Prof G Markets: Has a Global Market Rotation Begun? + Inside the Ultra-Luxury Hotel Industry

Summary

Podcast Summary: The Prof G Pod with Scott Galloway – Episode: Prof G Markets: Has a Global Market Rotation Begun? + Inside the Ultra-Luxury Hotel Industry

Release Date: March 24, 2025
Host: Scott Galloway | Guests: Ed Mylett & Snoop Dogg

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1. Market Overview

The episode kicks off with Ed Mylett providing a weekly review of current market trends:

• Indices and Currencies: The S&P 500 saw an uptick, the dollar strengthened, Bitcoin broke its losing streak, and the yield on 10-year Treasuries dipped.

• Federal Reserve Update: The Fed maintained steady interest rates but revised its inflation forecast upward to 2.7% for the year. Additionally, the GDP growth projection for 2025 was lowered to 1.7%, down from December estimates. Despite these adjustments, major indices rose, buoyed by Fed officials hinting at two rate cuts within the year.

• Notable News:

  • Novak Djokovic's Lawsuit: The Professional Tennis Players Association, backed by billionaire Bill Ackman, filed a lawsuit against governing bodies, alleging cartel-like operations that limit player earnings and competition.
  • BYD's Surge: Chinese EV manufacturer BYD shares reached an all-time high following the unveiling of a revolutionary charging technology capable of fully charging its latest models in just five minutes.

2. Federal Reserve's Interest Rate Decision

Snoop Dogg and Ed Mylett delve into the implications of the Fed's recent decision:

• Snoop Dogg (00:08:35): Describes the Fed's move as a "nothing burger," suggesting minimal immediate impact despite market fluctuations.

• Ed Mylett (00:08:50): Explains the Fed's hesitation, citing high uncertainty and the broader economic limbo affecting businesses and consumers alike. He highlights Fed Chairman Jerome Powell's stoic demeanor, stating, "It's sort of a masterclass in, I would say, objectivity, but also stoicism and not showing your cards."

• Snoop Dogg (00:12:03): Critiques the Fed chairman's composed facade, joking about the potential benefits of a more transparent and relatable approach during press conferences.

3. Djokovic's Antitrust Lawsuit Against Tennis Governing Bodies

The discussion shifts to the high-profile lawsuit filed by Novak Djokovic's association:

• Ed Mylett (00:14:21): Breaks down the lawsuit's claims of price-fixing and monopolistic practices within tennis leagues. He highlights specific instances, such as the ATP Tour and WTA Tour blocking prize money increases proposed by tournament owner Larry Ellison.

• Snoop Dogg (00:16:27): Agrees, labeling sports leagues as "corrupt" monopolies that leverage their benign public image to enforce restrictive practices. He emphasizes the lack of competition, drawing parallels to other industries where monopolistic control stifles innovation and fair compensation.

• Ed Mylett (00:18:43): Provides historical context, noting the longstanding legal exemptions sports leagues enjoy from antitrust laws, tracing back to a 1922 Supreme Court decision regarding Major League Baseball.

4. BYD's Dominance in the Electric Vehicle Market

BYD's recent advancements and market performance take center stage:

• Ed Mylett (00:21:58): Discusses BYD's introduction of a high-powered charger that significantly reduces charging time. He points out BYD's strategic move to outpace Tesla, noting BYD's EV sales have surpassed Tesla's globally.

• Snoop Dogg (00:23:03): Highlights the stark contrast between BYD and Tesla's market performance, citing BYD's stock surge of 64% year-to-date compared to Tesla's 38% decline. He questions whether BYD is "dramatically undervalued" or Tesla "dramatically overvalued," advocating for investment in BYD given its technological and market strides.

5. Germany's Strategic Boost in Defense and Infrastructure Spending

The podcast examines Germany's significant policy shift:

• Ed Mylett (00:27:28): Reports on Germany's approval of a major increase in defense and infrastructure spending, removing previous borrowing limits and establishing a $533 billion infrastructure fund. He interprets this as a pivotal moment signaling a departure from Germany's traditionally cautious fiscal policies.

• Snoop Dogg (00:29:42): Attributes this move to the Trump administration's withdrawal, which prompted European nations like Germany to step up their defense investments. He anticipates a positive impact on the German economy, particularly in manufacturing and defense sectors, and shares his personal investment in a European aviation company poised to benefit from increased defense expenditures.

• Market Reaction: European equity funds experienced their largest four-week inflows in nearly a decade, marking a significant capital rotation out of the US into European markets—the most substantial since 1999.

6. Investor Sentiment and Capital Flows

The hosts discuss the current trends in investment strategies:

• Ed Mylett (00:35:34): Emphasizes the Bank of America's findings, where 60% of investors now expect stronger European growth within the next year. He highlights the largest shift in US-to-Europe equity allocations since 1999, underscoring the ongoing global market rotation.

• Snoop Dogg (00:37:21): Admits to personal delays in adjusting his investment portfolio but acknowledges the momentum towards European markets. He underscores the importance of diversification and the potential for continued capital influx into Europe, particularly in sectors beyond defense.

7. Insights into the Ultra-Luxury Hotel Industry

The episode transitions to an in-depth analysis of the ultra-luxury hotel sector:

• Ed Mylett (00:43:56): Introduces the topic by mentioning the Arman Group's initiative to raise $2 billion to expand its global presence, targeting the Middle East and Africa. He notes the significance of covering this due to Scott Galloway's expertise and personal experiences with Arma Group properties.

• Snoop Dogg (00:45:09): Shares his fascination with the luxury hotel industry, emphasizing the shift from traditional brand marketing to leveraging Instagram and social media for organic promotion. He discusses demographic trends, highlighting the rapid growth in millionaire populations and the emergence of new luxury brands catering to the super-wealthy.

• Key Points Discussed:

  • Business Models: Outsourcing capital risk by partnering with local billionaires who finance construction while luxury brands manage operations, ensuring high-margin returns.
  • Marketing Evolution: Transition from advertising to experiential marketing, where stunning visuals and Instagrammable moments drive brand visibility.
  • Incorporating Technology and Experience: Emphasis on providing unparalleled experiences that drive customer satisfaction and brand loyalty, despite potentially lower financial returns.

• Future Outlook:
  Ed Mylett raises questions about the sustainability of dynastic wealth and its impact on society once wealth transfers to subsequent generations.
  Snoop Dogg advocates for aggressive inheritance taxes to prevent the entrenchment of unproductive dynastic wealth, suggesting that redistributing capital can enhance societal well-being without diminishing individual happiness.

8. Concluding Remarks and Forward Look

The hosts wrap up with predictions and actionable advice:

• Snoop Dogg (00:58:30): Predicts continued capital flows into European markets, anticipating a 30%+ increase in European equities within the year. He encourages listeners to embrace diversification and consider international investments to mitigate risks associated with overexposure to US markets.

• Ed Mylett (00:59:09): Advises listeners to consider low-cost, diversified European ETFs such as Vanguard's VGK or iShares' IEUR for gaining exposure to European markets without the complexity of selecting individual stocks.

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Notable Quotes

• Ed Mylett (00:08:50): "We have an economy that does nothing, that has no choice but to basically just sit around and wait for someone else to make a move."

• Snoop Dogg (00:12:03): "I feel for the American people that have to live under a fascist ass clown making decisions that no one can discern, like which direction we're headed in."

• Ed Mylett (00:18:43): "Sports leagues are not like regular businesses... their belief is it needs to be rigged in favor of entertainment."

• Snoop Dogg (00:23:03): "BYD is now at a record high... one of these, it would appear, either BYD is dramatically undervalued or Tesla is dramatically overvalued."

• Ed Mylett (00:35:34): "60% of investors expect stronger European growth in the next year."

• Snoop Dogg (00:45:09): "Deleveraging in the US while Europe steps up is a perfect storm for capital rotation."

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Conclusion

This episode of The Prof G Pod provides a comprehensive analysis of current global market dynamics, exploring the Federal Reserve's policies, antitrust issues in sports, the competitive edge of BYD in the EV sector, and the transformative defense and infrastructure spending in Germany. Additionally, it offers valuable insights into the evolving landscape of the ultra-luxury hotel industry, emphasizing the importance of demographic trends and modern marketing strategies. The discussions between Ed Mylett and Snoop Dogg enrich the conversation with diverse perspectives, making the complex financial topics accessible and engaging for listeners.

Transcript

[Scott Galloway]

Support for this show comes from adt. From ADT comes Trusted Neighbor, the new standard in home access. Through the ADT plus app easily grant and automate event based or scheduled access for neighbors, friends and helpers. Notify trusted individuals of events like alarms or packages and set access windows for planned guests or even the dog walker. Without interrupting your day. Visit ADT.com when every second counts, count on ADT requires ADT Complete Pro Monitoring Plan and compatible devices. Copyright 2025 ADT LLC. All rights reserved. Today at T Mobile, I'm joined by a special co anchor. What up everybody? It's your boy.

[Snoop Dogg]

Big Snoop deal.

[Scott Galloway]

Double G Snoop. Where can people go to find great deals? Head to T mobile.com and get four iPhone 16s with Apple Intelligence on us plus four lines for 25 bucks. That's quite a deal, Snoop. And when you switch to T Mobile, you and save versus the other big guys. Comparable plans plus streaming respect. When we up out of here, see.

[Ed Mylett]

How you can save on wireless and streaming versus the other big guys. @t mobile.com/apple intelligence requires iOS 18.1 or later. Thumbtack presents the ins and outs of caring for your home. Out Procrastination.

[Snoop Dogg]

Putting it off, kicking the can down.

[Ed Mylett]

The road in plans and guides that make it easy to get home projects done.

[Snoop Dogg]

Out Carpet in the bathroom. Like why? In knowing what to do, when to do it and who to hire.

[Ed Mylett]

Start caring for your home with confidence.

[Snoop Dogg]

Download thumbtack today. Today's number 63,000. That's how many pages are in the newly released JFK assassination files. But none of them contain any revelations. Ed, what do JFK and Bill Clinton have in common?

[Ed Mylett]

What's that?

[Snoop Dogg]

Both their careers ended with a stained dress.

[Ed Mylett]

Dog. That's wrong, dark and gross. Any thoughts on the JFK file?

[Snoop Dogg]

Scott? How did JFK break his arm?

[Ed Mylett]

Oh, a joke. Good. How did he break his arm?

[Snoop Dogg]

By helping Jack off a horse.

[Ed Mylett]

I don't get it.

[Snoop Dogg]

Jack off a horse? Break your arm?

[Ed Mylett]

That's not even. That's not even JFK specific.

[Snoop Dogg]

Yeah, yeah, I know. I'm reaching. I'm reaching.

[Ed Mylett]

Yeah, you're reaching. You're scraping the barrel. By the way. You know, today is a very special day.

[Snoop Dogg]

Special day.

[Ed Mylett]

You know what it is?

[Snoop Dogg]

I had that same anxiety that when my partner asked me, you know, wakes up, it was like, oh, and I'm like, happy birthday. Anniversary.

[Ed Mylett]

It's like, okay, I'm about to drop a bomb on you. It's my birthday today.

[Snoop Dogg]

Oh my gosh, Ed, that's great. Because you get your driver's license this year, right?

[Ed Mylett]

Yeah, exactly. I'm finally eligible.

[Snoop Dogg]

26.

[Ed Mylett]

26.

[Snoop Dogg]

Constantly, the first thing I say about you when people ask me about you is I'm like, everyone said people say very nice things about you. And I always say, you know, he's 25. And people are like, I know, that's so amazing. So, wow, 26. That's not as impressive.

[Ed Mylett]

Yeah, not as impressive. Do you have any. Do you have any advice for me as I. I enter my 27th year on this planet?

[Snoop Dogg]

Advice to you at 26? Try and get a great shape. I think every man under the age of 30 should be a fucking monster. You still got a ton of testosterone and great double twitch muscle and great bone structure, and you're going to spend the rest of your life from 35 on just trying to maintain. So get to a really good place physically.

[Ed Mylett]

Bulk up. Okay?

[Snoop Dogg]

Say yes to everything. Invest in relationships. Try and establish as many friendships. It gets harder to establish friendships as you get older, so try and establish as many friendships as you can. And in the meantime, work around the clock. Try and get professional trajectory such that you can have economic security by the time you're in your 40s and 50s and spend more time with your family.

[Ed Mylett]

So any mistakes you made at 26 that I should avoid?

[Snoop Dogg]

I made a lot. I think my biggest mistake was I wasn't as kind as I should have been. I looked at relationships as a transaction. If I wasn't getting as much, I exited the relationship. I saw my employees. I started companies from the age of 27 as kind of a transaction where I thought, if I'm not getting more value out of them than I'm paying, I would fire them.

[Ed Mylett]

Well, you've had a massive turnaround on that.

[Snoop Dogg]

Yeah. Now I'm like, no, it's just the wrong role. I came of professional age in the Bay area in the 90s, and there was this general zeitgeist that if you were talented and nice, it meant you were talented. But if you were talented and an asshole, it meant you were Steve Jobs. It meant you were a genius. And there was this terrible zeitgeist or cultural norm that being an asshole somehow indicated that you were super talented. And I adopted that. I was never mean, but I could have been a lot kinder professionally with people. And also personally, I looked at my relationships as a transaction, not as like, how do I. How do I end up on the right side of the ledger? And then something I did right was I spent a ton of time with My mom and I know that sounds sort of lame, but I was very close to my mom. We spent a lot of time together. She constantly came, stayed with me, I constantly stayed with her. And that was, you know, I'm an only child, so that was very rewarding. I'm really glad I did that. That's about it.

[Ed Mylett]

So I'll work on getting ripped. I will try to be nicer and I'll spend more time with my parents. I think that's a good list of to do's. I'll check back a year from now.

[Snoop Dogg]

You're at a point right now. So up until the age of like 22, you're basically a total draw. You're a total, you know, liability for your parents as a young man. I mean, especially think about you. You're literally out of central casting for parents right now. And any time you spend with your parents right now, they're just going to get so much enjoyment out of. And you know, it's sad, but you don't. It's impossible to realize or really register. It's impossible. Have you ever lost anyone close to you?

[Ed Mylett]

Just my granddad lost you.

[Snoop Dogg]

Yeah, but that's natural. I would say that's sort of. You're sort of expecting that and the fact you even had grandparents.

[Ed Mylett]

No, I really. I am very inexperienced with loss and death, I will say that. Yeah.

[Snoop Dogg]

And you don't realize, especially with your parents, you don't realize how quickly it comes when they're really old. And I really. That was something I got right. I spent a lot of time with my mom.

[Ed Mylett]

Okay, I like that.

[Snoop Dogg]

All right, fuck that talk about AI and gdp. Let's get on with this shit. Let's get on with tariffs.

[Ed Mylett]

I just want to remind our listeners that we have a weekly newsletter now for Prof. G Markets. It's the Prof. G Markets newsletter which breaks down key market moves with data driven analysis from me and from Scott and from the Prof. G team, including our fan favorite, Mia Silverio, our research lead at Profg Media. And that goes out every Monday. So I encourage you to go subscribe to that newsletter. Go to Prof. Gmarkets.com and you'll have the updates every Monday in your inbox. It's a great newsletter. And with that, let's start with our weekly review of market vitals. The S&P 500 climbed, the dollar increased, Bitcoin broke its losing streak and the yield on 10 year treasuries dipped. Shifting to the headlines, the Federal Reserve held interest rates steady but raised its inflation forecast. For the year to 2.7%. They also lowered their 2025 GDP growth projection to 1.7%. That's a dip from December's estimates. However, the major indices rose as Fed officials pencilled in two rate cuts for the year. Novak Djokovic's Professional Tennis Players association is suing the game's governing bodies, alleging that they operate as a cartel. The organization claims that the men's and women's tours, along with the International Tennis Federation, colluded to restrict competition and limit players earnings. And finally, BYD shares hit an all time high after the company unveiled a new technology that fully charges its latest EVs. In just five minutes, the charging system will debut in the company's new sedan and suv, both set to launch next month. Scott, let's start with your thoughts on the interest rate decision from the Fed.

[Snoop Dogg]

This is tough because they say that the markets sometimes climb a wall of worry. And just as we started saying that the markets were really in trouble, it feels like the last two days have kind of rallied a bit. But I just saw this as a bit of a nothing burger. What did you think?

[Ed Mylett]

Yeah, I mean, I think you raise rates if inflation is heating up and you cut rates if the economy's slowing down. That's what these rate decisions are about. If you don't know what's going on, if you don't have enough data or evidence to support a move in either direction, you don't do anything. And that's basically what Powell said. He said, quote, uncertainty is remarkably high, so we're not going to be in any hurry to move. And we'll wait for further clarity. And this is the same dynamic we discussed last week in the context of companies and the struggles that they're facing, where they can't make decisions because they just don't know what Trump is gonna do. They don't know what the tariffs are going to look like and they don't know how supply chains are gonna shift. And so what you have now is an economy where from the bottom all the way up to the top, from Main street businesses, then to corporations and then to Jerome Powell at the Federal Reserve, everyone is stuck in this state of limbo where it's kind of like purgatory. You don't know if you're going to heaven or if you're going to hell. So you just sit around. And I think that's one of the big concerns that we've gone from this economy that is very active that does everything, to an economy that does nothing, that has no choice but to basically just sit around and wait for someone else to make a move. And I think the other thing to remember here, this was unsurprising that he held rates steady. Most economists in most markets and analysts expected this. But if you look back a few months ago, that was not true. You know, a few months ago, there were actually a lot of predictions that we would see a rate cut in March because a lot of people believed that inflation was getting under control. We were moving towards that target of 2%, and we might be able to cut rates earlier than we expected. And I think the fact that this was so unsurprising to everyone is another indication of where we are from an inflation perspective. We're basically resigned to this notion that prices are gonna go up again. And I think you have to feel for Jerome Powell, who has done an incredible job so far getting inflation under control, trying to get to 2%. He's been doing this for years now, very diligently, and it's been working. And then Trump makes all these decisions that move everything in the opposite direction. He has to be incensed about this. Trump has thrown a wrench in this whole operation that he's been working so long to get under control. And it's kind of remarkable the way he handles these press conferences, because, you know, he's pissed. There's no way he couldn't be pissed. People also about the tariffs. He said, quote, with the arrival of the tariff inflation, further progress may be delayed. He's so neutral and so calm about everything, but he just has to be angry on the inside. But he's done such a good job of just saying, you know, this is what we're going to do. We're just going to react to whatever the. Whatever the executive branch decides, and we'll see what happens. So it's sort of a masterclass in, I would say, objectivity, but also stoicism and not showing your cards. And maybe we have something to learn from that.

[Snoop Dogg]

I think the Fed chair has basically one job description, and that is remain calm and carry on. It just wouldn't help if he showed up sweating, freaked out, and like, fuck, I don't know. It's. I've never. I'm just. I'm totally waked. I can't sleep. I'm. I'm so freaked out. And look at this data. Jesus Christ. I don't know what to make of this.

[Ed Mylett]

And, yeah, maybe I'm giving him too much credit.

[Snoop Dogg]

If you want someone to kind of look nonplussed like they're sleeping fairly well. And not to be too alarmed, it needs to be the Fed chair. Like, if the Fed chair shows up, you know, without his shoes and, like, has been on a bender all night, it's just like. And popping pills. Like, I think it would be.

[Ed Mylett]

That would be way better for us. That would be more fun to cover.

[Snoop Dogg]

If every 15 seconds he said, I'm sorry, hold on a second. And he, like, struggled to get his pills out of his briefcase and then, like, started, like, throwing pills into his mouth and crunching on these things.

[Ed Mylett]

That would be good.

[Snoop Dogg]

I'd love to see. I'd love for him, just in the middle of these questions from senators, just love to see him just, like, bend over and just do a giant rail academy. What would happen to interest rates? Then what happened to the. What would happen to tenure? Respond.

[Ed Mylett]

Then what would happen to the stock market? Exactly.

[Snoop Dogg]

You know, I don't know. You say you gotta feel for Chairman Powell. I feel for the American people that have to live under a fascist ass clown making decisions that no one can discern, like which direction we're headed in. This is. Is that unfair. Fascist ass clown fac. This is the silver lining is the following. And that is, I do think the American economy, the gears just keep turning and people keep innovating. People keep wanting to buy shit, People keep wanting to make money. People keep coming up with new ideas. And I think we probably overestimate the impact that the White House has on it. Makes for a lot of headlines. But I wonder. I'm pretty sure we overestimated or underestimated. We give them too much blame and too much credit. But I would argue that these decisions, it would be impossible, I think, for them not to trickle down. And the fact that the GDP estimates have already come down, I think is evidence these decisions are not good for the economy.

[Ed Mylett]

Let's talk about this tennis lawsuit that was filed by Novak Djokovic and his association of Tennis Players, also strangely funded by Bill Ackman. And I read the complaint that they filed in New York federal court. And I gotta say, it is so compelling. I mean, issue after issue. I mean, the first main thing that they address is price fixing. The fact that these tennis leagues all collude with each other to suppress the amount that they pay their tennis players. And they have many specific examples. One of them, which is kind of interesting, is that Larry Ellison, who bought the BNP Paribas Open, which is one of these tournaments, he actually tried to increase the prize money. He wanted to increase it by 1.6 million million. And the ATP Tour and the WTA Tour said, no, we're not gonna do that because that means we're gonna have to increase the prize money for all the other tournaments. They also have examples of limiting the endorsements that these players can make. Like, if you wanna compete in these leagues, you have to forfeit your name and your image and your likeness rights. They also control the kind of equipment you can use. They control which kinds of sponsors and sponsorships you can accept. And then there's some interesting stuff about the working conditions, which sounds a little ridiculous, like boohoo, professional tennis players. But it honestly does sound quite grueling when they lay it out. You have to play in every tournament year round, and if you don't, if you skip a game, you get penalized, even if it's for like an emergency. And it's, it's intentionally an extremely packed schedule. They overfill the schedule specifically so that other tournaments that might pay the players more don't compete, and so the players don't go play in other tournaments. And so what you have here is an extremely vibrant, clear antitrust monopolization situation. But as I think you'll probably bring up, the situation with antitrust and sports leagues is quite precarious. And I can go into that in a second. But I do first just want to get your reactions to this lawsuit.

[Snoop Dogg]

I love this. I think there are few sectors that are more corrupt than sports leagues, and that is they leverage the fact that people feel really benign about them to establish regulatory capture and they get even legislation that enables them to be monopolies. I mean, if you and I wanted to start a football team, an NFL team in Chicago, we can't. The NFL gets to decide they can control supply. And the owners love it because that means that they buy $4 billion. And if they hold onto it for 10 years, they know it'll go up in value because they know the number of billionaires will increase as the economy increases and there's a fixed set of supply. I mean, these things are so corrupt. And they leverage this monopoly power and they extract rents from the players from consumers. Ticket prices have accelerated. They're essentially legal monopolies. And it's just ridiculous to think that, why shouldn't you be able to start a tournament, create another team? I mean, think about any business that said, okay, for every city there can only be two software companies. And the governing body ruled by the owners of these software companies get to decide who the entrants are or are not. And then if they Basically have one league that means you extract rents from the players where you're the only game in town and you get to decide how much money they make or don't make. And it's especially bad in tennis, where the players command only 18% of the total revenue generated by the sport, compared to basketball, where the players get 50% and soccer get 61%. So I love this and I love that Liv came in and basically challenged the monopoly of the pga. So I think competition is a good thing. But this is a perfect example of corruption with this veneer of benign goodwill because people have such affection for sports. But these are monopolies. And the rents being charged to ticket holders or consumers and advertisers who have, you know, have a limited supply of games, et cetera, and to the players themselves is, bottom line is corrupt. I love this ad. I love it.

[Ed Mylett]

I think the important thing you mentioned there, though, is legal monopoly. And this is the very interesting thing about sports and sports leagues. We have very robust antitrust laws in America and in Europe. We crack down on anti competitive behavior constantly. I mean, we talk a lot on this show about antitrust and antitrust enforcement. There is one exception both in the US and in Europe, to antitrust laws, and that is sports leagues. They have decided in the courts, again both in America and in Europe, that sports leagues are not like regular businesses, that sports leagues actually need monopolization. They need these governing bodies to cooperate with each other because their belief is that sports only work if you have basically cooperation among the governing bodies such that the teams and the players can compete on an even playing field. In other words, their belief is it needs to be rigged in favor of entertainment. And this is a long, strange history that goes back all the way to 1922, when there was an antitrust lawsuit against the professional Baseball league in America. What is now the MLB and the Supreme Court decided to make an exemption for the baseball league. And that is why today the MLB is the only entity in the United States that is not subject to, to antitrust laws. So this will be really interesting to see because, yes, they make a great case here. Yes, if you look at all of the details, it's 100% a monopoly. There's no question about it. But if you look at the history of antitrust in sports, I think it would indicate that this is probably not going to go through. Because every time this happens, the courts review it. They look at the legislation and they say, yeah, you know, we see where you're coming from, but sports is different. So we can't convict here. So we'll see what happens. I'm kind of rooting for the tennis players. Maybe that's just because I like Djokovic. But if I had to predict, I would say that the PCPA here does not win this case. I would predict that the sports leagues will come out on top.

[Snoop Dogg]

You may be right, because I don't know what the kind of established law is, but you want to talk about corruption, Start talking about the international bodies that don't even have to abide by any one. They. They live in this kind of nether. Netherland, where there's no. Essentially, they're not subject to laws of any one nation, and they've established such monopolies and people have tried to take them on, and it hasn't worked. Ted Turner started something called the Goodwill Games. Try and start a competitive. My big idea when the World cup was going through all of this nonsense. I do work with Nike, Adidas, and I brought up with both of them. I said, why wouldn't you basically start a nonprofit and host a competitor, or start a competitor, the World cup and just give all the money back to the, you know, try and break even, but basically try and root out the corruption that about six, eight years ago, the corruption at UEFA went just absolutely insane with paying off local officials, and it became about bribes. Who, what host country got to host the World Cup? So, anyways, I would like to see. I hope this works, but I trust that you've done the homework here and don't think that you think the courts are going to side with the. With the league.

[Ed Mylett]

Let's move on to byd. Remember, this is the Chinese electric vehicle company, and they've just come out with this new charger for their vehicles, which is four times more powerful than Tesla's Supercharger. So it adds 80 kilometers for every minute of charging. There are some technical questions that need to be addressed. For example, there are concerns over what this does to the lifetime durability of the battery. It might decrease the quality over time. Supposedly, it doesn't work very well for older car batteries, so there are little questions around it. But the overarching implication here is quite simple. BYD is pulling away from Tesla both in terms of the vehicle sales. We've talked a lot about that. BYD is now the global leader in EV sales as of last quarter. But now Tesla had this differentiator, this supercharging system that everyone was very excited about, and BYD is now pulling ahead in charging, too. So, Scott Your reactions to this news and the fact that BYD climbed again, it's now at a record high.

[Snoop Dogg]

There's just no getting around it. BYD has surpassed Tesla on almost every level in terms of tech. And Tesla sales in China have been cut in half in February. They're down 49% while BYD's rose 161%. Their latest vehicle is 75% less expensive. So four BYDs for the price of one Tesla. This feels like it sort of is a metaphor for China in general, and that is, in the last three months, China, as kind of evidence or indicated or metaphor for the resurgence is BYD. Year to date, BYD stock is up 64% and it trades at 33 times earnings, while Tesla is down 38% but still trades at 166 times. Earnings are said differently, and I love this statistic. The market values each Tesla car sold at 425,000 in market cap, and each car from BYD, even after this run, up for $39,000 a car. So even despite the fact that BYD stock has skyrocketed and Tesla's has come down, I mean, think about this. The market still values Tesla at 10 times the value per car produced BYD. And BYD is growing. So one of these, it would appear, either BYD is dramatically, and this is the question, is BYD dramatically undervalued or is Tesla dramatically overvalued? And of course, I believe the answer is yes.

[Ed Mylett]

Yeah, it is pretty remarkable. The stock performance of this company so far, up 60% year to date. It's up almost 100% in the past year. It's doubled in the past year. And I think there was a great article by Liam Denning at Bloomberg, which I think you shared with us, and it basically just plots the stock prices of these two companies in the past three months, year to date, Tesla versus byd. And what is so striking is that it looks like it's basically a mirror image. I mean, if you're listening to the podcast, it's harder to describe, but, you know, for every dollar increase in BYD stock, you see a dollar decrease in Tesla stock. And, you know, you just plot it out. BYD up 50%, 50 to 60%. Tesla coming down 50 to 60%. And basically what it tells you is this isn't just a matter of, oh, BYD is doing really well right now. This is a matter of BYD is actively eating Tesla's lunch. Every time Tesla does not make a sale or their sales decline, you are seeing an increase reflected in the sales of every time Tesla's stock comes down, BYD stock goes up. So I think we can only expect this trend is going to continue. And it does feel like the market is beginning to recognize that this other company in China that has these cheaper cars, it also has cheaper software. It's got these superchargers that are four times more powerful than Tesla's. It's becoming very clear BYD is probably going to be the new Tesla. We'll be right back after the break with a look at Germany's defense spending. If you're enjoying the show so far, be sure to give profgumarkets a follow wherever you get your podcasts.

[Snoop Dogg]

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[Scott Galloway]

Support for this show comes from ADT. From ADT comes Trusted Neighbor, the new standard in home access through the ADT plus app. Easily grant and automate event based or scheduled access for neighbors, friends and helpers. Notify trusted individuals of events like alarms or packages, and set access windows for planned guests or even the dog walker. Without interrupting your day. Visit ADT.com when every second counts, count on ADT requires ADT Complete Pro Monitoring Plan and compatible devices. Copyright 2025 ADT LLC. All rights reserved. Today at T Mobile I'm joined by a special co anchor. What up everybody?

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See how you can save on wireless and streaming versus the other big guys. @t mobile.com/apple intelligence requires iOS 18.1 or later. Back with Proftree Markets, German lawmakers approved a major boost in defense and infrastructure spending. The plan removes borrowing limits for defense spending above 1% of GDP and creates a $533 billion infrastructure fund. It's a major shift for Germany, which is historically cautious on defense spending and on debt. Previous borrowing limits were capped at 0.35% of GDP. Now this move could drive up to $1 trillion in investments over the next decade. We've discussed on this show how increased defense spending in Europe may boost their equity markets. Right. As investors are looking for an exit strategy from the US it does appear that that rotation is already starting to materialize. And I have some data we can go through. But first, Scott, I want to get your reaction to this news from Germany. Massive defense spending, a big increase in infrastructure spending too. And also the German stock market on that news hit a record high.

[Snoop Dogg]

I think this is overdue. And just to call balls and strikes, I think that this is a benefit that we've derived from the Trump administration. I don't like the way they're going about it, but you know, for a long time everyone has been saying that Japan and Germany and Europe have been freeloading or free riding off of the military umbrella and expenditure of the United States. And finally it looks like they're stepping up. And I do think that that is a direct function of Trump's withdrawal or basically saying you can no longer count on us. I mean, this will be good, I think, for the German economy because they're outstanding in manufacturing. So you would think that they would make great weapon systems. And I like the idea. I think Germany is a well run, well governed place. And like I said, I think defense spending could be the stimulus. And also I'm trying to play this trade. I think the Europe and defense trade is going to be a big one. And I've just recently made an investment in a European aviation company that I think has some defense opportunities. And I'm doing it based on two things. I'm hoping to get sort of a double whammy of capital flows into Europe and also the increase in defense spending.

[Ed Mylett]

Yeah, if you just look at the stock market, the DAX D A X, the German stock market, it rose around 2%. It's now up 15% year to date. It's one of the best performing stock markets in the world right now. You compare it to the S and p, which is down 4%. It's outperforming the U.S. it's also outperforming emerging markets. And I think the question is why is it doing this? Well, because 500 billion in stimulus, it's a lot, but it's not that much. And I don't think it's the sole explanation for why you're seeing this explosion in values. And I think what's really driving this rally right now is the story that this spending decision tells about what is going to happen in Germany, because we've discussed this before, this is a country that hates debt. They have a 60% debt to GDP ratio. It's the lowest of the G7 by far. You look at the UK it's like 100%. The US obviously really high 120%. And in addition to simply not taking on debt, they also have all of these rules and these controls that prevent them from borrowing in the future. This is just the way their economy works. And I think a lot of that is sort of a post traumatic stress from the Second World War where they realized we can't really trust ourselves. We need to take extreme measures, we need to make sure we never dig ourselves into these kinds of holes. And one way we can do that is by stringently limiting our ability to borrow money. As a result, as we've talked about, their economy has been, eh, you know, fine, but compared to the US pretty sluggish. And so I think last week was this pivotal moment in the narrative where the government said, by a huge majority, by the way, okay, we're going to dramatically change our approach to spending. And in addition to that spending bill, they also stripped out these debt limits. I talked about these controls that they have on how much they can borrow which are literally enshrined in their constitution. So you know, I mentioned that 0.35% number. It used to be that the deficit was only allowed to hit 0.35% of GDP. That was the max. And last week they said, nope, we're going to get rid of that, we're going to make an exception here. So I think a lot of this is also a turning point in the story for Germany. They had this decades long love affair with balancing the budget, with being fiscally conservative and they literally just Decided we're not doing that anymore. We're going to have this big fiscal spending package today. And I think investors are probably believing if they're going to do this now, they're probably going to do similar things in the future. They're probably going to spend even more tomorrow. And all of that government spending of course is going to. If we're being realistic, it's mostly going to go to German companies and all of that money is going to flow to their bottom line.

[Snoop Dogg]

The rivers are reversing. European equity funds registered their largest four week inflows in nearly 10 years. And that's the most significant rotation out of US into European equities since 1999. And B of A survey showed that 60% of investors expect stronger European growth in the next year, up 9% from just two months ago. So 9 of people thought Europe was going to grow now at 60%. The thesis I would have going into this is that they're estimating or they're proposing that the European Union is going to go from 1.9% of GDP on defense to 3% $19 trillion economy. You're talking about 150 to 200 billion in additional CapEx that the market wasn't expecting just six months ago. And that's annual and where's that going to go and what companies are going to be in front of that tsunami of capital? And not only that, with the tension between the US and Europe, it used to be okay Europe, increase your defense spending and by the way, please buy our submarines and our missiles. And there's no fucking way they're doing that. Now Germany might say in order to build these systems we might buy some parts from UK and Italian companies or French companies. But no, we're not going to buy from the U.S. sorry guys, it'll be an intra European stimulus. I think it's really fascinating. I'm also quite optimistic about it. I like the fact that Europe, what I think is kind of the home of a lot of progressive liberal thought and really has been kind of a beacon of light for, I don't know, philosophy and democracy and kind of modern civilization. I'd like to see them get their time in the sun outside of just Zara and lvmh.

[Ed Mylett]

Yeah, I just want to emphasize that bank of America data you mentioned right there because it is pretty remarkable, especially in the context of everything you've been talking about. You've been saying for months that you want to rotate out of the US and into Europe. And I just want to emphasize this data so this is the survey that bank of America does of all of the fund managers. It's a very reliable survey to understand how capital flows are moving in the world. And they found that US equity allocations, allocations into American companies in March. So this month they dropped 40% and that is the largest drop ever. Meanwhile, eurozone stock allocations jumped 27%. And that shift from US equities into European equities, that transformation, that is the largest shift since 1999. So the thing that you've been talking about for months now and which I've been kind of like, okay, maybe, yeah, okay, you're gonna rotate out, you know, trim your holdings. It's literally happening in record numbers now. And it does beg the personal question, how far into that rotation are you right now? I think the dream scenario would be that you sold immediately when you said you were thinking about it two months ago. But I know that these things take a little bit more time.

[Snoop Dogg]

The answer is not far enough. I started selling down Apple and Amazon, they started dropping. So I thought I'll wait till they get back. They, they haven't gotten back. And this is one of my many flaws as an investor. Apple and Amazon are kind of 80 or 90% of their all time highs. But because they were at 100% of their all time highs 60 days ago, I'm kicking myself and I don't want to sell.

[Ed Mylett]

Yeah.

[Snoop Dogg]

So I wish I'd actually done what I said to do. My biggest investment is in real estate, but my second biggest is with a fund run by my friend Orlando Marchant and he just invests in non US special sits. And he's up, it's Atlanta partners, he's up 12% year to date. And I like him because he's highly diversified. The last four years has been really difficult for him because he's not in US growth but he's been flat because he's good and he's been very diversified. Actually we're actually a little bit up. I shouldn't say that. I think we've compounded at 8 or 9% but everything else has been compounding. And now that everything things going down, he's rocking and rolling. The bottom line is I didn't rotate as aggressively as I should have. But what my friend Orlando, who I've been talking to about this says is that these cycles are usually multi year cycles. And so we're kind of in the second ending if you really believe our thesis is accurate. There's this great rotation of the rivers reversing flow we're kind of, we're an inning one, maybe we're in the bottom of the first inning. And you're going to see because even if you look at Apple, all right, okay, it's lost 20% of its value in the last, whatever, two, three months. It's still at a P of 31. The hard part is when you think about, and the reason I've been a bit reticent, my two biggest equity holdings are Apple and Amazon is that I have about a. I'm up about somewhere between eight and 12 fold on each of them. So you got to ask yourself when you're selling a stock, what other equity do I want to buy at 77 cents on the dollar because I'll take a 23% tax hit. So I got to feel strong enough that there's an opportunity, a better opportunity with 77 cents on the dollar rather than just holding Apple and Amazon. And I got to that point a couple months ago. I'm still going to continue to sell down because while it's not the most expensive it's been, it's still expensive. And I am actively looking for European and I've always been somewhat remiss to invest in Chinese stocks, although I wish I had. But where I'm really starting to look now is at Latin America where you haven't seen the same sort of run up. And I think there's a lot of great deals, specifically in Brazil. But I am going to, you know, I calculate I'm like 80 or 90% in US related equities and investments in real estate and I want to move down to 50 or 60. Yeah.

[Ed Mylett]

I'm sure there are a lot of people listening who are trying to think, okay, what do I do? How do I get some European exposure? What I would say, if you want to do this yourself, when we talk about this a lot, the safest way to do it and probably the smartest way to do it is just to buy a diversified portfolio of stocks in the form of an etf. So some of the low cost options you could look at, Vanguard has VGK. Also iShares has one I E U R. That's their Core Europe ETF. Those are just options that are low cost. I'm not saying you have to do those. I'm not being paid by Vanguard or iShares to say that. I think the point being though, I wouldn't go in and try to find all of the gems in the European stock market. Don't go picking individual stocks. I think the best thing that you could do here is just look at the European stock market indexes, look at the ETFs and the index funds and find the ones that'll low cost and that makes sense for you.

[Snoop Dogg]

In sum, you're exactly right. Index funds dollar cost average in but keep in mind, if you're 100% invested between your real estate, between your savings in between your stocks in US Companies, you might think you're diversified. You're not. And Goldman just put out research saying that when stocks get this expensive, it usually indicates almost flat returns for the next decade. So, you know, we'll see. They've been wrong before, but absolutely. I think you want a little bit of exposure to some of the international markets. I mean, just think about the sentiment around Europe, how much has changed in the last 60 days and what it's overshadowed. China, as evidenced by the BYD story, is having a bit of a like, don't, don't forget about us between deep seek between BYD China's like, I don't, you know, forget about us at your own peril. Folks. We're still the second largest economy. We're still very good at what we do. We're still really well managed. I mean, I'm even thinking about going back. I never, I didn't think I'd be back in China for another five or 10 years. And I'm thinking, oh, maybe it's time to do a trip there. We were talking to Alison about it.

[Ed Mylett]

We got to do a trip and we got to do a live podcast there and we got to meet with Xi Jinping in the politburo.

[Snoop Dogg]

Oh yeah, that's going to happen. That's. We're such players.

[Ed Mylett]

Yeah, influence.

[Snoop Dogg]

You're more likely to stop in Seoul on your way back and join a K pop band. I'll be the sullen one. I'll be the sullen one that gets addicted to heroin. You'll be the front man that everyone's crazy about.

[Ed Mylett]

Anyways, we'll be right back after the break with a look at ultra luxury hotels. If you're enjoying the show so far, hit follow and leave us a review on Proftue Markets. Spring starts with savings at the Home Depot. So if you're working on getting your.

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Only in theaters April 11th. We're back with Prof. G Markets Ultra luxury hotel group Arman is seeking $2 billion from investors to drive its global expans with plans to grow its presence across the Middle east and Africa. The Funds will support 23 ongoing hotel projects and the development of Oman Residences, a collection of lavish homes offering hotel level amenities. Additionally, the company plans to launch a new hotel line tailored to a younger clientele. This is not groundbreaking news, it's not earth shattering from an economic perspective, but we got to cover it because Scott, you are the expert, the world renowned expert on luxury hotels. You've stayed at probably every Armand property in the world. And so, you know, any time that the Armond shows up in in the headlines for any reason, I think we got to cover it. I think we got to look at the luxury hotel market. So Scott, please take it away. What is your reaction to the Armand Group going out and raising $2 billion to expand across the globe?

[Snoop Dogg]

So I'm fascinated by this industry as you referenced, I spend a disproportionate amount of my money on, you know, I wrote that book on happiness and one of the things I took away from it, I struggle with happiness and one of the things I took away from writing a book on it is that every piece of research says that we overestimate the happiness things will give us and underestimate the happiness that experiences will give us. So I spend a disproportionate amount of my income on travel and I don't travel to cities, I travel to hotels. I'm obsessed with those hotel lists and I just find it absolutely fascinating. And if there's a great new hotel I'LL travel to the hotel. I didn't go to the PSG game with my son in Paris. I went to the new Cheval Blanc. That's how I travel. I go to hotels, I don't go to cities. And I'm fascinated by the business. So first off, the business model. Let me back up. Peter Drucker said demographics are destiny. And that is every major business trend can be predicted by demographics. And what you want to do is you want to get in front of a demographic trend. It's like surfing when the waves are perfect, right? It's easy to be a great surfer with great waves or a great skier with great powder. And demographics are the great powder and great waves. And one of the biggest demographic trends, quite frankly, is just the wealthy. The number of millionaires in the U.S. ed, get this, has doubled since 2020. So it's just, it's staggering. One in 15Americans is now considered a millionaire. And a projected 16% growth to 25 millionaires by 2028. So the fastest growing demographic group is not even the 1%. It's a 0.1%. And if you think about the brands in the hotel space, the nicest brands were the Ritz Carlton and the Four Seasons. They were kind of the duopoly for rich people. And then Mandarin Oriental kind of saw an opportunity out of Hong Kong came in, tapping into wealthy Asians and the great brand halo of Asian service. And then the explosion in mega kind of centimillionaires and billionaires, not even, but just very. The super wealthy, so to speak. I'd say that's probably people $10 million and above. A whole raft of brands have come in. Above those luxury brands, Rosewood Almond, as we're talking about Cheval and Blanc, Six Senses. And they basically have come in and they've leveraged a lot. They've leveraged demographics, they've leveraged the new means of branding. And that is only the Four Seasons of the Ritz Carlton or Meredith or Hilton had the money to develop very expensive reservation systems and do branding. And now branding isn't a function of advertising. It's a function of Instagram. And these hotels are literally an Instagram orgy. They are so over the top. They have such a beautiful clientele, they're in such beautiful locales that basically their entire marketing is on. At the Hotel du Cap, at any given moment, there are a thousand Instagram postings an hour just saying, look at this place. Look how incredible this place is. Look at how incredible the food is. If you go to, you Know, whatever it might be, I'm trying to think of the Rosewood, Mayakoba, or these things are just built for Instagram. So they've taken advantage of the new kind of content creation, usurping marketing spend or replacing or obviating the need for marketing spend. And you have also post Covid, sort of a YOLO mentality where people are saying, for the first time, I'll spend $5,000 a night on a hotel. And people, even rich people, never would have thought of that. They never would have considered it. But now they're like, okay, maybe I know someone who's died. Maybe I'm in my 60s. I've got the money. This thing is extra. This place is just extraordinary. I, you know, we'll pay 5,000 bucks a night. The business model is also incredible because what they do is they find a local billionaire that wants to say, I own the Four Seasons in Hawaii, Micha Dell. They pay for the construction. They then enter into a management agreement with the Flag before Seasons or Rosewood, who manages it, does the service, does the training, does the standards, the decorations, the interior design, has the reservation system. And they take, say, between 8 and 12% a year, which doesn't sound like a lot, but most of it hits the bottom line because the cost of the employees is funded out of the revenue, and then they take an additional 8 to 12%. So even in 2008, when the market crashes, the Four Seasons still makes money because they're taking 8 to 12% off the top. And they have a services agreement where the owner of the Four Seasons in midtown Manhattan basically has to declare bankruptcy because he has to maintain certain levels of service per his agreement with the Four Seasons. So the Four Seasons only actually owns one of their hotels. The rest they get other people to finance, and they take a very high margin management fee to kind of run the place. So they outsource the capital risk. They manage or they train or they create the service standards and they just get all high margin, incredible revenue. In addition, they found another way to make a shit ton of money, and that is they said, okay, let's take a 5 million or an $8 million condo in a high rise on the beach in South Beach. And we branded the Aman Residences. And we can charge $12 million for it because they get hotel amenities in the branding, and the owner, when he or she is not there, can put it back into the rental pool and they rent it out and they split the revenue. The owner gets 50% and the brand gets 50%. So I get someone else to finance the construction of something ridiculously overpay for it. And then it continues to make revenue for me because of the brand. I mean, this really is a lesson in the power of brands, a lesson in the power of demographic trends, and a lesson in kind of business models around. You don't want to be in the business of owning the capital. You want to be in the business of managing it and taking revenue off of the top.

[Ed Mylett]

One thing I often think about, Scott, we've addressed what the world looks like when it's ruled by the mega rich. You know, we've seen huge monopolies form money and lobbying power starts to take hold in the government. You start to see these populist movements. You also start to see the rise in these luxury brands and these luxury items and these businesses that specifically service extremely rich people where you can charge these incredibly high prices. My question is, what is going to happen when all these billionaires and multimillionaires start dying because they're all getting old. Ish. And what's going to happen when all of that wealth is transferred on to, I mean, if we had to guess, their children and their grandchildren? What happens to a society that is dominated by people not who made obscene wealth, but who inherited obscene wealth just.

[Snoop Dogg]

To keep it real? I want to talk about a couple other hotel stories. When I was right out of business school, I started a company called Profit. And we did consulting and we would just take any engagement. And I took an engagement with a pager company helping them figure out their customer service. And it was in Minneapolis. And I went with my friend Lee Lotus. And it was, I remember it because it was the day of the Clinton, Bush Perot debate. And we got a hotel for 39 bucks a night, I think, at the Minneapolis airport. And we had to go out and try and buy nose plugs or some like weird Vaseline to put under our. Or weird scent to put under our noses because it stank so badly of smoke. It literally felt like someone had fallen asleep and been burned alive by their own smoke. And. And then the other one was, I was at. I had a client, I think it was Roots or some Canadian company, the Montreal in Montreal. And it was, as you know, it was my own company. We're a small business. So it was like, I think it was like 70 Canadian. And I checked in and it was 1993. And, you know, whatever. I was your age. So the first thing that I do, I settle in and I turn on porn and it's not working. So I call down to the front desk. I'm like, the TV's not working. So this Asian woman comes up.

[Ed Mylett]

It's the White Lotus scene again. Yeah.

[Snoop Dogg]

It turns on the tv, and of course the porn comes up, and it's like going in and out. So she sits there and starts banging on the tv. And occasionally the porn comes in. Then it comes out. Comes in, comes out.

[Ed Mylett]

Were you not ashamed?

[Snoop Dogg]

Oh, it was fucking humiliated. It was like crazy in bear. And I remember thinking. And then this couple, this family of, like, five is looking for the room. They come into my room and start going, where's room 308? As my porn is coming on and off my TV, she's banging on the TV. And I looked at the couch. I remember the exact moment I looked at the couch, and it was covered in plastic. And I thought, this is where people come to kill themselves. This is that kind of place. She said, I want out. I can't fill this void in my chest. I'm going to go check into this hotel anyway. So I've had. I've seen hotels from all ends of the spectrum. I'm sorry, what was the question, Ed? What was the question?

[Ed Mylett]

My question is, what is going to happen when the wealth transfer finally occurs?

[Snoop Dogg]

Look, I believe in a really aggressive inheritance tax. I don't believe in dynastic wealth. One, it's bad for society. So rich kids get into the best schools and also inherit the money such that they can start businesses. And there's a myth that the middle class is a naturally occurring organism. It isn't. It requires additional redistribution of income. And Republicans and the incumbents would like us to believe that, oh, no, the middle class is a naturally occurring organism and it'll come back on its own. No, if you don't take money from corporations and the most fortunate among us and redistribute it in the middle class, the middle class throughout history eventually goes away. And what you have with dynastic wealth is you're taking capital that should go back into the ecosystem and just creating these dynasties of unproductive rich people. Now, the good news is that most of them aren't very happy. And so for me, the reason that you can justify an exceptional inheritance tax is that additional capital or inheriting more than, say, 10 million bucks, that doesn't increase the happiness of your kids. I know a lot of rich kids, and I know a lot of kids who are not rich. And the levels of happiness are not greater among the rich kids. So if the whole point is to create a society where people can have purpose and meaning and live a happy life and they're getting no additional happiness if you let them inherit more than say 10 or $20 million, then what's the point when you could redistribute that capital to other people and give them more of a shot? So I hate dynastic wealth. But what you're seeing, and I see it, I mean, I think I've always resented rich kids because I'm not one of them and I was always jealous of them. But what you're talking about is already happening, Ed. I mean, when you go to these nice hotels, there's people in their 50s and 60s and you can tell it's probably their money. And then there's a whole raft of a younger generation, to be clear, some of them, whether it's tech, some of them, you know, whatever it is, but a lot of them are there with their parents credit card. It's already happening.

[Ed Mylett]

By the way, this, this funding round by Arman, they're looking for investors as we speak and they are specifically looking for high net worth individuals to invest. If you got the call from Armand tomorrow inviting you say to an SPV into the new OMON residency, would you invest 100%?

[Snoop Dogg]

No, the returns are shitty because it's a vanity investment. So there's a lot of people that love the, I'm sure they have some sort of deal. People love the idea of investing in Aman, so that means they can extract, they can get very cheap capital, which spells shitty returns. So I would bet that it's just not a great investment. It's like timeshares or. I haven't seen the paperwork on the underlying dynamics. But because so many people love the idea of investing in am, they're going to get a disproportionate amount of capital such that they will be able to offer really shitty terms. I would bet the returns will be awful. But maybe there's some psychic return of saying, oh, I'm an owner of almond and I get 10% off of rates. I remember more hotel stories back when I remember taking my girlfriend, I was trying to impress her, a nice hotel in Cabo, but I signed us up. The reason I got to go is I signed us up for a timeshare tour and it was at a turn on when I told her we had to take a two hour tour in the middle of the day to look at timeshare opportunities. That's what happens when you roll with a dog. When I laid that on her, got her down to Mexico and I'M like, oh, I got this free cocktail thing for us. She's like, oh, I'm not gonna go. I'm like, you need to go. It's a timeshare pitch. We have to go. Otherwise I can't get this room right. Do you think that, do you think that's a turn on?

[Ed Mylett]

God damn, that doesn't work. Let's take a look at the week ahead. We'll see the personal consumption expenditures index for February as well as earnings from GameStop and Lululemon. Do you have any predictions for us?

[Snoop Dogg]

Scott? Yeah, my prediction is that the flows of capital into Europe begin to infect not just the defense contractors, but start to infect the other sectors in the economy. And that we're gonna see. I think so far European markets are up 13 or 16%. I think they're going to be up 30% plus this year. I think this is a trade, a momentum trade. And I think there's probably a lot of fund managers right now thinking, okay, I missed this, but it's not too late. And you're going to see just an entirely different willingness and promiscuity around allocating big pools of capital to European stocks that haven't been there for 20 years. I, I, quite frankly, I just think we're getting started to that point.

[Ed Mylett]

We made the point that US Stocks have come down, but they're still expensive. You make the same case with Europe. European stocks have gone up, but they're still cheap. I think you're probably right there. This episode was produced by Claire Miller and engineered by Benjamin Spencer. Our associate producer is Alison Weiss. Mia Silverio is our research lead. Isabella Kinsel is our research associate, Drew Burrows is our technical director and Catherine Dillon is our executive producer. Thank you for listening to Prof. G Markets from the Vox Media Podcast Network Network. Join us for a fresh take on markets on Thursday.

[Scott Galloway]

Support for this show comes from adt. From ADT comes Trusted Neighbor, the new standard in home access through the ADT plus app. Easily grant and automate event based or scheduled access for neighbors, friends and helpers. Notify trusted individuals of events like alarms or packages and set access windows for planned guests or even the dog walker. Without interrupting your day, visit ADT.com when every second counts count on ADT requires ADT Complete Pro Monitoring Plan and compatible devices. Copyright 2025 ADT LLC. All rights reserved. Today, at T Mobile, I'm joined by a special co anchor. What up everybody? It's your boy.

[Snoop Dogg]

Big Snoop deal.

[Scott Galloway]

Double G Snoop. Where can people go to find great deals head to T mobile.com and get four iPhone 16s with Apple Intelligence on us plus four lines for 25 bucks. That's quite a deal Snoop and when you switch to T mobile you can save versus the other big guys. Comparable plans plus streaming. We're switching spam when we up out of here.

[Ed Mylett]

See how you can save on wireless and streaming versus the other big guys at T mobile. Com switch Apple Intelligence requires iOS 18.1 or later.