You Bought Gold for Protection But Your 401k Owns the Same AI Trade Twice | Felix Prehn

Welcome back. I'm Jeremy Staffron. Well, look at gold. It's had five weeks up in a row. At this pace, it's heading for its best month since 1999. Now, meanwhile, the 30-year Treasury yield touched almost a 20-year high last week, and federal debt crossed $40 trillion. And the Treasury's about to double the size of its buybacks of long-dated bonds. So Wall Street has finally started talking about all of this. Ray Dalio says gold could be worth as much as 15% of a portfolio. But look at where the money actually sits here. Now, a third of everything American households own is in stocks. That's the highest share ever recorded. And the companies that dig gold out of the ground are still trading below where they were back in February. So the talk has changed. The money hasn't really, which means that this is either a lot earlier than it feels, or a lot of people are about to be wrong twice. Stick with us. All right, joining me now is Felix Prenn. He was an investment banker. He left the industry, still an insider. And these days, he teaches retail investors. Felix, good to have you on Kidco News. Thanks for making the time. Thank you, Jeremy. Very excited to be here with you. Yeah, me too. Very interesting week. Obviously, a lot of news flow happening. We're waiting on Friday. I'm looking at the silver and gold prices just sitting here today. I wanted to start with the kind of thing I can't square. Now, our audience has been in this a long time, and most of them will tell you they got laughed at for most of it. Now, the commentary's kind of caught up here. Dalio's out there talking about 15%, but the money actually hasn't moved. Household allocations to stock is at a record, and the miners are still about 11% below where they traded back in February. If the money had moved, that wouldn't be true, would it? I think you're starting to see the money move. That gold chart you put up there, to me, I always see that classic pattern that we see as traders, which I call the heartbeat. It's that sideways kind of heartbeat. Then you broke out above that at about 4,200, and that was it's the classic buy signal for your hedge fund or your trader who understands what that means. So we're seeing that. Now, miners are always an interesting space. They're basically inherently leveraged compared to gold or silver, because they're sitting on all that stuff underground, and if the price of all the stuff underground goes up, the valuations go up. It's a great thing for traders. I love trading miners. We made a lot of money on it last year. But it is also quite a dangerous thing to be in if you don't really understand where you should sell, because you don't hold a miner forever. You could arguably hold gold or even silver forever. So it's a very different beast. But yeah, there is still a differential there, I think, between where the prices and where the miners are priced. But some of that will also always just be like, a bit of risk management on part of the traders of like, well, maybe gold and silver will go down a little bit again. They're not always wanting to price a perfect rally. Yeah, yeah. And I mean, you're kind of one of the very few people who can answer this next bit. I mean, you see where retail money actually does, not what it says. Are ordinary investors buying gold, or are they just watching it go up and kind of talking about it here? My feeling is that they got scared from what happened at the beginning of the year. We had that beautiful rally coming out of last summer, going into the beginning of the year, and it stopped when the war in Iran started. And people think that's weird. Shouldn't gold go up when you have a war? And no, actually, it shouldn't. It doesn't. When you have a new war, what happens every time is oil prices go up. Oil prices put inflation up. Inflation, therefore, puts the interest on US government bonds up, which I'm sure we're going to talk about today, too. And therefore, institutional money will move out of gold and silver, which pays no interest, into something that's going to pay them 5-point-something percent, which is the US government debt. And it apparently has no risk. So that happens every time. So when a new war starts, pretty much every single time, you see that initial drop in metals because you see that inflation spike in interest rates. So it's a completely normal cycle that we're actually seeing. But it's scared people because they bought in January and they're underwater by, I don't know, 20, 30 percent. So they're waiting to go back to zero. And it's unfortunately where we are as retail investors because we've never been taught how this actually works. And let me kind of make that concrete. I mean, you did there. I mean, we're talking about that January high because it's what our audience kind of wants to know. I mean, somebody's held that physical metal since well before January. I mean, they watched it fall for months. They're finally back in front. Do they add here or take something off the table? I think it really depends on who you are and it depends on your time horizon. So there are two types of people. There is someone who's 40 years old, has a good income stream, and is just sucking up gold and doesn't need to touch it or sell it or live off it. In which case, if your horizon is 10 or 20 years, personally, I'm bullish on these metals. Doesn't mean you should be. So what I'm saying, and I mean this very seriously, it depends on your situation. If you are retired and you haven't got an income stream and you need to live off this, you need to have a very, very different setup. And you should definitely not be 100% in gold or silver, right? Like I always say, I don't have a conviction on anything. I always say a conviction is a bit like an STD. It's not something you actually want to have. The reason the skilled money holds gold or silver is because it protects us against inflation. Like I always say, gold doesn't go up, the dollar goes down. So it protects us, but it doesn't actually make us wealthy. Right. I mean, look what happened this morning. We'll show a chart. I mean, gold spiked to this new high for this move. It got hit $90 on the open and then bought up basically the whole thing back inside of a few hours. After five straight weeks up, is that a market getting tired or one that can't be shaken out? Okay. So the way you can tell, it's better than, I can give you my opinion, it's valid for about five minutes, right? What I would say, look on a stock chart of gold or silver futures. And at the bottom, you see the volume, which is how many futures are traded that day. If you're going up and the volume is going up, you can see there is strength in the rally. If you are going up and the volume is going down, you can see there are fewer and fewer buyers, right? And that's typically then you enter that sideways thing. And then if you start going down and the volume goes up, you know, you're in trouble. And that's what skilled money looks at. So remember those three phases and you'll be able to answer for yourself every time. I'm obviously not talking to you, Jerry, but to your viewers. I hear you. I hear you. And, you know, I would be remiss to say, I mean, the miners, they have moved too with this metals price, but on the 12th of August, GDX closed just under $91. That's obviously for the investment community, that's the big mining ETF, the one most people use if they want kind of whole sector in one line rather than picking companies. Now you said back then it needed about a dollar before you'd buy. It's $103 in change now, roughly 14% in two weeks. Did that complete the setup for you? Yeah, I think we broke out of that, what I call that sort of heartbeat pattern thing. And then we spike up and we see a bit of institutional money pouring into it. And that's always as a trader, that setup where you might want to click that buy button. So yeah, for sure. Now, I guess your next question might be, are we now too late? And that's always a difficult one to answer. Like I tend to always be a little bit late. Like I don't want to be the first one because I like to look for the verification by the rest of the market that they also paid attention. So there is no harm in being a little bit late. So on a technical answer, I would always look at like, how far are we away from say the 50-day moving average line, which is one line that most of the traders watch. And you don't want to chase stuff when it's too far away from it, because the risk is greater than the potential reward. And it's also fine to miss out on rallies because there'll be plenty more in our lifetime. Yeah. I mean, the price cleared that level that you were watching. Did that make you kind of more bullish on this or is something still missing? No, no, for sure. Like I think we've turned a bullish corner again here. I think the very apparent US government money printing being in full swing again, you know, it's going to be the biggest money printing we've seen since COVID. What does that do? It prints money. It causes inflation. Therefore, people buy gold. Yeah. I mean, I'll tell you, the businesses are certainly earning it. Newmont just posted a record $2.2 billion in free cash flow for the quarter. Agnico did a bit over $1.3 billion. I mean, free cash flow being obviously what's left after they've run the business and spent on the mine. So here's the part that matters if you own these companies. I mean, Newmont did a record $2.2 billion in a single quarter. If that were your money, I mean, where does the first dollar go? You mean of Newmont's money? Yeah. Well, the thing is, they're going to reinvest some of it obviously into operations. But the cycle for putting a mine out is very long, right? It's like 15 years plus. So all this cash now isn't going to increase supply. And that's, I think, why this gold and silver story in the miners has longer legs than most people think. It'll be cyclical. It'll be pretty volatile. But fundamentally, it just takes a really, really, really long period of time to get gold and silver mines up and running and stuff out of the ground because you need approval for frog and bird that lives in the vicinity and that sort of thing. So the fundamental story, I think, with gold is inflation. And the fundamental story with silver is that silver is actually an industrial metal with incredible demand behind it. And all the AI stuff couldn't be done without silver at present. So unless you see a real alternative to, say, silver, which will come about if silver goes to $200, like they're going to come up with something because it's going to make that very expensive for them. But it does give us that run. It's just, it isn't going to be a straight line. Yeah. Yeah. That February high. I mean, I've talked to a lot of miners. A lot of technology companies trying to look at something alternative haven't quite found it yet. I mean, to your point, silver has been lagging gold and it's still a long way off of its own high. Is that kind of telling you something about industrial demand or just the volatility people signed up for? And Felix, I mean, if you had to own one for the next five years, is it gold or silver? Okay. If you lock me into a specific, relatively short period, I would say gold because it is less volatile. But if you asked me what I thought had the higher chance of a higher return, it would be silver. But I'd want to have the option to sell it at some point. That would be my view of looking at it. So yeah, I think silver tends to lag gold prices. That's just what happens. And part of that story is also psychological, that a lot of people feel like they can't afford gold because if it's at $5,000 or something, even a coin gets very expensive. So they start buying the next metal and that's silver. That's often how it works. That's what we saw at the end of last year or the middle of last year. Gold, I think, went up first, silver followed, but much more violently so in a good way. Something, I mean, we've got to talk about is kind of what doesn't fit too. I mean, something doesn't add up and I'd like you read on it. I mean, the futures market is pricing better than even odds that the Fed raises rates in October. Higher rates, obviously, usually bad news for gold because you can earn more just sitting in cash instead. But it's going up anyway. So, I mean, we've heard probably why, but I'm curious to know what you think. Why is it overriding that? Well, I think fundamentally there is a disconnect between what the market thinks should happen and what politically is likely to happen. I think the Fed independence is very much in question at this point. I think most of us think that Walsh is not going to raise rates. He's probably going to hold them steady when he should raise them. And then at some point, he's going to look for a place where you can actually cut them because that's the playbook, right? That's what they need to do. They need to weaken the dollar. They need to deal with a debt and that's really the only way they can achieve it. So the market, I think, is looking at the money printing, the crazy debt intervention that we're seeing, the bailing out Japan intervention that we're seeing. None of these things happen in a healthy market, right? You don't wake up as a country and say, oh, let's bail out another country today if the market is running smoothly. So therefore, people move into the risk assets, which is hard assets that are actually scarce. And obviously, gold tends to be the top of that list. Yeah. We've got to talk about this, Felix. I mean, you're watching the news flow like me. There's the 9th of September. Obviously, the Treasury doubles the size of its buybacks of long-dated debt from $2 billion in operation to at least what they're talking about now is $4 billion. Now, for anyone who doesn't follow this closely, the government buys back its own longer date bonds and it's expected to fund that by issuing shorter ones instead. So it's taking long-term interest rates risk out of the market rather than putting new money into it. Whether that actually brings yields down is exactly what people are arguing about right now. I mean, you've called this the biggest money printing operation since COVID. Other guests that I've had on have. I mean, the Treasury says new issuance replaces whatever it buys, so nothing is being created. But Druckenmiller wrote in the journal yesterday that either of those is kind of true. He calls it price management run out of the Treasury rather than the Fed. So kind of help me pull those three apart. What's ordinary debt management? What's trying to move a price? And what, if anything, actually creates new money? Okay. Ordinary debt management is, say, you issued bonds to the government at like 10% interest rate, and now interest rates have come down to two, so you can refinance that debt more cheaply. That's a legitimate thing to do, right? You're taking debt out of the market. You're issuing new debt. It's going to save you money. Logical thing to do. They're not doing that. They're essentially running, I think a Ponzi scheme is a fair way of describing it, to be honest. They are selling a short-term IOU about a couple of months, and then they're taking that money and they're buying back the long-term IOU, which is the 10, 20, 30-year bond. But who's the buyer of the short-term IOU? It's not the market. It's the Fed. So it's money printing. It's just money printing, but they're not calling it quantitative easing or money printing. They're calling it, I think, liquidity easing or some weird phrase. And they're just trying to confuse us so we don't realize what's happening. That money is going into circulation, and it means there's going to be more money about, and it's going to be more money chasing assets. Asset prices will go up. Your salary will go down. Your cash will go down. It's the same playbook we saw since 71, since we went over the gold standard. It's the same playbook we saw after World War II. It isn't a new idea. It is the only way you deal with this crazy level of debt other than taxing people to death, which wouldn't work, or cutting spending, in which case you'd lose your job as a politician by tomorrow. So they're pumping money into the system, which is good for Wall Street. It's good for investors, and it's really, really bad for everybody else. Listen, the only pushback here is the government's always rolled debt. What crosses the kind of line here? Is it the shortening maturity, using new borrowing to service old obligations, or eventually requiring the Fed to become the buyer? When the Fed buys your debt, you're printing money. That's just the definition of it. So if they were selling this into the open market, it'd be a different story, but they're not. They're selling it to the Fed, so the Fed therefore prints the money. It's interesting to watch here, my friend. I'm not going to lie. Citadel Securities put the consequence even more buntly than anyone else. They said households may ultimately pay for policymakers not fixing the roof while the sun's shining. Is that where this ends up, on savers? Always. Look at the 1971 dollar. Today, it's worth a couple of cents. And why? It's just inflation. So inflation is something the government creates by printing money, and it's a hidden tax on ordinary people. We don't understand it. And that's why I love what you guys do, because you actually educate people, and you explain to them what it means. You need to be in assets, in good assets. If you're not, you will get poorer. It's like that stock. And most people won't hear the message, unfortunately, and will suffer as a result. Now, the thing I actually wanted to talk to you about here today, and it comes straight back to that gap we opened with. I mean, the reason that kind of money hasn't moved into gold is that it's already somewhere else. I mean, you track a composite of eight different valuation measures going back more than a century, price to earnings, price to book, the market's total value against the size of economy. Where does it say we are? Sort of la la land. We're basically at valuations. I mean, talking about the stock market, right? We're at valuations beyond anything we've seen, .com, 2008, 1929. But it doesn't mean the crash is coming tomorrow. I'm not one of those doomsayers. This can run for a fairly long period of time. But history says, at some point, there'll be a pretty hard correction. And it's just, I mean, we're spending $700 billion this year on AI data centers in the US. That seems like a fairly ridiculous number. And I mean, Elon Musk just said, we're going to run out of electricity. There won't be enough to power them. So these guys are all competing because they don't want to lose your Googles and your Metas and your Microsofts and so on. But ultimately, they're going to build too much, which is always what happens. And the technology is real, right? AI is real. It's incredible. If you use it, it's incredible. But the internet was also real. And the Nasdaq dropped 78%. I'm not saying it's ever going to happen, but it seems likely that we are going to see a pretty significant correction at some point, because we've just built too much, we spend too much, and the returns won't be quite where we wanted them to be. I got to ask you on concentration too, Felix. I mean, if somebody's got a 401k or a plain index fund, I mean, maybe they don't know. I mean, how much of that money is actually sitting in a So we look at thousands of people's portfolios because we teach people how to do this. My mentors do. Most people are about 60%, 70% AI exposure. The S&P is about 50%. So your 401k likely is about half AI. And then the danger is that you then go out and you buy AI stocks on top because you feel like you should have some exposure to Nvidia or whatever it is. So what I do is the opposite. I still own a lot of AI. It's about a third of my investments. But I'm actively buying railroads, shipping companies, really random stuff that is definitely not AI related. You've got to tell me more about what you're buying right now in that market. I mean, we've heard talks about people kind of going from metals over to some of the tech side, vice versa, obviously. Where are you? Where are you investing right now? For me, what I do is I sit down every Saturday. I do nothing Monday to Friday. And I look at what do I already own? And is there something out there that has the pattern that I was taught that looks like it's appealing where the money might move into it? And then I only look at the bits that I don't already own. So I own quite a bit of tech. I own some software companies and stuff like that. And they've done very well and very happy with it. So what am I adding? Last few weeks, I bought a railway. This is not financial advice. Guys, don't run out and buy this because someone's mentioning it on YouTube. NSC, for example, I bought, which is a railway. Why? No one's going to build a new railway in the US. It's like impossible. It's the greatest motor in the world, right? I just bought an Israeli shipping company called Zim. Fairly risky, one might argue. But again, it's shipping. Shipping rates are through the roof. It's a cash machine, a little bit like a miner, essentially. What else did I bought the last few weeks? I bought some apparel companies like Ralph Lauren, for example. That's pulled back a bit, hasn't done so well. But I'm looking at things that are not in the news, not talked about, not AI related. And that's what I've always done, by the way. If it's in the news and everyone's talking about it, it's very, very likely it's probably too late. And if you look down the road 10 years or 20 years, no one's going to care where you make your money from. You just want the freedom. I always say when there's a cab driver recognizing me for gold, it's run a little bit far. But here's what I keep turning over. I mean, somebody watching this hedged one pot of money very carefully. They bought physical metal because they didn't trust the system. And then the bigger pot, I mean, the retirement money may still be sitting fully exposed to the most expensive market you've ever measured. Have they protected themselves or have they protected the smaller half? I'm a fan of physical metal. Obviously, there is storage and security issues around it, but I'm a fan of it. And that's your insurance. It's like your car insurance, right? You can fall back on that and it's going to make you feel better and sleep better at night. If you're in the S&P 500, say, and you have a long time horizon, I think it's a good place to be if it's 10 or 20 years. The danger is more that people add individual stocks on top that are the stuff they already own. 40% of the S&P 500 is 10 companies. 30% is just 5 companies. So you basically own 10 companies and a little bit of everything else. So stop buying those 10 companies and stop buying their competitors because you are knuckling down on the same risk again and again and again. When you talk to retail investors, I mean, obviously, we're seeing younger audiences come into this space. They're understanding debasement. But somebody who's 65 and can't sit through a lost decade, what do they need to understand about that pension that nobody's told them? Well, first of all, look at what's in it. Look at what ability you have to manage it. That would be a good thing to do. Don't panic sell. Please don't go into cash because that's definitely going to lose money. But look at what percentage of that you need to spend. What's your cash flow looking like? And then you're going to want to move some of that into assets that are less related to what's the biggest risk right now. And to me, that's inflation. So the cash would be the risk. And the second is just AI exposure. And it might well keep running for a while. I spoke to Jim Rogers about two weeks ago. He's a bit of a gold and silver bug. And he founded the Founders Fund with George Soros back in the days. And that guy basically sold pretty much everything. And he says, I'm perfectly happy to miss out on a rally because I feel secure and safe. So I think that could be a reasonable thing to do. But you wouldn't want to put it in cash. You can do what Buffett does, which is you're in US debt, short-term debt. And that way, you still get your 4% or something. This is a good point. And you can talk to the audience about this because a lot of them are also sitting on a big pile of cash because that kind of feels like the neutral corner here, the safe choice. Is cash actually neutral? Or is that a position they've taken without meaning to? Cash is not neutral. Cash feels safe. In 1971, when we went off the gold standard, that dollar, if you had invested in the S&P, you would have made a lot of money. It doesn't matter what the number is. If you sat in cash, it would be worth a third of a cent right now. So the choice is not sitting in cash. It is just a choice you have to take off the table. And you have to just put it into something that's relatively stable. It could be short-term T-bills or something. It could be really high-quality stocks. Look what the president has just done. He's sold tech stocks. And what did he buy? He bought Visa card. He bought MasterCard, like toll booths, essentially. Every time you swipe your plastic, they're going to make a tiny amount of money. So they are real businesses because, again, no one's going to go out and start a new credit card. So you see where the big money is moving their money. And you shouldn't necessarily follow them. But it's a good thing to pay attention to and go, ah, maybe I'm a little late here in the cycle. And maybe I should look at my risk management. Yeah. A little bit like that North Polk Southern stock that you mentioned before. I got to ask you, I mean, the VIX is essentially the market price of insurance against stocks falling. It closed Monday at 15.8. And its long-run average is near 19.4. So protections historically feels a little bit cheap right now. Is that something an exposed retirement account should be thinking about? The VIX is a very difficult. So the VIX, as you say, it's the cost of insurance, basically. People tend to want to buy insurance when the house is on fire and not when everything is beautiful. So it's not necessarily the greatest indicator. It's also a very hard thing to buy because you can't buy VIX. You can buy futures on the VIX, but they will trade significantly above it. So it's a really hard thing to trade. I think for most retail investors, it's not a thing I would touch. It's a good indicator to look at of market sanity. And when it's really high, it can be a good time to buy because that's when there's blood on the streets. But when it's really low, it just tells you, knuckle down on your risk management. How about look at how exposed you are to whatever the story of the day is? Now, you talked a little bit about the railroad there. But I could ask you, if somebody handed you institutional money to run again tomorrow, would you invest it the way you invest your own? Yes. I mean, that's always my aim. I try to follow the money. That's kind of my whole philosophy. I try not to have any conviction or strong beliefs on anything or love a company or a CEO or even a metal. I just look at where is the money flowing? Because the market isn't one market. There are hundreds of pockets within it. And the skilled money moves between them. And I think that's really the only way one could potentially beat the market. Not I'm promising you that. But yeah, that's just what I do. I just look at where do the money flows go. Funds are taking note here. You were inside an investment bank before any of this, which is why I ask you that. And let me ask you about the language first. I mean, when the Treasury calls something liquidity support, and you talked about this a little bit before, Felix, but what are they actually saying to each other? Well, they're saying to the bankers, it's end of year bonus support. We're going to pump some money into the market and it's going to be glorious for the people who understand it. They don't want to be seen as printing money because people remember what happened after COVID. They said, we're going to print all this money and it isn't going to cause inflation, which, of course, makes no sense. And it goes against any economic principle. But people believed it for a while. And then, excuse me, inflation officially ran up to like 11% or something. In reality, of course, it was a lot more. So they're coming up with these alternative names for it. And that's all it is. It's just like pulling the wool over the eyes. Yeah. And here's something happening in the private markets I'd like you to read on because there was an interesting report this morning. Buyout firms are sitting on roughly $3.8 trillion worth of companies they haven't managed to sell. The average holdings period stretched to about seven years. And some of them are now doing what's called structured equity, which lets them hand cash back to their investors without actually selling the company or giving up control. Is that a reasonable bridge to an eventual sale? Or is it a sign that those assets can't clear at the values they're carried at? I mean, that whole world is about financial engineering, right? It's about buying something, sticking it back together, trying to create a different sort of perceived value for it. They don't actually create any value. They just make it look like that on paper. So they typically do well when interest rates come down. Because at that point, valuations go up. So they're probably, we're hoping interest rates would come down more aggressively. Now inflation is still pretty high, so they're not. So they're trying to figure out that period until they eventually will. But yeah, again, I don't think an illiquid market is never a good thing. Like I said at the opening. Never good. Obviously, once a new investor takes priority, the fund pays out and the intermediary collects their fees. Obviously, there's some risk there. I mean, Apollo, Blackstone, BlackRock, KKR, if you were still inside, would you be doing these deals? Look, they get paid fees, right? They take very little risk. So they just get paid in fees. They don't really care. And they can basically lock up these funds like we're seeing with a lot of these private funds. They're just not paying out. You want your money back and they say, sorry, read the terms and conditions. And we saw that with the real estate market. We're seeing it in a lot of private lending funds now. And again, it's not really a sign of a very healthy market. What's the most common mistakes your students make that they'd never guess was a mistake? I think the first is just not realizing how concentrated your portfolio really is. They think they're in the index and that's therefore diversified. And it's not because it's mostly tech. And then you watch the news and it's all tech. So they buy more tech. I'd say that's probably the biggest risk. And then they buy an individual stock, but they have no plan to sell it. They don't know when to sell it. Do I sell it when it's up 20%, 30%? And then maybe I wait and it's now down 10% and then it's 30% down, 70% down. So there are all these household names like PayPal or many of those big stocks that are down 70% plus. And people are just sitting there hoping and praying and wishing it's going to go back up. And unfortunately, we live in a society where financial education is pretty much non-existent, certainly in schools and colleges and so on. So we are not taught what to do with that. So we just become these emotional beings, which is why I do all my investing on Saturdays, by the way, because it takes away a lot of the emotion because the market doesn't move. So if you're buying an individual stock, you need to have written down when you're going to sell it before you buy it. Ideally, you should have automated that with some sell rules. Now, if you're just buying the S&P every week or every month for the next 20 years, great. Keep doing that. You're doing way better than most people who are sitting in cash or individual stocks. Now, you talked a little bit about some of those positions that I have to ask you before we go. I mean, what was the last thing you bought with your own money and why that one? Again, not financial advice. Sure. The last thing I bought was Zim, a 080 shipping company and Uber. Largely, for me, it's always a chart pattern. So I try not to get attached too much to the company. For Zim, for me, it's sort of what I call a deep value play. So when I was in banking, we used to look for companies that are essentially trading at cash value. So again, this is not a recommendation, guys. Don't run out and buy it. This is an Israeli shipping company. Lots of risk. But they're sitting on like 80% of their company value is basically cash. And then I look at their cash flow because shipping rates are really high. I think they're going to stay high. And therefore, it looks pretty appealing to me. The second one, Uber, it's a cash cow. It's incredibly hard to replicate. They've just invested in drone delivery. They're aiming for a million drone deliveries in a week or a year or whatever. And I can just see Uber the way they are aggressively and well-managed, dominating that delivery space as well. And it's a cash flow machine, right? I use Uber every day. Every time I do it, they ask me for a subscription. They've figured out recurring revenue, free cash flow, very, very profitable business. But the main reason I bought it is because of that pattern, what I call a heartbeat pattern on the chart. That's really the main reason. And I'm going to hold it until the money stops moving out of it again. And then I'm going to sell it. Yeah. And as you mentioned, I mean, different for everyone on the risk management side. Last one, I mean, forget the audience for a second. If your own parents were 70 with most of what they've got sitting in a retirement account, I mean, what's the one thing you want them to kind of understand before they changed anything? Okay. It depends a little bit on how comfortable you are with how big that portfolio is. The bigger it is, the bigger the argument, just be in the S&P 500. Because even if it goes down 30% or 40%, if you can still live off, say, 4% of that, which is sort of the generally accepted safe withdrawal rate, then you'll be fine. You'll be just fine. And you'll probably beat the market. You'll certainly beat the bond market. Now, if you've got less than that, you actually can't take that much risk. And you might want to move some of it into short-term bonds or a short-term bond fund, which is going to make you, I don't know, 4%, 5%, which isn't quite as good. But it's going to be a lot safer. So that's the unfair world we live in, that the later you figure this out in life, you've got a little bit less options, the earlier you figure this out in life. And literally every five years makes a tremendous amount of difference. The more you can benefit from the system. Because don't get me wrong, the stock market and commodity markets and everything are a tremendously wonderful opportunity to get wealthy. But you need to understand risk to start with and be a little bit responsible about it. Yeah. Sometimes I tell people, hell, 80% return is pretty good. I'll take that all day. All right, Felix, where do people find your work? I have a YouTube channel, Felix and Friends. Just check it out if you guys wish to. And obviously, keep watching Jeremy. I appreciate that. Hey, thanks for this one. There's a lot in here. Our audience doesn't usually get asked. So I appreciate your time. Thanks, Felix. Thank you very much for having me. Cheers, mate. All right, if you want more like this, subscribe, hit the button. It genuinely helps. And one for the comments. I mean, you've been on the right about debasement in this trade for years. Are you adding here? Are you taking something off? Adding or trimming, one word below. I'm Jeremy for all of us here at Kitco News. Thanks for watching.