Transcription
Hello everybody. Happy Sunday. Who's ready for a banger? This will be a big one. We're going to touch on a whole bunch of different stuff, different price projections, different bets, who's going to win over the long term. We'll look at some AI stocks. We'll look at some rotation models. We'll look at some profit taking models. We'll look at layers, and we'll look at leaps, options, what to buy, what not to buy, and when to buy.
Um, Broadcom, Nvidia, Micro Strategy again, Tesla, lots of questions on that. Solana's been on fire. Everybody's getting nervous. So, let's jump into it. Big thank you to the mods in chat, showd everybody else. Bman, and who else do I have there? Sir Winston, good to see you all. Let's go. And this is this is kind of long, but I'm going to go really fast because there's a lot of stuff to cover. We're also going to talk about, uh, the real, the impact of AI on real estate. Interesting question, and all the questions come from Patreon. Thank you so much.
First question is from the cloud king. Hi James. I'm a 38-year-old Bitcoin fish and I've been aggressively stacking Bitcoin since 2021 along with little Solana. I'm selling an investment property in Los Gatos, California. By the way, that's an expensive neighborhood, which I will have a few hundred grand to invest. I know you would insist on adding as much Tesla as possible, and I plan on adding some, but I've always been seeing Bitcoin as the fastest horse for the next decade. You did mention Jordi Visser this week, and I have been watching him on the Palm channel over the last few months. Your views are generally aligned with his. I'm very aligned with him with the exception maybe of price projections. Uh, Jordy believes Bitcoin is the apex AI play, as will be the store of value of choice for the AI trillionaires that will be forged in the coming years. You obviously see Tesla as the best option to benefit from the AI boom, and I wanted you to contemplate his position and offer your thoughts. That'd be great. In fact, that'd be a great debate with Jordy and I, and uh, hopefully we can get something going soon.
Other question related to that too is this one. Greetings from Scotland where the sun rarely shines. Haha, this is my first time posting a question here. Hey guys, thank you. Um, I have 124 Micro Strategy shares and one Bitcoin in cold storage. Good. I'm thinking of switching all of my Micro Strategy to Tesla and holding it for around 5 years and not trading it. Uh, interesting. And then cryptocockney is in the same situation. A lot of Brits followed me into Micro Strategy years ago, and now they're doing quite well. So, that's hilarious. Uh, so I have a good toe in each pond. The question is, which one will do better? And that's the big question we're going to have today is AI versus Bitcoin, which is the apex predator. And you know, from me, I, I because they're kind of like my two biggest exposures are AI and crypto, I need to know where things are going. So, I analyzed this in excruciating detail since 2017, okay? Because I put my money where my mouth is. First of all, I'm going to go back to this one again. I shared this way back in 14 months ago, 4th of July, 2024, and you've heard me say this probably once or twice before. It was on the 4th of July financial independence video, and I said Tesla is going to smoke Bitcoin out to 2032. The eye from the popcorn gallery was something to behold. Everybody thought, "Gee, you're crazy." Well, let's fast forward now to today. In that time frame over the last 14 months, so far, I've been very right. Bitcoin is up 72%, which is fantastic. Tesla's up 125%, which is more fantastic, nearly double the return. Okay, that's why I think it's bigger. And the other reason why I think it's bigger is because the TAM, the total addressable market for AI is far larger than that of money. Okay, far larger. We've seen already so far that the GDP of countries like France and Germany and Italy, etc., has been smoked by one company called Nvidia. Their market cap is bigger than the GDP of entire nations. Bonkers to think about. And the AI total addressable market is far larger than money. I did it for Bitcoin and Tesla in a chart here. I looked at the total addressable market for ride-hailing, for automotive EV transition, for, um, machine learning and AI, uh, semiconductors, uh, global energy storage, renewable green transition, data center storage, construction infrastructure, humanoid robots, and I compared them to the size of wealth and asset management. And guess what? AI destroys all of them. So, as a result, I do believe, and I'll say this again, out to 2032, Tesla is the fastest horse. Again, both could go to zero. We don't know exactly what's going to happen, but that's my take, and we'll talk more about this into the future, but that's how I've been placing my bets, too. I haven't bought pretty much Bitcoin since, I think, 42K. I had a little nibble at 60K or something, but that was it. That's when I stopped. And then I pivoted hard into Tesla. Okay, so I put my money where my mouth is, and so far I've been right. I could be wrong in the future, but again, look at the TAMs. Look at the margin that you can make from AI. That's where it gets really wild. Yeah, you can make 3 or 4% on money and wealth management and all that type of stuff, but not 50, 60, 80, 90% on these huge addressable markets. Okay, that's where things really kick off. Anyway, we'll see. Either way, hopefully we'll be around to look at it all.
From Susui, Aloha James, thank you for making me and our community better, better investors. Is there a reason why Bitcoin went up 8K since September 1st and Micro Strategy went down $10 in the same timeframe? $10. Micro Strategy is like kind of flat. Last year when Bitcoin would go up $1,000, Micro Strategy would go up at least $10. And now Micro Strategy has much more Bitcoin than last year, and it is not moving the same like Bitcoin. What am I not understanding about this? Mahalo. Thank you so much. Again, I've covered this many times, but the price of Micro Strategy is a function of MNAV, which is a function of the heat in the market. When Bitcoin is quiet, chopping sideways, there's not a lot of excitement, there's not a lot of volatility, there's not a lot of volume, MNAV suffers. Okay, here you can see back in November 2024, we had an MNAV for Micro Strategy at nearly four. Now, by my calculations, this is about 1.34. Okay, so it's come way down. And if you look at this chart as well, if you go back to the bare market of November 2022, December 2022, MNAV was zero. It was parity. Micro Strategy was trading at the value of their Bitcoin bag. And even earlier than that, in May 2022, it was way below the value of their Bitcoin. Okay, that's how it works. You got to watch this. And a simple formula you can all calculate at home: The price of Micro Strategy is a function of how many Satoshis per share or Bitcoin per share times the Bitcoin price times the MNAV premium. Two things that matter there: the Bitcoin price and MNAV. That's all you need to understand. When the MNAV sucks, Micro Strategy will suck too. And you can see the trend has been down for a couple of months now. We'll see where this goes. I think if we get into the banana zone, this will kick back up. And also, I do want to mention, uh, the sovereign put here, even though the NAV premium is like 1.3. If somebody wants to buy a big bag of nearly 2/3 of a million Bitcoin, which is extremely hard to get at, they can just buy Micro Strategy. And that goes for nation states as well. So, think about that. That's the call option or the the put option on the price of Micro Strategy. How I believe it won't fall too far. Anyhow, next question.
Hi from AG. Hi James, thank you for everything you do. I'm 31 and just started in May. Woohoo. My plan is to consistently max out my Roth IRA each year, $7,000 by dollar cost averaging weekly. My allocation is 40% Tesla, 20% Nvidia, 20% IBIT, and 20% cash, which I may deploy into AVGO, which is Broadcom, if it pulls back. I expect to follow this approach for the coming years. Do you think this is a solid long-term strategy or should I consider adjustments? Yes, you can DCA, you can DCA. Yes, all of those tools will help you for sure, but there's a better way. Um, I took your list. It's a nice list. I added Robin Hood to it as well, which has been on fire lately. Uh, but consider the rotation model. So, we'll plug in your assets, adding Robin Hood for the fifth leg of the stool, and see how your 40K would have done over the last two years. 43K, I should say. If you had used the rotation model over the last two years, your 43,000 would now be worth $337,000, which is pretty impressive. Again, you've got to be in the winning assets. And this would be if you held, it would be 160K versus holding. So, you make a lot more by rotating these assets. You're in a tax-free account. So, it suits, uh, this approach very well as well. So, that'd be my suggestion. Rotation is everything. Everything's a pair. If you can do it tax-free, it's a killer way to grow a bag. And again, in two years to go from 40K to 337, that's an extra third of a million dollars in your pocket. Not bad.
Next, zero bit. I did tell you I'm going fast. A lot to get through today. Um, thanks for what you do. Given Nvidia has run so much in the past 10 years, do you think it's a good time to take some profits? Thank you, Zerbit. First of all, I actually wrote a paper on this yesterday. I came up with a new phrase. It's not FOMO. It's called POMO. And I call that the pain of missing out. This basically goes into deep psychology of investing. Do not let your reptilian brain take control of your actions. Read this paper. It's free on Substack. Check it out. Read it twice. There's like, I've been studying the brain for 35 years. I still don't understand it, but I know not to let it make decisions. That's why I build models. I let the models make the decisions. But that touches on POMO and an experience that I had with POMO. So, for example, first of all, I did sit out on the hype trade in January 2025. Telling myself, oh, tokenomics are, I basically talked myself out of it. Not good. And it's been tearing upwards. And then finally, I think at 38 bucks, I bit the bullet. Okay. And got into a heavy perp, and that's paying off royally. So, basically, I stopped sulking and I took action and I caught up by doing a heavy perp, which is very risky. I do not advise that unless you know what you're doing. But the point here is Nvidia. I did sell 80% of my Nvidia in 2024 when it got above 150, thinking exactly the same thing that you think. It's kind of fairly valued. Um, and then April 8th happened. I was watching it. I was like, "Wow, the the numbers are still good. They're still beating earnings and looking at AI and the growth and the new tax rules. It's like this is going to be nuts." And I was looking for for an opportunity to get back in. And that happened on April 8th when it fell down to 88. Notice the eights. They're a good luck number. And I believe in good luck numbers, too. But I yoloed into a whole bunch of SLS at this level and grew my position to 5% of my portfolio from 0.7%. And then that too has grown a lot since then. Okay. So, I had a second bite of the apple not to be sidelined. Would I sell Nvidia again? Maybe if I see a huge spike and I believe it could take a big downturn. But for now, I'm holding on because if you look at some of the price targets of 2030, Boston Consulting Group, $800. That's not bad from where we are now. That's a 5x. Permittable AI, $3,300 by 2029. Very bullish. Take that with a huge grain of salt. And Benzinga analyst consensus. A whole bunch of really good analysts on Benzinga believe it'll go to $1,140 by 2030. That's a 6x, plus 6-7x. So, I believe it's worth it. This is the linchpin of AI, and Nvidia owns the data center, and data centers have been built like there is no tomorrow. Look at the names in this list: Samsung, AI chip, ARM, Micron, Marvell, AMD, SK, Broadcom, TSMC. They are all irrelevant almost compared to with what Nvidia does at the data center level. And data centers will be built like there's no tomorrow. So, check out some of my data center posts on Patreon too over the last couple of weeks.
Next, also just one thing to highlight is how big AI is. Oracle had a historic week going up like 40% in a day because of their backlog of nearly half a trillion dollars. Okay, one little company that was trading at half a trillion dollars has now half a trillion dollars in backlog. Again, I'll repeat that. Half a trillion dollar market cap with half a trillion dollars in backlog a couple of days ago. Now, to put that in perspective, US GDP is 30 trillion. Uh, that's about 7.59 trillion a quarter, and if you take this half a trillion over 30 trillion, Oracle's backlog is worth 1.5% of US GDP, and in one quarter, it's worth 6%. Just to show you how big AI is and how the demand for this is through the roof. Okay, so I'm holding on to my Nvidia because of that. Thank you.
Next question. Move this to the bottom. Um, hi James. 23 years old and been with you since I was 18. That's unbelievable. Five years together and you started at 18. You're going to go very far, my friend. That is very special. Very special indeed. Raphael, I, when young people get into investing, you know, time in the market is so, so important, and nothing makes me happier. So, brilliant. I live in the Jersey Channel Islands. Woohoo. Tax-free, you lucky swine. You. Currently, I'm heavily exposed to Micro Strategy and look to rotate. See, I told you all the Brits are in Micro Strategy. Unreal. Uh, they they were clever to jump in, and and many of the Brits actually, in full disclosure, uh, jumped into it, not because only because I was talking about it, but because they didn't really have clean access in kind of accounts to get access to Bitcoin. So, Micro Strategy was the option, and boy did that pay off. Anyway, I will keep some Micro Strategy as my core base, low. Well done. And plan to hold for many years to come while keeping a DCA strategy into Tesla for the years to come. On the shorter term, I'm very much considering leaving my 9-to-5. Imagine being 23 and quitting. That's awesome. To trade, not only daily with IDSS, but also swing on the larger term horizon with your new rotation model. I'd be open to having around 20K, 20,000 British pounds. I think it's about $25,000, $26,000 to work with for my day-to-day and swing trades. Uh, as the tax laws work in my favor, I would like an idea of what would be a good setup with IDSS. So, one of the, I have been testing IDSS on a couple of things, um, even as recently as Friday. Um, buying and selling short-term calls and puts on the day of expiry. Very risky trade. I was using IDSS on the 32nd and one-minute chart, but I made it work really well on very volatile stocks. So, you can do that if you have options authority. That's one very good way. But I do want to share as well, for covered calls is a great way to get started. $25,000. I mean, I started with 10 grand, uh, when I began in the early 90s. So, uh, yeah, you can do it with 25K dollars, 20,000 British pounds, but the rotation model is very important to understand. It's designed to optimize portfolio structure and build a big bag. It's not designed for income generation. It's critical to know that. And for income strategies, start with covered calls. Find a system, find some assets you like. Uh, we've got people in place like Australia that trade Australian stocks, which the average, the average trader on those stocks don't have access to these types of tools. So, it makes it very easy for them to win against the zero-sum game that is the other traders in Australia. So, I'm I'm sure that might be the same for some of the British stocks too, if you want to try them as well, or stick with the disruption AI. So, that's what I would do. Uh, Loren, thank you and Jacob for the detailed explanation setting up a portfolio allocations tracker in Google Sheets. Check out that video if you missed it. Um, I have a question about incorporating perp positions into the tracker. Are you including the full position size multiplied by the current price, or you only accounting for the margin you're risking multiplied by the current price? Thank you and your team very much for all you do. There's a couple of ways to do it. The easy way to think about it is imagine you get into a perp. You are buying the equivalent of 15,000 tokens, your entry price is say 38. So your notional entry would be 15,000 * 38, which is $570,000. But when you use perp like 5x leverage, you're only putting down $114,000 to control that amount. Okay. So for the tracker, what you could do is you could set your cost basis at 38 bucks and put in 15,000. It doesn't matter that you're using a perp margin unless you're going to lose on the trade, then it does matter in a big way. But, uh, given the other asset is now at $55, you're 15,000 tokens times 55 is now $825,000, and you only invested $114k. So, you can imagine what the profit is on this. It's pretty juicy, pretty nice. And I'm wondering, does anybody know what I'm talking about as well? Um, but the simple way is just imagine the amount of weight you have and the perp, ignore the perp, and then you get the gainers on that, even though it's multiplied. Okay, hope that helps.
JX for trading. Hope you're well. I want to accumulate more Tesla and Sol, but I don't have the courage to sell when we have hit certain levels to buy back lower, and I'm scared as the price will keep going up, I'll miss out on all the gains. How do you build the courage to sell and buy back again? Thank you for all you do. Well, that's an interesting one because technically what we had back here, what was that one? The, I think it was 17. This case I did exactly that. I sold, took profits, okay, above 150. And I bought back in at half the price, okay, for Nvidia. But I went in with extreme leverage and built a much bigger bag. So, that's one example of how you can do it. What I like to do is look at levels. But related to that question, another question from Rocket Trader. You were kind enough to show your profit model levels for Solana. This was super useful as I was too optimistic about my level 10, which was USD $700 versus your 413. Could you please share your profit model levels for Micro Strategy? Thank you for all you do. So, uh, we're talking about Sol here and profit-taking levels. We're going to just look at that. But the key is to have a process and have a system. So, there are two things that I would do is look at your Lilo model, tune it in based on the volatility of the asset and your profit-taking model. And by the way, uh, people were asking me this morning in the community, did I sell any Sol yet? No, I haven't sold any. I've not taken any profit. Okay, I believe we have a long way to go. Now, the LIA model identifies the key layers. And if we look at this carefully right now, that will take us up to, let me see if I can level 10. See if it's changed since 413. It's still about that. It's about 450. Let me zoom in. Make sure I get the exact number here. Uh, 418. So, it's gone up a little bit. Remember, this is a a dynamic model that changes based on actual history of and volatility of the asset, but it's still pretty close. Micro Strategy is a different kettle of fish. Micro Strategy for profit-taking, you have to first of all determine where Bitcoin's going. Then you need to assume your MNAV. Take the average MNAV of 1.6, 1.75, and then that is your profit-taking level. Okay? Doing it in isolation without doing the calculation can be misleading. Remember that, everybody. Don't get tripped up on that. Now, the profit taker is the more scientific approach. If you're not good at nailing tops or bottoms, you plug in your cost basis. For example, $18 is mine for Solana. Uh, how much you want to keep profit-taking, max 60%, you want to keep 40% in case it does go to the moon forever. H plug in your stop-loss and then your layers where you want to take profit, and it does the rest. It tells you exactly based on your risk tolerance, based on your cost basis, how much you need to sell by each layer. Again, have a process, have a system. Uh, we put a lot of, uh, time and effort and science into making these things work. So, you don't have to stress about it. Now, very important thing too. Imagine a scenario where we do go all the way up. We go up to 350, 360, $418, and then you sell 60% of your bag. Then it falls all the way down to $150, and you can start layering back in again and ride it all the way up, just like I did with, uh, Nvidia. So, that's the secret.
Next. Hi James. Last November I told my wife I wanted to get your Patreon instead of buying a lottery ticket. That's a lottery ticket is a waste of money, everybody. That's don't don't do that, everybody. That's financial advice right there. Which wasn't very often anyway. Good. To make a long story short, it was the best investment I ever made. Thank you. Your eye suite and Patreon gave me the missing tools and knowledge I needed to push my trading to a place. And kudos to your wife, by the way, for supporting you. Um, now if I wanted to, I could retire with enough funds and confidence to trade. I'm an electrical project manager for a construction company. I have the opportunity to take over the senior electrical manager's position as my boss is retiring at the end of the year. I'm very tempted. If I retire early at 42, I may not be fulfilled enough, but if I stay working, I will have purpose and most definitely get burned out. Hm. Um, how did you know when it was time to retire? So, this is is an interesting question. First of all, 42 is very young. I always thought 50 was a good age to retire at. We just heard from somebody who's 23 thinking about it. But 42, a little bit young. If you have a big opportunity to make more money, remember you could be living to 102. So, you need to, you know, you have 60 years left potentially, hopefully, of life. That's a long time. So, what I would do, um, trading for me is sport. I really enjoy it, but also the pressure of the community keeps me very, very focused and sharp. You need something to keep you sharp and focused. If you treat trading as a hobby, you'll fail. If you treat it as a sport where you have to be the best and win, and you have people that rely upon you, then that'll keep your tools sharp. Okay. So, what would I advise here? Till you have the eye of the tiger, hunger for full-time trading, and maybe get a little bit older, practice in the meantime, work your main job, get the promotion, and trade on the side, swing trade every week, two weeks, four to six weeks. You can still do that easily while handling a full-time job. And when you've had enough of the 9-to-5, then you quit. So, it sounds like you're in a good spot. But find your rhythm. Make it work. Uh, just show up.
Hi James. Thank you for your hardworking team. Uh, we are very grateful for all that you do for us. When is the retirement model being released? Just show up. I love that name. I show up every day. Uh, these specs are done. The coding began, uh, about a month and a half ago. We actually have the models. We're just webifying them. And hopefully, we'll have the release candidate done by the end of September, in about 16 days. It's going to be very fun and very versatile. I'm glad you asked because what you will have the ability to do is configure, uh, all your own plans, your templates. It can be a retirement plan for your kids or college education. It could be a retirement plan just for you. You can build it from scratch. You can plug in your existing portfolio and see where it gets you. You can configure your DCA amounts, etc. And, uh, you'll have a complete tracker that will kind of create some type of gamification for your portfolio as well and bring about a lot of focus and accountability because, you know, I'm huge on planning. This will all be there. So, it'll be way beyond my retire on videos, and everybody will be able to create their own account and plug in their own numbers and see where they get into, you know, uh, and as well as doing different scenarios like bull case, bare case, expected case with all the price prediction models. So, that's coming.
Ramagaloo, I'm new to leaps and I tried buying the Tesla 300 calls, $300 strike calls for December 2027 like you mentioned in some videos, but the premium is super high now, $15,000. Do you think it's still worth it or should I look at earlier expirations, uh, or maybe focus on other stocks or leaps opportunities? By the way, $15,000 that was a couple of days ago, 11 hours ago, now it's over $18,000. Anyhow, another question tied to that. Abundant Life, for over a year, I've been getting your trade notifications, but never really understood how to proceed because I do not understand options well. Finally, I did a little research on LEAPS and I wish I had done it sooner. I have an investment account with my 300 shares of Tesla. Good job. I am a solo practitioner with a business that owns more than a retire-on bag of Bitcoin. Awesome. I know so many small businesses that have bags of Bitcoin. Carpenters, electricians, general contractors, all people I've worked with, all people that got influenced by me talking about Bitcoin in 2017. Uh, it's crazy. Many of them now are actually retired, sadly. So, they're no longer build. But anyway, um, would it make sense to buy $320 Micro Strategy calls expiring 12/17/2027, assuming I could cash them out at the end of the fourth quarter? Okay, couple of things here. I'm going to tackle this and get into the bigger story first. We are close to the top of the bull for Bitcoin. Okay, you do not, first of all, buy leaps out to 2027 if you have a plan to cash them at the end of the fourth quarter. That is just wrong. Second of all, you don't buy short-term options, you sell them. And third of all, you don't do it when it's very volatile. So, be very careful here with that. And be very careful with proxies. Proxies are great when nobody knows about them, like in 2020, 2022 at the bottom of the bear. Here, I'd be far more careful. But let's get back to Tesla. And remember as well, never buy leaps after a crazy spike. Okay, some wild numbers here. This is Tesla. Tesla stock is up 90% over the last 100 trading days. That's not 100 days, 100 trading days because it's, you know, five trading days a week. And Tesla shot up $75 just over the last eight trading days. And those two green candles you see there are massive, you know, 6% and 6% compounding. The latter 6% is a much higher dollar number than the previous one on Thursday. Okay? So when this happens, the volatility goes to the moon, and it drives the option price to the moon too. So you do not buy them here ever. If you have anything, this is where you sell options. And just, uh, for perspective, the $300 calls, um, as Tesla shot up from 317 to nearly 400, you can see here the $300 calls if we try to find them at the top are now $180.30. Actually, the bid-ask is 180.65 and 181.25. So, they've gone up an insane amount. It's funny to see the volume is so low. Only 251 contracts. Very small. Anyhow, the key thing here is when you look at what this thing has done, this is the 300 strike leaps. People know in the community, I spent the last month or six weeks buying these like mad, and they've gone from 75 bucks to 180 bucks, up 240% in a very short window of time. But I do want to alert people as well that most of my leaps are at $140 and $160 strike prices, not 300 bucks, even though I was buying a lot of those too. But, uh, during the $106 dip, I actually did something I never do, and that's buying out-of-the-money leaps because I knew Tesla was going to 300 bucks by 2026. Therefore, I went wild and got as much bang for my buck, putting out as few dollars as possible to buy the $140 strikes and $160 strikes. So, that's kind of where I am. You cannot buy them now, everybody. They're too expensive. Um, and I wouldn't buy Micro Strategy either. Hope that helps.
Next. I feel like I'm disappointing people, but that's just a fact. Spookster, I hold both Tesla, Micro Strategy, and Tax-Free Pension Fund. I would like to build bags by rotating in and out of each. I understand there is a rotation model for up to five stocks. Is that overkill or would ATR tool also work? Thank you so much for your insights. Uh, ATR can work for pair trading, but you got to really understand what you're doing. Uh, but yes, it can. Uh, rotation model is the best, and it does work for five assets. The more assets, the better the numbers, the better the results because it finds better deviations from the mean across different assets and other science we have in the actual model. But two also works. You can turn off assets by just hitting the turn-off button in this one example we showed. You can turn off Nvidia and Tesla and you can set the other one to 100% retention and have just one share for the third asset. And then really, you're just pair trading two assets. So, yes, you can.
Next question from Neuros. I have a question regarding the future price of real estate as AI disrupts the physical world. This is interesting. Uh, and I had to think about this for a while. Real estate unit is the price of materials plus the price to build plus the location. In fact, in the US, it's a lot more. There's licensing, there's contractors, there's insurance, there's delay, there's the opportunity cost of money, there's, uh, the permits. I mean, there's a huge laundry list of things you got to pay. But, uh, as discussed in this community, AI is expected to disrupt the physical world within 5 years from now, where goods and services may become very cheap, productivity skyrockets, production of materials, brick, concrete, paint, etc., and building real estate units may become cheap and create an abundance in the real estate market, as elsewhere, making real estate cheap and affordable. Therefore, real estate will continue to lose its significance as an investment. I also own several real estate units backed by mortgage. I'm questioning myself, should I sell them and move into a faster horse? I am surely aware real estate has other aspects to take into consideration, but, uh, this question from Latvia. I've been to Latvia. It's a beautiful place, Ria. Anyway, um, super interesting, and the town is beautiful as well. Let me try. I'm I'm not going to spend long on this, but you can pause it and have a quick look yourself. As a couple of things, I do not necessarily agree with you. Um, you know, the AI construction, it's going to take a long time before that's at scale. There's still, it's a very slow thing to do to build places because of zoning law, scarcity, permits, regulations, and AI mainly enhances back-office real estate and all that. Back-office, uh, roles, not creation real estate, uh, limitations to construction regulations, land scarcity, zoning laws, infrastructure constraints, all make this very, very hard to do. I tried to put together a little impact out to 2050 of projected construction cost. I think we will get better modular homes, better quicker manufacturing technologies. You'll be able to get a piece of land, plumb it for water and electric, and stick something on top that may be made in Slovakia that you can import to Latvia. Literally, true story, it can be done. There's companies in Kelowna, Canada that have prefabs that are installed in the in California here, made out of really good wood. That'll happen, but it'll be a very gradual down thing. So, don't think over the next 5 years is going to be a big impact. What I do believe is more important, and this is this one, sadly, I do believe there will be a big impact on the amount of people that can afford real estate. So, there'll be a lot of downward pressure on rental income because of layoffs and AI replacement. So, if you are thinking about having a place, make sure it's in a city with lots of what I call feeders, whether they be, you know, AI jobs, people that earn good income, make sure you have high-end real estate, because that will always be in demand. But if you are in low-income housing, that's going to probably get hammered in the future. There'll be fewer renters or fewer renters that can afford to pay the type of rent you have. But tech hubs, for example, like the Bay Area, where I am right now, may see significant demand. Again, think high-end, mid-tier luxury markets, you'll get, uh, better income there. So, that's what I would be afraid of. Hope that helps. Tough question.
Sito KC, since AI energy demands actually ignites a nuclear power boom, could uranium surge ahead of the S&P 500 and gold in annual returns as the commodity of the future, and does it currently price truly capture the AI fuel exposure potential winning horse making in the here? So, a lot of people have been talking about uranium for years and years and years, but a couple of things I'd like to say is this is the chart, uh, since, yeah, going back what, 20 years more, and it really hasn't gone anywhere. It did have that big exciting spike early 2024. It's like nuclear is going to take over the world, and I was like, nah, it takes five or six years to build a facility, so not going to happen. This is actually uranium futures in the ATR model. You can see we had the clear sell signal whenever is FOMOing into uranium. Then it got hosed and it fell from 120 bucks down to 50 bucks. Now, we had a little bit of a bounce around the $60 level, and then another sell signal. So, would I buy uranium here? No. And remember, don't buy the fuel before you can buy the car. It takes so long to build these nuclear plants. It'll be a while before the demand for uranium trickles down. Okay, it's a long-term play. You don't want to wait five years for something to pop. That's painful. So, that's just my two cents on this. And I'm not a nuclear uranium expert by no stretch, but again, my crude analogy is, don't buy the fuel before you can buy the car.
And helping animals. This week, we are helping Wamata, the 2-year-old elephant, little quiet, calm little girl who loves eating greens and almost, uh, I can't read that last piece. Hold on a sec. Is blocked out. My eyes, uh, as much as loves wallowing in the mud. Hello. Thank you all for helping Wamata. And tomorrow morning, DCA Live. Every morning, the team is already fired up, uh, about this one. So, that is kind of the story today. I'm going to do some live questions. Uh, hello Crypto Cruiser and the whole gang. And, um, I know the questions are coming my way, so thank you all for coming. Uh, they'll be texting to me in a second. There they are. Thank you as well, the people behind me. Sir Winston, a donation to the animals in memory of Charlie Kirk, a true patriot who warned college kids about the dangers of liberal fascism. I read out these things because I have to. Right. I, it's terrible what happened. Um, and yeah, I hope it's a wake-up call for the world. You know, violence doesn't solve anything anywhere, ever. Okay? Everybody should get along. All colors, all creeds, all sexual orientations, all religions. Peace. Everybody. And I think I also say this, I shouldn't laugh. If everybody had a purpose-driven life and Bitcoin, maybe a Tesla bag, there would be peace because they'd be occupied building their retirements, making the world a better place. So, Bitcoin solves that. I believe Joe Biden's daycare. Hype is a DEX still a threat to sell? No, Hype is a DEX that's making tons of money, but their moat isn't very high. Easy to replicate. I own Hype. I own Drift. I own Jupiter. I own Solana. They're all different. Uh, always when you're investing in something, look at the moat, and Hype is amazing. Great product market fit, but, uh, we'll see where it goes. But I do believe there could be a Hype killer in a year or two. Mark my words. Bookmark this.
Anglo Blackon took a ride in the Zoox in Vegas this week. Very interesting. No way they can beat Tesla. Yeah, Zoox. Consider Zoox like a little like a shopping cart that goes around all people's homes at very low speed. It's not a generalized solution. It's like a Waymo, but even more limited. It has the same mapped locations, the same hardcoded heuristics to make it navigate around things, and tons of LiDAR and radar and sonar and all sorts of things. Probably a few dwarf dwarf dwarf bins on the top. I don't know. It's not going to make it, but it, it'll, it'd be great, uh, purpose solution for just up and down Market Street in San Francisco, something like that. And that's what will be good. Um, and also, I'm very supportive of all of these new robo taxi entrants because it supports the case for Tesla, where they will dominate anyway. Bobby, bada bing, bada boom. I love that. I got lucky and bought a lot of Tesla before the pump based on James' warnings. All cream rises to the top. Timing is difficult to nail, but easy to nail over a year-plus period. So, congratulations and thank you for your super sticker. Bman 6319, Angle Black, Dog One, David S, Adam Q, Junk, Forest, and Signal 103. I appreciate you all. Huge thank you as well to Sean Donnelly, Luke. Good to see you. You're not sailing. Awesome. And everybody for being here. TD Tesla K8, the whole team. And who did I miss? Nobody, I hope. Nobody, I hope. Thank you all. Uh, Angel Black, um, little question here. You're you're a great supporter of the channel. Uh, I know my job is over in five years or so, so I'm out running it with my portfolio. This is the way. Okay. This is the way. Joe Bacti, he talks about what I've been talking about for a long time. We have to become capital allocators to secure our future. No longer depend on being a wage slave to secure your future. Become a capital allocator. The next three years will be wild. Thank you all for coming. Thank you, Uncle Baxon. Have a good day, everybody. See you all tomorrow morning. Bye.