The Truth Behind the AI Selloff

Yesterday was a historic day in the market. Not since COVID has retail sold this much in a single clip, but they might have made a mistake because rates did not get cut and there was actually a massive fund that was hunting for this kind of move. What's up everybody? It's LG Du Set here and welcome to Milkroad AI, the daily AI show that has already notched three different historic days since launching the show and we're not even a year old yet. Today is July 30th, 2026. We're sitting down today for a special episode with our head honcho, Kyle Reedhead, to tell the story of how yesterday's market crash actually started way back on June 15th and why this is yet another juicy dip in the AI trade. And if you want to see Kyle's moves, his portfolio, and the trades from all our analysts who called many of these bottleneck stocks way back in February, you got to check out Milkroad Pro, which is just a dollar at the link below. And a reminder that our podcast today is free and it wouldn't be possible without our partners at Securitize, the regulated rails for tokenization, and Bitget, stocks 2.0 with real liquidity and real dividends. Keep an ear out later in the show for a message from them. Kyle, it's been an emotional 24 hours, man. What the hell happened? >> [laughter] >> It has been a one of the craziest weeks. I went live yesterday right in the middle of the whole chaos. For those that were watching, that was fun. We had the Fed decision yesterday. We had earnings from Microsoft and Meta and Robinhood yesterday. You know, we've had We have Apple and Amazon today, so the show is not over, by the way, for those that are watching this. Market completely capitulated yesterday and honestly the last, let's say, all week, at least in the AI infra side of things. Um, it looked like, you know, people were kind of thinking the market is just doomed and we're done and the AI trade is over and it's a bubble and it was just craziness. And then this morning you wake up >> [laughter] >> and you've got like, what, you know, Micron's up, I don't know, 16%. You've got Nvidia's up 30%. Bloom Energy up 30%. Like everything is green. The Nasdaq is just cooking. So it's a wild, wild couple days. This is why we love markets. I don't know about you, LG, but this is like the greatest show in the world. Like it's so much fun to watch and be a part of, not going to lie. >> Listen, that's that's why I loved crypto, and then you guys you guys wanted me to do this stuff, and then the stock market started behaving like crypto. So, it's great. I love it. >> Yeah. But, let's talk about what actually happened cuz actually this doesn't start from this week. There's um a bigger story that I think is played out over the last about 6 weeks that I think is really important for investors to understand so that you can look for this happening moving forward and you can make a better decisions in your investments moving forward. So, I want to start off on June 16th. So, let me just share screen here. On June 16th, the market all of a sudden had this idea that the Fed was going to raise rates in July, the one we just had yesterday. And so, what happened was the poly market odds, the Cal-Chi odds, everything kind of jumped up and said, "Okay, all of a sudden the Fed's going to raise rates." And that became the talk in the media for whatever reason. Um part of it I think was inflation concerns. Obviously, inflation ended up surprising to the downside last week or 2 weeks ago. So, this was all I had been calling that for the last few weeks. Um but, this started to spook the market. And so, what happened was on June 16th when this popped, that was the top of Micron and Nvidia's and a lot of the AI infrastructure trade, right? So, what ended up happening was the market started to get uh a little bit fearful that we were the the Fed was going to raise rates. Now, why would that be a problem to the infrastructure trade? Well, a lot of it is becoming uh it's a lot of it is financed, right? There's a lot of debt. There's a lot of financing involved. There's some leverage involved. And ultimately, if we raise rates going into that, the market really is not going to like two things. One, CapEx, right? Two, debt. Especially CapEx and debt for things that take years to build, right? If we're going to a a rate hike cycle, that is a big problem. And they especially don't like negative free cash flows, right? That's why Google got cooked last week uh on their earnings even though their earnings were so good. So, that started to scare. Then, what happened is that over the next 2 weeks, 3 weeks, we had more fears that came out. So, one was that China can now make their own chips and their own memory, right? And so now they're competing with ASML. You guys probably remember this from 2 weeks ago. It was a chart that Melvin put up on Twitter, which was there was fear that, okay, if they can just flood the market with their own chips and their own memory and all this stuff, then this is all, you know, for nothing, right? This demand is going to get washed up by so much supply and we're kind of screwed. And so that was some FUD that kind of spooked the market. It took the prices down of the AI infra trade and especially semiconductors down even further. Now, we came out and said, "Guys, this is not a big thing to be scared about. Um they're still so early in this whole um manufacturing process. As you can see here, you know, it took ASML 20 years to get to the point where they're at. China's just starting out. So, this isn't really a big fear, okay?" Um then you have the open-source model scare, right? Which is all of a sudden, you know, we have this adoption of open-source models. You have the Kim I K3 thing that came out. And basically everyone thought, okay, well, if we have the open-source models that um are undercutting Open AI and Anthropic, then again, there's going to be less demand because Open AI and Anthropic's revenues are going to get hurt and they're not going to be able to buy more compute. And so again, prices went down. What ended up happening as a result of that a few weeks afterwards is you had Korea who was super levered up to the tits. Uh they have leveraged ETFs there. They had funds that were levered up. And they started getting margin called. And so what um let me just see. I have a chart that can pull this up. Where is it here? So, over about 2 weeks here, if I pull this back up, >> [snorts] >> we saw Korea start to unwind. Now, their biggest holdings are things like SK Hynix and um and Samsung. And so these companies that, you know, have been doing great and even just showed great earnings yesterday and was it 2 days ago, they went down like crazy. The stock market went down like 40-50% plus and we realized that a lot of this was the funds that were unwinding and these levered ETFs that retail was just you know, going crazy and then putting their life savings into. So, when they get margin called, what does that do? It forces these stocks that they were buying and a lot of them were just the memory stocks, but it does end up kind of rippling into other stocks, right? And so, they were forced to sell. So, that brought the prices down of stocks even further in the AI infrastructure trade. Then, yesterday, it comes out that or I guess maybe it was this morning. I honestly don't even remember now. Leopold, which you guys have heard a ton about. We've talked about this guy. Used to work at Open AI. this gentleman right here, who is our boy genius of the AI infra trade, right? He called, you know, Micron, he called Nvidia, he called Core Weave, he called all these these companies that have done extremely well. And he had them all in his fund and I guess he levered up a little bit inside of his fund as well. And so, what happens now, which is hilarious cuz he's the poster boy of this whole AI infrastructure trade, turns out this morning we find out that his fund is also getting margin called and he's being forced to sell all the public companies within his fund. Now, the reason why this is important is he bought these companies early, right? Like Nvidia is not a massive company and a bunch of these other companies bought he bought when they were much smaller and he bought in large amounts. So, he has a decent share of these companies and so, when he has to sell, that also moves the price. So, he unloaded. I don't know when it started. We don't really have all the details yet, but as far as we know, he's been unloading his stocks. He's also looking to try to raise capital. I don't know if that's to save his company or cuz he wants to buy the dip, but either way, he had to sell a bunch as well. And then, to top it all off yesterday, it comes out that retail sold the most stocks, single stocks in a day since the COVID crash. Okay? So, you have mechanical selling from margins, okay? From leverage in Korea, then from our boy genius Leopold from situation awareness fund, and then retail goes and sells the pico bottom at like the largest scale that they've done in a very long time. So, that's very unfortunate to to retail. You know, [clears throat] our show >> Just going to pause there for a second to point out that the market is showing signs of something kind of different happening. And our analysts at Milkroad Pro are all over it. They spent the last couple weeks making a lot of trades, getting out of some positions, and then getting into a lot of new ones, getting ready for the next wave of robotics, space, or even kind of picking some different AI winners. If you want to see what they have in their portfolios, what positions they're opening, it's just a dollar in Milkroad Pro at the link below. >> Well, you have a question. Why would retail do that? What what motivate like because retail doesn't know a lot of this stuff that you just said. They don't they don't follow like sure rate hikes a little bit, but like they don't follow most of this stuff. >> Exactly. So, what they see is their stocks are down 30% or 40% and 50% and they don't understand why. Because they also saw that earnings are going up and Google's raising its cap backs and meta's raising its cap backs. Why is my stock that I thought was a bet on cap backs going down? And if they don't realize that there's just a leverage unwind and this is mechanical, they get emotional and they decide, well, I don't want to lose all my money. This was my life savings. This is all I've got. My wife's getting pissed at me cuz we're Our our numbers are going down. And so, what do they do? They go, I might as well cut my losses at 30, 40, 50% so I don't go to zero. Which doesn't happen, but emotions get to investors, especially retail investors where they don't have a team to speak to, right? If you think about it, funds it's not that they're necessarily always smarter, although of course they're doing more they have more data and more research, but they have a team to speak to. And they usually have multiple people that have to decide to click the sell button. Whereas like if you're all stressed out, maybe you've had a couple beers, or you're tired after work, and you're like, "Oh my god, this is like 7 days in a row of my stock's going down." And you don't have anyone to ask a question to, you just click the sell button, right? And that's what they did yesterday on what may or may not, I don't know, but maybe the pico bottom of this pullback. So, you had leverage unwinds followed by emotional unwinds, and that is what pulls these stocks down 30 to 50%, okay? Now, also in sane news, and I don't know how true this is just yet, but it turns out, I don't know if you got if you remember, but 2 days ago Citadel came out and said, "We think that the Fed is going to is going to lower rate." Or sorry, it's going to raise rates. And I was kind of like, "This is stupid. Why would they say that a day before when the odds are like 75% they're not going to?" Turns out, they're Citadel may have played a role in trying to spook the market and um get Leopold's Situational Awareness Fund to get uh margin called because they ended up being the buyers to buy up his entire portfolio this morning after he gets margin called. So, this just came out just before we started recording. So, I don't know how much truth to this, you know, people always paint Citadel as this like villain, uh and they have been many times. So, probably they did something here, but turns out maybe Citadel uh was a part of the trying to spook the market here and um and ends up buying Situational Awareness's fund, which is hilarious. >> So, you you think they Do you think they own the rookie then, basically? That they're just like, "Listen, this guy he's hot, but he's young. He's going to He's not going to see We're going to play him in some way, and we're going to scoop up his juicy portfolio and make him sell it cuz he doesn't realize how exposed he is." >> For those that don't realize, in the in markets, big funds literally seek out opportunities like this, where they go, "Oh, he holds this on this much leverage. His margin call is at this number. If I short these stocks, or if I sell these stocks, which again, he these guys hold I think it's probably trillions of dollars worth, not of just these stocks, but you know, their their total capacity. So, they can move markets. And not only that, they're in the room with others who can move markets. And so, what they can do is put shorts on, you know, Nvidias and Micron and all this stuff, and then get their buddies to go sell it, um and they can basically find a way to monetize that volatility, right? And then they can go, "Okay, well, this guy's going to have to sell out at super low price, we can buy it, right?" So, they they kind of like they can move markets. And this happens in in crypto, if you've been in crypto, it happens all the time because everything is fully on chain and transparent, so it's very easy to do this in crypto. You can do it in the stock market, it's not as easy to do. But yeah, Citadel definitely does this, and there's tons of funds that do this. So, yeah, I think they played they played the rookie. I I don't know, again, this is all speculation, but you know, it looks like there was something going on there. But here's where we end up that I think is quite interesting from all this. First of all, anyone that was in Milk Road Pro, we had any of our members we for the last 2 weeks have been basically saying this is what's happening, you know, there's this is all fud, there's kind of a leverage unwind here in Korea. Like we've been getting this right the whole way, and so we've been buying the last 2 weeks. We've talked about it a little bit on the show, but for those that are in Milk Road Pro, um we have put out multiple calls. Uh Melvin put out an incredible call at the end just as the market closed yesterday on on um I'm not going to say the stock, but if you want to sign up, it's a dollar, so go get a trial and you can see it. But right at close, and it went up 30% this morning. So, just like absolute beautiful call. But anyway, we've all been buying these dips cuz we knew that this was just a mechanical unwind. Now, what sort of furthered the story and furthered our conviction in this is if you look at the earnings from the last couple days, it has been profound. And I mean extremely profound because you had Mark Zuckerberg come on and say, "There's just nowhere near enough compute for all the demand. We're getting a large number of offers for the compute that we have, but we also have a lot of internal uses that we think are going to be quite valuable to use that compute. He said it's at a much like a premium. They can be selling it for a premium from where they they bought and acquired this compute 1 2 3 years earlier. So, they could make more money off this compute and there's so much demand for what they have, but they don't even want to sell it because they think that they can make more money using it on their own products. You have Microsoft basically saying the same thing. You have Bloom Energy that was up I don't know. What was it? Like 500% year-over-year or something ridiculous like that. Samsung, same thing. SK Hynix, they were down from expectations, but not because of demand. They said the demand was ludicrous, but they don't have enough supply to fulfill that demand. That's how crazy these earnings have been. So, every single company basically has said, "We need more computes or the demand for our compute is just insatiable." And so, it made no sense, absolutely no sense that yesterday the market was selling off as much as it was when every CEO in the world is telling you that there's this much demand. So, either every CEO in the world is lying to you, right? Which they're technically not allowed to do and would go to jail. So, they can't do that on their earnings calls. Or there was something underlying that was pushing these stocks lower. And as it comes out, situational awareness, Korea, all that kind of stuff. Now, the good news is from what we can see is this selling is done. So, this chart Morgan Stanley put out. Where is it? Yesterday or sorry, JP Morgan. Um that says the the the leverage unwind that happened in Korea finished basically finished yesterday, right? It appears situational awareness is done. They're selling today as well cuz they've got a buyer, I guess. So, there's a good chance that it's done and it lines up pretty well with the market having kind of its perfect correction. So, often times and you see it multiple times a year. We had it twice last year, twice in 2025. The market will have and this is the Nasdaq we're looking at, I have a perfect little pullback of around 10 to 15%. Generally, when that happens, the RSI, okay, will touch 30. And that it's not always like the exact moment that it hits the bottom, but you generally need to hit it or get very close to it, and then you're somewhere near the bottom, okay? Uh and you can see it here. The last pullback we had, which was in April, this was during the the Iran war, we we touched 30 exactly. And then for the next few months, we absolutely ripped. And if I was to zoom out, which I can show you in a second, I might as well just pull it up right now. The same thing has played out multiple times on the Nasdaq here, where let me go back to the daily. Just to weekly, actually. I know, weekly is not there yet. Let's go to daily. So, if we look, you know, we have multiple pullbacks every year, same thing. So, you had it here in 2026 earlier, okay? You had it in 2025. This was from the tariffs. You had it here in 2024, and again, it hit the bottom in in August. This was the the yen carry trade unwind. Uh we had it here in April in 2024. We had it back in July. I think this was the banking crisis, I believe was back then in 2023. So, you usually get about two of these a year. We're in the second one right now. We've hit exactly like 13% pullback. The RSI, it didn't touch it, but it's very very very close. So, that's a pretty good sign just from like a technical indicator perspective that we've hit a good pullback here, and um and it's probably done if not close to done. So, there's just a lot of really good signs that are pointing in the right direction. Plus, like some of those charts that I showed earlier of like this one here, like these are capitulation events. These are the moments you want to be buying the market, not when you want to be selling, right? And then the last one is like look at the semi market here in terms of just like it's moving average, it's at as low as it was anytime it gets a huge pullback, right? So just like every chart is saying it is time to be buying the market. >> Real world assets like funds, treasuries, and private credit are still running on rails built decades ago. Gated, paperwork heavy, slow to settle. Everyone's talking about tokenizing them, but far fewer can actually do it and do it without cutting regulatory corners. Securitize can. It's the SEC regulated infrastructure bringing real world assets on chain. Nine years in, native tokenization not wrapped, backed by BlackRock, Morgan Stanley, and Cathie Wood's Ark Invest, and chosen by the New York Stock Exchange, VanEck, BNY, and Apollo to do it at scale. It's the regulated bridge between traditional finance and crypto. Tokenize the world at milkroad.com/securitize. >> I want to go back to this retail sentiment um and retail selling that you mentioned Kyle as well because I'm trying to identify the reason for that and you kind of gave a good example that it's just like listen, people Apple have been holding these stocks and suddenly it's down 30% they're going to panic sell. I think I would say that there's also, you know, there's always this AI bubble question that lingers and people that track this stuff every day and like you're saying you look at all the earnings call everyone's saying listen, there's so much demand we cannot keep up. Like there's no bubble, but on the retail side they don't follow that and they've been waiting like I think that that when you panic you think of the lowest hanging fruit reason to panic and it's probably like it was a bubble, and sell my you know, and that you people people are people are out. >> [snorts] >> Yeah, well so there's two things I think so one I think we all have 2022 unless anyone's been investing for the last few years, we all have that 2022 2022 bear market in the back of our heads and we're so scared of that coming again. And I think the thing to remember there is one you had inflation that was through the roof. We were at like 9% inflation and that wasn't a and that happened because we we shut down the world, right? We had no factories working for many months and so there was this like very very like apparent supply constraint on basically everything and so prices went way higher. We also hit a recession, right? And so this was like a a a really bad time for the economy both from inflation and recession, unemployment, all the things, right? We are nowhere near that today. Like not even close and I think that blip in inflation jump that we had 2 months ago was again what's kind of spooked the market in terms of them raising rates, but again that happened because oil went up because we closed the Strait of Hormuz, right? So that's been basically figured out at this point. It's not as much concern. I know there's still it's not over yet over there, but like it really is not that big of a concern anymore and that's why inflation came right back down 2 weeks ago, right? Or last week. So one and and then we are nowhere near recession. Unemployment is great, inflation is coming down, earnings are absolutely through the through the roof. Like the economy is humming and so this is I think what what investors need to know is we are nowhere near a 2022 environment, okay? I'm not saying that we can't have a bigger pullback here. I'm not saying that we hit the bottom, but this is not 2022. And then the other thing that I think people have in their mind all the time is the dot-com bubble, right? You see so many people talking about how this is the dot-com bubble comparing it every time I make a tweet there's multiple people showing me some sort of stat from the dot-com crash and I think the thing to understand here is the the in 2000 when this happened you had multiples of like just unbelievable multiples on these companies. They had no revenues and their multiples were you know hundreds of X above what it should be, okay? And you had that while there was basically no users, right? You had like five people on the internet in 2000. Okay, it's not actually five, obviously, but it was it was a small amount and it was growing very small. And that's because you had to go and literally buy a computer that no one didn't even know what they were and didn't really have in their homes. So, like we had to wait until people were buying computers and then they had to like get someone to come in and connect the internet to their home, right? Like it was very hard. This is complete opposite. One, you got a bunch of stocks here that are not super overvalued. Now, some of them were in June. Don't get me wrong. That's what triggered this, right? As soon as there was a little bit of fear, people were like, "Okay, these multiples are pretty high. Um I've made a lot of profit in the last year and so like I'm starting to sell." So, that started the the sell-off in June. But, if you especially now after this pullback, we're no we're near that, right? Like if you look at some of the memory stocks, the semi stocks, they're cheaper than they were before ChatGPT launched, which is crazy. And at the same time, you have insatiable demand, as we talked about, and you have user adoption growing like crazy. Not just more and more users, but also these users are using it more and more. So, users and usage is accelerating in AI. It's a complete opposite of the dot-com bubble and the dot-com crash. So, I just think at some point we might get there. We we might get to a point where we have a dot-com crash, but it is way higher than it is today. I think investors need to understand that cuz you cannot compare what we're in today to what we had back in 2000. >> Kyle, what is what is retail going to do with all their cash? >> So, what should they do? >> What are they going to do? What should they do? What are they going to do? Cuz now they're going to buy they want to buy back today, they're going to buy back higher. >> So, exactly. This is why I think that we're going to go back up is because you've got a bunch of people that either sold out emotionally or got out early and took profits and did well, right? Uh or were were forced out, okay, and stopped out. And so, what do those people do? They buy back in and they chase. Why are we up Why are some stocks up 30%? That means, you know, some of these went up 10%, 15%, and others still came in like, "Should I going to buy more, too?" Right? And so, it's very likely that's going to happen. And that is why, if you look at the market, let me share screen again here, we have these crazy V-shaped recoveries, right? It's because this is This is the market and their emotions, right? We We sold off like crazy cuz they ran more, and then everyone goes, "You know what? Actually, it's not going to be that bad." And they just buy, and we just straight line up. And we go almost like look at how much higher we went, right? Like we came down, I think it's 15%, 13%, and we went up 30 5% in like a matter of days, [laughter] okay? And this is is is basically because we sold off when earnings were still getting better. We're not in a recession. It's not that big a problem. It was fear. And so, people chase and come back in, and I guarantee you, whenever we decide to go back up, which I'm assuming is probably now, but maybe it takes a little bit, you're going to have a bunch of retail chase again. You're going to have the same thing happen, and I think we're going to end up much higher once again. >> Carl, I want to I want to um There's a good theory and makes a lot of sense. I want to ask you about rate hikes because you did mention earlier going into a rate hike cycle, which has not been indicated yet at all. Um everybody the last couple days was pointing to on the prediction markets that there was a 25% chance of a rate hike. Didn't happen, but in September, it is currently on Polymarket like a 50% chance. So, is that is that going to happen still in 2 months' time? >> Uh so, I don't believe so. It is So, what is it? Do you have the Polymarket up? Can we Can we pull that? >> It's at 453% right now. >> 53? Yeah. So, >> up, yeah. >> Yesterday before they decided to pause hikes, it was a 20% chance that they would they would um keep it as is, a 55% chance they would raise by 25 bips, and then a like 25% chance that they would raise it by there would be 50 bips higher by September. That's cuz they thought there would be 25 yesterday, 25 in September. Now we're about 46, 47% that it's it stays um stays paused, and then 53% that it goes up 25. So there's no one in the camp, maybe it was like half a percent that it's going to go up 50 bips. The So we're still kind of leaning towards a potential raise. And if you listen to the um the meeting, everyone asking questions, all the media, all the analysts, all the journalists, they were berating Warsh for not raising rates, right? They're like, "Why are you not doing it? The market's telling you you need to do it, blah blah blah blah blah." And Warsh is like, "Look, I'm just going to let the market decide, right? The And I think the thing to for people to understand is the market has its own way of kind of providing an equilibrium. So if like the price of oil goes up like crazy and our gas prices go up like crazy, generally consumers will just like stop spending as much, right? Might not drive as much that week or those few weeks, right? And so that ends up bringing the demand down on its own. We don't need the Fed to move rates for us, we can do it ourselves. And the the the previous Fed, they wouldn't do that. They would just be like, "You know what? We're just going to move move rates." Even though the market had already done it for them. And so like they'd be late to the punch, and Warsh doesn't want to do that. So I can tell he doesn't necessarily want to raise the rates. Now he said he will if he has to, right? He wants inflation at 2%. But the thing is is inflation has already been coming down. Now we had this blip because of the Iran war. And I think he knows it's a blip. And his hope is as long as oil comes back down, let's see what oil's at today as we're talking, then he's not too worried. Okay, so it's still a little bit high, but look at this chart. I think I showed this before, maybe it was on the live. Up here, it was very much a problem, right? Then we broke down. This is why inflation came down, right? Right here. Cuz oil was basically the reason why inflation spiked 2 months ago. After it coming down like crazy, we saw that the June CPI came down a lot, way more than people expected. That's because of this. Now, the problem is we came back up into the '90s. Now, we're sitting in the low '80s. So long as this continues to come down, I think inflation will continue to come down, CPI. And in 2 months from now, when he has to make his decision in September, I don't think he will need to raise rates. I don't think anyone will even want him to raise rates. So, it's going to depend on what happens with the war. I don't know the answer to that. I'm not a geopolitical expert. I don't know what Trump's what's going on in Trump's mind, but that is going to matter. So, oil does still matter a little bit here. But ultimately, there's a lot of things that are moving inflation lower and forcing it lower. AI is one of them, right? AI is a very deflationary trend. So, I just think the market right now has time. And I think that's the good part is we've got almost 2 months here where we can wait before we have to get another decision. But my guess is he probably doesn't raise. >> Everyone's tokenizing stocks these days, but almost nobody's doing it right. Thin liquidity, prices that drift from the real thing, dividends that just vanish. Bitget 2.0 is different. Real NASDAQ and New York Stock Exchange depth through licensed brokers. Prices mapped one-to-one, dividends paid to your account in real time, plus you get the lowest fees in the market at just .04%. And you can trade them like any other crypto as margin, in earn, in grid trading. Tokenized stocks finally done right. Head to milkroad.com/bitget to get started. So, so what's the move, Kyle? Cuz this is these are a lot of what ifs, right? And your your 30 people are I think we're going to look at your 30 RSI line or almost touch it as like, "Listen, you've got that trend for the last 2-3 years. Every time there's some kind of panic thing like this comes down, retail sells, and then you've got at least a couple months of ripping before something else happens or something else kind of change direction." In this case, that rate hike in 2 months might be the thing that it's like, "Well, we'll know in 2 months, but there's plenty of time for the market to move upwards in that time. Also time for it to move downwards, though. There's no guarantee. So, what what do we do from here for both both the retail people that are super liquid now suddenly and and they got out at the bottom and for for the rest of us, too? >> Yeah, so look, the first thing is you should have been selling in fear. And I mean, everyone knows this, right? You've heard Warren Buffett say be fearful when others are greedy, be greedy when others are fearful. It's just really freaking hard to do. Like, our analysts were buying like crazy over the last 2 weeks, but I guarantee you ask them, I was one of them that was buying. It's hard. You're like, my reputation's on the line, my money's on the line, like everything seems to be falling apart, but I got to I like I know that I need to buy, so you do it, right? Um I know a bunch of our members did as well, so like congrats to anyone who did, but that's that's the first thing is anytime you see unleveraged or leverage unwinding or you see this like mechanical selling or just like mass capitulation, take note of this right now. Take note of how you felt yesterday. What did you do yesterday? Did you sell? If you did, you made a mistake and you need to learn from that and you need to get better because the best times to make money are when you're buying from forced sellers. By far, it's the best time to make money, okay? So, one, take note of that today. Go journal how you felt over this last week. Why did you sell? Why didn't you buy? Okay? Get better next time. Now, the other good news is as much as these things are up like crazy, Micron we're looking at right now is up 15%, uh Nvidia's is up like 26%, Bloom Energy's 26%. They're still way down from their all-time highs. Way down. And so, while I'm not saying you should buy today, I probably wouldn't buy, uh you know, when something is that green, maybe wait till tomorrow or the next day or Monday or whatever, you know, you don't have to rush into this, but I would say even if you did buy today, you're probably going to be fine uh because I think that most of these companies, again, good companies only, are going to go back to all-time highs or higher. Why? Because the earnings have been so damn good so far in the last 2 weeks that the fundamentals have gotten better since we were at the all-time highs back in June, right? So, there's a really good chance that these companies will actually go higher than they were when we reached that high in June. And we're still down like Micron is still down, I don't know, probably 20-something percent here. >> Mhm. >> [clears throat] >> Up 32% it's still down. So, you can buy it on a 16% up as long as you you can wait a month or two, right? Again, I'm not saying that we're going to be shaped recovering be up, you know, at all-time highs tomorrow or next week. Um you know, this is why I say I probably wouldn't buy when it's up 16%. Maybe we just need a quick breather here. Market needs to digest what just happened, obviously. >> Yeah. >> But, I think we're going to be much higher in the next 1 2 3 4 months. And so, if you have a little bit of patience, then I think you want to be buying anytime the market is red over the next little bit here. If you didn't do that already uh in the last 2 weeks. Uh again, in good companies. You got to make sure you do your research and know the companies to buy. >> Uh Kyle, will this will this event also perpetuate the rotation to the application layer that you've been talking about, right? Because the thing is is that you've got, you know, I just think about it from somebody who was up a lot on the Microns and the Nebiuses and the Blooms. And it's like, well, they maybe they sold, the things are down, it's an uncertain future, but there's a rotation and you've been calling for the rotation to applications, right? To software companies that are using AI, uh healthcare, biotech, that kind of stuff. Will retail then now be like, I don't know if I can go back into a Micron emotionally, but I'm going to look for something else that's going to maybe do a Micron. I don't think Eli Lilly's going to do Micron, it's already at a trillion dollars. But, you know what I mean? It's just like, I'm going to I'm I'm going to look for a new flavor this the rest of the year. >> You can. I So, I think that we're going into a world where both the application layer and the AI infrastructure layer are going to do well together. This has not happened all year. All year it's been AI infra stocks do well, and that means anything on the application side does really bad. SaaS has sold off 50% at a time when A infrastructure is up 500, 600%, right? And then we saw over the last couple months here that anytime the infrastructure stocks would sell off, you would see certain SaaS companies go up, right? You would see Apple go up and Eli Lilly go up and and the things that are not part of the infrastructure trade. Uh and then vice versa, all of a sudden infrastructure stocks would do well and they would go down. Look at today, okay? So, yesterday, the last four days when infrastructure has been just getting cooked, I've been pointing out that, "Hey, me and a few other analysts bought some of these um SaaS companies down here, okay? Down at its bottom." And every time it goes and you look, we've been getting crushed the infrastructure side and it's gone up like 30% ServiceNow. Same with um Salesforce, okay? They just absolutely been crushing and then what happens? Everything goes up today and ServiceNow is down 6%, right? So, the key is, again, think about it. Were you buying yesterday after this thing went up 30% in four days? If you were, you're making a mistake, right? Now, it's in the red. It's down 6%. I don't think that's probably a decent time to be buying. Maybe it continues to go down as the infrastructure stocks go up. I would be buying. So, what I think you want, at least my portfolio is a barbell. So, I'm trying to buy the application layer anytime it sells off, right? And then buy the infrastructure layer anytime it sells off. And like yesterday, I took profits on Apple. The thing's been running for months, right? That's kind of application layer in my opinion, even though it's it's obviously still hardware. But, um took some profits on that where so I could buy some infrastructure side, right? And you just a barbell and you keep kind of riding these things up. The key is, don't buy don't chase things. That's the main thing that I think people need to learn here. >> Mhm. Mhm. Mhm. [clears throat] Absolutely. I think that's a good philosophy and it's funny it's funny to see the counter trade. Maybe people selling they did well on ServiceNow and now they're selling to buy the other stuff, you know? That's that's just fueling the surge, a little rotation like that. All right, Carl. Well, I mean, I think there's >> plenty of room to go in these in these SAS stocks, by the way. Look at if I zoom out here, look at how far these things came down, right? And and again, going back to earnings and just how we're in a the economy's doing so well is ServiceNow had their earnings last week and their business is accelerating due to AI, right? Not getting hurt, which is what everyone thought and the reason why this sold out. So, I just we're going into this moment where everyone that's touching and integrating and using and applying AI, their businesses are booming. And that you just don't have a a time like that in markets where just like everyone that's integrating the same technology is just seeing unbelievable ROI. And that's exactly what's happening right now, which is why I think there's still so much demand for this and the market's going to go much higher. >> Right. Right. Okay. Well, that's a good deal. >> in the dot-com boom and bust, actually, that wasn't the case. Everyone that was applying like, you know, building a website or trying to build whatever, they were not profitable on that stuff cuz there was no users, right? It was It was almost like capex. They had to spend money to go do that stuff, right? To go figure out, you know, they they they they had to host their own websites and they had to buy servers and do all these things and it was costly and it was not very profitable. They just knew it was kind of the future and so, that's why these stocks got so overvalued. Today is different. The moment you apply AI in your business, boom, your profits go up. And we're seeing that in so many different levels, whether it's, you know, advertising or you know, renting out compute or it's your SAS products that are governing these things. Like, it's just nonstop. So, it's a totally different world. >> Mhm. Mhm. [clears throat] Good theory. All right, Kyle. Well, we'll see how things shape out, man. I feel like we'll have a lot more to talk about already on next week's roll up even though it's not for another 5 days. And like you said, there's still by the time people are listening to listening to this, probably, there'll be even more earnings from two of the top most valuable companies in the world from those valuable companies in the world that's also going to report earnings. And and who knows what that'll do, but this is a good theory and a good a good a good gut gut check on days like yesterday. I like we're living through a lot of these historic days in a short time span right now. So, it's a good time to be paying attention. >> The These are the moments that you remember in markets, and you got to remember how well you performed during them. Like, you see how every time I look at a dip from the last 3 years, I can tell you the event that happened, >> Mhm. >> and I know what I did I know what I was feeling, I know where I was, I know exactly what I did during those moments, and I made mistakes, and sometimes I did great. It's like as an investor, that's what you need to do here, cuz this is one of the moments we'll look back on uh in next year or year, you know, multiple years from now. >> What are we going to call this one? The Leopold Day? >> I don't know. What is uh the Korea the leverage unwind? >> The leverage unwind, the the Citadel uh Leopold swing, I don't know, something like that. Anyways, Kyle, pleasure. Thank you. If you want to see Kyle's portfolio, it's a Dollar Milk Road Pro at the link below. And also, you know, with that, people can also ask you questions, Kyle. People can talk to you, right? Like, this is like We also have a Discord. Kyle posts updates in our Milk Road Pro platform along with Martin and Vincent and Melvin and John also writing a lot of stuff about this in the last couple days. So, uh lots to track there if you are a Milk Road Pro member or you're curious, you can check it out for 7 days uh for just a buck. So, check that out. Otherwise, Kyle, thank you for your insight, man. Uh great to do a show like this on a day like today or a week like uh this one where pretty historic, and like you said, an event we'll remember, hopefully, maybe. [music] >> Absolutely. Yeah. Thanks for having me on. >> Want to stay ahead of the biggest technological shift in history? Subscribe now to get insights straight [music] from the sharpest minds in tech and finance. Quickly, you'll note this show's for educational purposes only. Nothing here is financial advice. Investing always carries risk. Never invest more than you can afford to lose. Thanks for tuning in. See [music] you in the next one.