nonpartisan news using technology?
Speaker 1: He’s an independent free thinker.
Cody Willard: Pretend that poor people are on welfare when it’s the rich people and the giant corporations that are using welfare.
Speaker 1: Whether it’s investing or politics, he’s trying to be objective. The Cody Willard Show. Watch the show online and download the podcast.
Chris McHugh: Hey, we’re back, Cody. What do you say? You know what? We did news commentary, we did sports. When’s the weather segment? When’s the weather person coming on?
Cody Willard: Next week. I’m a meteorologist. I don’t know if you knew that. I’m a meteorologist for colds and high pressure fronts in the economy.
Chris McHugh: That’s right. It’s not a degree that you can get in college. He’s a forecaster of sorts. Cody, we got the mailbag right now. One of the best segments of the show where people trading with Cody get to ask these important questions like reading into Facebook’s supposed interest in Stellar’s platform got many thinking. Facebook as a world banking system? Imagine if all it takes for someone to have banking access to the entire world in the future with just the creation of a Facebook or subsidiary account. What do you think, Cody?
Cody Willard: The reality is there. Look, if Facebook, or Microsoft, or Apple, or Ali Baba in China were to start becoming and get into a payments processing system for real to get into … What’s interesting about that concept is the mass of Facebook having attained billions of people on their platform dwarfs, for example, the United States is itself. The Central Bank, the Federal Reserve would be much smaller in comparison to what Facebook or one of these giant global companies with billions of users could end up doing.
Cody Willard: I don’t expect that to happen anytime soon, but I will tell you if it did happen and if Facebook were to do it, number one, would you call it Facebank? My buddy, who’s a hand transplant surgeon read my article when I answered this question on Trading With Cody yesterday about the Facebank. He said he would call it Bankbook not Facebank. I told him, “Yeah, that actually is a better name but not as funny, so I’m going to stick with Facebank.”
Cody Willard: The whole thing would get in the world. Two or three would end up dominating, probably just like everything else, and it would be worth hundreds of billions or trillions of dollars to become the global clearinghouse transparent blockchain platform for the world’s economies. I don’t think it’s going to happen any time soon, but it’s an interesting concept. I like the questioning, the thinking, the concept process.
Chris McHugh: Cody, next question we got is, “Roku? Are they revolutionary or are they Fitbit?” Shots fired at Fitbit there, wow.
Cody Willard: We got this question yesterday at Trading With Cody, and what’s ironic … What’s funny about it, really, is even afterward one of the guys in the chatroom was like, “Question of the year. The quote of the year that summarizes …” And I wrote back, I said, “This basically summarizes my whole approach to life, man.” Are they revolutionary or are they Fitbit? To mine, that’s even funnier, but not so is that I actually did own Fitbit from like 35 to 10. I mean, I lost money on Fitbit. I have all these stocks that are up 300, 500, or 1,000 percent that we talk about. I’m not afraid to tell you I’ve had a few losers too.
Cody Willard: The question being, is Roku revolutionary or Fitbit? Not as good as the question. I don’t care necessarily about Roku. I just love the concept and the question itself. Are they revolutionary or are they Fitbit? I will tell you Roku is closer to being revolutionary than Fitbit if only because it’s a subscription-based business, but why I don’t think it’s revolutionary is I don’t think they can scale … I don’t think they’re going to have billions of people truly to revolutionize the sectors in the world like Facebook, Apple, Google, Amazon, some of the other stocks that I’ve owned for a very long time because I did and still do believe that they can have billions of people on their network and transform and revolutionize everything. Chris.
Chris McHugh: All right, Cody. This is a long one. Stay with me here. “Cody, I got your reasons for buying GLD but sort of puzzled on the risk-reward. If you pull up the five-year chart on GLD there’s only 20% difference between its peak low and high. One-year chart shows only a 10% difference. Even if gold starts taking off, do you think it has enough upside or are your trading for 5 to 10% gain? Also, what’s interesting while checking it is that the one-year chart shows gold down by 10% from its peak, whereas JNUG down 50% from its peak. Miners seem to swing a lot-”
Cody Willard: Chris, let me cut you off. The gist of the question is gold versus gold miners. I just yesterday, just this week have taken an interest. I’ve owned gold. I’ve bought gold coins in years past when gold’s been around 1,200 or lower. It got down to 1,200 bucks again this week, and, yes, I’m actually buying some gold and even a gold ETF that I normally wouldn’t, but I’m buying it for a trade. That question is, if you only think you’re going to get 5 or 10%, what’s the real point when I’m over here investing in stocks that go up 300, 700, or 1,000%?
Cody Willard: Number one, there’s a time and place for everything, and I’m struggling to find cheap revolutionary opportunities that I want to invest for the next five or ten years and afresh. I do think gold has been absolutely trashed both near term. The charts look horrible. The chartists hate it. The economists hate it. Wall Street hates it. That’s about the time I want to start buying it. I want to buy when Wall Street hates something. I want to sell when it loves something, so, yeah, I’m selling some Nvidia. I’ll see some of my stocks that are up 1,000%. I’ll trim some Apple and maybe buy a little bit of gold here while it’s hated.
Cody Willard: In my lifetime I expect gold is going to go up 500 to 1,000% if only because of the fiat currencies of the world. While the US dollar will always be the strongest fiat currency relative to the other fiat currencies in the world, gold will over time rise in price and probably at some point we will have another financial crisis and/or stock market meltdown, et cetera, et cetera, and gold might be reset. The price of gold versus dollars.
Cody Willard: I mean it’s not like they’ll go, “Oh, we declare the dollar is worth one-tenth of what it versus gold yesterday,” or something, but over time I do think gold has lots of upside in my lifetime. Not necessarily this month. Not necessarily this year that it could go up 500%, but even in the near term. I think gold could be up 20 to 30% this year. Chris, in the next year, I should say. Not by the end of this year.
Cody Willard: Chris, we have one question from Facebook. I don’t know if you’ve got it, but I just saw it pop up here.
Chris McHugh: No. Can you go ahead and read? I’m not looking at it. I don’t see it.
Cody Willard: “Cody, how does raising interest rates save your collapsing currency?” Going back to the topic of Turkey. This question was real time when we were talking about Turkey. Nobody will lend you money at any rate and you have to create more currency to pay more interest if you raise interest rates. That’s what the question is.
Cody Willard: The answer is it doesn’t. Nothing will help. I mean, again, I don’t think there’s anything that Erdogan … Hey, run that video if you can, Chris, of him falling off the … Erdogan and the Turkey economy has no choice. They got on that horse. They have been riding a corrupt, bubbled, bad setup and they’re getting knocked off, and now the world, the system, God, the universe, it balances out. You can’t have bubbles and dislocations in the markets and long-term corruption. Are you listening Republican-Democrat regime voters?
Cody Willard: Slow, slow road. Slippery, slippery slope towards what Turkey’s going through. There’s nothing Turkey can do. Raising rates isn’t going to help them. It might prop something up for a little bit. Any move that Erdogan has ever done is exactly sort of like the Republican-Democrat regime, just to a smaller scale by the Republican-Democrat regime. It’s always done for the benefit of some of his cronies. He’s not trying to save Turkey’s economy. He’s not trying to help the people of Turkey.
Cody Willard: Remember, Trump, nor Obama, nor Hillary, nor Clinton, nor Bush, none of our own leaders are trying to help you either. That’s a whole system that’s corrupt here too, just not as bad as in Turkey. Be careful out there. Peace, love, and happiness, everybody.
