Get ahead of market trends with Bret Kenwell’s expert analysis on stocks, crypto, and the economy. In this episode of Wealthion, host James Connor is joined by Bret Kenwell, an investment and options analyst at eToro. Together, they delve into the latest market trends, discussing everything from the soaring highs of AI stocks to the evolving landscape of cryptocurrencies like Bitcoin and Ethereum. Bret also shares his insights on the health of the US economy, the consumer market, and potential impacts of Federal Reserve policies. Whether you’re a seasoned investor or just starting out, this episode is packed with valuable information to help you build and protect your wealth.
Hi and welcome to wealthy and I'm James Connor. 00:00:45:16 - 00:00:52:14 Unknown My guest today is Brett Cantwell. And Brett is an investment and options analyst at trading and investment platform eToro. 00:00:57:15 - 00:01:08:09 Unknown Brett thank you very much for joining us today. How are things in the great state of Michigan? 00:01:08:11 - 00:01:14:18 Unknown So I am located in Toronto. You and I are like neighbors. 00:01:14:20 - 00:01:27:21 Unknown I'm going to have to come down there and watch a, Detroit Lions game. they had an incredible year, so I'm looking forward to seeing how they do in the upcoming football season. 00:01:27:23 - 00:01:45:09 Unknown So let's talk about the markets. The S&P and the Nasdaq have been trading at or near all time highs. We have seen a little bit of volatility here in the last couple of weeks. A lot of it based on headline news and a big driver of the volatility is politics but also earnings. And we are in the thick of Q2 earnings season. 00:01:45:11 - 00:02:07:03 Unknown We have 25% of the S&P reporting earnings this week alone. And last week we saw a lot of the banks were poor. Both JP Morgan Goldman Sachs Morgan Stanley and others. And I want to get your thoughts on these U.S. banks. What what's your takeaway here? Any any concerns when you saw or read the press releases or heard the commentary? 00:03:00:17 - 00:03:05:21 Unknown And when you look at the banks, any concerns about the health of the US consumer? 00:03:35:16 - 00:04:02:15 Unknown And what about real estate? Because I'm reading more and more about how there's various pockets in the US where there's. They're experiencing a lot of weakness. And I'm thinking about Austin, Texas, and also pockets throughout Florida. A lot of supply coming out of the marketplace. And, there's no buyers. Any any thoughts on that? Or did you see or read any commentary from any of the banks about excessive loan loss provisions associated with real estate? 00:04:45:04 - 00:04:57:03 Unknown And what about when you look at the broader indices, the S&P and the Nasdaq? They are at or near all time highs. Any concerns about valuations, especially within the AI sector? 00:07:23:00 - 00:07:44:18 Unknown So I want to get your thoughts on the economy now, because it's often said that the stock market is not the economy. So in spite of how well the stock market is doing, we're seeing weakness through the economy. And we saw a weaker Q1 GDP number. It was also a revised down from 169213. We have, Q2 numbers coming out, I believe, sometime this week. 00:07:44:20 - 00:07:51:12 Unknown What are your thoughts on the US economy. And do you have any thoughts on this GDP number that will be coming out? 00:10:09:08 - 00:10:43:21 Unknown So, yeah. You raise a very good point. Because the consumer in the US. Very important. they represent 70% of GDP. So whatever the consumer does has a massive impact on the economy. And I just want to bring up one fact in back in Q1, both Starbucks and McDonald's came out in many other companies came out and said consumers just were not spending as much money in their stores or the restaurants, and it's going to be interesting to see what both Starbucks and McDonald's and the other restaurant companies have to say, in Q4, Q2. 00:10:43:21 - 00:10:52:12 Unknown But what are your thoughts on the US consumer, or do you see other any other concerns in terms of spending or lack of spending? 00:12:04:22 - 00:12:20:06 Unknown Yeah. I'm still waiting for this $5 meal plan for McDonald's. I haven't seen it yet in Toronto. What about Michigan? 00:12:20:08 - 00:12:40:00 Unknown So let's talk about inflation, because this has been another big concern. And an oil has been hanging around between 70 and $80 a barrel here in the past year. And I'm really surprised it's stay in this low. But what are your thoughts on inflation. And maybe you can also touch on the oil price and where you think it might be going. 00:14:13:22 - 00:14:34:01 Unknown So the fed has been trying to fight inflation with higher interest rates. And the fed has, they last, increased interest rates in July of 2023. It's hard to believe it's been a year, but they haven't done anything since then. And when we started 2024, we were talking about six cuts. And then it went down to four cuts and two cuts. 00:14:34:01 - 00:14:45:11 Unknown And now, I think we might be looking for one cut between now and the end of the year. But we have another fed meeting coming up at the end of the month on July the 31st. What are your thoughts to do? Anything that. 00:15:39:19 - 00:16:08:23 Unknown Interesting. Okay, so your firm, eToro, does a lot in the cryptocurrency space. So I want to get your views on on two cryptos. First on Bitcoin. It's been, I guess you could say consolidating here in the last couple of months. Ever since the having process, it really hasn't done much. well what are your thoughts on Bitcoin. And is it going to take off as we go into year end? 00:16:57:00 - 00:17:13:14 Unknown But where do you see the price going here between now and your end? 00:17:13:15 - 00:17:22:04 Unknown No. I asked because I thought your firm would have a target price on it. 00:17:22:06 - 00:17:27:09 Unknown Okay, so the other big news in the crypto space is Ethereum. Why don't you tell us about that? What's the news? 00:18:46:17 - 00:19:00:18 Unknown And maybe you can give us a background or explain the difference for those viewers who might not be too familiar with the whole crypto space. But what is the difference between Bitcoin and Ethereum? And why would I invest in one versus the other? 00:20:14:12 - 00:20:24:01 Unknown So, Brett, you are an options analyst at eToro. Why don't we talk about options now? What are you seeing in this space? Where's all the activity go on. What sectors or what needs? 00:21:45:16 - 00:22:03:14 Unknown And I got to ask you about roaring Kitty. Because he came back to life about a month ago. I'm not sure if you watched that livestream. I was on there. Believe it. There was, like, 600,000 people online watching that guy, but, are you seeing any activity in GameStop or his new name? Chewy? 00:22:54:03 - 00:23:03:12 Unknown Brett, as we wrap up, what should investors be aware of in the coming days and weeks? Maybe you can just highlight earnings that are coming out, you know, or economic data. 00:25:48:03 - 00:25:57:14 Unknown Yeah. We got a lot to look forward to in the next couple of weeks. And you didn't even mention the Olympics. They're starting up soon. 00:25:57:16 - 00:26:05:19 Unknown Well, Brett, that was a great overview of someone would like to learn more about you or follow your insights on the markets and learn more about eToro. Where can they go? 00:26:13:06 - 00:26:18:04 Unknown That's great. Once again, thank you. 00:26:18:04 - 00:26:49:01 Unknown Well, I'm sure you would agree with me when I say we are living through some crazy times right now and every day there's a new headline which is creating havoc within the financial markets. And to maneuver through these markets requires a lot of skill and knowledge. And if you need help planning for your financial future and also managing your investments, consider having a discussion with a wealthy on a financial advisor, a wealthy oracle on, or simply provide some basic information to wealthy and they will put you in touch with a vetted advisor. 00:26:49:03 - 00:27:00:07 Unknown Once again, you can find out more information at wealthy on.com. I want to thank you very much for spending time with us today, and I look forward to seeing you again soon.
