Investor's Edge with Gary Kaltbaum - Reaction to the News [07.17.2025 w Adam Sarhan]

Episode Date: July 17, 2025

https://garykaltbaum.com/

At CVS, it matters that we're not just in your community, but that we're part of it. It matters that we're here for you when you need us, day or night, and we want everyone to feel welcomed and rewarded. It matters that CVS is here to fill your prescriptions and here to fill your craving for a tasty and, yeah, healthy snack. At CBS, we're proud to serve your community because we believe where you get your medicine matters. So visit us at CVS.com or just come by our food. store. We can't wait to meet you. Store hours vary by location. Investors Edge with Gary Coltbaum. Straight talk about you and your money. Now from the BizTalk Studios, here is Gary Coltbaum. And welcome everyone to Investors Edge. I'm Adam Sarhan in for Gary Kaye, who's out today.

Today is Thursday, July 17, 2025, and we have a great show for you tonight. We have a lot going on. So I want to take our time and go through everything, break down the news, let you know what's happening, give you the important things, and hopefully some actionable ideas and some nuggets of wisdom along the way. All right, before we jump into the details, this is a show. It just as a quick reminder. It's a show about you and your money and all of the fun points in between. If you don't get this show in your city, you can go to garyk.com. You can listen live or archive 24-7 on any device you want for free. All available on garyk.com.

You can also email Gary, follow him on X, formerly known as Twitter, and ask about his money management services. If you want his premium service where he updates members and follow along during the day and get daily in-depth market webcasts where he shows charts and gives leaders and entry points, all this fun stuff, that's available on convictionleaders.com. Once again, that's convictionleaders.com. All right. So for today, we had a lot going on. Number one, we had retail sales come out in the morning before the open. And there's a few things I want to keep in mind and help really explain in a really simple fashion. Number one, whenever earnings come out or economic data comes out, you know, it's good to know what's happening. It's really important. But what's more important, some of the Gary covers as well, is to understand the reaction to the news. That's super, super important. Why? Because it tells you what the market thinks about what just came out or what just happened.

So we ended higher today across the board. The Dow was up 230 points. The S&P was up about 33 points. And the NASDAQ was up 153 points. And the Russell was up about 29 points there. So when you end higher, and also, by the way, the NASDAQ-100 QQQ, new all-time high close, the S&P 500, a new all-time high close. So when you end higher on news, that tells me a lot more than the news itself. Why? Because the news, by definition, is a rear-view mirror phenomenon.

The economic news, the earnings news, trade news, whatever the headline is that happened. Fed just cut rates or whatever. Tells you what happened in the past. But the market is a forward-looking mechanism. And the market's looking forward to what's next. So as I was driving today, it was a big rain, it was raining heavy. A car in front of me, thankfully, I didn't get hit. but a car smashed into another car and happened really fast and it was raining heavy and

I think the guy was texting. I'm not 100% sure, but I'm pretty sure the guy was texting because I could see it happen in slow motion. It was like a surreal experience. I'm focused. I'm paying attention. I'm awake. I'm in the moment, right?

I'm not on my phone texting and driving, all this crazy stuff. I'm paying attention and it's raining. You pay attention driving no matter what. But I'm very aware. I'm in the moment. And I see the car and he switches lanes and I see the car and I just, I mean, you could just see it, right? So the second that the accident happened, it's not fun. Thankfully, they were okay.

The cars just hit each other, but they weren't driving fast. And it's a fender bender, no big deal. Everyone's going to survive. It's perfectly fine. Thankfully, the human element's important, the most important thing. Cars you can replace them. It's over. That's it.

Now, you can get out of that car and say, oh, my God, and sit there in the past and live in that traumatic event, whatever, however traumatic it was, whatever that event is, right, forever. Or you can focus on a solution. You okay? You okay? Yes, yes. Okay. Let's deal with this and move forward. Same with economic news.

Same with earnings news, right? After the close right now, as I'm speaking to you, Netflix just reported earnings. It was up a little bit, then it's down a little bit. now it's flat, then it's down a little bit. We'll see what happens. It just happened. By the end of the show, I'll give you more updates on where the stock is. But the reaction to the news is more important than news itself because the markets are forward-looking mechanism.

And the news itself, by definition, is old. Retail sales tells us what happened last month. Great. It's important to know what happened, but the markets are really looking forward to this month. We're halfway through July, more than halfway through July. what's next? That's where the market's focused on. And that took me years to learn because I didn't quite understand that. It's like, well, wait a minute, earnings were up so much, or earnings are down so much, but the stock's up. Well, the market's forward-looking mechanism, right? In other news,

the House passed. The stable coin bill likely passed. I'll go to Trump. That's bullish for crypto stocks. If you look at crypto stocks, a lot of them, are up already big time because it's by the rumor right sometimes by the rumor sell the news but it's buying the market investors have been in there buying before the news actually hits and this happens often so often in fact there's an actual adage on wall streets as buy the rumor and sell the news many times which refers to a phenomenon many times you see the market rally in advance ahead of the quote-unquote news the news comes out and the market kind of sells off a little bit. People are confused. Because it already had that huge move in anticipation of

that event, whatever that event is. Fed cuts rates, earnings, House passes a bill, whatever the case is. So keep that in mind as we go through and we get more data. Earlier this week, we had inflation data, CPI, PPI, consumer prices, producer prices. The market's up. It's Thursday. We'll see where we close tomorrow, but for now, all-time high it closes, tells you everything you need to know. Okay. For now, inflation is not a threat. Remember, for a long time, public enemy number one was inflation. Okay, well, that's not happening, right?

That's no longer a threat. It's higher than the 2% the Fed wants. That's why the Fed hasn't cut rates yet. But it's on the way down. It's trending lower, if not stable to down. It's not spiking higher. Like what happened in 2022 and after COVID, because the Fed had pumped so much money into the system, it sparked inflation. Then it raised rates so much from zero to seven percent, six percent, wherever it was.

Why? Slow down inflation. And now it's slowing down. So again, just helping you putting these pieces together. So when you see the news, because it's nonstop, right? This, that, boom, boom, boom, boom. It's a 24-7 news cycle. Well, it's important to be able to take the important things out of the news, which I'll get to a story about Steve Jobs and Kevin O'Leary in a minute, and dismiss the noise.

Focus on signals is the language that Kevin O'Leary just used. If you go on Google and YouTube and type in on Google, Kevin O'Leary, Steve Jobs signals. You'll see a short clip about Kevin O'Leary speaking about Steve Jobs. he worked for him, had some kind of contracting business with him a few decades ago, and Steve Jobs was really like a maniac. He would use bad language towards him and just go crazy. And Kevin was younger. He learned.

And he said that Steve Jobs was brilliant, where his brain was 80, 20. 80% would focus on what he called signals, which is the most important, highest ROI. That's my language. Highest return on investment activities you can do in any given day. There's so much noise out there. What's the most, the best bang for my buck, the highest ROI things I can do. And let me rank them based on the highest ROI down and then focus on the highest ROI. And then the second, those are signals, right?

Everything else noise. In the next five to 12 hours, today, right? I'm awake. Great. What should I be focusing on? What can give me the best return on that investment of time and money? But time as well. Same thing for stocks too, by the way.

You never know with certainty. You just try to stack the odds of success in your favor and make the best decision. And when the facts change, be flexible and change as well. And he said the only person that he knows, Kevin O'Leary is saying this, the only person he knows that's actually better is Elon Musk was 100% signals, no noise. Every 60 minutes of that guy's day is just bam. He's on point. And he's a production, like a productivity powerhouse, Elon Musk.

And with Jobs, it was 80-20. That's what Kevin O'Leary is saying. But that same thing with us, where it's like, all right, I want to learn from these super successful folks. Take the good, leave the bad. But what's the good here? What are the lessons? The good is real simple. Focus on the signals, not the noise.

Because it's so much noise. Everybody wants everybody's attention. Last I checked, Netflix is down about a percent. after reporting earnings. Again, the details of the earnings, I can go into them, but what's the reaction to that news? That's the bit, it's liberating, it's freedom. And it aligns you with what actually makes you money,

which is the price, the reaction to the news. All right, up next, we've got a lot more to cover. I want to thank you very much for being here. I'm Adam Sarhan. This is the one and only Investor's Edge. Hi, I'm Gary Kalbaum, hosted a nationally syndicated radio show Investors Edge. We're not just handsome radio people.

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and all of those things are not something that generally if you have a healthy gut you should be living with so that's when we deep dive we deep dive into your medication we deep dive into your OTC medication and then at that point we can probably identify something that we can change hear the full conversation plus some fascinating facts about how gut

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Hey, this promises to be fun. Investors Edge. The last bastion of quality programming. With Gary Coltbaum. It doesn't get better than this. And welcome everyone to Investors Edge. I'm Adam Sarhan, in for Gary Kay, who's out today. In case you're just joining us or missed any part of the show,

you can go to GaryK.com, rewind, fast forward, listen live at your convenience or archive 24-7 on any device you want. from anywhere in the world. All right. Few notes from Gary. Number one, market is strong. Second, Taiwan Semiconductor, Major League AI, semiconductor stock gapped up today, and that's not bad, his language.

Netflix, we spoke about. Economic numbers are decent. Keep in mind we're an earning season. You had an ELV, a big blowup and managed care. It's a group that Gary has been saying to avoid. Those are the notes directly from Gary for today that I like to read, just the way I can get conveyed on the messenger for what he wants to share with you.

So that being said, let's dive into the next. Oh, in case you just missed any part of the show again, go to Gary Kaye. We're beginning part of GaryK.com. The beginning part of the show, we spoke about the different between the news and the reaction to the news. Super, super important. Second. Well, next, not even second. I spoke about Netflix's earnings.

Covered all that. Markets up today. high clothes. Let's talk about the Fed for a second. Gary covered it. Trump wants to fire, talked yesterday about firing Powell, this, that, and the other thing, I wrote an article on Forbes yesterday about it. And here are my thoughts. It's really, a lot of it, it's irrelevant. Why? Because what matters to the market? Now, of course, if Trump fires Powell, that's a big deal. I'm not saying it's irrelevant. If he brings someone else in, he'll have a person that's going to listen to whatever he says. I get all that. And that's all.

important. But what matters to me, again, is price. What does the Fed do and how does that impact the market? Right now, the stock markets at all-time highs and inflation is above 2%. Well, remember, the Fed has a dual mandate. Number one, keep unemployment low, which it's doing. And number two, keep inflation, price stability is their language, near 2%. And right now inflation is above 2%. Not by much, but it's above 2%. So why would the Fed cut rates aggressively when inflation's

above 2%? It doesn't make sense. That's why they're not doing it just yet. Even with that, they still said they want to cut rates twice this year. And ready for this? There's something called the Fed put, which means whatever the market gets in

trouble for the last 16 years since 2008, 2009, 16, 17 years now, which it's amazing. that much time has passed since 2008. That's a whole other side story. Anytime the market would get in trouble, the Fed would cut rates or print money and boom, stocks would take off. That was known as the Fed put.

Well, all right. The stock market is at all-time highs. And the Fed's talking about cutting rates if Powell stays. He's already said he wants to cut rates twice this year. Somebody else comes in, let's say Trump fires him. Okay, great. A lot of drama. Big show.

I get all that. uproar, blah, blah, blah. Great. I'm not here to engage in all that. I just want to look at the bottom line, right? How does that impact the market? Simple. You'll get a guy in there.

It's going to cut rates even more. What does that do to stocks? Even more a bullish tailwind in the short term. Long term, that could spark inflation, a second round of inflation, blah, blah, blah, especially if we get tariffs, if the economy slows down, you get stagnation. I can go down a whole rabbit hole here. I'm not going to. All I'm going to say is all things being.

equal when the Fed cuts rates, that tends to be bullish for stocks. Not always, but for the most part. Okay, great. Well, you're at all-time highs and the Fed's already talking about cutting rates. And if a new guy comes, they'll cut rates even more. What's the impact in the stock market? even higher prices. Now, if Trump decides to go get aggressive again with tariffs, he said last he said was August 1st. All right, they believe him, they don't believe him he does it. He tacos take chickens out or whatever.

We'll see. Taco was a term that came up a few months ago. When he said he's going to get aggressive with tariffs, then he chickened out, he changed his mind. It's not my language. It's not my beliefs. It's what people say. It's what the news is saying.

It's a catchy phrase, taco trade, right? So, okay, great. Trump always chickens out. That's what it stands for. To me, it's just nonsense. It doesn't matter. What matters? Markets at an all-time high.

Whoa. And we're in a bull market. And what happens in bull market? The prices happen to the upside. Not the downside in bull markets. And I said this before. Say it again. back in 2013, 2016, 2017, 2019, and 2021, markets went pretty much straight up after we had some tailwinds from the Fed and from other things, right?

Markets went straight up in many of those years. Very strong years. This year, we're already up nicely. Yes, we came off of a very steep, pretty much a very shale. shallow, bare market, a very steep correction. You went down just around 20% in the S&P and NASDAQ. Right around there. You went down more in the small caps. And then boom, rocketed right back up. I think we're up 25% since the April Lote, somewhere in that area of almost 30%.

And somewhat of a V-type recovery, which is very difficult to trade, by the way. And hats off the gallery for doing a phenomenal job, sharing his thoughts and keeping us one or two steps or five steps ahead of the market. Every single day, he's on the show talking. And that's, hats off to Gary, Gary, great job. So when you look at the market and you look at the fact that we're at all-time highs

and you look at the Fed, right, the Fed controls monetary policy. Monetary policy is a fancy word, which means that it controls the credit and money, flow, interest rates, which impact the economy and the turn impact the stock market. The economy is too hot, inflation's too high. what happens? Fed raises rates to slow the economy down, the slow inflation down, slow demand down. Borrowing costs go up, demand for things like mortgages go up, because buying a house with a 7% interest rates, not the same as buying it with a 2% interest rate. Just a fact. And that's how things slow down. That's how the Fed can impact monetary policy. And the opposite's also true. Hey, the economy's slowing down,

unemployment's going up, inflation is low. Guess what? We don't want to have a huge recession. It's kind of like the Goldilocks, not too hot, not too cold, not too strong growth, not too weak growth. Hey, guess what? We can cut rates, stimulate the economy a little bit, stimulate the market a little bit, and other risk assets as well. But all of that, why? Because of interest rates, monetary policy. So when you have the Fed already talking about cutting rates, that's under Powell,

and if Powell leaves, a new guy comes in, they'll cut rates even more. With the market already at all-time highs, wow, that could be another big bullish tailwind that comes in. Now, if you at the same time have tariffs and a big economic slowdown and so on and so forth, yeah, we can easily have another sell-off, another correction. There's a tremendous amount of uncertainty that could come. But if that doesn't unfold, again, let the market guide us. We're in a bull market. Until we see that heavy selling, until we see that big distribution, that big institutional selling,

the markets earned the bullish benefit of the doubt. And that's really important, aligning ourselves with broader trends. Up next, we've got a lot more to cover. I'm Adam Sarhan. This is the one and only Investor's Edge. Hi, I'm Dr. Jake Goodman, host of Beyond the Script, the podcast where I sit down with pharmacists to answer the health questions you didn't even know you could ask at the pharmacy counter.

In this episode, we are diving into gut health with CVS pharmacist, Victoria Motola, who explains why so many of us live with stomach issues, we should not accept as normal. A lot of what I see is just like chronic bloating, chronic stomach aches. Like I get a stomachache every time that I eat. And it just becomes like a lifestyle where, oh, yeah, you know, I just have a stomachache every day. Or I'm constantly feeling like gassy.

And all of those things are not something that generally, if you have a healthy gut, you should be living with. So that's when we deep dive. We deep dive into your medication. We deep dive into your OTC medication. And then at that point, we can. probably identify something that we can change. Hear the full conversation, plus some fascinating facts about how gut health affects so much

more than just your stomach on Beyond the Script, a podcast from CVS Pharmacy and IHeartRadio. Listen now wherever you get your podcasts. Struggling to see up close, make it visible with Viz. Viz is a once daily prescription eye drop to treat blurry near vision for up to 10 hours. The most common side effects that may be experienced while using Viz include eye irritation, temporary, dim or dark vision, headaches and eye redness. Talk to an eye doctor to learn if Viz is right for you. Learn more at Viz.com. OnDec is built to back small businesses like yours. Whether you're buying equipment, expanding

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He's got to be pleased with that. The crowd is just on his feet here. He's a Cinderella boy. With Gary Colbomb. It comes highly recommended. You're going to feel better if you talk to him. And welcome once again to Investors Edge. I'm Adam Sarhanan, in for Gary Kaye.

He was out today. In case you're just joining us or missed any part of the show, you can go to Gary K. com. Rewind fast forward. Listen at your convenience. Anytime you want, anywhere you want. All right.

So after the close, Netflix reported earnings. It's down about a little over 1% right now. It's been up and down, up and down, but now it's down. Down about 1.1%.

We'll see where we go in the next few hours because after hours lasts a little bit after the close. And then we have tomorrow morning pre-market. We'll see where we are. And then we have the open. Lots of times you can see a big move up or down in the pre-market or after market,

which is thinner trading. But then all of a sudden, boom, you get a lot of just a different reaction once the market opens and we'll be closed tomorrow. So we'll see what happens. But for now, it's somewhat of a blah report. Don't have any kind of major fireworks yet in the after hours. It's still got the earnings call and so on and so forth. That could change. But for now, down about a percent after the close.

All right. A few other pieces of news or data that came out today. Home builders are slashing prices at the highest rate in three years. weekly mortgage demand fell 10% as rates and economic concerns rise. Well, what's been happening? I'll tell you another story in a second. What's been happening with housing stocks? If you look at the XHB, the housing, this is an ETF that tracks housing stocks.

It's down about 18% from its 52 week high. That's, and it was down more, by the way, just a few months ago, but it's trying to rebound a little bit now in hopes of interest rates coming down, but it's below its 200-day moving average. and it's really in deep correction territory, if not was just in bare market territory. But what's happening? Housing stocks in general have been under a lot of pressure, and they've been under pressure since Q4 of last year.

All right. Mortgage rates, remember we're talking about interest rates, right? Mortgage demand is coming down. What's next? Well, housing prices, we'll see what happens, but housing prices could easily start coming down. They're still so high compared to where they were just a few years ago, especially before COVID, that even if they come down a little bit, it's going to be a blip on the longer term radar for a lot of these housing, residential houses, right? And if when, here's another thing that could potentially happen. Now I'll tell you the story in a second.

What happened to me a while ago. As interest rates come down, what will happen to the cost of borrowing comes down? demand will go up. There are people on the sidelines that want to buy, but the interest rates too high. So when interest rates come down, they can afford more. And if the Fed starts cutting rates, whether it's under power or someone else, guess what happens to mortgages? They become cheaper and then demand increases. And all prices, you know, economics 101 taught us prices of function of supply and demand.

People buying versus people selling. You know, if you're on a remote island and then you get a bottle of water. here at sports events. You're at a remote island or you're in a sport event, right? You got a bottle of water. That same bottle of water at Costco is infinitely cheaper when you're at Costco or at a supermarket than if you're in a remote island or at a sporting event and there's nowhere to get water, right? Demand, why supply and demand? There's 50,000 people in the arena and there's a guy walking around with hot dogs or, you know, water. That water bottle or that hot dog even is so much higher because there's tens of thousands of people that want to eat and there's a limited supply, right?

Same thing in just about every publicly traded, freely traded market where it comes down to buyers and sellers, supply and demand. So here's the housing story. So back 2012, 2011, the end of 2011, 2012, I was on CNBC talking about housing. And I said, my case was housing bottomed. Why? because housing stocks bottomed. It was still a very difficult environment.

2008, 2009, great recession for the economy, was a great depression for housing. It was really bad, the environment, right? Housing prices plummeted, and people were foreclosing left and right. It was just an awful environment for real estate. And then a few years later, after the Fed did QE1 and QE2 kicked in, housing stocks bottomed. And then all of a sudden they started going in. up and they broke out at bases. So I went on TV. It was the first time I was on CNBC in the end of 11 into 12.

And I debated a mortgage broker. And this guy literally does this for a living. He was bearish and I was bullish. That was the both sides of the coin. And the reason why, you know, I was bullish was because I listened to the market. I saw Toll brothers, T-O-L, Meridage Home, M-T-H, Lenar, L-E-N, Hauvani, the lower-priced home builders, H-O-V, B-Z-H, all these home builders and more bottomed. And then volume was coming in. And I know the market moved six to 12 months, if not more, ahead of the economy. So I said in the next six to 12 months, housing prices are probably going higher. And lo and behold, boom, huge rebound in housing prices.

That was the bottom. It's right around 10, 10, 11 in the market. If you look at housing prices, 11, 12, 13, 13. boom, they just kept on going up, up, up, up, up, up all the way up until 20. After COVID, they shot up. Because the government was literally giving people money, and that's unheard of almost. And people would buy. And guess what?

And the interest rates were low. And the Fed printed unprecedented amount of money. So when you have unprecedented amount of money being pumped into the system, interest rates at zero, effectively, cheapest mortgage rates ever. and people getting paid checks from the government, what's going to happen to housing prices and so many other things, lumber prices and so on and so forth, through the roof. And that's what happened.

But again, listening to the market, because the market moves most of the time before the economy. Before Main Street, right? The market's a mirror. It's a reflection of what happens in the economy, right? earnings go up. All things mean, all things, big of stocks go up over time. Of course, you have dips along the way

and pullbacks and fear and panics and this thing. I don't think tariffs in March, you know, things that send the market lower. But if the economy is growing, which the economy currently is, that's good for the market. If earnings are growing, which earnings are growing, for the most part, that tends to be good for the market, higher prices, right? So the market tends to move many times, not 100% time, oftentimes, many times before the economy. So just wanted to throw that out there in case you want to listen to the market. That's one of my things. It's listened to the market.

Right? I always like to say the market is speaking and then ask, are you listening? Well, most communication between humans is nonverbal. I didn't know that. But most communication is nonverbal. I was like, wow. And the market's not literally speaking. It's nonverbal communication.

But when you learn to pay attention and filter out the noise, focus on the signals, like Kevin O'Leary talked about with Steve Jobs and Elon Musk, focus on the highest ROI signals that come. price, volume, just about everything else second, you can pick up patterns. You can learn to listen to the market. When the market goes up on bearish news, goes up on bullish news, then we're in a bull market. We're probably going higher. Current market included.

You'll get pullbacks along the way. You always do. But the market going down on bullish news, guess what? That's no bueno. That's not good. the market goes down on bearish news goes down and bullish news doesn't matter what the news is the market's going down hey things change like what happened in every correction or every bear market in history and then eventually that changes and the tide turns think of a game of tug-of-war or the tide goes in tide goes out right between the bulls and the bears most of the time thankfully we're in a bullish environment Warren Buffett talks about this he calls it the American tailwind I call it the great-American

He's so humbly, he credits the vast majority of his success over the last several decades, 60 years, I think 70 years, to the American tailwind. And the current economy, filter out all the noise. Again, just focus on the facts is the biggest it's ever been in history. The stock market is at all-time highs. Again, signals noise. What really matters? Look at the forest, folks, not just the leaves and the trees of the trees. I look to say the daily charts of the trees.

the intradate charts are the leaves and the trees. It's good. People can do it. It's not for me because that's not my strength. I'm a very much longer term. Intermediate term is my sweet spot. I'm not going to buy and hold for 20 years. It's not my style.

Intermediate term is where I thrive. I do best on weeklies, but I want to see the forest. I want to be aligned with broader trends. I'm not trying to get aggressive shorting stocks right now with the market at all-time highs. It's not going to happen. It's not my approach.

Right? So again, another adage, make the trend your friend. Align yourself with what's actually happening in the market. All right. So covered a lot. Up next, we're going to go into a lot more detail about some lessons, timeless lessons. That's what I'm all about.

I like to learn. I want timeless lessons about how we can improve. How do we get a slight edge? This is investor's edge, right? All right. I want to thank you very much for being here. Got a lot more to cover. I'm Adam Sarhan. This is the one and only Investor's Edge.

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One, two, ready, go. Action! Investors Edge. With Gary Culper. And welcome once again to Investors Edge. In case you're just joining us, or miss any part of the show, you can go to GaryK.com. Wind, fast forward, listen any time you want on any device.

Fun fact, today's July 17th. I guess, July 17, 1955, Disneyland opened in California, cost them $17 million at the time. And now Netflix and their earnings report is talking about experiential, so experiences, entertainment space. I'm not sure exactly what that means. Fans will be able to explore immersive experiences will debut in Philly, I believe, and we'll see what happens. Don't think of it like Disneyland. Ted Serrando says this might be something you might go to a couple times or just once a month, not just once every couple of years.

Oh, you might go to a couple times a month. Sorry. Okay, don't think of it like Disneyland. This is something you might go to a couple times a month. So it's an experiential entertainment is what Netflix wants to enter. That's interesting. More news will come out of that, I'm sure. But again, they just reported earnings a few minutes ago.

So it's still very flesh. I'm just reading headlines as they cross. I'm giving you some updates on what, is happening and I'll know more later tonight and tomorrow once the earnings report is done and sorry the earnings call is done and all that fun stuff it's still fresh live news all right so a few other things themes right so we know the AI theme is very strong nevidia NVDA one of the strongest stocks in the market true market leaders got the rankings you look for got the growth big liquid stock 200 million shares on average every day and it's very extended in the short term now but

it's a big leader, right? So other AI stocks are doing very well. And AI has been a big theme that has driven the market higher for a long time, right? That Taiwan semiconductor stock, TSM, is a ticker, was up about 3.38% today, up about $8,000, $245.50. Earnings were up 75% year over year. So this second quarter that ended in June 30th versus in 2025 versus the same quarter in 24, earnings were up 79 percent and sales were up 54%. That's a big jump, right? When you look at something like Navidia, look at their earnings expectations going forward. Of course, things could change. But in 2024, last year, they earned $1.30. This is split adjusted. 2025, they're on track to earn 299, 2026, 435, which is big growth, 45% growth from 2025 to 2025, 26, and then

27, 583, which is 34% growth above 2026 number of 435 and almost double 2025's numbers. Last year was $1.30, 2027, they're expecting to be almost $6 or $5.83. That is big. Big growth. The AI theme has driven other areas to also do well, like the nuclear stocks. A lot of them don't have big earnings growth yet or big revenue yet because some of them do, but some of them don't. One of the strongest earnings plays out there is GEV, GEV, G.E. Vernova, which is ticker symbol of G.E.V. Which is extended now, but earnings.

they lost money 21, 22, 23 to spin off out of GE, because this is their nuclear section, or the alternative energy section. 2024, so they lost money in 23, they lost $1, $24 earnings grew to $56. This year they're expected to go to 707, which is the 25% increase compared to last year. And 2026 numbers, ready for this? 1137. So from $7 to $11,000, increasing 61%. That is big growth, right?

The reason why they're important, these nuclear power stations is because, first off, the industry itself hasn't been upgraded in decades. It's dated. It's a critical part of essential service of our life. We all need energy, not just for AI, but for other things. And it's ripe for disruption. Part of this disruption is SMRs, these small nuclear modular reactors, size of a container, where it's new technology. They have them coming out.

It's still in the newer side. But it takes a long time to get a license. It takes a long time to build the nuclear power plant to get all the safety measures in place. Because we all know what can happen when things go bad from nuclear power plant. Nobody wants bad things to happen. But from an energy standpoint, a lot of these big tech companies are investing in that space. So the earnings for these nuclear power related stocks, another group which has done very, very strong. Crypto. Look at the government.

Expected to go much higher. So again, this is about finding leading leadership, just finding leading groups. I have a website called findleadingstocks.com where I share my thoughts in the morning, pre-market updates and some breakouts in the morning right after the open. But really, the whole idea is leadership. Again, highest ROI signals, we mentioned that earlier. I want to find the leaders. Newton taught us an object in motion does what?

stays in motion. Stocks that are going up, markets that are going up, most likely will continue to go up until they don't. But find those trends. Look at the forest. Look for those areas that are working and then connect the dots. So AI is super important. Okay, great. A lot of earnings growth there. We get it. We understand the AI theme. Great. Now let's talk about how are we going to power all of that AI. These tech AI companies, lots of them, have already invested hundreds of millions, if not billions of dollars collectively into nuclear. C.E.G. Another company that has a partnership, I believe, with Microsoft. Amazon, I believe, went with Dominion, ticker symbol D. Right? Again, connecting dots. It's important in the business to understand, oh, okay, this means that. Crypto,

government, whoa. Passes a bill today. That's bullish for crypto. space. DoD. came out to Department of Defense said, oh, we're going to make a big push to get local drones made in the U-S, right? So UMAC, unusual machines, ticker symbol, UMAC, full disclosure that are client, P-D-Y-N, same thing. Client, huge move in PDYN today. They do artificial intelligence for drones and robotics. They make robots smarter. PDYN, right? Red Cat, R-Cat. It's a big defense contractor, big in drones. But unusual machines, UMAC, the CEO told me, I got a podcast called Smart Money Circle where I interview CEOs of publicly traded companies and big money managers for timeless advice.

So this guy comes on the show, and he's like, listen, back when China a few years ago kicked out the U.S. tech companies and their tech stocks soared, it's kind of like that for drones. I was like, wow, that makes a lot of sense. So the U.S. is now making a big push to have U.S. made drones. Again, look for those themes. That's big, and that's what I want to end with. Look at the leadership. Stay focused on those and then find the right time to get in.

And when you're right, let them run, when they're wrong, take small losses. I believe that's all the time we have for today. Again, time is our greatest asset and joy every moment. Have a great day. Everybody, thank you very much for being here. I believe Gary Lee back tomorrow. It's been a pleasure, and hopefully we'll speak to you again soon. Take care, everybody.

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