China is f**king us

We're six days away, six days away from

the Federal Reserve likely cutting. And

yeah, my coffee is empty, so I'm pissed.

But let's keep it simple. Today, we've

got China eating our lunch. We got

Morgan Stanley panicking about AI data

centers. We've got the Mom Domy effect

actually having the inverse effect,

which who could have predicted that? And

we've got retail buying pretty much

every stock except for one which we'll

reveal in this. And then of course which

I still have to make a separate video on

the alpha report. Shout out to all the

course members. We smashed it on a

really good fundamental analysis three

uh 3 days ago with the stock now up over

o over probably somewhere around 24% uh

in just the last 3 days which is insane.

uh also bought a bunch of it. But

anyway, so I'm a little biased, but

anyway, let's get into the topic for

today. So, first uh I want to start with

Morgan Stanley. Morgan Stanley is

considering offloading some of its data

center exposure. Now, this has been done

already by some companies like Croup and

JP Morgan, so maybe it's not the biggest

of deals, but there are these fancy

things called risk transfer arrangements

to keep these bank capital ratios in

line. And they're basically trying to

get a lot of this junk bond lending

they're doing to these data centers off

their plates. And this is aligning at

the same time with sort of China eating

our lunch. Because in America, what

we're throwing money at right now are

big data centers. And John Thornhill

suggests we could be throwing money at

the worst possible thing. China is

throwing money at open-source models and

so is Mistral. Mistral, which isn't even

mentioned. Well, actually, I think they

are Mistral. Nope, they're not even

mentioned in this article. Mistral is

the European Union's version of Deep

Seek in China. Uh, and they're expanding

their open-source models. Uh they just

announced new flagship models called the

Mistral Large 3 and a smaller uh suite

of Minist 3 models optimized for edge

computing applications for drones and

and whatever ondevice AI. Uh and this is

in real contrast to all of the money

that's going into these massive data

center projects mostly for proprietary

LLMs at companies like OpenAI or Google.

And so people are wondering why are we

throwing so much money at basically

duplicating all of these proprietary

models? Maybe we should be throwing

money at open-source models and then we

could consolidate these data centers and

stop throwing so much money into all of

them. My long-term belief is that LLMs

are going to be no different from

dictionaries. Everybody's going to have

an LLM. They're all going to be the

same. And it's not LLMs that you want to

play when it comes to AI because those

are all going to be commoditized. I

think you want the downstream service

companies that are actually providing

real net worth booths to the companies

that are using the product. And I'm not

talking about Bill Gates's daughter's

startup apparently, you know, cuz she

started her startup in a dorm room. You

know, humble beginnings here. Humble

beginnings. Bill Gates's daughter

starting a an AI search startup to go

find you deals for crap that you want to

shop with Haley Bieber, Chris Jenner,

Cheryl Sanberg from Meta, Sarah from

Spanx, you know, very humble beginnings

here, but not talking about that kind of

AI, talking about businesses that

actually make money for their customers.

I mean, I frankly think Palanteer is a

perfect example of that, but there are a

lot of companies that do this. And so,

picking the right winners in that space,

that's where I think the biggest

opportunities are. you know whether

you're looking at you know some people

are really into Salesforce some people

are into snow some people are into path

you kind of have to evaluate where that

money is but I think that's a much

better direction than you know caring

what Sam Alman is up to because I think

Sam Alman honestly he is like kind of a

gang guy for billionaires that I tweeted

about this yesterday but I think that

billionaires are having like this gang

warfare and instead of like shooting

each other or fighting over drugs. What

they're actually doing is they're just

trying to make each other look bad. Like

Sam Alman is now trying to explore a

competitor for SpaceX. And it looks like

so far while talks ramped up as of the

fall, they kind of fizzled since then.

So it's probably not going anywhere. But

it shows the pettiness of someone like

Sam Alman. And it makes you wonder if

Sam Alman is trying to fight Elon on

SpaceX. is he so distracted that that's

why GPT is sort of falling behind Gemini

now and Sam Alman is literally the face

of this $1.4 4 trillion. We want to blow

on more data centers, which is probably

just misallocated money while China is

literally eating our lunch. I mean, look

at this. Out of 74 high impact

technology uh uh sectors, China is

leading us on 66. We lead in eight.

Okay? So, we get eight, China gets 66.

Part of that, in my opinion, is because

of sort of the Trumpian uh method right

now of let's just let all the AI tech

bros guide policy in the White House.

And so you get shills like David Sachs

who prop up their own startups in the

White House basically centrally planning

policy. And ironically, we are way

concentrating risk at data centers

that's probably going to lead to a

really nasty burst in data centers and

LLMs. That doesn't make me bearish AI.

I'm actually really bullish AI, not just

because that's also what my startup

does, but that's providing, you know,

real net worth to people. Uh, but you

know, companies like Palanteer, although

their valuation is way too high right

now. Those are the kinds of AI that I

really like. Now, this though is a red

flag. You know, Oracle CDS's, while

they've cooled to about 126 in the last

2 days, we just hit an all-time high on

Oracle CDS's. And I think part of it has

to do with what's going on with

companies like Morgan Stanley going, "We

need to bail out and we need to reduce

our exposure to these data centers."

It's exactly why I like Meta. I think

Meta is not only going to be a recipient

of LLM trying to advertise when they

compete with each other. But, you know,

Meta is brilliant for moving their data

center debt to Blue Owl. Let private

equity hold it. But all of that is a

risk factor somewhere because if Sam

Alman blows up, he's going to take a

hund $1.4 trillion dollar of capex plans

with him. It's going to take AMD down

with him. Lisa sues AMD sales

projections are in part based on their

belief that they are going to pump chips

to OpenAI in Q3 of next year after the

Nvidia check comes in. Yeah, I said that

right. The Nvidia check is supposed to

clear Q2

of 2026 at OpenAI. Then Open AAI wants

to buy AMD chips starting in Q3. So if

Sambin goes, the whole cycle falls,

right? We we know that's a big risk

factor. And it's interesting seeing

CDS's continue to rise as of two days

ago. And now Morgan Stanley wanting to

dump out. Now, what's also fascinating

is, no, not Mindy Smiley. I have no idea

why I have this blonde up on my screen

here anymore, but that we are going to

get this 87% chance of a cut in 6 days.

We expect to get this cut. We're going

to get this cut. I actually don't think

it's going to be that hawkish anymore of

a cut. And it's one of the reasons why

I've been relatively bullish since

November 18th. I made a video on

November 18th called buy. And I talked

about how most of the bad catalysts were

behind us. In the short term, I think

we're bullish going through the Fed

meeting. And that bullishness might

actually continue through the Fed

meeting because of those ADP numbers

that were weak. Unemployment claims are

very volatile. We got seasonal

adjustments. I'm not really worried

about that. But something else that's

bullish, frankly, is you should be

looking at the Challenger report. The

Challenger report, yes, is bad in the

fact that it's some of the worst numbers

we've seen for November since 2022 in

2008, but we've collapsed in job cut

numbers from the October really bad

numbers. Like the October numbers were

so bad, Donald Trump doesn't even want

you to have the October job numbers.

[laughter]

I think there's a lot of truth to that,

by the way. Some of that is jade. Some

of like I'd call it probably 50% jade,

50% truth on that one. [laughter] My

opinion. But anyway, uh this challenger

report this morning on job cuts, it

wasn't that bad. Well, you know, we came

down off this crazy October peak and

we're kind of in like a normal range, a

more normalized range for job cuts here.

So, the challenger report was bullish.

ISM and PMIs were bullish. Uh the the

earnings that we got from some AI plays

yesterday were fantastic and there are

some real gems hidden over there. And JP

Morgan tells us basically retail is

buying. 75% of retail investments at JP

Morgan are going into ETFs. A lot of

people are rushing into gold, you know,

gold ETFs. Flows into Tesla and Nvidia

continue, which I think there's a risk

of those. And ironically, you're seeing

outflows at Apple, which I actually like

Apple. I I I don't have exposure to

Apple, so I'm not like talking my book

here. I actually think Meta is one of

the cheapest of the Mag 7s. But uh but

yeah, retail investors are consistent

sellers of Apple throughout the year,

whereas they're consistent buyers of

basically Tesla and uh you know,

certainly Google and Nvidia. That's at

least based on JP Morgan's retail radar,

which is very interesting. But uh are

there dislocations in this market? Yeah.

And I actually think the way to look at

this right now is you kind of have to go

deal hunting. you go look and say,

"Okay, well, where are we able to buy

things at discounted valuations?" Like,

you know, when I look at uh this this

Bill Gates daughter raising $30 billion

at 180 bill, sorry, $30 million at $180

million valuation for, you know, a a

Google Chrome extension. I want to

vomit. I'm like, this is like this is

nepotism at its finest. You know, I'd

rather talk about the irony of what's

going on in New York, which we'll touch

on really quickly. But it makes me think

I need to get a new valuation done for

House Act because I think our valuation

is gonna be a lot higher, but I think I

probably should go uh I should buy more

of our more house hack before I do that.

But anyway, not a solicitation to

invest. Read the offering disclosures at

houseack.com. But anyway, look at this.

Not an irony or not a surprise at all.

Manhattan luxury apartment market surges

after mom domin. What did I tell you

before this guy won? Before this guy

won, I made videos every single time and

I said every time a Democrat wins, they

suck at expanding supply so much that

the smart money ends up buying because

they know the Democrats are going to

constrict supply even more. And so with

little new supply in prime

neighborhoods, I mean obviously he

hasn't actually taken office yet. It's

not like he's been able to build supply,

but usually like wealthy people know

this. When Democrats win, supply gets

constrained for housing. And the best

move is actually to buy and not to sell.

So we're looking at, you know, what does

$4 million get you? Because that's what

the number was. Record a surge in $4

million purchases. Here's one Wall

Street where you could buy a two-bedroom

apartment on Wall Street, which is a

great address. One Wall Street. I mean,

this is a fantastic address. Yeah. I

mean, I actually I mean, this is pretty

modern, contemporary. I'd call this

contemporary design. This is not your

most like timeless because it's too

contemporary. It's too in right now like

all these designs in the cabinets or

whatever. But, you know, it's nice. It's

not for everyone. It's a little cold.

But, uh, you know, it's got ma

appliances. Dude, those are a pain in

the ass to repair. Uh but anyway, uh

like th this is just an example of what

you get for $4 million. The sales of

these things are surging right now after

Madam one. Not a surprise because again,

usually you don't bill build under a

Democrat, you know. Then you got Pete

Hegsaf who's in trouble tr trouble for

using Signal. This is old news. He's a

dumbass for using signal. He doesn't he

wouldn't know compliance if it bit him

on the ass. Then you've got Emanuel

Macron who according to Candace Owens is

married to a man in disguise. But

anyway, Emanuel Macccron is talking to

Xiinping basically saying Trump is

effing up Europeans's relationship with

uh China and it's all Trump's fault.

Whatever. Uh and yeah, that pretty much

covers what the hell is going on today.

So, uh you know, broadly, shout out to

everybody in the uh Oh, damn, it's up

even more right now. Shout out to

everybody in the course member liveream.

We did a really good If you're if you

haven't looked yet, look at our course

member analysis on Monday in the stock

analysis tab. We did a phenomenal

analysis, a fundamental analysis. We're

like, this is really bullish. Every

signal is pointing to bullish on this.

It just smashed on earnings. It's up

like 25% since then. And I think if this

catches the momentum wave, it's going to

it's going to skyrocket even more. I

hope it goes down so I could buy more.

That's all. That's all. I just bought

like $70,000 of the damn thing. But

anyway, that's it. That's it. That's all

I got for us today. Okay. So, cheers. I

got to go get some more coffee because

obviously I'm running low. Uh, and then

I got to go to an open house because

it's broker tour day and there's a fixer

upper on broker tour a few minutes away

and you know what happens. Sniffing. I

sniff the blood. In fact, it even came

up in our deal finder. Uh, our net worth

sniping Dealffinder brought this. Uh, I

don't want to give it away, but um,

here's just, I guess, a quick screeny of

of part of it. Um, yeah, I'll just zoom

in enough so it doesn't give it away,

but our deal finder even brought it up.

Uh, and uh, you know, this is just a a

quick little backend. Super zoomed in.

You can kind of see the funky kitchen in

there. the reinvest net worth boosting

score and uh you know soon we'll

actually be doing the net worth calcs as

well that's coming in 2026. [music]

So we got some really exciting things

going on here uh for for real AI not

some stupid dumb browser extension

that's going to go shop for clothing for

you. This shop's net worth for you

sniping net worth. [laughter]

Uh anyway, you can read about that over

at househack.com. I got [music] to go. I

need more coffee. I'll see youall on the

next one. Goodbye.

>> Why not advertise these things that you

told us here? I feel like nobody else

knows about this.

>> We'll we'll try a little advertising and

see how it goes.

>> Congratulations, man. You have done so

much. People love you. People look up to

you.

>> Kevin Praat there, financial analyst and

YouTuber. [music] Meet Kevin. Always

great to get your take.