In this Weekly Market Recap, Andrew Brill reflects on the interviews that took place on Wealthion over the past week in another Wealthion Weekly Market Recap!
Andrew Brill 0:00 Hello and welcome to Wealthion's weekly market recap. I'm your host Andrew brill. This week, Jerome Powell testified on Capitol Hill we got a new CPI number that came in weaker than expected, and a PPI number that was slightly higher than expected. The consensus is that a rate cut is on the way though in September, let's get to the recap. The last time Jared Dillion has seen numbers like this, with the VIX being low in the unemployment number creeping up was 2007 and we all know the economic strain we were in then. Jared also touched on where to stick your money, depending on the outcome of the election in November, and the high prices of housing and low supply. Jared, I want to ask you, what's your overall take right now the economy? I know, that's a broad question. But I'm going to ask anyway. Jared Dillian 0:54 Well, things are slowing down pretty significantly. I mean, so we got payrolls on Friday, which was kind of sandwiched between July 4 and the weekend. And a lot of people weren't around. It wasn't a terribly strong payroll report. And you really have to go back to the previous payroll report to get any strong data whatsoever. So it's really been a month of weak data. You saw Jay Powell speak, and say that he's seen disinflationary forces, and I have to agree with him actually. He's a little bit optimistic, he thinks we're gonna get 2% inflation next year, the year after I, I kind of don't think that's going to happen. But nonetheless, inflation is coming down. If you look at the true inflation numbers, they've been tracking below 2% for a while. So I mean, the labor market is finally softening, which is something we've been looking for for a long time. So I'm looking for lower yields in the future. Andrew Brill 2:00 Powell is talking about labor markets. So we did have that number but it kind of I know that a lot of people are on vacation, not looking at the market. But the market, Friday had a pretty good day NASDAQ and s&p hitting new highs down not far behind it. What do you make of the market right now. Jared Dillian 2:16 I can't make heads or tails of the stock market. It's It's really incredible. The NASDAQ is up 14 days in a row. It's like nothing matters, you know. And I've, I've been in this situation in my career a couple times before one of them was in I want to say 2006, 2007. It was a similar environment, very low volatility. I mean, back then the VIX was actually below 10. And it got below nine for a day. And the market was moving 20 basis points a day. Liquidity was abundant in the stock market, there was very little volatility. And that ended on February 27 2007. And that was the day that we walked in, in the morning, and China had raised reserve requirements, and the ABX was down 10 points. And the market went down 3% in the day, and the VIX went from 10 to 20. And that was really the starting gun for the financial crisis. So you're seeing, you know, this, it's not to the scale of, excuse me, 2018, where you had that kind of volatility suppression where people were piling into the shortfall funds and stuff like that. But the similar things are happening now with covered call funds. There's a lot of vol selling. And, you know, if you suppress volatility, it tends to come back with a vengeance. And I think that's, I think it's gonna happen soon. Andrew Brill 3:48 Do you remember what the catalyst was in 2007? I know reading your newsletter, you said, it could be anything. It could be someone stubbed their toe, and all of a sudden, there's a huge sell off. Jared Dillian 4:00 And yeah, it was, it was China raising reserve requirements. And in the ABX, were the two big catalysts. So I mean, I remember it clearly. I was on the ETF desk. And I had just gotten into work at seven o'clock and at 730 some hedge fund at a London hit me on 400,000 em pre market. And it was offered four bucks below where I bought it. When the market opened and it kind of ruined my day. Andrew Brill 4:30 I was going to ask you about the election, not political wise, but in the in the market. There's a big difference between these candidates in what you're going to invest in, isn't there? Jared Dillian 4:41 Oh, for sure. There is on every election and it's kind of the same playbook. It's actually pretty boring. Like it's the same thing every time like, you know, if it's a Republican, it's coal and energy and stuff like that. And if it's Democrat, it's tech stocks. You know, I mean, there's there's this playbook that seems to work all the time. Um, but there's, you know, there's the possibility, you know, I mean, we don't have to get into Joe Biden's debate performance or anything like that. But look, there's potentially a lot of surprises like Joe Biden could not be the candidate could be Kamala could be somebody else could be somebody who's competitive with Trump. So the idea that we're going to have the VIX at 12, all the way leading up until November seems kind of seems kind of far fetched to me. So I think we're gonna get some volatility. Andrew Brill 5:34 Rates directly affect housing. And housing has been about as wacky as everything with higher rates, but there's less inventory, there's higher prices, which is doesn't make any sense whatsoever. Can you make any sense of the housing market at all? Jared Dillian 5:51 Yeah, it actually makes sense to me. I mean, this is one of the few things that have gotten right in the last year. So basically, we went through a period of about 10 years from 2010, to 2020, where we were chronically under building homes, we were, we were just not building enough to keep up with population growth. And that home construction picked up during the pandemic around 2021. And we've been building homes at a much faster pace since then. But it still hasn't been enough to keep up with population growth, and it won't be going forward. So if you think about this, you know, 10 million people have crossed into the country illegally, right. And they're going to stay here and they're going to get jobs, and they're going to rent apartments. And over the course of the next 20 or 30 years, they're going to have children, their children are going to buy houses, like we we cannot build houses fast enough to account for the increase in population. I mean, this played out exactly in Canada in the 20010s, they started this immigration policy, they were letting in legally 2% of the population each year, there wasn't enough building house prices went parabolic. Like I actually I actually think that home prices could go up significantly from here, you know, over on a five to 10 year basis, you know, not like this year, but over five to 10 years, I think it's possible for residential real estate to go up 50 to 100%. From here. So and it's really all about supply and demand. There was it when interest rates first started to go up in 2021 22. There were a lot of people who said, you know, mortgage rates started, they went from two and a half to three to four to five. And people said, well, the housing market is going to crash because now you know, people can't afford these higher interest rates hasn't had any effect whatsoever. And I don't think it will have any effect. So if you're if you're if you're long a house, if you're living in a house, I would hang on to it or buy more. So Andrew Brill 8:11 Dylan Smith and Rosenberg research talk to us about the yield curve and how it might be turning around after being inverted for an extended period of time, the debt is still a concern, according to Dylan, even with a possible rate cut on the horizon. So the inverted yield curve means that the two years, the two year bonds, the interest rates are higher right now, because that's what the Fed is really pushing because of the debt that we have. And the longer term bonds, the 10s, the 30s. Those yields are lower, and how do we so when the Fed cuts interest rates? Do you think that'll just automatically invert the curve? Dylan Smith 8:56 Yes, so typically, you'll see an upward sloping yield curve. And the reason is because compared to investing your money for a short amount of time, so it's sometimes you look at the 10 year, three month or the 10 year two year, you can get kind of guaranteed returns on that very short bending and that's essentially pinned to the to the Fed funds rate and control what we call the front end of the yield curve. Now, of course, you could reinvest your money every three months, every one year, every two years, whatever. And on a consistent rate of return, depending on what your expectations are of where short rates are gonna go, right. So if you think that short rates are going to stay the same, absent anything else, you'd expect a dead flat yield curve, but you also might think that okay, but the economy is going to grow in the future classes inflation I need to be compensated for for those future cash flows. And that's what pushes the longer rates off. Right. And that's a normal situation. That's the kind of situation which says there is a In a growing economy in the future, and as for backspace, and this is all around us lending now on the future investment returns. But what we're seeing at the moment, actually, is that basically, bond markets are telling the Fed, we think short rates are going to be lower in the future. Which means no, we don't think growth is going to be so high that it requires you to have very tight policy and neither do we see major inflation was coming down the tube, that would lead us to put a premium on that, which would make the yield curve upward sloping. And so the way that that an inverse in that kind of situation is to bring down the front end, in other words, to mean revert the yield curve, the Fed needs to cut rates, right, and you do usually get the whole curve flattening a little bit. So we would almost definitely see the 10 year rate. With a three handle on it gets like 3.5% of the Fed cut down to say, between two and 2.5%. And that actually generates a very high return because of nonlinearities and hop on returns, which I won't get into now. But point being it is the fan who was uninvented the curve that are controlled along, and especially when they're not doing QE. And it was the Fed. Andrew Brill 11:21 Does it behoove the Fed to sell longer term bonds than the short the two year bonds? Dylan Smith 11:27 Well, since the Treasury who sells bonds, but one of the most massive and difficult to explain policy decisions that we've seen by Treasury, Secretary Yellen is, you know, during the period of very, very low rates, she did not issue at the long end, right. So she could have locked in a huge amount of government funding at 10 years at 30 years. For you know, 2%. And instead, the the fantasy shifted to shoulder shoulder debt issuance during that period, which is now rolling over. And so there's a lot of issuance coming into markets that needs to be that needs to be insured somewhere with rates being, you know, very elevated, it's not easy to win in that scenario. And so what that means is that the interest burden of the US government is going up and will continue to go up because that gets locked in as stuff rolls out, right. And so that's one of the things that's making minus a little more and especially on the longer end of the curve or on the Tanya raises some questions about, okay, how sustainable is government funding? If a you're going to be quite loose debts are already high, and you're increasing the cost to carry that debt? So, yeah, that is definitely a problem and a very big missed opportunity, not doing it previously. Andrew Brill 12:50 I have a question about the volatility of the market. Right now, the VIX, the volatility meter, or gauge, if you will, is right around 12, which is extraordinarily low. So not a lot of people worry too much about the market, but unemployment is creeping up. Last time, we saw something like this was right around 2007. And there was a very significant drop. Do you see that as a possibility? We there is a correction coming? We know that whether it's 5% 10%, whatever it is, could it be drastic? Dylan Smith 13:28 It could be I think how drastic it is depends again, on on news on the metal person seven themselves whether or not it's just people so tailing back or whether there's something that causes a rethink of ASB earnings projections for those companies and BA theme a little bit as they would have happened late 90s. Right, because some of the tech players and 2000. But yeah, I mean, in terms of what the VIX is telling us complacency. volatility is low, because everyone has decided on the narrative and history on the narrative every day. And there's very little that is changing that narrative right now. And so you just get a steady creep up and very little in the way of measured vol. It's not a coincidence that that happens just before times when we tend to get corrections in the market, because that always happens when our surprisingly, complacent investors get surprised. So it's not it's not the most reliable indicator. In fact, it was doing the doing the opposite of its job if every time it went down. But the longer it stays, the more it tells you about this kind of a bit of fragility building up into the markets. Andrew Brill 14:42 So last thing I want to talk about is the debt, almost nearly 36 trillion at this point. And with interest rates not coming down, we need to service that debt at a very expensive rate. Obviously a rate cut will help in a miniscule way and more more with death. really help? Where do we go from here, because neither one of these presidents is gonna stop spending money. Dylan Smith 15:06 More rate cuts help, as long as it's not seen as licensed to borrow more. So it all comes down to, to the fiscal policy that happened. And as we discussed earlier, that comes down to the balance of power after the election. But the the sort of bold fact is that nothing in this election campaign has been about consolidating the national debt, no party is running on the honest idea that the US needs to renegotiate its social contract, in order to manage down its debt. There are sacred cows that need to be locked down, which neither party has any interest in looking at, in which it will, to their credit, be very unpopular in election season to stop raising things like where to adjust for security, etc. But that's the only way, it's the only way and the the sort of buildup of of higher incremental cost of borrowing is already happening and will continue to happen. Unless the Fed flows rates to zero because the outcome is not possible. So it's a big reason for concern. Equally, you know, these, these things don't happen all at once it takes years and years for fiscal crisis to build up and develop. And so, you know, the line we're running is that the 2028 election will be run on the debt. And it's gonna take a whole whole build up. Now, as we've said, if Republicans are in control across the board, that is going to make that deterioration more rapid, more inflationary. And so you know, that's one outcome that we should be going for, but equally, you know, we don't see a way for cross party consensus to deliver a sensible and growth positive consolidation in the event of a Democrat won in the White House either, so it's gonna get worse before it gets better. Andrew Brill 17:02 Bitcoin gold and commodities were on Jay Woods mind when he joined wealthy on this week, he also talked about the expected market volatility during election cycles, and the evolution of the New York Stock Exchange. James Connor 17:18 So Jay, you are currently in your office, but you are one of the few remaining people down on the floor of the New York Stock Exchange? Why don't you give us a little bit of history about that, and how many people still work on the floor of the New York Stock Exchange. Jay Woods 17:31 Yeah, I was started the New York Stock Exchange 32 years ago, next week. And there were 5000 people, it was vibrant, yelling, screaming auction market, I was a big part of that. And then I was a big part of the evolution or some people say to D evolution as we lost that human element. So I've been able to transition through those times and pivot in my career, but the floor is not what it once was, is that that vibrant, Freezie place, but it still holds a very special place in my heart is my home. And, you know, home to our team down there freedom, as well as our team up here on the desk, where I'm talking to you from today. And yeah, the exchange continues to evolve. And unfortunately, because of technology, you don't need 5000 yelling and screaming people to auction and bid and offer every single share that trades. So we've seen the amount of people that headcount shrink, but those people down there, they still have a valuable role. Having human judgment, a point of sale, I think, is the most important thing you can have, especially during turbulent times. So the NYSC is, is a great showcase for our listed companies and those bells. And it's iconic. But the people that still work there, they they have a valuable role. And I don't want to, you know, poopoo that James Connor 18:46 I can't believe there was 5000 people at the peak, if you were to guess how many people work on the floor now? Jay Woods 18:52 how many people? I think the floor staff is just about 400. So we're sipping at about a 90 95% haircut. To put into perspective, when I was with Goldman Sachs during most of my career 2000 to 2014. We had 330 employees as market makers. When Goldman left the operation in 2014, you add technology in Vail increasing and then a financial crisis, there were major layoffs. And we know what happened with bear and Lehman Brothers. We went from 330 people down 15. So I was able to adapt and adjust and change and survive. But now we've been able to pivot and I get to talk about the market, talk about some of those great experiences and still get the hang my hat or in this case, my smart down at the trading post down at the New York Stock Exchange. So it's still still a great place. James Connor 19:42 So I'm gonna get your thoughts on the broader indices now the s&p and the NASDAQ. They're doing very well. It's like they're making new highs every day or every other day. What's your sense here in the coming months? Do they continue to grind higher? Jay Woods 19:54 I think they do. But I think there's some volatile times ahead. All right, first of all yellowfin and The room is the election and we have in the United States, we are going to add one add coming election, it's already off to a glorious start. We still don't know the final candidate may be on the Democratic side, hey, we don't even know if the Republican candidate may make it. He looks like he will. But during election cycles, you will get pockets of volatility heading into that election. But once you get to the election, you tend to finish the year, strongly the fourth quarter and election cycle, we get a decision we get decisiveness to let's go back to 2016. In the US controversial election, everyone thought Clinton was going to wait, who was Trump and the future that night were down dramatically. We opened lower, we went higher, we kept going to the end of the year 2020. Another controversial election, one that some people still denied, but I can't deny price action price action bottom on election day, and we went higher. We even made a new AI two days after the January 6 Riot. So the politics while they'll make headlines, I tell my you know, I tell customers here just put on earmuffs you want to block it out. You want to focus on the action. And historically the trends are set up that we do well. But before we get to that November election, yes, August September, the two worst months of the year, the last 10 years, August, September have only been up four times. And they're down a little average. I think it's 1.7%. I had my intern doing that research for me. I have not verified his work yet. But I just know that always to September, from a seasonal pattern, the two worst performing months of the year, October one of the most volatile months of the year, we get most of our bottoms happen in October. And I think the stage is set. You asked about the s&p and the Nasdaq both having tremendous years. All right, we get an average of three 5% pull backs all year in the major index the s&p 500 we get an average of one 10% correction. We have not had a day where we got to down 2% in 345 days, I think there are going to be pockets where you're going to get that pullback they tend to happen in August. I don't know why. But you know, maybe it's because everyone's going away. No one's paying attention. But I think a 5% retracement that will be normal will get you back to you know 50 to 50, 5300 the s&p 500 as we crossed 5600 as we tape this, that will sound dramatic will make headlines. But as someone that follows long term patterns and long term trends, these are normal occurrences. But when it happens with the backdrop of political rhetoric, then he takes on New headlines. But I think we are going to see some earnings guide us and people will be selective of where we go. I still think the financials should be in good shape. But there will be pockets and when stocks have missed or not guided while we saw this in the software stocks, when they haven't had a good AI story in the software stocks, they get punished. Now they're rebounding. They're coming back pretty nicely. But we've seen some extreme volatility around earnings, especially in the tech sector, when they don't perform up to standards. Look at Intel. Look at what Adobe did look at Palo Alto Networks. They're coming back. But man were they beaten down for you know, week or average guidance compared to some of their peers? James Connor 23:16 And do you have any thoughts on Bitcoin or gold? Jay Woods 23:21 Yeah, well. Gold is one of those head scratchers. I am not a gold bug. I'm not a gold expert. He has a tremendous run tackle. He's broken out long term. It looks fantastic. The inverse relationship that a hedge you know, I thought Bitcoin was supposed to be a hedge when technology wasn't doing well. But now five of the max seven if Allah in the video is almost there, again, six of them are making all time highs and Bitcoin is breaking down. I think Bitcoin will do well, under both administrations. Biden has done some things to make it friendlier. Trump is now on the Bitcoin bandwagon as well. But no, we don't follow. You know, cryptocurrency here at Freedom. So what I look at is I look at the technicals and then I know it's broken down, you want to see Bitcoin recapture 57,000 And then you could possibly have a like higher into the mid 60s. But overall, for people that said this was the inflationary hedge. Yeah, he never is active consistently for me to give it much credence. As far as gold goes, gold looks fantastic. Copper looks great. You're seeing a lot of these you know, materials that will be harder the AI story that helped build the infrastructure like a copper like uranium doing well, and then I think the utilities there is a story there. They're going to need that power. They had a nice little run off, they pulled back they're probably set to rally as well. If we can run this rally out here and like I think we will. James Connor 24:49 Yes, Bitcoin is interesting because we were always told it was a risk on type of trade and we definitely have a risk on market right now just keeps ripping higher, but Bitcoin keeps going lower. So it's going to be Interesting to see when it comes to that. Andrew Brill 25:01 Well, the UN's friend Jon Najarian of market rebellion joined Anthony Scaramucci on speak up this week and reflected on learning the options trade and explain how he goes about finding options to trade. He also spoke about the pressures that crypto was facing versus the stability of gold. Jon Najarian 25:21 You are willing to adapt and adopt. And that's what I have, for 42 years. In my investing career. Anthony Scaramucci 25:30 Jon it was scary and it was painful. And I'm going to show you something that I think you'll get a kick out of, and this is for viewers and listeners. This is stuff these are notes that I wrote to myself in 2022 when I was dying, okay, and this is a note to self. When you're having a bad time in life, pick up the phone and call your friends like Jon Najarian. Okay, so you were always kind of me and my rough moments of my career, I think it's very important for people to remember they can get through these rough moments as investors or as people who built a number of very successful businesses, you love the options markets. You are you've invited people to learn about those through you and your brother, you've you've put out books related to this. Please give us a sense for why you love the options markets. And why should individual investors be attracted to options? Jon Najarian 26:26 Sure, happy to number one, they can define their risk when they enter. When you buy a stock, or a crypto for that matter, you have unlimited upside, and limited only to zero on the downside. And most of us need to pay more attention to those risks rather than the potential rewards. So when you buy an option, that's all you can lose. So you're just trading a somewhat perpetual instrument like a stock or a crypto, you're trading that for something with a defined timeframe, maybe it's a one week option, maybe it's a six month option, maybe it's a one year option, but you can define your risk when you enter the trade. Rather than saying, Gosh, I'm really feeling the pain, I think I should get out. Now. As we both know, if you did that in 2022, you got out for 18,000 bucks per Bitcoin. And then they rocketed this year to $73,000 or higher. So you don't want the market to take you out, you want to decide when you're going to exit. And you get these blinders on Anthony, when when you're experiencing those losses. Sometimes the loss is you know, a personal loss like a father or a brother or whatever. Other times it's financial loss. And those blinders keep you from seeing all the other good things that you could be doing at that moment. So options, I think, let me define my risk. And let me get a leveraged return on my investments so that I'm not just making, you know, 3% 4% Those are great. But I want to make 30% 100% or 10x, those kinds of things. And you can do that with options. Anthony Scaramucci 28:18 And many years you're doing this Jon Najarian, how many years? Well, Jon Najarian 28:22 I started in 1981. So for an awful lot of you watching Anthony's show, here on wealthy on that is a long time. 42 years, 43 years. That's a long time. This will be my 43rd year in October, and I'm delighted to be doing it still. I'm excited by it. Again, there are always things that I can morph into. I can trade options on Bitcoin or Aetherium. I can trade futures on those, I can trade and ride the Nvidia and AI wave. I mean, all of that is exciting to me, Anthony. And as you know, we get to basically tie in any news in the world, whether it's politics, whether it's commodities, whatever news that's happening in the world, it's impacting one of the stocks that you and I trade, and that's what makes it also interesting, and keeps your brain you know, rolling along rather than just turning into mush. Anthony Scaramucci 29:25 You know, I'm saying this for a reason, though, John, you had the enthusiasm of a 25 year old that just entered the space. So what is what's the lesson there? How do you keep yourself game ready? How do you keep yourself enthused? You know, to for me, it's always the newness of the markets. You know, I feel like you and I are in the business of constant involvement and constant understanding of the shifting currents of business. What is it for you? Jon Najarian 29:56 It is that. It's applying whatever the expertise that again, professional traders like Anthony and I have accumulated skills over these years, you know, to use the Liam Neeson quote from taken or whatever, I've acquired a certain set of skills that make me very dangerous to people like you. I love the idea that I can be excited by the different angles that I can attack a given investment Anthony. So for instance, AI, I love AI. I love micron, I love ARM Holdings. I love super micro computer. I love so many of the things on the AI side of it. But what else is there out there? Well, that's the job of people like Anthony Scaramucci, and Jon Najarian to go out there and figure, okay, it's really thirsty for energy. So what does that mean? That means I need something like clean energy like nuclear, I'm going to invest like crazy, these stocks are up as much as Nvidia is up Camco, which is a uranium producer, it's up 7x, seven times what the price that it was just a couple of years ago, I'm going to be buying a lot of that I'm going to be buying a lot of nn e this is a micro nuclear reactor. And some people might say micro nuclear reactor. What about terrorists and things? Nuclear energy is very safe, super clean. But of course, there are issues. And one of the issues is you know, to get these things permitted, takes decades to get them built takes decades. Well. So what if you had something that's the size of a Generac? Generator, you know, in other words, a large file cabinet that could basically generate all the power you need for a facility like the one behind me, the one that I'm sitting in right here, CBOE global markets, what if you could do that? That's what a lot of these companies do, Anthony. So data centers have, you know, VRT and these big data data centers, those are the areas that I'm exploring, and I'm investing in because of AI, because AI is pulling from all these sources of information around the world. So AI would know before we do you know that Kazakhstan just put a big premium on, for instance, uranium extraction in their country. What does that mean? Well, supply and demand still drives, prices. So if you have less supply and more demand, I can tell you where the prices are going. So AI could figure that out faster than you and I could, and AI would be reacting to that last night, when that came out, rather than today during the day after these uranium stocks have popped just as one example. Anthony Scaramucci 32:55 Right. Good point. All right. So we're both crypto enthusiast. So you tell me, what's going on in the crypto markets? What's going on with Bitcoin feels like Bitcoin hit a wall just above 70,000? It's backed off into the 50s. Should I be worried about that as a crypto investor? Should I be buying here? What's your thoughts? Jon Najarian 33:18 Well, just like you, and I keep saying that in this interview, folks, but there's, there's only this much separation between Jon and Anthony, and how we grown in our career. Anthony Scaramucci 33:30 You're like six foot six feet taller than me and you have 50 pounds more muscle than me. You're the type of guy if I walked into a bar, I say where is that guy's girlfriend, I gotta stay as far away from her as possible. So I don't want to look through the window with a bar. Go ahead. Jon Najarian 33:48 When I'm looking at what's going on in the markets and things like that, I really focus in on risk versus reward. Like I said, at the top, I think that's one of the most important things that we have to do is focus on that risk versus reward. You should always ask yourself, folks, how much can I lose? Not how much can I make? Because we can make money and a monkey can make money. My dad was a surgeon and he used to say, Anthony, I can teach a monkey to do surgery, but it's knowing what to do, especially when things go wrong. Anthony Scaramucci 34:24 I'll remember that Najarian the next time I have a surgery I'll be thinking of a primate. Jon Najarian 34:29 Exactly. But I think that there's so many angles that we can take with investing and with crypto, I think crypto, I was a seller over 70 I bought it back last week when it broke down to 55 or 54. I never buy the bottom. I never sell the top. So I'm not telling you that I did that folks. I sold it a little over 70 I bought it back at like 58 on that short position. And now Would I be adding in the mid 50s? Yes, I would. We're talking about Bitcoin to USD to the US dollar folks. Yes, I would. But I do think that the mount Gox issue is a big issue. I think that we've got mount Gox those coins $9 billion worth of bitcoin that was on those on Mount Gox. On that exchange, if you will, they're going to be given back to the people that rightfully owned them. They'd been locked up for a decade, as all this works its way through the courts. So do I think that that's pressuring I think at least people believe that it is pressuring the markets? Because many of those people own these coins from pennies? Maybe even, you know, single digit dollars? And now it's $57,000? Would you think that some of those people would be so grateful to finally get their coins back that they might be taking profits? That would be what I would think, Anthony? And I think that's the overhead pressure that's pushing down on Bitcoin at this time, and the sentiment that that could be happening, whether it does or doesn't, that's the sentiment right now. Anthony Scaramucci 36:14 Okay, I'm up against that, though. Let me get you to react to this. There's 16 or so billion dollars of cash that's going to be dumped on FTX. These are the former account holders of of FTX, sandbag and freeze firm. What do you would say you to that? Jon Najarian 36:34 Well, again, giving people what was rightfully theirs, and unfortunately, you know, I try not to leave my coins on any exchange folks, I made a mistake and did some of that with the FTX situation. Shame on me for doing that. But now that those of us who did that are getting some, probably not all but some of that money back. Again, that was when Bitcoin was in the, you know, certainly less than 30. And it was in the mid to low 20s. And falling when when Sam failed, and it was failing. Because, you know, people just didn't believe that one of the biggest exchanges on Earth for cryptocurrency could possibly be a fraud. And unfortunately, that's what he was convicted of. So I'll call him a fraud. Hopefully most of us get a very good portion of our money back. I know you were a big believer in him, Anthony, and Anthony Scaramucci 37:39 My business to him, you know what I mean? Jon Najarian 37:42 I was too. So, unfortunately, and a bunch of big Silicon Valley firms, like Sequoia and others were big believers in Sam. He played a great game, and he made it look like he really was everything that people projected onto him. Andrew Brill 38:03 Thank you for watching this week's recap, don't forget to head over to wealthy on.com for a free no obligation portfolio review with one of our registered investment advisors. And please follow us on social media for the latest news and information to help you invest wisely. If you haven't done so already, please make sure to like and subscribe to our channel and don't forget to turn on the notifications so that you never miss a video. Thanks again for watching. Until next time, stay informed, be empowered, and may your investments flourish. 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