Nancy Pelosi Just Made Her First-Ever Trade in This Stock

This was a huge week. We have Dell, Micron, Nvidia, Sandisk, and Super Micro all broke out. Are the AI data names taking back a leadership of the market? >> We certainly are. And you know, it goes back to earnings, I think, after Dell's announcement that their sales would be impeded by the memory shortage. Between Dell saying that and Nvidia saying that, it just lit up Micron, Sandisk, all the other memory-related stocks as well. I mean, obviously, Dell and Nvidia are going to have incredible results in the future. It's just they'd have even more incredible results if they could get enough memory chips. >> So, you used the phrase earnings nirvana on Fox Business. What did you mean by that? >> You know, we just came off a quarter with 53% earnings growth on the S&P. I will admit that was momentum. We're decelerating at 28.9 forecasted for the next quarter. So, I mean, this is earnings nirvana, okay? And the breadth of how this market is broadening out. It's It's encompassing more consumers. It's just time to be happy. We just saw it in Costco's same-store sales. It was stunning. >> Well, basically, it's never going to get better than it is now. I mean, we just came off a 53% annual earnings growth of the S&P 500. The third quarter is forecasted at 28.9%. I'm sure we'll beat that and go higher. There were some extraordinary earnings from TeraFree Bates that helped Amazon and some other companies, but this is as good as it gets. So, earnings momentum will start to decelerate from here, but you know, we're decelerating still to over 30% annual pace on the S&P. And that's stunning. And of course, our stocks will continue to sustain over 100% earnings growth. >> But that memory shortage you keep mentioning, it's not just data centers, right? I saw that it's also about to hit Apple, too, with the September 9th reveal coming up. >> Correct. So, Apple did increase the prices of its its computers, its MacBook Pros, its iPads. They didn't increase the price of the phone because on September 9th, I assume they're going to be increasing the prices of the phones. The new iPhone 18, the the iPhone Ultra, and apparently the Ultra is now supposed to be $2,300, the base model. You start adding a bunch of memory on it, and it'll get to even more expensive. And apparently, you can order an iPhone Ultra and still use your old phone. So, you could have, you know, your iPhone Ultra at home, you could have your iPhone 17 or 18, you know, for the for traveling. So, it's going to be an interesting reveal, but I think the big news will be about the iPhone Ultra. And there's no doubt about that. They engineered it so you don't have a crease in the screen. Uh it's supposed to be thinner than their their current thin phone when it's opened up. So, a lot of people are very excited about this product. >> Speaking of Apple, with all the business Apple does in China, I bet the new CEO is going to be at the White House state dinner when Xi visits on September 24th. >> Yeah, that's going to be a big deal. You know, China's exports are breaking into record territory. And so, despite us trying to put tariffs on China, and China, you know, has done sub-assembly in Vietnam, Mexico, Canada, and we've tried to have those countries curtail that, but they still have record exports, and they dominate certain things. So, that's going to be a very interesting meeting, and Apple wants to buy memory from China because there's such an acute shortage. The other big thing is President Trump wants President Xi to basically reiterate that Iran should not interfere with the Strait of Hormuz. China is Iran's biggest customer for oil. So, by interfering with Strait of Hormuz, it hurts China. So, they're trying to basically do a kind of a pincer move on Iran and get a major country like China tells Iran what to do. It'll be interesting if they actually behave. But yeah, that state dinner is a big deal, first big trip for President Xi in a long, long time, and I think that'll help lift the market because, you know, the world likes peace and harmony, and that's what they're going to try to project at that White House state dinner on September 24th. >> Yeah, there are a few crude tankers moving through the strait again, so that tension's already easing a bit. >> Yes, the naval blockade is working, okay? But we don't want the Iranian ships to go through, and they did fire some missiles at navy ships, including aircraft carrier they didn't hit. So the US actually retaliated by hitting three Iranian tankers that are not supposed to exit cuz the naval blockade since mid July is working. But the recent spike in oil prices, as I talked to you, is due to the Houthis trying to hit infrastructure in Saudi Arabia. And Saudi Arabia and the Houthis have been fighting for a long time. So, yeah, crude oil is near $100 a barrel and normally will fall this time of year cuz worldwide demand drops after Labor Day, but right now we have all these skirmishes going on. But I'm very hopeful that the price of crude oil will be under lower end, which is its normal seasonal pattern in the fall. >> Let's zoom out to Europe for a second because the backdrop there is rough. Is the EU headed for a recession? >> Well, their July retail sales were horrific. They were down 6/10 of a percent. Germany fell 3.4%. Spain, one of the strongest economies, fell 9/10 of a percent. Whether this was heatwave related or not is uncertain, but uh the bottom line, it was a disaster. And there's a lot of uh political upheaval in these countries now, you know. In Spain, they have all the protesters because of the migrant situation in these islands off of Morocco that have been stormed by migrants. Uh these are Spanish islands, and the prime minister of Spain is blaming the EU for not having proper checkpoints there to process the people. But the real big earthquake, by far, was the um regional election in Germany. And in eastern Germany, the AfD party, which is alternative for Deutschland, basically won 43.8% of the vote. Chancellor Merkel's party was second with 17.2. Now, what's fascinating is is the German state police monitor the AFD party. They're trying to intimidate them. The AFD party has been locked out of virtually all ruling coalitions in Germany, and they're not going to be able to do that much longer because they have the votes. And they're going to have 39 of 83 parliament seats. So, Chancellor Merkel is in trouble, and maybe he can orchestrate a majority like French President Macron did. You know, he didn't win many votes, but somehow still ruling France. But, you know, you can't ignore this much longer, okay? And AFD surged to popularity based on two things. One is immigration. They're not pro-immigration in Germany. And two, they wanted to turn the nuclear power plants back on because when they turn those nuclear power plants off, German electricity prices soared, and it destroyed their industrial base. You know, Volkswagen is about to lay off 100,000 people, close multiple plants. And that's not the only automotive supplier company in Germany that's having problems. So, what's happened is, you know, this is a a big big earthquake. So, it's it's funny, you know, as we approach the midterms, you know, the media keeps reminding everybody that Trump's going to lose his majority. He might might definitely lose the house and even the Senate, and then he'll be impeached for the next 2 years. So, while our media tries to paint a picture of how bad the midterms are going to be for Trump and his allies, even though Trump's not running, the opposite happened in Europe, okay? Obviously, they didn't expect this. So, you know, the media is manipulated rightly or wrongly, and this is a big big earthquake. And you know, obviously, Germany's the biggest economy in Europe. Then I think Chancellor Merkel's days are numbered. >> So, if Europe slips into a recession, does that mean interest rates come down? >> Yes, absolutely. Yeah, because global demand drops. And Europe as a whole should be dropping anyway because they got old. The only countries growing are Portugal and Spain from immigration. But, a lot of their new immigrants aren't adding to tax revenues, you know, they're draining the system. No offense to Portugal and Spain. I think they've learned how to get money from the EU from all their new arrivals and somehow not cost them any more money. So, I don't know if that's why they're pro-immigration or it's ideological, but they've been overrun, okay, especially Spain. And other than Spain and Portugal, the rest of Europe is shrinking. And as you get older and and you lose households, you know, spending drops. The only way to counteract that is with AI, but Europe is not very pro-AI, you know, and they don't have the cheap electricity need for the data centers. So, a lot of the data centers in Europe are in Poland, which with cheaper electricity. That's nuclear and coal. Norway's perfect because of hydroelectric. But, yeah, Europe is going to be left behind in this AI revolution, which is really the United States and China competing to see who will win. >> You mentioned on Fox Business floating the idea of accelerated visas for Canadians who might lose their jobs. Were you serious about that? >> The whole tariff fight between us and Canada is beyond stupid, okay? Our countries are intertwined. We depend on each other. This has never been more true than in the auto industry. There's a UAW in Canada and a UAW in America. And, you know, if this trade tiff persists, the auto companies are going to probably onshore more in America and at the loss of Canadian jobs. I can't believe I still expect Quebec to dominate aluminum production cuz their electricity is so much cheaper. Making aluminum costs a lot of energy. Aluminum production goes where the electricity is the cheapest and Canada is blessed by all this hydroelectric. But yeah, I think, you know, we have a shortage of workers in America. If there's going to be more onshoring, I think it would be perfectly logical to offer the visas to any displaced Canadian workers from the tariffs back. Now, Luttner, who's our commerce secretary, basically asked Germany to move their entire auto industry to America. And Germany has very successful plants, you know, Mercedes in Alabama, BMW's largest plant is in South Carolina, Volkswagen's in Chattanooga. They have a new plant in South Carolina for Scout Motors, which isn't up and running yet. But the bottom line is they also offered work visas for everybody they want to bring here. So, this isn't a new idea. And what really gives Canada an edge over us on manufacturing other than the infrastructure and everything is electricity. So, I do think that cooler heads will prevail and everything will get worked out, but I would not be surprised if Trump offers accelerated visas to some of the Canadian workers, which is the least he can do. I mean, I know Canada is mad at us right now, but this fight is is again beyond stupid. >> One more thing before we get to your subscriber questions. This one caught my eye. Nancy Pelosi just disclosed her first ever trade in Bloom Energy. What does that mean for this stock and why is she just getting in now? >> Well, probably cuz of pullback on the situational awareness liquidation cuz that was a big hole in situational awareness. And the bottom line is Bloom Energy has natural gas fuel cells to help power data centers. That's viewed to be extra clean extra environmentally responsible. And you can also spin a natural gas turbine to generate electricity. But bottom line is Pelosi's a great investor. There's no doubt about that. So, when she takes a position, it's usually pretty concentrated and so that has helped a Bloom Energy stock immensely. Her investment. Also, Bloom Energy is being added to the S&P 500 on September 21st, and that's going to help it as well because then it'll get a lot more institutional buying pressure as all the index funds will have to buy it. So, obviously, a lot of exciting things are going on and Bloom Energy is is a big winner, but uh Nancy Pelosi was the was a spark that got the stock running here recently. >> All right, let's clear up something that we had mentioned a previous video. People are asking why you say that inflation doesn't hurt growth stocks. >> Because inflation affects interest rate sensitive stocks more and value stocks more. But, traditionally, when the economy is booming, uh companies tend to borrow money versus issue stock, and that can put some upward pressure on interest rates, and you can make an argument that when Oracle borrows to to build out more data centers, that's putting more upward pressure on rates, okay? Uh so, uh traditionally, when interest rates start to go up, it doesn't derail growth stocks. And the reason you would borrow versus sell stock is because your internal return equity is higher than you can borrow. So, if you have an internal return equity of 18% and you can borrow at 6%, uh the CFO of that firm will borrow. And and Wall Street doesn't care whether you sell stocks or or debt. Wall Street's happy to underwrite whatever you need. >> Another subscriber wanted to ask you, are utility companies a good buy for the data center boom? >> No, because they're regulated entities. So, if you notice when Microsoft asked Constellation Energy to turn on Three Mile Island, the stock did not do well. The big one is NEE Energy, which is buying Dominion, and Dominion powers a lot of the data centers in Virginia. That one might be a little bit better, but you have to get regulatory approval, and that your rates are capped or they follow a formula. So, politicians are now attacking data centers largely because they're blaming them for higher utility bills and I think what politicians like Kathy Hochul are going to try to do is they'll say, "We'll approve your data center if you give people, you know, cheaper electricity." So, no, the utilities are not the best place. Now, independent power producers are totally different thing, okay? They are profiting from the situation, but they also profit from the weather. So, when you're an independent power producer, you want heat waves because then the demand for electricity will be extra strong for air conditioning. >> Someone wanted to know why you give FTNT a quantitative score of A when analysts rate it hold it neutral. >> Well, I've been in Fortinet before, okay? This is a big cloud computing and security stock. They had very impressive earnings beats the last four quarters, so that helps it rise in my system. Their sales are supposed to be up by 19.6% and their earnings are supposed to be up 15.7%, but we have positive earnings revisions. So, it looks great. The only comment is is their earnings growth isn't as strong as I demand, so it's not in my portfolios, but I have owned this stock in the past. It was It was a few years ago and I expect this stock to continue to beat and go higher. I mean, the surprises are especially impressive. >> Well, as always, thank you all so much for your questions. If you have any more, please leave them in the comments below. We are so close to hitting 30,000 subscribers and we'd love to thank you once we reach that milestone by giving out some free books. So, if you would like to receive a free book and help us get to that milestone, please give this video a like and subscribe to our channel if you haven't already, but we'll see you this Sunday for a new video.