Bill Gunderson and Barry Kite explore the intricate dynamics and strategic rebalancing within investment portfolios by major Wall Street firms. The discussion provides an insightful look at why certain stocks dominate institutional portfolios and how these firms navigate liquidity challenges. Additionally, the episode covers the implications of a dynamic economic landscape influenced by pivotal policy changes and industry-leading stock movements.
He’s been seen on CNBC, the Fox News Channel, and the Fox Business Channel. His articles can be found on MarketWatch, Seeking Alpha, TheStreet.com, and many other places. He’s the author of the weekly Best Stocks Now newsletter and the inventor of the Best Stocks Now app. He’s president of Gunderson Capital Management. Here is professional money manager Bill Gunderson.
SPEAKER 07 :
And welcome to the Tuesday, Wednesday. It is Wednesday, July the 2nd as we come up on a big holiday weekend. This is Bill Gunderson, President of Gunderson Capital Management. And this is the Best Stocks Now show. And we are off to kind of a sluggish start in the market today. We had an interesting day yesterday that I want to talk about a little bit. But I think maybe they’re leaving for the big holiday early here. We do have the NASDAQ up 69 points. That’s better than yesterday. And the Dow, which had a huge day yesterday, a lot of the kind of garbage, no-growth Dow stocks had a good day, while the leadership stocks in the NASDAQ had a bad day yesterday. Today it’s the other way around. The NASDAQ up 69, Dow down 93. The S&P is up three points, very quiet there. The small caps doing very little today. They’ve not had a very good year. We look over at the bond market. You’ve got interest rates up a little bit on that big package. Senate passed the big, beautiful, big, ugly, big, bad bill yesterday. And now it’s up to the house to put the finishing touches on it. The gold markets were up yesterday on that news. And I’m seeing the interest rates trickle up about six basis points here today to 4.30. Gold today is up, no, down 10.10 basis points. So welcome to today’s Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management. I’m here with Barry Kite, our chartered financial analyst. Barry, I’ve come to the conclusion on something, which I think it’s a logical conclusion. I think when you take these big Wall Street institutional names, I think they trade heavily amongst about 100 stocks. You can list the 100. We could make an index, the Wall Street shopping market. And I think they just exchange a little bit in their basket every 90 days. And I’m talking Target yesterday had a big day. Wells Fargo had a big day yesterday. Home Depot had a big day yesterday. A lot of these, what I consider to be soggy stocks, I think they just kind of trade them amongst themselves. And they do a little bit of reallocating every 90 days.
SPEAKER 08 :
Well, and they’re the ones that hold all of them. Well. When we look at those institutional ownership numbers, I mean, I use UnitedHealth as a great example, a stock that you would have ran from over the last six months, probably over a year and a half, but 90% institutional ownership. And so the only people that own it are…
SPEAKER 07 :
And they exchange it amongst themselves because that’s the only place where there’s enough volume for them to trade the big blocks of shares like they do. And just from a logistical point of view, as a guy who’s traded stocks and bought and sold for the last 25 years, you do need liquidity.
SPEAKER 08 :
Like you said, Target’s 84%, by the way.
SPEAKER 07 :
Yeah, okay. So let’s just say that I was told by someone who used to work there that Merrill Lynch has about 20 portfolios for clients to choose from. And it’s just kind of a little different variation from amongst those 100 or so stocks. And that’s why, you know, the Kimberly-Clarks and Johnson & Johnson and Merck and Pfizer, which all had a big day yesterday at the first day of the quarter, which is the natural time that they would be doing their rebalancing. But it just makes sense. It’s almost like the corner that Warren Buffett has backed himself into, where he’s limited to about 50%. 50 or so, maybe 100 stocks to choose from because of the liquidity and how big do you think? If Merrill Lynch has their clients spread out amongst 20 portfolios and they decide to make a change at the end of the quarter in one portfolio, lowering their exposure, rebalancing, et cetera, they’ve got to do it amongst these great big giant stocks. And I think their hand is limited because of how much money they manage and how big those portfolios are. So that’s just my takeaway. And I come to that conclusion because the action I saw in the market yesterday and where it shows up is on, okay, first day of the quarter. That’s rebalancing day. They don’t rebalance on the last day of the quarter. They rebalance on the first few days of the quarter. So yesterday you had this giant lopsided day where all the soggy stocks led the parade, okay, where they’ve been trailing all year long and really for the last 10 years. They had a huge day yesterday. And I sent out several charts yesterday as an example. I said, look at this big jump in Target. Did all of a sudden their fortunes change and they’re going to go become a double-digit grower? Why is all of this action? Well, then I saw a pattern. I saw the same kind of action in Pfizer. I said, did Pfizer come up with a new drug today or something? This is the best. I saw the same action in Intel. I saw the same action in the big banks, in J.P. Morgan, in Goldman Sachs. It’s a growth stock, but the other banks are not. Wells Fargo, et cetera. They’re single-digit growers. That’s where all the action was in the banks and in the low PE, big, soggy stocks yesterday. And as a source of funds, you know what little exposure they have to the winners in their portfolios, maybe the Palantirs, I don’t know, maybe the NVIDIAs, et cetera. They had a big sell-off yesterday. So in my book, they were using those as a source of funds. to increase their exposure to stocks that didn’t perform well in the first half of the year. So you’re lowering your exposure to stocks that did well, and you’re increasing your exposure to stocks that did not do well. And I’ve always found that people will ask me, should I average down on this stock? I’m down about 25% on it. That’s not a good strategy. You’re throwing good money after bad.
SPEAKER 08 :
If you like it at 100, you love it at 75, right? Yeah.
SPEAKER 07 :
You know, add to your winners, not to your losers. But, you know, that’s pretty much how Wall Street works things. Just from the natural flow of things and the logistics of it all, if a stock is owned 90% by an institution and you want to unload a bunch of shares, the only one that can buy that is another institution. So I just think they kind of trade those stocks amongst themselves and try to keep everybody a little bit happy.
SPEAKER 08 :
It’s like the old original Wall Street, right, where they’re in a circle and kind of all going back and forth.
SPEAKER 07 :
Kind of a racket in a way.
SPEAKER 08 :
It’s kind of like a hobby. It sounds like trading cards, right?
SPEAKER 07 :
We got a bunch of this Target we need to get rid of. Somebody had to get rid of it for somebody to buy it. So maybe Merrill Lynch exchanged it with Wells Fargo, you know, or Morgan Stanley had a bunch of Chevron to get rid of, which had a good day yesterday, and some bigger firm or some other firm bought it from them. I don’t know. That’s just my takeaway from yesterday. And, of course, the other stocks, the leadership stocks, the NVIDIAs, The AMDs, the Broadcoms, the NVIDIAs, or the Palantirs of the world, they had an off day yesterday. Now, and you know who else is caught up in this circle? is the big financial channels. The CNBCs of the world, you know, who advertises? Who are their big clients? Morgan Stanley and Bank of America. And when they start seeing action in these great big stocks, they get all excited over there at CNBC and say, oh, you know what else? The railroads were having a huge day, okay?
SPEAKER 08 :
I saw your CSX post.
SPEAKER 07 :
Yeah. Yeah, which I have a couple of CSX HO and O locomotives because they’re Charger. They’re San Diego Charger colors. They’re blue, yellow with the lightning bolt on the side. Reminds me of Dan Fouts and Eric Oriel.
SPEAKER 08 :
Yeah, pride of Jacksonville, Florida, CSX. Yeah. They used to be headquartered next to my office.
SPEAKER 07 :
Yeah, you drive right by. I think it’s right along the freeway there. You see it. Yeah. Kind of a weird place.
SPEAKER 08 :
Yeah, right by the river, too. Yeah, right by the river. If you’re on 95 and you’re coming through Jacksonville right there, you don’t got much time to look around that spot. That’s a weird spot right there.
SPEAKER 07 :
Yeah, you wouldn’t think a railroad. I mean, you’d think a railroad would be in Nebraska, Omaha, not Jacksonville. That’s where they’re headquartered. So the railroads had a big day yesterday, and I could just see CNBC today talking all about that. Is it time to buy the railroads? Is it time to get back into Target and all of these big dinosaur stocks? And then it peters out after about a week or so, and the leaders take charge once again. We’ll see how that holds true. But I don’t think at the end of this year we’re going to look back and say, gee, I wish at the halfway point I would have loaded up on Wells Fargo, CSX, Pfizer, etc. We’ll be right back. And welcome back here to the second quarter of today’s Best Stocks Now show. Quite a bit of news in the markets today as there’s a little bit of a hurry up on the news feed so we can take Friday off. Paramount pays $16 million to settle the Trump lawsuit over the 60 Minutes interview. I bet they hated to write that check. Of course, they’re the parent firm of CBS, and that had to do with the 60-minute interview with former Vice President Kamala Harris. That’s a pretty big check that you had to write there. That’s the art of the deal, right?
SPEAKER 08 :
Didn’t you say he asked for 20? Asked for 20, got 16. That’s 80% of the number that he asked for. That’s kind of a little art of the deal.
SPEAKER 07 :
Minus the legal fees, whatever they were. I’m sure his attorneys aren’t cheap. U.S. private sector employment unexpectedly dips in June. I wouldn’t get too hot and bothered about that. The U.S. private sector lost 33,000 jobs, a reversal from a gain of 29,000. The big one is coming up, did you say tomorrow?
SPEAKER 08 :
Yeah, so they moved it up a day because July 4th, so we’ll get a rare Thursday, non-farm payrolls. But yeah, the ADP number, for whatever reason, it’s usually… wrong compared to whatever it looks like on the non-farm payroll side, but we’ll see.
SPEAKER 07 :
U.S. job cuts announced in June ticked down from a year ago. It’s my observation looking around. I’m not seeing any weakness in the job market, which would be one of the first shoes to drop as we enter into a recession.
SPEAKER 08 :
I would say, did you see where Microsoft, you know, getting rid of, I guess, way off 9,000 additional workers, but the reason there is I saw the, yeah, 30%, apparently 30% of their code currently is being written by AI at Microsoft. That’s what, according to the CEO, so.
SPEAKER 07 :
Yeah. I’m waiting for the day when I come down here to my office in the morning and there’s a robot sitting at my desk and say, hey, pal, you got the day off. Go fishing. I’ve got this covered for you. I don’t know if that will ever happen. But I got to believe that the layoffs in the tech sector. They’re very vulnerable, very vulnerable to this AI that is sweeping the world right now. The U.S. halts Ukraine weapons deliveries. Why? Because our stockpiles are almost depleted. according to Hegseth, which you would think that would be pretty bullish for the defense industry if we’ve got to replenish a lot of these weapons. We paused shipments of air defense interceptors and other weapons bound for Ukraine. Turned it around and said, hey, opting instead to redirect the equipment to bolster American military stockpiles, according to the Trump administration. The decision reflects the shift in U.S. priorities, I’ll say, as the administration emphasizes readiness for long-term challenges, especially in the Middle East and Asia, over continued large-scale support for Ukraine’s defense against Russia. Okay, well, a new president comes along, the priorities shift, and that’s what you get. The next president will deplete our weapons supply and start supporting Ukraine again. Asia stocks dip amid U.S. tariff deadline jitters. I saw that Trump is threatening Japan especially. saying, you know what, I’m not going to extend the deadline, which is July the 9th, by the way. That you might want to put on your calendar when we come back from a holiday. Fourth, fifth, sixth, that would be next Wednesday, is the deadline on those tariffs. You know, he paused the tariffs for 90 days on several countries, most of them, in fact. and that’s coming up, and he’s threatening not to give them. Yeah, July the 9th. He’s threatening to not give them another extension. So something else to think about over your three-day weekend.
SPEAKER 08 :
I saw an interesting panel. I saw an interesting panel yesterday. They had a bunch of the different Federal Reserve agencies chairmen are equivalent of different banks around the world and they asked the Japanese leader about that the Japanese finance minister about the tariffs and he said essentially no comment because he deferred to the person in charge of actually the Japanese side of that negotiation so just like Powell has been attempting to stay out of the tariff discussion he He backed away from it real quick.
SPEAKER 07 :
Yeah, that’s a hot potato.
SPEAKER 08 :
He’s like, I don’t want any part of that.
SPEAKER 07 :
As I said, you know, yesterday a lot of the leadership stocks were a source of funds. They seem to be picking back up here today. Okay, I’m going to use Robinhood as one example. Look at that thing today. Now, that’s a conundrum as a money manager. Yeah, now it’s up 7.1%. So we picked up Robinhood in the ultra-growth portfolio on March the 12th. which was about three days after the low in the NASDAQ. And Robinhood, since March the 12th, okay, so you’re less than four months from the buy point, is now up 152%. Now, here’s my conundrum, and I don’t know if Wall Street, I wonder if Wall Street, once they get, if a position, if something triggers, if something becomes 5% of a portfolio or 6%, I don’t know. But I’m sure they have rules that they have to abide by. And maybe they automatically have to sell when it gets too big in a portfolio. Well, Robinhood in our ultra growth portfolio is now at 11.9% position, but here’s the rub, Barry. It’s still hitting new highs. Okay, so what if I had an automatic rule? This is part of being unconstrained. What if the charters of my fund, ETF, mutual fund, whatever you want to call it, hedge fund, said, hey, you can’t have anyone. The bylaws say you can’t have any one position that is bigger than 5% in your portfolio. Well, you would have missed out on it. You have to keep trimming this one, yeah. You just kind of have to take it a case at a time. You can’t be constrained. That’s what started to bother me about the dividend and growth is that it has to pay a dividend. That’s constraining yourself. because most of your income is going to come from capital appreciation, not the dividends so much. You’re not going to live off of dividends. You’re going to live off the dividends that are going to be part of it, or no dividends at all. They’re not necessary, but most of your gains are going to come from your capital appreciation over time, if you think about it.
SPEAKER 08 :
Total return, right.
SPEAKER 07 :
When I got into the business 25 years ago, the Dow was at around 3,500. Now it’s 43,000. It’s up 40,000 points. Those points are all capital gains. The dividends really are a very small part of the overall picture. And yet there is an obsession on Wall Street. That was another area that had a big, big jump yesterday. A one-day phenomenon, I would call it, were the dividend ETFs, like quality dividend ETF. They were up like 3% yesterday. We’ll be right back.
SPEAKER 09 :
I don’t say the right thing, but I must have used the wrong line.
SPEAKER 07 :
This is Bill Gunderson. Thank you for tuning in to today’s Best Stocks Now, Best Inverse Funds Now show. I put several hours of research in during the wee hours of the morning each day to bring you the very best cutting-edge stories that I can. To get two free weeks of my newsletter, go to GundersonCapital.com. To talk to us about our fee-based only money management services, call us at 855-611-BEST. Now, back to the second half of the show.
SPEAKER 05 :
and welcome back here to the second half of today’s best stocks now show let’s just check in on uh
SPEAKER 07 :
Oh, the market’s here very quickly. You know, usually you get a shortened week. It starts early, normally. I think it started last Friday, thinking about the 4th of July. Now, yeah, you know, look, the NASDAQ’s actually picking up a little bit, which, you know, I kind of had the opinion that yesterday was a one-day phenomenon. where you saw big sell-offs in CrowdStrike and Palantir and CoreWeave and some of these market leaders in the first half of the year, and you saw the big outsized gain by the Dow, well, that was a one-day wonder, too. Today you’re seeing the Dow down 40 points. It’s going back to its normal place in line, which is third or fourth place, and the NASDAQ is assuming its leadership here today. and the NASDAQ is now up 137 points or 68 basis points and that could be a new all-time high there okay well let’s let’s look at gold gold was obviously a huge winner in the first half of the year and it had a very favorable environment as an asset class number one you had all the turmoil in the Middle East number two you had all the turmoil with the trade wars and everything And gold outshined stocks, really, in the first half of the year. It ended up about 24%. It was up 30% at one point in time. But the long-term average of gold is 5% or 6%. Okay? And even though gold had a good first half of the year, I look at the chart and I see a major leveling off there. Now, I don’t know what your course instructor would say, Barry, from your… your charting school that you went to. I call that a number three topping off. That’s after it’s been going up. It levels off. Like an airplane taking off from Charleston International Airport.
SPEAKER 08 :
It’s been range-bound. It’s been range-bound really since late April, really.
SPEAKER 07 :
Exactly. It’s range-bound, and it’s done much, much better than average over the first six months. And that would be one. And we did. We lowered our exposure to gold, not because it had become too big of a position, but because of the favorable winds that it had at its back. subsided and now gold is kind of flying at a normal uh doesn’t have those uh tailwinds behind it anymore and i see it uh you know performing like it always has maybe even underperforming bmi holds a neutral view on gold so they pretty much back up What I am saying here, I don’t think you’re going to get the same performance out of gold in the second half of the year that you got in the first half of the year. The state of the bond market, would you be happy? We do have a few people that we manage money for that want ultra safe. And they have all of these different non-correlated, that’s probably one of the biggest growth areas in our industry. are alternative investments, alternative investments. But in parentheses, the fine print, I would put commission-paying investments, right? Most of those private, whether it’s a non-traded REIT or if it’s private debt, that seems to be the hot ticket right now is private debt as far as non-correlated investments. Alternative investments, alternatives to the stock market. And I decided a long time ago that I don’t want to play any of that game more than two decades ago. And I said, what’s wrong with buying a portfolio of six to seven year bonds, holding them till maturity for the people that want that kind of safety, okay? With very little volatility. So here’s an example today, Hilton. I mean, Hilton’s what, one of the second, third, biggest hotel, maybe the biggest in the world. You can buy a bond going out to 2033 and get five and three quarters percent. So you figure, you know, you’re 10 grand, you’re going to make five and three quarters percent on it every year. Of course, you can take that five and three quarters percent and buy more bonds with it. You can reinvest in other bonds and continue that thing rolling. And at the end of the period, you’ve made five and three quarters percent for seven or eight years and you get your principal back. Unless Hilton, unless something big happens, which, you know, isn’t likely, but there’s always that risk. I’m just saying that as far as there’s no commissions involved, there’s no big, giant, heavy management fees involved.
SPEAKER 08 :
No contractual fees. In terms of if you’re in some kind of annuity, fixed annuity that’s paying 4% or 5%. The bonds are liquid, so you don’t have some of the liquidity risk of some of these other different products or investments out there.
SPEAKER 07 :
We’ve met with a lot of people, I have, over the last 25 years. You and I have met with a lot. Have we ever sat down with somebody that was happy that they had purchased the Whitty?
SPEAKER 08 :
Not thrilled, put it that way.
SPEAKER 07 :
We’re just telling you the truth here. We don’t have really a bone to pick at this. We don’t have a dog in this fight other than what we hear from people, what we hear from consumers. And there could be planning reasons.
SPEAKER 08 :
Right, and there could be financial planning or potential reasons for that, right, to hold that. But as an investment, a lot of times, particularly if you’re looking at it as a standalone investment with surrender charges, illiquidity potential, and other parts of it, and high fees, a lot of times it just doesn’t make sense from an investment standpoint.
SPEAKER 07 :
No, and most people are taking that 10% out every year just to get out of the thing. They can’t take it all at once because they would get hit with huge surrender charges. I’m just saying those are just my observations over the years. And I’ve also, I think the private REIT thing turned into kind of a disaster, really, because a lot of people got held. They’re stuck. How many private REITs?
SPEAKER 08 :
They might still be in there.
SPEAKER 07 :
They’re still in them.
SPEAKER 08 :
Right, because they haven’t had that liquidity event that they thought they would in terms of the initial setup of the investment where, hey, you might be in this private REIT for we hope to get out in five to seven years. Well, Andy may make some interest along the way, and sometimes the interest doesn’t come, and then sometimes maybe the interest comes, but that principal payoff in the five to seven years is still locked up for a while, right?
SPEAKER 07 :
Was it Mark Twain? He said, it’s not so much the return on my money, it’s the return of my money. What in the world would be the advantage of buying into a private REIT versus a publicly traded, totally liquid REIT? Can you explain that to me? What advantage there would be?
SPEAKER 08 :
Well, the problem with a publicly traded REIT is, the good news is obviously you have liquidity. The problem is a lot of those real estate type investments, there’s value in that illiquidity piece, right? There’s the illiquidity premium, which kind of helps it be quote unquote non-correlated sometimes to the market. But when you wrap it up in a market wrapper and you trade it on an exchange, what happens? It ends up looking a lot like the market.
SPEAKER 07 :
Exactly.
SPEAKER 08 :
In times of crisis, particularly.
SPEAKER 07 :
And, you know, I remember in the early days of that private re-craze, they weren’t pricing those things every quarter. They were listing the value as what you put into it because there was no market for it. And the SEC came along and said, whoa, wait a minute. This guy put $50,000 into this reed, and you’re telling me a year later it’s still worth $50,000? How do we know that? So they got into a lot of trouble, and they had to start pricing those reeds at some kind of a market value. So I just think the whole thing was a disaster myself. And who made out with the big commissions were the big Wall Street firms. Okay, what else do we have? Oh, look at this lawsuit against Google. We talk about what do you say that we invent, Europe regulates, China counterfeits.
SPEAKER 08 :
Yeah, it’s U.S. innovates, China imitates, and Europe regulates.
SPEAKER 07 :
Well, you can add California to that Europe part. On Tuesday, a jury in San Jose, California said Google misused Customer cell phone data and must pay over one-third of a billion dollars, $314 million. That’s a pretty big check to Android smartphone users in the state. Okay, so that was a jury award. which I’m sure will be appealed, but that’s what the jury decided. I don’t know, how did they arrive at that number? 314.6 million in damages because they misused the information of California cell phone users, Android cell phone users. We’ll be right back.
SPEAKER 04 :
On a winter’s day
SPEAKER 07 :
And welcome back here to the final segment of today’s Best Docs Now show. Tesla gains after Q2 deliveries tally is not as bad as feared. They announced that they delivered 384,122 vehicles in Q2. The consensus was 389,000. The electric vehicle giant produced $410,000 during the quarter. The company said 2% of the deliveries tally was subject to operating lease accounting. So it was better than expected. And Tesla’s stock had a bad day yesterday, very bad day. Tesla stock today is up 4.6%. And I see that Elon himself is taking over the sales part in Europe and the U.S. He fired one of his lieutenants, and he’s going to do it himself. in between fighting with Trump. That feud seems to be back on again. Rigetti computing in focus as Cantor starts with an overweight rating. You know, here’s my key takeaway from Rigetti, however. They say quantum computing is in its infancy, but remains one of the most highly coveted technical milestones. It’s kind of like the cure for cancer, maybe not that bad. with enormous economical implications, says analyst Troy Jensen. While we are likely years away from full-scale quantum capabilities, the technology has already captured the interest of investors. As such, companies in the sector have seen meaningful appreciation and now trade at steep valuations. Rigetti recently completed a $350 million at-the-market equity offering to help shore up its balance sheet. So you know what? You be the judge yourself. Are you willing to invest in something now, today, that could be years away? And they have no order book right now. They have no orders for any of this stuff. So that’s what you’re fighting in this quantum sector. Highly shorted jack-in-the-box fires off a poison pill to defend itself against activist investors. Well, Barry, can you… The old poison pill. In layman’s terms, is that one of their tacos at midnight? Is that the poison pill? Or, you know, what’s the poison pill?
SPEAKER 08 :
Yeah, it’s, you know, essentially it’s building something into a deal that, you know, that if triggered, you know, it basically, you know, It creates, say, financial suicide potentially, right, for a company. So essentially it would never get – the idea would never get to be triggered. It’s just there as a fail-safe. But it’s – you know a these you know activist investors and and you know it’s a way to protect against uh poison pills a way to protect against some of that stuff but yeah well you got uh you know boards and you know it’s interesting i mean boards and uh and obviously uh you know shareholder votes and those things um a lot of times it’s tough because a lot of those those you know Positions and voting shares are what we talked about are the institutions, right? And so that’s where you get, that’s where this stuff comes in.
SPEAKER 07 :
You have an institution that’s taken a 9%, 10% stake in the company, and they’re starting to get very nervous about that. When I was out in California recently, we don’t have Jack in the Box out here, but I grew up with Jack in the Box. It actually started in San Diego. It was called Food Maker.
SPEAKER 08 :
Oh, really?
SPEAKER 07 :
Yeah. I mean, it’s not that good. But you know what? Look, I ate plenty of Jack in the Box hamburgers going through college and high school and everything. And a day at the beach, there’s usually one down in the beach area or something. And I did kind of like their tacos. So there was one out there when I went fishing in California. I did have some Jack. They’re just as bad as always. But it still kind of hit the spot. I’m not going to go running about.
SPEAKER 08 :
It’ll fill you up.
SPEAKER 07 :
Yeah. I mean, we don’t have enough of that stuff in our neighborhood. We don’t have that much. We’ve got McDonald’s and Chick-fil-A, and that’s about it.
SPEAKER 08 :
It’s hard to get employees around here.
SPEAKER 07 :
I guess so. We just don’t have a lot of fast food available. Geely plans to launch an electric vehicle. That’s what we need is one more player in the electric vehicle market. Geely is the company out of China that owns Volvo. That’s another headache that Elon Musk has. He didn’t have any competition for a long time. You know, just the startups like Rivian and Lucid, etc. But now China has taken the world by storm. Whether they’re selling them or parking them on a vacant lot somewhere, I don’t know. But they’re producing a heck of a lot of EV cars. You have that headache on the one side with this big increase in supply. And on the other side, in my book, you have a demand problem. Because people have learned that there’s a lot of inconvenience that goes along with having, especially if you’re in an area like we are, where the charging stations are not as closely clustered together as they might be out in California. or other areas. Okay, the last story, I don’t know what happened to all the beer drinkers, but Constellation Brands, they’ve had several bad quarters. I’m going to blame it on the weight loss drugs, because not only do the weight loss drugs kill kind of your overall appetite, but I’ve heard that a lot of people have stopped drinking.
SPEAKER 08 :
And smoking, too, like all types of vices.
SPEAKER 07 :
Yeah, I mean, a shot in the stomach and all of a sudden you’re vice-free and you’re losing weight. What could be better? I mean, I don’t know. I guess it’s kind of a wonder drug. But at the same time, it’s Tecate beer or Corona beer and this kind of thing is not selling like it used to. I remember a time when Constellation Brands was a major player, and they were gobbling up all of these.
SPEAKER 08 :
They probably have some tariff issues, I would imagine, potentially, right?
SPEAKER 07 :
These craft breweries, that’s such a crowded field. Some kid that wants to get started on a craft brewery in today’s world. Was as crowded as that market is. I wouldn’t recommend it. All right. Well, we are out of time. We kind of have a shift back to kind of a normal market after a very abnormal market yesterday. If you’d like to talk to us about money management. 855-611-BEST-SETUP-AN-APPOINTMENT. We’ve still got to get firmed up on that Detroit date. I guess after the 4th of July we’ll start really thinking about that. But it’s going to be in early August. We do know that. If you want to get the four-week trial to the portfolios that I manage and the trades we make, et cetera, and get access to the app and four weeks of the client newsletter, subscriber newsletter, Go to GundersenCapital.com. GundersenCapital.com. Have a great day, everybody.
