We are on the Brink of a GENERATIONAL MARKET CRASH (Uncut) 02-28-2025

We are on the Brink of a GENERATIONAL MARKET CRASH! | Chris Macintosh & Brad McFadden

so so there’s a whole lot of factors which have led towards the chart that you guys are looking at I would just posit that the risk behind this now is insufficient for the reward that you might expect well to know that you shouldn’t probably be investing into it sorry mention something you mention something Danny which was very very straightforward and like didn’t even occur to me for NVIDIA to double it’s got to get to a $6 trillion Market I mean we’re in videos now like the last few weeks i’ haven’t been paying too

much notice but it was at 3 trillion of you know a month or so ago whatever but to do that it’s got to essentially uh um find from somewhere the capital that the same market cap as the French stock market or UK stock market right how how does it do that you’re watching Capital cosm my name is Danny and today’s guests it’s chrest MacIntosh and mcfaden by way of capitalist exploits my favorite investing newsletter guys thank you so much for coming back on the show yeah Danny thanks thanks for having

us it’s great to be here always good always a pleasure Danny yeah likewise well let’s just Dive Right In Here fellas Chris let’s start off with you uh as we were mentioning off camera there is obviously no shortage of things to talk about so let’s kick it off with the weather over there in New Zealand how’s it like over there no I’m just kidding what is most topical for you Chris out of everything that’s going on what should be on the radar screen of the not just the average investor but just the

average inhabitant of planet Earth you know since we last spoke um there’s not a whole ton of things that have changed I think what’s what what is happening is we’re further down the particular road that we’ve been talking about for a number of years now and that road is one of a super cycle in the commodity markets it is one of political dysfunction conflict both domestic and international and all the ramifications of that um one of which is typically inflationary or stagflationary environment these are all things that

we’ve been talking about at length for the last four or five years and I think it feels like we’re just further down that particular path I mean we can get into the details of like the Ukraine conflict and I remember writing maybe just a year after the conflict started saying that ultimately the end of this thing is going to be that Russia wins because it has to um and that the bankers will come in and rape and pillage most of Ukraine and um that’ll be the end of it and now we’re sitting here and Trump’s just

organized that he wants over $3 trillion worth of their resources as payment for the war that they basically started um and Russia’s going to probably keep all the territory that they’ve taken and so you know these are the sorts of things and it’s not like I’ve got some Crystal Ball but it’s just when you read history this is what happens these are the types of things that happen in these Cycles um in in the places that we are invested into um like I said it feels like we’re just further down that

particular path and that’s both in terms of the commodity cycle but it’s also in terms of the other Cycles which is to say at this point we have Extremes in the equity and debt markets the likes of which are make blood want to shoot out of my eyes um and so now Brad you’ve got a bunch of charts on that one talk kind of you can highlight what that looks like because I think you know we are well known for the concept of asymmetry and one of the things with asymmetry is people often think about it

in terms of oh I’m going to make a lot of money and that’s not entirely accurate that’s one side of the asymmetry coin the other side of the asymmetry coin of course is is risk and having a relatively low risk so you can look at any investment and say what’s the asymmetry of it what is the relative risk what’s the relative reward and um what we’re going to present I think is that where the vast majority of investors today are inves represents a symmetry in the exact wrong way I.E the risk is extraordinar high

and the upside is extraordinarly low interesting and and so I mean we can talk about the bond market we can talk about a bunch of things but um BR if you want to run through some of theu looking at it’ll highlight slides you know what we’re talking about okay I’ll just start the where’s Brazil in this damn thing I always get my ey here okay how’s that yep if I start at the start wouldn’t it right okay so yeah D we just go through there’s about half dozen charts here just going through the extremes we find

ourselves in in world financial markets uh from a sort of you know real ultra high level macro point of view different extremes and different themes sectors markets um I don’t know quite where to start but we’ll just start you know uh or this one here so the the biggest problem we find in all these charts I’m going to show you is finding a Time series that goes back far enough and this is not going back to you know 19 or 2000 or 1990 but going back as far as we can 1970s even longer if we can that’s it’s always been a big

Challenge and um but lo and behold when we do find those charts they do go back to um record levels as far back as the chart go so this is World value versus growth and um it’s been somewhat unprecedented the uh the downtrend the the magnitude and duration of of value underperforming growth now people ask I say what what’s the difference between value and growth or essentially it’s it’s the valuation that investors put on future earnings of companies uh growth rates so um obviously companies that have a

higher growth rate um or perceived a higher growth rate get a higher PE ratio that that that that that’s the essence of the difference between value and growth and just what people are doing now is Val these particularly like the Magnificent 7 and all its relative friends um putting massive valuations on the Ford growth estimates now we’ve never seen this since the 1970s I suspect if you go back if you could go back to another 50 odd years I don’t think you would have seen any record set um like we have now now

here’s something that I don’t think anyone’s really thought much about so it’s magnificent 7 and we could break that down to the the ver components but the issue is that many of these individual components now um you be it Microsoft or Amazon uh Nvidia whatever are actually bigger than World stock markets themselves so one has to start asking well okay well how can you continue growing at these growth rates when you’re bigger than World know world world stock market oh and probably world economies too it’s just it’s it’s it’s

it’s delusional these these companies cannot grow it’s all very well if you’re a$1 billion company or $100 billion you know to to increase your earnings significantly but not when you’re like at 3 trillion which so that’s something to to consider we we so uh we suspect that the the growth what what these companies are going to deliver in terms of growth is going to really surprise the market in terms of on the downside they’re going to fail to deliver on the earnings um um growth um expectations now this is more specul

here Brad and Chris but what do you make of the fact that so much of Trump’s support base comes from this you know this Silicon Valley milu Elon Musk Peter the uh David saaks um the whole PayPal Mafia guys who benefit off of lower interest rate isn’t that why they’re trying to bring down the 10e so they can effectively lower borrowing and interest rates so that they can continue you you know being the venture capitalist that they are don’t they stand to kind of keep this thing going for as long as

possible so in much the same way as there was a saying that not to fight the FED would it also not be why saying don’t fight Trump or don’t fight uh the current Administration they in yeah yeah look it’s kind of interesting bring it up I didn’t I never thought of it like that I was I was thinking in terms of the contrary sign of all these um Tech johy and involved and you know go back 20 odd years or 30 odd years it would be energy companies getting involved now the tech companies yeah but I can you defy

gravity Chris you may want to comment on yeah look I mean I think if you look at history the the the history indicates that it’s almost like the players fit the scene and the scene is that we have over inted markets we have over overvaluations and so the it one doesn’t like bad the other so for example if you’ve got a company that has a an enormous stock price what often do you do well you take your overvalued equity and you might buy up other companies right because and and by doing so you will get an even greater

elevated stock price this is why we see m&a at the top of Cycles okay you see at the top of Cycles because you’ll take your overvalued stock and you’ll go and you’ll buy other other Enterprises with it because it’s like free money and by doing so then the market goes oh my gosh you guys are complete Geniuses you’re getting even bigger and then they give an even bigger stock price and this keeps going until it stops going okay the point I’m making behind this is that because of the elevated stock price it

brings about actions that the management teams can do they can go out and buy other companies because it’s free money if I gave you a free million dollars the odds are that within a month you’ll have bought something maybe you bought your wife a nice new handbag maybe you bought a new car but like money’s burning a hole in your pocket to some degree now you’re probably going to invest into some good things because you’re a bright guy but the point is your ability to do things that you wouldn’t otherwise do is

now in place I think the same thing exists in the markets so Brad you made a really good point you go back to um say the the the 40s 50s 60s guess who were the main political donors it was like big oil companies right it was so now they had huge market caps relatively they had that ability they had the equivalent of me giving you a million dollars and they go how do we spend it well we can go and use political doners ships we can push the FED around like we can have influence over and above just simply pulling oil

out of the ground and selling it to people in the same light we have the tech companies today who have influence as a consequence of having elevated market caps and so they’ll use it so what I’m saying is like it doesn’t really matter who that happens to be whether it’s your tech companies whether it’s your oil companies whether it’s your biotech Pharmaceuticals whatever whoever happens to be in that massive bull market will utilize the influence that that comes with having enormous wealth right because with that comes

power and they’ll use that power but history indicates that it always collapses yeah so so and again you talk about like we were talking about asymmetry even if that even if you and we’re not saying this is going to collapse but it’s risk reward what is the risk to buying I mean good Lord what’s what’s Nvidia trading at at the moment let me just market cap about three trillion um Chris is about the same market cap as France and UK [Laughter] okay here we go forward PE 29 PE of 49 okay so what’s

meter yeah but Chris what I mean you talking about a company it’s on a a three trillion market cap I mean how the hell does it grow you know when Beyond me just it needs another three trillion do just a double exactly yeah yeah your risk your risk in this is very different to your risk in in buying um something quite quite different and here’s the thing the greater the so so because there’s more market cap there’s more liquidity and so your institutional money and your quants well not your quants your your alos they can easily

buy and sell this without getting any slippage keeping in mind that the vast majority of capital in the world today is moving on a short-term basis I 3 months is the whole time for an equity well that was like two years ago I don’t know what it is today right it’s down to three months and by the way in the 1960s it was 14 years okay so so this institutional Capital which is run by elos they do not benefit from slippage they don’t so they need to have deep liquid uh classes of assets that they can buy into which is well they’ll buy

treasuries they’ll buy into meter they’ll buy into Facebook and they will not buy into a market cap of companies like we buy which a a billion dollar market cap or $800 million because the volatility on it means they get slippage and they can they can lose money on it so so there’s a whole lot of factors which have led towards the chart that you guys are looking at I would just posit that the risk behind this now is insufficient for the reward that you might expect well enough to know that you shouldn’t probably be investing into

it sorry you mention something you mentioned something dny which was very very straightforward and it’s like didn’t even occur to me for NVIDIA to double it’s going to get to a $6 trillion market cap I mean we’re in videos now like the last few weeks i’ haven’t been paying too much notice but it was at three trillion of you know month or so ago whatever but to do that it’s got essentially uh um find from somewhere the capital that the same market cap as the French stock market or UK stock market right how how does it do

that that’s like there completely it’s where’s the money going to come from well unless they start printing money like hell I guess they could anyway so yeah it’s it’s bizarre um okay now L small caps versus large caps so this is this just a Russell 2000 versus S&P 500 again unfortunately we can’t go back prior to 1979 but it’s is small caps are about as unpopular as what they were at the heart of the tech bubble in the late 1990s early 2000s um and this one here so this is uh this is the world

msci msci world xus versus MCI world so virtually non- us markets versus the US and all in US dollars so there’s no currency effect here now where do you want to take the bare Market from is it from The Late Late 1980s let’s just take it from um 2010 10 2009 that is what that’s now gosh let’s say 2010 that’s that’s 15 years of the US up performing other markets it sort of reminds me a bit of um The The J Japanese thing how back in the late 1980s everyone thought you know Japan was the only place and piled all

the money into Japanese Market especially Japanese Banks of course that ended in in tears but anyway so unprecedented in terms of the money that’s gone into the US Stock Market relative to other markets and all this is like oh very very interesting so so what well we find fantastic value sitting outside the US simple as that that’s where that’s where we’re looking it’s very very difficult to find Val in us you know um excluding um the energy and Mining sectors yeah and you guys have been really good at that I remember uh you

were the first people that I had heard who called out the Argentina trade back in 2021 and that I mean that has gone up significantly since then as you can just a simple search of ARG I believe that’s the Argentinian or the Argentine ETF um you know that’s done a very good you know that’s done very well since 2021 so um what other what areas do you see what regions do you see uh having kind of like a similar asymmetry or similar value play at the moment relative to the US what what like Argentina yeah or something similar to

that we’re in2 gez Danny we never we saw value back in Argentina back in 2021 and it was one of those classic cases where we could buy stocks on P’s of four and five and six thereabouts different yields of five to five % plus some those divid yields are close on 10% and uh so we invested we never knew that these markets were going to go up fivefold since we bought them so you never know the I think one great area of value that no one’s really paying too much attention to right now is China um it’s probably encompassed by

this chart here so this is Emerging Markets versus US Stock Market pretty much as unpopular love unloved as they were at high the tech bubble so and look at this trend here just I was just going to say CH actually Brad if you go that so the chart that we had before there of um USX well World index xus so um you can argue about the numbers and people do but as a percentage of global GDP the US is I think um something like 40% um sorry sorry um no 20 25 25 26% and and China’s about 177% okay so find China smaller as a percentage of

Glo G Global GDP however when you look at market caps I mean um I think it’s two-thirds Chris of the World Market is the US market now so so like you have this extremely unbalanced setup there and then when you dig down and you go okay like well what are the equities priced like well I mean you got some of the biggest companies in the world with the fastest growth rates like say Alibaba or 10 10 20 these they’re trading for and these are growth companies right so you’re not unlikely you’re going to pick up growth

companies at pees of eight or 10 or something but I think Baba’s at is it like 13 have a quick look um yeah Ford PE of 13 for for Alibaba Holdings so this is an area that just not really being looked at um and and there’s still this like I had this the other day someone said to me something about ah Chinese junk and they were looking at Chinese cars and we wrote about it I think in the last weekly or or one before so the the the CEO from Ford um after spending four years away from China so throughout the

whole Co Fiasco basically there were a lot of companies didn’t travel and so on and so forth um after visiting China he came back and he said this is The Benchmark this is what we have to stand up to so not not that like this is the new Benchmark this is the head of Ford right who’s saying The Benchmark now is China and Chinese Tech and Chinese industrial capacity and so on and so forth for building motor cars now keep in mind they’re building a motorc car is if they can build Motorcars then they

can build a whole lot of other things as well to a degree and to an expertise level that’s actually a high quality and if you think about how markets go through these Cycles so like you know depending on your age and the listener’s age some might remember there was a time when Japan was like that I was like cheap Japanese now it’s like these are some of the best highest quality uh manufacturing companies in the world Hong Kong had the same thing it was cheap cheap out Hong Kong was so markets go through

these phases of where they they they adopt and they often mimic and copy right that’s what the Japanese did they just copied European industry and technology and they got to a point where they were now better at it and and so on and so forth and China’s going through the same phase and while that’s happening the markets have been caught up to the fact that China is actually not priced cour not priced accurately certainly if you looked at the tech stocks that’s that’s one space that we’ve been investing

into um but I think the same is likely true of the auto manufacturing um industry and so on and so forth and that’s without accounting for the fact that they have on their doorstep some of the fastest growing emerging markets and um middle class in on the planet in terms of asan yep yep and there’s other markets out there I mean okay Greece is probably hardly Emerging Market but there’s Great Value there Great Value in Israel Poland Denny it’s not hard to find Great Value um recently we’ve been buy

buying buying Ukrainian agricultural stocks but anyway that’s a whole different story okay so um energy now this chart here is 5 years old but if we could put another 5 years worth of data on this from 2020 onwards I think it’s yeah 2021 onwards it hasn’t changed at all so energy is waiting in the S&P 500 still about 3 and a half% plus or minus 4% now we’ve never seen this we’ve never seen such a low waiting and energy stocks and hard and and and needless to say we battle to not get Overexposed to

energy because there’s just so much value there um recently we we we purchased a um Israeli Energy company div yield of 10% growing PE was very very low very little Deb story carries on anyway so yeah um energy and its various different forms be it coal be natural gas be it uh your integrated energy producers and also um need we forget um oil service companies so mining there we go obviously this includes Co um um gold mining as well but it’s uh more unloved than what it was back in Tech the tech bubble in

2000 that does look like a sort of bottom formation there you can probably see it more so in the gold stocks right but we’ve never seen such a low waiting of mining stocks in the S&P as we have now and um I think the last one we have here oh this is commodity so we could have we could have bought in the the classic Goring and Rosen swag um that long-term chart they’ve got of of Commodities versus the US Stock Market this is just um from Bloomberg but uh record record lows in terms of the performance of of commod I versus

the S&P 500 or or equities in general the Dow so what does this all say this is just um the world is perfectly positioned Danny for no inflation um or anticipating very very low inflation going forward um by default uh anticipating low interest rates um low oil obviously low commodity prices which obviously related to interest rates and and inflation and endless growth of these um these these these these growth stocks yeah it’s an undefended point I mean it’s a blind spot within the world that they don’t that that uh I mean what I

can’t I can’t really see the numbers there but how much of a multiple is it from our current ratio all the way up to the I guess to the there in the 70s I mean I’m assuming it’s at least it’s about the current ratio let’s say current ratio let’s say it’s about 10 MH to get back to where you were in say the mid 1970s that’s about 200 so that’s um the 20 folding well this is relative too so commod is relative not absolute relative to S&P 500 right so the S&P could crash down it could crash significantly low while Commodities stay

constant I’m not saying that’s going to be the case I’m just putting it out there as a a thought experiment yeah so you could have well it’s it’s about it’s about 20 fold differential so either equities Fall by 50% and commodities go up by tfold that gets you to where you were in 1970s um or equities just go nowhere for the next 10 years and commodities go up 20 fold that get you back to 1970s but okay that’s you know Pine of Sky stuff Danny but if you you go back to like 2010 that’s still a four-fold increase

right in Commodities relative to equities get you back to where you were in 2010 2007 you know 8 n thereabouts so you know it’s very very difficult to see um if you start looking at these the valuations of these growth stocks and how big they are and the fact that nvidia’s got to find the market cap with the French stock market to double um and and and you see how low commodity prices are relative those it’s like the there’s very very little downside and investing in so commodity sensitive um stocks or

sectors um and huge asymmetry you could say oh what’s going to what what’s going to pick these things up why will Commodities go up relative to the S&P 500 um what’s going to be the Catalyst it’s like well to that I always say you know what um the thing that got the bull market going in 2009 it was about the 8th of March was a leaked report that City group was going to be profitable in the first quarter of 2009 that’s the very thing that started the great ball Market from 2009 till now you say well that’s interesting but so

what and and and the same the very same thing will happen there’ll be something insignificant that turns this and off it goes um selling big get selling buying you know will take hold and you get a snowball so anyway as I said the the world is perfectly positioned for a benign Outlook to inflation over the next decade plus and we don’t think that is going and if that’s not the case if inflation surprises the upside and it’s persistent these growth stocks are in big trouble so all these Trends you’re

seeing here will reverse and reverse real quick interesting and you see we’ve had this bottoming pattern for over you know decades now what makes why so I’m just kind of Playing devil’s advocate here why would why would it go up now as opposed to any other time in the last 10 years 15 years that it’s had a chance to what you what you could find a thought what you could find is um all the there’s been very little development of new minds and sources of energy all the capital seems to have gone into developing this renewable this

renewable craze be it offshore wind turbine farms and solar farms and so on and so forth um oil has been and and and particularly outside of shale the O it’s been starved the Market’s been starved offshore oil been starved of capital um so if you find that sh oil starts surprising to the downside IE not growing the way everyone thought it was or just topping out um there’s just not the other sources of oil out there to bring online to offset that so oil price Rises likewise of natural gas likewise of the price of

coal because they’re interl likewise with the price of fertilizer so on so forth and that’s what gets us going and people quickly because as we said outside of shell there’s been very little or no development of um of other other assets and oil in terms of Mines any big more copper mines being produced no uh seems like most of the money has been going into developing these sort of you know Green energy assets uh what’s another one another one coal any developments in Coal Mines um no big Coal Mine big big mining houses

have been offloading their coal assets into smaller less well financed companies so all that concentrating on his current production not actually um developing new assets and and we’re also starting to see this development of De globalization happen now which was uh which was globalization right we we had been going nowhere but up on the globalization curve for the last you you know since just the the very beginning of this chart there um and of course globalization creates deflation and de globalization should Ergo create

inflation because yeah so it kind of restricts Trade It restricts the flow of goods and and and and um Commodities there is that another uh Factor yeah probably didn’t think too much about that but yeah Trump’s doing all he can to to increase inflation in the US you kind of see this on a micro level if you go back and you think about the shutting of the sewers right when the hoties were busy bombing ships and whatnot and so like how that affect fected Egypt right so which is a relatively insignificant

small country okay but what happened there was you had Supply chains that got disrupted Egypt had roughly 30% of the revenues come from um the sheriffs on the sewers and their debt structure was problematic and so basically they were now suddenly cut off with 30% of their revenue was was slashed and they couldn’t make debt payments and they had a Deval the currency and issue more debt and the currency collapse so like these things have real ramifications right where one thing leads to another leads

to another now I don’t pretend to know exactly what’s going to happen but here’s what I do know I do know that the world is incredibly indebted that’s a dangerous position so Egypt was in a dangerous position now if they had been in a stable position shutting off 30% of their revenue might not have killed them it might not have caused a well it wouldn’t have caused a currency collapse and a bond collapse if they were at their house in order but they didn’t have their house in order and so these

events which we don’t know um ahead of time that they’re going to happen have that sort of PR potential to cause that Cascade the other component is in times of um these cycles of geopolitical tensions your probability of something like that happening is higher so our probability of having International tensions is higher and it’s higher also as a consequence of debt Lyn Alden talks about this a lot actually so we’ve got a structure where you have a a problematic debt situation globally in many

countries and a propensity now for so we call it de globalization political dysfunction trade Wars things of that nature it’s not just that those can there’s the direct consequences then there’s the second third order thinking which Howard marks talks a lot about great investors don’t look at the first term first order thinking they think second third order thinking and second third order thinking is things like currency collapse it’s seem like bond market collapse it’s and so if you take that and you think about it you go what

happens when those things happen you go back and you look at history I’ll tell you what happens they’re inflationary hard assets do well energy always does well we have typically International and domestic conflict again inflationary so it’s actually not that hard to determine okay where should my portfolio be largely allocated towards well countries that don’t have that domestic um debt structure I.E they’re not at risk to the degree that others might be hard assets like you know what I mean it’s not that

hard to actually figure out where you should be relatively allocated critical to society and here’s the other thing like I can and I spend a lot of time looking at that sort of stuff and Brad will sit there and he will just look at what is value like what is deep value what are the asset classes that we should be in and we come to the same bloody conclusion Brad’s like oh we should be in this and I’m going yeah but that’s my macro view tells us we have to be in that and he’s like yeah we have to

be in that because it’s the cheapest it’s ever been I’m like great because like I look at like we should be there and I’m like it’s it be it would piss me off if it was expensive but it’s not it’s cheap so it tells me that we’re still got a long ways to run in terms of the cycle playing itself out um and again risk reward the highest risk I think right now is basically in um us Equity markets like the S&P and the NASDAQ but when I say S&P I’m basically talking about the mag 7 or the top 10 companies because if you’re buying the

S&P that’s what you’re buying they’re like roughly 40% of the index so like you’re not getting diversification in the sense that you think you are and then if you’re going into bonds you’re going into bonds presumably us bonds whether they even if they’re corporate um at rates that don’t that are not reflective of the underlying risk so I’m like you just stay away from both and unfortunately that’s where most investors are invested if you’ve got a pension if you’re in North America in fact even if you’re in Europe some of

them are investing in US markets again going back to the charts that Brad showed of like where are the biggest market cap it’s all in the US most of the capital in the world is sitting invested into the US markets oh you’re you’re still on Chris I just put you on solo I thought I was I thought I got cut off go where’d you go um I put on you because you’re on a roll I hate looking at me anyway um yeah so it’s it’s like it’s risk reward and then saying okay where does the value lie and where do I

where am I taking the least risk possible keeping in mind that at least from the way that Brad and I investing we’re not looking at this for them next six months we’re looking at a multi-year time frame I don’t promise to tell you what’s going to happen in the next six months I have no idea um I don’t really care sorry is is gold an Harbinger is gold is what’s happening in the gold market right now kind of like an early warning indicator for you know this commodity bull market in much the same way that

the gold price began to rise back in 2020 before all of these other Commodities yeah you know hit their stous people people talking about um you know a run on the deposit and London Etc it’s like well whatever it’s yeah then you’re right this started happening a long time ago it’s a canaran a coal mine I suspect Gold’s going to go way higher not for all reasons that people are talking about it’s an underlying inflationary thing break down the value break down the confidence of uh of of Fiat currencies etc etc which probably

you know all these listeners been well aware of but if gold keeps doing what it’s doing we pretty quite sure it will then you know gradually other Commodities will start doing the same thing yeah I have a chart here I want to show you guys so this is oops that stage Okay so we’ve got the gold price here in uh with the candlesticks in play and then we’ve got the commodity uh index the crb yeah and as you can see here back in back in why is it like that let me just index star you starting to break

out again yeah so the gold price started to run here much earlier than the commodity index started to rise here see so y um we’re starting to see this influx um buyers into the gold market uh raising the gold price while the crb is still it looks like it’s starting to kick up you know we haven’t really hit the highs yet of 20122 but sh Denny shush stop yeah we’re still building up positions damn it yeah yeah well there’s that I mean I uh what do you think do you is does gold play a role in all of this does gold

kind of like is gold kind of like an early warning indicator when it comes to these commodity bull markets well my value is that gold moves on um on a loss of faith it doesn’t necessarily move so because commodity markets can move on growth right so like you go back and you think about like Asian tigers remember remember them so in the Asian tigers like you had the Emerging Market um uh explosion of consumption and so your commodity markets performed accordingly like there was demand but it didn’t affect gold Why

didn’t it affect gold because there wasn’t a risk to the monetary system there wasn’t a risk in terms of loss of faith in fact it was kind of like hey these are good times like we have these new markets that we can sell to and there’s like demand and people are getting richer and everything else that’s not the environment that we’re in today it’s not this emerging market growth boom despite the fact that Emerging Markets continue to grow not saying they don’t but the the the story more accurate accurately today is one of

a monetary um crisis as well and that’s where gold really shines is in a monetary crisis because it’s the loss of faith that brings buyers into the gold market because gold being the monetary instrument like if you if you’re trying trying to hedge yourself against um growth of emerging markets and and a cons a higher cost of the items that consuming whether it be copper or or um base metals or iron ore or any of these things then you go okay well that’s an inflation environment I can hedge against that but you don’t necessarily

you’re not concerned about a monetary crisis right you’re just going oh there’s just bloody more people buying in the world today okay um that’s not so so we’ve got today this loss of Faith yeah yeah loss of Faith de globalization uh the things that really matter are harder to get now I.E energy and commodities and um you you you’ve really got this multifaceted attack um that that acts as a Tailwind for the commodity and energy space you have these AI Wars that are heavily energy intensive you have mult not just AI Wars

but uh you know Wars across the world of course we are kind of went winding back down the clock as it relates to Ukraine uh but nonetheless the world is a Tinder Box Another War could break out anywhere else uh de globalization is underway and so we have U you know multiple you know of course the green agenda although that seems to have fallen apart Fallen apart in recent years as well but still electrification is is a big deal China is electrified its country and so all these things require um what we just

alluded to what we just talked about so I I can’t encourage my my viewers enough I want to share my screen one more time uh before we sign off and it is to really encourage you guys to check out um Chris and Brad’s capitalist exploits we do have a special $1,000 off for Capital C and viewers of this podcast so if you are interested be sure to click the link down below and get your special $1,000 off and um as you can see here Chris and Brad’s Insider has outperformed the market both NASDAQ and S&P over the course of the last five

plus years and what you’ll get um you can add anything you want if you want to add add any more color here Chris or Brad um but you guys will you know you see you get you have the capital gains portfolio which is aimed at achieving asymmetric uh portfolio plays at the tune of 300 plus per returns and you’ve also you also offer an in portfolio which is more dividend focused and uh you know research and guidance through your weekly newsletters and educational videos that you also have posted on the website as well that

can uh you know effectively teach the viewer how not just what to fish but how to to fish uh monthly Q&A as well as a community Forum by way of a slack Forum anything else I miss uh here guys that uh you want to mention I guess it would be more um what you don’t get right we’re not a marketer’s backside and we don’t pretend to be and we frankly I find marketing boring so it’s like what don’t you get because I know what a lot of newsletter Publications do offer what you’re not going to get is a whole lot of shiny

objects um we don’t up sell down sell side sell what you what you see on the can is pretty much what you get and we are long-term deep value investors with um multi-year time Horizon we advocate for and speak strongly about portfolio management and position sizing it’s something that sounds incredibly boring but it’s absolutely critical if you want to build long-term wealth um if you’re going to chase after every next shiny new object which um I understand gets clicks and it gets likes and everything

else you are nothing more than a gambler and you will probably come out with the same sort of results that a gambler come out comes out with we have no interest in any of that and we don’t spend any time talking about it and we won’t and so what you’re going to get probably is to that degree somewhat boring um so if you want look for any fcoin uh buying recommendations coming you w you won’t get fcoin but you’ll get you know you get you get things are just no one else talks about you know when we

started talking about Argentina there was no one else at all um we were buying Israeli stocks when the war war still on but in the heart of the war fantastic value look what we offer is is things just don’t get anywhere else we look we look for in nooks in cran throughout the world where there’s where there’s Great Value and so you know you’re not going to hear us talking about Nvidia or you know those what the earnings going to be inidia or something like that it’s it’s little we oil service companies in Singapore or cigarette

distributors in Israel um or Bank in Argentina those sorts of weird and wonderful trades yeah the way I like to kind of think about it and describe it is that if you are the CEO of your portfolio um you you can’t do everything you especially if you have you know a business that you tend to or you have a nine to5 job that you tend to you’re ition does not you know cannot you know deviate too much away from what you do dayto day and so when I look towards you guys I kind of look at you as an outsourced research team right so I you

know I I can leverage the newsletter I can leverage your insights and then I can make my own decisions as to whether or not I want to execute on a trade or not but you bring me the insights you go out there and I mean your newsletters are huge guys I mean every week you come up with like these 30 plus pag P newsletters and they’re just chalk full of um you know the news and they’re chalk full of like you know sectors that I would never even think of um and that’s really the the value where where

it comes in especially if you’re busy if you have your own business if you have your if you’re preoccupied you know very heavily with your nine-to-five job um that’s another key aspect as well I kind of look at you as like an outsourced research team that um you know anyone can get the Services up so anything else you guys want to talk about I think that’s um that’s all I had uh you know for you guys today but if there’s anything else we left on the table that you wanted to get to feel free if not then um yeah feel free to

drop your socials and can uh close it out no don’t think of anything um you can follow us on Twitter I guess cap I don’t even know what’s my Twitter handle capitalist exp I’ll have a link down below there you go awesome yeah much for social media but anyway awesome well hey thanks for coming on guys I I had a really great time and if you enjoyed this podcast be sure to give us a like and comment go capitals exploits go in the comment section if you agreed with the analysis if you disagreed with

anything uh do drop me a comment as well let me know I do read the comments guys so let me know your thoughts uh the link to our special $1,000 offer is in the description box below as well as the pin comment and so with all that said thank you guys for watching and I will catch you in the next episode bye great thanks thanks folks [Music]