Amaris turns 2, Bubbles beget bigger bubbles, Not giving into the pressure

Here is part 1 of the transcript from this week’s Live Q&A. Stay tuned for parts 2 and 3.

Hey its Cody, guys. Welcome everyone. I am sorry I am late. This is a side-note but relevant in some ways so let met tell you why I’m a couple minutes late…

I apparently have an old Chase Visa card that I haven’t used in years and we got e-mails today that someone was logging into that account. So Cathy and I called and I think spent 45 minutes on the phone with 4 different departments just to get the card canceled. I thought to myself, “You know that kind of crappy customer service only happens when you have a protected oligopoly of an industry.”

And the banking industry has truly ended up in an oligopolistic kind of a market. These too big to fail banks don’t have to compete on customer service. They compete on knowing the government well, getting their subsidies, bank bail outs, zero percent interest rates and all of the stuff they use to their advantage. Not customer service apparently, because that was painful. I had it on mute and I’m sorry, Cathy, that you had to deal with that.

We finally got off the phone about 1 minute before the call and it took me about 3 minutes to figure out how to dial in because even though I am a telecom, communications, technology -lover, I can hardly figure out how to turn on my computer sometimes. I’m kidding on the last part, I can turn on the computer.

At any rate lets jump into today’s call and like I mentioned, do an overview of the markets a little bit. But first, I’ve been meaning to mention that my littlest girl, medically-fragile and a miracle for being here, turned two years old last week! Here’s a picture of Amaris and me playing Jedi Knights with bubbles at her birthday party last Saturday.

Many of you ask about my family in e-mails when you send questions in for this chat. Thank you, by the way, for the kind words and asking about my family. Amaris is doing incredibly well. She is just so cute and so happy and so healthy all the time; She is getting bigger, her core strength getting stronger, her eye sight sure does seem to be a lot better than anyone thought it would be. Everything about her is so much healthier than anybody thought could possibly be. It is just truly a miracle in front of our eyes. And Lyncoln is just about Daddy’s best friend. I mean we have been tight a long time but the last week that girl has been all about dad, all the time, even when she first wakes up and when she goes to bed. Pretty cool! Can’t complain about that.

Let’s talk markets. Big bounce obviously in the markets today after as MarketWatch declares it, the “worst day in a month!” which was yesterday. Dow up 155, up here at records. Sometimes I feel like a broken record when we talk about the markets and the economy and their most likely outcomes for the near-term, mid-term and long-term. You could put on one of the conversations we had about the markets and the economy and the bubble-blowing dynamics of the market for the last two and last five years — thoug lately as I have been saying it sure feels like we are getting into well that bubble. Of course, I wouldn’t be surprised for it to get a lot bigger before it pops.

A couple weekends ago, a brother-in-law of mine sat down and we were talking about life and stuff then he asked about the economy and the markets and he said  “Ya know it’s funny, Cody, before I ask you about the economy and the markets. I’ll just tell you for like the last 5 years, you have sort of said that it will be a pretty good, steady growing overall economy. The markets will be bubble-blowing. Are you going to say the same thing today?” I said “Yeah, if you’re going to ask me about it, I probably am.” That Bubble-Blowing Bull Market dynamic I predicted and positioned us all for has been real, it has been accurate and it continues to probably be the most likely outcome.

As always, we have to be ready for black-swans or things we don’t see or tragedy or blows up in the markets themselves, but clearly that hasn’t been what has driven the market for the last 7-8 years or 7-8 months as we are hitting all time highs.

Another important thing I want to note, is that I am feeling a lot of internal pressure. I am feeling a lot of pressure to come up with trading ideas for you guys and for the new subscribers out there. One of the questions that I got in an e-mail that that I will answer later in the call is from a new subscriber who has bought some of our revolution stocks including, I guess, a small tranche or two in Nvidia, Amazon and Facebook. But he is looking for the next Nvidia, Amazon, Facebook, etc.

Yes, so am I! But I don’t want to buy something because I feel pressure to deliver an idea to you guys. That is counterproductive for all of us.

So, I will continue to do what I do and plug along and research stocks looking for great buys (and some great shorts) for us. I am working on the new book I’ve been telling you about with new stock picks for the autonomous car revolution and the artificial intelligence revolution.  Some of the names in the book, we already own and I’m trying to find some undiscovered looking ones. Or ones that haven’t run up 500% or something since the last time I wrote a book about the stock picks for the autonomous revolution, 2 or 3 years ago.

I want you to know that I’m not going to succumb to the pressure. I will pick and buy stocks when I see great pitches, when I think there’s a good pick. I hope and believe that new subscribers and I know that long-term subscribers appreciate that about this service. As I remind people often, there is a lot of value — new subscribers please do listen — in not over-trading, in not being desperate, in not seeking a quick return. Because investing and trading is always hard. Short-term trading is especially hard over any extended period of time. Even if you get lucky for the near term, it’s hard to sustain. It’s hard to not have 6 months of draw down at some point, or just having bad luck and being wrong for a while in the next 5 or 10 years or next 5 weeks.

So, I’m going to keep finding companies that I think are revolutionizing the world first and foremost. I’m going to keep finding companies that I think we have an opportunity to buy cheap, secondly. The best opportunities are when those two things intersect and there will be many, many pitches in the next few weeks, next few months…wait! Let me rephrase that. There will be some pitches in the next few weeks that I will probably want to swing at. But there will be many, many pitches in the next months and years that we will be swinging at with Trading With Cody.

Our mission is to maximize our risk/reward over the next 10,000 days, the next 30 years, etc. Whether your 30 years old or 60 years old. I hope you’re planning to live to 90 years old or much longer than that! But even if you’re 90 years old and reading this, you don’t need me to tell you it’s about the long-term. The folks who are 90 and have wealth to invest are clearly not the ones seeking to day trade Bitcoins so I don’t even need to explain that to them.  Anyway, let’s be cool, let’s not succumb to pressure. Let’s not be greedy. Let’s find great pitches.

Stick with me guys, we will get there. It doesn’t happen all the time, immediately. Amen to that I hope you say. Can I hear you say, “Amen?”

Stay tuned for parts 2 and 3.