Rich Habits Podcast – Episode Summary
Podcast: Rich Habits Podcast
Hosts: Austin Hankwitz & Robert Croak
Episode: Apple's (Potentially) New CEO, Amazon's $50B Investment, & December Rate Cuts
Date: November 28, 2025
Overview
This episode of the Rich Habits Podcast zeros in on three key financial and investment headlines shaping the week's landscape:
- The Federal Reserve's shifting stance on December rate cuts
- Amazon's massive $50 billion data center investment for US government customers
- Signs of cooling in the US housing market and what it means for buyers and sellers
Austin and Robert break these topics down with their signature blend of clear financial advice, their personal perspectives, and actionable “rich habits” for listeners looking to improve their financial footing.
Key Discussion Points & Insights
1. Federal Reserve December Rate Cut Flip-Flop
[03:38–06:41]
- Background:
- The Fed raised interest rates aggressively starting in 2022 to combat inflation—“the fastest pace in 40 years” (Austin, 04:00).
- The rate hiking cycle is now over; a series of rate cuts has begun.
- In late October, Jerome Powell surprised markets by suggesting the expected December rate cut might not occur, causing significant market volatility.
- Recent Developments:
- As of late November, the Fed is signaling a potential rate cut in December again. Forecast odds for the cut are as high as 85%.
- Two consecutive cuts already brought rates to 3.75-4%; a third would move toward neutral, balancing economic stimulation and restraint.
- Implications for Investors:
- “Don’t fight the Fed. If they’re raising rates, play defense; if cutting, be on offense,” (Austin, 05:40).
- Falling rates = bullish environment for risk assets.
- “When in doubt, zoom out,” (Robert, 06:31)—stay focused on long-term trends.
Memory Moment:
“Don’t let week-to-week volatility derail your wealth building plans. As long as the Fed is cutting interest rates, I’m bullish and that’s where we’re headed.”
— Austin Hankwitz, [06:09]
2. Amazon's $50 Billion Data Center Investment
[06:41–09:51]
- The News:
- Amazon is investing $50B to build/expand AI and HPC data centers for US government clients.
- US government agencies will access AI tools and advanced hardware (AWS + Nvidia), “to accelerate critical missions from cybersecurity to drug discovery,” (Robert, 07:26).
- Andy Jassy (Amazon CEO) reported Amazon spent $125B on infrastructure in the past year, signaling even higher numbers ahead.
- “Picks and Shovels” Investment Analogy:
- Austin compares today’s data center boom to the Gold Rush: “The people who made money sold the picks and shovels, not necessarily the gold miners,” (Austin, 08:13).
- Investors should focus on companies supplying critical infrastructure for AI/data centers: Vertiv Holdings, Eaton Corp, Modine Manufacturing, Arista Networks, etc.
- BofA projects $900B/year will be spent globally on data centers by 2028.
- Outlook:
- Robert is “still bullish,” noting that real value lies in the infrastructure supporting the AI wave—not just in buzzy AI startups.
- “We are fighting the headlines right now because everyone is talking about a big AI bubble. Yet the largest companies, banks and hedge funds are all investing heavily in the infrastructure.”—Robert, [09:51]
3. US Housing Market Weakness
[09:51–13:44]
- Key Stats:
- National home prices rose 1.3% Y-o-Y through September, the lowest rate since early 2023.
- In all 20 major cities tracked by the Case-Shiller index, prices declined before seasonal adjustment.
- Tampa, San Diego, and Seattle saw the largest price drops.
- Mortgage rates remain elevated—national average for 30-year mortgages: 6.33%.
- Market Dynamics:
- “Broad-based weakness points to falling demand...affordability at multi-decade lows,” (Austin, 10:53).
- Over half of homes sold in 2025 (YTD, through October) had at least one price cut—more than double pandemic-era numbers.
- Homes sold after a price reduction spend “five times as many days on the market as the average,” (Robert, 11:41).
- Advice for Sellers:
- Price your home based on sales in the last 3-4 months—not on outdated, higher comparables.
- “Homes priced correctly from day one sell quickly and get nearly 100% of asking price,” (Austin, 13:04).
- Market Structure Problems:
- High rates deter people from selling their low-rate (2.5–4%) homes, stalling new inventory and “freezing” the market.
- Portability/Assumable mortgages could unlock inventory:
“If you can take that interest rate with you, when you sell and buy again...that could reinvigorate American housing,” (Austin, 15:31).
Notable Quotes & Moments
-
Don’t Fight the Fed:
“If the Fed is cutting interest rates, I’m bullish and that’s where we’re headed. So net buyer of assets over here.”
— Austin Hankwitz, [05:40] -
Picks and Shovels Play:
“The people who absolutely made money during the gold rush were the people selling the miners picks, the shovels, and the hopes and dreams... Apply that to Amazon’s $125B in capital expenditures this year.”
— Austin Hankwitz, [08:13] -
Housing Market Realism:
“Listings that sold after a price reduction typically spent five times as many days on the market as the average for homes that were priced right from the start. So be careful out there. Make sure you price accordingly.”
— Robert Croak, [11:41] -
On Bullish AI Infrastructure:
“The largest companies, banks, and hedge funds around the world are all investing in AI infrastructure. So for me, I'm still bullish. I don't believe we're anywhere near a bubble.”
— Robert Croak, [09:51]
Specialist Segments
ETF Central Movers & Shakers
[16:19–19:17]
- Best Performing Sectors (last 5 days):
- Life Sciences (+8%)
- Biotech & Genomics (+7%)
- Niche Commodities (+6%)
- Worst Performing Sectors:
- Next Generation Internet (-7.7%)
- Cryptocurrency (-7.1%)
- “Crypto is the only sector down year to date. No shocker in this volatility,” (Robert, 17:32).
- Emerging Markets (-6.2%)
- Key Takeaway:
- Life sciences are remarkably strong, perhaps due to the rise of AI and advances in health tech, but both hosts admit more research is needed.
Rapid Fire Headlines
[19:17–26:38]
Robert’s Picks
- Gold Prices:
- “Gold above $4100/oz—bullish, but even more bullish on silver due to use cases.”
- Florida Housing Dip:
- “7 out of the 10 US markets with steepest price drops are in Florida. Buyer’s market if you can make the numbers work.”
- Klarna Launches Stablecoin:
- Debuting Klarna USD on the Tempo blockchain, aiming at faster, cheaper payments with Stripe and Paradigm involvement.
Austin’s Picks
- Apple CEO Speculation:
- Rumors grow that Tim Cook (now 65) might step down soon; names like John Ternus and Craig Federighi floated as possible successors. “Polymark is putting this at 50/50 for 2026,” [23:36].
- Jeff Bezos & Project Prometheus:
- Bezos takes a formal co-CEO position at this well-funded AI start-up ($6.5B so far), his first operational gig since Amazon.
- Elon Musk’s XAI:
- XAI closing a $15B round at $230B pre-money valuation; early SPV investors already see a 35% gain.
“Which is pretty sick,” (Austin, 25:26).
- Major funds directed at GPU/hardware for LLM development, and integration with X (formerly Twitter).
- XAI closing a $15B round at $230B pre-money valuation; early SPV investors already see a 35% gain.
Concluding Thoughts
[26:07–27:09]
- Optimism for the Diligent:
- Despite volatility, “if you look hard, work hard and put in the effort, there are always ways to find returns,” (Robert, 26:07).
- Show Appreciation:
- “Love reporting on the news and giving my hot take… appreciate everyone coming back every Friday,” (Austin, 26:38).
Timestamps Index
- Fed Rate Cuts Discussion: [03:38–06:41]
- Amazon’s $50B Investment: [06:41–09:51]
- US Housing Market Weakness: [09:51–13:44]
- ETF Sector Movers Recap: [16:19–19:17]
- Rapid Fire Headlines: [19:17–26:38]
Tone & Language
The hosts maintain an upbeat, practical, and slightly informal tone, mixing financial seriousness with accessible analogies (“picks and shovels,” “don’t fight the Fed”) and direct calls to action for listeners.
Bottom Line
This episode equips listeners with timely market insights, practical strategies (“be on offense as rates fall”), and a candid look at what’s working—and what isn’t—across AI, real estate, and the broader investment landscape. The interplay of experience (Robert) and fresh perspective (Austin) brings a unique, relatable flavor to financial news.