Conditions Are NOW PERFECT For A MASSIVE Market Rally

0:28Hello, everyone. We've got a lot to discuss today. Economists and market commentators, they predicted sky-high levels of inflation after the fury of tariff announcements coming out of Washington, D.C. earlier this year. Now, fortunately, those predictions have not proven true in the last few months. Trueflation, the leading real-time alternative inflation metric, that is showing inflation started the year hovering around 3%. That's high. But then inflation fell to approximately 1.2 % in April, and now inflation sits near the Fed's target of 2%. So this means that despite all the chaos, all the noise, inflation has fallen on about 33 % since the start of the year.

1:01That's good news. It's not exactly a small number either. This lower inflation level should be a welcome development for citizens and investors alike. In fact, most people in the economy, they were bracing for higher inflation. That's all the media would talk about for weeks. But surprises are not always bad. The Citi Inflation Surprise Index shows that the United States has the largest gap between three months ago and today. That's good too. and that gap is working in the favor of everyday Americans and their families. The economy is rocking and inflation is nowhere to be found. So many people are ready to celebrate.

1:31But hold on one second, pump the brakes. I would be very careful here. We're not out of the woods yet in my opinion. While the tariffs are not a cause for concern, the big threat looming on the horizon is that the massive government spending is underway. We are witnessing incredible spending. This has always come from both sides of the aisle and this is no different because they don't have a choice. E.J. Antony highlights that the U.S. government has increased the national debt by approximately half a trillion dollars since they lifted the debt ceiling back at the beginning of July. $500 billion in one month.

2:03Bad, bad, bad. The money printer is cranking and the dollar is debasing. Situation we're in, it's just plain weird. You have tariff revenue exploding higher, inflation lower than expected, and people like the good old Bill Maher. Bill Maher thought that the tariffs were going to sink the U.S. economy earlier this year. But now Bill is admitting that he was completely wrong about what was going to happen. Take a listen to what he said. I remember I, along with probably most people, were saying at the beginning, oh, you know, by the 4th of July, somebody had to think how the country was, the economy was going to be tanked by then.

2:36And I was kind of like, well, that seems right to me. But that didn't happen. Now, it could happen tomorrow. I'm just saying that's reality. So let's work first from the reality of that, not from I just hate Donald Trump. Because that's boring and doesn't get us anywhere and leads you to dishonesty. Because the truth is, I don't know what his strategy is. But look, the stock market is at record highs. I know not everybody lives by the stock market. But I also drive around. I don't see a country in a depression at all. I see people out there just living their lives. And I would have thought, and I got to own it, that these tariffs were going to fucking sink this economy by this time.

3:25And they didn't. Now, it's a great reminder to all of us to never have 100 percent confidence in your assessment of a situation. You got to think probabilistically. And congratulations to Bill for changing his mind. The odds have always been in the favor of the U.S. economy strengthening if the government was putting pro-America policies in place. Now all eyes are going to shift to the Federal Reserve and the FOMC. They are beginning their two-day meeting today. The consensus on Wall Street is that Jerome Powell will not change the interest rate, but that doesn't mean we won't get a surprise rate cut.

3:53And a surprise cut would send stocks, Bitcoin, and gold significantly higher. So whether we get the rate cut or not, which I don't think we will, but maybe, every data point is telling us that asset prices are going to go up and to the right. Politicians can't stop printing money, and the Fed will eventually have to capitulate and cut rates. So investors who are going to win big are the ones who simply just get long and chill. If you watch this show, you know that I am very bullish on humanoid robots. They're gonna be doing all kinds of stuff, including our chores now, it looks like. The latest humanoid robot to come out of stealth is something called Loom, which has introduced a robotic lamp that sits in your bedroom and it'll do chores while you're gone.

4:31Take a look at this video right here. This is crazy. Now, one of the best comments I saw online is hopefully this robotic lamp doesn't get confused and start trying to do things while you're sleeping in the bed. But the idea that now we're going to have robots that look like normal everyday household items, but they can do things for us when we're not around, that's pretty cool. And over time, there's going to be tons of smart products all over our homes that will be working for us. But it's not just hardware in your home. We're also seeing things like Shortcut, which is a brand new company that has demoed a new AI Excel agent.

5:01And they claim that it beats first-year analysts from McKinsey and Goldman head-to-head 89 % of the time. That's kind of crazy. You're probably thinking this looks exactly like Microsoft Excel. And that's right. It has near perfect feature parity. You can edit any existing Excel file and export back to Excel, but it can also do your job. I had it build a multi-tab DCF model here with assumptions, drivers, a Monte Carlo simulation, comps analysis, sensitivity tables, and a final dashboard. And it did it in about 10 minutes. You can export your file and create a share link, and no one would ever know that it was made in shortcut.

5:34And so if you say to me that you can all of a sudden and have AI revolution, where we have hardware in your home doing work for you, but also at work where we can actually beat all of the individual human type analysts with a piece of software, I think the world's gonna accelerate very quickly. And so what happens when we get to that world acceleration? Well, Jensen Huang put it perfectly. He said he's created a lot of billionaires. Take a listen to this. We see this capital being applied to human capital in a way that we never thought was possible. It used to be NBA players signing$300 million contracts.

6:05Now it's model researchers. And then there was a post this weekend that said that there was a person that was offered a billion dollars over four years by Meta. Now, if that's happening at this layer, why hasn't it happened at your layer? Because you are the enabler of all of that. And how do you think all of this human capital is going to actually play out? First of all, I've created more billionaires on my management team than any CEO in the world. They're doing just fine. Don't feel sad for anybody at my layer. Yeah. Everybody's doing okay. Yeah, my layer is doing just fine. The big idea, though, is that you're highlighting is that the impact of 150 or so AI researchers can probably create with enough funding behind them, create an open AI.

6:46150 people. Yeah. DeepSeek's 150 people. Boonshot's 150 people. Right. If you're willing to pay, say,$20 billion,$30 billion to buy a startup with 150 AI researchers, why wouldn't you pay one? Right. Now, to me, that's frankly one of the biggest flexes that you've ever seen. Somebody's saying that I created a bunch of billionaires on my executive team. That's what happens in a world that is accelerating and using technology to become more efficient and more productive. Now, I know that billionaires, all of a sudden, everyone hates them, everyone thinks they're bad people. But Jeff Bezos, he made billions of dollars because he allowed it that you could press a button on your phone and something would get delivered 24 hours later.

7:23Elon Musk, he's literally helping us get the space. He's created an electric vehicle revolution and he's doing tons of other amazing things to push humanity forward. Jensen Huang is literally helped powering the AI revolution. And many of the other people who have been successful to the tune of billions and billions of dollars, they simply find a problem in society and they solve it. And in my opinion, we should actually reward the people who are problem solvers, who help make all of our lives better. So I'm perfectly cool with these people getting billions of dollars. As long as they solve a problem, it's really big and painful.

7:52And so as the saying now goes, we need more billionaires, not less of them, because we need more problem solvers, not less of them. I think that's where the world's headed. Before I let you guys go, I quickly want to comment on the horrific violence that happened in Midtown Manhattan yesterday. As many of you guys know, I live in New York City. I work in New York City. We run our businesses in New York City. We've got plenty of employees that also live and work in New York City as well. There was a shooter who walked into an office building and he killed four different people. Obviously, that horrific violence has no place in our society.

8:21Myself, my family, and our employees, we all have these people and their families in our thoughts and prayers. But I took away two things from yesterday that I think are worth calling out. The first is that the NYPD, they did a fantastic job responding to the situation. These men and women are constantly critiqued in our society, but they showed up and rather than run away from gunfire, they were willing to put their lives on the line and they ran towards it. They wanted to neutralize the threat and they were willing to actually put themselves in danger to protect innocent civilians. It's the job of a police officer and we should give them way more credit for being willing to do it.

8:53On top of that, there's this picture from Blackstone where they barricaded the office so that the shooter couldn't get onto their floor. And I keep coming back to the idea that there was a man or a woman who simply understood the gravity of the situation and they had the courage and the leadership under distress to think on their feet and act. They were able to rally their colleagues and make sure that they actually created a situation where they were safer. That type of decision making and leadership under fire, that's the type of thing that really is something that I would consider heroic. And so whether it's police officers or everyday Americans, there are heroes that walk among us.

9:26And yesterday's situation, it's sad, it's unfortunate, and I hope that those situations stop happening. At the end of the day, when you put people in these situations, there's a fight or flight mechanism that takes over. And there's a lot of heroes that stood up and they were willing to do the things that were needed to make sure that a lot less people got hurt yesterday. That's it for today's show. Hope you guys are enjoying this. I'm having a blast putting it together. Please make sure that you're following us on X and please, please, please subscribe on YouTube. I'll see you guys live tomorrow from the desk of Anthony Pompliano.