Jerome Powell Just Paved The Way For A Market Rally Higher

0:00Hello everyone, it's Fed Day. Jerome Powell had his big boy press conference and gave a big speech. the latest humanoid robots ready to clean your home. Neuralink can now control robotic arms. It's going to blow your mind. And the city of Boston has lost their mind as they try to ban self-driving cars. We're live today from the desk of Anthony Pompliano.

0:29Before we get into today's show, I need your help. My goal is to get to 1 million subscribers on YouTube. We're making progress, but I need your help to get us there. We currently have 34 ,868 subscribers. Hit the button and let's get into today's show. All right, ladies and gentlemen, today was a very big day. We had Jerome Powell and the Federal Reserve. They cut 25 basis points off the interest rate and the world all was paying attention to. What else are they going to do? First up, Powell said that the December rate cut is not a foregone conclusion. So hold your horses there. In terms of the rate cut, that was expected.

1:04But we also got guidance that quantitative tightening is going to end on December 1st. That was pretty expected as well. Powell then went on to say something very interesting. He's still watching the job market, but he says, we do not see the weakness in the job market accelerating. And then of course, inflation. What's he think about that? Well, Powell still says that he's not worried about inflation. The direct quote from Heather Long here was inflation away from tariffs is actually not so far from our 2 % goal. And overall, Powell thinks that it's a good picture. I don't know if I necessarily agree with him on everything, but the fact that he cut rates, that's good.

1:35But there was something inside the room that actually was a little bit different than what everyone was expecting. Holger Zizepitz, he points out that there was two people that dissented. The first was Stephen Myron. He dissented in favor of a 50 basis point cut. And Schmidt, he dissented in favor of no rate change at all. See, here's the thing, is that ultimately the Federal Reserve, they're behind the curve. They've got to do something to address the labor market, and they've got to continue to get the economy cheap capital. Because everyone was pricing in a 25 basis point cut, the bull market can continue.

2:07Stocks and Bitcoin are likely to continue going higher. And my guess is that investors, their portfolio, they're going to be very happy campers. So now that we know that they're going to cut interest rates, the next question becomes, what's going to happen in the market? Should we expect asset prices to go up or just stay flat. Carson Group's Ryan Dietrich reminds us the past 21 times the Fed cut interest rates with the S &P 500 within 2 % of an all-time high. Stocks were higher a year later 21 times, 100%. Ryan also goes on to explain the last two months of the year, November and December, have never been lower when the S &P was up the six months leading up to them.

2:45In fact, the average return was a very impressive 6%, which is nearly double the average return for the usually bullish last two months. So my personal big takeaway is that Powell and the Fed, they're going to play their usual game of word salad today. They're going to create drama, and frankly, the media is going to eat it up like a soap opera. They can't help themselves. But none of that's going to matter. As long as we get the rate cut, stocks and Bitcoin are going higher. There's nothing that the pessimists, the doomsday predictors, or all the haters on the internet can do about it. It has long been anticipated that humans and machines they were going to somehow come together.

3:23Now, of course, there's things like the singularity where you get the machines going inside of the humans. We'll talk about that in a second. But also this idea that humans were going to be surrounded by machines. The machines were gonna help them better improve their lives and do things that they don't wanna do. And we're now seeing that future come flying at us. We are seeing the rise of automation, the rise of robotics and the rise of machines everywhere in society. Let me give you two examples that I think are worth paying attention to. The first is the Neo Robot from One X. This new robot is going to cost$20 ,000 to purchase or$500 a month to rent.

3:58And it is purpose-built humanoid to come into your home and do all kinds of manual labor. Look at this robot and what it can do.

4:21Let's go.

4:31so

4:49Now, when I think about this, the future is going to be wild. We're going to have humanoid robots that are cleaning our homes, doing our laundry, making us food, walking our dogs. Maybe we'll be watching our children for date night. And frankly, it's going to tell us what to do. This future, this is something that I think a lot of people are going to be excited about because the technology is only going to get better and the cost is only going to get cheaper. And so if we can actually take these humanoid robots and put one in every single purpose home, if we can actually take these robots and put one in every single person's home and do it in a cost-effective way, that is going to be an explosion of productivity for the human race.

5:24It's the future that I'm excited about. The second example is Alex Conley, who's got a spinal cord injury. Alex recently is the second patient to undergo neurosurgery, to have Neuralink's N1 implant put into his brain. As part of that, Alex is the first person in the world to use a brain-computer interface to actually control a robotic arm. That's right. He's got a device in his head that is connected to a robotic arm. And in this video, he's explaining how to actually cook some food. Take a look at this. I'm Alex Conley. I fractured C4 and C5 in my spinal cord and it was diagnosed as a complete spinal cord injury.

6:03I feel kind of honored that they picked me to do the robotic arm. There's so many people that don't have the support system that I've got, the people that I've got. I know even just the robotic arms sit on the side of their chair, just another step toward being independent. it. We used to see spinal cord injured patients come in, we would operate and stabilize their necks, and then we would send them on their way to rehab and that was the end. There was nothing more we could do for them. One of the reasons I'm so excited about Neuralink is that we can tell patients finally there's something more we can do for you.

6:42With patient one, we gave him his digital autonomy, things that allowed him to interact with his computer. With patient two, we went one step further. We gave him all that, but now in addition, he can drive a robotic arm that lets him turn on the light switch, open a door, or move something that's ahead of him. Before the accident, I was very mechanical and hands-on, and building parts and fixing things was pretty much my whole life. But then the accident happened and kind of took all that away. I wasn't able to express myself the way I usually could. This is a straightforward procedure. They get their surgery in the morning, they're observed overnight, they go home the next morning.

7:28Barrow has been incredible and very thankful that I was allowed to do this and be a part of this journey. The Convoy team is the team at Neuralink that's working on assistive robotic devices controlled by the brain implant, physical devices in the real world. You just think about, I'm gonna take my arm and move left. I'm gonna take my arm and move right. and from that we issue commands to the robot that then does inverse kinematics and math to make that motion happen. Imagine a world where we restore the things that were lost. We start with an open loop calibration where we have a virtual task on the computer screens and those virtual sessions are like practice and training sessions.

8:04We do a lot of them sort of day after day after day to make the models better and better and to get Alex familiar with the process that we're using. And over time he gets really familiar with all the numbers and really familiar with all the terms to the point where he's suggesting things that we didn't think of ourselves that are great suggestions. We spend a night retraining models. We spend a night working on the robot software and a little bit of the hardware even. They got back the next morning and it was just, it was remarkable how much they changed overnight. It worked 10 times better than it did the day before.

8:37Now, when I see this, all I think about is if somebody can have a piece of technology implanted in their brain and they now can control machinery that's around them, like a robotic arm, that opens up a world of possibility that most of us have not previously been thinking about. So whether we're talking about machines that are working in our home or machines that are being put into our brain, the future is all about robotics and automation. This future is coming fast and I think it's much, much closer than most people give it credit for. And so if you're an investor, you gotta pay attention to this stuff.

9:09You gotta learn about it because it's going to have a profound impact on your portfolio. We're going to have to talk about how dumb the city of Boston is being right now. Waymo's Ethan Teacher recently wrote that Boston is considering becoming the first major city in the world to ban fully autonomous vehicles based entirely on vibes. That's right. The data does not suggest they should do this, but they're thinking about doing it anyways. Waymo is involved in five times fewer injury-causing collisions than humans, and employment in San Francisco's taxi and limo industry grew by 7 % last year. Both of those things are narrative violations.

9:44What we are seeing is that machines are better at driving cars. Duh, they're safer. They're using technology to be better than humans. On top of that, people have been very worried about self-driving cars eliminating jobs. But instead, in San Francisco, what we saw was an increase in jobs related to driving. And so ultimately, the city of Boston, they got a choice to make. Do you want to be part of the future? or are you gonna rail against that future and get stuck in the past? My guess is that the people want self-driving cars. You can see in every single city where these cars go in, people start using it.

10:17They start adopting it. They realize that it's safer, it's faster, and it is cheaper. And therefore, I think that regardless of what the city of Boston decides today, eventually they're gonna capitulate. You're gonna have self-driving cars in the streets of Boston and all the politicians who tried to stop it, they're gonna look pretty dumb. That's it for today. Thank you guys so much for watching. please remember to subscribe on YouTube. We've got 34 ,868 subscribers, and I would appreciate it if you became the next one. And I'll see you guys live tomorrow from the desk of Anthony Pompliano.