MM #311 AI Stocks Explode 🚀… How Long Can This Last?, What Investments To Avoid, & How To Handle Debt 📉

Summary

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Market Mondays #311: AI Stocks Explode 🚀… How Long Can This Last?, What Investments To Avoid, & How To Handle Debt 📉

Date: May 12, 2026
Hosts: Rashad Bilal, Troy Millings ("Shoddy"), Ian Dunlap
Podcast Network: Earn Your Leisure (EYL)

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Episode Overview

In this episode of Market Mondays, Rashad, Ian, and Troy dissect the unprecedented explosion in AI and tech stocks, address whether this extraordinary run can continue, and dive into strategies around prudent investing and debt management. They break down sector trends, highlight which investments and strategies to avoid, and discuss the importance of generational wealth and long-term thinking. The hosts also tackle live audience questions and examine how macroeconomic and political factors intersect with the current investment landscape.

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Key Discussion Points & Insights

1. The Current AI Stock Boom: How Unprecedented Is It?

Timestamps: 08:50–19:35

• AI and semiconductor stocks (Nvidia, AMD, Micron, TSM, SanDisk) are delivering returns never seen before in public markets, with some investors seeing gains exceeding 2000%.
• The hosts compare the current run to the dot-com boom, emphasizing that today’s leading companies are more fundamentally sound and crucial to global infrastructure than their 1999 counterparts.
• Quote (Ian, 10:48):
  "These are some of the strongest profit margins I've ever seen in these types of businesses in tech ever. Like this class of technology companies is probably 15 times better than the ones in 99."
• Discussion on the "AI hype" versus real demand—acknowledgment that while some demand is being pulled forward, elite companies will remain strong.
• Ian advises a “hyper concentration” approach: focus on a small basket of quality tech giants for long-term growth.

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2. Spotlight on TSM (Taiwan Semiconductor Manufacturing Co.)

Timestamps: 20:09–25:51

• Despite dominating global chip manufacturing and seeing strong growth, TSM is often overlooked relative to Micron/Nvidia but remains the backbone of the AI and data revolution.
• Geopolitical risk (China/Taiwan/US relations) is ever-present but demand for TSM’s output continues to rise.
• Quote (Shoddy, 22:33):
  "That's a company that doesn't go anywhere. Yes, we're very aware of the geopolitical threat but it's vital to the AI story. It has to succeed in order for the space to succeed."
• TSM's 26%+ year-to-date gain is exceptional for a trillion-dollar company, showing its central role in tech’s next phase.

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3. Investment Indicators: Most Overrated Metrics

Timestamps: 26:30–35:02

• RSI (Relative Strength Index) and MACD are called out as overrated when used in isolation for buy/sell decisions.
• PE (Price/Earnings) ratios are similarly problematic—high PE doesn’t automatically mean a stock is overvalued, as shown by Nvidia, Amazon, and Tesla's runs.
• Quote (Ian, 28:38):
  "If you're not able to buy your position or sell your position off that indicator alone, it is overrated... RSI is a warning signal, not an entry or exit indicator."
• Rashad and Ian stress the importance of deeply understanding a company’s actual business and macro role, not just scanning indicators.

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4. IPO Strategy: Should You Buy the Next Big Thing?

Timestamps: 37:23–46:53

• Ian stands firm on waiting six months post-IPO before investing, due to lockup expirations and price stabilization.
• Example: Many "hot" IPOs (like Snowflake, Virgin Galactic) faded while those who held quality names like Tesla for a decade saw massive wealth.
• Quote (Ian, 39:41):
  "Most of you who want to get into an IPO want the quick run up and you're not looking to hold for 10 years... I'm always going to buy based off price."
• Upcoming AI IPOs (Anthropic, Anduril, possibly CoreWeave) will be huge, but true generational wealth comes from patience and long holding periods.

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5. Robinhood: A Platform for the Next Generation?

Timestamps: 54:57–59:46

• Robinhood is discussed as a long-term holding, especially given its role in the new “Trump accounts” for children and ongoing fintech innovation.
• Quote (Shoddy, 55:05):
  "Absolutely, absolutely. Robinhood was added to the portfolio a few weeks back..."
• The platform’s ease of use, new features (options/futures/crypto integration), and youthful CEO are lauded.

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6. What to Avoid: Sectors & Stock Types to Stay Away From

Timestamps: 60:20–67:21

• Core focus: Only invest in tech, energy, and healthcare for the next cycle. Avoid all other sectors, especially consumer discretionary, unless companies are exceptional.
• Dismisses most software stocks that aren’t market leaders—cites Snowflake, Duolingo, Chegg as risky.
• Emphasis on concentrating in the highest-quality names, not chasing laggards or “cheap” stocks.
• Quote (Ian, 64:06):
  "...If a company isn't incredibly exceptional, you cannot afford to touch it. Anything of quality is going to cost more."

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7. Legendary Investor Warnings: Paul Tudor Jones’ Caution

Timestamps: 67:29–73:59

• Paul Tudor Jones warns that buying SP500 at all-time highs now could risk a flat or negative return for a decade. Hosts contextualize: this is more a concern for large-scale capital and those buying at peaks.
• Quote (Ian, 68:36):
  "If you invest in S&P now over the next 10 years, I don't think you'll be negative, but that is solely based on if you're getting in on a superior price."
• Reiterates: Don’t throw lump sums at all-time highs; focus on building reserves and only deploy when opportunity arises.

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8. The Great Debt Debate: Pay It Off or Invest?

Timestamps: 78:54–89:34

• Rashad outlines how life insurance can be used strategically to cover debt so heirs aren’t burdened.
• They discuss the psychological and financial benefits of being debt-free, but also the importance of debt-to-income ratios and opportunity cost (should you invest spare cash instead?)
• Quote (Ian, 82:47):
  "The more debt you have, you are the liquidity for somebody else's family... It's an amazing feeling when you check the email and you don't have 58 bills to pay."
• Final advice: Keep DTI under 20% if possible; don’t get overleveraged regardless of income.

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9. Renting vs. Buying a Home for Wealth

Timestamps: 90:13–98:45

• Debate on whether buying a home is a good investment; hosts contrast the forced savings and appreciation of ownership with the flexibility and compounding returns of investing cash instead.
• Property appreciation is tied closely to school districts and neighborhood demographics, leading to challenges for Black families aiming for financial and cultural balance.

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10. AMD: “Has the Boat Sailed?”

Timestamps: 99:44–105:49

• AMD’s massive run still has room, per hosts. CPUs are still in high demand, and AMD is the clear #2 behind Nvidia. Target price is set as high as $521–$700+ for the coming cycle.
• Quote (Ian, 104:23):
  "Talking about power of long term hold... I've been in AMD since 11 to equity. I'm not exiting personally until it gets to 713.75."

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11. The Media “Barbell” Strategy & Business Diversification

Timestamps: 108:01–113:29

• Rashad shares thoughts on building brands across multiple channels and industries, targeting different audiences for multiplying revenue streams and influence—a "conglomerate" mindset.

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Notable Quotes & Memorable Moments

• “You cannot have generational wealth if you do not hold these companies for a generation. It’s just talk.” – Ian (45:29)
• "If you have conviction, stick with it. Understand the company, do the homework, and have patience." – Shoddy (34:14)
• "We’re in the playoffs of the investing Super Bowl. Only invest in things that can get a bucket!" – Ian (64:06)
• "Learn how to hit your 10-year goal inside of three." – Ian (73:59)
• "Most people say they want generational wealth, but then you go mess off the money with every luxury brand on earth." – Ian (46:35)

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Flow & Tone

• Upbeat, highly knowledgeable, and full of insider energy; the hosts debate candidly and challenge each other but return to a shared focus on long-term value and practical wealth building.

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Conclusion: Key Takeaways

• Stay "hyper-concentrated" in best-in-class AI/tech, energy, and healthcare stocks; avoid overexposing yourself to unproven IPOs or trailing sectors.
• Use indicators only in context, and remember that conviction, macro understanding, and company fundamentals outweigh technicals alone.
• Combine prudence regarding debt and leverage with aggressive, long-term investing in world-changing firms.
• Take generational wealth seriously: true results come from holding high-quality assets—not from chasing quick flips or stretching into questionable sectors.

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Final Word (Rashad, 97:11):
"You only have long-term generational wealth when you don’t sell. And you only don’t sell when you avoid large purchases. One of the biggest large purchases is a house. So it all ties back in."

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Transcript

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[Ian]

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[Rashad]

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[Shoddy]

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[Rashad]

to save for me, entrepreneurship has always been the way.

[Ian]

Investing is important because it's the only way you are going to be able to be rich and wealthy for your family. We can close the wealth gap by working together.

[Rashad]

Market Monday is the biggest investment show ever.

[Ian]

My life has literally changed since watching eyl.

[Shoddy]

When you can make people money and you can add values, they're going to be forever indebted to you.

[Ian]

And I promise you, this year, I'm going to make y' all even more money.

[Shoddy]

Disclaimer do your own research. Our content is intended to be used and must be used for informational purposes only. It's very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with or independently research and verify any information that you find on our show and wish to rely upon whether for the purpose of making an investment decision or or otherwise. Let's build our knowledge, our community and our brokerage accounts. Love is love. Yeah yeah. We back.

[Ian]

Happy Monday. Happy Monday. How y' all feeling?

[Shoddy]

Yeah, feeling good man. Feeling good. We are not in the same place man, which is very uncommon, but the information don't be as punant so I'm excited man. First, I want to say appreciation. Shout out to both of y' all for pulling up to to Danielle's birthday dinner, man. I appreciate y' all showing out and showing up, man. That was love. Obviously we we we went away for the weekend, celebrated Mother's Day. Hopefully everybody had a wonderful Mother's day. Yeah, man, just relaxing, reflecting and, and ready for the week. I've been locked in. I shut down all the noise and I just been locked in.

[Ian]

I love it.

[Shoddy]

And yeah, we got some treats. We got some treats. Ian, how you feeling, man?

[Ian]

I feel absolutely amazing, man. Great market, great returns. It's a lot to talk about, a lot going on in the market. I see DRAM has a two time levered etf. We'll talk about in a little bit. Who. Hey, I kept telling y', all, hyper concentration. No, what about consumer. Nobody even talk about consumer discretionary. No more. All tax.

[Shoddy]

Taking a hit.

[Ian]

It's taking a hit. Shoddy, how you feeling?

[Rashad]

I'm good, I'm good, man. I can't complain, you know, just back at it. Back at it for sure. We got a big week. Earn your leisure this week. We got Lee Jenkins. He's a chocolately very, you know.

[Ian]

Yeah, yeah, yeah.

[Rashad]

He's an interesting story from an athlete to personal financing and something that, you know, I'm, I'm familiar with as far as world of financial advisor. Talked about life insurance, talked about investing, talked about a lot of the things as far as like wealth management. Wealth management. So That's a good one. 12 o' clock Eastern Standard Time. And of course we got blackout on Wednesday at 9 o'. Clock. We got a special guest we got to throw. Goldie coming on.

[Shoddy]

Hey, yo. Hey, yo, Ian, can I do one of these guys? Can I, can I duck out the screen?

[Ian]

You should shout out to Goldie. Yeah, you got Goldie.

[Shoddy]

Yeah, y', all, y' all heard it correctly. Y' all heard it correctly.

[Ian]

Level advice with the baddies. Tune in. We getting right to it. If y' all like the Berg and Aisha episode, y' all are gonna love this.

[Rashad]

Live, live, live episode.

[Shoddy]

Duality, right?

[Ian]

Yep.

[Rashad]

Wednesday, 9 o'. Clock. Colby. That's going to be interesting. That's interesting. Make sure you tap into that to

[Ian]

my social media team. Clip it and put it on Tick tock. Not on my gram though. Okay. I'm in campaign season. Just shout out to Goldie, man.

[Rashad]

But yeah, we got a lot. We got a lot to cover. Yeah, that Iceman definitely on the way. Shout out to Toronto, the boy family. I think come out Friday. I think Friday.

[Shoddy]

Yep, Friday. We're here. Iceman's here the 14th. They dropping, I think a sneak. One of those. The fourth part of the series.

[Ian]

Yep.

[Shoddy]

So y' all make sure y' all tune in, man. It's been a long time.

[Rashad]

Shout out to the six side you know, shout out to, you know, Brampton, Scarborough.

[Shoddy]

This ain't that local action.

[Rashad]

King Street, Queen Street. Yeah, man, the whole, the whole shout out to the Wasas, Chinatown.

[Shoddy]

Y know, y' all know shout out

[Rashad]

to the sick side, man.

[Shoddy]

Shout out release party at Soto Soto. I'll meet you. I miss liquor most. Y' all know how we do.

[Ian]

Shout tv, Gucci, baka boy.

[Shoddy]

It's time.

[Ian]

It is time. They saying this one phenomenal. Oh, I've seen a couple.

[Shoddy]

Yeah. So I saw some people giving some leaks, but okay, that's good. Anticipation just builds even further now. I'm looking forward. Let's do it.

[Rashad]

All right, man. Ian, any announcements?

[Ian]

Stock Club call Sunday, May 24th at 4pm Central. If I made you money, please put yes in chat. We'll talk about later. But kudos to all the new Red Panda millionaires. We make millionaires and not memes. If you want to be one of the people who, who become a millionaire from investing long term into the market, go to ianinvest.com I love you. Let's have an amazing show. Had a blast in New York. Kudos to my brother Bilal Little who's at ETF Central. He actually just graduated to a new position. Kudos to you. Thank you for your love. Top five episode in ETF Central history. So thank you to everybody.

[Shoddy]

Now we got to get it to number one. Go run that up. Go, go, go stream it. Go watch it. Go listen to it. Into this top five, but make it number one.

[Ian]

Yeah, let's go.

[Rashad]

Let's get it. And also Troy's options class is Thursday at 7 o'.

[Ian]

Clock.

[Rashad]

So make sure you tap into that. I know that's going to be highly anticipated. Talk about, you know, MU and all of the other sandisk and drum and all of that stuff. So tap in on Thursday at 7 o'.

[Ian]

Clock.

[Rashad]

Shout out to everybody. I took advantage of the, of the bundle that we did last week. It, it is over. But everybody that took advantage of it, if not, then you could just. It's back to regular, you know, eyuniversity.com monthly annual. But if you took advantage of that three year congratulations. If you didn't take advantage, then just get in where you fit in. Like I said, whether it's monthly, whether it's annual, you know. But you know, go to Eyu University. Make sure that you take advantage because that, that class is probably going to be, you know, the most people probably that we had so far, so highly anticipated class. So make sure you tap in.

[Shoddy]

Yeah, I'm excited for it, man. I've been cooking up. I gave, I gave shot a little bit of the preview with the direction that we're going while to. Every day I've been out here I just been like, all right, I gotta add that, I gotta add another piece. There's so much going on. I spoke to Ian a little bit about it earlier. From TSM to there's so much that it's gonna probably be one of our longer classes and we got a special guest coming in too to go with some options training as well. So Eyl University, all the earners, make sure y' all pack in. All the new earners make sure y' all pack in. Is going to be one of those ones. Last time we showed you what happens if you miss a class, right? We showed you some of the returns. If we span that out to a six month, maybe a 12 month range, it gets really, really disgusting. So make sure y' all tap in. It's going to be special, I guarantee you that.

[Ian]

And I would be remiss if we didn't celebrate Rashad for elevating to getting a gold jacket. Just a light 2000% return on the wake up.

[Shoddy]

He had my. I'm like why are people hitting me up? I read the post, I said oh thanks daddy.

[Rashad]

Him you. Well let's start with that because that's been obviously one of the, the topics of discussion. You know, every. Every couple of years these type of things Happen. Happened with Nvidia.

[Ian]

Yep.

[Rashad]

It happened with SanDisk actually same time as Mu Mu has happened with man. What, what else has happened in this recent history?

[Shoddy]

I mean all, I mean the entire memory sector if you want to look at it, it's a West, it's Western Digital, it's Seagate as well. I mean we're watching these companies. We watched it with GEV crossing over 1100. We, we've watched it with Dell. I mean there's so many parts of this AI story that are just running right now to all time highs and AMD obviously after their report and I'm sure we'll talk about that a little later, the question still remains has the story changed? And the answer continuously is no, it hasn't. And so we've been talking about it on market monies for two years now.

[Rashad]

Right.

[Shoddy]

So like when people are talking about Micron, it was $86, $87. We understood what the GPU was and I'm glad that people came to a realization of what that actually is and understand how that's Going to of the data center rack and then understanding what memory, the component and the part that it plays, it's vital. And the fact that there's a shortage means that now we can control price. And when you can control pricing on something that is in demand, you're seeing legendary returns. And so it's interesting, after they reported its blowout quarter and we were like reporting going, I'm like, look, sometimes the numbers are not matching what the stock is doing. Sit tight. Going to be in for, for a nice street here and, and here we are crossing over. What is it? Did it get to 7, 800 today? Nearly got to 800. Yeah, we said it was going to 4. We said it was going to 5 and here we are. So the story's not over yet. Still has some more legs. We're still in 2026. It's been sold out up until 2027 and I think the story still continues.

[Ian]

Yeah, hit a high of 8:67 today. Amazing return. And you know what I love about the story when it comes to Nvidia, AMD, Micron, SanDisk, they are real companies that are focused on enterprise that deliver real results. Like for a while there are a lot of companies that were getting a lot of attention that were not great businesses. So even for the point where everyone keeps making like us, this is comparable to 1999. These are some of the strongest profit margins I've ever seen in these types of businesses in tech ever. Like this class of technology companies is probably 15 times better than the ones in 99. But hell of a run for Micron. I know everyone wants to know, is there more room to grow? There is. Do I think they'll split at some point? They're going to have to if they keep running at this space. But once again, Rashad, I want to give you credit not only for holding on for one, but for multiple and being an advocate for a quality company.

[Rashad]

Appreciate it.

[Ian]

Don't come here being gracious. No, don't come. No, no, no, no, no, no, no, no. I want,

[Shoddy]

I know, I think it's, I think it's important. Right? Like, I think, I think people understand when they watch this, they watch us, they know I'm, I'm extremely bullish on a lot of these, these companies shot. It kind of takes the more conservative approach. So like watching something that goes from 10 to now 2000% shout out to G. He just hit 2000% as well. Like what, what is the mind frame of the conservative investor as he's watching? Appreciation.

[Rashad]

Well, you know I'm always a paranoid person just in life in general. You know, I think, you know, that's just, I'm paranoid. So I always think about what the worst case scenario could happen. So I think you always, you always got to be mindful during good times of, of just, you know, thinking about what could potentially happen, go wrong. And there's a lot of, there's a lot of talk about that right now on Instagram, at least on my algorithm.

[Ian]

It's too much of it.

[Rashad]

There's a lot of talk of, like you said, and comparing it to 1999, comparing it to 2008, comparing it to, you know, a variety of different stock market crashes that have happened in the past. So I think that, yeah, the companies is a difference between what happened in them. But you still gotta think, you know, just be mindful. There's geopolitical things that can happen. This midterm elections is going to be interesting. Talking about the Republicans redistrict, redistricting.

[Ian]

Yeah.

[Rashad]

And so now that looks like that, you know, they might actually be able to hold on to the House, which looked like they were going to definitely guaranteed lose the House. Now that kind of changes the geopolitical landscape of things. Iran, you know, you got Netanyahu goes on 60 Minutes yesterday talking about the goal is for Israel to not rely on America at all, all anymore and not have any more funding within the next 10 years.

[Ian]

Done.

[Rashad]

Well, 10 years is a long time, but still. So it's a lot going on right now, huh?

[Shoddy]

Yeah. I said after all those years to say like, yo, listen, in 10 years, we don't want to have anything to do with this.

[Rashad]

Give me 10, just give me another 10. I'll figure it out. I'll figure it out. A decade. It's definitely historic, you know, it's definitely historic. As far as, you know, just coming from a world of finance, that's not something that, you know, is ever really thought about. Something 2000%, a thousand percent, something like that, that's really like even private equity returns really on a public market. So, you know, I think it takes a while to actually even fully believe it. Yeah, that's not something. Like I said me, I was in traditional finance for 12 years. So, you know, that's something that I still kind of have that, that level of thinking as far as, you know, more conservative safety, don't lose money, which that's always going to be the thing is not losing the number one rule. But, you know, you start, you got to kind of rewire your belief system A little bit to have, you know, more, take more risk and, and just have a little bit more, you know, optimistic view on things that not are, are not traditionally possible during, you know, regular financial structures.

[Ian]

Yeah.

[Shoddy]

Really quick. I think that that's important. Like, literally, that's a, that's a phone call that we just had. Like what he was just saying, literally is a phone call that we had. And the, the premise of it was like, think of the times that we're in where like, not only are you doing 2000%, but like you're watching communities of people that are saying, hey, I'm only at 600%.

[Ian]

Yeah. Like they're feeling like they're failure at 400. Somebody's lifetime return at one point.

[Shoddy]

100 is not good anymore. Whereas, like, you come from a world in 2008 when you're starting this where 7 to 12 was like, hey, if I can guarantee you that this is, this is really a good year, and now you've done 2000%, this is not the first time you've gone over a thousand. It's not the first position. So it's just a, a new time. And so I appreciate, I want to call it a pessimistic view. I call it more of a conservative view because it gives me a chance to explain my bullish case over and over. And so far the story hasn't changed. And so I don't think the returns are going to change because like you said, Ian, these companies are actually making real money.

[Ian]

Yeah.

[Shoddy]

They have real revenue and they have real guidance. And each quarter they're beating those, those numbers. And that's going to continue for at least to the end of this year and I think definitely into 2027 until we see drastically changed.

[Rashad]

I think the only thing that changes this, Ian, and just, I would like to get your perspective on it is the companies are obviously legitimate companies and they produce real products. They're not like just phantom, you know, nonsense. Is the demand over hyped? That's the thing that people I think are concerned about. There's a, there is a demand and there's a, there's a. But the AI demand had, there's been a forerunning of it. So like, if when it all settles down, well, AI will definitely be here and we'll definitely be a part of it. But will the demand, even if it comes down a little bit, that could be, that could make drastic.

[Ian]

It could be devastating for those who are not disciplined. And I want to. You can. And one thing I want to say you can be a conservative bull and also to the asset class that you use to express your belief in your bullish case matters. So like you did it in options, I choose to do it in futures. Right. So that matters the selection. But to your point, would that be a place where we get to a mean where the returns aren't as high? Yes, but I think the elite companies are going to remain elite. It's no different than like when I look at OpenAI and I said this before, OpenAI is the apple of AI and anthropic is the Microsoft. It's the same battle from 30 years ago. Now you have gates versus jobs, the capitalist versus the creative, the psycho person versus the more structured person terms of PR. It's the same going back to story. The same story. When you're going around making your case to go public. Anthropic has done a better job. And even like when Apple was coming public Right. A couple years later, then you hear about Steve Jobs parenting style and how he's not as president. That was to devalue the leadership of Apple which affected their stock to make you lean more on a safer Bill Gates who was safer at the time. Now we can argue if it was an illusion or not. Right. But my thing has always been you have to be hyper concentrated. The only case to be in any market is a bull. Because even when people are making that 1999 comparison, I'm like what benefit do you get over the market crashing because you missed out. Like let's say you short the market and you shorted with options or futures and your best case scenario you may get 4 or 500% because you're not going to stay into the bottom and you're not shorting at the very top hold for the long term for great quality companies. But do I think the demand will be there? Yes. Is there going to be some fallout amongst the companies who attach themselves to AI that are not of high quality? Absolutely. And I think that restructuring will come in late 2027.

[Shoddy]

Yeah, I think the key word you said there was shoddy was the man. I think that that's the word that I'm always looking for in every report. And the most important report happened in early April and that was tsm. And once TSM tells us that the demand has tripled or it's double or it's quadrupled, then I know the AI story is still very much intact. There are other companies that report and that helps. But if I know the manufacturing right, the order capacity, because it doesn't matter if it's Nvidia, if it's Google or if it's Meta, or if it's Xai, the manufacturing capacity still comes through tsm.

[Rashad]

Well, let's talk about that then. So let's. Not to cut you off, but. All right, so let's get into topics. Tsm, tsm. We haven't talked about TSM in a while. So TSM is having a good year. It's, it's 52 week low is 84. 184, 52 week highs, 420 hovering like above 400 right now. So TSM has not been talked about as much as like Micron or sandisk. So TSM is TSM on, on the verge of something historic, I think.

[Shoddy]

I mean I felt like tsm, we talked about it so much that it was like we had to find some new companies to talk about because. Oh yes, right. It's been the company, it's been my number one company. That and Amazon, I think since the start of the show. Just because we know the role that it plays. I think what we're seeing right now over the past week or so is it's kind of like it hit this 400 mark and it almost felt like it might have been it's resistance. But what's happening is that they have so much demand that they're trying to build the fabs fast enough so they can meet it. And so that, that becomes a slight issue. So much so that they've had to sign on other companies to help them with some of the manufacturing. I know we're trying to get the fabs here in Arizona up and running. They're trying to build out even more. So inside of Taiwan. The geopolitical threat is still there. TSM is at the core of it. So much so last week that there was a report that they said that, you know, we talked about how the cognitive AI works, right? ASML makes the machines, TSM buys the machines and manufactures for the rest of the world. They said, look, we're trying to make the next machine ourselves, right? Like what ASML does is great and they still have customers. It's not the fall of ASML by any means. They'll still have their customers. But they're saying, look, we might even need to be even more dependent on what we can make. And so they're looking at the long term, five to ten years. Hey, we build the next EUV machine for ourselves. That way we don't have to spend 400 million per machine to meet demand and we can produce at the highest level. They're not going anywhere. In fact if that story changes then I will come on market Mondays and it would be a very different tone. But as long as TSM has said that demand is still at the highest levels, the backlog is sort of the issue why it hasn't gone. We've said this on here a bunch of times. We wouldn't be surprised if it was a $300 stop. And here we are at 400.

[Ian]

400.

[Shoddy]

That, that, that's a company that doesn't go anywhere. Yes, we're very aware of the geopolitical threat obviously with China and Taiwan but it's vital to the, to the AI story. It has to succeed in order for the space to succeed.

[Ian]

Okay, really quick to piggyback off that. Can we stop saying in general the companies that have gained 130 return have not performed how they should. Like I know some of you are excited and this may be your first year investing. This is not normal and it's not going to continue. Here's what's happening.

[Shoddy]

Let that breathe for a second.

[Ian]

Giving you three years worth of gains in one year. So when the economy goes to they can say we gave you the etf, we gave you tsm, we give you micron. If you haven't figured out a way to be okay and financially viable after this run up even in private equity and I'm seeing how many people that were employees of OpenAI elect to cash out now opposed to waiting. The IPO I think is very telling. So even if you're getting 200% gains this year, factor in if the market drops and we have a rough year in 27, you're going to have to take care of yourself for the next two years off of this year's gains. That's why when Rashad's like hey I'm conservative. We've seen the story before. There's a been a bunch of high flying stocks that have went up 3 400% and the option as a result has went up 700% in the early 2000s. And what happened a year later tumult to 2021 had a hell of a run up 2022 came I'm like they changed the definition of the recession but the entire market still fell. You need a financial umbrella. So it's great. And that's why I posted yesterday and today no luxury spending for the next two years unless you've hit your freedom numbers. Oh what about do what you want but I'm telling you the economy is shakier than ever. And most people on social media that are reporting how well they're doing, they're lying. We know them.

[Shoddy]

So that means, that means. No, no, no, no AP swatch for you.

[Ian]

I mean that, that price point. Xander said this looks like garbage. I said listen my brother. But, but that, that's not a luxury price point for me. But shout out to listen. Even with that, everyone's a competition, even them collaborate. Think about this. In the last three months we've got a affordable MacBook and an affordable AP. That's telling that, that is very telling about the timing of when these collaborations are coming out.

[Shoddy]

So yeah, yeah, I think just the last point on TSM, if it, it's up 26 this year. If it, if it stopped this year, then trade it like that would be a good year.

[Rashad]

Right?

[Shoddy]

26% return on a company that large, a trillion dollar company is a great move. If you go span out from year to date, it's up 117. If you look at the past five years, 260%.

[Rashad]

What do you want?

[Shoddy]

Yeah, so like having a trillion dollar company move 20% is tough. That's a, that's a really good year. But the crazy part is that it's still part of the growth story and it's going to continue. I was actually looking at the market caps of trillion dollar companies. You know we got 13 right now. We started to show there was none like we were there. So the first One, we're at 13 now Micron, we watched on Friday it hit 700 billion and went over 700 a share. Now we're up at 8 instead. Like this will probably be all likelihood the next trillion dollar company. So I mean just unprecedented times,

[Rashad]

what's the most overrated in indicator in investing?

[Shoddy]

Oh, go first.

[Ian]

I'm a preface this by saying before I give the answer, cliffhanger. If you're not able to buy your position or sell your position off that indicator alone, it is overrated. Doesn't mean it's not valuable, but it's overrated. Most of you have an idea what I'm going to say, but I'm going to give you two. All right, in the air, RSI and macd. I think if you're having to look at RSI solely as a way if you should get out these last three or four months with these tech companies have proven you wrong. Like if you look in August, if you're using a 7030 RSI, it topped in September for Micron. The price for micron was 124.29 to 160 in August it's currently at 800. So when people like it's oversold that technical. I've said it from the very beginning as a person who's used it. That's why I always said 95 5. People say it's too extreme. But if you have been through tech long enough and if you trade the futures market, the 70, 30 and even 8020 is a warning signal. It is not an entry or exit indicator. So the real thing you have to look at. Too often people look at one year pricing projections, they're never looking at the 10 year pricing projections. That is more powerful than RSI alone. So I'm not. To those of you who use it, I'm not attacking you but I'm telling you as a phenomenal technician if you, if it was great enough on its own you could take your charting off and just buy off of there. You can't do that. I've take, I've shown this in Sniper in the trading room. I've literally taken the candles off and just bought off the indicators that I like with no candles. You can't do that with RSI. If you look at AMD and try, I'll let you go. AMD hit a oversold 70 range in April. April AMD was at 200. It's currently at 46231 and some change. So it is a warning sign, not an entry and exit sign. And for that reason in terms of using that indicator, I'm out. Back to you.

[Shoddy]

Oh man. You know what, as a user of RSI I'm gonna have to agree with you.

[Ian]

Thank you.

[Shoddy]

Because of the preference you gave. Because of the preference you gave. Context is important and if you had

[Ian]

context.

[Shoddy]

Context is important. It's important. Right. If you don't have the other indicators, how much does the oversold overbought really mean? The 95 to 5 thing, I get it. But again if people are solely trading of that they're going to miss a lot. Right. Like I've watched for probably three months now micron be oversold.

[Ian]

Yep.

[Shoddy]

And we watch.

[Ian]

Yep. Right.

[Shoddy]

So it's like where's the new retracement line? It hasn't given you S1. Right. And so you would have missed out on probably 17 new all time highs. And we've done the same thing with Santis and so that's been over. We watched Nvidia do the same thing and so if we're solely using that then yeah, it could Be a bit overrated now, in conjunction with other indicators. I like it solely by itself. Yeah, it's a bit overrated. I'm gonna give a different one because I, I mean, I had it in my notes and it's gonna say rsi. So I, I did one that I don't think most people would say, and I think obviously becoming better at technicals, which was one of my goals for 2026. I'm looking outside the box here. I'm going to put PE ratio.

[Ian]

I had this conversation with Josh Brown like two weeks ago and. Yeah, go ahead, Cook.

[Shoddy]

Yeah, because a lot of times people hear multiples of 40, multiples of 37, and PE ratios like, how much dollar will you spend per dollar of earnings for the company? For those not in the know, it can be misleading because it's that same RSI thought process of, oh, this is overvalued. Oh, it has a pe ratio of 37. Must be overvalued. Oh, it has one of 40. It must be. But I'll give you some companies that have been in that range for the past five to 10 years. Nvidia, Tesla, Amazon and Palantir is now in that. In that scenario of having overly valued quote unquote, or expensive P E ratios. Now, if you didn't invest in those because of it solely, then you've missed out on. I mean, it's obvious what you've missed out on. Right. The same is true. Right, well, I'll just buy the ones that have cheap PE ratios. Well, let me give you some of those. And again, I hate to beat this company up because I'm a customer, but look at Verizon's PE ratio. Looking forward. Pristine model, but underperform pristine model, cheap PE ratio. Oh, this must be something I need to invest in because of that theory solely. And if you did that, then you've pretty much traded sideways. If you're in Verizon for the past 10 years, maybe 20 years. Right. For the same thing. And so if we're using that solely as our indicator, that could be a gross overrating because that doesn't tell the full story.

[Ian]

And to be very fair, the market that we're in now because of exuberance, quantitative easing, and then the gambling element that's been added to the market, those old rules don't last. Like, even if you go through Intelligent Investor, like, I'm sure people have seen, to me, people are like, this doesn't work now. And I'm like, no, it's because of quantitative easing, where we Are we dead to gdp? Everyone's trying to get gains out of the market endlessly. And they've turned this stock market into a meme stock of every sector almost. So it used to be true if you had a little like a fair PE ratio. Palantir is a prime example, high PE ratio, they performed incredibly well for the time being. That may has changed a little bit. But 25 years ago, if a, if a company had a p ratio of 100 and some change, you'd be like, I'm out of it. People, people are throwing fundamentals away. So great point. Rashad, what about you? Is there indicator that you think people talk about that's overrated?

[Rashad]

I think every indicator is overrated, if only used just for technical analysis. That's my personal opinion. I think, like a lot of times people just go all strictly off. A technical analysis and fundamental analysis is important, but also a variety of other different factors. Geopolitical politics, Trump, like, I think everything has to be put into consideration. Like, you know, if you're just simply day trading a stock, then potentially maybe,

[Ian]

but even then they get slapped not knowing what the true macro picture is exactly.

[Rashad]

Because no matter what, no matter what the chart says, if Trump tweets the war. So if Trump tweet, tweet. If Trump tweets tomorrow, the war is over and the stock market is going to go up. If he tweets tomorrow, we doubling down for another six months in Iran, the stock market's going to go down. It doesn't matter what any technical analysis. The technical analysis can't predict that.

[Ian]

Well, mine for y', all, the, the normies, the humans. I agree.

[Shoddy]

Yeah, yeah, I agree. I. I think, I think most importantly, if you're going to invest is understanding the company you're investing. Two years ago there, I mean, you could have called me. Shoddy could have called. There would have been nothing. Somebody could have told me about Micron. I just didn't. I was oblivious to what everyone was saying. I'm like, look, I don't care what you're saying. I understand the story. I understand the need. Two years later, it's like, oh, my gosh, look at Micron. Yeah. You have to have conviction in knowing the company. A lot of times people just say, okay, I'm gonna list. No, go do the homework on the company. Understand what they do first. Start with the CEO. Right. Most people don't even know who the CEO is, and then figure out the need case, the moat that they have and their fundamental demand on the economy. And then Make a decision.

[Ian]

And that's a great point. Like these companies, even if you have belief in them, right? They are needed for the growth of America. So like they are important to the GDP of America. Like once we got out of the gamification era, we went back to basics and there's. Okay, even Caliper was a great company beforehand. Sandisk, great company. Like all these were great companies who just refocused on AI or aiding AI, but they moved the GDP for it for America. So you have to see how important that company is to growing, especially as debt is rising at a level higher than ever. You have to know that in fact that it is like belief in the company is important, but how does it fit into the overall economy? To grow the economy.

[Shoddy]

And the, the writing has already been placed on the wall, right? If we're going to make America great again, think about the companies that are.

[Ian]

Hold on, hold on, hold on.

[Shoddy]

No, no, no, no, no. In terms of technology. In terms of technology, right? In terms of bringing the supply chain back to America. It's why. Hey guys, Dell is just not a PC company anymore. They're involved in making the racks for the data centers, right? Dell hits an all time high. Caterpillar is changing the way they do business. This is not a tractor company anymore. They're making gas turbines to power the AI revolution. Caterpillar, it's a all time high, right? Like you're seeing that over and over. Micron is an American memory company. Yes, SK, Hynix and Samsung are the leaders, but who's the American one? Even when we were talking about the conflict or the water happening in Iran and that passage of the Strait of Hormones or Hormuz, what's passing through there, right? The helium that's needed that needs to get to South Korea so it can help with the functionality of building those semiconductors. Guess what? There's a company that doesn't get the helium from that part of the world and doesn't manufacture through that, right? So when I'm talking about Micron, like, hey look, I'm looking at where the manufacturing is coming from, where they get, oh wait, it's coming from England. Those passages are clear.

[Rashad]

Right?

[Shoddy]

And so that run up has happened at the same time that we're seeing a war happen in Iran that's blocking a passageway that's going to affect his customers, us competitors, not as customers.

[Ian]

Excuse me, Rashad, I see the contrarian look on your face. What are you thinking?

[Rashad]

No, no, I agree, I agree.

[Shoddy]

No, that was. Let him go.

[Ian]

Look,

[Rashad]

I Want to talk about IPOs? I know in the past, Ian, you said that, you know, you're not a fan of investing in IPOs, but it looks like, you know, this IPO season is going to be a historic season for the next couple of years, probably with everything that's been, you know, on the forefront as far as, you know, you look at open AI, you look at, they talk about anthropic, at some point it's probably gonna have to IPO Anderil. Now you talked about Andorilla a bunch. So. And then I, I had put a post on Instagram too the other day about generational wealth pretty much. And one guy, he was saying that they, he invested in Tesla when it IPO 1400 shares, which essentially would be worth $9 million today. And then another guy was saying his father put a million dollars in Tesla when it first IPO and it's worth $50 million today. So two of those stories in that clip was about Tesla's IPO. Okay, so should you revamp your strategy on this and start investing in IPOs?

[Ian]

I'm trying to, I want to say this kindly, but sometimes you need tough love. I think if a person is asking this question, should you wait six months or should you invest in day one? You don't have the discipline to hold long term to be able to get all the gains out of it. Like in that clip that you posted, which I love, and I think you highlighted this, most of it is talking about the sacrifices that the fathers or grandfathers made, right? Like the kid was like, my family owns this place. My last name is Churchill. Hell of a bar, right? And there's layers that we can talk about that and privilege, et cetera. But the sacrifice of a person to hold for a long period of time, that wasn't a two year investment. So should I revamp the strategy? Me, I'm always going to buy off of price. But the issue is most of you who want to get into an IPO want the quick run up and you're not looking to hold for 10 years. I talked to a bunch of you. I remember these conversations about every ipo and I'm asking that you hold. And people are like, well I did a trade on it. Why the you doing a trade on a company that's ipoing when you can get 1500% in your long term account if you hold for 10 because you want to be flashy now it's okay, you deserve to be broke. Don't have nothing to do with me. So no, I'M not going to revamp the strategy. I'm always going to buy based off price because a lot of times on those IPO days you end up being the exit liquidity like and even for me when Facebook went public there was a bunch of issues on the day even getting your orders filled because there was a connection issue on day one.

[Rashad]

They stopped trading at one point in time.

[Ian]

Even get your order filled at one point.

[Shoddy]

42 yes.

[Ian]

So there are things you have to factor in. But if you're going to hold for 10 years. Yes, but most aren't holding for 10.

[Rashad]

So. But okay, so for people that never watch market Mondays before what exactly is your strategy? Wait six months until you invest into an ipo.

[Ian]

You have to wait at least six months out before you get into a new company because a lockup periods most have expired. So most people who are in these companies pre IPO on the private side they have a designated period in which they have to wait before they can sell. And then also too I like for the price to settle. A lot of you who like love let's say Snowflake told me I was wrong. I don't hear nobody talk about Snowflake. It's not top 50 at all. It's a lot of these companies that have come and went. There's a lot of companies in that spec era that everyone kept. Virgin Galactic is going to be the next one to take us to the new frontier that at the bottom of the ocean.

[Rashad]

Well then also a lot of this is a new frontier as far as companies IPOing a trillion dollar valuation. That's something that never happened before either. Even meta. I mean Facebook was a very highly anticipated ipo but it didn't IPO anywhere close to a trillion dollar valuation. Not even close. So now you're seeing companies that's IPO and that expected 800 billion dollar valuation. A trillion dollar valuation. 1.2 trillion dollar valuation. So the upside potential you value if you IPO at a trillion. That's, that's, that's new. That's new waters.

[Ian]

Also I also have a lot of experience in investing and giving prices. Four trillion dollar companies like Nvidia at 98 and everybody told me I was crazy. I'm always gonna go with the price.

[Rashad]

And then they also saying I saw something on Instagram too also that said that the anthropic has the potential to become the biggest company in history.

[Ian]

Yeah, they're on trajectory. Go ahead.

[Shoddy]

Troy. I was gonna say like that's the part right. So like when we're talking about the bull case. And we, we spoke about this Friday sh when I was like, well, where is the mark? What is the market telling us? The market is telling us that hey, we're in a, in a bullish trend. But also these IPOs are going to be part of the story as well.

[Rashad]

Right.

[Shoddy]

And so if you look like anthropic and y' all can go back to the tapes, go back to 2022 when we're 2023, when I'm talking about anthropic and at the time chat GBT is the thing. And I'm like, no, this is anthropic. It's anthropic. Amazon, I love Amazon. They're invested. When you look at the companies that are investing in these companies that are ipoing, that tells another clear story. Right. If you look at who owns 14? Anthropic, that's Amazon. Amazon, who owns 17% of anthropic?

[Ian]

Oh, Google. Google.

[Shoddy]

Hold on. So you're talking about a trillion dollar valuation that they're going to IPO at and they own 17.

[Ian]

Well, let's smaller margin after the break.

[Shoddy]

I'm gonna get to Microsoft. Let's go to SpaceX. Let's see who owns 7% of a company that potentially has a 2 trillion dollar, not a 1 trillion, 2 trillion. All these companies will potentially be in the top 15 in market cap. Well, Google also owns 7% of SpaceX. So you take those two investments and add that now to the bottom line. What does that do to the valuation of a company like Google?

[Ian]

Google. Right.

[Shoddy]

So that trend keeps going higher. If we look at OpenAI, who owns 49% of it? Microsoft. Right. If they IPO at a 1.5 or wherever they're expected to be, what does that do to the bottom line of Microsoft? And so now that trend keeps going higher. So if these companies are entering the market at 1 trillion, that means that that growth story is kind of just getting started.

[Rashad]

Right?

[Shoddy]

Will there be pullback? Yeah, of course. This is why we say the six months and the fact that we've had the show long enough that we've seen IPOs happen before, we can use that to our advantage. We just watched Core Weave IPO last year. Right. We went to GTC at Nvidia, heard them talking about Core Weave. A month later, Corey was ipoing. We saw it shoe up to 148. We watch it drop down within that six to eight month range and that was floating back up towards those all time highs. You have to be Patient. But I think that the goal is. And I like that he set my grandfather. Because you're investing in it now to have it later.

[Ian]

Yeah.

[Shoddy]

Not to say, oh, I was part of it and I made my money and I got out of it. No, if you're investing in these IPOs, anthropic and we didn't. Cerebras is a company we spoke about last week. Another one that's on the I.P.O. it, Rick. Now, I hate when they say it's the next Nvidia, just like I hate it when they said it's the next Jordan or the next LeBron. But fundamentally it has characteristics that could be a. A disruptor.

[Ian]

It could be a disruptor and it

[Shoddy]

could be a comp in a sense for those not in know. Nvidia obviously makes the gpus. Right? They sell multiple gpus. Cerebrus is a company that's saying rather than selling multiple GPUs, we'll sell one big GPU as the operator. And so that's a fundamental difference. That could be a disruptive, but that's going to ipo and the world's gonna. We didn't even talk about stripe four years ago. That was the biggest IPO that was headed our way. That's a afterthought at this point, which is probably another 100 to 400 million billion dollar IPO.

[Ian]

And you can make the case, even in their case, they missed their window. They probably should stay private at this point. At this point, you missed your window, you, you missed your drive class. So I get it, there's excitement about it. But sometimes what I've seen happen, shoddy people have a lot of conviction before it comes out. And it comes out, then it drops 25%, they sell and then it goes on a tremendous run. Once again, you cannot have generational wealth if you do not hold these companies for a generation. It's just talk. A lot of people say they want generation of wealth and then you go mess off the money. With all. Every luxury brand on earth. We see it every year. Yo, bro, I should have listened. I would have been up like once I started doing the Red Panda millionaire thing, you know how many texts I got of people? It's like, bro, I should have listened to you. In 22, I opened up 5 million, but my girl told me she wanted to go to Turks and the boy was out there. So we went. I spent 30000 on a villa in Turks, stupid. Then Baka got her back in Turks.

[Shoddy]

Not nice. Not nice. Not nice at all. At all not nice at all.

[Ian]

At all.

[Shoddy]

Yeah, that's. That hype is part of it too. Like we talk about the, the, obviously the, the people from private equity have the lockup period. But the hype is also something that we have to take into account too.

[Ian]

Right.

[Shoddy]

What happens when that's not the new story? Right. Are you still going to be there? Because most people who are invested are going to say, all right, I'm in the ipo, but I know this thing is going even further, so let's just keep it.

[Ian]

And Google's done a great job at. In terms of long term investing. I'm not going to say that they're as great as Nvidia's like invested in an entire ecosystem. Oh, another thing. When people keep saying, how do you know which one's going to be the next one? Listen to Jensen. Jensen has forecasted every company. That's why we tell you. Watch the keynote. He's telling you everyone, every company that is doing incredibly well. That was foreshadowing there from him.

[Shoddy]

That is, that's, that's it right there. Right? Like that's it. If you don't, if you watch what he says and watch the companies. We literally said this last, last year when we went to gtc. Who were the companies that we heard? We heard Vertif. Well, they hit an all time high. They're out of here. Right. We, we talked about Dell. Right. Core, we've ipo.

[Ian]

Yeah.

[Shoddy]

We saw all these companies. Even Super Micro it. Even though we don't. I don't trust it. It hasn't died. It hasn't died. I don't trust it. I'm not investing. It's all those companies. He talked about Micron. I took a picture of it last year when we was standing at the booth and I'm asking them questions. We saw that run. Right. This year. He talked about iron. They had a great day last week.

[Ian]

Right.

[Shoddy]

He talked about Nibius. He said he's like giving you the layout of where you should be looking. And they're not just talking about it. If you look at the Nvidia investing ecosystem. Actually I should. I'm gonna put a title on this.

[Ian]

Yeah. I mean I did a stock club. He's giving you the layout for the next.

[Shoddy]

Yeah, they're bigger than. I know. People think it's a GPU story. This is a platform. I think a shout out to Rambo. He's like this. We're not a GPU company. We're not a semiconductor company. We're a platform. And the way that they're investing, you

[Ian]

see why I would compare it to it was like an enterprise version of Apple's App store to give people.

[Shoddy]

That's great.

[Ian]

A quick analogy.

[Shoddy]

That's great. That's it. That's a great analogy.

[Ian]

Thank you brother.

[Rashad]

Okay, let's talk about Apple. So does Apple's chip deal with intel change the long term view for Apple?

[Ian]

No, contrary to popular belief. Like I haven't. I said Tim Cook was going to leave. I didn't say I'm out of Apple. So I put yes. Yeah, I'm like what am I confused about? Even even with intel story Like I just like same with Palantir. Is there value? Was there a value investing in Palantir? But as a black person or brown person, I don't know how you could invest in Palantir when especially if we lose voting rights, Palantir is going to be weaponized against us allegedly. Same with Intel. If you're anti maga, I don't know how you can be pro Intel. And the only reason you invest in intel is because Trump said we're investing in Intel. And if we're arguing in terms of scale, every company that we mentioned thus far, Nvidia, AMD, Sarabus, Anthropic, SpaceX, Micron, TSM are all better companies. So I don't care about how much is went up which if we're going to be very honest, we're fortunate enough to be able to give away thousand percent return companies and and I'm able to make a bunch of people millionaires and not need a MAGA line company. But that, that's my personal thesis. You don't have to listen to it but if I made you money, please put yes in chat so it doesn't change my stance on Apple. I think Apple is going to be continue to be dominant. I have them getting to 32994 by end of year or January. I think they'll continue on a great tear. They haven't hit that 70 mark on RSI for those of you who use RSI. So no, it hasn't changed my stance on Apple at all and by any means necessary. This is the other part of business that's not talked about. Sometimes you're forced to collaborate with people that you don't want to in order to not get your deal flow cut off. The boy went to the table a little bit too late but when he did it was a part of the agreement and I'm not mad at him, I'm not mad at him.

[Shoddy]

Yeah, I, I, I like Apple. I mean I've always liked Apple. I thought the, the timing of him leaving was very important. Again, this is another one of these, these phone calls when I'm like, sometimes I'll just have these thoughts like, oh, I, I'm starting to see this picture come together. I remember I called shot. I'm like, yo, I think Apple is about to make a move. And he's like, well why? I'm like, I don't think TikTok leaves the position unless he knows it's in,

[Ian]

in great shape, in great hands.

[Shoddy]

I think he, right, like he left it right before earnings, which is very interesting. But this, this intel deal is another, I think very strategic movement on their part. Because of what we said about TSM earlier, the fact that it has a backlog and the fact that there may be some geopolitical risk there. They are now saying, yes, we were pretty much solely reliant on TSM for manufacturing and yes, they were there to open the Arizona Fab a few months ago. I believe in January. They were part of the Ribbon Sim cup, was part of the Ribicutin. But it now gives you an alternative in the event of TSM not being able to meet demand. Right. So now I have this American company, again, American company that most people think, oh, semiconductor, what are they doing in the CPU space? But Intel's just not a semiconductor chip company.

[Ian]

Right.

[Shoddy]

They also manufacture. And so if you look at Apple saying, hey, this is a company that we're familiar with, they had a relationship in the past and we know the American government is going to make sure that this company survives and does well. Adding them on to team up with, I guess work together in a sense with tsm to, to, to meet the demand is very strategic. I think it's a smart move for them and obviously it's been a great move for intel as it's continuing to hit all time high. So shout out to everybody that invested in Intel. I do not invest intel, but shout out to everybody who won on that, like if you made money.

[Ian]

If you don't take my assessment of a company and telling truth as a slight against you, I just personally would not touch it, would not invest in it. And for those who may be like, oh well, one of 300% on my bad days in the futures market, in one day I can get 400%. I don't, I don't need until and also too, this is a forced arranged business marriage. Apple and intel had the same agreement a few years ago. And then slid off and start to make their own chips. But sometimes in business, especially if you want things to stay afloat, especially given the kind of leadership we have, you're gonna have to shake some hands and do deals with people you may not have wanted to do deals with. And once again, great job to Tim Cook for and thank you for all that you've done.

[Rashad]

Let's talk about Robin Hood, the real Robin Hood. Shout out to Vlad 10F. That's the brother we actually sat down several times, broke bread with the billionaires.

[Ian]

Sure.

[Rashad]

There's only one Robin Hood. Robin Hood wore tights. He was a ferret.

[Shoddy]

Wait. Shout out to the robin hood foundation, new york city. That's feeding population jones.

[Rashad]

And that's the guy I chose to name your company.

[Shoddy]

There we go.

[Rashad]

Black 10F in the building is, is Robin Hood a long term hoe? What's the deal?

[Shoddy]

Absolutely, absolutely. Robin Hood was added to the portfolio a few weeks back. We got some calls out to 2027 on it. If you understand anything about these Trump accounts and the, the numbers, we went over them last week, but I run them back to you. We got 6 million people that have now. Well, 6, there's 40 million children who are eligible for those accounts. They have to sign up. I think they have 6 million signups already. They're looking to get to 10 million by July 4th, which is the 250th, I guess, anniversary of the country. And Robinhood is right there at the forefront of the brokerage that is going to be, you know, housing those accounts. And so you take that type of inflow plus the amount of wealthy companies and billionaires that are looking to offset capital, right, charitable travel, donations, donations into those accounts. I mean, it's just set up in the, in the right space as a technological partner to benefit from those Trump accounts. And then I think next year they don't have to sign up. Once you're born, I think January 1, 2027, you're automatically, automatically qualified for it. You don't have to sign up for it. I think just this year you have to. And so they're in a great position. Obviously we know that the story of Bitcoin and its role inside of the metrics for Robinhood. And so that's a long term investment anyway. So why wouldn't you be there? And like I said, when I talk to young people, it is the brokerage of choice. I'll just be honest with you. I'm not going like, we can't sugarcoat it. And, and I I have one just so I can help people who use it, but it's the brokerage of choice for for definitely the next generation of investors.

[Ian]

Robin Hood Amazing company.

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[Ian]

Begin Shellac, you know over the last few months, but I've always said not only are they incredibly innovative and a founder and CEO, the ability to bounce back from critique and misstep is really important. And he's been firing on all cylinders like even the Robin Hood Gold Card. But the innovation in terms of a brokerage, I haven't seen nothing like it. For those who don't know, long term investing options and futures used to be separate and crypto used to be separate. He's found a way to put them all together and make them all incredibly innovative. Shout to my family over at Ninja Trader but even when we were at the conference and he started showing me the ladder that they were working on for futures, I'm like this tough. This is really tough. So he is similar to Elon. He is a person that you do not want to bet against long term. You short term may have a couple wins against him but long term I'm not betting against Vlad or, or Robin Hood.

[Shoddy]

Yeah. And, and the desktop model is is really good too.

[Ian]

Yeah.

[Shoddy]

Yeah. I think he's one of those CEOs. I mean obviously he's been extremely accessible for us and we've been able to pick his brain a little bit. But he's one of those CEOs that it is not stinging. Right. Like he listens to like you said, he listens to critique and he wants to make it better for the users. This is why he invites the actual users of, of of the brand to the conferences.

[Rashad]

Right?

[Shoddy]

Because he wants to show like how much they mean. Smart. He, he's, he's innovative, he's young, he's fresh, he's got brilliant ideas. Robinhood is definitely going to be in the portfolio for a while.

[Ian]

He's a one on one CEO yo. You got to give him all the credit in the world. And that's because normally in the margin in the brokerage space the margins are thin. Like even right now, Coinbase is not being talked about as much as it used to and it's been flat for a while. Yeah, Vlad is amazing. Robin Hood would be good long term.

[Rashad]

If you're holding it, shout out to Vlad. The real Vlad.

[Shoddy]

The real Vlad and the real Robin Hood.

[Rashad]

Not a knockoff.

[Ian]

The funny part.

[Rashad]

Knockoff Stock club.

[Shoddy]

Oh man. That's why you just look at the cameras to Sussn Island.

[Ian]

I got a call yesterday from. Well not just two days ago from him.

[Shoddy]

I told you I gotta. I got a call from. Well I showed you. I got the call from that company you kept mentioning. So can we just.

[Ian]

Yeah.

[Rashad]

What are your five stocks. Five stock sectors to stay away from this year.

[Ian]

I think this is a great question but I want to redirect and get you to see how I will see it. It's not about the sector per se, it's the companies in which to stay away from. But I will say for this next year, if you're not leaning solely on tech, energy and health care, you're making a mistake. Like this is the game for. And it's not my thoughts. It's where global GDP is going. There isn't much talk about consumer discretionary. Why? Because Europe, Japan, brics, Russia, China, United States are not deploying capital there, they're building. They're putting capital into infrastructure and AI not only.

[Rashad]

And consumers don't have any discretionary income that.

[Shoddy]

Well, that's. Well they, they have been spending. So like that's the interesting part. They actually there was a report. Unless you could continue Ian but just want to throw this nugget in. There's a report that you know, some of the numbers came back like quarterly numbers from China and they were saying like the war has actually helped them try new inflation from. Yeah but even in here when, when they look and this will be a big week for ppi, CPI to see because the American consumer is still spending and so now they're trying to figure out where's the money coming from. They're like oh the baby boomers, they're, you know, their 401ks have been going up during this historic run. And I'm like okay Cap, we'll see.

[Ian]

It's like just like them reports, employment reports. Like I'm talking to people and you guys are to every. People are being squeezed at every level. And unless until you get to that 30 million, 50 million dollar net worth and up, there's not much below that. There's a lot of concern though. It's a lot of compression. So and that's a great point. There's no discretionary income for the consumer. Like Costco put out a statement that people have went from beef down to poultry. Costco's normally announced that during times of recession. The interesting part, even in 22 they changed what the definition of recession was so would not land on that office. Now you can argue that administration allowed this administration to do the same in terms of job reporting. Everyone's kicking a can down. So like if you're looking at where the money and spending is going, it's going into AI is an enterprise tech venture. That's where it's going. I would focus outside of that.

[Shoddy]

And the interesting part is that the when they talk about this administration they leave out the part that that last administration built the AI infrastructure bill that now this one and this one's been benef.

[Ian]

Yeah, so and Rashad, that goes to your point you have to know the entire macro picture to know because without that investment a lot of these investments wouldn't be able to get off the ground.

[Rashad]

So.

[Shoddy]

So Micron just got a six. I'm sorry. Sorry.

[Ian]

Go

[Shoddy]

now I was going to say Micron just got a $6 billion investment from the government like last week. Right. That infrastructure bill is still paying y' all dividend.

[Rashad]

So the sectors that to stay away from are every. Is every sector except for you said

[Ian]

health care, tech, energy and healthcare.

[Shoddy]

Yeah. I think financials will have a story at some point in this year but I'm not there yet.

[Rashad]

Tech is broad ranging. Any tech industry to stay away from

[Ian]

software that isn't number one and number two, I don't want to beat upon Mark Benioff because I think he's a great CEO but there are a bunch of like duolingo Chegg. Like any non exceptional companies like we are in the playoffs of the investing super bowl. You can only invest in things that can get a bucket. So I will stay Away from Snowflake. Like if a company isn't incredibly exceptional, you cannot afford to touch it. I know from a cost basis because people will say well the stocks you recommend are expensive. I'm like, they anything of quality is going to cost more. I get, people want to get the Avis run. But I'm gonna be honest, all those people are trading, they're not investing into that long term. So yes, it can be broad ranging, but anything outside of that court because it's like you got consumer staples, industrials, communication services, you got what real estate, you got materials. They're not beating tech, energy, healthcare.

[Shoddy]

And when we, when we say communications, let's just take meta out of that. I know the ear, that's that, that's that Amazon like let's take. That's tech Tesla, that's tech.

[Ian]

Like and once again you only need four. All these conversations it's like. But this is also how I know a bunch of people are talking, they're trying to use a show for entry points to trade opposed to hold for long. This is market Monday, not trading Tuesdays. Somebody you know? No, like you're here to hold for a 10 year. Like imagine if that person, the kid who owned Churchill, his dad or grandpa sold it after year two or three. Mistake, man. Like the biggest mistake a lot of you are going to make. If I can speak honestly, I'm going to see you in six years from now and you're going to be like man, I should have listened to you in 2025, 2020, I sold, I sold my, my asset to buy a bunch of BS and liabilities for people who don't care about me. And now, and here's the truth, once you get that liability and you pay for them, the feeling of that high is going to go away in 10 days. Maybe I don't care how big the car is, how much you pay for it, in two weeks you're gonna be, I'm over this, I'm over it.

[Shoddy]

But do what you. Yeah, I'll add a little nugget real quick shouting to the software because Microsoft is getting thrown into this software piece. So let's take them out as tech. But I think another one interesting to watch. I've been watching for the past two weeks, been studying it while I've been here. Really is ServiceNow. I think it's a company you need to watch. I watched Jensen say it. So if we go off that theory of the things that Jensen's talking about, ServiceNow is something that he's been talking about over the past month or two, definitely a GTC pretty strongly about. About them being the enterprise software for AI and they've been getting beat up like I can't even find the trend on that. That moving average. But definitely one that if we're going with that theory of, hey, Jensen is saying it, I would put it on my watch list because there might be some entry points if we start seeing an uptrend to. There might be just some opportunity to.

[Ian]

Yeah, if you can get in that 67.75. If it drops there, that'd be a good generational entry point. Rashad, what were you gonna say now?

[Rashad]

I was saying next. I was gonna go to the next topic on Paul Tudor Jones. So Paul Tudor Jones, he's been making a lot of noise lately, if you haven't heard of him, legendary trader, somebody that's actually pioneered like really index investing. And he's been a champion of index investing for a long period of time. So he said that traditionally he would always tell people, just invest in SP 500 and just wait. And he said that now you run the risk if you invest in the S P400 now you run the risk of being negative for 10 years, stating that the market is at a peak level, cautious. Then he also talked about, I guess he talked about AI stocks not investing in that. And you know, he has some very interesting commentary. Like I said, he's somebody that's, you know, highly respected and has a great track record. So what's, what's your take on Paul Tudor Jones's commentary, especially the one about the. If you invest in S P right now, you, you have a chance of being negative for 10 years.

[Ian]

First I want to say, Paul, greatest futures trader in the history of mankind, the Michael Jordan of futures trading. You know, you go on YouTube and see his clip in 1987, making $111 million in a day. A bunch of days where he's crossed 2 or 3 billion. So I want to preface with that and one of my greatest inspirations when I started studying the futures market was him. If you invest in S and P now over the next 10 years, I don't think you'll be negative, but that is solely based on if you're getting in on a superior price. Truth be told, like any asset that you buy matters most on where you actually purchase it. Like this is the thing, we're having a conversation with me UMG at the dinner, right? It's the same thing in the S and P. Like if you buy it at the top or if you're just buying randomly, could I see a scenario where we. You could be flat? Yes. But I think if you're buying or if you listen to the show, I think you'll be fine. And also too, we have to preface this too. I think some of the fear that he has around investing in AI is for the amount of capital that he has. So if I, if He's putting in $25 million at a time into a company, probably not the best time. If he was starting with 2 or 5,000, that would be a different consideration. So I think the risk that he's looking to mitigate is the issue. But notice the timing of what he said, that we have a good two year run up. Which took me back to what magic is. Everyone we talk to collectively that we know individually keeps saying, you got two to three years. Yo, everyone whether you're ball player, athlete, wrestler, I don't know what's going. They're like, yo, two years, the whole business model gonna change. Vince McMahon may come. It's a whole bunch of restructuring going on. So I think that's the note people need to take is you have a two year window to build an amazing financial umbrella to weather you through what's happening there. I love Paul, so I never have anything bad to say about Paul, but I think for the amount of capital that he's placing, same with Greg now at Berkshire, I think they're waiting for a mini collapse to start putting big amounts of money into the market.

[Shoddy]

Yeah, I'm with you. I'm with you. That's a goat. So we got to just be mindful of. That's a goat.

[Ian]

Yeah.

[Shoddy]

You know what I'm saying? So we, we gotta respect, at least pay attention and take heedings to what he said, what he says, because it's validity in it. Like I said, the two to three year thing was, was definitely at the forefront of what I heard, which tells me that we have an opportunity here to really make some substantial gains. So we got to take advantage of it. Most people hear that and they've heard us say it, right? We used to say, yeah, you got three to five years. Now look, we got three, two to three years. And people are still waiting. Like, I wonder if I should invest, I wonder, I should get a brokerage account. And then you have a population of people that are, hey, I just got this investment book, Hey, I opened bros account. Hey, I made my first trade. So people are, are getting the message. But it's still in that same theme of I feel like that AI cycle is, is still prominent and is going to be prominent for the next few years. And so we got to figure out number one, who the companies are going to lead. And we can see who that the leaders are. Now we see someone that are going to IPO that might come into that conversation as well. But the reality is that at the highs, right, like we always tell people, you don't want to invest at the all time highs. You don't. And here's what else, and you mentioned it too, and I'll double down on it. You don't want to deploy large sums of capital at all time highs.

[Ian]

You can't do it.

[Shoddy]

This is, this is not the time where, hey, everything's moving. Let me throw in 20,000, 40,000, right? I'm talking to the everyday person, right? They're playing at a different level, right? When they're talking about 25, 100 million, I'm talking about the everyday person that's saying, hey, I got 20,000, I just got my tax return, I'm putting it in the market, I'm gonna, I see Sanders is running, I gotta do it. No, no, no. What goes up will come down. And when it does, right. And this is why you, you, if you watch what Berkshire has done, they have 400 billion sitting on the sideline. Well, what does your sideline look like right now, right? As you're making money, take your profits, make sure you got taxes, right? Because we don't make sure those capital gains and short terms got accounted for. But what is your reserves look like, right? So that's part of our conversations on delete. Hey, my reserves are stacking. If it pulls back, we'll be ready. We said that in 2008 as friends.

[Ian]

Happy? Yep.

[Shoddy]

So in 2020, let's do it. Oh, we'll be ready even more so this time. So we're going to continue to invest, right? We're gonna take profits, we're gonna have long term revenue, right. And we're gonna have long term games. But we also have to have that treasure chest, right, that gonna be 400 billion for some of us, maybe, hopefully prayerfully. But we got to figure out what our reserve number is because it'll come a time where we're gonna have to deploy it and the game's gonna be even more astronomical.

[Ian]

And another great lesson in this too is learn how to hit your 10 year goal inside of three. Some of you are working like you have 10 years to make something happen and the opportunity may go away. You may only have two years and figure out going chat GPT. Hey, this is my 10 year goal. Give me step by step, month by month breakdown or quarter by quarter breakdown to make this happen in three. Some of you are playing like there's an endless amount of time. These returns are not always going to be here. They're not take advantage of them now.

[Rashad]

That's a fact. Time is running out. Let's connect politics. Ditto. Shout out to JD Also forgot to mention that but oh yeah, classic that episode. I've seen Bow Wow. Bow Wow's mom actually reposted the most recent post that we did with him talking about Bow Wow and she reposted that. But you know, I think he, he had to set the record straight for a few things. Also he took to his own personal social media to kind.

[Shoddy]

Yeah, yeah, yeah, Tommy Motolo was in the comments. Yeah, they got him up out of there. They got him up, yeah.

[Rashad]

J.D.

[Shoddy]

they got him up out of there. Yeah.

[Rashad]

J.D. one of the ones.

[Ian]

Why, why do you think it was pushback? Cuz like if you, if you find the talent, make the talent, write the song, come up with the branding and he still made the millionaires. What do you think is it we just not get canceled era and everyone's just upset. Like why do you think you're so much.

[Rashad]

I mean people don't understand. I think that the A is always going to be just negative connotation especially when it comes to the music business that you know, you, you, you lean with the. Oh, this person got taken advantage of this person like, you know, and people don't have a full understanding of a creative process of actually, you know, finding somebody and writing and doing stuff and doing all of that for a person. It's like, well, they still had to perform, they got paid performance, got paid. You know, tonight they got nothing. But you know, it's, it's a, it's a different level of understanding when somebody puts the risk up. When somebody actually is the creative brain behind the situation. It's just, it's just different. So I don't think people have a full understanding because they haven't, they haven't actually experienced that. They haven't, they haven't done that.

[Ian]

And they're making it seem like. He called Crisscross last week. They weren't that far apart in age.

[Shoddy]

No, that's what I was. They were three years younger than him. I think. You know what was dope about his, that conversation. It was fun doing it obviously as music heads, but the music industry really didn't foresee a Jermaine Dupree happening, he was like, yeah, you got to think about like he's having his catalog reverted back to him and he's still making catalog and he's not like he's, I think he's in his 50s, like maybe early 50s.

[Ian]

Yeah.

[Shoddy]

So 35 years ago, like those records are starting to come back. So when that conversation of hey, I'm watching people sell the catalog, well, guess what? Before when I own a part of would have been a certain amount, but Now I own 100% of it. That, that, that ticket going to look a lot different.

[Ian]

Power of long term holding even for a lot of artists. A lot of y' all get to selling your publishing and all your rights on a before you even get in the game. But two, three years in and then you're 10 years out. Then 10 years go by quick. Yo, 10 years go by fast. Hold for the long term.

[Shoddy]

He got a revert backs after 35 years. That's, that's, that's gonna be nice.

[Ian]

And think how much money the labels have made off of it and sync rights for 30 years.

[Shoddy]

So here's a crazy part too though, right? So that means, I guess it's 1991, whatever he did 91, but next year it'll be 92 and then 93. So every year there's going to be more getting reverted back to him. So that, that, that early usher from 96, right. Like when he, when he's making my way, that's going to get reverted. Like all those, those songwriting credits are going to get reverted back, let alone if he gets to 20, 26, I mean 2006 now he's got the emancipation and Mimi. He's got 8701 confessions is in there.

[Ian]

It's like a rolling warrant.

[Shoddy]

Yeah, exactly.

[Ian]

Stacked on top of each other.

[Shoddy]

Exactly. Every year is gonna get better.

[Ian]

And for those of you who don't think that you're going to need money later, just talk to anyone who's older, who's in their 60s and 70s and just see what health care costs are and day to day costs and inflation costs are even. When I look at the car market now, I'm like, when our kids are able to, to drive and get a car, what's going to be the entry price range for a starting vehicle? Like I know when we were kids, you can get a car for five grand, ten grand. It's not gonna happen for our kids. Costs are going to go up, inflation is going to go up. You have to hold for the long term, but do what you want to do.

[Rashad]

And then also shot.

[Shoddy]

I got to get the car first. He gonna be the first one. Then I'm gonna just tell him, yo, can y' all carpool?

[Ian]

That's funny.

[Rashad]

Also, I forgot to mention this during blackout, but this is important too because that those clips got a lot of feedback about the life insurance with let's Rap about it podcast. Absolutely. Shout out to them. Another. Another reason to buy life insurance is to, is to not have to feel responsible for paying off debt. For sure, that's something that I wanted to. I, I failed to mention that. But that's something that, that's another reason if, if you think about life insurance. So for instance, if you have a house, right? And you have a mortgage and you or you have another house, you took out a refi a lot of times like you, you. Okay, from a, from a mathematical standpoint, you can say okay, like I want to Dave Ramsey. I want to be free and clear. Right? But let's say you have a 500000 mortgage now you got to pay $500,000. So what that does is opportunity costs. Yeah. Now you don't actually have that, but what if that 5. What would that $500,000 do in the stock market? Right. But now you, you paying a monthly. But then another way to look at it is like, okay, well, now you're passing on debt because you, you don't own the house outright free and clear. So when you die now your beneficiaries, if you, if you're worth 3 million and you have a million dollars in debt, then you're really passing down 2 million instead of 3 million. But if you have a life insurance policy to cover all debt that you owe now that kind of gives you a little bit more freedom to not necessarily have to feel burdened with paying off that debt. If you're doing something responsible with the principal while still making sure that your beneficiaries get the full amount that you're leaving them and it's not subtracted because they can use the life insurance. Life insurance is tax free. So they can use that death benefit to pay off of the debt. So if you have whatever amount of money you have to give them, that's going to go to them and it's not going to be subtracted by the outstanding debt that you have when you die.

[Ian]

That's a great point. That's a great point. Shout out to Mano too.

[Rashad]

Shout out to Mayo. The voice of reason for sure walked out.

[Ian]

He had on the fight for Vendetta hoodie. I say not bad.

[Rashad]

He actually, he actually got praised in that clip. Like he was the one that actually, like I said, he's actually the most, he spoke the most responsible when it comes to that topic. But that's another thing that people should be aware of because like I said, if you have a lot of debt, Dave Ramsey says pay off your debt. And I know that that's the strategy. And it's like, look, there's one way to look at it from a retirement standpoint. Like you want to minimize your, your monthly expenses for sure. And that ops and that for sure, paying off debt is beneficial because by paying off the debt, you lower the amount of money that you have to pay out on a monthly basis. Another way I look at it is that the opportunity cost. So even if the 500, 000 debt is costing you 1500amonth, yeah, you use $500,000 to save $1500 a month. But what if you invested 500,000 and that 500,000 turned into 2 million and then you just pull from the 2 million and use that to pay the debt? So yeah, it's different ways, it's different ways to look at it, I guess depending on how you, what you think about it. But keep that in mind.

[Shoddy]

Another part, it's like that. Now I was gonna say it's the idea of do I pay off my house right now? Right. It, the opportunity cost. If you spend that type of capital, it could, it could weigh you another part.

[Ian]

When people are like, well, debt isn't bad. You have to realize that the more debt you have, you are the liquidity for somebody else's family. Somebody owns those companies that you are servicing their debt to. So you are either going to be an owner, an investor, or you're going to be a consumer. I get there's different ways to look at it, but I'm telling it's an amazing feeling when like the, the month comes around, you check the email, you don't have 58 bills to have to pay. And a lot of people try and find a way to cycle themselves out of debt, and a lot of them have not found a way to do so. And that's how you end up doing things with your character and your business that you shouldn't be doing because you have to end up paying off something because you weren't financially disciplined with the money.

[Rashad]

So, so are. So if somebody asks you, let's say they work 4 million, they have $4 million liquid and they have $1 million in debt. Like not, not credit card debt because you, you should always pay off credit card debt but like mortgage, mortgage debt or even student loan debt. Something that has an end date at some point in time.

[Ian]

Yeah.

[Rashad]

Would you advise, would you advise them to take 1 million out of that 4 million to pay off the debt or would you advise them to keep the 4 million invested and just pay off monthly?

[Ian]

I will have them have the 4 million invested into the market to get higher returns and not pay the monthly, but knock out chunks at a time. So like for me, I've been debt free since 2019. I would take large chunks like because pay a month to month, you're going to end up paying more in a premium anyway. So avoid the car, avoid the, whatever other luxury spending you're going to do to get that to zero. I can only say what I've done personally, but also too, when that debt is at zero, it allows you to be a lot more selective in the deals that you, you pick up as well. So I'll keep the money deployed into the market for sure, but find ways to add 20,000, 50,000 at a time to knock that debt down to get it to zero. And truth be told, it's a free and feeling. Everybody I know who carries a lot of that debt, especially if they are a debt advocate online, when they get that paid off, they almost have a celebration party. It's not, it's not a good feeling. So everyone can do what you want to do.

[Rashad]

Because I know is it not a good feeling if it's not manageable.

[Ian]

For me personally or for them? I'm just talking about the people that we know who just, just in general

[Rashad]

because I feel like a lot of times people, most people, that that debt is, is a burden to them and it's causing them financial distress. But there's also people that have hundreds of millions of dollars and that's not even thinking about it. The US Government, I mean there's companies. Yeah.

[Ian]

But we can't use them as an

[Rashad]

example because I'm just saying.

[Ian]

Yeah.

[Rashad]

There's some people that I. Let's say you have 10,000.

[Ian]

There's a debt to revenue ratio, debt

[Rashad]

to revenue ratio, asset ratio. That's the $10,000 a month. Right. That's, that's a lot of money. It's. If you're making $15,000 a month, if you're making a hundred thousand dollars a month, it doesn't impact you the same.

[Ian]

Yeah, no.

[Rashad]

You don't feel it. It's not, it's not. You might not hurt you. You're not even thinking. You're not really even thinking about it.

[Ian]

The ratio and also too it's a great conversation. How long are those revenue streams viable? That's the thing I love about the market market. When people are like well how do you know if this company is going to go out of business? If Vanguard goes out of business, the middle of America is going to collapse literally. So a lot of people amass all of this debt and hope that the business keeps. We saw it in Covid. People started doing numbers in Covid. They stacked up the debt and then all of a sudden the viability of the business went away in two or three years. We're in a fortunate position though that the, the instruments that we're invested in, they are tied to the viability of America. We don't have to worry about them going under. So that makes the revenue source makes a lot of sense and matters a lot as well.

[Shoddy]

I was saying that their personal future guidance was a little shaky.

[Ian]

Yep. At best.

[Shoddy]

Right. Even if you look at it. Exactly. If you, if you look at yourself as a corporation. Right. Then you should start to see like where your future earnings is going to come from.

[Ian]

Right.

[Shoddy]

Most people are thinking like how am I going to make money next? This week? Next week. Well, at that lifestyle. Right. If you're making a hundred thousand dollars a month which is like very. I mean that's a small percentage of people. How sustainable is that? Is that something that. That can be replicated for the next five to ten years?

[Ian]

Yeah.

[Shoddy]

Right. That's the future. That's forward guidance.

[Rashad]

It depends on where your a hundred thousand is coming from.

[Ian]

It's coming from too.

[Shoddy]

Yeah.

[Ian]

Yeah. Rashad, let's take you. Let's say you have mortgage for the house. Right. I also don't see you being like I'm going to go buy a one of one Alpha Romeo for 700 that like your spending is intact. That matters a lot. And a lot of times people give me pushback on this part and it's like you're buying all of the stuff to make up for the non healed version of you that wasn't lit anyway. You're not gonna be lit with the Lambo anyway. Now you got the Lambo. Nope. Just. And on top of that revenue source is drawing up up so.

[Rashad]

So just for. So. All right. So for people on traditional metrics, DTI debt to income ratio. That's what they use when, even when you get a mortgage.

[Ian]

Yeah.

[Rashad]

Under 20 is looked at as elite, very strong, under 20. So once again, if you're making $10,000 a month, if you have less than $2,000 a month in debt, that's looked at as very, it's amazing. Very elite. Under 36% is excellent. 37 to 43% is acceptable for many mortgages. Above 43 starts to become risky for lenders. Above 50 is usually a red flag.

[Ian]

I'll put you in a subprime paper. Two points on the front, three on the back.

[Shoddy]

Exactly. They're looking at it like, how can, are they going to be able to afford this over the course or the, the term of this, this loan? Right. Whether it's 15 years or 30 years, how is that going to be sustainable?

[Rashad]

So for. All right, so, so 20 would be a goal for people. I was, I would say, ideally, if you make $10,000 a month, try to keep your debt payment under $2,000 a month. If you're making 100,000, if you're making $100,000 a month, try to keep your debt payments to under $20,000 a month. That's reasonable. That's reasonable.

[Ian]

Now if you want to be extreme, tune in the blackout and I'll tell you,

[Shoddy]

live well below your means.

[Ian]

Live well below. It makes a huge difference. And that's why you're working. Great moment.

[Shoddy]

I was saying that. That's why, like, especially when you're going to get a mortgage, right. It feels like it's the most ridiculous process. Like, it almost feels like you got to give your blood type because they want to see your financial history to the point where it's like, all right, let's, let's see your W tools. Or if you're an entrepreneur, let's, let's figure out how we're going to supplement this income. Do you have brokerage accounts? Do you have. They want all these things because at the end of it, they want to know how are you paying this back over the term of this loan?

[Rashad]

And that's why mathematically, some people say buying a home is not a good investment.

[Ian]

It depends on the price and what you buy.

[Shoddy]

Yeah.

[Rashad]

But even, no matter what price you buy it at, you still using a large chunk of money and you still going in debt. So it's you two ways happening. You using, let's say the home, you got to put $200,000 down for the home, right? 20, say it's a million dollar home. 20%, you put in $200,000 down. Okay. You put $200,000 down. Now that's going. Opportunity cost Then you're paying a mortgage of $4,000 a month, right? Easily on top of that. Whereas if you just rented an apartment, you have that $200,000 invested in the stock market that's grown over the course of time. You're not going to get the $2,000 back or 4,000 or 5,000, whatever. Done correctly, you could take tax, tax benefits from it and, but you have the lump sum of money that's actually growing in a, in a relative, in an investment that's relatively stronger most of the time than real estate.

[Shoddy]

Or, or you could have the asset, the market, you could take revenue from that, right? Let's say it was an option that went over 300,000 or 400,000. You can still have those long term shares and the asset can actually pay

[Ian]

for the home and chunk.

[Shoddy]

Right? And you still have, you still have those shares that are still appreciated. So like you still haven't.

[Rashad]

You still take a chunk out. Or.

[Shoddy]

Yeah, true.

[Rashad]

Or, or, or you could, you could turn your portfolio into an annuity and just have it pay you a certain amount of money every single month. To pay your rent. Yeah, to pay your rent.

[Shoddy]

That's the goal. Or

[Rashad]

that money down for the mortgage though. You still got to put money down for the mortgage.

[Shoddy]

But we're also leaving out. Is that when you own that home or you right. That property is going to appreciate over time as well.

[Rashad]

It's added expenses that happen over the course of time too. Property tax for sure.

[Ian]

But even in that case, let's talk just us, right? Even I'll tell a personal story like so when I got my first place in why I used to shoot at and when we first started to show right. Talk about lack of security. The landlord found the show. She was like why you been playing broke? I'm only charging you $1700 a month and you're making people all this money. And I know you hide your cards at the office. You're not fooling me. All of a sudden either you can pay triple or I'm gonna sell the units. And I'm like oh, I'm not mad at you. So the, the other part too is the, the safety and stability of not being taxed for doing well. And it even for ordinary person landlords are going to increase the rents every year, every two or three years, just depending on the value and the growth of that said city. I, I know people who lived in Austin Pre Tech, everyone moving there. They don't even live in the same area of Austin they used to live in before all The Tech Bros. Came there. So the other part is you may not have stability or the price of the rent may go up so much that it makes more sense to get the house to offset whatever you can.

[Shoddy]

The, the 829 square foot apartment that I lived in in 2028, 2017 was 2600amonth. Right. Nine years ago, that same apartment is 4, 200amonth.

[Ian]

Easily, bro.

[Shoddy]

Like, not even easily. That's the price. Like, that's like. And the apartment hasn't grown in size. It's still 829 square feet, two bedroom.

[Ian]

I told you I went to that two bedroom in New York. This was $11,000 a month for 900 square feet. Right.

[Shoddy]

My mortgage at the house, my. So like the house. We, we started everything that's under that also.

[Rashad]

Okay, standpoint of how long do you plan on staying in the house too? That's another important factor to factor in here. So major king, for me personally, I think you probably should have one or two homes.

[Ian]

Yeah, yeah.

[Rashad]

One home. Okay, let's say one home. I'm in New York, so that's, you know, I'm here. The base might, you know, potentially move to Florida at some point in time, but at some point in time. Now I'm gonna just start to just travel around the world at some point in time. I don't necessarily want to. Want to live in Bali for, for the rest of my life, but I might want to live there for a year.

[Shoddy]

Perhaps Nairobi.

[Ian]

Perhaps 72 year lease.

[Rashad]

Exactly, exactly.

[Ian]

Yeah.

[Rashad]

A cry that's. That's. You got to have a permanent residence there.

[Ian]

But yeah.

[Rashad]

Nairobi, Kenya. Nairobi, Kenya and Bali and all of these different places. You know, I might just want to go to Panama for six months, try it out.

[Ian]

Amazing.

[Shoddy]

I'm looking out here, I'm like, man, this is, this is some paradise stuff. Could I be here for a month? I mean, I could do everything from here. Choices. Choices.

[Ian]

Yep. We gotta have a home base though. Yeah.

[Rashad]

Okay. Gotta have a home base. All right. Okay. Ladies and gentlemen, do we have more to cover?

[Ian]

I think we have a well rounded, you know, hold for the long term generational wealth. Shout out to the kid who proud of his grandpa to own Churchill Downs.

[Rashad]

Yeah, yeah. And that's another thing.

[Shoddy]

AMD or no?

[Rashad]

Well, we spoke about it. We could talk about AMD again. But we. The generational wealth thing is very important because like I said that video that I put up and they asked the people, what's your biggest financial flexibility? And everybody in the video said for, except for One person, something that they themselves did not do, something that their grandfather did or their father did or their great great grandfather did. So that's important to kind of keep that, keep that in mind as far as when investing, thinking about the legacy long term perspective. Long term hold for sure. Right. Like that's important to make sure that you, you have that. But that goes back to my theory of never selling your assets because you only have long term generational wealth when you don't sell.

[Ian]

Yep.

[Rashad]

And you only don't sell when you avoid large purchases. And one of the biggest large purchases is a house. So it all comes, it all ties

[Ian]

back in the house can be okay, the same house that you have now and sick. In 10 years it'll probably be 3x

[Shoddy]

easy.

[Rashad]

Potentially, potentially not. Who knows? You know, they redlined it too, because it's in the school district. That's another thing. When you look at school districts, that plays a major part. And unfortunately, if you live in a black neighborhood, the school districts most of the time are not great. And that lowers the appreciation value on, on homes. So in America they gonna. All right, so now, so now, so now what do you do? Do you move to a white neighborhood and become the only black person in a white neighborhood? That's weird. And now, and now you gotta get, you know, looked at and culturally it's weird. Police is getting called on you every time you, you have a cookout. You stay in a black neighborhood, you get the best, you get the best home in a decent neighborhood doesn't appreciate the same because the school district is not great. But at least you kept it real with, you know, with the bros. No,

[Shoddy]

no, don't do that, man. Don't do that. Look, no, no, no, no, no, no. Our school district produced three gentlemen that met each other in that school district and created this.

[Rashad]

No, no. What I'm just saying is just a historical fact. The school district is not a great school district as far as the metric rating.

[Shoddy]

No.

[Rashad]

So when you're buying your home, people that's watching, if you don't know that, that's something that you should be aware of. One of the greatest indicators of if your home is going to increase in value is the school ranking that your, your, your home is in. A lot of people might not know that, especially if you don't have kids you don't, you know, you don't care about.

[Shoddy]

Yeah, yeah, yeah, yeah.

[Rashad]

You should think about that.

[Shoddy]

I think our issue specifically in like the area that we are is that the school district is decent. I Think the issue is that the amount of taxes we pay into the school district is comparable to school district to districts that have tier one A what whatever highest ranking you can have like in the state and definitely in the country because we're surrounded by some really good school districts. It's just the amount of taxes that the return on what we're paying is, is kind of, it's very questionable. Yeah,

[Rashad]

Try the day Shane, he just got a thousand percent on his AMD call. So what's the final word for amd? AMD has been up, up a lot. A lot of people made money investing in amd. Once again, Dave Shands perfect example. So another green jacket for the people for sure. So for the people that are looking at amd has the boat sailed? I saw one analyst raised the guidance higher. Has the boat sailed? And, and the reason why we even was told by AMD early last year is that we, we had some information from somebody that was in the space and they were saying that AMD was going to be needed as far as Nvidia wasn't even going to be able to service every single person so they.

[Shoddy]

Can I get an old story?

[Rashad]

Yeah, go ahead.

[Shoddy]

So we did the the and shout out to all the earners. I did the class on EYLU and put the AMD call in there and then we took a visit to a corporate situation and spoke to an exec there and we had a conversation about GPUs. It's one of my trusted sources in the world of AI. Anytime I have an idea or I'm looking into something deep research I usually just touch base to see and threw AMD out there and it came back like hey this is going to be definitely something that we're definitely going to use. And so I would imagine our competitors are going to use. And so that led into the. All right, well let's do it. Which led into the conversation with Dave Shands and putting them in that call again. Shout out to him, shout out to everybody. I've seen a bunch of people, it's crazy right? Like I did that call and this is why I love it is that I didn't even get a thousand percent yet. Like I'm teetering, I'm like a 9 something but I'm watching a bunch of people who did that call that have made a thousand percent. I know, I know you were one of them Dave. I think my brother's one of them as well. A lot of people have made that call and so the idea is has that story changed no, the premise is still the same, right? While everybody was talking gpu, gpu, gpu, which is. And of course Nvidia is the king of the gpu and Broadcom has something to say about that. And then Google had the tpu. I said, look, being number two is okay in some cases. In this case, right, they would. Nvidia is a clear number one. But AMD is fighting for number two. That 15%, which has actually gotten lower to about 7 to 10% space, is still there. But where they can be number one is the area that Nvidia left. And Ian, you know this from, from being in Nvidia very early and understanding that company, like they were making CPUs and they kind of left it because they saw the potential for GPUs and that left a space for somebody to take it. And I say that because AMD clearly said, hey, we're going to ramp up our CPU outage and we're going to go after that market. And they did. Lisa sue, the CEO, went there. Intel was a competitor, I mean, just blew past it, became the number one. This is before the government got involved, just for context. And they became the leader in it. And that CPU story has stuck with them to the point where now where she was talking about her future guidance and how CPU was going to be the story. If we understand that the engine of this revolution, right, that GPU is there. Think of the CPU as a steering wheel, right? If this is a car, if this is a plane, the CPU is a steering wheel, right? And it used to be you needed 8 CPUs for every GPU. Well, Nvidia has been even making more technological advances, but AMD has done the same and they've got it down to one to one, right? And so that demand, it's like, wait, how did they do that? How did they get so technologically advanced? If, if the AI demand for GPUs is getting increasing, then the CPU demand is going to increase as well. And who's at the forefront of it? Amd, which is why you saw them run and hit all time highs, but you also saw intel run hit because they're still in that market. And so the run is not over. The demand is not over. I told you. If we look at what TSM says now will give us a clear indication for what AMD is going to do and what intel potentially will continue to do. In fact, we saw Qualcomm, a company we talked about last week that has kind of been sitting sideways, has, has now starting to move because they make those the semiconductors inside of phones. So AMD is, is primed. We've been sitting in those calls for a while. I'm happy that everybody, you know, got their green jacket and jean jackets and I guess we got to start coming up with some new colors for some of these percentages that people are in because it's an amazing time. That's why I said it's unprecedented. So we gotta take advantage.

[Ian]

Social media team clipped us up. You can start here. Thank you. You talk about power of long term hole. You know, sometimes you got a guide about how to. You know what I mean? Talking about power of long term hole is AMD's run close to over. No end of year target for me is 521 97, $521.97. And then also too one of the biggest seekers. I've never talked about that. I will a lot more probably next year is discovering what a multi decade target is. Too many people focus on a multi decade target. I mean on a one year target instead of multi. I've been in AMD since 11 to equity. I'm not exiting personally until it gets to 713.75.

[Rashad]

So what at what?

[Ian]

13.75. So. And will I sell the entire position? No. And the last time I've hedged some money off of AMD was 2018. So the majority of the investments that I've had in them shout out to those you and Red Panda that have been a part of the journey talked about on market Mondays. Once again, social media team clips us up before we even had the first show. So I know some of y' all want to rewrite history, but the way I get to writing up these millions for others, you can't write. I make millionaires, not memes. My boy. Love you, dude.

[Shoddy]

Some things your money can't buy.

[Ian]

For real, like your freedom, respectfully and I got love for you. But if we we talking net worth, we talking teams. We talking teams. I ain't seen you in a sport coat yet. Fabulous, boy. Shout out to Fab. We can wrap up, y' all can clip out y history. I hear you.

[Shoddy]

That's fine, that's fine.

[Rashad]

All right, y', all, it's been real tap in. Do remember choice options class is Thursday, 7 o', clock, eyuniversity.com we got Blackout on Wednesday at 9pm we got Goldie coming on.

[Ian]

It's gonna be a great one. I'll be fresh off the beach too. I'm gonna tell y', all, I'm gonna Be on pure BS Wednesday. So that's gonna. That's gonna be interesting conversation, especially going to the summertime. How to bag a baddie at Invest Fest, how, you know, if the relationship right for you is a relationship, a liability and not an asset, how many you should have on the roster wins them. Going crazy.

[Shoddy]

All the things. All the things.

[Ian]

Diversity and assets.

[Rashad]

Lee Jenkins, 12 o' clock on Thursday. Financial planning, wealth accumulation, wealth management. Wealth management. Conversation. Vitally important. And shout out to Pinky. She's been. She been dropping her. Her episodes every 12 at 12 o' clock or every Monday. And there's been something that it's helped a lot of people. You know, a lot of people have been learning a lot from that. So on social media, it's on our YouTube channel as well. And it's something that I think is very helpful when it comes to, you know, teaching financial literacy and. And a lot of topics that people are not aware of when it comes to key man insurance and trust and, you know, the different bankruptcy codes. And she's doing it in a very digestible, relatable manner. So salute to Pinky.

[Ian]

Before we leave, can we talk about the media barbell strategy to do, like, an educational piece of content, let's say Real Housewives of Atlanta. And the benefit that it has to do both, like us Market Mondays and Blackout, they look like they shouldn't be the same. Can you talk about the power of that? Because, like, I'm even liking the run, seeing her on tv. And it's a different viewpoint, but can you tell how it. It brings in more revenue and more brand equity doing both.

[Rashad]

I mean, it's Joe Kennedy. Like, you know, if you live, you know, if you know the story of Joe Kennedy, you know, he made. He made his money from bootlegging, and. And then he became bootlegging, and then he became a. A business mogul and he sent his sons into politics because he realized that he was, you know, dealing with politicians. Let's just say that. But he's like, it's better to actually have the inside of the politician world, right? So it's like, yo, y' all go, do we got business already. Y' all go do that. And now we can. Now we can conquer multiple different things. So same strategy. You gotta find new audiences. You have to find new. New verticals. So it's like, okay, you know, we, you know, doing the education thing. Pinky, she know, restaurant tour, then, you know, becomes a. A motivational speaker, author. All right, let's go into the reality TV world. Let's conquer new audiences, let's get new territory, new terrain and it's all going to come back to the, to the ecosystem. So that's something that I think a lot. That's a business strategy. You know, when you're branding, it's not just one particular thing. And then ideally if you have multiple different people, then you should have different people kind of branching and doing different things. Like, you know, that's something that I think would be vitally important to any business. Right. Of like okay, send this person into the world of fashion, send this person into the world of sports, send this person into the world of, you know, personal banking, like whatever and like now

[Ian]

conglomerate.

[Rashad]

Exactly, exactly. So shout out to her. She's been able to do that not just with her, but her husband as well, flawlessly and you know, everything that he's been able to accomplish and they, they're conquering different, different, different categories and they're becoming, you know, names in, in places that they might not have been known in before. So that's, that's important. You know, it's always going to be critics and people that have negative things to say. But you know, you gotta, you gotta focus on taking new ground by any

[Shoddy]

means necessary and they doing it together, which is, you know, they talk about the, the opportunity that she got to watch him thrive and he got to watch her thrive. And I mean they all coming back to the same household, which is incredible. Shout out to the.

[Ian]

Yeah. If you know how to pull it off, man, I'm telling you, the, that's the thing people have to study. He may not be the most favorable to our community, but how Trump did it with Apprentice and all of his appearances on Fox Business, how he like study how people use media even if it's a non target market. Because also too there's a power in it. Like even for me personally, I'll go to a non target market and do an interview to rile them up and also get more support from my primary target market. But you still get listeners across both and be able to funnel them in. It's a delicate process. But just a lot of times too people will pigeonhole you into being one thing because they're afraid of you being a multi hyphenate dominant entrepreneur.

[Rashad]

Yeah, I mean it's even on, on that level. Like even. That's the, that's really the Che Guevara Castro thing, right? When they, when they, when they took over Cuba, it didn't, they didn't, they didn't need two leaders in Cuba, it didn't. It didn't work out. But the idea was to start the revolution all over. So that's why Fidel Castro sent Sheik Rivera to Bolivia and Colombia and all of these other Central American countries. Like, we both don't need to do the same thing. That's a waste.

[Ian]

Yeah.

[Rashad]

And we don't need to compete with each other either.

[Ian]

Hello. Hello. Go study every market to be able to get it. And you. And the crazy part, you only got two years. But the best part is you have technology to help your learning curve be shortened down to two days. Yeah. For real. If you just go study every. Every business magnate, like, even if you watch, like, the business wars or how America was made, like you said, a lot of the foundational businesses that are publicly traded, they started in some dark corners of society. Anheuser Busch and Rice Krispie. And there were wars over who had market share. Like you said, taking over a territory that was a real thing. They would go to the Southeast or Middle East, Midwest and get into wars to own these eight states for a product. Go study. You got two years. You got two years.

[Rashad]

So, Thomas running out, yo. For real, though.

[Ian]

Let's connect.

[Rashad]

Politics. Ditto. All right, man. We'll tap in with you. Blackout. We got a lot to talk about. Let's get it.

[Shoddy]

Wait a minute. Peace. See you on Thursday.

[Ian]

Peace.

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