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stocks worldwide are tumbling as
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investors worry that the US is headed
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into recession a weaker than expected us
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jobs report caused the Panic that seems
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odd um at the time of the taping the Dow
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was down 4.3% in the last 5 days the S&P
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down 4.8% and NASDAQ down 6.5% outside
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of the US big plunge the Nay uh in Japan
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dropped 12.4% overnight as big as fall
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since
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1987 that's a long time in Europe the
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stocks 600 index is down 2.5% that's not
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so bad so what was happening here Scott
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you were just saying you know there was
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uncertainty with tech earnings because
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they're a little disappointing although
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they've been going like Gang Busters I
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guess they stopped gang bustering um we
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can just so people aware at the time the
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taping Amazon stock is down 133% in the
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last five days after missing
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expectations on revenues and sales also
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to blame Amazon says it plans to
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continue spending big in AI at the
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expense of short-term profit this is
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everybody Apple beat expectations for
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net sales and income but Revenue in the
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China region decline China is seeing a
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real problem with consumer spending as
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the company faces local competition and
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bans on governmental use also Intel had
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the worst trading day in 40 years
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announcing it would be cutting 15% of
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its Workforce and suspending dividend
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Pavements as part of a restructuring
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plan that uh uh guy who's running
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against or is having a real um I think
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that's his name um is having a real uh
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issue catching up in AI um tech stocks
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have overall seen their steepest
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three-week slump in two years but they
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were getting a lot of profit taken in
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that regard um I don't know th Scott big
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thoughts again I think this is a little
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bit you know CNBC or whoever it is or
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the Dow or name your digital media
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company wants to get as many clicks as
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possible as we stand here the Dow is
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down uh it's down
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1.9% and it's plummeted to levels not
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seen since July I mean this is not it's
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not that big a deal there there's says
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calm down but go ahead go well it it
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it's just true it's out a historic run I
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think this is I think this is a bigger
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deal in Asia they're worried about uh U
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what's interesting ponage Gat again
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another one of my colleagues uh at NYU
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always talks about trade is much more
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Regional than people think our biggest
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trading partner is Mexico I think our
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third after China is Canada basically
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comp countries almost always have their
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biggest trading partners based on
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proximity and when China is going in
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when the second largest economy is going
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into a Slowdown it's just going to
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impact the entire region the weird the
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if you look at the data un has ticked up
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the jobs report new jobs report was
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disappointing so the market seems to
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believe that we may be going into
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recession the other thing quite frankly
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is just stocks are um were expecting a
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rate cut and there's a fear that the
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rate cut has not come soon enough and uh
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the the expectation of a rate cut had
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been built into stocks but if you look
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at what's really gone on here it's just
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not it's more it's more spectacle than
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significant when you drill down on some
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individual stocks what I think you find
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is is just some
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incredibly um interesting stor so for
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example Intel I mean just to give you
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one stat Intel is now Worth or okay let
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me put this another way Nvidia is worth
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20 times what Intel is worth right now
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Intel in the last 5 years has lost half
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its market cap I mean this is a company
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when I was in graduating from business
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school in 1992 the two premier jobs that
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everyone wanted to go uh yet companies
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were Intel and Dell which is get kind of
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marks the age and apple was a shitty
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company that might not come back it had
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kind of lost the script and everyone
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said it was underpowered and overpriced
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but everyone wanted to go to the best
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company in terms of reputation for
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growing management and had just kept
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killing it in terms of the stock price
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was Intel yep remember and and another
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thing these these CEOs need to stop
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tweeting the CEO Pat Uh Ginger posted a
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quote from the Bible on Twitter open
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quote let your eyes look straight ahead
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fix your gaze directly before you give
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careful thought to the paths for your
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feet and be steadfast in all your ways
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Proverbs
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42526 here's another proverb Pat what
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the [ __ ] are you going to do to save
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shareholder value here uh said said the
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Jesus of all markets inquiring to CEOs
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who are doing stupid [ __ ] like putting
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Proverbs out on anyways I would agree I
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was just thinking this Jamie Diamond did
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another U I was like sit down Jamie
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Diamond just run your bank stop
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pontificating at us in your arrogant
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fashion but anyway go ahead sorry well
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there's a there's a difference
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between no serious his opinion was
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called the next president must restore
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our faith in America we got plenty of
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Faith Jamie Jesus sorry must restore our
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faith in America that's the thing we
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live in the first line is we live in a
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perilous time but go ahead wouldn't that
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be nice yeah okay fair that's hard to
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disagree with but what there's a huge I
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think opportunity for Tech CEOs not even
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techos CEOs to have very well
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orchestrated working with ir working
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with good production people to put out
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earnings releases or statements about
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their earnings out on YouTube I think
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it's powerful I think it's a means of
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meeting retail investors and it's
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signals Innovation but I'm almost at the
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point now where CEOs part of being a CEO
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is the follow a few of the following
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things one you don't talk about religion
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or politics you just give that up
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because no one because you're just going
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to alienate 50% of whoever right and
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we're not really interested in knowing
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about your views on Christianity or the
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president or or whatever it might be two
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you are not allowed to ever have sex
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with anyone at this organization doesn't
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matter if you fall in love doesn't
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matter if you're divorced doesn't matter
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if you've known each other when you're
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the CEO on a risk adjusted basis it
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means you make tens of millions of
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dollars which makes you sexy anywhere in
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the world take it off campus and then
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three I would have no social media from
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you it's just not worth it it's just not
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on a risk adjusted basis sure some
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people are good at it Tory bur was
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really good at it some CEOs are very You
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could argue Elon Musk has built a huge
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following on Twitter but the world does
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not need to know what the CEO of Intel
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is thinking at that moment it's just not
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a good idea right yeah well I agree with
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you I was I literally am so tired of
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reading like all of them like stop
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talking the you know and actually those
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that are causing danger like El SP
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tweeting these riots that are happening
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in Britain of this sad killing full of
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misinformation has caused all kinds of
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right-wingers to come out and attack
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Muslims and he was encouraging it it was
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oh just get sit down and do your jobs
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that's my so you feel okay about this
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Global selloff everyone's all like
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should fed's going to do an emergency
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cut that's what they think I I've well
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see I hate that because I mean a couple
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things one look panicky looks panicky
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right doesn't it okay but but my
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generation has convinced Louie and
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Alex's generation and the generation of
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people who mostly work with me the
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average age of Prof G or I would say the
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median is 26 the average is probably 32
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because me and my me me and Katherine
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who run the company are both really
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[ __ ] old but the median the number of
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almost 12 of our 14 employees are under
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the age of 30 and what my generation has
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managed to do is convince them of a myth
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and that is that market highs and strong
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markets are a good thing and that it's
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worth mortgaging their f future in the
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form of debt and artificially suppressed
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interest rates to keep the markets high
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and they're not the markets touching
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all-time Highs are good for Caris
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swisser and Scott Galloway who already
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own real estate and already already own
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stocks because there's two phases in
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your life there's the investment phase
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where hopefully you've established
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professional currency you are spending
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less than you're making and you are
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investing that money there's the
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harvesting phase to a certain extent you
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and I are still making good money but
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we're kind of harvesting we're slowing
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down we have nice Lifestyles we want to
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give money away we want to take care of
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our kids we want to do nice things right
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we want to start spending money you want
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the Harve the Harvesters my generation
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wants markets at all-time Highs but what
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the youth don't recognize or that we've
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tried to evangelize this total [ __ ]
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myth is that they should have Market
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highs no when you're investing you want
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the markets to crash the reason I am
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wealthy I'm talented I've started
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companies I but but the reason I'm
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really really wealthy is that in 2008 we
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let the markets crash and you could buy
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Apple Netflix and Amazon for about 8 to
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12 bucks a share Netflix closed at $640
00:08:39
a share so what will my generation do my
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generation will Panic if there's
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anything resembling a notion that my
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generation gets to be less wealthy and
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see my stocks and real estate go down so
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we will mortgage their [ __ ] future by
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issuing more debt and creating stimulus
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and pretending that it's good for
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everybody you should let the markets
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fall such that young people can take
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advantage of what is a natural part in a
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capitalist cycle churn disruption so
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they can have their shot at buying real
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estate at buying stocks at a reasonable
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price but instead you're already hear
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the newspapers the newspapers are
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freaking out you're already hearing this
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[ __ ] Narrative of oh we've got a
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we've got the government needs to
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intervene with stimulus or bring down
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interest rates no we let the we need to
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let the markets do their job and the
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next generation of people needs to
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appreciate how wonderful capitalism is
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and the other thing for people to
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realize it's always said it all the
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times whenever there's a crash it's a
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good it's a good reason to sit tight
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right like sit tight so don't you don't
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need the money you don't need a yacht
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that's right don't panic here it's
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already the market has already like
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recovered most of its its gains here and
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but what I hate is the notion
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that if you're a 30 year-old producer of
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a podcast and you're finally making some
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good money and you can invest 20 grand a
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year in a stock you want the markets to
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crash because you're investing you're an
00:10:02
investing part of your life and this
00:10:05
[ __ ] that we need to pull out our
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our kids and grandkids credit card to
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keep us wealthy it is it's a virus that
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infects our society we need churn we
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need disruption anyways thank you for my
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Tad talk yeah y yeah it's true I AG I
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like I like your take that's a take
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we'll see where it goes if everyone
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loses all their money they're G to call
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you Scott anyway um we'll see what
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happens
