In this episode, Bill Gunderson takes us through a tumultuous period in the financial markets. Friday’s intense volatility in gold and silver left investors reeling, but Monday’s market has started with a hopeful bounce. Wall Street’s focus turns, as it always does, to the fundamentals: earnings, earnings, earnings. Gunderson, accompanied by Barry Kite, navigates through the impacts of Kevin Warsh’s potential appointment to the Federal Reserve and other external stimuli, bringing an eye-opening perspective on what really drives market stability.
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 Gundersen Capital Management. Here is professional money manager Bill Gundersen.
SPEAKER 07 :
And welcome to the Monday, it’s the Frozen edition. I think we’ll have Anna and Elsa do the show today. A little cold here, chilly down in the southeast. This is Bill Gunderson, president of Gunderson Capital Management, a nationwide fee-based only RIA advisory firm. And hey, we got a nice bounce going on in the market. I thought Friday was a little sold off there, Barry. It was crazy. I mean, I’ve never seen such a thrashing of an asset class as I witnessed there on the gold and silver, especially silver on Friday. But today we’re in recovery mode. The Kevin Warsh effect has worn off seemingly. The market has come to its senses. It always returns to earnings, earnings, earnings, earnings, and the earnings picture looks good still. We’ll get into that in a bit, but the Dow is up 254 right now, half a percent, 49,147. The S&P is up 40 basis points, 6,966, closing in on 7,000 again. The Nasdaq’s now up 104 points with a lot of earnings on tap. Again, this week, Nasdaq’s at 23,567. Interest rates are calm. The bond markets had little reaction to Kevin Warsh or the Fed meeting last week. It’s at 4.25%. Gold is down a little bit today, but it’s steady. And silver is up just a skosh. And Bitcoin, which has been really reeling here recently, is recovering a little bit here today. So welcome to today’s Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management. And Barry Kite is back with us today, our chartered financial analyst and certified financial planner. What a day Friday was.
SPEAKER 06 :
I was thinking about you in terms of the dynamic of you looking at earnings and envisioning what you’re doing with the S&P 500 and your outlook. You’ve got a lot of earnings that you had to crunch from last week, and then on top of it, throw a whole commodity story right downfall on top of it and it’s like yeah i was thinking it’s got a little bit of uh you had plenty to talk about yeah and of course the sell-off in gold and silver spread to the rest of the market it kind of spread to the risk assets it was way overdone
SPEAKER 07 :
It was way overdone on the upside, number one. Okay, what goes up hard usually comes down hard, and that is a truism in the market. Watch out for parabolic moves. Be looking for the exits. And, Barry, you know, the day before, I sent out a tweet or a, no, a text, an e-mail. To our subscribers, we don’t own any silver. Just what I’ve got in my safe here at home and my pocket. But the folks, we’ve had people transfer silver stocks to us, and I’ve kept them, obviously. And I sold almost all of them. The day before, I called the top in silver. How about that? At 121 an ounce or wherever it was. I don’t know if you saw the email I sent out. Well, I even sent you… We had one client that called and bought it on his own, so he’s kind of on his own when he wants to sell it. But I told Barry, I said, Barry, I think we had a call, and it was too late in the day by then, and see if it’s okay if I sell this. And, of course, it sold off the very next day. It’s way overdone. I think gold is still, I’m still pretty bullish on gold, actually, now that it’s down around $4,800 today. announced gold was down 28.5 percent on friday or silver was 28.5 that is the worst thrashing you got to go back i think to 1980 something like yeah i think it was 19 i think it’s 1980 if i’m not mistaken on and and when you look at i mean you get 15 because we were talking about it the day before on thursday remember we were looking at hey
SPEAKER 06 :
Gold’s down 5% from where, you know, from the high, and it was down 5% from, you know, 12 hours prior it had hit that 5,600 high. And looking at it now, I mean, you know, it’s about 15, almost 16% off of its high gold is. And then, like you said, silver, you know, double that number, right, in terms of where it was coming from and because of that parabolic move that it’s had.
SPEAKER 07 :
Well, they blame it on Trump’s guy that he picked. Now, Warsh has to get through all of the committees, and he has to be approved, but Trump did announce he’s his pick to replace Jerome Powell.
SPEAKER 05 :
Does he wear a miner’s helmet? What does he do?
SPEAKER 07 :
No, he was wearing a combat helmet on Friday with the incoming. But it’s way overdone. That’s ridiculous. There’s going to be a change at the Fed, and obviously he’s got a little different outlook on life than Jerome Powell does. One thing I do remember about Warsh, which he’s infamous for, he was not for the government bailouts, I don’t believe, back in 2008 and 2009. So the markets always had this belief that, hey, if one of the asset classes goes sour, We’ve got the government standing behind it. Yes, they called it the Fed put. And so you really didn’t have to worry if Bitcoin started to go south or if gold or if silver or if the banks or private credit or private. He’s not going to be one to go rushing in to save troubled assets. And I think that’s what shook the market more than anything else. But I wouldn’t worry. You know what you do? You don’t buy troubled assets. You don’t buy private credit. You stay away from things that are bloated. And there’s definitely a technical chart lesson. Now, I don’t know if there was any segments on that in the course you took to become a certified technical. But when you get a parabolic move… parabolic is like almost straight up and it goes up every day you know that’s it’s not a matter of if it’s going to come down it’s when it’s going to come down so now it becomes a guessing game valuation goes out the window it’s all about sentiment and as soon as anything turns that sentiment look out below and the pick of warsh did it on friday
SPEAKER 06 :
There’s no support. That’s the other thing, too. When you’re thinking about a chart, a parabolic move, going straight up, there’s no true support level that you can really draw in there. And it’s way below. If there is one, it’s way below. And the market, and it takes a little while for the market to find, right? What is that support level? We’re going to find out.
SPEAKER 07 :
In the coming days and weeks, we’re going to find out where the real support for silver is. based on its usage, based on the demand for it, etc. But that was kind of a one-day phenomenon. Okay, and what do I do on Fridays and Saturdays? I do the newsletter, and I went through the earnings outlook. And when we started this quarter, this earnings season, the estimates were for 8.3% gain in earnings versus the same quarter last year, which is very good. it went up to eleven point three in other words the earnings are coming in once again this is the bike the tenth consecutive quarter in a row of uh… of this kind of a double-digit earnings growth uh… and uh… i said to myself you know the market’s gonna come back to earnings because the earnings picture still looks good you also had the big sell-off in microsoft that spooked the market last week that The software stocks really got bludgeoned. We called the top in the software stocks, and we even sold the market leader, Palantir, pretty much at or near the top, I think because the earnings picture is so good that there may be a buying opportunity in a few software stocks, and I emphasize a few, but I don’t think that time is here yet. Another thing that occurred on Friday, Barry, that you might not have noticed, there was a huge bounce in the U.S. dollar, which has been selling off recently. And, you know, gold and the dollar have an inverse relationship. Exactly. Okay. And you had that bounce in the dollar. It’s still weak. It’s still a fairly weak asset class. But that was another reason. You know, the market just needed any kind of a reason. And that, of course, set off panic selling because the move had been so hyperbolic. So be careful with those hyperbolic moves. You really can’t buy them and you really can’t short them. You can get crushed. I remember when GameStop went on a hyperbolic move. It put several hedge funds out of business by trying to short it. Remember that?
SPEAKER 06 :
Yeah, and it didn’t matter how much it didn’t make sense. I mean, GameStop, there’s no doubt it’s a troubled entity, to say the least. And, of course, what happened in your head? It’s like, yeah, it should go down, but guess what? It went the other way, and a lot of those hedge funds don’t exist anymore because of that.
SPEAKER 07 :
Yes. Well, when we come back, there’s a few other commodities. It really was a rally in all the commodities. It was because the dollar continued to fall and the fast money came into the commodity stocks. When we come back, we’ll get a few. There’s one guy especially. I like his comments on Kevin Warsh. How it really doesn’t change the dynamic that much. And welcome back here to the second quarter of today’s Best Stocks Now show. There were also a lot of conspiracy theories around the sell-off in silver. I have had people emailing me saying, you know, it’s going to keep going. There’s no stopping silver. And I’m thinking, you know what? Oh, that’s what you think. It’ll come to an end at some point, and it’ll be quite dramatic. One theory has it that… Was it J.P. Morgan was supposed to have a big short position that they were getting clobbered in? Or somebody out there, or many people out there had these big short positions, and Trump named Warsh to…
SPEAKER 06 :
I can’t see that. And what you had, I mean, what you really had in silver was you had a bunch of futures contracts that you could either, in a futures contract, you can either get paid in the actual, hey, future contracts comes due, give me the silver, or let me run that contract another month, right? And now you don’t need the silver. Well, in this case… You had a bunch of contracts that folks wanted paid in actual bullion. Well, then now you’ve got to move metal around the world. Yeah, it’s heavy, too. Silver’s heavy. It definitely is.
SPEAKER 07 :
You know, like $1,000 worth of silver weighs a heck of a lot more than $1,000 worth of gold does.
SPEAKER 06 :
So it was more of a mismatch. I mean, to me, and that’s why you saw it being more of a hyperbolic move than gold, was the fact that you had this supply and demand mismatch. Not only did you not, say, have the silver bars that you needed, but you also needed them in the right place on the globe where the contract is getting settled.
SPEAKER 07 :
Well, the best comments came from a guy at Saxo Bank. Now, I’m not sure where, look that up, S-A-X-O Bank, where are they headquartered? But I love the guy’s name, Ole Hanson. That sounds like he’s from the old country. He sounds like he knows about gold. Yes, and everybody in Minnesota knows somebody named Ole. He’s an old alchemist, it sounds like. Yes, and being a Gunderson, when I go to Minnesota, I hear all the Ole jokes, right? Extreme, he says, as usual, social media quickly filled with conspiracy theories suggesting the move was orchestrated to bail out underwater shorts. You don’t want to be an underwater short, I know that. These narratives are best ignored, he says. I wish I had Old’s accent. The more straightforward explanation is that Silver’s multi-week rally, while supported by strong Chinese demand, had become increasingly driven by FOMO. Fear of missing out and speculative excess. I never saw such speculative excess, not in recent years really, as I saw in silver. When gold and silver turn into hot topics at dinner tables and in workplaces, it’s often a sign that a particular phase of the rally is nearing exhaustion. And I actually had a Zoom call with some guys I’m doing some business with last week, and they said, how’s the market, Bill? I said, oh, this was early last week. I said, it’s doing good, but there’s going to be a big sell-off in gold and silver. Get ready, brace yourself for that, especially silver. And little did I know, it would be just like three days later. So anyways, that’s Ole Hanson’s. from the old country, his advice and how to take that big Friday sell-off. Okay, oil prices are also dropping today. They had a big run. They had an Iran premium built into them. Nothing, as far as I know, happened in Iran over the weekend. You know, that’s kind of Trump’s strategy is move the fleet in, the armada, park them offshore.
SPEAKER 06 :
Where you got options.
SPEAKER 07 :
Point the guns at them and see if they’re ready to negotiate. That seems to be his way of doing business. And as a result, I think things did settle down. But, you know, I don’t know how many thousands have been killed in this latest uprising. I said all along that oil is not a good supply-demand equation right now. It’s not a good buy from a supply point of view. I just think the disruption in the oil service stocks are a better way to play it. But everything’s kind of down here today in the oil patch because of the perceived calmness over the weekend in Iran. But that could heat up at any point in time. Crypto route. Okay, there’s the one that concerns me the most. Because gold and silver, they have their intrinsic value, and oil has its intrinsic value. I still cannot have anybody explain to me that makes any sense where the intrinsic value comes from. And, you know, I’ve always been kind of a critic of this Tom Lee at Fundstrat. He gets a lot of publicity. Maybe second only to Cathie Wood. And he had built up a huge battle chest in Ether. And he is very much a crypto bull. And man, I’ll tell you what, he right now has got huge unrealized losses. in his company that he started, BitMind, B-M-N-R. And I do want to say that there is an inverse version of BitMind, B-M-N-R. It’s a stock that he started. Fundstrat’s Tom Lee. And, oh, man, it’s down another 5.8% today. I’m going to look into that inverse one. But keep in mind, he’s holding some huge unrealized losses in Ether, which is even worse than Bitcoin, in my opinion. So something to think about.
SPEAKER 06 :
Isn’t it interesting that Bitcoin is down below 80? It’s at 78,000 a day. But think about how it didn’t participate at all with gold and silver on the way up. But… participated i sure did be sure appreciated on the way down over this weekend so yeah you know it’s kind of uh it’s getting the it’s getting the worst end of it doesn’t hold up in good markets or bad uh that’s that’s troublesome that’s very troublesome i think there’s a big uh crisis of confidence well and that’s what yeah that’s what i was getting to yeah you’re i mean in terms of like you said i mean it’s just uh i mean it’s it’s it’s a you know that that That market, right, crypto market is built. I mean, the only thing that’s built on, right, is confidence, right? And greed. Yeah.
SPEAKER 07 :
I think it responds much more to greed than it does to fear. And that’s not a good thing because fear always enters the market at some point in time. Okay, well, I’m going to just remind everybody we’re coming up. This is February 2nd today. In one, two, three weeks, I’ll be in Phoenix at 6.30 p.m. at Sun City. I’ve got to get that address. I’ll have that today. I’m going to do a little 60-second spot here after the show that we can play up until that day, so I don’t have to do live mentions of this. But I will be 6.30 p.m. teaching a workshop in Sun City, Arizona. And the very next day, flying to Houston, where we’ll be on Wednesday. And Wednesday at 7 p.m., I’ll be teaching a workshop at the Westin Galleria. And those appointments are filling up Wednesday and Thursday, one-hour appointments. This may be our only trip to Houston this year. If you want a rare opportunity to meet with Barry and myself at the Westin Galleria in Houston, February 25th, 26th, during the day, give Edie a call at 855-611-BEST, 855-611-BEST, or go to our website at gundersoncapital.com. We’ll be right back.
SPEAKER 03 :
Hit us in a bad place, and I wonder what it’s good for. I’ve been in a right place.
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 04 :
And welcome back here to the second half of today’s Best Stocks Now show.
SPEAKER 07 :
Well, you know, on Friday the market was all about warsh, warsh, warsh. Gold, gold, gold, silver, silver, silver. But at the end of the day, it’s earnings, earnings, earnings. If you can learn that one lesson in the market, that’s the most important lesson is earnings, earnings, earnings. And for that reason, on this Monday, the day after a crazy weekend, but we had a lot of earnings reports last week, and we’re going to get a lot more this week. I have a very important update for you on where the overall picture looks like. at the current time. Before that though, let’s just take a look and preview real quickly. We already had Disney. We know that Disney, if you’ve listened to my show, you know that Disney is very much one of the soggiest… Now, I love going to Disneyland. I love it, you know, and I love everything about… I grew up, you know, just 60 miles south of Anaheim. You know how many times I’ve been to Disneyland? Of course, this Disney world out here, I’ve had, you know, between my wife and I, we have six kids, we have 12 grand. So we’ve had a little exposure to Disney in our life, and we’ve spent some money. But it’s a lousy stock. Okay, we’ll go through their earnings. Now, Palantir is going to report tonight. In my book, it is the most important software stock out there. And if anybody’s going to lift the software sector up by its bootstraps, it would be Palantir.
SPEAKER 06 :
Well said. After hours, right? For sure. If there’s any, you know, the NVIDIA of software at this point in my book.
SPEAKER 07 :
And if they have a big disappointment, that’s not going to bode well for the software sector. Tomorrow we get Pfizer, another very, very soggy stock. But then AMD… Should provide some fireworks tomorrow. And, you know, AMD is always fairly unpredictable. Chipotle is going to report tomorrow. And then on Wednesday, very important tech stock. One of the most important tech stocks in the world today, Google. otherwise known as Alphabet. Absolutely critical to see how they report. And, of course, they’ve had some big reports. Lilly will report on Thursday. Now, they’ve got a little bit of a hiccup going on because Novo Nordisk beat them to the punch with the pill. And I’m sure a lot of people have said, hey, I’m not going to give myself a shot in the stomach with that Zepbound stuff. I’m going to switch over to Novo and take the pill. We’ll go, Vee. Well, it’s just a matter of time before Lilly. But being first to market definitely helped Novo.
SPEAKER 06 :
And the cost. The cost is something that for some folks is going to make a big difference. And the convenience, yeah. Forget the shot, yeah. It’s just like…
SPEAKER 07 :
Okay, Amazon will report on Thursday. You know, I don’t know about Amazon these days. They seem to be kind of, well, I know one guy that works for Amazon. He says they’re screwed up. They’re trying to figure out how to make AI in the routes every day for the delivery guys.
SPEAKER 06 :
And they’ll work it to the bone, too.
SPEAKER 07 :
Yeah, his feedback to me is they are really screwed up these days. Okay, now. The current earnings season, we’re one-third of the way done. And this is where I take my cue. And if you remember, Friday was a big sell-off day in the markets. And late that afternoon, I took a look at the overall how this quarter is going because we had a lot of important companies like Microsoft and Meta. and AT&T that reported last week, Boeing reported last week, a lot of them reported last week, and it was interesting to see that the 8.3% gain, which was expected a week ago Friday, had gone up actually to 11.9%. I was a little bit low. It’s now 11.9%. If you go back to September 30th of last year, The expectations were 7.1 growth in earnings. We’re talking about quarter four, 2025, which is now being reported. We’re seeing the last quarter of last year being reported now. 33% of the S&P 5 companies have reported actual results. 75% have beat estimates. 65% of beat sales estimates, and now we’re up to 11.9%. The all-time record quarter for the S&P 500 was the third quarter of last year. That’s $70.96. We never had a quarter with that much. Right now we’re looking at $7.30. But I think it keeps rising. The trajectory is higher. We could have a record haul of earnings. And I saw Trump taking a victory lap over the weekend about, I thought the tariffs weren’t supposed to work. the market’s hitting new highs earnings are hitting new highs the he’s right i mean look whether you like the guy or not it has not impacted earnings at all now a lot of companies have had to punt they’ve had to change the way they do things it’s hurt some industries but overall Look, last September we were looking for 7.1% growth in earnings this quarter, and now we’re up to 11.9%. And, wait a minute, the biggest number for me, and I put a chart of this in the newsletter over the weekend, the profit margin, Barry, for the S&P 500 is, 13.2%. That’s up from 11.2% two years ago. So they have fatter profit margins than ever before. This will be the fattest profit margin. Last quarter was 13.1 and now we’re estimated at 13.2. The forward PE sits at 22.2. A little over 23 has been the top recently. And when this quarter is in the books, we’re looking for 13.2% growth in 2025 versus 2024. And in 2026, we’re looking for another 11.3% next year. Versus this year. So anyways, the earnings picture. And I think that’s why the market is recovering here today. Because of earnings. Earnings, earnings, earnings. Okay, Disney has reported. Big deal. Disney is down 5.5% today. You know, who’s been saying now forever… you may like the company you may like going there the stock has returned nothing over the last decade and I know you bought some shares for your grandkids and I remember they used to give you the stock certificates which had Mickey Mouse on them and they were pretty little stock certificates but dang you know what stock certificates are supposed to go up in value not stay flat for 10 years. Okay, let’s just get that number up here. I want to give you the official number according to the Best Stocks Now app. The performance of Disney, well, 2.48% over the last decade per year. 2.48. Can I get that in a passbook account?
SPEAKER 06 :
And how many people have it in their account? Everybody.
SPEAKER 07 :
Except me. Me and you, we don’t own it. But, you know, it’s widely held. The teachers, pension funds, pension fund GM, individual investors, all the wire house firms. Loved this stock for the most part. It’s averaged 2.4% while the S&P has averaged 25.8%. So here you had this magnificent 10 years in the S&P 500 and Disney has completely missed out and been left out. Now wait, over the last five years, you’ve lost 7% per year. You’ve lost 7% per year on average. That adds up over five years. Now, over the last 12 months, Disney is up 1%. Well, the market’s up 14.9%. It’s done terrible over the last decade. It’s done terrible over the last five years. It’s done horrible after the last three years. I think Iger, something needs to give. You know, an activist investor. There was one that tried. Starboard or one of those came in there and tried to shake things up. But, you know, they’re pretty set in their ways there at Disney. Disney stock in the Gunderson Best Stocks Now app methodology comes in at number 3,382. Out of 5,194 stocks. Maybe we should base Iger’s pay. Isn’t that how we reward? How much is some of these baseball? How much is Otani making on how many home runs he’s hit and RBIs he’s hit? He deserves what he’s making. How much is Iger making? It’s certainly not based on performance, that’s for sure. We’ll be right back.
SPEAKER 04 :
What would a golden age? On a winter’s day.
SPEAKER 07 :
And welcome back here to the final set. Well, we’re having a lot of fun today. At least I am. I don’t know if the listeners are, but I’m having fun. There’s a lot of interesting stuff that happens in the market on a daily basis. Never a dull moment, and it was certainly not dull on Friday. Now, we have exposure to gold. We got hit on Friday. We weren’t down 25% or 12% or 13%, but we own two gold stocks. Let’s see, two? Yes, two gold stocks, just two, and that’s our whole firm. And then we do have the gold ETF, the gold ETF, a couple of them. And of course that’s helped on the way up. It’s given us outsized returns on the way up. And then we kind of had that one day hit. A little helium, a little air taken out of the tires on Friday. Barry, I don’t know about you, but in my gut, it’s hard to put a valuation on gold. I still am fairly bullish. on gold.
SPEAKER 06 :
Yeah, I mean, you still got central bank demand, which has really driven the gold. And that’s where I think the difference between the gold move and the silver move are really two different things. The gold move… It’s been a sustainable, you know, kind of move up, and it’s been driven by demand from central banks. And also, you know, a move, kind of a bit of a dollarization hedge, right, away from the dollar to, say, holding gold. If you’re Russia, you don’t have the luxury of holding dollars anymore. You’re holding gold and other currencies. So, yeah, it’s a move. And we talked about the – it was funny. We talked about it midweek last week where we were getting to this point where the safety kind of hedge factor of gold, price-wise, we had kind of gotten into it. At some point, that price becomes speculation. And so we’ve seen – okay. the the speculative portion right some of that has you know errors come out as you said of of gold but long term i think we’ve you know you still got uh you think you can make a bullish case for gold and yes i uh i met a kid uh we we got in a a dinner out to dinner on friday before the ice storm hit on uh on saturday i said if we’re gonna go out it’s it’s tonight
SPEAKER 07 :
And we went downtown to one of the nice places down there. Live music. Oh, it was fantastic. And the kid waiting, or the kid I guess that was the valet parking guy, his name was Pavlov. Young kid. I said, he’s going to the college at Charleston. I said, oh, really? Where are you from? He definitely had an accent. He’s from Russia. I said, how long have you been here? Oh, he says, about a year. I said, man, if you were there, I don’t know how he got out. He says students get some kind of bypass. I said, you’d be in Ukraine in a trench in zero-degree weather fighting the Ukrainians. Instead, you’re here in America at the College of Charleston, which has a good basketball team, by the way, but that’s besides the point.
SPEAKER 06 :
Yeah.
SPEAKER 07 :
And I said, you should be really fortunate. He’s from St. Petersburg, which obviously St. Petersburg was changed to Leningrad. St. Peter was named after Peter the Apostle, which there was a big Christian, there still is, community there. Lenin didn’t want any religion. That’s kind of a thing with communism. And then it became Stalingrad after Lenin was done. And now they’ve turned it back to St. Petersburg. And that’s where he’s from. So I just thought, you know, this kid, he should count his blessings, man. I said, you want to go back? Oh, no, no, no, no. He doesn’t want to go back to Russia. So anyways, maybe he can go to New York if he gets homesick. He can go to New York City under Mamdami, I guess. All right, so the earnings week ahead, we talked about that. We talked about Disney. What a dismal. And I’m going to propose, you know, if I was an activist going in there, I would say, Iger, we’re going to base your compensation on stock performance, just like you would Ohtani. Just like you would anybody. It’s based on performance. Why are you making $50 million a year and the stockholders are over here for 10 years starving? Not very good. Oracle plans massive $50 billion debt and equity raise. Now, this is something new in tech land. And, you know, the stock is actually up today, last time I looked, 2%. It just seems that Oracle is willing to spend whatever it takes to become a big player in AI. Is that what they’re up to, this big spend and everything? Even floating bonds and debt, what the heck is going on there?
SPEAKER 06 :
Yeah, I mean, what they’ve done is they’ve, I mean, essentially they’ve somewhat impeded their capital structure, right? I mean, they’ve taken on a bunch of debt in order to fund, you know, the orders that they’ve kind of taken in the AI space. So the trick is they’ve got to execute. They’ve got to execute those orders. Right. They’ve got to actually do it. That revenue actually has to be recognized. In doing so, they’ve taken a chance, and so that’s where one of the better-priced bonds I’ve seen recently is actually Oracle, meaning the best yielding. You can get a little over five, but it’s still tasty. But at the same time, do you want to be on that side of it where you’re in this story at all times? Press story just keeps going about, you know, Oracle and are they going to, you know, are they going to be able to do this or not? So it would be an interesting situation how it unfolded.
SPEAKER 07 :
Yeah, and don’t forget, Oracle is a software stock in that software sector, and it’s been part of the software decline. Okay, we’ll close with this story. Elon Musk, it almost seems like he wants to replace God at some point. He wants to launch a million satellites and create his own constellation of data centers in outer space. Yes, that’s true. SpaceX has sought U.S. approval for a constellation of a million satellites that could function as orbital data centers without the environmental impact typically associated with ground-based data centers. Aren’t they heavy? I mean, isn’t a data center heavy?
SPEAKER 06 :
I mean, I guess it would have a… Like a solar panel attached to it. It would be closer to the sun maybe.
SPEAKER 07 :
I don’t know. I don’t know, but you’ve got to have all of them video chips and all the servers. Anyways, he’s applied to the U.S. government. Never leave him out for thinking ahead and dreaming big. Okay, well, we are out of time. We’re going to have some big earnings tomorrow. Disney was the big one today. It’s a flop as usual. to set up an appointment with us, to talk about your portfolio, 855-611-BEST, to get four weeks of the newsletter. Oh, it’s so important during this earnings season. It calmed my nerves on Saturday when I saw the earnings reports after Friday’s sell-off. Anyways, go to the website for free weeks at GundersenCapital.com. Have a great day, everybody.
SPEAKER 01 :
This show is not a solicitation to buy or sell any securities. Bill Gunderson or clients of Gunderson Capital Management may have long or short positions in stocks mentioned during the show. Past performance is not indicative of future performance. Gunderson Capital Management is a fee-based registered investment advisory firm. All accounts are held at Charles Schwab. Schwab is a member of SIPC and FINRA.
In this episode, Bill Gunderson takes us through a tumultuous period in the financial markets. Friday’s intense volatility in gold and silver left investors reeling, but Monday’s market has started with a hopeful bounce. Wall Street’s focus turns, as it always does, to the fundamentals: earnings, earnings, earnings. Gunderson, accompanied by Barry Kite, navigates through the impacts of Kevin Warsh’s potential appointment to the Federal Reserve and other external stimuli, bringing an eye-opening perspective on what really drives market stability.
