← Rich Habits Podcast
Loading summary
Transcript44 lines
- [00:00]
Austin Hankwitz
Study and play come together on a Windows 11 PC and for a limited time, college students get the best of both worlds. Get the Unreal College Deal everything you need to study and play with select Windows 11 PCs. Eligible students get a year of Microsoft 365 Premium and a year of Xbox Game Pass ultimate with a custom color Xbox wireless controller. Learn more@windows.com studentoffer while supplies last ends June 30th terms at aka mscollegepc
- [00:32]
Commercial Announcer
ready to soundtrack your summer with Red Bull Summer All Day Play? You choose a playlist that fits your summer vibe the best. Are you a festival fanatic, a deep end dj, a road dog, or a trail mixer? Just add a song to your chosen playlist and put your summer on track. Red Bull Summer All Day Play Red Bull gives you wings. Visit red bull.com brightsummer ahead to learn more. See you this summer.
- [00:57]
Austin Hankwitz
What's up everyone and welcome back to the Rich Habits Radar, our Friday episode of the Rich Habits podcast, where every Friday morning we're coming at you with the biggest headlines impacting you and your money. This episode is brought to you by vcx, the public ticker for private tech. My name is Austin Hankwitz. I'm joined by my co host Robert Croak, and the three things sitting at the top of our Rich Habits Radar this week include job openings surging during the month of April, anthropic filing their S1 confidentially so that they can go public later this year, and the Fed's updated view on inflation and it's not good. Be sure to stick around to the end where we talk about pattern day trading and the cool new rules around it. Well, is day trading cool? I don't know. We'll talk about it though.
- [01:46]
Robert Croak
Robert, I'm so excited about this episode. So let's get into it. Our first story today is Job openings surged to 7.6 million jobs. On Tuesday, the Bureau of Labor Statistics released the Jolts report showing job openings surged to 7.6 million jobs in April, up from 6.9 million in March. That's the biggest monthly jump in nearly two years and blew past the 6.9 million consensus expectation. It's also the highest reading since mid 2024, which looks good to me.
- [02:18]
Austin Hankwitz
So that was on Tuesday. Now on Wednesday, ADP's national employment report showed private sector employment increased by 122,000 jobs in the month of May. So that April that Robert talked about, now we just heard about the month of May, which also beat those expectations. Annual Pay was up 4.4% year over year, small businesses led the hiring with 67,000 new positions, while large corporations only added 40,000 and midsize firms contributed about 17,000. Now, ADP's chief economist had said, and I quote, the labor market continues to show sustained momentum going into the summer hiring season. Love to see it.
- [03:02]
Robert Croak
Robert and here's the context that makes this complicated. In April, the jobs report inflation outstripped wage growth for the first time in three years. So when your paycheck grows at 4.4% but inflation is running at 3.8%, your real purchasing power is barely positive. And for lower income workers whose basket of goods is more energy intensive, real wages are likely negative. Marketplace noted this week that the gap between wage growth and inflation is the tightest it's been since the Iran conflict began.
- [03:34]
Austin Hankwitz
Now, Friday morning's May non farm payrolls report we're filming this on Thursday is expected to show about 95,000 jobs added, a deceleration from April's 115,000 jobs. Unemployment rate is expected to hang out around 4.3%. So definitely keep an eye on that as you watch this episode. Friday, June 5th. If the number comes in significantly above those expectations, it strengthens the case for a potential rate hike at the 6-16-17 FOMC meeting. If it's weak, it gives WARSH a little bit more cover to keep rates steady for longer.
- [04:14]
Robert Croak
Austin, this is a lot to digest share with our listeners. What does this mean for you and your money?
- [04:20]
Austin Hankwitz
The labor market data is strong. Jolts are surging. ADP numbers came in higher than expected. Hiring is broadening. Not just, you know, corporations and mid, but now small business hiring. Like that's good to see, that's good for the economy. But it creates a massive problem for the Federal Reserve, which is a theme we've seen ongoing all of 2026 because strong employment numbers plus accelerating inflation equals no rate cuts in a normal cycle. That's cool. We, we want to see that, right? Inflation can tick a little bit higher, but if, you know, hiring continues to outpace that and real wage growth trends up into the right, that's fine. But we're in a very weird and different environment in the current environment with the pce, the Personal Consumption Expenditures Index, that inflation gauge that the Fed really likes to keep an eye on, hanging out at 3.8%. The Beige Book, something we'll talk a little bit more about as the episode goes on, showing inflation is spreading outside of energy into other places. Right? That's not a recipe for success. That's a Recipe for higher interest rates than the consumer wants.
- [05:32]
Robert Croak
Yeah, Austin in a strong labor market means the recession everyone's been predicting keeps getting pushed further out. And for everyone to remember, consumer spending, which is about 70% of GDP, has a floor as long as people are employed. That's why these job numbers are so important. The risk isn't a jobs collapse. It's a slow erosion of real purchasing power that gradually weighs on consumer confidence and that discretionary spending.
- [05:58]
Austin Hankwitz
So, Robert, we're definitely going to be encouraging our friends listening here to tune in every single week because we're going to keep you abreast on what the labor market's doing, the unemployment rate, the openings. Like, y' all have to know this stuff. And here on the show, we'll absolutely continue to talk about it. Now, let's jump into our second story, which is Anthropic filing to go public. Little IPO action. So on Monday, Anthropic, which we all know is the AI company behind Claude and all the fun stuff Claude has turned into with Claude code and the design and all the cool things they've built, they submitted their draft for the S1 to the SEC to eventually go public with an IPO. The announcement came from a blog post that the company had shared, and it immediately set the tech world buzzing because Anthropic is valued at about $1 trillion right now in the private markets. But then if you go to Poly Market, one of these, you know, online prediction market websites, we like to look to, not to make our own bets, but to understand what other people think. Right now on Poly, it shows that by the end of 2027, the market is expecting anthropic to be worth over $1.8 trillion. So you really can now put in perspective when Anthropic puts in their S1 filing here to go public, just how big of a deal, just how big of a company that's going to become? And it's top of mind for me right now, Robert.
- [07:22]
Robert Croak
Yeah, it's crazy thinking as long as I've been doing this, that we're actually talking in tees and trillions now for these IPOs, because, you know, back in the day, even with NV, Palantir and Meta, thinking of the difference now of these IPOs is just crazy for me to fathom these numbers. And so Anthropic filed just weeks after SpaceX filed its S1. And both are racing OpenAI, which has also been preparing for their public offering as well. And the Guardian noted that the financial stakes of the AI race rise as Elon Musk's SpaceX, OpenAI and Anthropic are all slated to go public this year with SpaceX is tended to go public next week. I believe June 12th or 14th. These are three of the most valuable private companies in the world, all hitting the public markets in the same six month window. So it's crazy. There's going to be a lot of movement, a lot of liquidity and a lot of people just resetting their portfolios.
- [08:19]
Austin Hankwitz
Yeah, let's talk about SpaceX for a second. I think it's really important because they just firmed up more of their terms earlier this week. They're targeting a fixed IPO price of 135 per share with a $1.77 trillion valuation. So, 135 per share, $1.77 trillion valuation. New York Times reported Wednesday that a revised prospectus now shows Elon Musk is exceptionally confident about demand for their offering, which is expected to debut to Robert's point June 12th under the ticker SPCX on the NASDAQ roadshow starts on June 8th.
- [08:57]
Robert Croak
The combined capital raise from SpaceX, that's 75 billion plus whatever anthropic targets, plus the OpenAI offering, we're looking at potentially 100 to 150 billion in new IPO supply hitting the market in Q3 and Q4. So to think about that, that's an enormous amount of capital that needs to flow from somewhere. Add Alphabet's 80 billion stock sale and you're approaching $250 billion in new equity supply this year alone, just in the second half of the year.
- [09:28]
Austin Hankwitz
I think it's so important for us to really walk through this slowly for our audience. 250 billion has to come from somewhere. Obviously the Google, you know, we'll talk about that. That's already been sort of, you know, figured out where some of that's going to come from. But you know, SpaceX, Anthropic, OpenAI, that's 100, 150, maybe even closer to 200, depending on how big Anthropic and OpenAI's, you know, offerings are going to be. So, Robert, walk us all through what this means for you and your money portfolio, all of that.
- [09:57]
Robert Croak
Yeah, this IPO wave is both an opportunity and a risk. The opportunity is obvious. You get a chance to own Anthropic, SpaceX and potentially OpenAI as public companies for the first time. These are genuinely transformative businesses. So everyone is super excited. But the risk is Those supply dynamics, $250 billion in new equity supply means existing stocks face competition for capital. Think Nvidia, Micron, intel, all of these, because when SpaceX starts trading on June 12, some investors will sell other holdings to buy in. That's that divergence of moving capital from one winner to hopefully another. So when anthropic, eventually prices, even more capital will need to rotate.
- [10:45]
Austin Hankwitz
I think that's so important for people to understand. You know, this money doesn't just come out of thin air. People have to say, oh, I need to sell my micron. That's up 250%, which by the way, hope you all been buying Micron because we've been talking about it for three years now. Shout out. Robert but it's like, you know, I've got this name that's up 200% in my portfolio. Yeah. Maybe I sell it, take some profits and rotate that capital into an anthropic or an open air ipo. And, and that's going to cause some turbulence. That's going to cause a little bit of volatility, I would imagine. And for individual investors, right? Be patient, be patient here. IPO euphoria almost always fades within the first few weeks. Robert I had shared Inside the Rich Habits Network. Let me see if I can find it here live as we, as we record this episode. Yep, here, here it is here. So inside the Rich Habits Network. And if you're watching this on YouTube or maybe on Spotify, whatever, just look at your screen for a second. This illustrates the hottest IPOs throughout the last, I don't know, call it 10, 15 years, what their volatility was on a one week, one month, three month, six month and 12 month basis. Like what that return was, but. And you go like, okay, well, 12 month return, the average return is 14%. That sounds pretty good to me. True. But the average max drawdown to get to that 14% is a 55% max drawdown. Median is 54%. Right. So like IPO day, cut it in half because that's the, the max drawdown to experience and what to expect when it comes to some of these hot IPOs. We saw the same thing with Facebook. I remember their max drawdown here was 54%. Massive, cool, fun, sexy name. Everyone wanted it and I think it had traded up in the first, call it couple weeks. But then by the time month three and month four had rolled around, stock was down 30, 40, 50%. Everyone thought it was a bust. What's going on? It took 14 months for Facebook to come back around. Rock and roll. Ron Santella talked about that on the show, I think it was last week or the week before. Shout out to the HEDG ETF and equable shares. You know, Ron's a great guy to have on the show and help us, you know, familiarize ourselves so we can look at, we can see this type of stuff and make our own decisions. Now, SpaceX, at 135 a share, that $1.77 trillion, I would argue that's probably not a bargain, right? It's, it's probably a justified premium valuation that prices in. You know, how big can starlink get? How big can their launch business get? Amazon, I mean, obviously Blue Origin, they just had a very bad rocket explosion the other week. Amazon's not going to be able to use Blue Origin. Amazon's launching a lot of these low Earth or that, you know, satellites, they're going to have to pay more to SpaceX, they've got defense contracts, they've got the XAI stuff going on and those subscribers. So, like you got to kind of underwrite this like a venture capital investment, to be quite honest with you. It's going to be very interesting to see how SpaceX trades in, you know, going into the first couple earnings calls. If you are a eager investor, the biggest advice we can give you here is to take a deep breath, give it some time, add it to the watch list, keep an eye on it, and as the stock settles gets more predictable, then feel free to dollar cost average, assuming you have a deep conviction in the business.
- [14:05]
Robert Croak
I love this take and I appreciate everything you just said because I think it's probably the most important part about this podcast episode and I talked about this the other day. One of Benjamin Graham's famous Quotes is for IPOs is the Intelligent Investor should conclude that IPO does not only stand for initial public offering, but it also stands for it's probably overpriced ipo. And I think that's very true here because I don't see a lot of value. I've been doing this for 35 years and back in the day when I could get in on a meta ipo, when it was Facebook or some of these others, Nvidia, stuff like that, they were priced accordingly. But we have so much hype in the markets right now. A lot of times people rush out of really good positions and to get into these euphoric IPOs only to find out that their money is either going down, down, down for the first year, 18 months, or they bought at the top and may never recover. So just be careful out there. I love your take on this, Austin, and really appreciate that breakdown.
- [15:08]
Austin Hankwitz
Yeah, no, totally. And I love doing these sort of breakdowns and it's, it's really important and it actually kind of tees us up for the sponsor of today's episode, Robert
- [15:15]
Robert Croak
Support from the show comes from vcx, the public ticker for private tech. For generations, American companies have moved the world forward through their ingenuity and determination. And for generations, everyday Americans could be a part of that journey through perhaps the greatest innovation of all, the US Stock market.
- [15:32]
Austin Hankwitz
Robert it did not matter whether you were a factory worker in Detroit or a farmer in Omaha, anyone could own a piece of the great American companies. But that's now changed. Today our most innovative companies, like the ones we just talked about, are staying private rather than going public. The result is that everyday Americans are excluded from investing and getting left further and further behind, while a select few reap all of the benefits. Until now.
- [15:57]
Robert Croak
Introducing vcx, the public ticker for private tech. VCX by fundrise gives everyone the opportunity to invest in the next generation of innovation, including the companies leading the AI revolution, space exploration, defense tech and more.
- [16:12]
Austin Hankwitz
So visit getvcx.com for more information. That is, get VCX.com carefully consider the investment material before investing, including objectives, risk charges and expenses. This and other information can be found in the Fund's prospectus@getvcx.com this is a paid sponsorship. I hope you guys are really paying attention to this stuff because anthropic's not going away. They're going to be a 1, 2, 3, 4, 5 trillion dollar company growing at this pace. SpaceX obviously coming in at 2 trillion. OpenAI is going to come in at 1 trillion, I'm sure. It's just, it's unbelievable. And VCX is a really co way, in my humble opinion, at the right price to get exposure to some of these names in your own portfolio. So with that said, let's now jump to our final story, our final headline story here, Robert, which we alluded to before. The Fed's beige book showing inflation has begun to spread into about absolutely everything. Now, the Federal Reserve's beige book, which is this qualitative roundup of like economic conditions from all 12 regional Fed banks, showed that most US regions experienced higher inflation from late April to late May, with energy related costs creating spillovers into shipping, packaging, groceries and fertilizer.
- [17:31]
Robert Croak
Yeah, and it's not just gasoline anymore. The inflation is everywhere. When energy costs hit fertilizer, that feed goes up in prices. When they hit shipping and packaging that feeds into everything consumers buy. And the Beige Book noted that businesses are responding with more frequent wage adjustments and cost of living increases to manage increased facing fuel and other household cost pressures. Which is exactly the kind of wage price spiral the Fed has been trying to avoid for months now.
- [18:02]
Austin Hankwitz
Now at the same time, the economic activity picture was actually encouraging. So the Beige book described growth as modest overall with employment as steady and the AI investment boom providing a genuine tailwind to several districts. Manufacturing hit its highest level in four years. The ISM Manufacturing PMI came in at 54 for the month of May, highest since May of 2022, up from in the month of April. That's five consecutive months of expansion services. They also came in beating expectations A services. PMI had its 23rd consecutive month in expansion territory. So the economy is moving up and to the right. But unfortunately as the Beige book is telling us, so is inflation.
- [18:43]
Robert Croak
So you have an economy that's growing, but the inflation problem is getting worse, not better. PCE is at 3.8%, CPI is at 3.8% and both are running nearly double the Fed's 2% target. And now, now the Beige Book is telling you the pass through effects are broadening throughout the economy. This sets up Kevin Warsh's first FOMC meeting on June 16th and 17th as potentially the most consequential Fed decision since the rate hike cycle began. The fed funds rate has been at 3.5% to 3.75% for three consecutive meetings. The April vote was 8:4 the first time since October 1992 that four officials dissented. Bank of America has pushed its first rate cut forecast to July of 2027. And the bond market is pricing essentially zero cuts through year's end. So Austin, this seems really scary to me. What does this mean for you and your money?
- [19:41]
Austin Hankwitz
The Beige Book confirms what the data has been telling us for months now, which is the Federal Reserve is stuck, growth is fine. Right? ISM manufacturing is at this four year high, services are expanding, jolts job openings surgin to 7.6 million in April. We just talked about that. But inflation is also accelerating. It's not decelerating. Warsh inherited the worst possible setup. So here's the thing to watch. It's what Robert and I are going to watch on June 16. In June 17, does Warsh signal any willingness to hike rates or does he take a wait and see approach? His reform oriented Federal Reserve language from the swearing in ceremony suggests us he wants to break from Powell's framework. But nobody knows in which direction. And depending on what that may jobs report comes in at, the pressure for a hike could intensify. If it's weak, the case for staying put gets stronger. But either way, that 3 1/2 to 3.75 interest rate isn't going anywhere for a while. So make sure you own those quality names with real earnings. Now here's the fun part, Robert. Despite all of this, the Russell 2000 is still up 17% year to date. Date isn't that interesting.
- [20:58]
Robert Croak
Yeah, Austin markets are all over the place. We've seen a lot of all time highs happening but we've also seen a lot of negativity and we just have to really keep an eye on all of these reports because they're so important with the Fed of what's going to happen next, what's going to happen in Q3 and Q4 in these markets. So we will definitely keep an eye on this for everyone that follows along on the podcast.
- [21:20]
Austin Hankwitz
Yeah, follow along on the podcast. Share the podcast with your friends that care about the Federal Reserve and inflation and the jobs data and earnings and S1s and IPOs. Like that's what these Friday episodes are all about. They're all about the biggest headlines impacting you and your money and making sure that you understand what's going on and maybe what we're doing with our money to see how we're going to navigate some of these headlines. So Robert, every episode we have our our radar points which are essentially an opportunity for you to go get three of your favorite headlines that you think are really meaningful and fun. I get three of mine and we come and we talk about it. Show and tell style. So I'll let you start start us off here with your three radar points.
- [22:00]
Robert Croak
Well, yeah, we talked about this on the Rich Habits Network Inside the Live last week where I was talking about how people really need to pay attention to these headlines. Not just to have knee jerk reactions, but also to understand where the market sentiment is and where things are going. And we saw just the other day that Marvell surged 22.5% to a record high after Nvidia CEO Jensen Huang said the company is on pat path to $1 trillion. A bold call for a chip maker currently valued at only 234 billion. Nvidia put $2 billion into Marvell earlier this year to tighten the integration between Marvell's custom chips and Nvidia's networking gear. Marvell's forecasting its custom chip business alone will top 10 billion in revenue by fiscal 2029 as hyperscalers keep building out out AI data centers. The stock added over 45 billion in market cap in a single session. And that is a sign that the AI infrastructure trade is spreading well beyond Nvidia into the picks and shovels names designing the interconnect technologies that link thousands of processors together. So keep an eye on it. You see Trump calling out stocks, you see Nvidia, you know, Jensen Huang calling out things and you just see all of this movement. So I think these trades are alive and well, but just keep an eye on it them. My second call out and I feel we were so right on this one, Austin. And you really, really nailed it earlier this year, months and months ago. And that is Micro Strategy's $11 billion in losses on their Bitcoin strategy. Formerly, Micro Strategy is sitting on nearly 10.8 billion in unrealized losses on its Bitcoin treasury with a position down 25% year to date date after Bitcoin slid recently to around $62,600. The firm has 63.9 billion of invested capital against a current balance worth just 53 billion. And the stock is down 66% over the past year as volatility hammers the entire crypto ecosystem. And my third point today is Nvidia goes in on the AI enabled PC market. This one really shocked me. I didn't see it coming. I didn't see any warnings. And Nvidia just declared war on Intel, AMD, Qualcomm and Apple in the PC market. At Computex on Monday, Jensen Huang unveiled the RTX Spark, a superchip that pairs with a 20 core ARM CPU custom built with MediaTek on TSMC's 3 nanometer process with a 6144 core Blackwell GPU and 128 gigabytes of unified memory delivering desktop RTX 5070 level graphics performance in a laptop that was really hard for me to read. But what it means is this is a much faster chip. And Wong called it the single most important tool of humanity. And here's the thing to watch out for. Microsoft is co developing it to turn Windows into what they're calling an agentic AI os where AI agents run locally on your machine and not in a cloud. So this is huge news because Nvidia's not just resting on their laurels to take over data centers, but they want to own the entire compute stack from cloud to your laptop and everything in between. And this really reshapes the $250 billion PC market market. The same way they've reshaped the AI infrastructure market.
- [25:39]
Austin Hankwitz
That's really interesting. As someone who has OpenClaw and went out and got a, what is it, like a $600, you know, Mac mini to host my openclaw. I'm not running a local model on it because I just don't think it's strong enough. I mean, this is way stronger than what I've got here for 600 bucks. So it's really interesting to think that you could run a model locally on your laptop. And I think that's where a lot of this is going, because I think as more and more of these corporations are, especially Windows, right, But more and more of these corporations are starting to go and look and say, hey, wait a second, we want to use these AI agents for our own, you know, productivity and our processes and projects and things like that. But I'm using an AI agent and I'm doing anthropic, or if I'm using OpenAI's chat GPT, they can read and see every single thing that my company, my business is doing. I don't know if I want that compared to one of these, you know, local models. You know, you can go download some of these local models or you, you know, I've never done it, so I don't know the technical term here, but I've heard you can literally just take a Kimmy K or whatever it is, or one of these, you know, local models and get it on your phone or your laptop or your computer, whatever's going on. And it, it, it's like having the whole large language model just right there on your machine itself, not doing this communication with anthropic and subscribing to their $20 or whatever it might be, or $200. So it's really interesting that Nvidia is enabling and, and creating these types of, of machines, these computers that hopefully will have their own models running on them, maybe even just straight out of the box.
- [27:16]
Robert Croak
I love it because I think about guys like me and you and anyone else that owns companies and all of that, the efficiencies that it creates. And we hear a lot of people talking about the age of abundance as we move forward, further into AI and agentic models and all of this robotics. So I think it's important for us to just stay on top of it because I know that my companies are already, already infinitely more efficient. You've built some really cool things within your stuff through Claude and all that. So I'm really excited about it. I was just shocked because I didn't even know this was a move for Nvidia. So I probably shouldn't have been surprised. But I'm excited to see what comes out of this.
- [27:54]
Austin Hankwitz
Yeah, and I'm still telling y', all my dark horse for AI is Apple. I still think they're gonna do or have or say something that just makes it all really fun and exciting. Now Robert, before we jump to my radar points, which I'll be talking about the Pattern Day trad rule updates that we alluded to earlier, I'll be Talking about Google's $80 billion equity offering and now the recently announced New York Stock Exchange partnership with Anthropic for that Glasswing cyber security side of the equation. We got to hear from this episode sponsor Aura ETFs and the US Defense ETF trading under the ticker DUT as geopolitical tensions rise and governments all around the world continue increasing their defense spending, many investors are looking ways to gain portfolio exposure to one of the fastest growing sectors in the global economy, which is military, defense, aerospace and cyber security.
- [28:52]
Robert Croak
Yes, Austin DUT Y is designed to provide targeted exposure to companies supporting America's national defense infrastructure, including advanced military technologies, defense manufacturing, cyber security and space related defense innovation. A lot of the sectors we've been watching watching and what makes Duty different is its mission driven structure. Aura ETFs has committed to donating 10% of the ETF's revenue to charitable organizations, supporting American veterans, and aligning investor capital with support for those who have served with a minimum commitment of $150,000 during the fund's first year of operations. I think that's incredible and I really love this fund.
- [29:35]
Austin Hankwitz
For investors seeking exposure to long term growth of America's defense and national security, ecosyste Duty offers a different approach to defense investing. So to learn more about the U.S. defense ETF, visit www.usdefensetf.com. investors should carefully consider investment objectives, risks, charges and expenses before investing. For prospectus or summary prospectus containing this and other information about the fund, please call 888-824-4467 or visit usdefensectf.com Please read the prospectus or summary prospectus carefully before investing.
- [30:13]
Robert Croak
And investing involves risk. Principal loss is possible and it's distributed by foreside Fund Services LLC.
- [30:20]
Austin Hankwitz
All right, Robert, let's now jump to my three radar points. We'll never forget opening up my first brokerage account and buying AMD stock at $18 a share with it when I was in college and that was on Robinhood I didn't have that much money and I was trying to figure it out, right? And so I put this money on Robinhood. It was like 2000, 2016, 2017 is a long time ago. And I've got a hundred bucks in here buying a couple shares of AMD and I start buying and selling. I start buying and selling a little bit. And then I get this thing that flashes on my screen, Robert. It says, hey, no more buying and selling until you have $25,000 in your account because you're going to be flagged as a pattern day trader. Well, my first radar point to call out Here is After 25 years, the pattern day trading rule is officially dead. Starting today, you no longer need $25,000 in your account to make more than three day trades in a week. FINRA is completely scrapping the threshold entirely and replacing it with a real time risk monitoring system by brokers instead of these arbitrary trade counts. Robin Hood and Weeble are live immediately. Schwab is going to switch on June 8th. Interactive Brokers and E Trade are coming soon. It's a massive unlock for retail investors, especially those that are, are, you know, let's say, for example, oh, I'm really excited. I'm going to buy this. Oh, wait a second, maybe I don't want to buy this. Let me just sell this real quick. Or they sell, you know, it. Everyone mistakenly. Or like just. It's so annoying because like sometimes like, wait, I want to buy this real quick and oh, shoot, maybe I don't want to get that I made the wrong decision or like, oh, I want to sell this and oh, maybe I should buy it back. This doesn't make sense. Like, we're emotional creatures, especially when you're first getting started. And it's so cool to see that now this like, restriction is gone. Because I vividly remember getting so frustrated about trying to like buy and sell or do something in the same day and Robinhood being like, nope, can't do that because laws. And I'm like, dude, come on now, margin rules, they still apply. You need $2,000 minimum and a 25% maintenance so the guardrails aren't gone there. Just a little bit smarter for you. Let's now jump to my second story. Google's age $80 billion equity offering. Robert, this one is nuts. Alphabet just raised $80 billion in the largest equity offering in tech history. Warren Buffett's Berkshire Hathaway anchored it with a $10 billion private placement, which is remarkable considering that Buffett avoids tech historically. But Anyway, no longer running the company. So I guess it makes sense now. The deal included a $30 billion underwritten public offering that was oversubscribed and ultimately priced at 35 billion, bringing the total haul to that 80 to 85 billion range. The money is going straight into AI infrastructure. Alphabet expects 180 to $190 billion of capital expenditures this year. Six times what they spent in 2022 and two times double the size of what they spent last year. And the, and I quote, overwhelming majority of that is going to technical infrastructure to meet their CEO and what they have called the AI demand being meaningfully exceeding available supply. So that's what's so interesting, Robert. We have a company like Alphabet generating $400 billion a year in annual revenue and they still have to go and raise 80 billion just so they can meet the demand because they can't supply everything that they need. I mean you've seen the backlogs of Google Cloud, it's unbelievable. So Google is definitely treating this like a winner take all moment and I think it's really interesting. I've seen some rumors online about people saying well Google coming in for an $80 billion offering is going to take some equity away from SpaceX, some equity away from Anthropic and OpenAI and kind of being a little bit competitive around that. So I, I think that's an interesting call out and my last radar point, but certainly not least and shout out to Joe Benarok for sharing this with us is the New York Stock Exchange partners with Anthropic defined cybersecurity vulnerabilities which with that project glasswing. So Anthropic, the company behind Claude, just landed one of its biggest enterprise developments yet, the New York Stock Exchange. Ice, which operates the New York Stock Exchange plus clearinghouses, data services and mortgage technology, announced that they're deploying Anthropics Claude Mythos preview across their entire cybersecurity infrastructure as part of part of project glasswing, a recent initiative to use AI to find and fix the cybersecurity vulnerabilities before they get exploited. This is massive news because ICE runs the most critical financial infrastructure on the planet. And choosing to go with Anthropic over Google or Microsoft or OpenAI for that job is a major credibility signal for CLAUDE in these regulated industries. Also highlights that a new AI monetization lane that doesn't maybe get enough attention, not talking about chatbots or content generation or Openclaw and the APIs, whatever, but autonomous cybersecurity for mission critical systems where a single breach could disrupt global markets. Think about how much JP Morgan and Morgan Stanley and these other big financial institutions are going to say anthropic. Let me give you a little bit of money. I want access to some of that cyber security stuff you got going on over there. So again, shout out to Joe Benarok for sharing that with us here. But really, really, really cool. Hey, headline.
- [35:46]
Robert Croak
Yeah. I think my biggest takeaway from your radar points today is the pattern day trading rule going away. I always thought it was just inefficient and wrong that they're going to tell someone that may want to trade or swing trade stocks or whatever that they can't day trade unless they have $25,000. And that really is kind of a sign of the times by this going by the wayside because there's so many retail investors. We talked about this in the Rich Habits network the other night. I looked up a stat and it said since COVID there had been 30 plus million new accounts opened up by retail investors in the last four or five years. And I think that's an important part of this, of why this had to happen. Because there's a lot of people out there that want to get in the investing game but don't have $25,000. So I like that they've lowered the threshold. There's still going to be guardrails, but more and more people can get out there and learn and do trading if they want to without having to have the $25,000 dollars. That's my favorite takeaway from your radar points today.
- [36:50]
Austin Hankwitz
I am a big believer in yes, people should be investors and not day traders because day traders tend to lose money over a long period of time. We all get that. I'm just a big believer in let someone do whatever the heck they want to do. Right.
- [37:04]
Robert Croak
I want a day trade.
- [37:05]
Austin Hankwitz
I'm not going to stop you. And I don't think it's cool that the regulators want to stop you either. So if you want to do your day trading, more power to you. I hope you learn to make a ton of money. Money. But yes, I vividly remember Robert like being in college and be like, oh yeah, I'm gonna like buy this stock here. Then I'm gonna sell a little bit high. Oh, it's green. Today I made $7. That's my lunch. Today I'm just gonna boo boo bop. No more boo boo bopping. I couldn't do it, wouldn't let me. But now everyone can boo boo bop down the street and go make their lunch money. I love it. Everyone, thanks so much for joining us on this week's episode of the Rich Habitual Radar. If you learned something, please consider sharing this with a friend. We have these Friday episodes trying to do our best to get the biggest headlines, news events and sharing them with you every single Friday morning. So if your portfolio's up, down, left, right and in circles, you know why and what's driving the markets on a weekly basis.
- [37:55]
Robert Croak
And for all of you that are out there building that stock portfolio and want to learn more, make sure you check out wallstreetfavorites.com it is incredible we've added more tools. It is in my opinion and I'm a little biased, but we did build this. I think it's the best tool out there to help people figure out out how their portfolio is going to perform, what stocks should be in their portfolio, and how to react to the markets as they stay right now. So make sure you check out Wall
- [38:21]
Austin Hankwitz
Street Favorites.com that's right, Wall Street Favorites.com to see what Wall street thinks about your portfolio. Price targets, buys, sells, hedge fund trading. All of that is on wallstreetfavorites.com go type in your portfolio to see what Wall street thinks about it. Thanks everyone and we'll see you on Monday. Ryan Reynolds here from Mint Mobile with a message for everyone Paying Big Wireless way too much. Please, for the love of everything good in this world, stop with Mint. You can get premium wireless for just $15 a month. Of course, if you enjoy overpaying. No judgments. But that's weird. Okay, one judgment anyway, give it a try@mintmobile.com Switch upfront payment of $45 for
- [39:28]
Commercial Announcer
three month plan equivalent to $15 per month required intro rate first three months only, then full price plan options available, taxes and fees extra. See full terms@mintmobile.com starting a business can seem like a daunting task unless you have a partner like Shopify. They have the tools you need to start and grow your business. From designing a website to marketing to selling and beyond, Shopify can help with everything you need. There's a reason millions of companies like Mattel, Heinz and Allbirds continue to trust and use them. With Shopify on your side, turn your big business idea into Sign up for your $1 per month trial@shopify.com specialoffer.