HOLY SMOKES

Well, it looks like the Federal Reserve

is about to start printing money because

institutions are now talking about not

FOMO, not SOMO, but rather to. Yes,

markets are now talking about temporary

open market operations coming and that a

tommo like facility to support money

markets and reserves is coming to make

sure we don't have a liquidity crisis in

markets. Now, not only do we need to

talk about why that's bullish, but we

got to talk about expectations for the

rate cut tomorrow and what JPL might

say, as well as look at the summary of

economic projections. Because the last

time we looked at the summary of

economic projections, I said it was

bullish that we would break through 600

on the cues. And you can actually look

back at my sheet in green is what we

wrote down last time. Last time we

looked at this, we said this is dovish.

It is bullish rates down. It's bullish

cues going through 600. And folks,

that's exactly what happened. Now, we're

going to talk about what we expect to

happen tomorrow. But let's first get

started with why did this skyrocket? Why

all of a sudden did we see Bitcoin

skyrocket right at 7 a.m.? Why did we

see Circle go full circle and start

rebounding off the floor? Why are we

seeing SIM come back to 64? Why are we

seeing Tesla rocket off$433.99?

Why are you seeing coreweave reject but

actually get to and then reject within

three cents of my line? Mind you, all of

these all of these right here were those

well with the exception of Bitcoin. We

just watched this one. But all of these

that I just mentioned, Circle, SAM,

Tesla, Cororewave, all mentioned in our

alpha report this morning. You can use

coupon code Santa reinvest at meet.com

if you want. But we got to answer why.

So why did this happen? This bounced

right at 7 a.m. We covered it in our

course live stream this morning.

remember you get lifetime access uh was

because of Jolt's data actually really

impressing. Usually this Jolts data

comes in pretty damn close to

expectations. Not only did today's

numbers not come in close to

expectations, but they smashed. They

absolutely smashed. Uh it was really

good. The the numbers were so bullish

that not only did we compare them to the

ADP numbers, but we updated the bare

bull scale to a 56.

The numbers are bullish. Uh we updated

the bear bull scale because of jolts and

the weekly ADP data which really didn't

get a lot of news. JP Morgan says

consumer is still healthy. We'll see.

Well, hopefully the consumer can step up

and we can start getting job growth

again like what we saw in Canada.

Hopefully that's not all part-time. But

you got to think about this with the ADP

report. What did we get with ADP? Weekly

ADP which got like no attention this

morning suggested that we are growing at

4750 jobs per week. Now, that initially,

you might be like, Kevin, that's

poultry. That's terrible. That sounds

like nothing. But it works out to about

19,000 per month. A little bit more

because week versus month, a little bit

more than that. So, I'll call it about

20,000 per month. And as long as we're

positive over zero, I think we're above

the break even rate of employment. Now,

I'm not saying there aren't problems in

the labor market. They're definitely we

got to pay attention to these. That's

why we're we're just slightly above

mid-range. Well, let's put it this way.

I'm adding stocks to my top 10 list of

stocks to buy. We got a full list of top

10 socks out. Uh we just added number 10

this morning. Uh that's doing well and

so is uh our number nine from last week.

These are great. Uh but you can see

those all at me.com in the alpha report.

But anyway, this 20,000 jobs roughly on

a monthly. If break evens around 0 to

20k, we're basically at break even,

which means the unemployment rate should

stay stable as long as the participation

rate doesn't skyrocket. Now, if a lot of

people go back to work, the

participation rate could skyrocket or we

get more layoffs. Of course, then we're

going to have problems and we're going

to have poopy dupies. That's why you

want to be cautious. And it's exactly

why I think we're now not just talking

FOMO, fear of missing out, or somo,

sadness of missing out, but that the Fed

is going to turn on the tomo money

printer. Yeah, we'll talk about that.

Now, why would the Fed turn on the money

printer for tomo? And how does that

work? Well, in part, I believe it's

because I think when we get the summary

of economic projections tomorrow, I

think we're going to see a bump in the

real GDP projections for 2026. I think

they'll bump that up. And so, I'll go

ahead and make my prediction right here.

So, my prediction, and I'll make a note

that uh green was September, red is 129.

Okay. So, what do we have here? 129.

There we go. Okay. So, my prediction is

that they'll actually write this up to

20 tomorrow. So, I think this is going

to go to two. I think this will actually

go to 46 for the end of next year. And

that's going to be in anticipation of

the labor force participation rate going

up due to participation rising.

Uh, and then I also think we'll have a

bump on inflation and I think that

they're going to take this PCE level.

Maybe not this number. This might go

like 27, but I actually think core has

the potential of indicating I I'll go 27

as well. I think a little bump on both

of these. I core might go 28, but I'll

go 27 here. Uh, we also, you know,

previously we anticipated five cuts by

the end of 2027. If you included

September, that would be accurate. But I

actually think that's been revised more

to about four cuts. That would be

October, December, and two in 2025.

That's sort of the soft landing

expectation right now for the summary of

economic projections. Uh this would be

the um you know, four rate cuts uh of uh

a de two in 2025 equals mostly a soft

landing play.

The issues would be twofold. uh labor

force participation rising or layoffs

rising. Uh not seeing that right now. Uh

which is good. Again, the ADP numbers

this morning were great and the Jules

numbers, the fact that we saw job

openings up, great. Now, job quits were

down. So, people are nervous about the

job market, but layoffs

not enough to really cause a big shakeup

yet. Hopefully, our comboy stays that

way. and job openings rising was a

really bullish surprise. And so it's

holding that 10-year yield a little bit

elevated, which is contributing a little

bit to funding stress. Now remember, the

Federal Reserve stopped QT. QT is over,

right? QT ended on December 1st. It's

been about 9 days. So, not only did

quantity tightening end, and we see this

repo stress hasn't shown up since

December 2nd, which could just be

residual overnight from December 1st,

but we have not seen a single bar chart

here show up on the repo facility,

suggesting maybe ending quantitative

tightening was a good thing. But now

we're talking to Tommo. So, what the

hell is too?

FOMO. SOMO.

No. Sounds like that comedian, you know,

who's like, "So, if C O M B is comb,

what's B O M B? Boom. No, bomb."

I I love those grammar things. I think

they're hilarious.

>> No.

>> But anyway, uh if you go to this tommo,

uh in honor of him, who's now dead, the

guy, the comedian. But anyway, uh not

FOMO, not SOMO, but Tommo. These are

temporary open market operations. Now,

this is not technically quantitative

easy, okay? It's technically QE light or

or QE.

QE temporary, right? It's sort of like

overnight QE is the way to think about

it. Basically, the Fed says, "Yo, we're

going to print money to support

overnight borrowing, but we're going to

pay off that borrowing right away." And

and you know, the printing, we're going

to remove the printing right away. So,

we're gonna It's kind of like, all

right, basic human analogy. We ran the

vacuum cleaner like Luigi from Luigi's

Mansion,

sucked up as much money as we could,

okay? Turned off the vacuum cleaner. All

right. And now we're like, "All right,

boys. We're putting the vacuum away."

And then there's a little bit of private

credit stress. And so, what are they

doing? They're just sort of like

like they're revving the vacuum on and

off like really quickly like

uh that's kind of QE light. So it's like

but you also have the blower setting so

it flips between vacuum and blower. So

it's LIKE BLOW VACUUM BLOW VACUUM. It's

weird. I don't know if the analogy is

any good, but the bottom line of it is

it's designed to support the liquidity

challenges that you're seeing at banks,

aka private credit, because we know

private credit is basically sucking on

the titty of the banks. And if private

credit is sucking on the banks, and the

banks need liquidity. When the banks run

out of liquidity, private credit runs

out of liquidity. That's not good. But

if the banks get overnight liquidity,

private credit holds up and everything's

Gucci, so you can actually grow GDP.

That's the goal. Now, Morgan Stanley is

really bullish on robots. Okay, I'm just

going to throw this call in here. Okay,

look at this. Look at this. You ready

for this? China humanoid robotic survey.

We believe AI enabled robotics will help

usher in a third industrial revolution.

Well, like imagine now to plus robotic

revolution. And if you get the soft

landing, uh bullish catalyst, anyone?

>> Bullish catalyst.

>> Uh yeah. Uh, how about Santa rally or

coupon code Santa reinvest lifetime

access to membership. No, really, it's

actually incredible as long as you know

we don't fall off a cliff with the labor

market. But look at this. Uh, our GDP is

probably about $25 trillion. And they're

saying that AI enabled robots alone

could generate $25 trillion of GDP

uh alone

uh from robots. So, it's basically like

creating another America. It It's

literally like doubling today's America.

It's like doubling America 2025. And

think about how big of the American

economy, how big the American economy

is. You're doubling them. Like my

venture capital company, we invested in

uh Appronic, the humanoid robotics play.

Uh I personally invested in them when

they were like really risky and about to

go bankrupt and almost out of money at

like a $400 million valuation. Uh then

when they stabilized we invested them at

like a 17 valuation. At that point we

had our VC we invested in them there and

now the information is reporting that

they're worth somewhere around 5 billion

and I wouldn't be surprised if they keep

going because it's sort of like a

discount Tesla and given Tesla's

valuation a very discount Tesla. Uh, and

you know, there's talk that that

Appronic actually helped set up Tesla's

robotics, but you know, who knows? That

could be just a rumor mill. Uh, so

anyway, it is really interesting this

robotics play. And so this broadly is

long-term bullish, but the problem is I

do agree. I think China is going to eat

our lunch on the manufacturing. But

that's okay because even if China eats

our lunch on manufacturing, who's going

to buy the robots, right? China might

eat our lunch making the robots, but who

will buy the robots?

Americans. Americans will buy the

robots. It'll make us more productive.

Makes Americans more productive, right?

So, so we benefit from the productivity

benefits of the robots. Uh, so I'm I'm

very excited about that and obviously so

is Morgan sailing. But anyway, I mean

going back to Tommo over here, uh the

Federal Reserve tomorrow, we broadly

expect them to cut. Uh this data this

morning could be enough to keep Powell a

little bit hawkish. So, you know, expect

a little bit of volatility, but uh but

really, I mean, if they announced any

kind of Tommo facility is just pure

bullish. And so I think this talk about

Tommo along with like soft landing style

data is what really led to this rocket

ship in uh in in like Bitcoin and and

asset prices, you know, even Tesla. I

mean, I think the Morgan Stanley piece

by uh uh on robotics was was huge uh for

this. So it's absolutely phenomenal.

Uh and uh and and and Coreweave, you

know, coming back to its 90 line is is

huge. Although the one thing that's

weird today is that Nvidia, you know,

while it gained yesterday on news about

selling to China, if you look, you're

within about a buck 50 of where you were

before the China news, which kind of

suggests that there's, and I shouldn't

say this, but I'm going to say it. We

believe in you made it to the end of

this segment so I'll I'll reveal it but

we believe that the big PP place

>> big PP

>> right now this is my sort of protake if

you will no guarantees but I think you

know the noobs right now are saying hey

Kevin like it's you know we still got to

be in all the chips got to be on all

chips that may be true like Nvidia's

valuation is cheap okay they they're

like a 1.6 six peg. But I think the pro

is saying where's the money being made

from AI and it's in part Google, it's in

part AI software companies, but you have

to pick the good ones. And so I think

we're transitioning from from chips to

the AI software. And I think that's one

of the reasons Apple is booming so much,

which is ironic because while Apple's

got the software mode, they have

basically no AI. Now to some extent,

they're a little bit insulated from the

AI spend. And people believe this is

this is really a chart of the hope that

Apple will finally adopt good AI, right?

But I think that's the next phase of um

of where we sit now. I obviously also

feel so optimistic about uh about this.

I don't want a recession because I

honestly think as long as we don't have

a recession, we can hopefully knock on

wood IPO our product faster, right? We

got our, you know, invested house act.

Little disclaimer there. There's risk

with every investment, but but I'm of

the impression we we look at our app and

our software team and we're like, dude,

the things that we can do, not only once

we get our reinvest AI app out this

month,

uh, and y'all start using it and we add

more features, but beyond that, we move

from

into new real estate AI verticals. Uh,

just our road map is crazy in terms of

some of the uh, the plans that we have.

So, we're really really excited and uh

and so on in a biased manner, I don't

want a recession. Uh however, I'm aware

of the risks and being conservative uh

because I also uh I you know, you should

always be looking at investing as a

long-term outlook, right? Look at it as,

hey, how can I invest for the next 10 to

50 years for how fact? Those are my

50-year plays. My top 10 stocks to buy

list, those are my 10-year plays. Those

are stocks I'm looking at going like, I

want to I want to hold these for the

next 10 years. and how can I get more

exposure to them? So, pretty excited.

But this is good number. These are good

numbers. We'll talk Fed tomorrow. Uh

we'll be covering it live. And uh

overall, I got to say

>> bullish catalyst.

>> Yeah. So, there you have it.

>> Kevin's somebody we consider Kevin is

fantastic, too.

>> Kevin is very talented, but I don't know

it's going to be him, but he's a very

talented guy.

>> I think that Kevin's a brilliant guy,

and I think that we' we'd we'd all be

very lucky to have him. 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. Meet Kevin. Always great to

get your take.