Investor's Edge with Gary Kaltbaum - Things Change Fast [11.15.2024 w Adam Sarhan]

Episode Date: November 15, 2024

https://garykaltbaum.com/

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Investor's Edge with Gary Cultbaum. Straight talk about you and your money. Now from the BizTalk Studios, here is Gary CultBomb. And welcome once again to Investors Edge. I'm Adam Sarhan, in for Gary Kay, who's out today. Today is Friday, November 15th, 2024. And we've got a great show for you tonight. As always, we want to thank you very much for being here.

I just a little housekeeping before we dive into the show. This is a show about you and your money and all the fun points in between. Just as a quick reminder, if you don't get the show in your city, you can go to garyk.com. That's listen live, archive for free anytime you want. We're live Monday through Friday, 6 to 7 p.m. Eastern. You can also listen on any device. If I go fast or I go slow or I give specific numbers and you want to pause, rewind, fast forward, by all means. You can do that any time you want.

You can also subscribe to it. Gary's morning notes sent directly to your inbox for free. You can follow Gary on X, formerly known as Twitter, all that on GaryK.com. Or you can subscribe to his premium service, which is convictionleaders.com. All right. By the way, in Convictionleaders.com, it's an excellent service. I read it. I listen to it.

He's got a nightly webcast that he puts out every night, weekend webcasts where he shows you what he sees in the market. And the radio show here, he talks about it. But with the Convictionleaders.com membership, you can actually see it as well, which is really, really good. It shows you leading groups, lagging groups, what's working, what's not, daily updates, so on and so much more. Anyway, all that's available at convictionleaders.com. And you can take a free trial. Find out if it's for you. If you like it, great.

If you don't, that's fine too. All right, beautiful. Highlights. Tonight, today we're talking about things changing quickly in the market. Remember, folks, everything in the market, in my opinion, comes down to simple. Risk, reward. most of the time when everybody feels really bullish, there tends to be a pullback. And when fear is elevated and everybody feels scared or bearish, it tends to be right around

the time where the market bounces. Not always, but most of the time that's what ends up happening. There's lots of different ways to measure. I guess, what's a good word, psychology or sentiment in the market. One of the easiest is CNN, they have a fear and greed index. If you go on Google, just type in CNN, fear, greed index. And just last week, you could see it go to the greed slash extreme greed levels. Now it's neutral, and the other side of it is fear, and then extreme fear.

That's how the gauge works. And they use, I think, seven or eight different indicators or a dozen or so indicators. in that area. I think it's seven indicators. And you could see the pendulum swing back and forth from extreme greed on one side to extreme fear on the other side. Last week after the election, you know, people were in the greed mode. Let's put it that way. The market was up. All the indicators that are used to calculate this index were up and things were great. Everybody felt good. The subject of my weekend report last week was melt up. And guess what? The reason why, for me, defense comes first is because when things change, they change quickly,

especially in the market. And defense, folks, is the number one job in the market. Warren Buffett has two great lines with investing. In other words, he's got two rules, not lines, but two rules. Rule number one, don't lose money. Rule number two, don't forget rule number one. Now that's ideal. Nobody wants to go into the market losing money.

But understand there's risk and there's reward. Those are the two sides of every trade. And most people only go into the market looking at the reward side of the equation. They pull out their calculator and say, oh, if I buy X number of shares and it goes up a dollar, I just bought a new house or bought a boat or whatever the case may be. Slow your horses for a second. Most people don't go into it looking at the risk side of the equation. and that's a sign that I really, really want to focus on

because one of the best skills you can have in this business is to learn, and notice the language, learn how to become a great risk manager, managing risk. One of the many things I love about Gary, and I started listening to this show, by the way, when I was in undergrad back in the late 90s and early 2000s, and then grad school had to listen to them, And I drive back and forth and put him on AM radio back when he was on there and all that fun stuff.

And I seen him handle both the dot com bubble and then bust. The 08 meltdown, every pullback in correction since gracefully and has not been burned. Down 50% down 60%. One of his superpowers, many of them, but one of his superpowers is his excellent ability to manage risk. And you do that, you can stand the test of time. You know, I think of Elton John song, I'm still standing. Yeah, yeah, yeah. If I could sing, I would sing it to you, but I can't sing. So I'm just going to say it. I'm still standing yet. The guitar is and beating his chest, kind of thing. The way to do that in this business is protect your capital. And capital comes

in two forms, mental capital and physical capital, which I'll speak about later. But the market is down this week. Today's a down day. Lots of areas of the market are rolling over. Healthcare stocks, biotech stocks are really not acting well at all. Semiconductor stocks, acting poorly. I mentioned defense yesterday. Not acting well. The NASDAQ 100, big breakout above the 503 level last week after the election,

it rolled over and negated the breakout. Semiconductor stocks, not acting well. Applied materials, ticker symbol AMAT, gap down today after reporting disappointing earnings. And many other semiconductors, which are very important part of the market and the economy, are not acting well. Look at KLAC. Looks awful. ASML looks bad. We have Navidia reporting earnings next week.

That's going to be a big tell for AI and for semiconductors and for the market. So what's happening now is that the market's pulling back. sellers showed up. Defense is paramount, in my humble opinion. Until the NASDAQ 100 gets back above 503. Why? Because if we can learn to protect our capital, the mental capital and the physical capital, which I'll speak about more later, we're way ahead of the game. And I mean way ahead of the game. So a few notes from Gary. First off, the NASDAQ, NASDAQ, NASDAQ 100 giving back all of the election move. And they are really coming after the semiconductors. on more bad earnings after applied materials. Software stocks that we're trying have given it all up and big tech being distributed big time. The biggest issue is how bad the semiconductors are acting. It looks like other areas are joining.

Some say it's the higher interest rates. We think maybe there's a component there, but Gary thinks there's more to it, especially since the semiconductors are rolling over and gagging. Then there's the election outcome. They're hitting hard defense stocks and anything to do with defense stocks. They are hitting drug stocks.

There's worry about what Kennedy would possibly do or try to do if he gets the job. And again, these are food stocks also getting hit because of Kennedy. Let's see what else is Gary. I'm going to say. And that's really it. There's a lot of anti-things and those things are being hit, which are mentioned. So those are the notes from Gary want to make sure I get that out there. And perfect.

So here we go. Things change. And when Trump has new people coming in, there's question marks. Now, this is nothing political. It's just the market's reaction. Remember, markets like certainty. What happens? A lot of uncertainty with new appointees.

A, do they get in? Do they not get past Congress? We don't know yet. B, typically the markets like a divided Congress. We'll see what happens. There's a lot of question marks with respect to these new people, what their policies are going to be, so on and so forth. and we're seeing a reaction.

We're still in a bull market. Remember yesterday I spoke about the fact that markets pull back. It's normal. It's healthy. I adjust. Lord Keynes had a famous economist had a great line. He goes, when the facts change, I change. What do you do, sir? Right?

You can stay bullish all you want. You stay bearish all you want. I know people that are just always permibals or permibers. And they're out of harmony with the market. It's my little word of being in harmony with the market. My job is to be in harmony with the market. Stay aligned with what's actually happening. Stack the odds of success in my favor.

Respect risk at all times. Keep those losses small. And get out of the way when things aren't looking good and get back in when things are looking good. That's simple. I had a good conversation this morning with a young guy that I work with. He's 25. He's trying to complicate something.

He was going in and out, up and down, left and right. I said, listen, just keep it simple. genius is in this simplicity. Steve Jobs knows that. Elon Musk knows that. And Da Vinci knew that. And so many others. Jobs created an iPad that lit.

I walk around the mall. I see babies and strollers watching an iPad and playing with it and pushing buttons. They're in diapers or little toddlers. Maybe babies are too small. But toddlers. Before they know, they're ABCs. They're playing on an iPad. That's how simple it is to use.

Tesla, you get in the car, there's no ignition button. Musk is like, yeah, what's the point? You're going to get in the car, you're going to drive. Just get in there, go. That's it. You don't even turn the car on. It knows. It can tell when the keys near it.

Okay, you're going to get in the car. What do you think you can do in the car? You know, bake a cake? Hey, go. Keep and think simple. Up next, we've got a lot more to cover. Again, just big message is risk, respect, risk, respect, risk, respect, risk. I'm Adam Sarhan.

This is the one-in-only Investors Edge. Hi, I'm Gary Kalbaum, hosted a nationally syndicated radio show Investors Edge. We're not just handsome radio people. We manage investors' money for a living, specializing in fee-based discretionary money management. No big commissions, just a fee on the assets that's managed. We also provide a full range of personalized services, including retirement planning, fixed income, and educational needs,

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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. stomach aches. Like, I get a stomach ache every time that I eat. And it just becomes like a lifestyle where, oh, yeah, you know, I just, I 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. All right, quick quiz for the hiring managers out there. What's worse? Being understaffed or being poorly staffed? Well, that's a trick question, because both are recipes for chaos. Either way, just say to yourself, this is a... job for Indeed's sponsored jobs. You'll get matched with candidates that meet the skills,

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This is a job for Indeed's sponsored jobs. Success starts with your drive. And American Public University is here to fuel it. With affordable tuition and over 200 flexible, online programs, APU helps you gain the skills and confidence to move forward. Whether you're changing careers, starting fresh, or pursuing a lifelong passion, our programs are designed for people who never stop. You bring the fire, APU will fuel the journey. Learn more at APU.APUS.edu. It's time to switch on the integrator units and get the brain cells working.

You're listening to. Hey, this promises to be fun. Investors Edge. bastion of quality programming with Gary Coltbaum it doesn't get better than this and welcome once again to Investors Edge in case you're just joining us from missed any part of the show you can go to garry k.com listen on any device you want 24-7 for free pause rewind fast forward anything you want to do anytime all for free on garry k.com all right beautiful which by the way I told you earlier I used to listening Gary in the radio couldn't do that when a day

years ago, 25 years ago. If you missed it, you missed it. And the story. All right. So a few things here. Big lesson. When things change, we change. Let's talk about each of the indices, the major indices. The S&P 500. I'm going to look at the SPY because we could trade that. 586, 12 was a high from just a few weeks ago in October. You broke out above it on the 6th of November, which was the election day, after election was over. over. And you rallied. You broke out. Had a nice move. And then three or four days later, you stopped going up near 600 and you rolled over. Now, today, Friday, you broke down, negated the breakout. Not the end of the world. If you look on a percent basis, we're just

two, three percent, two and a half percent below a record high. So for now, it's okay. Not the end the world. But if we start breaking down more and break the 50-day moving average and then break and getting this pullback gets deeper, that's going to meet, you know, the facts change, right? That's going to, for me, it's going to warrant a much more defensive stance. The Q's the NASDAQ 100, 503-52 was a high from July. You had a big breakout, multi-month base consolidation on the 6th of November, which was a day after election. Great. You rallied for three days. Since, since, then you've literally been down every single day. You rolled over, you undercut the lows of that gap, the gap on the sixth. The low there was $499.60 and you undercut it today. That's not good. No Bueno.

Then in addition, that 503 level I spoke about, which was July's high, and that was the pivot point of resistance, you're now below that. That's why for me, I want to, I'll get more bullish when we get back above 503, 52, 504, you know, that kind of a thing. The next level here for the QQQ, the NASDAQ100, which is what we're looking at here, is the 50B moving average near 489. And again, I'm rounding. Thereabouts, just to give you round numbers. Right now, the market's pulling back.

But when you zoom out, you're only about 4% below an all-time high. Okay, not the end of the world. but if we get more selling, a defensive stance is warranted. Dow, similar situation as the S&P, remember the Dow's only 30 stocks. The small caps, the Russell 2000, yet a huge gap up, big base breakout on the 6th of November, the day after the election. 228-63 was the high from July, so 228-63. and you undercut the low of the gap, which was 232.75. Yesterday, I believe you undercut that low.

Yep, 231 was low yesterday. And then you negated the breakout on Friday. Not the end of the world, just not the best action. And you've had above average volume in the IWM, which is a Russell 2000, the last few days as you're pulling back. Next level there to watch is the 50-day moving average, and that's near 2.4.2.2.2. 221 or 222. All right. Next. The midcaps, the S&P 400. Let's look at this. 58550 was the high from October. You broke out on the 6th. The low that day was 599. You're now below the low of that gap. And you're flirting with testing slightly undercut. Came close to undercutting. Didn't quite undercut. 584. 87. Yeah, it came close to the October highs. Let's put it that way. You got the 21-day moving average near 582, and then the 50-day moving

average below that near 5-72. These folks are the next lines in the sand that I'm watching. If those areas are taken out, the major indices undercut the 21-day, like the Q's the NASDAQs, the NASDAQ-B broke the 21-day, the NASDAQ-100 did today, and then breaks the 50-day, and then breaks down below November's low, and we get more selling, I'll get a lot more defensive very, very quickly. Remember, Buffett's two rules to investing. Rule number one, don't lose money. Rule number two, don't forget rule number one. Simple.

I have an amped investment system. I like structure, right? Just think of two people that want to become good at anything. One has structure and has discipline. The other one's loosey-goosey. And we want to work out. Okay, I know Monday, Wednesday, Friday, I'm doing this. Tuesday, Thursday, I'm doing that.

Saturday, Sunday, this, that, off-day, this, that, boom, boom. There's structure. Okay, great. The other guy, eh, I'm going to lose 20 pounds. How you can do it? it. When are you going to do it? Yeah, whenever I feel like it. How? Not sure. It doesn't work for me. Structure, discipline are key ingredients to be successful in just about any endeavor in life.

Same with the market. So I give myself structure. Took me, I think, 10 years to figure that out, but I give myself structure. Because I know I'm not going to remember everything. I know my brain's going to look for shortcuts and try to delete things and the easy way here and that, that, that, that, da, da, da. that there's no way I can organize hundreds of stocks and even 30 or 50 stocks and know what they're doing and any structure so for me I create guardrails or create reports that I write when the market's closed where I can get my thoughts on paper or on digital screen right me old days I used to write on paper now it's type on the computer and when I get out of my head

no Tony Robbins has a great line he goes get out of your head or you're dead When you get out of your head, what happens is something magical happens when you write things down. Oh, I can go back and look at it. What was he thinking that day? One of the best things I learned how to do from Gary and from Bill O'Neill and a lot of legends do this is post-analysis. I print out my trades and I write down the reasons why I bought or sold any stock at the time of the sale or the purchase of the sale. you need the entry of the exit. And then I look back afterwards and I keep two folders, winning trades and losing trades.

And I look back every month, every quarter, every year. Look at all my trades and say, why did I buy that? And I look for patterns because humans are creatures of habits, right? So I look for habits, patterns. I want to be a detective into myself, into my own behavior, and improve it. I want to get better. I want to excel. I have that itch.

I want to push myself intellectually. I should sweat more. That's another goal of mine, but I'll get there. And do what? I notice certain things. When I have structure, in other words, during the weekend, when the markets are closed, I'll take look at the market and look at the best ideas. Set them up or on Fridays, really, I could do that depending on the market.

Every day is different. But daylight, today is perfect. Because when the market pulls back, I'm looking. for leadership. And then I write those ideas down and I have a playbook for next week. So I create a plan and then I trade the plan. Up. Up next, I'll go a lot more into it to help to give you some structure.

I'm Adam Sarhan. This is the one and only Investors Edge. Hi, I'm Dr. Jay 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. All right. hiring managers out there. What's worse? Being understaffed or being poorly staffed? Well, that's a trick question, because both are recipes for chaos. Either way, just say to yourself, this is a job for Indeed's sponsored jobs. You'll get matched with candidates that meet the skills, certifications, and everything else you're looking for. Or go a different way and get no traction. Seriously,

sponsored jobs posted directly on Indeed are 95% more likely to report a hire than non-sponsored jobs. is a no-brainer. Spend less time searching and more time actually interviewing candidates who check all your boxes. Less stress, less time, more results. When you need the right person to cut through the chaos, this is a job for Indeed's sponsored jobs. And listeners of this show will get a $75 sponsored job credit to help your job get the premium status it deserves at Indeed.com slash podcast. Just go to Indeed.com slash podcast right now. Indeed.com slash podcast. Terms and conditions apply. Need to hire? this is a job for Indeed's sponsored jobs. Success starts with your drive,

an American Public University is here to fuel it. With affordable tuition and over 200 flexible online programs, APU helps you gain the skills and confidence to move forward. Whether you're changing careers, starting fresh, or pursuing a lifelong passion, our programs are designed for people who never stop. You bring the fire, APU will fuel the journey. Learn more at APU.

West.edu. We're listening to America is talking. Investors Edge. 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. In case you're just joining us or missed any part of the show, you can go to GaryK.com. Rewind, fast forward. Listen as many times as you want. over and over again, pause, take notes, anything you want to do, all available at GaryK.com. All right, so we're speaking about the importance of having structure. Take it two humans. One has structure, the other one doesn't.

Who's going to perform better over the long term? Most likely, the person was structured. Not necessarily, but most likely. Higher probability outcome. So we have a similar situation here in the market. I want structure. So I create a plan. I find the best stocks. When the market's pulling back like this, look at a stock like Disney, D-I-S.

Now, this guy gaps up yesterday on earnings. Volume's been up, what, one, two, three, four, five, six, seven, a bunch of days in a row. And you're coming up the right side here of what could be a new big base. And you're up on a day like today where the market's down. That's an easy way to find leadership. when the markets pull back and your stocks or the stocks that you're watching don't that's job number one hey why are these stocks not pulling back markets down 4% this stock is up whoa that has my attention now not just because the stock is up all of a sudden I'm going to go buy it no not at all but

it has my attention so areas that are strong like the financial right now have my attention. Take a look at the XLF. Very strong action, very tight action. While the market's pulling back, you have healthcare stocks getting hit, biotech stocks getting hit, semiconductor stocks getting hit. XLF, the financials are just super tight and actually up for a big part of the day on Friday, right? Transportation stocks, the IYT, another area that's acting well on a relative basis. Gapped up after the November 6th, you know, the big election and all that fun stuff. And it's been going pretty tight since.

Not as strong as the financials, but pretty strong. If you like Kirby enthusiasm like I do, and I know Gary does, it's pretty, pretty good. If you don't watch Kirby enthusiasm, don't worry about it. It's pretty good. If you didn't watch it, you're probably laughing. All right. That's an example of a strong group. Another area that's acting well right now are the discretionary stocks. Look at the XLY.

Broke out above 201, 90, and you're above it. Didn't negate the breakout. That's a good sign, right? Individual stocks, similar situation. So I share my thoughts with people on findleadingstocks.com if you have interest. and in it, I gave out the weekend report earlier today because it's, you know, pressing it's a day like today where you want to see what's happening. I go through and I find these strong, strong stocks. I'll just give you a few.

Look at Goldman Sachs, for example, ticker symbol GS. Reported earnings, explosive gap after the election, and it's just sitting real tight near 600. That's really good action. Now, it doesn't mean it's going to have to go higher. these leading stocks can easily roll over, can easily fall. I think I have 22 best setups this week. And these are just the cream de la creme, the best ones out there. The ones that aren't going down.

Those are the ones I look for. Because when this pullback is over and the pull, you know, so far in history, every pullback's ended, and they're followed by a leg higher, guess what? Those leading stocks tend to be, not all. but tend to be the ones that blast off and run the fastest and go. Walmart is actually a leading stock, WMT. They report earnings in four days. Next week's going to be a big retail week for earnings. Walmart reports earnings, Target reports earnings, and so many others next week. The video is going to report earnings also next week, which I'll get to in a minute. But Walmart's a big leading stock.

I'm not going to buy it today because it has four days to go before earnings, but it's acting well, right? And I can go on and on and on, but that's what I'm looking for. Look at a Motorola solution's MSI. Big gap up sits tight for a few days, above the 50, above the pivot point, the prior pivot point, so on and so forth. So that gives you a drift of what it is that I look for when the market pulls back. Look for those stocks that are not pulling back or are actually up. Or pull back, but don't pull back as much of the market. Again, outperformance.

Think of it like a sports manager. You own a team and you want the best players on the team. That's it. I can buy and sell. I don't have to pay Soto. I think he's going to get like $500 million or $450. Stay with the Yankees or go somewhere else. You don't have to do that.

You can literally click a mouse and you're in. Click him out. He's benched. The stock, whatever it is, right? So I want leaders that are on my team that are acting well. And then give him time. And when things change, I change. Navidia reports earnings next week.

It's going to be a big report. Why? Because it is arguably the leader in the AI space. Palantir reported earnings, another big AI stock, PLTR, just recently a few weeks ago, bam, exploded afterwards. Great action. 20 to 60, somewhere in that area, just since August, I think. Huge move.

Navidia, if it gaps up, that's going to be good for it. for the market, all things being equal and it's good for semiconductors. If it gaps down and gets crushed, not good. So those are some things to keep in mind. As the market pulls back, what I'm looking for are leaders. I'm looking for outperformance. I'm looking for the sectors, the industry groups within the sectors, and then the stocks, the top stocks, the cream de la creme,

the strongest of the strong. the leaders. Because most likely once this pullback is over, and I have no idea when that'll happen or how deep in the pullback will be, those leaders go and they go fast. Again, things change fast to the upside and to the downside. Just as a refresher, a pullback in the market is 9% or less, zero to 9%, you know, down a percent, 2%, 3%, single digits. That's a pullback in the market, when the market pulls back. A correction is 10 to 19%. Right now it's down three or four percent, depending on the index you look at, just pulling back. But that could get worse.

So I want to prepare. And that's where the defense comes into play. So my structure is my amped investment system. I have in the book, if you're interested, you can go on Amazon, grab it. It's called psychological analysis. The idea there is that fundamental and technical analysis are not enough to beat the market. There's the third school of thought, which is psychological analysis. Okay, great.

idea, big idea, one sentence is learn how to make rational, not emotional decisions, especially with your money. All right. In the book, I talk about a lot of stuff. There's cartoons in the book, by the way, folks. So it's written, it's broken down, it's simplified as much as humanly possible. And that's why it was number one for, I think three months in a row, every day for three months when I first published it with Wiley.

So in it, I talk about the Amped Investment System. And it's really simple. There's four key principles there. is advanced entry points. I want to be buying with institutions, be aligned with the big money. M is market conditions. Be aligned with the market. Be in harmony with the market. P is psychological analysis, which is know thyself, know the market sentiment like I spoke about earlier. And D is defense first. That's so powerful. Defense first. And defense comes in two forms. Capital comes in two forms. Mental capital and physical capital. Physical capital is your money.

mental capital is what's going on upstairs in your head. And we all have good days and bad days and times when things are going really, really well. Like in sports, you could see me with a hot hand or a cold hand that's just not working no matter what we do and happen to me lots of times just no matter what doesn't work. Sometimes no matter what I do, it just works, not literally, but for the most part, most of the things I do work. Great.

The energy shifts. Whatever it is, I have no idea. All I know is that it happens. Okay, great. Be aware of that. And when things aren't working, I back off. I trade smaller or don't trade at all. I don't want to get in my own way.

You know, in the book, I said, I have cartoons. There's a superhero inside all of us, which is the best version of myself. And then there's what I, like the smart money superhero. And then there's what I call the dumb money beast, which is like a Tasmanian devil character, runs around, makes emotional decisions, causes you to be erratic and mood swings and this,

that, and the other thing. Who's going to be better at, managing money. Someone who's calm, cool, and collected, or someone who's highly emotional? They give a relationship between a husband and a wife. There's two couples. One super emotional. The other one's calm, cool, and collected. Right? Check yourself to have a thing, right? Go check yourself before you wreck yourself. That's a line. So anyway, the idea is to bring out the superhero. Up next, we've got a lot more to cover. I'm Adam Sarhan, and 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 CBS 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 stomach ache every time that I eat. And it just becomes like a lifestyle where, oh, yeah, you know, I just, I have a stomach kick 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. Here 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

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Well, what are you waiting for? One, two, ready, go. In the investors edge with Gary Culpa. And welcome once again to invest. Fester's Edge. In case you're just joining us or missed any part of the show, you can go to GaryK.com, rewind, fast forward, listen at your convenience 24-7. All right.

Last few minutes we have together today. I'd like to talk about, we talk about structure. We spoke about post-analysis. We spoke about the market defense. When things change, they change fast. Okay. We have a few things that keep. in mind, the mental capital and the physical capital I want to spend a few minutes on.

Because who controls our outlook? Us or somebody else? We do. There's the inside, right? The mental capital to me is more important than the physical capital because you can take somebody and take away all their money that has high mental capital and they'll make it back. You could take somebody that has low mental capital and they win the lottery and then they broke a few years later or months later or whatever.

You hear these sad stories with these athletes that make millions of dollars and then they're broke and they're working at the supermarket, you know, whatever awful situation. It's the mental capital. Tyson has a fight coming. Mike Tyson this weekend, I saw the ad on Netflix and I think the guy blew through, he's made and blew through hundreds of millions of dollars. I don't know the exact number, but a tremendous amount of minds put it that way. My goodness.

So what's the difference between the person who has strong mental capital and weak? It's their internal dialogue. And that is so incredibly powerful. We can't control what happens to us in life, for the most part, but we can control how we react to it. Once I understood that truth, my life changed. changed. Every aspect of my life changed, especially with the market. I can't control who wins the election or what happens to the market or the stock gaps down or the CEO does this or whatever. SMCI earlier this year was one of the strong stocks in the market and now they're possibly

getting delisted on the NASDAQ because they have accounting fraud. What? You would have told anybody that back in January or February or March when it went up so much, you would have been left out of the room. Things changed. They changed fast. So one of the big lessons that I'd like to drive home is how to improve that mental capital. You know, on a split-adjusted basis, what was it? Not even split-adjusted. $27 S-S-M-C-I all the way up to 122. Yeah, it was over 1,000. That's one point. But anyway, 27 to 122. It's a big move. And now what? All the way down to 18. So January was at 27. By February, March, it's at 122. And now it's down to 18. So things change. They change fast. All right. Mental capital. This morning, I'm driving my kids at school.

That's my thing. I do it every morning. And we were talking about one of their friends. And their friend was upset about something. And there was no reason to be upset about it, but they were upset about it. So, okay, who controls their happiness? You or someone else? And they said, uh, what? Me. And then they realized that they control, they want to empower them, right?

Same thing here. Empower you. I had a guy on, I was talking the other day and he was just really quiet. Hello? How are you? Monotone character, almost like an old SNL skit. I think it was Will Farrell or something like that where they had the monotone kind of guy, but really low energy and just, you had to pull teeth to get the guy to speak,

and my kids were around. And I said, okay, imagine if you're that person or if you have somebody who's really high energy or even just more energetic. Who would you want to listen to? High energy, daddy. Okay, great. Who controls your energy, kids? You.

It's all the mental capital, right? Same thing. Imagine I come on the radio. I'm like, hi, everybody. The market's down two points a day. You know, no. No way. who controls I do. So the same thing. The mental capital is so important. And understanding that

losses happen, it's inevitable if you're an active trader and they're okay. It's huge. It's tremendously liberating because if you can keep your losses small and let your winners run over time, you'll do very well. I used to get upset when I get stopped out of a trade. Now I'm happy. It frees up my capital to put it to work in a better idea. It complete the paradigm shift, mental capital. It shifted in my head. And I made that shift. Just boom.

Now it might take me five years to make that decision, but boom, when you're ready, just make the decision and go. There's a great TED talk by Mel Robbins. She goes, when you want to do something, just count down. Five, four, three, two, one, and then bam, do it. Imagine you're in the pool, the water's cold, or you tiptoe in. You're going to go in there. Just three, two, one, boom, go. I love that.

It's true. You're going to control the dumb money beast, or I call him Schmelf. In my house, when someone's upset, we're saying, oh, they're smelhing. You know, Schmelf is that fictitious character, the emotional character, the dumb money beast inside all of us, who just takes over sometimes. You don't think straight. You're just behaving in a highly erratic or emotional fashion. It doesn't happen often, thankfully, because we just pointed out now and say it's schmelfing, and it stops. You just wake yourself up kind of a thing, but it happens everybody. And once in a while, you're just in a bad mood, whatever it is. Snap out of it. And you get into the superhero mood where it's like, oh, okay, I'm in control here.

I'm going to get stopped out of trades. That's okay. I'm not going to let it impact my anything. My being, my soul, my energy. Zero impact whatsoever. Nobody likes it. When there's a stop down on trade, I get that. It's a different story.

But you could like it. I'm going to ask you to like it when you get stopped out of trades. I'm just saying is reframe it in your brain so you're not upset when something inevitable is going to happen. It's kind of like going to work in rush hour traffic and getting angry when you're in traffic. There's no point. There's two guys in the same car, the same traffic. One's got the hair down, relax, music, the other one's road raging. They're in the same traffic.

I'm not saying to sit in traffic. No, get out of the traffic the first second you have. But while you're in it, there's no point in being upset. All you can do is raise your blood pressure and cause yourself more harm. And it's not going to change the external situation anyway. You get really angry or mad or upset after losing trade. Is that going to help you find the next winner? No.

Calm, cool, collective wins just about every single time. over the highly emotional and erratic, crazy kind of mindset. But it's empowering. It's shifting the power, taking the power back, reclaiming that power. And then using that energy in a healthy fashion to find the next winner. It's all about the next best decision. The next best decision. And taking control.

All right. I believe that's all the time we have for today. always this has been an absolute pleasure I want to thank everybody for listening have a great weekend everybody do like gary says hug the children and i'll speak to you again soon take care everybody this has been investors edge with gary cult bomb on biz talk to listen to past episodes or to get in contact with gary go to gary k.com that's garykk dot com struggling to see up close make it visible with viz this is a once daily prescription i 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, dimmer, dark vision, headaches and eye redness. Talk to an eye doctor to learn if Viz is right for you. Learn more at Viz.com.

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