"Buying The Dip" Isn’t A Meme, It’s Outperforming Wall Street

0:00Hello, everyone. Retail investors can't stop buying the dip and they are making money. A guy in San Francisco just proved how pervasive AI is going to be. An open-door CEO, he just pulled back the curtain and revealed how big companies are becoming more efficient. We're live today from the desk of Anthony Pompliano.

0:25Before we get into today's episode, I need your help. We currently have 41 ,431 subscribers on this channel. My goal is to get to a million. Maybe we're going to do it in 2026, but it all starts today. Hit the subscribe button and let's get into today's show. All right, ladies and gentlemen, retail investors. You know those guys on the internet? They've been buying the dip for years. And actually, it's proven to be a pretty good investment strategy. But here's the thing. This is not a new idea. We love to reinvent things. But decades ago, Jesse Livermore, famous investor, he spoke often about buying weakness within positive trends.

0:59And then Benjamin Graham and Warren Buffett, they popularized the idea of value investing or just buying things for less than their worth. Those timeless investing principles, they're wrapped in clinical language. They sound like smart, sophisticated stuff, but that clinical language is unlikely to resonate with young people in a social media generation. But you know what would spread like wildfire? Four letters that I've seen regurgitated over and over again across the internet. BTFD, buy the effing dip. I can't tell you how many times I've seen those four letters posted online. There's a rallying cry for a generation of investors who realize that they're playing a game of chicken with the Federal Reserve.

1:36But America's central bank, that central bank will always blink first and the retail investors know it. Now, Wall Street Journal reporter Gujin Banerjee, she highlights recent Bank of America data showing the buy the dip trade is having one of its strongest years of the past century. This graphic perfectly encapsulates what retail investors inherently know. The Fed has no choice. They're backed into a corner. They have to prop up the market. They can't allow the stock market to fail, nor they can stand by while the market hits a free fall. That's why I have continuously said for years now, prolonged bear markets have been outlawed.

2:12You are not gonna see an 18 month long recession or bear market anymore. We can get short market drops. We saw that during COVID or during the tariff panic earlier this year, but the government, the Fed, the treasury, they're always gonna step in and ensure that asset prices go right back to all-time high prices. is an important backdrop and context because it puts immense pressure on the mainstream narrative that consumers are pessimistic about the economy. So let's take a little bit deeper dive into this. Adam Kobese, he shows that the U.S. consumer sentiment assessment of current economic conditions is now at the lowest level on record.

2:47Adam's just sharing the data that's being published by the University of Michigan. But if you think about it for a second, this data is obviously wrong. There is no way, zero, zilch, that consumers collectively are the most pessimistic right now that they have ever been on the economy. And do you know how I know that? Because half of the country believes the exact opposite of what the University of Michigan is telling you. Take Fox Business host Larry Kudlow as one recent example. He tweeted, get ready for Trump's 5 % economy. We haven't done it in over 40 years, but I believe it well could happen next year or the year after that.

3:22everybody's underestimating President Trump's reimagination and rejuvenation of a new capitalist path to prosperity. Now that's Larry Kudlow from Fox Business. He obviously has a slanted view in terms of politics. But the White House's David Sachs, he just reposted Kudlow's comments with additional color. He said Kudlow is right. Inflation is coming down, interest rates are coming down, and tax cuts are coming in 2026. These are the conditions for a Reagan-like economic boom. Just as important, we have an AI investment super cycle driving an extra 2 % of GDP growth. Democrats like Bernie Sanders have figured this out.

4:00And so they're doing everything they can to sabotage the infrastructure buildup. Republicans should not be gaslit about this. As with climate change, most of the concerns have been amplified to hoax level. Now, this tweet echoes thoughts that David Sachs shared on a recent episode of the All In Podcast. Take a listen here. And what we're seeing now is inflation is now coming back down, and we're seeing the number of government workers come down to a more reasonable level, and the private economy is making up for it. We still have a relatively historically low unemployment rate. So those numbers look good.

4:35Then you look at the deficit. We've reduced the deficit year over year by$600 billion. That will help bring interest rates down. And then on prices, you got the lowest gas prices in five years, below$3 nationally. And then finally on wages, real wages are up by over$1 ,000 on average. And it's$1 ,300 for factory workers,$1 ,800 for construction workers. And again, that's a big change from the buying years where you saw that in real terms, wages went down by about$3 ,000 on average per worker. So look, I mean, it seems to me like we're on the cusp of a golden age here. I don't see how the numbers could really be better.

5:18And then on top of it, again, you've got this AI tailwind, which I think is a huge positive, not a negative, which is adding roughly 2 % GDP growth every year because of huge capex investment with so far no job loss associated with that. So I would just say, sit back and enjoy this. I think we're headed for a gangbusters 2026. Rates are coming down. Inflation's coming down. And you're also getting tax cuts going into effect next year because of the big, beautiful bill. No tax on tips, no tax on overtime, no tax on social security, plus the standard deductions being beefed up. So people haven't even felt the benefit of those tax cuts that's coming in April.

5:57I don't see how things could be much better. Now, again, forget politics for a second. You may believe the economy is doing well, or you may believe that it's doing poorly. Regardless of which side of the debate or which side of the aisle you're on, there's about half the country that believes the exact opposite. And that's okay. That's how it's supposed to be. And the data though, suggest that investors are not listening to the political noise. Investors are very bullish right now. Kobesi explains that investors are piling into equity ETFs at a record pace. The Vanguard S &P 500 VOO posted plus 40 billion in inflows last week.

6:29It's the largest intake this year. Year-to-date, VOO inflows are up over$100 billion, the largest on record for a single ETF. The enthusiasm in markets is not just from retail investors either. The Financial Times, they recently reported that macro hedge funds are enjoying their best year since at least 2008. Now, this brings me back to buying the dip, BTFD. Retail investors, they figured that out, and they understand that there's a Fed put in the market. And they've been aggressive buyers whenever there's weakness in the market. Institutional investors are starting to catch on to the game too.

7:01Think about this for a second. Where else are you going to put your capital? Are you going to sell stocks to sit in US dollars or treasuries that are guaranteed to lose value over time? No, of course not. It would be insane. It literally is the definition of insanity. As long as the government's going to print money and debase the dollar, stocks are going to go up forever. Maybe you have to ride out a little volatility in the short term. But holding public equity indexes is most likely one of the simplest strategies that works in finance. and it continues to work decade after decade. And if the S &P or similar index wants to dip for a few days, there's gonna be a line out the door of people that are ready to buy more.

7:40Buy the effing dip. That is the mantra for the next generation. All right, this is a fun story that I saw this weekend and it got me thinking about a lot of things. So there's a guy in San Francisco. He claims that he got three parking tickets last month, but rather than keep forking over cash to the government and just burning all of his savings, he decided to build a solution. There's a problem. He went and he built a solution. That's what America's built on. Now, this guy built a device that has a camera and GPS in it, and it recognizes the parking zone that he parks in, and it pays for the parking automatically.

8:12Now, this is the type of innovation that America was created on, but more importantly, it proves how pervasive artificial intelligence is going to be in your everyday life. Take a listen to how he built this device. You built a GPU-powered device to pay the meter for you. Can you show me how it works technically? Yeah, let's go inside the car. So second you pull up to the nearest parking meter, it starts scanning all the parking meters across the street using segmentation model. It segments all the parking signs, parking meters, then it finds the nearest meter, validates it through GPS validation.

8:43It uses OCR, the Optical Character Recognition Model. It used to detect and recognize the numbers even without very good quality pictures. Once it has those numbers read and it knows that's the meter, it calls API every minute so you don't overpay for your parking. So that's a lot of computing happening in such a small form factor. What's powering it behind the scenes? This is Nvidia Jetson or Nana. It's a teeny AI edge device. It makes you available to run AI models computer vision models. So this thing is kind of like a Raspberry Pi But just specifically for AI models. Yeah, exactly. I got three parking tickets in San Francisco Since I moved to city I got a lot of parking tickets because I'm too lazy to put cars here, you know.

9:20All right Well SFMTA your days might be numbered So my big takeaway from this is that this guy just gave machines eyes. And that's what's going to happen moving forward. Machines are going to get eyes and ears. This is wildly underestimated right now. These machines are going to become smart in a way that was previously thought impossible. It's not hard to see a world where now the car can drive itself. It can identify a parking spot. It can park itself, identify the parking zone, and then it will pay for the parking spot without you ever thinking about it. That type of feature would not only increase efficiency for humans.

9:52You don't have to spend time parking. You're not going to actually get charged more money. It's going to save people money, but it's also going to create all kinds of efficiencies now as second and third order effects. If the cars can park correctly and it can pay for parking, do we need to have cops that walk around giving out tickets? Probably not. Maybe actually the police will respond by having their own cameras, their own GPUs, their own computer vision. This is where the world is headed, whether we like it or not. we are going to see machines that have eyes and ears. They're going to be able to consume information.

10:26They're going to be able to use superhuman intelligence right there on the device itself. And then they are going to be able to do things in the world, especially from an eugenic perspective. And so, yes, this looks kind of like a little toy that one guy built for his car to solve a very small problem. But the fact that a guy can buy a GPU, he can put it in his car. Now, all of a sudden, he can ensure that he won't actually get charged the parking tickets anymore. It's more of a wedge into the market to show us. These computers and superhuman intelligence, this embodied AI, this is coming and it is going to be everywhere.

11:02And it's going to have a profound impact on your and my life. Now, as you guys know, we talk a lot about how AI is helping companies become more productive. They're producing more code, more revenue, more profits. But the thing is that they're all promising to do it with less employees. The latest example where we see this happening is from the CEO of Opendoor. He shared a graphic this morning that shows the zip codes that the company will purchase homes in. He compares last week, which is the first graphic, to this week in the second graphic. Now the business essentially went national overnight.

11:32That's pretty cool and great for Opendoor shareholders of which I am one. But the bigger story here is how they did it. Kaz says that the first photo took 10 years of work, but it was all done without artificial intelligence. The second picture took 10 weeks of work, but they used artificial intelligence to do it. So 10 years of work got them a very small penetration into the United States, but they didn't have AI on their side. Now, all of a sudden, they start using artificial intelligence to write code and do internal operations, and they go national within 10 weeks. Imagine the compression of time to not only do it in a shorter period of time, but to get more done.

12:08When we talk about what is happening in corporate America and with these businesses, this is a prime example. Every business I know that's worth anything, they're all using this technology internally. They're going faster. They're doing more and they're doing it with less employees. That means they're more productive. They're more efficient and they are driving more revenue and profit. If a company can drive more revenue and profit in a more productive and efficient way, that means they're more valuable, which then pulls us back. That is why investors are so bullish right now. is because all of the critics, all of the bears, all of the people who think that the stock market can't go up forever, they're yelling and screaming about the historical valuation levels.

12:46They're yelling and screaming about everything is a bubble. But if you just look at this from a fundamental first principle standpoint, these companies are using a technology to do things that you could have never done before. And as they create more efficient productivity and profit, that means they're more valuable, which means the stock market valuations are going to go up. And no, the critics aren't right. There isn't some big bubble right now. Instead, the exact opposite is true, is that these companies are actually probably very undervalued because we're starting to hit escape velocity, not only of the productivity internally, but of the revenue and the profit.

13:22What other time in history have we ever seen a multi-trillion dollar company accelerating 20 or 30 % year over year growth? It just doesn't happen. But now it's possible with this new technology. And so this year in 2025, I've had a blast putting together this show. We're constantly trying to figure out how to talk about financial markets, how to talk about technology like artificial intelligence, and also talk about brand new parts of the finance industry like Bitcoin. When you put all this stuff together, it is creating this innovation boom. We are seeing this happen across the economy. Rockets, drones, DNA sequencing, self-driving cars, Bitcoin, AI, and much, much more.

14:01This is an incredibly exciting time to be paying attention to the intersection of finance and tech. And that's why we work on this show every single week. Now, this is going to be the last show for this year. We'll see you again on January 5th. I'm going to give everyone here in our building two weeks off. Let them get their batteries recharged. Maybe they'll go home and they'll use some of this AI to get smarter. And we'll come back and we're going to hit it hard in 2026. I genuinely appreciate all of you constantly watching this show. We're having a blast putting it together. It helps me learn every morning.

14:30Hopefully it's helping you in your day-to-day life as well. make sure that you subscribe to the YouTube channel again our goal is to get to 1 million subscribers I need your help to get there and we'll see you guys next on January 5th start of the new year