The Capitalist Investor - Episode 180

The dream team of Diamond Hands D, Tony the Tiger, & Cool Hand Luke discuss their Memorial Day weekend and topics of the day. AI and NVDA has been going nuts in the stock market.. at-least the hype has. What’s next for NVDA and AI? We always talk about inflation, but we never really talk about deflation? Is that a possibility? What’s going on over at Chick-Fil-A and the potential boycott? Find out all of the teams thoughts and more on this week’s “The Capitalist Investor” podcast!

NVDA & AI Stock Explosion

We’ve been talking a lot about Artificial Intelligence, but the real explosion didn’t really start in the stock market until NVDA reported earnings. But once you go past the curtains of the report, there could be something deeper going on. AI right now is an R&D expense to a lot of companies which means it’s an up-front investment. AI isn’t really adding dollars to the bottom line yet. The question is whether or not these stocks will grow into the current valuations or if these current valuations on AI stocks are over-done. The team discusses NVDA and their thoughts on what’s next for AI stocks and the technology in general.

Potential Deflation & Chick-Fil-A Boycott

All we have heard for two years straight is inflation, inflation, inflation. But what’s not really talked about is deflation. Prices have risen very quickly, and people seem to keep on spending their money, whether that’s on credit cards or not. But when recessions hit, typically consumers eventually cut back their spending. When people cut back their spending, it’s possible that you can enter a deflationary environment where prices actually go lower. This can impact many aspects of the economy & stock market. Is it possible that if the labor market takes a turn and unemployment rises we could have a deflationary environment? In that case, won’t the federal reserve just lower interest rates and pump liquidity into the economy? With how quickly rates have risen, a lot of people who locked in their 2.5%-3.5% mortgage rates are unlikely to leave their location for a job in another state and give up that mortgage. That could also have an impact on the labor market.
It looks like a lot of boycotts are getting attention and traction. Beer sales seem to be down for Bud Light & Anheuser-Busch and Target boycotts seem to be underway. This is also impacting both of their stock prices. But another one that is getting attention is Chick-Fil-A with the attention around the DEI (Diversity, Equity & Inclusion) VP. Is a Chick-Fil-A boycott underway?

Connect With Mark Tepper

Connect with Derek Gabrielsen

Connect With Luke Lloyd

Connect with Tony Zabiegala

Send your questions and comments to us at info@SWPConnect.com

Keep Listening to The Capitalist Investor:
Episode 15:
Spending Strategies in a Bear Market, Ep #15
Episode 31:
Handicapping the 2020 Election, Ep #31
Episode 47:
11 Investments in Your Home That Pay Off, Ep #47
Episode 63:
Jeff Bezos and Amazon: Past, Present, and Future Ep #63
Episode 79:
7 Ways Biden Plans to Tax American Families (Part II), Ep #79
Episode 95:
5 Beaten Down Stocks to Buy on the Dip, Ep #95
Episode 111:
Special Episode – Talking Energy with Daniel Turner, Ep. #111
Episode 127:
Retail Earnings Tank & What The Heck is Greenflation? Ep. #127