Savvy Investors 'Buy Straw Hats in Winter'

David Trainer, the founder and CEO of New Constructs, joins the show. He kicks off the conversation by describing how his company takes value investing to the next level with AI. He explains that the days of buying stocks and holding them forever are gone. Today's investing landscape requires investors to be more agile, and AI helps with this. David specifically mentions how he uses AI to sort through millions of financial filings, footnotes, and data points to give him an edge and produce better results. However, he warns that AI is only as good as the data that goes into it. (3:49) Then, David talks in depth about how humans are still involved in the investing process, including making decisions when the AI is unsure how to interpret certain findings. He breaks down how New Constructs' technology is giving clients a competitive advantage and augmenting the rest of their strategy. Plus, David discusses the importance of using both technicals and fundamentals when investing, and he shares why expectations matter so much to valuation. (14:34) Lastly, David names the two sectors he finds most attractive and two that folks should avoid. This segues into a conversation about a recent pump-and-dump scheme used to take advantage of retail investors, why the U.S. Securities and Exchange Commission doesn't take action even when it should, and the damage done by years of low interest rates. (33:35) Dan and Corey close things out by discussing inflation and the hotter-than-expected numbers for the personal consumption expenditures index. They cover unrealistic investor expectations for rate cuts, the government's misplaced priorities, and the very real consequences of this persistent inflation on workers and small businesses. (51:20)

David Daglio, the chief investment officer and global investment strategist of wealth- advisory firm TwinFocus, joins the show. He kicks things off by describing himself as a contrarian, and he explains that understanding who you are as a person will lead to the best investing results. After, he goes into detail on how TwinFocus looks for creative "straw hat" solutions that the market isn't seeing. Plus, he talks about risk premiums, the current opportunity in natural gas, and the 30-year discount in gold-mining stocks. (3:29) Next, David discusses the advantages and disadvantages of working at a large firm versus being an individual investor. He shares that individual investors have the advantage of not being overloaded with information, plus they're their own boss and can make their own decisions. David also details the three conditions TwinFocus looks for before jumping into an investment, the importance of recognizing your own intellectual biases, and how market skepticism can be a huge opportunity. (15:29) Lastly, David talks about "net-net" companies in the biotech sector that are trading for less than their total assets... he breaks down what capital imbalance is and how to spot it... and he explains that the savviest investors try to be like Spock from Star Trek, valuing facts over feelings. (28:49) Dan and Corey close out the podcast by discussing the Stansberry Research editorial meeting that happened last week. This meeting brings Stansberry's editors and analysts together to discuss different investing ideas and pertinent world news. One of the hot topics at the meeting was the presidential election in November. Dan and Corey emphasize that the best investors keep politics out of their investing decisions and stick to their core strategy regardless of which candidate takes office. (49:22)

Gary Mishuris of Silver Ring Value Partners talks about today's market being one of the most challenging periods for bottom-up investing since 2007. In terms of the quality of a business versus its stock price, there isn't a lot of opportunity right now. But he emphasizes that transparency and candor with clients is essential, as is prioritizing the long-term process over short-term performance. (5:19) Next, Gary describes what sets Silver Ring Value apart from other fund managers. He shares why he left the "sausage factory" of larger firms behind, how his firm makes money for clients rather than off of clients, and how his unique temperament and behavioral models allow him to make better investing decisions. (14:38) Gary also goes into detail on the psychology behind investing and compares it with a game of poker. He talks about trying to avoid making mistakes, continuously learning from past errors, the importance of having guardrails in place, and cutting your losses. (21:44) Then, Gary explains why you should never be ashamed to change your mind, even when you haven't received any new information. It's OK to reanalyze the same set of facts and admit that you were wrong, and he cites several examples of investors who have learned and grown from their past mistakes. (31:21) Lastly, Dan and Corey discuss the consumer price index and gold. Inflation came in hotter than expected, while gold has broken out to new highs. Dan and Corey speculate on how long gold's bull run can last. Plus, they detail gold being a good hedge for retirement against the government's money-printing addiction. (48:18)

Dan and Corey kick off the show by discussing inflation staying persistently higher, rampant government spending and money-printing, and the repercussions of the Federal Reserve's decade-plus of low interest rates. (0:41) Next, Cambria Investment Management's Meb Faber joins the conversation to talk about the exchange-traded funds ("ETFs") at Cambria and why the team focuses on shareholder yield when picking stocks for these ETFs. He breaks down the importance of shareholder yield in mega-bubble markets like today's and urges investors to pay more attention to it. (24:25) Meb then discusses managing risk on a portfolio level, including focusing on quality and value. He also covers why emerging and foreign markets are so attractive today, the opportunity in fixed-income investments like bonds and Treasury bills, and how higher interest rates have changed the game. (38:21) Finally, Meb describes himself as a value investor and shares which areas of the economy he's most concerned about. He talks about inflation driving commodities sharply higher, gold hitting new highs, and why investing at all-time highs can still be a smart choice. (56:43)

Dan and Corey kick off the show by reviewing the most recent PCE number, what's happening with inflation, and the current state of the economy. (0:41) Next, real estate expert and entrepreneur George Gammon joins the conversation and explains how he became a self-described "macro addict" without any formal education in the world of finance or economics. Plus, he discusses why he considers himself a libertarian and why most investors and billionaires would fall into this category, even if they don't self- identify as such. (21:59) Further, George describes how his investment style is influenced by being a libertarian. By default, his view is that the government is always going to do the wrong thing, resulting in unintended, net-negative consequences. George also goes into detail on the similarities between value investing and trend following. He argues that successful value investors are always looking for a catalyst so that they can catch the trend at its very beginning stages, while stereotypical investors are happy to catch the middle portion of the trend. (34:16) Lastly, George explores the biggest differences between retail investors and professional investors. He details the strategy that the best hedge-fund managers use: starting with a macro view and then looking at the fundamentals and the narrative later. George emphasizes that these experts spend most of their time deciding how to position themselves and using asymmetry to stack the odds in their favor like in a game of blackjack. (46:32)

Dan and Corey kick off the show by arguing against the Federal Reserve potentially cutting rates this year. They point out that inflation is persistently volatile, gas prices are soaring and hurting everyday consumers, and the Fed is "pretending that everything is OK," according to Corey. Dan also brings up the fact that 2024 being an election year may have something to do with this. (0:43) Next, Stansberry Venture Technology editor Dave Lashmet joins the conversation to discuss the biotech industry. He explains that he doesn't see biotech as a sector, and rather he looks bottom up at biotech companies to find a drug that will have a macroeconomic effect. Because only 6% of drugs that start a Phase I trial succeed, he says being selective is crucial. Dave also describes the three phases of drug testing and the importance of efficacy and safety data. (17:55) After, Dave talks all things weight-loss drugs. He reflects on how he knew Ozempic was going to be a blockbuster drug from his boots-on-the-ground research, the incredible room for growth in this area, and the unprecedented amounts of money that biotech companies are spending on factories to develop these weight-loss drugs. (24:36) Further, Dave discusses why the obesity epidemic has worsened over the decades and how exactly weight-loss drugs work to increase metabolism and suppress appetite. It involves something he calls the "winter switch." Plus, Dave brings up the U.S. Food and Drug Administration approving these drugs for the purpose of reducing strokes and heart attacks by nearly 20%. (32:40) Lastly, Dave talks about the widespread economic implications behind weight-loss drugs and other areas of the market that could be impacted, such as the airline industry. However, Dave emphasizes once again that any mass changes are still years away due to supply constraints. (41:20)

Dan and Corey kick off the show by discussing both bubbles and "anti-bubble" stocks. Dan mentions how the S&P 500 Index's cyclically adjusted price-to-earnings ratio, with data going back to 1871, is currently in the top 1%. He even believes this is the biggest mega- bubble in all of recorded history. (0:41) Next, Porter & Co. analyst Erez Kalir joins the conversation and shares his financial philosophy. He talks about investing legends who have influenced his investing style, the importance of avoiding labels, and how successful investing is similar to using a Swiss Army knife. Plus, Erez explains the yin and yang of macroeconomics versus security-specific fundamentals and how there are extreme periods where one can entirely dominate the other. (13:00) After, Erez goes into detail about biotech – the sector's history in the stock market, how it's shaped by interest rates, and how you can find companies trading at an extreme discount with negative enterprise value. He argues that not being able to time the markets is merely a myth, and he shares the seven factors he uses to evaluate whether a biotech stock is worth buying. (21:59) Lastly, Erez explains why the conditions are right for biotech stocks today. He covers the sector being hated and how this gives savvy investors a chance to break away from the herd and profit. (38:36)

Dan and Corey kick off the show by discussing famed economist Nouriel "Dr. Doom" Roubini and his current bullish stance. They explore whether Dr. Doom is correct in his optimism, if gold's new all-time highs are here to stay, and what could happen next with bitcoin. (0:41) Next, Stansberry Research editor Brett Eversole joins the conversation and talks about where he thinks stocks will go this year thanks to the election. After, he analyzes the overall health of the market using several different metrics, urges investors to invest based on the size of a company's market capitalization, gives his thoughts on whether small-cap stocks can catch up to the rest of the market, and reviews moments of extreme volatility in history. (16:49) Further, Brett describes a shareholder yield fund and how it works. He points out that if you buy companies that return a lot of cash to shareholders, those companies tend to go up a lot over time. He also discusses the strategies he uses in his True Wealth publication to find winning stocks, buy in at the right time, and protect capital. (29:35) Finally, Brett explains why he isn't investing in individual Chinese stocks today, but he provides one unique way to still profit from China that you may have never heard of. (47:15

Dan and Corey kick off the show by discussing Warren Buffett's recent letter to Berkshire Hathaway shareholders. In it, he honored his late colleague and friend Charlie Munger, plus gave updates on some of Berkshire's businesses. Dan and Corey also cover Apple switching its resources over from electric vehicles to artificial intelligence. (0:41) Next, Rick Rule – president and CEO of Rule Investment Media – joins the conversation. He goes into depth on models, such as the discounted cash flow model. He talks about the flaws with models, why models are only useful for apples-to-apples comparisons, and how a model can be used on exploration companies or similar companies that don't have revenues. (24:32) After, Rick goes into detail on the uranium market. He describes why uranium companies have mothballed production, what makes uranium so unique in the natural resources world, the differences between the spot and term markets, and how to interpret uranium companies' financials. (33:18) Lastly, Rick calls out several commodities that present good investing opportunities today. He describes one of them as "stupidly cheap"... another he says is hated by investors and its market is in disarray... and the final two, he explains, are being sold off because of an incorrect belief that we don't need internal-combustion engines anymore. Rick even goes one step further and namedrops specific companies that could be worth looking into to take advantage of these price discounts. (49:15)

Dan and Corey kick off the show by discussing new highs in the S&P 500 Equal Weight Index, Japan's Nikkei 225 Index, and chipmaker Nvidia's stock. They analyze what these new highs mean, whether the U.S. is still in a mega-bubble, what's happening with the Japanese economy, and if Nvidia can continue its outperformance. (0:41) Next, Chaikin Analytics Chief Market Strategist Pete Carmasino joins the conversation and describes his investing style. He notes that he mainly looks at price. By using technical analysis and studying the fundamentals, trends, and the relative strength versus the market, he can decipher whether a stock is overbought. (20:28) Further, Pete talks about the importance of risk management and taking advantage of tactical moves. He gives investors advice for how to determine when something is a tactical sell or a tactical buy, discusses the relationship between technicals and fundamentals, and explains why he looks at both offensive and defensive sectors for investing opportunities.(25:55) Pete then details why he's never too bullish or bearish at any given time, plus how the Chaikin Analytics Power Gauge system helps him find potential winners. He describes his process for interpreting the signals and discusses the fundamentals he needs to see to be interested in a stock. (39:47) Lastly, Pete hammers home the importance of rates – particularly the unemployment rate, since the Federal Reserve uses it to determine the federal-funds rate. He also shares the top five subsectors currently and names a few stocks within those sectors that could be worth keeping an eye on. (51:15)