 NASDAQ jumps back 200 points, or it's not 200 points, 322 points, or like P.O. Tuchman would say, we got two handles, right? Dow Jones jumps up 435 points, the S&P 500 up 75 points as well. So anyway, the Dow Jones and S&P 500, both up 1%, and we have the NASDAQ roaring back those tech companies. That was something you guys and girls about, that's probably having a big sell-off, that we're having a big sell-off, that you probably could find some bargains, are backing out at 2.69%. Just last week, I was saying, welcome to the bad market, are we out of the bad market? Without further ado, you know, I got to bring in my guest, Uncle James, who's coming in all the way live from New Jersey, aka New York Wall Street, you know, it's right across the pond for them. So anyway, without further ado, James, how's it going today? How are you today, Mr. Prince? I'm doing pretty good. I'm actually out in Alexandria, Louisiana today, I'm on the road right now. But definitely glad to see you all, we've had a great day on the market. And now people are saying, hey, the bad market is a thing of the past. What do you think? Is this a dead cat bound, or this is a real raw back? Well, there's something known in bear markets called like a bear trap, where you get fairly big rallies back, and then suddenly you can get hammered again. I would say, from my experience, it just hasn't, I just haven't seen enough people cry yet. And I just don't think we've gotten hammered enough. And I think right now, you're getting like a bounce. And this is very characteristic of bear markets, where you have these sort of choppy markets. They don't, often when we say bear markets, a lot of the newer investors right away just think that means the market just goes down, down, down and doesn't do anything. But there's a lot of volatility in that downward bias. So we're going to get some leaps. For me, I wouldn't, until we get back to where we were, let's say, I don't know when this thing started at the beginning of May, I'm trying to guess when it, or maybe the beginning of the end of April, until we get back to where we were, I don't even, right now, I would say we're still in a bear market, and I think we're going to stay that way through most of the summer into the end of October. Okay. So now you brought this bear trap. What is a bear trap? You can't explain it there. Is this, I've kind of heard the notion of a daycare bounce or a bear trap. What is a bear trap? Well, bear trap is like, for example, first let's just get a little focus. For most people, there's really two kind of bear markets. There's this sort of systematic breakdown, like in 1987 or maybe in 1929, I was contrary to popular belief. I was not around in those days. But in 87, I was around, and we just got hammered, like it was, the market just collapsed. It was brutal. However, there's another kind of bear market where, like I would say in 2000, where the market sold down and then rallied back into what I would call a huge bear trap, sucked a lot of people back into the market around the beginning of the summer, like about now. And then the market sold off huge after that, and it just kept going down and down and down and down. It just didn't bounce back at all for months and months. It took quite a while to work its way out of there. In a classic bear trap, after you've had a lot of selling, what's happened is a lot of investors, like in the 1990s, was probably the most prevalent. But recently, I see a lot of this, is people buy on the dip. You get a sell-off, and people are confident they can come right in. They buy it a low. And the next day, it's going to be higher. Well, until that psychology gets broken, that's when you know you're at the bottom of your market. And you're going to get these periodic, fairly big rallies where, like, what was it last week? We had five days in a row where the market went up. And then we started off this week, where I think Monday was also up. Maybe I have my days wrong. But we've had some good moves. But who knows? We could go into next week, and suddenly there's a whole new game. Like, today they're talking about, Saudi Arabia is going to pump more oil, and, you know, we're going to put on those wind buttons from Gerald Ford. They're going to dust those off, and we're going to whip inflation now, and we're going to do all these things. I don't think any of this stuff is going to work. And Saudi Arabia couldn't pump more oil if they wanted to. So it's none of this is going to make any difference. And I think when the market gets wind of that, then we're going to go back into a selling. I think there's some relief this week because China went on lockdown. And a lot of people always go, there's a bear market being we're going to have a recession. Well, like bear markets, recessions are bad or worse, right? So I think we're going into kind of a slowdown. A mild recession is a slowdown. I think what scares a lot of people is continued lockdowns globally for COVID. That would could get us maybe in a bigger recession. And maybe some major, major like oil shock or some kind of supply change shock could really knock us around. I think right now, most people are expecting the Fed to raise rates quite a bit. So I think that's starting to get factored into the market. And it may not be as negative on the market as it appears like as you would think it would be. Because people are thinking they raise rates, they're going to tame inflation. That's good in the long run. So the market may react more positively than that. And we're kind of conditioned to think right now. OK, now you have people saying they're saying the Oxford Mister reports are coming out saying latest CPI report put inflation at 8.3%. They're saying inflation has been top those those interest rates that you just hit on everybody's expecting a point five or 50 point base base points to be hit by the Federal Reserve. So to send the market is kind of already baked in those Federal Reserve interest rates. They're sending inflation is top. And they're saying we're going to increase the input of oil, right? The output of oil, you know, from Saudi Arabia from the OPEC and things like that. So now you can take this rally. Is this is a bull talking or just some bull crap? Well, this is this is I think this is the BS thing. I'm going to tell you right now what we have in the old days, we had we had trading systems that weren't as efficient. Now we have super efficient trading systems, but we have huge gaps in information. What people don't want to tell you is, first of all, Saudi Arabia is not going to say publicly no to a U.S. president, no matter what they ask. They're going to say yes, that doesn't mean they're going to do anything. And the problem is after 10 years of under investment in oil infrastructure, we're actually probably the first time in my lifetime that Saudi Arabia cannot just press a button and put more oil on. There's a lot of ways to get more oil in the U.S., but it seems that the current administration wants to block those ways, doesn't want to let it happen to some degree. We've had some relief because the Permian Basin that's in Texas, that's that West Texas grew that we always see WTI. They've found a lot of new ways to get oil out of there. So there seems to be a lot more oil there than sort of technology has created more opportunities to get oil out of the ground in that area. And Texas, obviously, is very friendly to oil drilling. If you go next door to New Mexico, you can't like they won't approve at least to drill oil almost no matter what. So I think I think a lot of this is sort of a hopey-hopey right now. And this sounds good. It was like when the Biden administration, at least, used the Strategic Petroleum Reserve to release some oil. Those are minimal. That's like a drop in a bucket. In the long run, it's probably a big negative. In the short run, it really doesn't do a whole lot. It's just something to say so that they can say, hey, we're doing something about this. I would say I think they missed the boat. And I think and I think Janet Yellen finally recognized that she was really off. I mean, she was the queen of QE2, that quantitative easing and that printing money or helicopter finance, whatever you want to call it. So now to see her admit and say, hey, it wasn't transitory. Inflation was serious. I mean, anybody who's around from the old days, a guy like me who lived through the 70s, we all know if you have a catastrophe and you got to print a lot of money and you have super easy money, eventually you got to pay that bill. You got to pay for it. And now the bill is starting to come due. And I think unless the government, I mean, there's some things they could really do that would mitigate this whole thing, but I don't see this government, this current administration making those moves. So I think we're in for a ride here. So you think that at times we're going to get worse before they get better? Yeah, I think we're going to have a rough summer. I think we're going to have some rallies like now and then we're going to get hammered again. And your friend Peter there is going to be one minute, he's going to be overjoyed. And then the next he's going to be doing like that Russian hat dance on the street or whatever they call it, right? And then the next day he's going to be upset that the markets lousy for a couple of days in a row. He's in the heart of it. So he really gets, he's like a ping pong ball. He's getting slapped around all the time because he's right on the floor. It's easy for me because I sit back and suburban New Jersey, I'm not like there all the time like I used to be. And most of the money I deal with is my own money. So I have a conviction of what I'm doing with that money. So it doesn't, it's the ups and downs every day aren't really an issue. And I don't really invest that way at this point anymore. I'm more of a long-term like player. I think you're going to, I think you have inflation is still a really big problem. I don't, I'm not seeing anywhere near a peak we might be, but even at these rates, it's astronomically high. I think it's just rates. What do you think we're going to have a peak in inflation? I just think, I just think we're, we got to see more numbers yet. You pumped a lot of money from 2008 all the way through COVID into this economy. The government has printed a lot of money and there seemed to be this idea that we could just print money endlessly and that was going to be okay. It's not. And it's going to, we're kind of getting our come up and I think for that whole philosophy. And I was really telling for Yellen to admit she was wrong because politicians never do that. And so she must feel she was really wrong. That's what it like is my, I think my point. If we go back to the late 70s, early 80s, I think it was Paul Volcker that came in to shop interest rates of 20%. Yes. And pretty much forces it into a recession to clear out this inflation. Do you think that's going to be, we're going to have to put that on repeat again and have to go- I hope not. It may happen. I would say it's probably going to happen because the Fed is going to be incremental here. And I think right now the horses left the barn. I think they're chasing a horse. They're going to need like seven, probably six more, 50 basis point interest rate increases. I mean, they got a long way to go. And now they're trying to tighten up their balance sheet and they're starting to, you know, they're printing less money. They may be able to pull it off. Maybe they can engineer this thing. I think what they really need to, I just, I mentioned this the other day when we met in the city, I think the road to hell is paved with easy credit. And I think your easy credit is dangerous. And it always blows up in your face eventually. And for a government, it just takes a lot longer, especially a government as big as the United States. It takes a lot longer for it to blow up. I'm hoping we don't have one of those bull boker moments because all the younger people are going to be shocked. Old guys like me, we're kind of ready. I don't have any debt. I don't have any variable interest rates. We're kind of like, I have a lot of oil stocks and I have tech stocks, but I bought them 20 years ago. So it's different, you know? If they go down 20 bucks a share, I'm like, oh, it's not really, it's not that big of a deal. At least yet. But I think, you know, I think that they're bringing out this inflation is going to be grueling. And I don't, the way things look right now, I think we're going to have a slowdown and maybe a milder recession. I think some parts of the economy are going to be greatly affected. Some are not. I think there's a big problem. As usual, we have this skill gap and I don't say it in a negative way. I mean, sometimes you have a lot of people who know how to make hamburgers and people come along and say, I don't want to eat hamburgers anymore. I want to eat slurpees. And so you need new people to make slurpees. And some people who make hamburgers can make slurpees and maybe you need to train a whole bunch of new people to make them. And I think this is always an issue. And I think certain skill sets are probably going to prevail over the next couple of months and other ones are going to suffer. Okay. Now what we're going to do here, we're going to take a break. I mean, a very quick break. We're going to come back. I want to get into cryptocurrencies. We're going to get into cryptocurrencies. Also real estate. Real estate is a hot thing right now. You just raise the kind of cooling it down. But let's see what you think about these cryptocurrencies. Are they on sale? Are they real value being shown? Are they heads against inflation? Are they heads against the market? What's going on with the cryptocurrency world and what's going on with real estate when we come back right here on the price of investment? We're going to get into cryptocurrencies and real estate. Cryptocurrency is being very cool this year. It was a hot topic back in 2021. Everybody talked about it as it roared up, sort of going on with the leader, Bitcoin, Litecoin, Ethereum, those are the top ones, some of the bitcoins that are out there. They were all over the place. You had Sheeve, you had, I mean, you couldn't get away from the cryptocurrency world. It's gotten very quiet. What does that mean right now coming in 2022? And also we've got the real estate market which is hot. People houses are building up in equity, but is it really equity if you're in a high inflationary environment? There's so much more. So I'm here with our guest. I'm here in Alexandria, Louisiana, Anna traveling the road right now and we're here with James Ford and James. What's going on? What do you think about this cryptocurrency world falling out into 2022? Well, very interesting. I think for one, I think the theory that Bitcoin is an inflation hedge is being severely tested right now. So we're going to find out if it really is an inflation hedge. I think a lot of these old coins are just nothing. And I think a lot of them are going to go to nothing. I think things like, I think it was terror that blew up the other day which was a stable coin that was kind of backed by other stable coins or other coins. I think that just doesn't work. So that's been proven, but these are the things that have to happen for you to find this stuff out. I think again, the major problem and the problem I've had with crypto almost from the get-go is what does the token price have to do with the underlying technology? And I think if you find crypto that a token that's used in some interesting new technology or a cool technology that actually does something, I think you might have something there. I think if the token doesn't really do anything, I think you're in big trouble with any of those. I think that what we're seeing now is, well, the market is maybe selling off and you're seeing layoffs on some of the crypto exchanges. You're seeing a big cutback in the amount of trading. I think this is a huge opportunity because for example, this afternoon, Chippalodi said that they are gonna now start taking some crypto as payment for those tacos. So you're gonna have crypto tacos. So now you're getting more into something I'm more, I could sink my teeth in. So I think there's that. I think there's the sort of the blockchain internet that's probably in the horizon. Some people call it web 3.0. I think that's something to keep an eye on. I'm still real positive on blockchain technology. I just, yeah, the metaverse and I think that blockchain is gonna, what has happened is originally the internet was this diversified kind of free-for-all. Through companies like Google and Facebook, the internet has gotten centralized and the internet currently is being used to do things that it was never designed to do, which is commerce. And that's why when you sign on now, you have 67 passwords, you have to change your password every 15 minutes. They have to, not only do they call you and give you a code, they call your mother and give her a code but you have to prove first that she's really your mother and do all this stuff like this is nonsense. This is insane. So crypto is gonna, blockchain is gonna get us out of here at least that's my plan. I don't know if anybody's listening to me but that's what I think is gonna happen. So I think crypto, I think the downside of this crypto sell-off is we start to separate the wheat from the chat. We find out what's real and what's not real and what's just crap as excuse my English but what's garbage and what's really something substantive. And we might get a better, we also might get some trading regulations and things like that coming in because you know when these things blow up, there's gonna be a lot of screaming from a lot of people who spent a lot of money on things they shouldn't have. So we'll probably get some regulation. Hopefully not so much it's gonna crush the market. One of the major things I'm worried about is yesterday the Biden administration said that they were concerned about the carbon footprint of crypto miners. And these guys, I don't know, they're like everything they touch seems to turn into a mess. So I'd be a little concerned about hearing stuff like that. So like I'm positive in the long run about crypto in the short run, I'd be really careful and I'd stay away from most of the old coins right now, all those MIME coins and cool like Shiba, Doge. And if they don't really do anything, you're wasting your time with those. I think it's very dangerous right now. And that brings us to real estate. The real estate market is gonna be really impacted by higher interest rates. I mean, there's no doubt. Right now because of purchasing power has declined with inflation. Home ownership is basically as unaffordable as it could possibly be. The affordability index is at kind of the 2008 lows like it's a mess. With interest rates going up like this, I would say real estate right now is one of those things that if you own the real estate already, you might get a really nice ride from inflation with the value going up. You may not be able to sell it, however, very easily for a while. I think it's gonna be really tough for new buyers or buyers to get involved in real estate right now. You may see some weird things happen because what may happen is you may get cash buyers who will pay all cash for something, but they might wanna buy things at much lower prices. And they might look for certain things because a cash buyer is a different. You may, other things that are hurting a lot of real estate is in areas like New Jersey where you have really high property taxes. That puts a cap on how much real estate can go up because people have to pay huge property taxes just to get into the house to begin with. So, I mean, as you know, I've always said, well, I think real estate is a great investment. I am not a fan of real estate. This market doesn't change it. I'm not really a big real estate guy. I just, for whatever reason, I find it too slow and too tedious to deal with, but I do think it's gonna be a little tough or your sellers are gonna have a lot of advantages right now because you're gonna get high prices. Whether you can find the buyers or not may be a problem. And it just may get real slow for a while. It may just have peaked and kinda, I don't foresee some big collapse or anything like in 2008, but we may have just, we may like they're hoping with inflation, hoping, hoping that it's peaked. Maybe real estate is kinda peaked for a while and it may just go flat to slightly down for four or five years to digest all this kind of wild-eyed speculation that's gone on in the last 20 years with real estate or really since 2008, it basically went right back up again. So, if you was coming into real estate, Mark, what would you do? Would you buy or would you just wait still in the sideline? The only way I would buy right now is if I'd find some place that I thought was really cool that gave me a really good value. Like for example, and this doesn't mean I'm gonna go out and do it tomorrow, if you come from New York City, you're near another city. That city is Philadelphia. Philadelphia is less than 100 miles from New York City. As a New Yorker, if you go to Philadelphia, Philadelphia looks very affordable compared to New York City and it has many of the same cool things about New York City, but it's different because Philadelphia has its own style. It's a different city. It's not a little New York. It's a totally different place. So, I think there's opportunities, like maybe where you are in Colorado, it's very inflated, very expensive, but where you are right now in Louisiana, it may be a beautiful place and it might be really affordable and really neat. So, you gotta kinda, I think you just have to look around and like anything else, you gotta look for those values. Real estate is very local. So, I'm sure there's gonna be areas that we, for whatever weird reason, we haven't seen a lot of growth. Like maybe real estate that was in oil patch areas and the oil industry was kind of in the dumps for like 10 years. It's only been the last two years or so where it started to pop again a little bit. So, there may be some areas where housing is relatively inexpensive, but places like in tech areas where the housing is way like crazy, like around San Francisco and stuff, housing is not so expensive. So, I think like anything else, real estate you just gotta look and of course then the other thing is particularly for home ownership, you gotta like to live there. You can't just buy something because it's, you know, it's goodbye. You gotta actually like the area. You know, you gotta wanna say, hey, I like this is a nice place to live. Okay. And go ahead. James, we gotta run and go. Right now, how can people follow you? How can people get more information? How people can come check you out in New York? Let us know. Okay, great. Well, I have, the main way to find me is I have a Facebook page called Unofficial Wall Street and while you're on there, I would highly encourage you if anybody has a 401K plan or any reoccurring investment plan going on right now, do not let the bear market scare you out of it. Make sure you stick with it no matter what. That's the most important thing. So, when you go to Unofficial Wall Street, it's a Facebook page, you can find me, I have a link to my, I have YouTube, I have some YouTube videos. I still, I do private tours in New York, private only directly for myself. So, I do do a tour every once in a while, which is a lot of fun. Prince has been on one of my tours, he knows they're kinda nutty because I'm kind of, I'm crazier even than I am on the show when I'm at a tour because I'm not being recorded so I can say almost anything I want. And so that's a great way. And that's the best, I'm working on a crowdfunding project right now and if you go into my site, you'll see a bunch of stuff about it. It's kind of interesting and it's also another interesting sort of alternative investment to buying stocks and real estate and other things that right now might really scare you or you might wanna say, hey, how else can I make money? There's other ways to make money out there. Okay, well, y'all got it. Jay, is there anything you wanna leave anybody with before we get out of here? It was a pleasure once again to be with Mr. Prince and I enjoyed our visit to Louisiana, I haven't been there in a while. That's what I like about this show, I get to travel like and I leave my own house. And I just wanted to tell everybody your, Prince's audience is fantastic and for what does it think our friends in Hawaii here, I wanna say aloha, I don't know how you say goodbye and it's always a pleasure being with them and having Prince on, invite me on and I didn't wear my Hawaiian shirt but I'm with you in spirit. Okay, all right. Well ladies and gentlemen, boys and girls and children ladies, you are now tuned to the Prince of Investment and to the next video of the podcast, cartoon, the water veils, crazy, you see us do around the globe. Don't forget to hit that like, subscribe, comment, share button, peace, be safe, I'm out and thank you. Thank you so much for watching Think Tech Hawaii. 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