Stansberry Investor Hour

We're excited to share today's guest's take on the markets – especially following his April 2020 appearance on the show when the market was clawing its way back up from its March 23 bottom.

This week, Dan welcomes back Mitchel Krause to Stansberry Investor Hour. Mitchel is the managing principal, chief commercial officer, and founder of Other Side Asset Management, an investment firm focused on capital preservation, risk management, and transparency. A 20-plus-year veteran of the financial services industry, he has served as first vice president at Stifel and Ryan Beck & Co.

Mitchel was last on the show in April 2020... not long before Federal Reserve Chair Jerome Powell admitted the central bank had "crossed a lot of red lines" with its aggressive emergency measures during the pandemic. Today, Mitchel says, "Every time I look, the data is different and it looks worse"... from bubbles popping in crypto, housing, equities, and U.S. Treasurys to the negative wealth effects of consumer spending tanking and inventories rising. And he's wondering just what the Fed might do next...

You're seeing it in all the data, and yet Wall Street's estimates haven't come down nearly enough for Q4 or Q1 of next year. So this will continue for probably the next three-plus quarters. [...]

We're probably closer to still a top than watching this all bottom out. The question becomes what red lines are crossed in order to try to possibly save this. That's the risk every central banker essentially tries to plan something... We'll pivot if we need to pivot from our positions.

Mitchel also believes we're currently in a "disinflationary investing regime." He says you should analyze "how the markets are looking at things" rather than relying on backward-looking metrics like the Fed-favorite Consumer Price Index. And instead of readily believing the headlines, he urges listeners to demand more evidence, more data, and do their own research.

Furthermore, Mitchel says you should "prepare yourself for another two or three quarters of what you've just seen" and make capital preservation your No. 1 goal right now. He also warns against falling into the trap of trying to time the market bottom. Lastly, Dan picks Mitchel's brain about positioning, especially since he "has never talked to anyone holding 70%-plus cash."

Dan and Corey kick off the show by discussing car-rental company Hertz selling one-third of its electric-vehicle ("EV") fleet and planning to reinvest in gas-powered cars. They talk about the reasons for this move, why EVs might not be a popular choice as rentals, signs that oil and gas companies are still thriving, and how the green-energy transition could lead to higher inflation.

Next, welcome Stansberry Research analyst Greg Diamond joins the conversation and analyzes the current volatility in the markets. He explains that investors and the financial media believe the Federal Reserve has beaten inflation and is going to start cutting rates soon. But as Greg notes, the opposite is most likely to happen. He also goes into detail on his study of cycles.

Then, Greg predicts important inflection points for 2024, describes how legendary trader W.D. Gann influenced his trading strategy, and explores the potential ramifications of the Fed ending its bank lending program in March. He also details why he'll be trading sectors for the first half of the year rather than individual stocks.

Lastly, Greg talks about correlations between the S&P 500 and specific exchange-traded funds. He assesses what it means for the markets when divergences happen and how extreme volatility leads to great buying opportunities. As Greg sums things up, "I think it's going to be a rough ride for bulls and bears."

On this week's episode, Dan speaks with Bethany McLean, author of the "The Smartest Guys in the Room" the story of the scandalous and unexpected fall of Enron.

Before their epic collapse, Bethany was one of the first in the financial media investigating the red flags around the company. In early 2001, she wrote an article in Fortune Magazine, titled "Is Enron Overpriced?"

Bethany even lets Dan in on an industry that could be seeing bankruptcies in the coming years.

The two also touch on the Coronavirus, and the reason there's so much uncertainty. Bethany admits "there's a lot that we just don't know" but ends the episode on a very positive tone. Enjoy.

On this week's Stansberry Investor Hour, Dan and Corey are joined by Joel Litman, the founder of our corporate affiliate Altimetry. But first, Dan and Corey kick off the podcast by discussing the latest Federal Reserve meeting, a recent study about what happens to stock price when artificial intelligence ("AI") gives answers at earnings calls instead of humans, and the emergence of a robot CEO for a rum company. (00:00)

Next, Joel joins the conversation and gives the reasons for his growing bearish sentiment. He points out some significant red flags that have caught his and his fellow analysts' attention, including the historical pattern of a credit crisis preceding every major bear market. Joel explains that the current sentiment and valuation trends are heading in the wrong direction. (16:42)

Joel then moves on to the impact of high interest rates on the market. He explains that he and the folks at Altimetry employ "Uniform Accounting" principles, meaning they do not use the same price-to-earnings multiples as Bloomberg or CNBC. Instead, they perform their own calculations. Joel argues that, to control inflation, interest rates need to be maintained at a level higher than what Fed Chair Jerome Powell seems to favor. (20:56)

Finally, Joel discusses U.S. stocks being overallocated in investors' portfolios today and why this serves as a concerning indicator of market conditions. Plus, looking globally, he details why he finds Chinese and Russian stocks unattractive for investment. (37:36)

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On this week's Stansberry Investor Hour, Dan and Corey are joined by two of their Stansberry Research colleagues, Matt McCall and Brett Eversole. But first, Dan and Corey kick off the podcast by discussing three famous investors who all made headlines recently for giving negative future market outlooks.

Brett and Matt join the conversation by talking about why they're bullish right now. Matt notes that the reason 2022 was so brutal for investors was because of the Federal Reserve rapidly raising interest rates. While one more small rate hike before the year's end is possible, Matt still thinks the rate cycle is nearly over. This would, in turn, be good for equities and move the markets higher.

Then, Brett shares some of his AI-industry favorites... and notes that the market as a whole has the potential to massively increase productivity, leading to increased margins. Specifically, Brett believes there's a structural change happening in the companies that make up the stock market.

Finally, Brett and Matt talk briefly about housing supply and homebuilders before launching into the energy sector. Brett emphasizes that while there's a push for green energy, we're going to need fossil fuels for a very long time. Plus, Matt highlights the problem of many renewable-energy projects being completely built but unable to get onto the energy grid because the grid is so old.

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