Welcome back to another meet! Kevin Report we are on episode 25. we are a quarter of the way to 100. this is super exciting. Kind of as exciting as yesterday was.

We're back to Flying Had a shadow with me yesterday. Boy that was a phenomenal. We did so much yesterday we went to St George Utah from out of California looked at real estate in St George Utah flew over to Las Vegas to go look at the boxable facility and do an interview with the executives over at Boxable. Then we went and looked at real estate in Summerlin and some Northern parts of Las Vegas Then we flew back.

He went in the spot and had a party. It's like holy moly it one one heck of a day yesterday. A lot of travel. They got more travel.

Uh, today today we're going up to Northern California We've got an interview. uh I think we're scheduled today with Arc Invest, which will be pretty cool. We'll uh post that later. It's one of the analysts over at ARC Mr Brett He's awesome! He's been on the channel before and he's got some pretty incredible insights into the world of AI.

So we talking to him later today and uh, wow, look at because if you haven't seen it yet, I'm sure you have. Have you seen Crypto Crypto trying to play catch-up after the week of uh SEC slamming versus Stable Coins and Coinbase Trying to defend stable coins, but defending stable coins really poorly? What did you end up with? You actually ended up with Bitcoin that just in the last 24 hours, rallied eight percent Ethereum up about six percent in just the last 24 hours binance a token trying to come back with a little bit of a five percent move there. you're not seeing as much of that kind of move on some of the other smaller coins whether that's Cardano or Solana, but you are seeing it in the larger one, so it makes you wonder. Are markets playing catch up to the equities rally that we've seen? Are they a little bit sad, more satisfied that hey, maybe things won't be as terrible? Uh, for a crypto? Uh, outside of the stablecoin realm, it seems like that's where the SEC is really sort of honing in on.

Right now is a company stay able coins and customer assets? Not so much trying to fight the existence of Bitcoin and Ethereum, which is probably the better direction to go. anyway. Now we do have uh uh, so let's see, we've got crypto. We talked boxable, we talk flight.

We do have PPI coming out today. That's producer price inflation, so I'll give you some heads up on this that actually comes out in 20 minutes. so we'll cover it in about 20 minutes. but that's going to be a big Market mover today, so Market's relatively flat before that, but within about the next 21 minutes we'll be reporting that.

Do keep in mind that if you're watching this on, uh, Facebook ignore the scammers and the Bitcoin scammers in the comments out of Twitch YouTube and Facebook where I stream uh or the podcast Apple podcast Google podcasts um Spotify All of these platforms pretty much the only place you end up getting scammers is uh Facebook so do keep that in mind if you watch on Facebook Uh, lots of uh, scammers and spammers. Now We also have some fears about the debt ceiling. It looks like you had the Commerce Department to come up with some estimates for the debt ceiling. Uh, actually, I'm sorry, not the Commerce Department the Congressional Budget Office Congressional Budget Office of Forecasting that the government is at risk of a payment default as soon as July if lawmakers fail to raise the debt limit.

Now remember, we've talked uh, pretty regularly about the debt limit and we believe as well as the Federal Reserve believes and most people on Wall Street believe this is just going to be another one of those intense negotiations up to the minute. You kind of end up getting some kind of sell-off and uncertainty as the limit approaches and then you get a buy-in after the debt limit ends up getting passed. Republicans Are already negotiating uh for an increased debt limit as long as they receive some form of cuts in areas that they're looking to negotiate. that could be better funding for the Border Wall and finishing that off border security funding.

it could be less entitlement spending. although they've come out recently to say they don't want to do it. or I see any kind of cuts to seniors or like for example Social Security style Cuts Not expecting to see anything there. it looks like both sides have made that clear, especially during Biden's say the Union Address But these could be other uh, let's say like work requirements or additional work requirements I should say for welfare recipients or otherwise.

So these are all just things being talked about right now. But really, the CBO uh shouting here that there would essentially be an economic and financial catastrophe if Congress doesn't act as something that's going to create some anxiety, especially since you had the Federal Reserve basically say hey, Jerome Powell said this in his last press conference. Essentially, there's nothing that they could do to protect us financially from a financial crisis if the debt ceiling does not get extended. Uh, so you know.

Kind of interesting. yeah. Shane Huffier mentions a week ago you reported on Bears not being able to find any bad news and that they would end up moving on to the debt ceiling. Here it is.

Uh and yes, yes, I expect that. Uh, so uh, you know. Not a surprise at all. Uh, to me that now we're getting sort of these uh, debt ceiling uh, debates and and I think we'll see more of that obviously as as time gets closer and that's possibly because the the economy is doing pretty dang well.

And I think what you're seeing is you're seeing a lot more. uh, anxiety over this consumer recession get delayed Basically where you're essentially saying all right, it doesn't look like maybe we'll go on a recession after all in the first half or second half even of 2023. let's just delay it to 2024.. So again, we've got Shopify reporting later, we've got uh I'm sorry Shopify reported yesterday with PPI coming out later Shopify they're forecast disappointed.

So they're down a bit here in pre-market Uh, the revenue in Q4 was actually up 26. gross merchandise volume was up 13. So that's total sales on platform versus what they take in fees Roku killed it. They were up about 12 here in pre-market We'll see how they do it during the day.

Uh, and we'll probably go through Roku and uh Shopify earnings as well as some real estate talk and Q a in the course member live stream which always happens right after uh, this, uh live stream. When the market is open, we do the course member live stream. We did extend that flash sale uh through Friday 11, 59 pm and then uh, we do the Elite Hustlers live stream. We'll have our inaugural inaugural our first one on uh Saturday morning and that'll be after this style of meet Kevin report live stream as well.

We did also find out who bailed out Ftx's founder Sam Bankman Freed Looks like it was a Larry Kramer I don't don't think related, unlikely not given the spelling is different from Jim Cramer and Andres a big gap. something like that. Uh, basically you have some Stanford professors and a dean of Stanford law uh who ended up funding Sam Bankman Freed's bailout? uh, money as well as, uh, his parents who leverage their home to be able to bail out Sam Beekman Freed Uh, recently he's been, uh, he's been banned from using a VPN to circumvent uh, some of his limitations. It seems like he's uh, somehow still actively been able to be uh, well, let's just say, pretty dang active on the internet and the judge isn't very happy since he seems to defy pretty much every rule that uh, that is placed for him.

but uh, then again, he wasn't much of a rule follower ever. uh, and apparently didn't seem to mind fraud either. But uh, you know what alleged fraud? We'll leave it there for now. So uh, that brings us now to Tesla We've got a lot a lot to talk about with Tesla Also, by the way, you can watch me on Instagram all my stories yesterday I think I posted probably I don't know 10 12 stories or whatever I promised I'd post more stories and we posted a lot of stories yesterday.

So if you want to see kind of what what I'm doing during the day when I'm away from the YouTube so to speak, Uh, check me out on Instagram at Realmecav and you'll get to see all those stories. Uh, and I find it quite entertaining. Hopefully you do as well. Now we've got to talk at Tesla and a boy oh boy.

we've got a lot to talk about from new firings at Tesla What the heck is going on with the Supercharger Network And what does it have to do with the White House and billions of dollars? What's going on with Mr Old School Charlie Munger lashing out at Tesla and what's going on with the European Union We've got a lot to cover. Let's see how quickly we can get through it. First, two days ago, we heard roses are red, violets are blue. We have a flash sale for you that's 69 off on the program, so I'm building your wealth expiring Friday at 11 59 PM we extended that flash sales, take advantage of that and get lifetime access.

and yes, that is actually what I said two days ago. But then I Also followed that up with saying that two days ago, individuals at Tesla Buffalo New York ended up circulating at the autopilot labeling team, which is kind of where you have minimum wage starting at 19 and you kind of sit and push a button like yup, looks right? Yep, no looks wrong. Yes, no Yes no yes no Yes. they were pissed about apparently not getting snow days that they wanted and uh, being monitored for how long they were spending in the bathroom.

which? I I Don't know. What's more weird, the suggestion that the employee is concerned about people monitoring how long they're spending in the bathroom or the company monitoring potentially how long people are spending the bathroom. I'm not sure it all sounds a little weird, but they circulated a letter saying roses are red, violets are blue Unions start with you and somebody at Starbucks thought it would be a good idea. Apparently like somebody who helped start unions for Starbucks decided to be a good idea to connect with people over at Tesla and tried to start a union at Tesla And so they got about 25 people to put a letter together and email Elon Musk and say yo, we're unionizing and uh, pretty much every one of you called it in.

not only the comments on the live chat or uh, in the uh, the what's it called uh in in the comments on the actual YouTube video and what did you end up getting or what you ended up getting was as you all called it, you're Fired Tesla Fired all 25 of the individuals who started suggesting that they wanted to unionize. Goodbye Unions Now Tesla has been slammed for this in the past. My expectation is even if Tesla were to get sued for firing people for threatening to unionize. although they'll probably use a different rationale, it would be years before that sort of litigation actually ends up playing out.

so we'll probably come back to the roses are red, violets are blue argument in 2025, and by then honestly, I think Tesla's going to be in a lot larger of a place than well, where we are are today. Now another thing obviously that we've got to talk about is what's going on with the Tesla supercharging. Network Now this is actually interesting: The Wall Street Journal did a phenomenal piece on this I think they they put it together the most clearly and then we'll get into Buffett and some of what's going on in Europe because there's a lot to talk about. Uh, but we'll look at this.

so Tesla's expanding their non-tesla Supercharger pilot. Uh, and and basically what uh, what they're doing is, look, they have 40 000 superchargers worldwide and the White House gives like massive Mega subsidies if you end up opening your supercharger Network to other electric vehicles. And this makes sense because the White House wants more electric vehicles in America. But the big thing that everyone's worried about in America is premature electrification of course.

Remember the Dodge the Ram ad for a vehicle that doesn't even exist yet? Anyway, people have range anxiety when it comes to buying electric vehicles. There aren't enough superchargers, and a lot of superchargers are just not super. They suck. They're very slow from other companies.

Tesla by far has one of the most robust supercharger networks, one of the most reliable networks. uh and Tesla now plans to open at least a 3500 new superchargers and existing 250 KW Chargers to drivers of all EVS By the end of the year, the White House is bragging about how wonderful this is for everybody. It actually is a good thing now. Tesla is expected to receive potentially billions of dollars, billions of federal subsidies to continue to build their supercharger.

Network Because they're doing this now. Think about that. That's incredible. So Elon Musk actually visited Uh with uh the Biden Administration about a month ago and I wouldn't be surprised if they ended up talking about the supercharger Network and how they were going to announce it.

apparently. in addition to him actually visiting with the Biden Administration Elon Musk participated in a call with their infrastructure coordinator and they discussed about uh. Basically, their discussions revolved around improving Highway charging and this right. Here is what I love about Elon Musk is he's a very reasonable person.

uh, they they say here quote. He was very open, very constructive, and at the time he said his intent was to work with us to make the network interoperable. A lot of people say hey, like is Tesla seating a competitive Advantage for doing this and I think the way to look at this is yes, to some degree the Tesla supercharging Network motivates people to buy a Tesla right? That obviously is a draw. However, if you now let other people use the electric vehicle Network What you really potentially do is you increase congestion for people who have Teslas you kind of take away that whole like Tesla Club feeling exclusivity when you drive through a mall and there's just like a row of backed in Teslas and it looks really badass.

I Mean it's like the best ad ever. and if you start seeing like Kias and Nissans or whatever plugging into the Tesla superchargers, it's kind of like, okay, it's not unique to Tesla anymore. Not there's anything wrong with Kias or Nissans. Okay, I'm just saying not unique anymore.

But well, so let me first say yes, there there is some form of uh, potential negative in sort of that competitive advantage of that Tesla might have. But I Think the reality is people buying Teslas are probably not buying Tesla solely because of the supercharger Network they're either buying a Tesla because they want the full self-driving the technology, how fantastic the freaking car is in terms of acceleration uh, and and just how Sleek it is right you're buying it for all of these other reasons. And the supercharger Network I personally believe is just icing on the cake. Uh, and and the reality is, people who are not going to buy a Tesla probably just aren't going to buy a Tesla Anyway, in fact, somebody very close to me and I was really surprised by this, but somebody very, very close to me.

They actually I asked them I go hey, have you um uh, they refused to buy a Tesla by the way and I asked them I go hey, did you see my latest Twitter post and he's like no I uninstalled Twitter after Elon bought it and and I kind of like paused for a moment and then I just said the quiet part out loud and I'm like I literally never thought I would meet someone in person who actually uninstalled the app because Elon bought it and and he's like yeah, yeah, I'm one of them and I'm like I'm not even gonna start. it's like we could still have beer, but I'm not even gonna start because that's insane and ludicrous and silly. but whatever, everybody is entitled to their opinion. My opinion is very obvious.

But anyway, those people, whoever whomever they may be I don't dislike them I don't disrespect them for that I think it's crazy, but that's okay. I Also think in many regards I'm crazy. but then again, I think you have to be crazy to wake up at three every day and work until you know, work. Basically two jobs.

But anyway. uh, which that's not to say that. Oh, working two jobs, no big deal. A lot of people were two jobs.

Okay anyway, point of this is to say uh, that people who are not buying a Tesla are probably not buying a Tesla for other reasons outside of like the supercharging network potentially being available to them, right? So the way to look at it is the minus of of of people not buying a Tesla because of opening up a supercharger Network I Personally think anecdotally is nominal. In addition to that, the plus is that Tesla's probably going to get billions, billions of dollars of of money to expand the supercharging network. which actually attracts people to Tesla in the first place. right? Because you actually get cheaper charging rates in the Teslas But it also potentially gives Tesla money to invest in their manufacturing ability.

So you're getting more manufacturing subsidies to actually produce the uh Tesla uh uh um, charging vehicles or not the charging Vehicles the charging stations. That's because if you actually look, let me see. where is it. Where is it? Where is it? If I look at housing in the Wall Street Journal article, they basically talk about how the Inflation Reduction Act requires a certain percentage.

Here it is that of the steel enclosures or housings needing to be manufactured in the United States starting immediately and I think Elon Musk is going to look at that and he's going to be very smart. He's going to go well. I Mean, if you want us to manufacture more of these housings in the United States, we're going to need some big old tax credits to help us expand Giga Texas or whatever, right? And by 2024, at least 55 percent of the cost of all components needs to be manufactured in the US Okay, hey, give us some bills so we can maybe mine more. Whatever we want to do, uh in the United States So I Actually Personally think this is absolutely fantastic I Think this is this is great.

The loss you have is nominal. The subsidies you're getting are absolutely huge. Now we got to talk Charlie Munger in just a moment. but I Just want to on the topic of subsidies.

talk about here's a Barclays piece. and I mean I'm seeing stuff like this daily about talking about how Joe Biden's inflation reduction or reduction Act is a serious competitive threat to the European Union because of how many subsidies are going into battery storage and electric vehicles tax breaks for manufacturing them like what we just saw for the EV network. And remember, if you actually go through uh Tesla's document on uh, you know what they end up like how it's going to end up working. That's this particular document here.

You basically download the Tesla app and you can plug in other vehicles by just marking which charging stall you're at and then you pay through the test lab. I Do want to make it very clear though, on this note of subsidies and sort of a tangent, there is an additional cost four non-tesla members. so non-tesla members do pay a little bit more money. so I wanted to clear that up.

But anyway, back to the subsidy stuff. The amount of money that's expected to flow into State Support subsidies in the United States alone is expected to be somewhere around 440 billion dollars into energy storage, green, solar, electric vehicles, you name it. Uh, and the same is expected to happen in Europe to somewhat of a smaller degree, but also massive. So sectors that are going to benefit from these subsidies mining, energy, semis, capital goods Autos chemicals, construction, materials, utilities.

Uh, these Investments are going to be huge Uh. and I mean keep in mind we expect not only the United States to throw hundreds of billions of dollars in tax credits and subsidies at this uh at Green vehicles and battery storage and that, but also Europe to compete. and after Europe Guess who else China Massive Chinese subsidies 450 billion of euros worth of subsidies in China's Five-Year Plan to invest in uh in in Chinese electric vehicles. So the amount of money that you're going to get thrown into batteries and EVS probably over the next decade from governments is gonna is probably going to exceed a trillion dollars.

I Mean this is like a huge stemi check to the industry. it's absolutely insane, but you know who's not stimulating I Hate to say it, but it's Mr Charlie Munger Mr Charlie Munger has some uh Choice words for uh Tesla versus Byd. So let's listen into that. and uh, here we go.

Question from Steven Spencer Uh, who writes in from New York New York He's curious why Mr Munger prefers an investment in Byd to Tesla Well, that's easy. Tesla Last year reduced its prices in China twice Byd increased its prices for direct competitors. we're so much ahead of by ATD I Mean Byd is so much ahead of Tesla in China it's like a it's just it's almost ridiculous. It's almost ridiculous that that's actually not true I Mean if you actually look at the real data, what do you end up having is you have Byd? uh, selling half Ice vehicles and hybrids? Well, those are hybrids are Ice Vehicles right? and the other half are fully battery electric if we just look at battery Electric Battery electric vehicles sold by Byd were about 900 000 units in 2022 and a Tesla sold about 7 000.

sorry, 700 a thousand uh in in China of the battery electric vehicles, right? So you're talking about 900 versus 700 I'm talking about 28 I Don't know if that's so far ahead. The numbers I think are a little bit more worth looking at and keep in mind Byd sells vehicles for 15 to 30 000. On average, the average selling price of a Tesla is knocking on the door of uh, fifty two thousand dollars. So you have a massively different audience.

you're appealing to smaller Vehicles versus larger Vehicles Let's also look at the numbers. when you look at the Byd investor relations information. What do you actually have for the numbers for Byd? Well, you're looking at numbers that aren't anywhere near Uh, Tesla's numbers. In terms of margins, you're looking at, maybe maybe a net margin for Q4 sitting around a 3.4 percent, it's better than it's been in the past.

But three point four percent on Net versus Tesla's 13 to 17 percent net bottom line numbers. Or if you look at uh, the gross margins Byd gross margins maybe 13 14 Tesla on gross margin 20 to 25. But whatever. Monger Let's keep listening to you for a moment.

And if you look at Byd which most people never heard of, if you count all the manufacturing space they have in China to make cars, it would, it would amount to a big percentage of all the land in Manhattan Island and nobody ever heard of them a few years ago. All right, let me jump to another question. This one comes from Michael Aseo who says did the this is regards to some movement at Berkshire some sales of Berkshire stakeholdings. Did the sale of some Byd and Taiwan semi shares have anything to do with the relations between the United States and China Or was it for purely economic reasons? Well, maybe when he's talking about 50 times earnings, that is a very high price.

Oh come on man, now he's bagging on his own thing. I Mean, come on. I'm starting to lose a little bit of respect. and I don't want to go on for this forever.

Here on: Munger you know what? They've got their opinions. That's okay, but look, this is where Warren Buffett and Berkshire Hathaway sold Taiwan semiconductors see it at the pit of that blue line. There to me, that looks a little bit paper handy. Now don't get me wrong, they bought low, but that looks a little bit paper handy.

and now you're telling us how great Byd is with the lower margins and it's still trading for 50 times earnings. You're basically saying it's trading for roughly the same valuation with worse margins and less expensive Vehicles than Tesla. In fact, Bloomberg themselves expects that margins for Byd will suffer more than Tesla's and this is despite the fact that Tesla has adjusted prices down a little bit versus Byd up a little bit again, substantially cheaper vehicle versus much more expensive vehicles. and Teslas Tesla's just became the third most popular vehicle in Europe.

And you know what? Look, I I don't know. I I I'm a Tesla bill. so maybe I'm jaded. but hey, you know what? Sorry Charlie Munger I ain't buying it.

We got good news here on the anti-union move I think you've got a good news here on Superchargers? You've got great news on uh Tesla Overall with margins, I'm a big fan now. we must talk PPI you ready for this? PPI Numbers coming in right now PPI Coming in Hot Hot hot, That's not good PPI Final Demand coming in at point Seven. Oh, that's not good. That's bad.

That's bad you've got PPI Expected was 0.4 You got point Seven. That is no bueno. Uh, then you've got uh. core.

Uh X Food and energy. You got point five versus the 0.3 expected. Also, not good. Oh, this is terrible.

Ppix: Food, energy and trade. Oh dear lord. 0.6 versus 0.2 Expected. This is a terrible report.

This is not good at all. Uh, Holy smokes. PPI A Final A Demand six percent year over year as opposed to the 5.4 survey PPI year over year. Uh, less food and energy you're looking at 5.4 versus 4.9 That's also beat uh, or in other words, the worst number.

Higher number PPI X food, energy, and trade year over year coming in at four and a half versus four percent. Terrible numbers. Absolutely terrible numbers on the PPI That's not good. You do have housing starts that just came out as well.

Minus 4.5 percent on housing starts you were looking at 1.9 The last was also revised up substantially. Negative 1.4 was revised to negative 3.4 That shows you more slowing. Substantially more slowing in the housing market than markets have expected. Uh.

However, this uh, this PPI number is absolutely terrible. uh. markets. Basically moving straight down on this news, you went from about flat on the the NASDAQ a close of yesterday of about 309.

You're sitting in free market right now at about 306.. yeah, most stocks turning red here in the pre-market from up about half a percent on Tesla down about one percent. It's gonna be really interesting to see how uh markets try to explain this one away, but holy smokes these PPI numbers were terrible. These are these are not good PPI numbers.

Let's try to see what's actually going on PPI uh reports so we can get to the bottom of what's actually in the report. But I'll tell you this from from what I'm seeing here. just these headline numbers every single beat. Not great.

Uh, not great at all. We're gonna go. uh, print up the PPI report right now so we can look at it together again. This is a beat across the board on everything.

and I'm not talking about a little bit either. This: This is a terrible survey. Now there is murmuring and I Want to start by saying this: There is a lot of talk, uh, circulating that maybe, maybe, uh, you know and I'm not trying to just pull this out of the Hat you know, conveniently because it was a bad report and you know, maybe Kevin lean's a little bullish. Okay, but anyway.

uh, there is there is this talk about how surveys are potentially potentially starting to become less reliable and I Read this yesterday so it has nothing to do with what the survey was today. I Was going to talk about it anyway. but look at this: The survey response rates are plummeting. survey response rates plummeting on population surveys, employment statistics surveys, the Employment: The response rates are going from 60 to approaching 40.

Look at the Jolts Report I mean a plummet from about 70 percent response rate to like a 38 response rate. An absolute plummet here. Employment Cost Index report: plummeting. So you're getting these massive plummeting response rates.

and it's not me, but it's individuals are expecting that these response rates are potentially going to affect and skew the data because really, what you're getting is the census bureaus or the Bureau of Labor Statistics They're sort of trying to apply different weights to responses to try to fix these weird, uh, lack of responses we're starting to get and some folks say that businesses that are having sort of worse reports are less likely to actually respond to this info information because out of, uh, maybe it's embarrassment or or you know they don't want to talk about how their business is doing poorly. They're kind of tired about that. I Don't know, but this PPI report either way, you slice it is not good. This is not.

This Is this. This is, uh, starting to look very sticky. Uh, and you know sticky is nice when it's transitory, but uh, you know otherwise you know, or you're playing with like I Don't know, like uh, Play-Doh or something like that, but you know you don't want to be sticky all day long. And right now, this is starting to look a little sticky here.

Point seven percent of January and think about it. Every report for January has been hot, right? We had CPI hot, We had jobs hot and now we have PPI hot like January is just a hot month. Now some say it's possible that uh January is so hot because you actually have this this uh uh, potential warmer uh winter than you usually do. And because you have a warmer winter maybe people are spending money on uh, you know, spring clothing more uh, and earlier than expected at higher prices.

And this is why you add an apparel jump. You had a little bit of a pop in oil prices because of the potential that China's reopening was going to drive oil prices up. so you had some initial speculating pushing up oil prices anyway. so we already read the numbers out.

Let's actually see what this was attributable to. So, uh, final Demand Good moved up 1.2 percent in January largest increase uh, since Rising 2.1 percent in June of 2022. The January Advance is attributable to a five percent jump in final demand for energy. Now remember, energy is even when you strip it out for core, it still ends up increasing the cost of other Goods within PPI.

That's because you know, even though you could have like a real estate agent as a core Service As an example, their costs might actually be going up because it's more expensive to drive around. So maybe for example, real estate agent might not be the best example. But the uh, let's say a bookkeeper or whatever wants to charge more money, Whatever right expenses go up when oil and energy prices flow through the economy, so people have to end up raising their prices. This is not good though.

I Mean these These are pretty big numbers here, and so far this is a Miss on everything here. We know that energy moved up. What else here? The index for residential natural gas, diesel fuel, jet fuel, soft drinks, and Motor Vehicles also moved higher. We actually did see that both Pepsi and Coke talked about higher prices.

Prices for fresh and dry vegetables decreased 33 Okay Well, nobody wants those anyway. Uh, then you've got organic chemicals declined. Oh, really lower organic chemical? uh uh. expenses while at the same time they're all spilling in Ohio That's interesting.

So index for Final Demand: Services Point four percent in January What would cause this here? Let's see here. Uh, last Trade Transportation Warehousing So over 80 percent of the broad-based increase in January is attributable to prices for final Demand Services Less trade Transportation Warehousing Wow. Wow, that shows you sticky Services right here. We saw this in the CPI report as well, which is not good, but this is sticky Services right here sticky Services right here when 80 percent of the PPI move uh for for uh Services is basically broad-based outside of just trade Transportation Warehousing: 80 of the increase is based on those Services outside of trade Transportation warehousing which is basically everything else uh in the services sector product detail Let's see here: a hospital outpatient care uh jumped 1.4 percent Automobiles jumped We saw this Uh with with the used vehicle reports Health Beauty Optical Retailing portfolio management uh airfare passenger Services moved higher margins uh okay.

let's see here. let's look at the actual chart here. Let's see intermediate demand. That's fine.

Okay, let me I want to get I Want to get a little bit more detailed on some of the actual items? So let me get the detail chart here. But uh, so far, the this beat is not going to make for a great day for the market here. Stocks: uh per Wall Street Here, extending losses, dollar turning positive, yields, ticking higher the yield part ticking higher is very interesting when it comes to uh, real estate. because uh, as as much as people got excited that rates were starting to come down and people were starting to get pre-approved at lower rates again, you actually have rates moving up again.

So you're going to get potentially just this very temporary pop uh and then then you'll end up getting a potentially a decline again in uh in real estate, so not so great. A little head fake here for Real Estate As rates continue to move up and you saw with housing starts as well, complete disaster on housing starts. Now, we're going to go look at some of the actual categories here that we have. uh for PPI Let's see here.

Uh, Getting PPI here. Okay, looks like Final Demand Foods December to January Final Demand Foods Actually in aggregate, down one percent, but final Demand Goods In general, up 1.2 percent on the seasonally adjusted basis for uh, Final Demand Goods That's actually not ideal that you're starting to see a little bit of a pickup again in Goods Inflation, right? That's what we don't want. We don't want to see any kind of pickup in Goods inflation and you're starting to see that increase on PPI Now that doesn't necessarily have to come over to CPI If companies end up taking it in the margins, right, they take it in the margin. Uh, that's possible.

Uh, it's very possible. But it's still showing you these sort of more broad-based price. uh, pressures, right? That's not good. Now you've And what's also not good is now you've got people in the comments saying things like team Bury and putting up little bears here.

Uh, so what do we got here? Final Demand Goods Up 1.2 percent. That's not fantastic. Uh, Final Demand Foods here minus one percent. Fine.

Let's go ahead and get past that. Maybe with the exception of coffee up 1.9 Wow, it's not good for Starbucks alcoholic beverages? Let's go. Minus point one percent. Thank goodness.

Okay, no price increases there. That's fantastic. although in the UK they were I Was reading some reports yesterday that you had uh uh, restaurants and travel go down but alcohol prices were going up because demand for alcohol spending was up. so I Don't know maybe the people are sad in the UK but but anyway.

uh, you know, maybe they're sad they didn't get Liz trust. So what else we have here? Industrial machine handling equipment up 0.7 Electronic computers and computer equipment up two percent. These are like massive moves here. It just makes you wonder like at some point do we still trust all these surveys that are just coming in all over the place like why is it You know the last three months of 2022, everything seems like it's disinflating and yay disinflation is here.

Now All of a sudden it's like a rug pull again. Nope. Uh, inflation's back. This is wild.

What is this? Tires up 2.4 percent for tires in a month? Good! Lord Construction machinery and equipment of 3.4 Holy smokes I Mean it's this is so broad base I Don't know how you could say there's disinflation and producer prices when it's this broad-based and I'll tell you I even set it in CPI I'm like man, still pretty broad-based where you're seeing the inflation on Services Now it was nice the market was rallying, but it's like I remember saying that course members that day I'm like I don't know, the CPI report doesn't seem that great. The market rallied anyway and I'm like okay I mean don't get me wrong I appreciate the rally, but this so these this. these January reports suck For the disinflation narrative, they suck All right. What else do we have here? We got 3.7 up on lawn and garden equipment.

okay, uh. truck trailers down one point three percent. Okay, so a little bit down. cigarettes are going up.

Oh no. 1.7 mobile homes though. Folks mobile homes are 1.3 percent less expensive I Think that's fascinating. Don't buy a mobile home, ever.

It's stupid. Uh, costume jewelry and novelties? Okay, 4.6 Uh, then you've got apparel wholesaling down Six point seven percent. I Mean look at the volatility in some of these numbers. This is just insane how volatile some of these numbers are.

Uh, this is remarkable. Sporting Goods including boats and retailing up 10.1 percent. It just makes you wonder if the the seasonally warmer winter pushed this up right. Health Beauty Optical Goods retailing 4.1 percent.

but then over here, fuels and lubricants down 17.5 percent I Don't even know what to make of this data I Mean it just. it seems hot, but it's just like all over the place. It's kind of exhausting how all over the place some of these numbers are. How are we doing on? Lumber What is this? I Mean look at this.

What is it? How are you supposed to understand this at all? Look at this. Hardwood lumber down Nine points. Oh sorry. Hardwood lumber up nine point Two percent.

Oh, but wait for it. Wait for it. Soft wood Lumber Down Nine point seven percent. So one's up.

Nine percent runs down seven percent. Like what is this? Uh, this is so confusing How some things are just massively plummeting. Some things are massively increasing. The survey responses are plummeting, the weights are changing.

It's a warmer wind a January than usual. People are keeping more employees than usual. I don't I Don't think anybody knows what's up or what's down anymore. Uh, This is Wild Uh, Speaking of what's up or what's down, you've got the NASDAQ sitting down about one percent right now.

Honestly, for how terrible this report was, that's not even that bad. It could be even worse. Now we'll see what the day does. but this in it.

This is supposed to be a horrible report, right? Uh, the bond Market's barely responding 3.8 percent. The 10-year treasury is flat. It's flat. Three point, eight, One percent.

Uh, it is. This is just wild to me. Uh I Would say if I had to try to conclude this I would say first of all, it's bad news. I'm not trying to put bullish news or water this down.

January These are terrible reports. Now the Federal Reserve did tell us yesterday. January is the biggest month of the year for seasonal adjustments, so you have to take January with a grain of salt. The Federal Reserve said that.

Okay, keep that in mind. The FED said that That could be why the bond market is relatively flat right now. You would expect after that report, 10-year treasury yields to Skyrocket. Maybe the two years are moving.

Let's go pull the two. here. you know, your shorter term treasury yields not really 0.01 Yeah, I mean this is basically flat on the two year. Even so, so you don't actually really have a bond market.

that's saying. Oh my gosh, we're freaking out over this now. We'll see, maybe it'll change throughout the day. You do obviously have uh, uh, the NASDAQ rotating down about one percent and we'll see if it gets worse as sort of the day goes on.

You have to spy. Down point: eight percent. Uh, what's the dollar doing? Let's go to you up over here. we'll look at the uh uh dollar Index potentially uh well, yeah, nominally up.

I Mean do we have the dxy on uh Weeble Let's just look at the dollar. I mean you're you're the dollar should be rising. but at least per Weeble Here in pre-market you're not seeing much of a movement, but you would expect the dollar will be rising, but then again, yields aren't really Rising So maybe the Market's kind of like whatever it's January if we rally today which which we've seen this many times over the last multiple weeks, we've seen many times red, pre-market Green close of business if we rally today, What you're seeing is people taking money off the sidelines, throwing it in to the markets because they see this as potentially a short term by the dip opportunity and they're actually just writing off January as well January is just seasonal adjustment month and this is a weird season it's also having. It's very unique given that you're coming off of the pandemic.

That's the only way you could be bullish about this, because the actual reports are bad. So the fact of the matter is, it's bad. In fact, you know you're going to get more and more stories about this. But here, look at this: The PPI data was decidedly unfriendly to the disinflationary narrative.

Not only did it come in quite a bit higher than expected across all Aggregates last month true I mean this was terrible. These were terrible results. The prior data was also revised up. This left year-over-year readings higher than expected by half a percent or more across all Aggregates all Aggregates up over half percent.

Ouchie. Wow. cheese. Meanwhile, jobless claims remained well behaved, with a smidge lower than expected in continuing claims, pretty much right on forecast.

On the other hand, the Philadelphia Fed continued its zigzag relationship with the Empire survey printing well below expectations for manufacturing interesting and then of course housing starts got destroyed. But the big deal is PPI which is probably going to move up terminal rate expectations. But then again, I'm still not seeing movement in the Bond market. Maybe we'll get it throughout the day.

That's what I would be paying attention to. So if you want to know is the market discarding this madness then I think it's very important to think. Okay, let's go ahead and uh, and see what the Bond market does today Now Loretta Mester is uh, apparently just came out and started talking about how she saw a compelling case for a 50 basis point hike at the last Fomc meeting because she says that, uh, there's still a com uh, there's still a lot more work to be done on inflation that's not great. Uh, but with this PPI report, you're probably going to get some uh Wall Street Analyst starting to call for a 50 basis point hike again.

Uh, for the March meeting, we'll see how expectations end up pricing out right now. Right now, nobody's really expecting a 50 basis point hike. that would be a little bit of a rug pull. You do have markets selling off a little bit more though.

after Loretta's Master's suggestion that hey, we see a compelling base a reason for potentially a 50 basis point hike. or it's like she saw that in February, we'll see uh, if that sort of uh pressure ends up getting more support, uh in March I don't think it will I think it's much more likely that they would just attach another 25 BP hike in the summer. So instead of potentially pausing in May, you get a pause in June or July right and you sort of push back another 25. that's been relatively consistent with what Jay Powell has been looking at, but Loretta's Master's comments coming conveniently right after the PPI report suggesting now you know I was actually pushing for 50 and Fab uh probably is going to lead the market to take a little bit of a breather on uh, on on the rally that we've seen.

Again, if we end up pushing up throughout the day, it's in my opinion, a sign that markets are taking cash off the sidelines. they're buying the dip. They don't believe the January reports. If the market trends continues to Trend down, Maybe finally, after a strong jobs report, strong CPI report, and now a strong PPI report and I mean really strong PPI report? Uh, maybe it's time for the market to start waking up a little bit and realizing, okay, maybe we shouldn't be rallying straight to the Moon Although there's nothing like two week call options to take you to the moon or to zero Anyway, that's PPI for you Boy, that was a disaster.

But the good news is you can still get for 69 off with a flash sale for the programs on building your wealth. Link down below through Friday at 11 59 Pm. Boy oh boy oh man. Okay, let's uh, let's just briefly take a look and see how some of the markets are reacting because these PPI numbers are terrible.

Maybe cheaper alternatives as people end up switching to more expensive items, more expensive items or disinflation? I I I I Mean that's an idea that you know people end up downgrading, but so far it's people still have a lot more money than than generally people expect. We'll actually be talking about that and in just a moment. but uh, um first. I think I Want to talk about, um, the uh, what's it called? Um, we're gonna talk about the.com bubble in just a moment Steve asks how does this impact your rubber Band Theory you spoke about yeah? I I Actually think it reiterates the Rubber Band Theory right? What it does is it says that uh, the supply chains are so available.

but the problem is the input costs much to to your argument are still Rising right? Whether that's Commodities or whatever, right? Uh, and that's probably because you're still seeing a feed through of higher labor costs, not necessarily because consumers are willing to pay more, right? This is a producer report, so this actually has nothing to do with the consumer's willingness to pay more, It also, in my opinion, probably still has little to do with the future supply chain expectations of when consumers go back to re-spending I Think what it mostly has to do with is you still have Embers of inflation Whether that's a much higher wage costs than we had a year ago, or commodity prices which are still a lot higher than where they were certainly a year and a half ago. So I think you're still seeing that flow through. It is a little bit concerning that you're seeing though. the month over month numbers coming in uh, the way they are.

I mean look at for example: uh, the month over month numbers. Yeah, I mean the month over month numbers were terrible. Final Demand: Month over month Point: Seven Point Five Point Six I mean these are massive numbers. I mean at an annualized rate.

Just looking at core food energy trade, month over month, you're sitting at 0.6 That brings you out to an annualized rate of 7.2 percent. That's very, very high. Very very high. Uh, so it's not great.

Uh, again, the Rubber Band Theory applies to when consumers and the sort of consumer boom of potentially consumers coming back to respond: if markets start improving, are they going to be able to uh, are companies going to be able to support that demand? I Think the answer to that is yes. Well, I Think the big issue is when you still have the Embers of producer price inflation increasing. What you're really doing is you're relying on the cushion of companies to be able to absorb that. And so they end up taking it in the L in the margin right? I Think that's where you end up getting smacked is in margin unfortunately.

So this PPI report is very bad. I Think for for producers of of uh, of uh, really, anything that relies on high input costs in in the craziest way possible, companies that probably have the lowest producer price inflation or SAS companies right? And think about it, you're talking about tech labor, which isn't seeing the kind of increases in wage costs that you would see otherwise. uh, anymore. In fact, you're seeing more layoffs, right? this is.

although you know that's sort of countered by a little bit of the fact that Fidelity is now currently announcing they're going on a 4 000 person hiring spree. But that's a little bit different than the tech world. So the Tech: World In a weird way, you have softer inflation and Tech wages layoffs in in Tech and software doesn't as heavily obviously rely on Commodities I mean to the extent that they're in servers and server racks and stuff like that. But beyond that, you could scale software substantially more than you could scale factories uh, and goods that are exposed to sort of this producer price inflation that you're seeing.

So in a weird way SAS companies get the best of both less PPI and lower potentially Tech overhead. The valuations Assassins are still a little rich, but boy, you're seeing some of them rebound substantially now because, uh, the earnings are coming in pretty damn good for some of these SAS companies, which is not what was expected at all. So uh, we'll see what ends up happening. But yeah, that's um, it's pretty wild when it comes to this PPI report.

There's there's no doubt about that. This is a wild reform. So uh, yeah. Anyway, uh, let's take a very brief look here at what the markets are doing just to see the reaction in the am.

here. Looks like you're trying to get a little bit of a flattening and a rebound here. no certainty that that'll actually hold. Negative 1.3 on on the QQQ negative one on the spine.

Negative 165 on Tesla Arc down a couple percent and face down a couple percent. So it looks like you've got a little bit of potentially a sell down here after this hot PPI report Although not terribly much of a surprise uh, because that report I will say is absolutely terrible Terrible report, Terrible report, very bad report. All right. Next story Now we gotta talk about The Madness of the.com recession and how it could potentially relate and similarity to the recession that we might end up seeing here.

Obviously, we got a terrible PPI report which is very, very scary and suggests that when you have a bad jobs report bad CPI report a little bit hot on CPI with pretty sticky inflation in some of the parts and then a horrible PPI report. It either says the January data is rigged thanks to seasonal adjustments or things are actually getting bad again. maybe that second wave of Michael buru inflation is actually truly coming and something we have to look at is potentially this Jeffrey's piece which talks about the world of sticky tightening in the face of sticky inflation and Jeffries aligns our potential recession that we're walking into now with the.com bubble and I'll tell you there's nothing to ruin a bull's day more than you talking about the.com bubble in relay Nation to today's potential bubble popping in 2023 because we've only been suffering this pain for about one year and two months 14 months relative to the over 30 month.com bubble. Which means you're potentially only halfway through the pain and maybe when consumers do end up running out of money eventually, that's when you end up seeing not only the revenue declines that companies, but you also see EPS declines as producer price inflation ends up remaining hot.

Now again, it's weird. It's really weird because when you actually look at the earnings calls of some of these companies and you look at companies like Pepsi What do they do? They complain about higher wages from a year ago, they complain about higher input costs into their sodi pops, but they talk about not actually being able to raise prices anymore, not planning on raising prices anymore, that they're just working through the lingering effects of the increases in in the Embers of inflation. But there's not enough elastic demand to continue to support higher consumer prices. But you know that's just trying to soften the bear argument.

But let's see what the Bears are saying here. Jeffries says neither the labor market nor inflation is necessarily behaving as the equity markets would wish. Both are not cooling fast enough, and you have a deeply inverted yield curve and quite a weird correlation uh, between and well, in the bond market. And that this cycle is oddly similar to the 2000 to 2002 Tech bubble crash.

we bottomed and kind of drug along the bottom between September of 02 and March of 03 when the Federal Reserve finally broke things and actually fully had to U-turn and sort of bail out markets and then we sort of hit a bottom. Uh, we hope we don't have to go through that again. where the Federal Reserve goes so far and breaks something. But so far, the bear case today.

pretty dang loud, especially after those PPI numbers. But what do you have here with Jeffrey saying Jeffries is saying that January Uscpi was mostly in line with expectations, although uh, you did have year-over-year numbers slow just enough to still be be considered in airbinds. Slightly disinflationary. However, they don't believe that's going to stop the Fed from hiking rates in March and probably or potentially in May.

Instead, they actually believe that the CPI report points a picture of being very sticky at the core and no longer rapidly slowing around the edges. Now, you could end up hoping for more slowing around the edges if you actually get housing come down, given that housing made up about half of all the inflation that we saw in the CPI report for uh, the month of January. But you have declines in core Goods fall fading away, right? You don't have those declines coming in as fast anymore, and Jeffries warns about potentially the fact that we're going to end up going into a profit recession much like that of the 1970s. And when you start talking 1970s and.com bubble, you're basically a bear.

But they could end up having a point because consider the following: what they mentioned: I'm going to read this paragraph here because I think it's very useful. Presently, the bulk of companies that are generating sufficient nominal profits to service debts and dividends are averting a credit recession, while at the same time, the labor market is slowly, uh, being shed to protect margins. So in other words, right now you're basically saying, look, companies are seeing revenues, maybe stall out, but the reason they're able to kind of keep going is because they're trying to do whatever they can to protect their margins. Fine, But how long does that last? Well, it's a concern.

It's a concern on twofolds. One is actually debt restructuring because of the substantially inverted yield curve, any kind of debts that you had from before 2022 that have to end up getting refinanced in 2023, and four are going to lead to a lot more of a debt cost for you. So companies that have a lot of debt and at the same time are seeing their inability to potentially raise consumer prices more, but are seeing their producer prices go up could potentially end up facing bankruptcy or restructuring, particularly according to Jeffrey's along the lines of unlisted firms. And they believe that because of this, you actually end up seeing a substantially strong argument.

That said, and I'm kind of going to summarize this Jeffrey's article a little bit because they they talk in in tongue that's a little bit complicated. It took me a few reads just to be able to try to simplify it. Basically, what they're saying is, look, companies expect companies expenses. Uh, in, even though they're cutting in some places, companies expenses are going to rise, it probably should look like that.

There we go. companies expenses are going to rise thanks to higher refi costs on debt and sticky inflation. Uh, inflation at the core for uh uh, especially in in producer prices, right as we saw in the report today On top of that, this Market is starting to look eerily similar to the 2000 to 2002 bubble where basically we still have to face the EPS recession. That's what Jeffrey's arguing here.

This is very Michael burry-esque Michael Barry Still another 50 to go, the second half is coming. the second wave of inflation is coming. That's going to actually end up pushing company earnings over the edge. These Q4 earnings are an anomaly, right? That's sort of your bare argument right now.

your bear case right now. Now, when you compare the 2000 I think it's very useful to look at what I'm about to pull up. And no, it's not a reminder that this Friday at 11 59 PM the programs on building your wealth have an expiring flash sale that we're doing just for this month. Also, it's worth noting for those of you who want to know yes, you can Shadow me whether it's in person.

If we're traveling, you travel with me. Travel's not guaranteed. if you want to Shadow Me: you can do that. Uh, I don't sell travel I sell shadowing, right? Uh, if you want to join the stocks course to learn about, well, you get access to all my trades.

Whether they're good or bad, you get that. You get sort of my insight into the trades, but the psychology of money is very, very popular. Uh, as well as the zero to millionaire real estate investing course. Very, very popular as well That's probably our most popular bundle is one and two.

If you want to get into managing properties yourself or renovating them and saving money on Renovations We've got options there and of course, growing your income. We start the Elite Hustlers Live stream this Saturday and that's a custom live stream that we do with just, uh, people trying to grow their business this Saturday So that's coming up, but before we uh, keep going on El Corses and that's expiring Flash Sale I Want you to look at something here I put this together and it really again. maybe I'm being Mr Mr bullish over here. but I want you to compare for a moment with me the NASDAQ in the.com bubble which the NASDAQ is Tech heavy, right? So this is.

let me make this very very simple and very clear. Blue line equals Tech Ndx 100 NASDAQ 100 White bars equal broad Uh US market right? the S P 500. So what I also want you to know is that this represents earnings per share eps. And when people compare the.com bubble to today I Personally think they're being slightly extreme, the reason I say that is because I want you to look at the earnings of the NASDAQ relative to the S P 500 in the.com Era So let's zoom in for a moment into the.com era.

Here is the.com Bubble in this red square right here. In fact, maybe I could even highlight it in red. No, it's not working. Anyway, the point is: the blue line right here is under and this is based on a factor of 100 starting here.

So in other words, they're scaled at a factor of 100. So they're scaling together. That's really important for those of you statisticians who want to know how I set this up set to a factor of 100 so we could see how they diverge in growth. But what I want you to see in the.com bubble is first of all, earnings in the NASDAQ started below the S P 500.

then earnings basically went to zero during the.com bubble. This is not earnings growth. this is straight up earnings. So that means in the NASDAQ you had companies that were not very profitable.

This was basically the.com bubble was an era of speculation of profitless tech companies. That's what the.com bubble was. Now, zoom out for a moment, look at what has changed. Look at that.

You should be able to understand this graph yourself. Look, I'm going to hide myself so you can see it yourself. Go take a screenshot. Okay, now's your chance.

Okay, good chance over what's the difference. The blue line has vastly exceeded the white bars. The NASDAQ earnings have gone up by a factor of 847. So call it 8.08 times on a factor of 100, right? So 8X earnings on NASDAQ and 5x on S P 500 relative to each other on a nominal basis, starting then adjusted to a factor of 100.

So this isn't like growth, right? We're not comparing growth rates. Obviously, if you start at zero, the growth rate is going to be higher I'm. actually talking net earnings. You had almost no actual earnings.

Now, when you compare the actual earnings between the two, the NASDAQ has over over 50 percent more earnings more EPS than the S P 500. So over time, the NASDAQ has become the earnings Powerhouse 62.5 percent greater earnings today than the S P 500.. So when you look back to the.com era, you look at speculation in tech stocks where there were no earnings where earnings were below the S P 500.. today you look at big NASDAQ 100 Tech Companies earnings are 62 percent higher than S P 500 companies.

In addition to that, let's go ahead and compare ratios of the.com era to today. These are the forward P E ratios for the S P 500. In this case, so the S P 500 and this the whole point here is to compare to the.com Arrow right? I Want to compare to what's happening in the.com Era today. So again, we compare the NASDAQ and S P 500.

Now we're going to move away from that. We're just going to look at the S P now and compare it to the valuations we have today compared to the.com era. During the.com era, the S P 500 was selling for multiples between 24 and 26. we peaked out over here at roughly about 23..

But the point is, where do we sit Now on forward P E ratios for the S P 500. This is where we sit right now I drew a red line taking you all the way across. On the S P 500, we're sitting slightly higher than where the S P 500 ended up automating out S P 500. forward P E ratios ended a bottoming at about 2002 in about at about 14 to 15 times uh, earnings which is a little bit closer to where we bottomed out at the end of 2022..

So you could potentially make the argument that if I draw a line across that we've already hit the worst. we've already hit that bottom. Uh, you can see what's slightly maybe a couple points lower there in the.com Era So that's worth noting that did we hit the bottom already? Or are we going to retest that bottom? We'll see over here. If you look at the mid caps S P 400, you're actually aligning where we are now roughly with the bottom of O2.

Look at small caps. Same story, All right. So that's interesting. So even though everybody likes to compare to the.com Bubble, we're actually not too far off on uh, the the A relative basis.

you know, comparing now to the bottom. Then in any of these charts, again, you look at, look at the S P 600 small Cap 600. where we are now basically aligns perfectly with the bottom over here. In fact, we went lower on a forward PE basis on the weekly basis.

Uh, compared to the.com Bubble we've already been lower. Let's look over here at Peg ratios. This is a potential bear argument when you look at S P 500 growth rates. You are actually paying more for growth today than what you were paying there on the S P 500.

Now this is where you could potentially make the argument. Well, this is why you want to position out of the S P 500 and into Tech because Tech growth is more resilient than S P 500 in total, where you've got a lot of that consumer uh, staple. uh, the consumer staple stock sitting in the S P 500 and we expect their earnings growth rate to falter relative to maybe Tech that could still recover. We'll see, we'll see, maybe that's at its bottom, right? So you've got mixed signals.

I'll give it that, you've got mixed signals. Here's another one. forward. PE Growth versus Value just gives you a growth versus value chart.