Podcast Summary: "DeepSeek Turns into DeepSink for US Stock Market"
Right About Now with Ryan Alford
Release Date: January 31, 2025

In this episode of Right About Now with Ryan Alford, hosts Ryan Alford and his business partner Chris Hansen delve into a tumultuous week in the business and technology sectors, highlighting the meteoric rise and subsequent market impact of China's AI spin-off, DeepSeek. The discussion spans the geopolitical tensions between the US and China, the volatile cryptocurrency market, the soaring costs of Super Bowl advertisements, and the booming sports card industry.

1. The DeepSeek Phenomenon and Its Stock Market Impact

The episode opens with Ryan and Chris examining the unexpected ascent of DeepSeek, a Chinese artificial intelligence company touted to outperform its US counterparts by utilizing less energy and resources. This breakthrough led to a dramatic decline in US tech stocks, particularly Nvidia, which saw its stock plummet by over 20%, erasing approximately $600 billion in market value.

Notable Quotes:

• Ryan (04:03): "Deep Seek, the Chinese spin-off of AI and ChatGPT, supposedly was created using its own technology that uses way less energy, way less resources, and is way better."
• Chris (04:23): "It is really good at what it does, much better than any other AI platform. And it's more efficient and less energy, therefore, requiring less Nvidia chips, which is supposedly why you saw this correction in the market."

The hosts express skepticism about the rapid development and emergence of DeepSeek, drawing parallels to the unpredictable onset of the COVID-19 pandemic. They ponder whether Nvidia anticipated this competition and reflect on the broader implications for the US tech industry.

Geopolitical Implications: Ryan and Chris delve into how China's ability to innovate rapidly and cost-effectively with technologies like DeepSeek could shift the global balance of power. They predict potential US responses, such as increased investment in domestic innovation and stricter intellectual property protections, to counteract China's advancements.

Notable Quotes:

• Ryan (13:40): "China's ability to produce advanced technologies at lower cost could enhance its soft power, particularly in developing countries seeking affordable and effective solutions."
• Chris (14:55): "The weaponization of technology. Hey, there you go. That could be the name of today's podcast. Weaponization of tech."

2. Cryptocurrency Market Volatility

Transitioning to the cryptocurrency sector, Ryan and Chris discuss the recent dip in Bitcoin prices below $100,000 and the overall slow performance of the crypto market. They highlight the introduction of cryptocurrency ETFs by the current administration, aiming to make crypto investments more accessible to retail investors.

Investment Insights: Ryan advises listeners to consider dollar-cost averaging into cryptocurrencies by setting up automated, regular investments, akin to traditional stock market strategies.

Notable Quotes:

• Chris (10:09): "Crypto has been a little slow the last week or two. It's down and down."
• Ryan (10:17): "Get yourself a wallet opened up on one of these apps, crypto.com, Coinbase, and start doing some dollar cost average investing."

Despite the potential for growth, both hosts caution against the high volatility and prevalence of meme coins and scams, emphasizing the importance of sticking to established cryptocurrencies like Bitcoin, Ethereum, and XRP.

3. Cost of Super Bowl Advertisements

Ryan and Chris shift their focus to the marketing landscape, specifically the soaring costs of Super Bowl commercials. They discuss the value and effectiveness of investing in high-profile advertising slots during the game, noting that while a 30-second spot now costs around $4 million and can escalate to $5 million, the return on investment remains significant due to the unparalleled audience engagement.

Notable Quotes:

• Ryan (29:58): "It's all about attention. You're buying attention the most. People are actually paying attention to the commercials during the Super Bowl."
• Chris (30:22): "It's been fun getting my four boys and grew up creating baseball cards and basketball cards and so been getting back into it."

4. The Booming Sports Card Market

In a lighter segment, Ryan shares his enthusiasm for the resurgence of the sports card hobby. He recounts recent visits to sports card shops with his children, highlighting the excitement of opening packs and discovering valuable cards. This segment underscores the enduring appeal of collectibles and their potential as lucrative investments.

Notable Activities:

• Pack Opening: Ryan demonstrates the pack-opening process, revealing rare and valuable cards such as rookie editions and prismatic versions of popular athletes like Jalen Daniels and J.J. McCarthy.
• Community Engagement: Promotion of an upcoming trade night at Greenville Social House, encouraging listeners to participate in the vibrant sports card community.

Notable Quotes:

• Ryan (36:10): "They know all that stuff. I'm the one that gotta look up the values. I'm like, wait, wait, wait."
• Chris (36:27): "It's a great hobby for learning. It is a great station and business and margins and stuff."

5. Taxation and Donald Trump's Proposals

The conversation shifts to taxation, with Ryan discussing Donald Trump's recent suggestion to eliminate federal income tax in favor of taxing foreign nationals. They debate the feasibility and implications of such a policy change, considering the massive sum of $4.92 trillion collected in federal income taxes for the 2023 filing year.

Notable Quotes:

• Ryan (26:38): "Instead of taxing U.S. citizenship, wants to tariff and tax foreign nation. Sounds good to me."
• Chris (28:29): "They print it all anyways. Yeah, it's all make believe. The Fed is really the problem."

Both hosts express skepticism about the practicality of abolishing federal income tax without significant reforms to state taxes and defense spending.

6. Federal Reserve’s Interest Rate Decision

In the latest update, Ryan and Chris discuss the Federal Reserve's decision to hold interest rates steady at 4.25-4.5% amidst pressures from inflation and political figures like Donald Trump advocating for rate cuts. They analyze the potential impact on the real estate market and overall economic activity.

Notable Quotes:

• Ryan (25:45): "The Fed has held interest rates steady. So we have the interest rate at 4 and a half percent."
• Chris (26:12): "The people I know down here in real estate have been telling me it's been picking up."

7. Additional News Highlights

• Costco Strikes: Brief mention of ongoing strikes at Costco, reflecting labor tensions within major corporations.
• Tax Refund Delays: Discussion on the delay of tax refunds and the historical context of income tax implementation in the US.

Conclusion

Ryan and Chris wrap up the episode by reinforcing the multifaceted nature of the business world, blending serious analysis with light-hearted commentary. They invite listeners to engage with upcoming events, such as the trade night at Greenville Social House, and encourage participation in the dynamic sports card market. The hosts emphasize the importance of staying informed and adaptable in rapidly changing markets, leaving listeners with a blend of insights and entertainment.

Final Notable Quote:

• Chris (41:40): "Kick off your February right. Get out."

For more insights and detailed discussions, visit RyanIsRight.com or follow @rightaboutnowshow and @ryanalford on Instagram.