Consumers, Inflation, and the Great Wealth Divide | David Lin | Speak Up with Anthony Scaramucci

David Lin  0:00  
If you take a look at the Federal Reserve data, the wealth gap has widened. Let me just pull this up. So I don't want to quote wrote wrong numbers here. But the wealthiest 1% has seen their See, look at this distribution of household wealth people want to Google this themselves distribution of financial assets. So the top 0.1% now own $19.9 trillion worth of wealth, the top 1% and $24.6 trillion of wealth, the bottom 50% own $3.6 trillion of wealth, the top 0.1% now own more wealth than the bottom 50% combined.

Anthony Scaramucci  0:43  
And so joining us now on SpeakUp is a fan favorite and my favorite. David Lin. David is the founder and host of the David Lin Report. Welcome to speak up. David, let's start with your background a little bit in telecoms, energy, ETFs, etc. Tell us what the David Lin report is for those of us that may not know you.

David Lin  1:05  
Thank you very much, Anthony, big fan of your work. So I'm very humbled.

Anthony Scaramucci  1:09  
The hair is absolutely fantastic. I mean, a little bit of hair jealousy. It's rare. It's Lin is rare for me to have hair jealousy. But I want you to know, I'm expressing a little bit of hair jealousy today.

David Lin  1:20  
Well, look, I need hair gel to get up to your level, whereas you just look naturally good. So some of us have to work hard. My backgrounds, the David live report. For those of you who haven't seen my work, it's a it's a channel dedicated to finance and economics. And that is my background. I started my career working in finance at a firm called BCA research. Did macroeconomics research for five years that was in Canada, then I moved to another channel called Kitco did that for a couple years. Once I started to grow my own audience, I decided, well, let's do this on my own. I wanted to be an entrepreneur, working media eventually grow the brand into multi multi sector company into financial products as well. But for now, it's just media. And I'm on YouTube. I currently have 160,000 subscribers averaging between 2.5 million to 3 million views a month. And I felt focused on all asset classes. The goal is to educate the audience about finance, economics and investing. Sort of the purpose of your show as well. I think we have a lot of similarities. 

Anthony Scaramucci  2:20  
You do a phenomenal job. You don't get incredible following and let's face it, I'm trying to they don't call me the mooch for no reason when I'm trying to mooch off of your following. I'm hoping your fan base gravitates over here.

David Lin  2:33  
You're very humble man Anthony, everything you've achieved you mooching off me.

Anthony Scaramucci  2:39  
I'm mooching off David Lin and the David Lim report. So, so tell the audience about the macro situation. Where are we right now? in the macro economy.

David Lin  2:51  
This is I think the biggest theme, at least for me is disinflation. And now there's a big debate out there as to whether or not we're gonna get continued inflation, higher inflation, sticky inflation, or price is going to stay where they are come down, which is deflation, I think it's going to get disinflation, which is what basically that means for the audience watching it's it's a lower rate of growth of, of inflation, that doesn't necessarily mean overall, on an aggregate basis, all prices will come down. But we're seeing that today, just today, I was looking in the news, Walgreens is announcing price cuts on 1500 items they were cutting, for example, they're cutting up vitamin prices from about 13 bucks to 11 bucks. This follows us last week target Amazon announced similar price cuts on their, on their grocery items, Amazon, for example, cutting grocery items by up to 30% on their online stores and in their brick and mortar stores. So we're seeing big price cuts across the board at big box retailers. What does this mean? While it means other price other other stores are likely going to follow it means that the stores are losing purchasing power. And it likely means that they realized consumers aren't going to be spending their money unless they sacrifice a bit of their margin so we can express we can expect possibly a bit of EPS compression by the next quarter. I think disinflation is going to be a theme. The Fed hasn't seen that yet, because it hasn't been these price cuts haven't been reflected in last month's CPI. big component of the CPI as you know, as energy which has been strong owners equivalent rent, which has also been strong, it's been coming down, but it's still relatively sticky upwards. And so the CPI on an aggregate basis is still pretty high, as you know, above 3%. But I think if you take away energy if you take away some of the other essentials like rent it for example, let me health care. I mean health care is never going to come down tuition is ever going to come down if you take away those components. If you look at what people are actually buying on the ground, groceries food, those things are going to come down and why was CPI strong to begin with in the first place in the last couple of months. We have things like auto insurance go up, we have things like home insurance go up, those things aren't going to go up forever. So as the CPI relaxes a little bit, the Feds gonna have a little more leeway to cut rates further down the line. Macro shocks obviously could push this in the other direction. We've seen shipping rates go up earlier in the year as the Houthis attacked the Red Sea. Now, what does this mean for inflation? Well, it means regionally around Europe, inflation could see a shock if that goes up again, actually, that it did go up. If you look at looking at the Financial Times, there was a chart showing shipping rates just spiking up randomly in the last couple of weeks for seemingly no reason or No, I don't think the Hutus were involved this time like they were early in the year. But look at what the ECB is doing. Anthony, the ECB. Just today, the head of the Finnish Central Bank announced that it's likely they're going to cut rates by June that's coming up. And so if you get a big macro shock, like, you know, something happening in the Middle East that could push up oil prices were or could push up shipping lane rates. The ECB is about to make a big policy mistake. So disinflation is a big theme for me this year. We haven't seen a recession yet in the US. But layoffs are rising, the unemployment rate is now 3.9% in the US. And if we consider the possibility of further pricing, power loss of these big box stores that we're possibly seeing, you know, next thing that's going to happen as bodies are going to roll layoffs are going to happen some more, that could put the economy into more of a slowdown.

Anthony Scaramucci  6:32  
So I mean, all of this stuff I basically agree with and one of the things I track and I'm sure you track it or aware of it is something called Trueflation Tru flation. And if you go to trueflation.com. It's a decentralized way to get inflation data from the overall market. And so what they do is they send out tremendous amounts of tags to people to report prices around the country at the gas pump in the food supply chain, if you will, the grocery stores, etc. True inflation.com has two statistics, I want you to react to both of them. Sure. Statistic number one is the US dollar has lost 25.44% of its value since January of 2020. So the inflation that was inducted into the economy as a result of lacks monetary policy and tremendous fiscal stimulus has cut us purchasing power by 25%. It's also had, you know, effectively eliminated 25% of the US debt because that's what inflation does in terms of real terms. And when you select the nominal debt out there, but you have that kind of inflation, you're wiping away a swath of it. I want you to react to that. And the second piece of data is I logged in this morning in preparation for our interview. US inflation government reported inflation is 3.4%. But true flesh in his Senate saying it's only 2.6, which is consistent with what you're saying is there, it's more real time and they're probably picking up some of those big box grocery store price reductions that you're inferring their trend line is down, they expect this true flexion number to go to one and a half percent over the next 12 months. So number one, I want you to comment on the loss of the dollar value of the dollar. What does it mean? Yeah, and then number two, if you are the Fed chair, empowered with this data, what would you do?

David Lin  8:39  
OK let's start from number one first, loss of purchasing power only affects the bottom 50%. What it basically means is that we have a widening wealth gap. What do I mean by that? Anthony? Well, what happens when we have inflation? That's wiping out the purchasing power of your dollar it means we also have asset price inflation, the stock market's Bitcoin, as you know, Kryptos went up a lot more than 25% of the wealthy 50% of the population. Well, it's really just the wealthy 10% who own assets, they're getting wealthier, their net worth has increased by more than 25%, they can afford the loss of 25% down on their purchasing power. That doesn't mean much to them. Actually, this is backed up by real data. If you take a look at the Federal Reserve data, the wealth gap has widened. Let me just pull this up. So I don't want to quote real raw numbers here, but the wealthiest 1% has seen their see look at this distribution of household wealth that people want to Google this themselves distribution of financial assets. So, the top 0.1% now own $19.9 trillion worth of wealth. Now, the top 1% own $24.6 trillion of wealth, the bottom 50% own $3.6 trillion of wealth, the top 0.1% now own more wealth than the bottom 50% combined, that wealth gap was not this wide 10 years ago. So with the loss of Purchasing Power, from inflation comes the rise of assets that will make the wealth gap wider. That's the first thing that that we have to be aware of is that with the loss of purchasing power doesn't affect all equally in effect. What comes as a result of that is actually more beneficial, I believe, to those in the top 1%, who actually own financial assets to your second point, what would I do about the Fed? Well, first of all, the Fed has a mandate to look at official data, not true inflation, not real time data, not, you know, data by other agencies and organizations and economic economists, they have to look at their own data and their own data is unfortunate, like, unfortunately, legging. So to answer your question, I wouldn't do anything because I can't look at that data to react to it. But what I suspect may happen over the next couple of months is that the CPI data released by the BLS will slowly catch up to what you're probably reporting right now, which is true. Flexion. So what I'd react to this right now, if I were doing Powell know, what I start reacting to it if the PCE, the core PCE, as reported by the VA starts coming down above, a below 2.5% Possibly, but again, I still have a 2% mandates region that we're nowhere close yet by either headline CPI metrics, or the core PCE metrics. So the answer to the question is unfortunately not much.

Anthony Scaramucci  11:28  
Okay, so I mean, these these is great commentary and I think this is exactly the reason why people look at the Linde report people come to wealthy on to hear people like you and this is, you know, this is these are the concerns let me feather and more concern and get you to react. We have a geopolitical situation I, I sort of call it the unholy trinity of geopolitics. We have the Hamas Israeli Gaza situation with the Ukrainian war with the Russians where it's spreading. I think you have to be honest about that if McCrone the president of France is suggesting that we're going to use West Ukraine is going to use Western weapons, and use those weapons on Russian soil. What does that mean for the war. And then the last piece of this, of course, is the military exercises in and around Taiwan and the flex going on from the main land relative to the democracy in Taiwan. So I want you to react to those. And I want you to tell me what you think is going on in terms of the marketplace? How is it affecting the market?

David Lin  12:39  
Yeah, so I'm not a geopolitical expert. Just as a disclaimer, I think there's a lot of other people more qualified to analyze these issues in more depth than I am including yourself, by the way, Anthony, but I will answer your question from somebody who observes the markets. And somebody who's interested in how geopolitics affects markets. Let's break down each of these components one by one. So Hamas, Israel? Well, the the Hamas, Israel war has kind of subsided. What we're concerned about right now is Iran, Israel, a recent escalations have have been, I would say, just posturing. It hasn't amounted to real damage on either side. And I don't think either side wants to escalate, what does Iran want, they want, they want to maintain their their current oil production at at the current prices. You know, obviously, they would do better if prices were higher, but price higher prices probably imply outright war, which they don't want. They don't want any disruption. They don't want the US to be involved, many more than they already is. So I think that for now, what we're likely going to see this is from my conversations with actual geopolitical scientists. We're unlikely going to see further escalation for now. On the on the issue of Ukraine and, and Russia. Yes. So Russia has said that they're likely going to war. They're interested in testing tactical nukes on the battlefield. I mean, that again, Russia has had a history of using, you know, nuclear weapons as a scare tactic. It's part of their it's part of their vocabulary. I wouldn't read too much into it. What is what is interesting, though, to me, is NATO conducting war games on the border of Russia, preparing for a possible invasion. I think that's just the West, again, posturing that they're not willing to step down either. So no immediate signs of a de escalation. And just yet what I follow more, because I'm born in Taiwan is the Taiwan China crisis. There are not issue not so much crisis. The new president was just sworn into office. Lai Ching Tae Hee is part of the party that wants independence. He has called for meetings with Xi Jinping several times. These meetings have been rebuffed. They have no interest in meeting with him. He has no interest in the president, the new president of Taiwan has no interest in reunification. So it's kind of a stalemate, nothing's really changed. He's going to be sort of just following the policies of a PRET of his predecessor. So I wouldn't see his inauguration, its office as an escalation of tensions is more just a continuation of the status quo. It'd be more interesting to see how the next president either Biden or Trump reacts to this. And I think that would probably be the bigger issue in both presidents are both Biden or Trump would be a second term president, as you know, that could actually mean that they could be more hawkish than foreign policy stance because neither of them are interested in a reelection. They are more concerned about actually getting things done, which means put probably take higher risks. So evaluation right now, is that no de escalation for now. But for me, at least, I'm not seeing any signs that the marketplace is really going to be worried about this just yet. Stocks are still hitting new all time highs. oil market is not pricing in any significant geopolitical shocks right now. It was earlier, but it's come down since so I don't think the market is too concerned. And right now neither in mind.

Anthony Scaramucci  16:07  
Okay. I mean, very, very good summary. You're a Buffett and you're a Munger watcher. So tell me where we can learn from them. And when you talk about bulletproof investing, what can we do to make us bulletproof today?

David Lin  16:24  
Buffett and Munger okay. Yeah, I interviewed a lot of value investors. I've never had the chance to interview Buffett and sadly, I'll never have the chance to interview Munger but you know, I spoke to a psychologist yesterday and I just want to share a piece of what he told me this is Robert Cialdini I'm if you read his book, Anthony psychology, persuasion, influence, and Munger, actually, when he read the book, and in the 90s told a Harvard commencement class that in a speech that everybody I'm paraphrase, but everybody should get a copy of influence everybody needs to pass it on to their friends, family, children. Apparently, Munger was so impressed by this book. And apparently, according to chow Dini, who told me on the interview, it made Berkshire Hathaway so much money by chapter two or chapter one, that Munger actually sent him one class a share that shout Dini still holds today. And I asked him, What does Buffett do that perhaps other fund managers should learn from? He says, every every annual report on the first page, first thing they do is list the mistakes they made the previous year, they said, these are the mistakes we made. Okay? We're going to learn from this mistake, we're never going to repeat this mistakes. And then importantly, he bridges that into the successes they've had in the previous year, the things they've done, well, what is this do this, according to chow Genie, allows people to gain trust. This is not a management team that is beyond his own ego, he doesn't have an ego, he's going to learn. And he's going to he's going to make everything better for shareholders, at least that's the image that this kind of messaging projects. They also use words like family, like, you know, the treating shareholders like a family member, it brings a sense of unity. It brings a sense of togetherness, Chow Dini said he never sold that share. Because that reason also, because I'm pretty sure the shares done well. So that's probably another reason. But Buffett does a lot of things that he calls one of the pillars of persuasion is reciprocity. So what's what's what people do for him, he'll try to do for others. That's one of the pillars of persuasion that I think that has made Buffett very successful, at least according to chow Dini in his book, what else? What else do okay? stepping aside from the psychology aspect, what do we know about Buffett's investing style, one of the things that strikes out to me is that he doesn't buy things until he claims that he or his team fully understands it. For the longest time, as you know, he's missed out on Apple. Right? And there was actually, I watched a CNBC interview awhile ago, where somebody, the reporter asked Buffett, why didn't you buy Apple? Do you regret not buying the stock? And he said, Well, of course, you know, looking back, I regret missing out on the gains. But, you know, I don't regret being on a boat, or captaining a boat. I don't feel confident enough to be the captain that in other words, he doesn't he didn't know the stock well enough to actually own it. And now as you know, it's one of the largest holdings. So has he missed out on gains? Yes. But this approach to investing has limited his losses as well. Thanks. So many people rush into things not fully understanding it. You see that in the crypto space a lot. You know, you're an expert in the crypto space, a lot of people rushing into things they may not understand. And granted, it's a difficult space to understand. But I think if you actually just take the time to learn more about which project or asset you're buying, you may actually have a lower chance of realizing why assets. That's something we can learn from Buffett, it's not just value investing. It's his approach to risk management that we can all learn from and the value investing is self explanatory. He buys things that he believes are cheap. And you know, there's various approaches to how you can evaluate an assets valuations relative to its peers. But I'd say I will say what stands out to me is his is reluctance to jump into something that's new and hot

Anthony Scaramucci  20:26  
was spied 20 years ago and the you'll enjoy the story I got a call from. So I used to have a relationship with my first ra with fidelity and they had me in their advisor referral program and there was an Asian gentleman living in a sort of one of those one story ranch houses in western Westin, w e. S. T o in Massachusetts. And they I flew up, I took the shuttle up there, I drove to the guy's house. I went into his living room was a very modest home. And he said that he saw me on TV wanted to ask me for some out, I said, Okay, great. What would you like me to do for you? And he said, Well, give me a second, he went upstairs. And he took out a statement that he had from Charles Schwab. And he had a, and this was 20 years ago, he had a half a billion dollar. And I'm going to repeat that he had a half a billion dollar position in Berkshire Hathaway, he had bought the position in 1968. It was 30. CD 42 years later, yeah. And he had a half a billion dollar position. Now, if he had kept that position, it's one and a half, or almost $2 billion today, man was at a seven he said, you know, what should I do with this? And I looked at him and I said, nothing, you should do nothing with this. And you should, you know, the smartest thing you can do sometimes in life, David, I think, you know, this better than anybody is nothing. You know, the the emotions and the whims that we carry with us in life in our primordial brains, could knock us out a great investments. And so, I wrote to Buffett in 1997, I use the noon diplom of my daughter, Amelia, who was 18 months old at the time. And I said, Mr. Buffett, I just bought a Class B share, because we didn't have the money to buy a Class A share at that time, even though wasn't really that much. 15 or so 1000. And I said, what what advice do you have for me, I have a life expectancy of 84 years. I have 82 and a half years left, which I can hold your stock. Buffett wrote back, I have the letter framed in my office and he wrote back and said I, I think your decision to own the stock for at two and a half years is a manifestation of short termism. My own intention is to hold this stock for 100 years. And I love telling people this because if you change your mindset about investing, and you make it way longer term that other people think you have a material advantage over them. And if you could take your ego and you could take your emotions out of things, you have a material advantage over them. Let's go to crypto for a second. You're a crypto enthusiast. What do you think? What's happening in the world of crypto?

David Lin  23:23  
I think governments are starting to possibly for political reasons, possibly because for financial reasons, but starting to warm up to the notion of crypto, the ETF for eath was just approved. You know, Donald Trump himself just said that if he were president, he would ban CBDCs. And he would not you know, he would I think I think what he said was he would I'm paraphrasing here, but something about Elizabeth Warren's crypt anti crypto army and, you know, stopping her as well. The Democrats are probably going to look up to this and say, Well, look, we've got to catch up, or we're going to lose the young votes to to the Republicans. So I think it's going to be I think, you know, maybe maybe you disagree, but I think it's going to be a race to see who gets more of the crypto votes by November, and we're gonna see more lacks policies were more policies lack, relaxing around regulations in the US. I think that's for me the biggest development and biggest change that's going on in the marketplace right now. We know about the Bitcoin ETF that launched, by the way, greyscale GBTC, was just surpassed by the Blackrock Ibet in terms of size, so that, you know, shift there. What we're seeing also is the emergence of wow, I don't think this is necessarily new, but I think this is going to continue the emergence of use cases in layer ones. Outside of traditional banking, we're looking at gaming as a big development we're looking at We're looking at tokenizing real world assets as a development that more people will start to use. And what I'm interested in I don't think anyone talking about this, at least not as much is how AI and blockchain will be intertwined in the future. Imagine a world. I was just thinking about this last night, imagine a world in which a robot hires another robot to perform a service, it's not entirely implausible that let's say, a, I don't know, a robot needs service, and needs to be repaired and goes to a Robot Repair factory service by other robots. While this is completely automated, how are they going to transact? How are they going to? Are they going to use any currency at all? Are they going to credit themselves? Are they going to? Well, it wouldn't make sense that they would probably use some sort of some sort of system whereby they can track it on a ledger. It's immutable. So the robot can just change the code and, you know, do some funny business with a transaction. It's relatively decentralized, so that they can, you know, operate amongst themselves. And it is relatively relatively liquid. What did I just describe Anthony? You know, a number of Kryptos could fit that description. So I think I think technology is going to create, yeah, technologically new use cases.

Anthony Scaramucci  26:32  
So no one's ever answered this, that I'm aware of. And if you are aware of somebody, you know, helped me out. What if a robot can experience pleasure? Where a robot can experience more broadly feeling? Is that possible? Could that ever be possible? And if it is possible, what happens to the behavior of AI? If that could come to pass? 

David Lin  26:58  
I think we have to get a neuroscientist on the show to answer that better. But from what I understand my limited knowledge of robotics and neuroscience says that feelings are just electrical signals passed on to the brain, I suppose in theory that could be replicated. And

Anthony Scaramucci  27:16  
Thats my point, if that's what it is. I mean, I, you know, I'm getting great pleasure out of this conversation, David, but there are other things in my life, that gives me even more pleasure. And I think you know, where I'm going with that, what happens if the robot ends up like that? What, what happens to the society? See, I just think that we are. So early on all this stuff, we don't really know where this stuff is gonna go. And obviously, I accept Elon Musk position that these machines will be way smarter than all of collective humanity over the next 10 years, I accept that. I'm just wondering if it if it adopts or adapts into something that we're not,

David Lin  27:56  
I don't think, I don't think a robot needs to seek pleasure. I mean, think about what happens when we go out and see pleasure, we have a dopamine rush, we feel good afterwards, we have chemical reactions that will will trigger certain reactions in our body. You know, it's a psychological need to seek pleasure to basically for a lot of different reasons, for physiological reasons, the robot doesn't have a need for any of that. 

Anthony Scaramucci  28:21  
That's true. 

David Lin  28:22  
I don't, I don't.

Anthony Scaramucci  28:23  
So I'm just throwing that out there to get you to think about it, my friend. Okay, so let's, let's go to some audience questions. Okay. 

David Lin  28:30  
Yeah, 

Anthony Scaramucci  28:31  
generous with your time and I want to keep plowing ahead, if you don't mind. 

David Lin  28:34  
Sure. 

Anthony Scaramucci  28:35  
How do you look at reliance on charting and technical frameworks for Bitcoin with the ETFs? Doesn't that change the dynamics of technical movements in price? And have you changed your technical analysis for Bitcoin based on that this is Rich from Florida. So thank you, Rich from Florida Its a good question.

David Lin  28:53  
Yeah. Several parts of the question. Let's, let's answer one part at a time. How do you look at the Reliance at charting and technical frameworks for Bitcoin? Well, the reliance of charting and technical frameworks is the same for any asset class. So if you're if you're if you believe that charting and technical analysis works for stocks, and it should also work for Bitcoin, I'm not a technical analyst. I've interviewed several technical analysts. You know, I'll let their track record speaks speak for themselves. I don't. I don't personally understand charting enough to use it for my if I were investing in, you know, we're trading I would look more at news events, because I understand again, going back to what we talked about for with Buffett, I don't understand charting as much as I do, understanding that Bitcoin reacts to demand shocks from the Bitcoin ETF that makes sense to me. It also makes sense to me that there could be a Bitcoin shortage of mining production, if demand for ETF continues to grow at this current pace that makes sense to me. Looking at technical patterns and how char has behaved in the past just doesn't. It's not something that I fully understand. I have actually interviewed Eugene Fama who is a Nobel Laureate in economics. And I asked him about technical analysis and he called it rubbish. His partner, Kenneth French, no, not not. KENNETH French Eugene Fama told the story, he said, one time he was in a school and he walked into No, this was he was telling a story about somebody else. He walked into a room of faculty members of the school. And they he said, Okay, guys, I got this chart here, of this price of some asset here. And it's based on these technical patterns. What do you think the chart is going to go next? And, you know, people had a bunch of, you know, answers. And they had a discussion at the end of the discussion. He said, Well, look, I just made that up. These are just randomly made up numbers just to prove a point that none of you know what's going to happen based on past predictions, or past results. So that's one side of the argument reliance on technical framework. I'll leave it up to the audience to decide it works for some people doesn't work for others. What were the ETF? Doesn't that change the dynamics of technical movements? And no, it doesn't? Because the ETF is not okay, well, doesn't change the dynamics of the technical movements? You're adding another layer of demand? It doesn't change the technicals at all? It all it does. All it does is that you have more news to factor in. But if you're a pure technical analyst, you would argue you would make the argument that the price reflects all news to begin with. So it doesn't matter how many more layers of fundamentals you add in the price is always reflective of those news, assuming we have a perfectly efficient market, whereby the market absorbs all information. So no, it doesn't change the dynamics of that because the price factors in the ETF news. What's the last part of the question? How have you changed or technical analysis etc? Based on that? I think I've answered that already. In the first part, so 

Anthony Scaramucci  31:59  
good, let's keep going when we hear other countries or other central banks are buying more and more gold. And even the Fed this morning actually made a statement that they're recognizing that banks are placing some of their dollar reserves with gold. What did they use for payment and who do they buy it from? Oh, Kevin from Minnesota all stored they they're using US dollar and it's interesting because a lot of the Bitcoin maximalist feel that why wouldn't the Fed just print money? Because they print money all the time? Printed trillion dollars? And by the Bitcoin network, you know, or by two thirds of the Bitcoin network, but yes, and they are using dollars. Yeah. And I guess, I guess the real question is, why do you think they're buying more gold David?

David Lin  32:48  
I see. I didn't know they were using dollars. So thank you for clarifying that. Because, in theory, they could use their own domestic currency to buy gold. I mean, no,

Anthony Scaramucci  32:57  
It's harder. It's harder to do that, obviously. Yeah, market is more fickle on that it's more of $1 based like oil like crude oil. It's more demand denominated in dollars, because dollars is the reserve currency, but said differently are asking sort of the timing question. Why do you think the banks are buying more gold and forsaking dollars?

David Lin  33:19  
This is a question that I've asked several times on my show. I'm going to give you my answer, which is, I don't know. But I will tell you what people have told me. Okay. One of the arguments for the dollarization. is basic is simply just diversification. I think a lot of these banks first, particularly China, China was one of the biggest buyers of, of gold in the last couple of years of central bank, they've held too much treasuries. It's just a diversifying tactic. Nothing more to add the other dollarization aspect as well. Look, what China look what the US did, using the SWIFT system with Russia. We don't want to be on the long end of that we don't want the dollar to be weaponized and potentially hurt us. We want to, you know, diversify from that. So it's a geopolitical issue as well. And I think that the other aspect of central banks buying gold is take a look at who's been buying gold. It's mostly the eastern central banks, right. So Middle East, Eastern Europe, China, I mentioned India as well. Actually, the g7 countries haven't, to my knowledge, haven't added too much to the gold reserves. Canada has no gold. They sold off all their gold in the 2000s of Bank of England selling gold. So anyway, it's mostly the eastern central banks. They have probably a case to diversify away from the dollar and into their own trading bloc. I think they're holding reserves as a safety play. I think some of the central banks have been price sensitive. If you take a look when they've been buying gold, it was pre $2,000 an ounce. I'm not saying the central banks, the best hedge funds in the world but they've had a history of buying low. So I think they, they probably I've asked this before I I've asked it One analyst do central bank buying of where does the central bank buying of gold present a leading indicator for the gold price? They say no, but if you look at history, I mean, it's actually kind of Yes. So I think those those are kind of the reasons that have been presented to me. I haven't looked into any any deeper than that myself.

Anthony Scaramucci  35:19  
Okay. Let me ask you one last question here. And I'm gonna switch over to my AI. Talk with you because a sharp, your brain? Sure, give us an piece of investment, we always are asking people because our, our listeners are asking for it. What are actionable things that viewers and listeners could do in this marketplace, what looks value bowl to you, on a fundamental basis, based on everything we're talking about.

David Lin  35:47  
I'm gonna give some a piece of advice that one of my investing props, when I was at McGill gave us I know this is very generic, but I believe in it, invest in things that you understand this goes back to my Buffett discussion, take a stock of a company that you like, doesn't matter if it's an Apple product, or you know, or shoe product, or it doesn't matter. Because nine times out of 10, you are going to understand that stock better than your peers. And you will know when to buy, you will know what the company is doing. Such that it could add or detract from shareholder value, you will be able to know when to get out and you will be able to know whether or not to buy its competitors or its peers under getting an industry that you like that you'd like to follow. Because there's opportunities in every single industry right now. I mean, I can give you a macro framework as to why I think interest rates are going to fall, perhaps the TLT, which is the 20 year ETF, which is trading at its multi year low. It hasn't been this low since I think like six or seven years ago. It's 50% off its top from three years ago, that could be a good trade, I'll give you you know, things that I think could be a good trade I can I could probably tell you copper is overvalued at current, you know, it just went up to its all time high last week, it's coming down, you know, short copper, maybe in the short term. But these are just things that I'm gathering because of my own analysis. If you follow what I say where anybody else for that matter on your show, or my show, they could be wrong, right, everyone, just do what you think you understand. Pick something that you like to follow and just follow a few of those things. You don't need to you don't. For retail investors, you don't need to buy 40 different stocks in your portfolio. Just have a few of them that you really understand. That's my advice. 

Anthony Scaramucci  37:32  
All right. It's good advice. David, it is incredible for us to have you on speak up. I want to say thank you. And where can we find you before you go? We know about the David Lim report. We're out sorry, we're already on social media. Where else can we find.

David Lin  37:46  
I'm on all the socials. So at David Lin underscore TV on Twitter, Instagram, Tik Tok are just short form videos. But yeah, YouTube is my primary platform for now. I'll have a newsletter coming out soon on my website that David Lin report.com But YouTube you can find me there at the David Lin report. Just look it up.

Anthony Scaramucci  38:03  
It's there. All right, my friend. Thank you. Really great to have you on.

David Lin  38:07  
Thank you very much, Anthony. Appreciate your time.

Anthony Scaramucci  38:09  
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