Dear Reader,
Rachel Bodden, Jeff Clark’s senior managing editor here…
Our next podcast is in…
Today, Jeff tells us his thoughts on the markets, where he thinks we’re headed, and talks about where the money is set to flow out of…and in to over the next few months.
Check it out below, or see the transcript on the website or the Jeff Clark Mobile App (you can find the Android version here and the Apple version here).
And remember, send us your questions, feedback, or topics you want us to cover in the future at [email protected].
Regards,
Transcript
Rachel Bodden: Hello, and welcome back to another podcast with master trader Jeff Clark. And I’m Rachel Bodden, your host. Now there’s a lot going on in all facets of the world, markets, politics, you name it. So Jeff, we’ve been talking about how markets are basically priced for perfection in a lot of ways. And we’ve seen earnings reports come in like Palantir yesterday. And even though they beat earnings, they opened the day down. So you’ve been talking about how that money is going to move from overpriced markets basically to more consumer staples. Can you talk about what’s happening today?
Jeff Clark: Yeah, well, that’s my basic theory. I think a lot of the tech stocks, a lot of the stocks that have been moving this market higher over the past couple of months have gotten out over their skis, right? They’re a little ahead of themselves. Palantir is a great example because it was a phenomenal report. It was the best report the company’s ever had. They beat on every single metric and it wasn’t a small beat. It was a large beat on every single thing. And yet the stock is lower.
And the reason the stock is lower is because it probably didn’t have any rational reason for being up at above 200 bucks a share to begin with. Simply because at 200 bucks a share, I think it’s trading at 90 times revenue, which is just an absurd amount, going out to 20, 30 revenue estimates, by the way, 90 times that figure. That’s a very, very expensive valuation. Granted, the stock has been fabulous. The company is doing wonderful financially. The company is growing like crazy.
But at some point, you have to ask yourself how much are you willing to pay for this? And apparently, that stops at somewhere around 210 bucks a share for Palantir, which was its high yesterday. And now it’s had a nice little reversal. And I’m not saying it’s headed to the dirt floor or to the basement or anything like that. But a little sell on the news makes a little bit of sense here. The stock has just gotten too far ahead of itself. And what ought to happen is you’ll see that in other stocks as they report earnings over the next week or two.
What ought to happen is that money comes out and it has to find a home somewhere. And usually what happens in an overbought, oversold situation where you have so many stocks that are overbought and so many stocks that are oversold is some of that money comes out of the overbought stocks and it goes into the oversold stocks. So you ought to see, in theory, some of that money that comes out of Palantir and out of the high tech stocks go into some of the beaten down sectors. And there’s two sectors that I’ve had my eyes on for the past several weeks that I think are setting up for a decent year-end rally. And I think that’s energy, which is the oil and gas and natural gas companies. And it’s consumer staples, which is mostly food stocks. No matter what happens in the world and in the economy, we need energy and we need food. And those are the two things that we all have in our budget. We have to spend money on no matter what happens in the world. So those are the two sectors that I think have the most to gain if this market reverts to the mean.
If you will now, granted, I’ve been saying that for a little while now and nothing much has happened. And even today, you look at the stock market’s falling and money’s coming out of these high flying stocks and it’s really not moving into those sectors just yet. It’s sort of taking a move on the sidelines. Everything seems to be down a little bit today. But in theory, this is where I’m going and this is where I think if you’re looking to make above average returns over the next couple of months, I don’t see that happening in sectors that are already so far overbought, that rubber band has to snap back a little bit.
But I do see it happening in some of the value names, which are mostly in the energy sectors and in the consumer staples, which nobody likes by the way. as I say this, I know people are going to roll their eyes and they’re going to, but I played this game long enough. I, I, you don’t go wrong buying low and selling high, right? That is how you make money in the stock market, buy low and sell high. What has happened over the past several months is people have bought high and sold higher, or they bought high and they’ve never sold. So as that selling starts to happen, think it winds up going into some of that money goes into the over-sold sectors, the beaten down sectors.
Rachel: So, we’re talking about some sectors that are just too high flying and I’m assuming you’re talking a bit about your tech and stocks. So do you see any parallels between how the stocks are valued right now? And for example, companies in the dot com era.
Jeff: Well, yeah, of course there’s parallels with that. I told a story before. In fact, I think I wrote a Market Minute about this. You know, when you go back to 1999 or early 2000, and you look at Amazon. And Jeff Bezos did a speech recently where he talked about Amazon peaking at $123 a share. And then two years later, it was trading at $8 a share, even though the company itself was in far better condition when it was at $8 a share than it was at $123.
All metrics, the company was doing better than what it was when it was overpriced at 123. And the lesson to that is you don’t have to chase into these names as they’re going through lofty, lofty valuations. There’s no doubt the internet changed the world. The internet changed the markets. The internet changed how we behave. The AI will probably do the same thing. There’s no doubt a lot of these AI companies, if they survive over the next several years, some of them will change the world and they will be the Amazons of the early 2000s. So there’s no doubt some of them will exist in the future and they’ll exist at much higher prices. But at the present moment, if you go back to 2000 and Amazon at 128, a lot of these stocks look a lot like Amazon at 128. And prior to Amazon getting to 128, it traded at 80. So here’s a good example. There were two investors back then. There were those,
Everybody realized that the dot com was in a bubble. Anytime you start talking about valuations that are a hundred times revenue, where you start changing the metric, where you’re valuing companies on eyeballs and landing pages and all this sort of things, and we’re not talking about earnings anymore, you know there’s a bubble being created. So everybody with Amazon at 80, everybody understood it was overpriced, it was overvalued, it reflected, it was trying to discount things far into the future, and really you had a bubble brewing.
You had two types of investors. One was types like me who couldn’t understand the valuation and stayed away from it. And then there are other types who recognized that we were in a bubble, but had to dance while the party was going on, right? Dance while the music is playing so they would buy it anyway with the thought that they could get out before that bubble pops. The problem is trying to figure out where that bubble pops. know, Amazon went from $80 to $128. It was overvalued at $80. It was certainly overvalued at 128, but if you didn’t mind only at $80, as it was overvalued, you certainly didn’t mind owning it at $128.
Tell me where is the maximum level before the bubble pops? Nobody knows the answer to that. So when the bubble finally pops, nobody rings a bell, nobody says, hey, this is it. Oh, what happens is the stock slowly loses a little bit of gas. So Amazon goes from 128 down to 110 or 100. People go, gosh, it’s on sale, it’s 15% off. I’ll go ahead and buy more. And then it drops a little more, drops to 90. Oh, I’ll buy even more here at 90.
Then by the time people realize that that bubble has actually popped, Amazon has gone from 128 maybe to 50 or 60. Now the thought process is, as a normal human, I can’t sell it. Now it’s down 50%. It’s already down 50%. Most of the pain’s already been inflicted. It’s not going to get much worse than this. So either I’m going to hold on or maybe I’ll buy even more. And then ultimately it winds up down at 10 bucks a share or eight bucks a share ultimately for Amazon, where the pain is just too much for folks and they finally bail on it and that’s the time where you see the end of the deflation of the bubble and when the company start to go again. So human behavior doesn’t change. Human behavior is, like the party, I like the music, I’m going to dance while it’s playing and I’m smart enough to get out before the bubble pops. I know I’m not smart enough to do that. I recognize that fault in me. So I’m not going to play that game. I’m simply going to wait until the bubble actually pops and all the dust settles, then I’ll start.
Or IREN, which has gone from 10 bucks a share to 80, or Sandisk, which is trading, I don’t know, 37 times earnings, which is three times its normal multiple. Some of these stocks, the air has to come out of them. They’re not going to sustain those multiples for years. It just, the markets don’t work that way. So right now you have a situation where the enthusiasm is there because we all recognize the potential of the AI boom, but I think people are forgetting that valuation is still an important part of investing. And when you chase stocks that are overbought and overpriced, usually that’s a bad strategy in the longer term. In the short term, who knows? People can make money, but in the short term, you have to decide for yourself at what price, if you’re willing to buy a stock that’s overbought and overextended, counting on it getting more overbought and overextended, at what price are you willing to sell it? Because you have to sell it at some point in order to lock in those profits.
It’s interesting when people talk about losing money in the stock market, the consolation phrase is often, well, you don’t lose until you sell. So the idea is you bought a stock and it’s gone down. You really haven’t lost anything until you sell it, so maybe it’ll come back and make you whole again. You don’t hear that when people buy stocks. When they buy stocks and they go up, they, hey, look how much money I’m making. Nobody really ever sells it and says, hey, look how much I made. No, they hold onto it. And then that money disappears. You don’t really profit until you sell otherwise, is sort of the point I’m trying to make. Like I said, buying stocks that are overbought and overextended or overvalued is usually a very, very poor strategy in the longer term.
Rachel: I mean, I’m not smart enough to know where that bubble pops either. So I always just take that out of my own hands and I put, I just follow my little stops and I just let the computer do it for me.
Jeff: Rachel, that’s a very smart thing to do. If you’re going to play that game, if you’re going to keep dancing while the music is playing, as they say, then yeah, make sure you follow it up with a stop. And in many cases, if you had a stop on something like Meta, after it reported earnings last week, I think it’s down more than 20% from its high. So you’d probably wind up getting stopped out of that. So as long as you honor those stops, lot of folks have a difficulty doing that. They’ll set the stops and then the stock comes on down, they go, wait, no, I can’t sell it now, I’ll pull the stop out and that’s usually where the disaster happens. So you never go broke taking a profit and protecting yourself on the way down is of paramount importance. Because as long as you have money, you’re still in the game. If you run out of money, you’re out of the game and that’s where people make their errors.
Rachel: The first rule is don’t lose money. So I always sell half when I hit 100%, just like you. With these kind of high flying stocks, do you on your own time like to play with options on them? Or do you just stay away?
Jeff: I do not trade options on the high-flying stocks because the options are relatively expensive. I will do sometimes crazy things. I’ll sell credit call spreads if I think the stock’s gotten a little ahead of itself. That’s basically where you’re shorting the call option, but then buying another call option, a couple of strike prices higher just to protect yourself in case something really insane happens. Having gone through the dot-com craze, I had lost enough money shorting stocks or trying to short stocks as that bubble was inflating, that I now realize that trends can last a lot longer than you think they can.
And that they can certainly last longer than you can stay liquid, as the old saying goes. So I try to do everything to manage my risk a little bit. So by selling a credit call spread on some of these stocks is they’re making all-time highs and they’re extending beyond things. It generates income, much like I like to do by selling uncovered puts on oversold stocks. And it protects me in case I’m wrong on the trade and the bubble keeps inflating.
Rachel: So we actually have a question about option spreads from Alexander C. And he wants to know why you seldom suggest option spreads.
Jeff: Well, here’s why. And Alex has a very valid point. I think option spreads make a lot of sense, especially now that you have weekly options, because any time that you have a time frame that expires in a short distance, just a few days, spreads can be a very valid strategy. The problem with spreads the way they used to be is you only had monthly options. So if I was to do a spread today, I would use a November or maybe a December spread. The problem with it is the option decay on the option that you bought and the option decay on the option that you sold is roughly the same. And so you don’t really profit that much until the final few days of it where the intrinsic value of that spread becomes clear. So if you were to put a spread on today, betting that, a credit call spread for example, betting that XYZ stock is about to fall and it actually falls, but you have a three-week expiration, three weeks to expiration.
You’re going to lose as much on the long, sorry, lose as much on the short position as you would make on the long position. So you can’t really do anything. And so it’s quite possible the stock actually makes the move that you had anticipated and then reverses and comes back up by the time your option expires. So credit call spreads only work or any sort of spread, think only works on a very, very short-term timeframe. So if I thought something was going to happen or a move was going to happen over the next three or four days, I could use weekly options now to do that. Most of the time with my subscriber base, there’s a couple of things. If I recommend a spread option, the few times that I’ve done it, I get a lot of complaints that this isn’t the type of trades I like to make. And I don’t want to try to force my particular strategy on folks if they’re not comfortable doing it or they don’t understand it. There’s probably going to come a time and I think it usually happens in bear markets where using spreads makes a lot more sense than simply buying outright options. And we’ll have, we’ll start to introduce those particular strategies. But the reason I haven’t done it recently is because of that premium decay function that we just talked about. If you have a monthly option, the gain is usually going to be better on a single option strategy than on a spread.
Rachel: Well, let’s pivot back to some of the stocks we’re talking about before, like money flying out of the high flying AI stocks and going into consumer staples. Do you think that it might be a perfect storm for those food stocks considering we’re heading into like the longest government shutdown ever and people have just lost their SNAP benefits? Do you think that even is more wind behind those consumer staple stocks right now?
Jeff: Well, the food stocks are ridiculously cheap in my opinion. You look at something like, I think I recommended Flour Foods, I call options on Flowers Foods in one of my services. I like Nomad. We looked today at Vital Foods, VITL is the symbol there, and they basically distribute eggs. That stocks up 15%, but the chart on it, if you look at the chart, it’s just this descending of death that’s happened over the past two months in that particular stock gone from 52 down to 32. They announced earnings today that were better than expected. They beat on everything. And you have this incredible surge because nobody was anticipating that. That’s the exact opposite of what you see in Palantir, where they announced earnings that were better than expected and all that sort of thing, but the stock had run up so much going into it. So you really have a perfect illustration of what I think can happen over the next couple of months, where the high techs sell off on their earnings news and the beaten down food stocks actually do well.
Now in terms of what happens with the SNAP benefits being lost and all this sort of stuff? Trying to think of who it was last week. was Chipotle. Talked about how they were losing customers in the low income brackets. Those customers still have to eat. We still have to find food somewhere. So I don’t think people are going to stop eating because the funds aren’t there. First of all, SNAP benefits are going to come back. People are going to get their checks. People are going to spend. There’s going to be some way of working out because the government is not going to stay shut down permanently. So I think that only has a temporary situation and maybe it has exacerbated the oversold conditions in that sector, but it hasn’t eliminated the potential for profits in that sector. So, you know, the government shutdown has done a lot of things and there’s a lot of reasons to be upset about it, but there’s also, by the way,
I’ll just rant politically for a second here. There’s also a lot of reasons to be upset about the fact that we have 48 million people getting food stamps. What is that? We have 300 and some odd million people in the country, so we’ve got roughly 15% of the country on food stamps. That is absurd to me. The idea of the SNAP benefits was to be a temporary leg up. I help pull you up, satisfy things temporarily so you don’t starve.
And it’s become a sustained program for so many people. And I’m not sure who to be upset with about that. And then the other side of that is when you talk about government employees who aren’t getting their checks, they will get their checks. Many of them have basically received a paid vacation for the past while, but they will get their checks. They talked about how all these government employees don’t have money now to spend on food or basic necessities. And I start thinking, gosh.
I thought government jobs were good paying jobs with good benefits. And now you’re telling me these people who have those good paying jobs with good benefits can’t sustain more than a month without getting a check. That just seems a little strange to me. So the larger concern is why is everybody basically living paycheck to paycheck? It doesn’t make a lot of sense in my head. Like I said, if you’re to be outraged, be outraged about that sort of thing, that there’s so many people on food stamps and there’s so many people that are living paycheck to paycheck and you have to wonder why is that?
Is that a personal behavior problem or is it maybe things have gotten too expensive? I don’t know. I don’t know how to argue that, the, I don’t know. Something we’ll talk about in the future, I guess, something to certainly pay attention to. So end of my rant. Bottom line, I think the food stocks are cheap. People who are, you know, use their SNAP benefits to buy food in the past, we’ll still be able to do that. People who are living paycheck to paycheck will still have to eat. So that’s why I’m buying food stocks.
Rachel: All right, so, as we go into a seasonally strong period of the year, I think that’s what November, December into January is. Do you think there’s any other sectors besides that energy and food that are going to pop up? What are you looking at?
Jeff: Well, yeah, but let’s talk about this seasonal strengthening for a second. Seasonality has not been that good this year in terms of the market following it. We were all expecting seasonal weakness in September. That didn’t happen. We were all expecting seasonal weakness in October. That didn’t happen. We’re all expecting seasonal strength November, December. And I know there’s a lot of folks on TV that talk about, we’ve got through the worst part of the year without any damage at all. So now it’s off to the races. And for the next four or five months, we’re going to scream higher.
That seems counterintuitive to me. I think if seasonality didn’t play out for September, October, counting on it playing out for November and December may not be the best thing out there. And I’m not trying to preach a bearish tune here.
Rachel: I think you often say that the market rarely does what everybody thinks it’s going to do, right? The market doesn’t like to do that.
Jeff: No, the market likes to mess with people. The market gods are a funny bunch and they’ll throw roadblocks up where you least expect them. And the interesting thing is, and we’ve talked about this before, you have, the indices are all at all time highs, but there are many more stocks that are trading below their 50-day moving average than there are above their 50-day moving average. So while the indexes themselves are trading at all time highs, it’s reflected by fewer and fewer stocks that are participating.
If you had said several weeks ago that the S&P 500 would be at an all-time high, but Meta would be more than 20 % below its all-time high, lot of people would have questioned how that’s possible, but that’s exactly what’s happening. Or that 57 % of the stocks in the index are trading below its 50-day moving average. That just seems really odd. So we have had seasonal weakness in a lot of names. So maybe we’ve become a market where we’re not paying as close attention or participating as much in the broad index, but rather on the individual stocks. So we’re going to find opportunities in sectors like that. Energy stocks, again, being one of my favorite here. Food stocks being one of my favorite consumer cyclicals. Utilities even. Utilities, if you look at the market basket of utilities, a lot of them had done very well, but a lot of them haven’t done so well.
So I guess what I’m saying is I think regardless what the market does here, I think there’s a large swath of the market that has to play catch up, that has to either get positive on the year or take the baton from the tech stocks and start leading the market. I think that’s most likely to happen rather than just a continuation of tech stocks moving up, strong stocks getting stronger, weak stocks getting weaker, that sort of thing. At some point, those rubber bands, they’re so far stretched right now, they have to snap back at some point.
And I think we will see that. And with everybody discounting the bubble in AI, everybody’s saying, hey, I know it looks like 22,000, but we’re smarter now. We know how to do this. Or I know that we’ve got a long runway. That’s everybody’s favorite phrase right now. It’s yes, it’s a bubble, but we’ve got a long runway. Maybe the runway is not quite as long as most folks think it is. So if everybody’s talking about a long runway.
Maybe it’s a very short runway. Maybe it’s like flying into Tahoe and you got to put those brakes on a little bit faster.
Rachel: My goodness. Well, we’re talking about the 50-day moving averages and how a lot of stocks are below them. So we have a question from a reader and Karl asks, could you explain what technicals you look for and how you find them?
Jeff: What technicals I look for and how I find them. Well, I use a lot of basic indicators. They’re oscillators, which show the strength or weakness of a particular trend. I use things like MACD, which shows the moving average convergence, divergence. Don’t get caught up on that. It’s basically a measure of momentum. And I look for divergences. This is how I use every technical indicator that I follow, is I look for things that are normal conditions and I look for abnormalities in those indicators. So if a stock is moving higher and higher and higher, but the momentum indicators, the MACD, the RSI, the CCI are falling, then that tells me that the strength of that uptrend is weakening and I should be looking for a reversal at some point. If I’ve got stocks that are falling and falling and falling, but all of those indicators I just talked about are moving higher, then that’s called positive divergence and I’ll look for the potential for a stock to reverse off of that. I look at moving averages, the nine-day exponential, the 20-day exponential and the 50-day moving average are the three go-to moving averages that I use and I look for a stock’s historical relationship to those moving averages and anytime it gets outside of the normal.
So if the stock is trading extremely far above its moving averages where it trades, let’s say for example, it normally trades within 10% of its 50-day moving average, and all of a sudden it’s 25% or 30 % above. That tells me it’s an overbought condition. We’re probably going to see a reversal to the downside. Or a consolidation period that gives time for the moving averages to catch up to it. In other words, there’s not a lot more upside potential until things return to normal. Same thing if it’s trading far below its moving averages. So it’s all relationships.
I’ll look at how certain sectors trade relative to the S&P 500. I wrote an essay for Market Minute this morning, in fact, where I talked about the energy stocks relative to the S&P 500. They’re trading at its lowest relative value to the S&P in four years. So the energy stocks relative to the S&P are cheaper than they’ve been in the past four years. That seems significant to me. Whereas if you look at the tech stocks, the tech stocks are more expensive than they’ve been in the past four years.
So if I’m looking to buy low and sell high, I’m more likely to be a buyer of the energy, not so much of the tech. So that’s what I look at. Technical indicators, you can find them anywhere. Whatever charting service you use, I use stock charts, but you can use any of them. And they have those as little additions that you can put onto the chart and show you where it’s at. But really, it’s a matter of looking at it relative to its history and relative to whatever other factors that indicator is contingent with.
Rachel: Thank you for that great answer for Karl, Jeff. I guess for the last minute or so here, next time we chat, it’s going to be December, which is crazy to me. This year has gone by really fast. So what do you see ahead for this month, for December going into the new year? I know, big question.
Jeff: Well, I talked about the dollar rallying. I think I started talking about it in September, and so far it has. And it looks like it’s starting to pick up steam. I think that is the most surprising thing. Folks are going to look at the end of the year and go, my goodness, I had no idea the dollar was going to rally like that. We picked it up in September, I said, looks to me like the dollar is bottoming. We used all these indicators that I talked about with Karl’s question there to explain why I thought the dollar was oversold and ready to rally and now we’re seeing the effects of that. So I think the dollar moves higher between now and the end of the year. Unfortunately, I think that means gold probably moves lower. Other currencies obviously will move lower. It probably means that interest rates are headed higher as well. I think we have a lot of things going on that could be kind of the fly in the ointment for the stock market.
Coming up on Thursday, the Supreme Court is going to take up the case about the tariffs, a case that the tariffs are unconstitutional and whatever. So the Supreme Court will hear arguments about that. And that probably is going to take up a couple of weeks. But once we get a decision on that, for those couple of weeks, it’s going to be kind of cloud hanging over the market, if you will. The market doesn’t like uncertainty, and that adds a little bit of uncertainty.
Because I believe the market has all of a sudden looked at tariffs now as being a positive thing for stocks, which is a little odd because several months ago it was completely the opposite. But if the Supreme Court strikes that down, then, and we wind up having to return several hundred billion dollars in tariff revenue, that’s clearly going to be negative for the US fiscal deficit. And that is probably negative for bonds.
It might be positive for things like retail stocks, know, folks like Abercrombie and Fitch ANF, Lululemon that are very affected by tariff rates. So that might be a positive because those stocks are in the gutter as well. That might be another sector you take a look at. Christmas coming up, obviously retail stocks might be something that you look to move into. Some of the beaten down ones and the cheap ones. It’s interesting, there’s a lot of stocks that right now are trading in single digit price earnings ratios. Some of them are retail, some of them are energy, some of them are food. They’re single digit price earnings and they’re 5 % plus dividend payers. So there’s a lot of cheap stocks out there, but they just can’t get any love. The cheap stocks just keep getting cheaper. But it has been my experience in the past, and I’ve been doing this long enough to be able to say this with confidence.
When you buy stocks that are cheap, your risk is relatively low, although there is risk, but it’s relatively low, and the upside potential could be significant. I often talk about, you know, the last bubble we went through was the dot com bubble. And back then, my biggest position going into the middle of 2000 was Cooper Tire and Rubber. Every client I had had a bunch of that stock. I had a bunch of the stock. My firm had a bunch of the stock, Cooper Tire and Rubber.
It was a tire manufacturer, but it had been beaten down. And it was trading at six times earnings, it paid a 6% dividend, and it was trading at $9 a share at early 2000. It dipped as low as $6 a share. And I had customers that were threatening to leave me because I wasn’t participating with Yahoo and Cisco and Pets.com and all this other sort of stuff. I was in Cooper tire and rubber. But when that internet bubble finally popped, and some sense of rationale
came back into the markets. As all those internet stocks deflated, Cooper Tire and Rubber tripled in about six months. So that looked really good. So I think you’re going to have a similar opportunity, because what’s happened over the past several months is you’ve had all these AI stocks trading at these phenomenal momentum moves and making higher highs and higher highs and higher highs and stretching beyond whatever imagination would allow them to. Meanwhile.
The value stocks, the Cooper tire and rubbers of this particular era can’t get any love. And so they’ve been beaten down. So I go back to that premise that as money comes out of these inflated stocks, it’s going to go into the deflated ones. So be a little patient with it because it doesn’t happen overnight, but it does happen. We’ve seen it often enough. We’ve seen these cycles often enough.
So that would be my best advice for the year is buy value right now. I know it’s as contrary in a bet as you can make right now because nobody likes value except me and maybe a handful of other folks. But the other thing to think about is Warren Buffett, Berkshire Hathaway is $382 billion in cash. 40 % of the market capitalization of Berkshire Hathaway is in cash right now. That’s the largest cash position he’s ever held. So if the smartest investor in the world ever, Warren Buffett, widely accepted as that, can’t find things to buy in this market enough to where he’s comfortable putting his big cash hoard to work. Take that as a sign of maybe being a little cautious here.
Rachel: I feel like that is excellent advice, Jeff, and I, for one, am following it. And I really do hope that the tariff situation gets sorted out because I recently paid 90-some dollars for a package from New Zealand and I was not happy about that.
Jeff: Well, buy America then.
Rachel: But America doesn’t have linen clothes in the way other parts of the world do. Ask your wife.
Jeff: Well, all right, then you’re kind of screwed.
Rachel: Well, Jeff, that’s really all we have time for today. Always a pleasure chatting with you on these podcasts. And when we get together next time in December, maybe we’ll have you open up stock charts and go through some of those technicals for our friend Karl.
Jeff: That’s not a bad idea. Thank you, Rachel. I appreciate the time.
Rachel: Have a great day.
Jeff: You too. Bye bye.