Chit Chat Stocks - The Great Oil Crisis of 2020

Episode Date: April 21, 2020

This week we have no interview, but we have an exciting story to discuss regarding oil. Before we get to that, host Ryan Henderson briefly covers the time to build article by Marc Andreesen (1:02), and then we dig into the oil crisis. On Monday, April 20th, May futures contracts for crude oil fell to negative prices, an unprecedented event in oil markets (5:50). Brett Schafer and Ryan Henderson describe why that happens and what to expect going forward. We get political this week for our current state of fintwit (17:03) with the new mass protests. For our draft this week we have the top 3 best and worst investors to have to quarantine with (22:19). As always, we have our Hot Water (31:51), FMK (38:53), and Anecdotal Evidence (40:30). --- Support this podcast: https://anchor.fm/chit-chat-money/support Learn more about your ad choices. Visit megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

All right. Welcome to Chit Chat Money. Today is Tuesday, April 21st. We do not have an interview today, although it has been a pretty crazy day for the markets or the oil market in particular. So we're going to talk about that, right? Yeah, that's my story. Okay. And then I am going to talk about the Marc Andreessen article, It's Time to Build. I won't get that much into it right now, but I'll be discussing that. And then we have a draft of best and worst investors that we'd want to quarantine with and least want to. And then as always, we have a current state of FinTwit. We have hot water. I've got a lot of

hot waters this week. Fuck, burn, kill and anecdotal evidence. So let's go. okay welcome in uh i'll kick things off this week mark andreason wrote an article about um well wasn't it was more of a complaining piece but uh it's got a lot of commentary it was kind of an expose um and do you want to talk about who that is just in case i don't think everyone knows yeah so he's a venture capitalist i'm not sure what his entire background is but he runs andreason horowitz which is like the big vc firm or i mean there's a lot of big vc firms but it's one of the big vc firms in silicon valley he's kind of like the silicon valley i don't want to say god but he's you know one of the vcs that's probably the most um well known i guess i could say where how

did he start again how's what did he found uh it was either him or horowitz was the guy that found a netscape which is the original internet browser uh because before that was all dial-up weird stuff um and then you know that story about microsoft uh where it might have been horowitz i can't remember but andreessen might have been the guy that uh you know founded that um and they kind of got crushed by microsoft giving away internet explorer for free um and then out of the money out of the netscape ipo they started a vc fund and they've done extremely well okay um so this week he wrote an article and a little bit about the summary he started by describing the lack of preparation from Western institutions related to coronavirus. And he highlighted the unpreparedness

around the medical community, but he also moved into basically ripping apart every institution in America beyond coronavirus as well. So from education to structures to manufacturing and transportation, he didn't offer a whole lot of solutions. And he essentially said there was a lot of laziness going on i have a quote here from the article it says you don't just see this smug complacency this so you don't just see this smug complacency the satisfaction with the status quo and the unwillingness to build in the pandemic or in health care generally you see it throughout western life and specifically throughout american life so uh i he must have been having quite the bad day um yeah and then after beating basically berating every system in america he he claimed

that the problem is a lack of desire i don't think it has anything to do with a lack of desire to be quite honest um yeah i like where he was going with it uh for one you know first off he uh he mentioned the tesla elon musk dreadnought factory which i kind of just had to take out of my head because that doesn't exist they make cars in a tent but he also is a vc that invests in a lot of digital things that have really distracted um you could say a lot of the population uh you know facebook instagram things like that from uh you know trying to actually work on the problems um that could be coming down the line right and i don't want to like slander this piece because it was all around like a decent piece it was just like a lot of complaining and he did say some

stuff that a lot of people would agree with so i have another quote here it says building isn't easy or we'd already be doing all this we need to demand more of our political leaders of our ceos our entrepreneurs our investors we need to demand more of our culture of our society and we need to demand more from one another we're all necessary and we can all contribute to building and he kind of like challenged people he said i know i'll probably get a lot of negative feedback from this but i propose you to come up with a solution and instead of like berating me for not coming up with mine the problem is for me this there's i did not come away from this inspired and if the point was to inspire people i think he did a poor job yeah honestly i mean it's fine you know it went viral

it might have inspired some some people out there uh you know it really inspired a lot of people to post all caps on twitter um it's time to build which is a little ironic uh but i don't know maybe he they should have launched a vc fund um and said like hey we're gonna invest a billion dollars into actual stuff that will help people not just another uh social media company uh but i think that's the best thing he could have done uh but there's nothing wrong with this essay no i i guess not i don't know it just like it felt like a lot of like hindsight bias where i mean like especially at the whole like first half of the piece was basically that everyone was unprepared and i was it's it would be funny if it was just all about legos or something

like yeah he's like it's time to build and then it's just a video of him making a whole like lego castle okay anyway so that piece came out actually it is worth a read uh see what you think maybe you're inspired and you buy a new lego set or something but let's get into the major discussion which is oil futures um do you want to talk about it yeah i mean we i mean i think everyone saw this uh today we're recording on monday april 20th uh 4 20 elon musk day apparently uh but yeah oil futures went negative uh which a lot of people thought that that meant oil was you know you were getting paid you could get paid to have oil which technically isn't true but it also is true so here's the headline prices on futures contracts on west texas crude that expired tuesday

fell to negative 3763 a barrel now there's a lot of impact there and we can probably go through why this happened and then do a quick explainer of how the commodity markets work specifically with oil because i think as you know us before we kind of researched this and like 99 of people on fintwit we didn't really understand how it truly worked you know maybe we just follow a lot of uh you know long-term stock investor guys but that's kind of you know all those people seem to be like freaking out um and maybe they're just being sarcastic but first up what is a may oil futures contract you might think like it's not really the price of oil why does it have to do with a month why is it a futures contract so basically it is an abstract financial instrument

that lets you bet on oil prices without actually owning physical oil not something a lot of people want to do however it converts to physical oil in may and you have to quote take delivery of the oil when it expires if you own it so there's a lot of different oil futures contracts and it goes out on to this curve and the curve goes all the way out to 2030 and that's just like different futures contracts and what you know speculators or people that are hedging like airlines or something like that are betting on what the price of oil is going to be and then if you continually buy and like sell these monthly oil futures to say you're a hedge fund you're betting that

the price of oil is going to go up you bought the May futures but then you Once this came around, you dumped it because you don't want the physical oil, and then you buy the June one, and you just keep perpetually doing that. This is called rolling the futures, and you essentially bet on the oil price without actually having to take delivery of physical oil. Again, not something a hedge fund in New York City wants to do. The problem is, though, with the shutdowns, oil demand has cratered with estimates that international demand is down around 30 million barrels per day for demand. And then you had a note here about what the actual demand is from all the countries. Do you want to get into that quicker? Okay, yeah.

So the worldwide crude oil production, I think this is in 2018, was about 95 million barrels per day, 42% of which came from the OPEC member countries. And OPEC is primarily Middle Eastern and North African countries. And the U.S. was producing around 12 million barrels per day in 2019. However, the United States alone consumed 20 million, but – so think about it. Worldwide production was at 95 million barrels, and demand plummeted with estimates apparently of around 30 million barrels per day. That's massive. Yeah, that's huge.

It's unprecedented, as a lot of people are saying. And Saudi Arabia is kind of going for, they're kind of going, I think they're going for the DoorDash model of just destroy everyone and we'll come out from the ashes. They're actually like increasing demand. I think they're in negotiations with a lot of countries to decrease demand, but they're kind of going full scorched earth here. And there's a lot of political things going on with the people, the output and things like that.

But yeah, so that's just kind of the full outlook of why the oil price is crashing. I want to sort of unpack some of the stuff you said. So if you bought May oil futures today or whatever at negative $40 and you thought you were making money, like they're giving you money to invest in oil. If you let that expire, there's the option that it can be executed and you have to be able to take that, right? yeah and yeah yeah and i'll get into why it went negative this time but yeah typically uh it converges on the actual price because i had a refinery or someone who actually wants the oil is going to buy it but yeah let's say let's say that i mean do you have to be qualified to uh have hit certain metrics in order to invest in oil futures i think you just have to have um enough capital it's like any futures trading you don't want to just buy up you know how like i mean you can just buy up technically all the futures um what was it there was that story about

the medallion fund in that book how they actually like own 90 of the wheat or the futures of wheat in the country which is kind of crazy but that's just kind of how the futures market works um i don't think anyone actually or usually uh takes on the actual oil so then who buys it but what I'm sorry? So then who actually buys it at the end? Refinery. Yeah. Okay, and they always usually just wait until the end.

Is that like end of the month, I'd assume? Yeah, they're the only ones. From what I read, they're the only ones that actually hold the contracts until the expiration date. It's kind of like a call or put option in that regard. Continue, sorry. Okay, so another question you might have is what is WTI or West Texas Crude? That is one of the benchmarks for oil pricing, one of the three, and that is the American one.

Why did prices go negative? That's probably the big question on a lot of people's minds. So the economic slowdown has made it so supply has totally outstripped demand. It's a basic supply and demand curve from Economics 101. And American companies have run out of room to store the physical oil. So they don't have, they literally don't have room to store the oil. So they don't even want to buy it if they have like, say you have a warehouse or something like that or it's not a warehouse but whatever you use to store oil uh they don't have room for

it so there is it's like they don't even want any even if it's super cheap that caused prices to totally plummet so if there's no place to store it nobody wants to own the futures contract that is about to come due even the refineries so this may be may oil futures market go quote unquote no bid and basically just plummet like in demand and the other thing yeah and the other thing if you're like hearing this and you're like, okay, well then yeah, sure. I'll take the $40 and I'll take a barrel of oil. Like you, you have to be able to accept it and you have like, no one wants that. You literally could not. And this is why it's priced like this. You couldn't pay me $40 to store oil in my backyard. Right? Yeah. The there, that's why it plummeted to negative rates

is because they were having to pay people to take it off their hands. There's nowhere for it to go. right okay continue okay last question someone might have is like what is the actual true price of oil so i'm still trying to figure this out like there's not really a good like single metric it's not like the s&p 500 where there's just one price that it's at and it trades however one interesting note though is that the june contract which is still above 20 so that's like the june contract that's kind of going to roll over what a lot of people are going to start buying so people think it'll be $20, I wrote a share here, but a barrel, then this is the largest month-to-month spread ever. So basically it broke the oil markets. Technically though, when May contracts expire,

the quote unquote price of oil will be the June one. So it's going to go back to positive likely tomorrow. Unless, I mean, maybe when you're listening to this, we're seeing that we're negative oil prices on the June one, but that'd be crazy because it's still so far out. So typically the physical price of oil will converge onto the end of whatever the current contract is when the expiration date is just because that's the demand versus the supply on what the actual refineries want. And this time the market just broke. Correct me if I'm wrong, but it's based or it's predicated on the idea that these gas stations and the refineries and all this stuff are able to get rid of the gas. So assuming that civilization goes back to normal, the shelter-in-place order is disbanded or whatever, and people start driving around again, that's when gas prices will go positive. But if this shelter-in-place extends, then we're going to have negative prices again, correct?

Yeah, well, I mean it's hard to tell, but it's not gas. Oil – gas is what you get out of oil, so we're not going to get – on one on one end yeah they don't i don't think they have it's different their supply which is like say someone from saudi arabia or saudi aramco and they sell to the refineries refineries make stuff and then takes another process to get down to gasoline so there's a whole big uh thing there and gases aren't gas prices aren't going to go negative because that's actually a physical thing but unless they increase the supply within the american um refineries where you can store physical oil and if demand decreases while like saudi arabia russia the shale companies aren't

pumping out or are pumping out excuse me then there's going to be no supply and there's going to be or sorry there's going to be too much supply no demand and we'll probably have the same thing happen again but yes if things go back to normal demand you know skyrockets because the pandemic subsides or whatever or people start going back to their daily lives but there still is a ton of uncertainty here. And one question I have, do you think this is going to blow up any hedge funds? You remember that hedge fund where the guy was like, he literally made like a cameo video of him just crying and like, I'm sorry, but I lost all your money. And he sent to his clients. That guy was like an oil futures trader and he went bankrupt at $60 or something

like that. So I can't imagine. I mean, I guess maybe he did a horrible job hedging, but if you didn't hedge yeah you're screwed right yeah and anyone connected to the energy markets it's an uncertain time right now uh does this though make you want to get into trading commodities or does it make you want to stay away because it's kind of you know seems a little exciting i don't know yeah it's exciting but like no not at all i have like no one i no one i've talked to has an expertise in commodities and oil particular in particular and it's so unpredictable it's like i get that there's volatility and like maybe you can capitalize on that with like straddles or derivatives one way but no i do not want any part in commodities especially after this yeah all right

well that's it hopefully that helps explain it uh for people i know when i was researching and i got i learned a lot um and that the thing that they're quoting in the newspaper or not the newspaper just on twitter all the big sites are not it's not actually the price of oil it's just the one contract yeah um current state of finn i don't have much because a lot of my stuff i just push down to hot water um but i'll get a little political here um okay there are the mass protests going on right now and in our in our state yeah and regarding are they in our state olympia yeah huh all right and it's regarding the shelter in place order and basically that it violates our human rights um and don't get me wrong i want to go out uh i want i'm i'm like

with i get it i i understand but i saw a uh sign on twitter that said it had a whole bunch of stuff on it but one of the lines was if you're sick come protest anyways it's your right come on like you got natural selection man that's what i'm saying like you know what like and that's even like worse because you're like inviting them and it's like and i saw like a comment that was like all right if i get it i'm going to every protest i can't so that they know and i'm like i don't know people are going crazy this is this is about six weeks in everyone's going nuts yeah i guess this is what happens when you ask people to sit on their couch I think the older people, though, are going a little more crazy

just because young people like our age, more people play video games, and that's just endless entertainment. All right. Current state of FinTwit for you. What do you have? Okay. I just got one thing. All right.

I have a question. Is this a chart crime? I'm going to describe it to you, but you've seen plenty of these before. It's a pretty notable guy. He compares the top five companies as a percentage of the S&P 500 in 2000. So in 2000, the top five companies were Microsoft, GE, Cisco, Walmart, and Intel to the top five now, which is all the big tech companies, Facebook, Amazon, Apple, Google, Microsoft.

Yeah, right? Yeah, right, right. Whatever the big five are. So it was like 18% then and it's over 20% now. And everyone was saying like, wow, this is the bubble. This is the greatest bubble. So that is not what people should be looking at, correct? Yeah.

I've never understood the like – it was 18% way back when. In 2000? Well, it's different companies. Yeah, I get that, but I don't think it's a bubble. I mean, you got to look at the companies on an individual basis, earnings power, potential growth. Amazon has a lot of tailwinds right now. think about them in terms of like it's okay that's how much it makes up 21 of the s&p right

yeah so i mean think about their like earnings as a percentage of the s&p's earnings or even like their their market share in the real world like it's not it's not unrealistic that they make up 20 yeah and does that mean we should you know and do more antitrust investigation, then does that also mean I, I think this is a good point of why we don't like investing in those five companies individually, just because we already own broad market ETFs, right? Yeah. I mean, you get enough exposure through most indexes. So I don't think, and there are people, there are super, there are investors that we really like that own a lot of those companies. So I just don't see the reason to own a company that big,

where you already get that much exposure if you're indexed. Yeah, or if you're indexed in your Roth IRA like we are or something like that, or just a small part of your account. Yeah, okay. We got some good stuff on the back half here, but before we get to that, we're going to take a quick break. So here you go. Here we go.

you welcome back in um let's get right into it we have a draft now and it's going to be the worst investors that you would quarantine with and the best investors to quarantine with um we're going to alternate we picked three for each do you want to do worst or best first uh let's do let's do best first and then yeah a couple just ground rules right this is someone that's going to be living with you but it also they could be the ones providing the housing uh so you know what i mean right like or not not providing the housing but like you know you're in a normal house but they you know they got if they're really rich um they can

you're living with them for like two months so okay well mine i was just thinking personalities but we'll get into it um best one number one you want to go first or me you can go ahead the number one that i'd probably want to be with i'm gonna go josh wolf um Yeah. No, I like Josh Wolfe. I think he's smart. I think he'd be entertaining. And he's youthful. He's spry. He's young. Yeah. Yeah. I like Josh Wolfe. I'm going to go him number one. All right. That's a good one. I didn't think of him. I guess he is an investor. He's a VC. So yeah. And he'd probably come out a hell of a lot smarter. Yeah. All right. What's your number one? My number one is Charlie Munger. Classic pick. That was my real number one. But

as i was about to say it i thought he's old man i don't might be a liability in terms of like like you got to change his pants or something dude he's got dude he's worth billion he's worth a billion dollars he has caretakers i don't have to look first off he's not messing with anything he's sitting down he's reading all right he is not listening to music loud it's quiet so one the biggest thing for uh you know living with people is one loudness and two messiness he is perfect on those regards and secondly he'll probably give me some like quotes about he'll be like chomping on peanut brittle or something like that like whatever he eats all the time like i think that's what he eats uh but he'd say something like you know you gotta build a

bridge but what are the supports and then i'll be sitting there like thinking about his riddles all day yeah i mean he's a good riddle guy he was my number one i was gonna push him at number two you're right he'll probably have caretakers um but i have i have a third and fourth so i might just move my third up here um my second one then is going to be peter lynch wow in his prime i don't know spoiler he might spoiler he's on my uh he's on my worst but oh okay you say your reasoning first and then we'll go to the yeah i don't know i like the guy easy to understand and this is still him in his prime not now i don't i haven't really paid attention to him or kept up but i mean he's entertaining every time i've heard him talk in those little uh

videos i've i've been captured by it kind of got that josh wolf effect yeah yeah all right what's your second one okay second one i might have to speed this up i mean the second one uh we got, or this is only because I want to know what happened, truly happened during the great financial crisis. And that is Ben Bernanke. All right. I don't know how like nice he is or whatever of a roommate. Maybe he's kind of a dick, but I just know one night we're going to drink. We're going to get very drunk. I'm going to get him super drunk and I'm going to get him to spill the beans of what truly happened during the great financial crisis. And I would really want to know it okay that's fair yeah that's fair um my third is bill girley yeah only problem is that he's tall

and he could he could be like a nuisance when it comes to doorways yeah he'd be a little intimidating but i figure maybe we'll stay at his place and like i assume he's got tall doorways so we're probably fine but uh yeah yeah henderson henderson wolf uh girly who'd you say henderson wolf girly lynch that's the right yeah rushmore's a vc's right there and it would have been monger um i think monger and wolf would be hell like a hell of a combo yeah that'd be good okay um what's your third my third one and this is because i think he would be the best investor uh during the quarantine and that is michael berry um yeah dude hasn't has the best track right in the last month but he would be great because i think he would like i don't know i think he'd just be the

best investor in this sort of times from his track record you saw that he that he stopped on twitter right yeah he couldn't handle the heat apparently he got a hundred thousand followers real quick though so first of all all he's gonna do is complain about quarantine the whole time you're in quarantine second of all he listens to super loud rock music yeah yeah i don't know well that's the movie okay do you that's the movie do you know if he actually does that that's christian bale not hey the big short's one of the top movies it said it was based on real events so yeah so it's definitely 100 true right uh worst investors to quarantine with number one who are you gonna go okay well he was one of your best and i'm gonna go peter lynch

strictly because i think he's gonna be annoying all right he's gonna pick up and you're gonna be at any meal he's gonna pick up his drink and he's gonna be like see this you see this guys this is new see this like you gotta invest in this like too much anecdotal evidence yeah dude too much anecdotal evidence every single day be like dude i get it dude you ate fruit loops and invested all right just shut up peter i guess i would you know what when i read like those books i was thinking like man if i was his daughter i would hate going to the mall with him because he always talked about like he would just go to the mall with like a you know freaking notebook and i'm like all right i'm just gonna lunch underrated strange dude okay my number one's

gonna be dalio too much radical transparency i think he'd just be far too honest with me if i was with him for that long um and i think he'd try to be in charge of everything like the whole idea a meritocracy thing and he god man he just gets on my nerves so he's number one for me can't stand him uh yeah that's a no-go yeah he'd be doing some weird stuff he'd be like guys you want to do this uh you know we're doing some exercises mental exercises in here if you want to join us on this zoom call um all right all right my guy is you can pick any person for this uh but it is uh it might be a little cheating but it's commodities guy i was gonna say crypto guys crypto guys i think they're just falling off commodities guys wait what about technical

analysis or day traders yeah so commodities guys kind of fall into that uh where they're probably like oh do you see this like the price of wheat just shot up like dude i don't care should i buy yeah like dude you've seen this double top on the price of wheat i'm buying puts um yeah that'd be tough that'd be yeah that'd be a hard one they're probably watching cnbc all day i mean i just don't want that yeah that's fair okay my second one is going to be a combo two people um i know this is kind of cheap but uh ross gerber and montana skeptic going together um just because of the combo yeah i mean the uh i think they might get in a physical confrontation yeah i don't know i think montana skeptics uh yeah from what i've listened to him he seems like a respectful guy

but i don't know if he could even resist ross about about tesla all day especially if it's trading above 700 yeah all right oh which i forgot is i forgot to ask this week only the third week is tesla fairly valued no all right what's what's the stock price it's it was i was up to i think it was flat today it's like 760 oh yeah no it's not um okay third one what do you have third one is fed truther um you could pick any of those guys there's the guy i forget his name he's like the bubble bubble on twitter um any one of those people just that they don't understand how i mean i don't understand how the federal reserve works but basically the people that do understand how the federal reserve works are not those people are you talking about the guy who said he can

he should uh he'll charge a thousand dollars an hour for like a sit-down conversation oh yeah same guy totally not a grifter okay yeah no i could not stand him um my third one here So it's VCs, and I'm thinking Kalakniss. Okay, you know what? Kalakniss, I actually – I've listened to him a few times, and I think my opinion has kind of shifted on him in some regards. We're Scott Galloway fans, so he kind of came out. He has some cocky tweets occasionally, but he's not that bad of a guy.

However, I think him and Dalio in a room would just eat each other up because I don't think Kalakniss does well with other people trying to take charge. So yours is more of a combo thing. You've got a lot of synergies going on. Basically, what's going to be the most wrecked household? And I think Dalio, Gerber, Montana Skeptic, and Jason Kalakniss would be a nightmare. I think MTV would sign that deal. A little quarantine, you know, reality TV show.

Did you already say you're third? Yeah, I went first. Okay. All right. So Hot Water this week. Want me to go first? Yeah, go ahead. Disney.

Again, this one's real. uh they're in the water they're laying off a hundred thousand employees but they are keeping their executive compensation plan and their dividend nice to see uh that'll that'll probably be really easy for pr to deal with so good for them glad yeah i'm uh serious in all seriousness i'm glad i sold yeah this like they've been in well they've been in our hot water for i want to say four weeks in a row now so not a good look for disney um my second one is marriage zoom marriages are now legal in new york marriage well yeah it's in hot water why are you gonna get someone getting married on zoom you're saying i don't know you maybe they're trying to elope

or something i don't know if you're getting married over zoom you're just doing it to get it done and at that point is getting married worth it um this third one though the cdc is and hot water because they are no longer needed uh mr worldwide is here he had a uh quote on twitter he posted this and then for who uh mr worldwide otherwise known as pitbull pitbull yes mr bull uh he said wake up don't sleep this is deep deeper than a virus this is about freedom or freedom the choice is yours educate yourself god bless stay blessed dude he's probably like he needs to just dj the entire city of miami he's so prophetic i mean yeah his words just they grasp you um okay other fourth one here is wall street bets um i snagged this post from

wall street bets it was on twitter um and it was titled if you lose money in robin hood does that mean you lose money in real life uh damn i had this do you remember what the uh you remember what the username was uh you slash star chode yeah there you go i got oh yeah and uh he said like i guess what i'm saying is i keep seeing red in my robin hood app and i got a notice from robin hood saying something about being assigned and something that something uh something that mentioned a margin call i think anyways i just wanted to clarify that stuff is just in the app right oh god dude do they think it's like a game i don't know i and it wasn't even like you label those if you make those sarcasm like what do they call them uh it's like shit post or something like

that and that was discussion it was like labeled discussion so it was you know something like oh I have a real question, and that guy's learning. You know what I saw? RobinTrack, they tweet out their top buys or sells for Robinhood users every day. Number one today was USO, which is the United States oil ETF. 30,000 Robinhood traders bought that today. Dude, who taught these millennials or Gen Zs that buying the dip was the only way to invest? i know dude they're buying more airlines today too uh it's crazy it's crazy that i don't know

who is who is is it like youtube what are they where are these people they know that like just because it goes down like doesn't mean it's cheap like they think like oh okay i feel like price anchoring is like the thing now and they don't realize it everyone daniel kahneman is just fucking he's just smiling like it's down 90 it has to go up that much to get back to it right yeah so like dude this stuff's down it's cheap dude it's like a penny stock it's like a penny stock where they're like dude those shares are so cheap i mean we i mean don't we thought like that at least i thought like that when i first started yeah sure i guess i guess 30 000 people are thinking the same way what else do you have okay mine i have two of yours but i'll get into

my first one retail traders dentists and doctors are in hot water because the medallion fund which is the algorithmic uh extraordinaire uh founded by jim simons and all the other smart people that you know you know i mean they like do like slow hyper frequency trading where they're i mean their job is to be a smart person yeah and they train they train their uh machine learning uh system to buy and sell for them the medallion fund though is what it's called and it's up 24 this year after fees which are 5 and 36 and you learned that 2 and 20 was ridiculous they charge 5 and 36 yeah but they deserve it and they are up 24 still up 10 in march and the reason why i say that uh retail investors doctors and dentists are in hot waters because the more activity there is

like i saw that schwab's activity i think was up 200 all this activity uh i think is just great for them they're probably just like the computers learning and stuff like that they they probably just eat that stuff up they're just yeah everyone's just a data point to them they're on the other side of all these trades exactly um what else do you have okay i have two more uh first up is socialism uh senator loffler who is in a lot of trouble for quote-unquote insider trading and blamed her insider trading on socialism i only read the headlines i don't know what her actual quote was but might have been misleading but yeah she she's sticking to her guns on that the other thing she said was okay and so i saw a headline that loffler was like all right to get

rid of all this hoopla around insider trading i'm just gonna sell the shares so ed has the authority to tell her advisor to sell the shares but she said she said she never talks to her advisor it's a third party so she obviously does secondly she's selling all the things that are probably topped now yeah because they focus on remote work yeah uh yeah she's um she honestly looks like cruella deville yeah okay uh what else you have uh all right last one now this is just sad uh because as my when i was a young kid my mom would watch oprah every day and when i'd come home i'd see it on so i'd see dr oz and dr phil and they really uh wow they put on some performances this week tough looks for them tough tough looks you really can't trust tv doctors anymore

i so i heard about this but i didn't really like see what happened well they were kind of uh showing why they're not real doctors um i'll just leave it at that they're talking about the pandemic saying things about you know school you know two to three percent if we let all the schools go back two to three percent might die uh but is it worth it you know like some of those type of questions a little ill-informed okay um fuck mary kill this week the theme is the auto industry uh kind of tailing off the whole oil thing so my three that i've got here are gm ford and cars.com cars.com hmm i haven't seen gm ford cars.com cars.com is down 70 percent the last three months look yeah cars.com is interesting interesting but i think i'll kill that just

because i don't know all three of those could easily go bankrupt okay here's the thing about gm though they've got the cruise thing cruise is nice cruise is nice they're like second in the future yes second behind waymo they're doing some innovative things uh but i i mean even if they go bankrupt it could be interesting compared to the other two here so i think i'll marry gm um okay we're tough for time um but i think they'll still survive as a brand i haven't really looked at the balance sheet i know they're in a lot of trouble though i don't know i don't like cars that come or ford at all uh and gm i wouldn't invest in but i guess out of those three i like him but i'm gonna go with the double kill so ford and cars.com i think ford is poised for a steady

decline for a long time um and that's because the model y industry i will marry gm because on the hunch that cruise becomes something that's their you know that's the safety valve so maybe they'll have that down the road i'm banging cars.com because i think they're down 90 percent this year by the dip if robin hood users are doing it i can do it i'm gonna bang cars.com uh anecdotal evidence this week what did you think of the last dance oh yeah you watched it yeah yeah i mean i feel like i should be asking you this question because you don't i mean it's not like just saying like you're more of a soccer guy um football you don't really follow the basketball that well did you know anything about the mj story at all um i mean i knew like

mj is like vaguely his story i didn't know the intricacies of like jerry what's his name kraus or whatever and yeah i know that i didn't know all that but uh it was really good it was really good yeah i i thought it was great and maybe it's just because there's nothing else to watch in quarantine right now but man it was good and you know what no golden state would not have beat the bulls no they would crush them you should watch the defense the bulls would crush them or the warriors steve kerr was playing i'm telling you dude the warriors were warriors would crush them don't think so dude they're yeah they expanded the court so much i don't know whatever we're not we don't know that enough about basketball but either way it's really good

And it shows that why he's the best ever. Yeah. What did you have for anecdotal evidence? Okay, well, I just saw this earlier about two hours ago. It came across, I was reading something on CNBC and I saw the breaking news headline that Amazon workers are planning a nationwide protest tomorrow. Don't know if this is for real

because it's just kind of the rumor from CNBC, But if them and Walmart, if their supply chains break, workers protest because of the health effects, breakouts in the warehouses, things like that. I know there was even some meatpacking plants in the Midwest that had breakouts and they had to close down, which is like hurting the pork industry maybe. I don't know. But if those two supply chains broke down, Walmart and Amazon had a tough time, that would make the country – that would be bad, right? Really, really bad. all right let's say those people protest and they say we're not working anymore there's 22 million unemployed that are looking for jobs oh true there might be in there might

be enough demand so you're saying they're going to bring in the strike breakers what strike breakers do they bring in first the boston dynamics robots or do they bring in the 22 million people oh god i don't know boston dynamics i don't know strike breakers bezos he's cutthroat man he's still got it i don't think he will have any problem hiring a bunch of new employees and telling everyone else to get lost yeah i mean they're paying them the best in the industry uh you know you could argue that they deserve more just because of the certain situations but they they raise they raise pay and they're really the lifeblood of the economy at this point for better or worse okay well that's gonna do it for this week thank you guys for

listening. We, uh, we're going to have interviews, I believe the next two weeks. So, um, looking forward to that. Um, names you guys probably know, uh, they are popular FinTwit personalities and good investors, um, are well-known investors. So look out for those. Thank you guys for listening. Follow us wherever you're listening, like, and, uh, subscribe wherever you're listening. Also, I think that's a thing, uh, but like, and review if you're on Apple podcasts, we really appreciate that if you have any questions or any shows you want us to do uh shout us out on twitter or you can email us at the chit chat money podcast at gmail.com um and we'll get to all those and we'll definitely get back to you thank you guys for listening we're not financial advisors anything

we say or discuss here on chit chat money is not formal advice or recommendation thank you guys we'll see you next week Thank you. head back to the streets and fx is the drop a snowfall soccer Watch Wanda Bell and Leon Simmons fight to reinvent themselves in 90s Los Angeles, where the fallout from the crack epidemic fuels the rise of West Coast rap. Ambition, loyalty, and survival collide as everyone risks everything to build something lasting and FX is the drop, a snowfall soccer.

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