Transcription
As I have repeatedly said, there are 18 important trading partners. Uh, we are working toward deals on those, and it is highly likely that those countries that are negotiating, or trading blocks—in the case of the EU—who are negotiating in good faith, we will roll the date forward to continue good faith negotiations. If someone is not negotiating, then we will not.
Felix here, and deep within Secretary Besson's testimony from yesterday lies the path to the bigliest stock market rally we've seen since 2020. There is a path here, a plan here to cut interest rates by over a percentage point. And last time that happened, well, let me show you what happened to Tesla. Last time rates went down by a percentage point, Tesla went up something like 1,600% or 700%. 1,600% plus. I'm not measuring that exactly. And are we therefore likely to see a rally like that again? Potentially something on that scale.
Now, you might be thinking, those sort of rallies only happen during…they're never going to come back because we can't really pick the stocks that go up that much. Well, how about this one here? So, every week I share with my mentees the winners that we're about to buy. I share them before I buy them. If I go back almost a month here and I click on performance and then the monthly performance of these, you see that we've had a lot of winners here. 120%, 100%, 60%, 40%, and so on. Like, you know, you get the idea. Big winners. And you might be thinking, well, but there would be losses, right? Well, let's scroll all the way to the bottom, and you see the losses. Biggest loss 16%, down 98, 74, 321. If you add all these together, you get to about a 40% loss. So, our sixth largest win would pay for all the losses, and everything else is just profits.
And maybe you're thinking, Felix, you got lucky in the week of the 19th of May. Uh, entirely possible, of course. Well, what about our picks on the 1st of June? Um, not quite a month. Let's look at the week's performance. 50% up, 50% up, 30% up, 30% up. Not bad, right? If you look at the biggest losers here, yeah, there are a couple, right? I don't know what that adds up to. Uh, 50, 60% or so. So again, our top winner—certainly our two top winners—will pay for all the losses, and everything else will therefore be pure gains. So it is possible to pick winners like Tesla just before a massive rate cut and have these couple of hundred percent returns.
How is it possible? Wall Street's been doing this for like centuries. And there are three very simple rules to pick these breakouts before they break out. They come with a little sort of warning flag: We're about to break out. And that's the moment where we set up our trades. You want to learn how we actually do that? I'll give you all that information, the full rule book, the full set of information if you join me on Saturday at 10:00 a.m. Eastern time, New York time, at felix.org/webinar. We'll spend about an hour and a half on a lovely educational session where I will teach you exactly how we do this so you too can be a better investor, pick breakout winners, and also get rid of those miserable losers because, you know, we don't have big losers. We eliminate those.
Now let's go a little bit deeper into this story here. Um, I put some reshots on the screen for you because some people learn better when they read. Uh, essentially Besson talked trade deals and then Fed, and the Fed story to me is more important, but briefly let's cover the trade deal stuff. So he's saying that trade deals remain path-dependent. Uh, there is a strong expectation we are going to get some big trade deals by the end of the year. Um, some are going to come within weeks—apparently next week there'll be deals and deals and deals, something on that line. Uh, who with? Likely? Well, India seems likely. I think Japan might be on the cards, at least preliminarily, and then the China thing seems to be sort of in agreement to possibly make an agreement, but in the meantime, we are going to live and let live, which means postponements, and that's also good for the market because kicking the can down the road is definitely—it shows that there isn't that sort of hard line, that desire to like make the world collapse. And so essentially he indicated that there is a little bit more—there's a little bit more flexibility there over on the Trump side. Uh, the 90-day tariff pause isn't going to be a hard line as long as people are engaging in good faith negotiations. That was the quote. Uh, they will likely postpone the actual tariffs here.
Now, how does that all tie into the rate cut stuff? Well, on the one hand, there is a little bit of uncertainty here, right? So, we don't quite know what's going to happen, but of course, there's all this concern around tariffs being inflationary. Well, so far, we haven't seen any of that. Now, the current Fed president, Jerome—the almighty money printer—Powell, is very unlikely to cut rates anytime soon because that man is data-dependent or transitory, depending on what meds he took that morning or whether his sherry was, you know, sweet or not. Um, but what Trump is doing is actually very, very clever. He's changing the narrative. And to really understand that, you need to understand that the market is always forward-looking. The market doesn't really care what interest rates are now. The market cares what the expectations of interest rates will be in six or in 12 months because the market looks forward. It's much like a stock. We don't care what happened in the past. We care what's likely to happen in the future. So by Trump appointing sort of a shadow Fed president until Jerome Powell gets booted out—who, by the way, was a Trump appointee—so it tells you that no matter who becomes Trump's new Fed chair is likely going to be his friend for a while and then become independent and do whatever the heck he wants because, yeah, Jerome Powell is a card-carrying Republican. People often forget that. But he has—um—developed a desire to do his own thing. He enjoyed printing the most money anybody has ever printed in the history of the of the world, and now he seems to be—well—doesn't want to cut. Uh, which doesn't make a lot of sense, but Trump is basically saying that the current high interest rates are not necessary. Uh, we need a large 1% cut. Uh, that's essentially what he's saying: unleash prosperity, lower the cost of the US deficit because they're going to have to refinance out of these high rates. So if Besson steps in here and becomes the next Fed chair and goes out there and says, "Yes, I think rates are a percentage point too high," the market will immediately factor that in, and you will immediately get the get the rate cut rally before the rate cut.
So we might get into this Goldilocks scenario where tariffs are not as bad as we thought. The AI party is still very much happening. We've got these big tax cuts in the US for—yes—the big corporations, not for, of course, the common man because when do politicians care about those—and we get the promise of a 1% rate cut, the market is going to go absolutely bananas. Now I've looked back at what happened in 2020, and I want to show you a couple of the stocks that really, really went—went nuts then. Tesla was one of those. Why would Tesla rally on a on a thing like that? Well, Tesla sells cars, right? Now, do you buy your car? If you're American, the answer is most likely no. What do you do instead? You finance your car. So your consideration is not really whether the car costs, you know, $30,000 or $50,000 or whatever the thing costs. You're thinking, does it cost me $700 a month or does it cost me $600 a month? And that number is entirely dependent on the interest rate. So people are going to buy a lot more taxis—sorry, cars. They'll all be taxis soon—if interest rates drop lower. Now I think the real party for Tesla isn't actually car sales, but it would help if they improved again. I think the real party for Tesla is robo taxis and robots. But even then, all the investment that's going to have to flow into that will be cheaper. There might be companies out there who'll say, "I'm gonna buy 10 robo taxis, 100 robo taxis, a thousand robo taxis." Uber might want to buy 100,000 robo taxis and operate them themselves as a fleet, and they're going to finance that purchase. So the lower interest rates, the more investment there'll be, the more purchasing there'll be. So a stock like Tesla is primed for that setup, and I think the market is catching on to it because if you look at what institutions were doing yesterday and you can look at that in tradevision.io, IO. I'll put a link down below for a for a free trial there. And you can click on on the right side here on just dark pools. And then at the top you select yesterday's days or today's date, and you can see live all of the big institutional trades that are happening in these private exchanges. We put light into the dark pools essentially, and you can see the market was very, very bullish yesterday. The flow was very, very bullish across all stocks. Right? And then you could, of course, look at individual stocks if you wanted to, which is what I tend to do before I I set up trades. Tesla yesterday was very, very bullish. $56 million in call options bought there. Some very, very, very big buyers uh out there because you need a lot of money to be able to do these kind of buyers, right? So that's one thing we're looking at.
Um, other beneficiaries to this will be the whole kind of growth space. So, as a reason, we bought ARCW about two weeks ago, uh, because that's sort of a a an ETF that charges us absurd fees, but it went up 340% on the last time we had these kind of cuts. Um, ARK is, I think, something we added last week, uh, which again did very, very well on the last rate cuts. So it's those kind of like growth stocks we want to just sort of hoover up on that. And of course, that isn't financial advice; that's just me saying it. Um, are there other stocks that we could look at? Yeah, anything that sort of—SoFi wasn't around back then, but that would have benefited quite significantly. And if you look at this chart here, what I've drawn on the chart here, what do you see? You see this purple line? That purple line is the US interest rates. So from March 2022, they started going up. What happened to good old fintech stocks at the same time? They got caneed. They got killed, right? And that's precisely the opposite that happens when interest rates come down again. So we are literally entering here—I went down 81%—a massive potential rally simply because interest rates go down. What about something like Nvidia? Same story really. So in—if we go back a little bit here—uh, this was the interest rate cut here in purple. And from the bottom of that rally there in March 2020, we went up 2,800%. I'm not saying Nvidia is going to go up 2,800%. It's a it's a $3 trillion stock. It's a little difficult to do that—to find that kind of money. But there will be other stocks in the semiconductor sector that have a lot more potential. And if you want to learn that, I put out a video just a couple of days ago on other key semiconductor stocks that I think are going to benefit tremendously here. Uh, the whole drone space is going to benefit. Again, I put a video out on that a few days ago. Um, all of these industries that require a lot of investments, they're going to do very well. And at the same time, big investments just got big tax cuts from the same Trump administration. So it is a double boom boost that they're going to launch, which inevitably is going to end in disaster at some point. But our job is one thing and one thing only: make money from it in a responsible way by knowing which stocks to buy right now, which stocks to buy next week and the week after, and how long to hold them and exactly where to sell them, and how to automate the whole thing. So that all of that money management, all of that selection, all that research becomes a job that you can do in a couple of hours on a Sunday. That's what I do. I'm going to teach you that on Sunday if you come and join me at phoenix.org/webinar. Um, bring about an hour and a half of your time. Bring a notebook, a big smile, and we're going to do some amazing stuff. I'm going to unearth to you how we find these breakouts before they actually happen because it's just so fun to make money. It is just beautiful. I mean, you know, being up 100% on stocks regularly or 30% or 50% all the time, uh, it just, yeah, it's the funnest thing I've ever done, honestly. Managing my money is like my biggest hobby and and my most profitable hobby for sure. So come and join me on Saturday. I think good things are coming. Um, we might see a little bit of a sell-off before. Not everybody's going to realize this, but I believe more strongly than ever that the second half of this year is going to be fun, fun. So get ready for it. Prepare for it. Now's the time to learn. That will give you some chance to practice and prepare and make sure you don't miss the setups that are about to hit us in the face and are going to make a lot of people money because remember those rate cuts in 2020? A lot of people retired of them. Literally retired of them. They bought Tesla. They bought Nvidia. Those stocks that went up 1,600%, 2,800%, and they literally haven't worked since. And that's my goal for you. So come join me Saturday. Links down below. I wish you all the best. Felix here.
If you're wondering what's going to happen with Palantir, SoFi, Tesla, and Nvidia in the coming days and what's been happening with them on the sort of secret insider level the last few days, this is the video for you. And if you're wondering why should you listen to this strange ex-banker here in his colorful little studio, well, why don't I show you how decent we are at picking stocks?