DeepSeek Turns into DeepSink for US Stock Market

0:00With Robinhood, not only can you trade individual stocks and ETFs, you can also seamlessly buy and sell crypto at low costs. trade all in one place get started now on robin hood trading crypto involves significant risk crypto trading is offered through an account with the robin hood crypto llc robin hood crypto is licensed to engage in virtual currency business activity by the new york state department of financial services crypto held through robin hood crypto is not fdic insured or sipc protected investing involves risk including loss of principle securities trading is offered through an account with robin hood financial llc member sipc a registered broker dealer this is right about now with Ryan Alford, a Radcast Network production.

0:36We are the number one business show on the planet with over 1 million downloads a month. Taking the BS out of business for over six years and over 400 episodes. You ready to start snapping necks and cashing checks? Well, it starts right about now. What's up guys? Welcome to right about now. It's Friday, Today, January 31st, our weekly marketing and business news of 2025. Almost through the first month, end of the month, but it's not the end of always having my good buddy, my partner in crime, Chris Hansen. What's up, Chris? What's up, Ryan? How are you doing today? I'm good, man. You know, just all in the news, all up in the news.

1:25all up in it baby that's where we like to be all up in the news like that could have been the name of the show all up in it the news deep in it deep in the news uh i had a buddy who suggested the name funny business i thought that was kind of clever you know but hey nothing's funny not everything's funny we have we we have a good time but we try to bring you all the latest breaking insights. I'd say the insights on the news and our take on kind of what's going down. Like we mentioned last week, before we could announce the decline of TikTok, it had already gotten back up. So, you know, we have a highlight clip out there actually kind of painting that reality of how fast the news cycle and Trump continues to move fast.

2:13So lots of shit going down and uh it's just a little bit of a blur because i'm busy like i'm in a busy season with with work and other things still hiring a few people and doing things so i'm not like as in tune you know made them to my uh x updates or breaking news things i think sometimes something that's like somebody will tell me about or text me about like in the morning by the time i've learned about it in the afternoon like it's on to something else the news cycle flies they're moving quick we're not used to uh we're not used to an administration moving this quickly making the i know is there anything that surprised you the most chris about the last couple weeks politically or in general just in general with either the business news or the political landscape I mean, I, I, to be honest, I was surprised.

3:10TikTok was back up in 24 hours. Yeah. I didn't think that would be that quick, but besides that, Trump's doing his thing. I mean, I, I expect him to come in guns a blazing and they're, they're working. So, but like you, I have not been glued to the television by any means. I think a lot of people, at least what you said, I feel a lot of people are kind of ramping back up right now. People have been sick and weather's been kind of nasty from everyone all over the country. It's been a lot to keep up with. California's still burning. Yeah, exactly. They could talk a whole episode about California.

3:54Again, I don't pretend to understand the logistics of that whole situation. And it's a travesty. I'll tell you what's been travesty. The stock market's been taking a beating this week, right to it. Deep Seek. The Chinese spinoff of AI and ChatGPT supposedly was created with using, you know, its own technology that uses way less energy, way less resources, and, you know, it was way better. I'm really simplifying, but that's the gist of it. Am I summarizing correctly, Chris? Yeah, that's my understanding is it is really good at what it does much better than any other AI platform, and it's more efficient and less energy, therefore, I guess, requiring less NVIDIA chips, which is supposedly why you saw this correction in the market.

4:54Yeah, low-cost model outperforming. You know, so it's every market related to computers, chips, NVIDIA, all this stuff. Everything's down, right? Across the software, hardware landscape. I mean, what my question is, is how did this just kind of show up on the scene and explode like this? Like nobody kind of knew how it worked or what they're working on. I feel like I woke up and all of a sudden everyone was talking about how awesome DeepSeek is, utilizing it. And the next thing I saw was they were turning off access to anyone outside of China. Yeah. It was kind of like COVID showed up a little bit, right?

5:36Hey, and someone said that. They said last time a big event came out of China, it actually was good for the markets eventually, right? Yeah. Like COVID comes, you know, I don't know that it snuck up on us. I mean, it was kind of, you know, three to four months. We had the warning signs. Was NVIDIA kind of knowing this and hoping it wouldn't come out, you know? Yeah. It's because everything they did was built on less advanced NVIDIA chips. So it's, you know. I bet Pelosi should have stocked before this. Yeah. Watch the stock. Go look at the trade market. like Chinese stocks. See what your congressmen are trading and you'll know what's going to happen.

6:23Yeah, exactly.

6:28It derailed NASDAQ, NVIDIA, and all AI darlings, the DeepSeek launch. NVIDIA's stock has plummeted 20 plus percent, wiping out 600 billions in market value. That's a lot of money, man. A lot of dough. A lot of dough.

6:53Google, Microsoft, and Palantir experienced significant losses. Meta booked the trend rising 2%. Haven't been as much on the AI bandwagon.

7:11Even though it's in it, it kind of drives me crazy on Instagram, the whole AI search thing. Like, it's not a basic search. It's annoying. I don't need AI and everything in my life.

7:24It's, it makes you, we're skeptical here anyway. I am. And so it makes you wonder about the, yeah. Did China just figure out how to copy all the code, make it a little better and cheaper? I mean, is that essentially what's going on here? Seems to be what, like, that's kind of their forte, isn't it? Yeah. It is. With everything, copy it and make it cheaper. Nice watches. generators, shoes, handbags. You can get anything you want on Timu nowadays, brother. Yeah, Timu. Go down to New York. What's the spot? I freaking lived in New York. Canal Street. Go to Canal Street in New York. Get you some AI chips.

8:05Or some Louis Vuitton handbags. It's fascinating. I, uh, it just wiped out billions of dollars and it makes you, I get skeptical, but don't get wrong. Hey, we're Americans. We're pulling for the team America here, but it makes me skeptical on both sides. Like if, if it's truly, did they really innovate that fast over and above U.S. intelligence? Was U.S. companies just using more resources and more costs to drive more market value? You know, like my head goes in a lot of different directions. So where are the nefarious players at? We know China's nefarious on some level. I mean, you know, I know that, but it has me also considering the other angles, right?

8:56Hmm. Who benefited, you know, from needing as much power and energy and chips and everything from these softwares versus what China seemingly figured out using a lot less. I don't know. We'll see. What will be revealed, I think. We will see. I think I'm going to go ask DeepSeek how this is going to play out. Here's the prompt.

9:25AIBot, that's what I'm going to call it, AIBot, leveraging internet knowledge and past historical points of view. How would you predict the current predicament between China and the United States playing out given the fact that DeepSeek was developed mimicking much of the features, but better at lower cost than its U.S. counterparts? hearts. What would be three ways with which this might play out on the geopolitical landscape? We should, that should have been a good episode right there, Chris. We could have asked DeepSync what it is. The question is, have they locked it down on the phone yet? Because I downloaded it.

10:12Yeah, I gave them my data to see. It seems to still be up on my phone and working.

10:22uh i'm gonna ask it this question chris while you tell us what's happening with crypto today well crypto chris do due to open seek bitcoin did fall below 100 000 briefly ah and as a whole crypto has been a little slow the last week or two it's down and down is, you know, I mean, let's be real. Six months ago, people were going nuts over Bitcoin crossing 100 ,000. And now everyone's like, oh, it went under 100 ,000. It's still strong. I mean, everything's kind of quiet right now, but there has still been a lot of good news coming out of, you know, Washington. You've got the administration pushing through more ETFs for these cryptocurrencies.

11:10You've got a Solana ETF, I think an Ethereum ETF, so that your retail investors can now invest in crypto much easier. So this administration is definitely laying the foundation for a future of cryptocurrency in this country. So not financial advice, but I always say it, get yourself a wallet opened up on one of these apps, crypto.com, Coinbase, and start doing some dollar cost average investing. Connect your bank account, put on like$20 a week on Bitcoin out of your bank account. It'll store it in your wallet. And just do that, set it and forget it, like I always say. But it's no different than investing in the stock market now.

11:59So you should definitely be considering investing part of your income into cryptocurrencies. Now, what do you think say? We did. Okay. It's still building. Boy, it's deep. Oh, boy. Here we go. I'm going to have to summarize Deep Sea because I'm going to tell you what I asked it. Tell it to summarize. I probably could talk to you like it. So I said, given your understanding of the geopolitical landscape, how would you envision the situation with China and the United States playing out given deep seek being developed at such a lower cost and lower resource than other United States counterparts? I got a 10 items.

12:52One being technological and competitive innovation.

13:01advantage China. Lower development costs could allow China to scale and deploy technologies like DeepSeek more rapidly, potentially gaining a competitive edge in areas such as artificial intelligence, data analytics, and other tech-driven sectors. The response from the U.S. from this advantage. The U.S. may respond by increasing investments in domestic innovation, tightening intellectual property protections or imposing restrictions on Chinese technologies to maintain its competitive advantage. Economic implications. Market penetration. If DeepSeq offers comparable or superior capabilities at a lower cost, it could gain significant market share globally, including in the U.S., potentially disrupting existing U.S.

13:49tech companies. The U.S. might impose tariffs or other trade barriers to protect domestic industries, escalating economic tensions between the two nations. Geopolitical tensions. Pretty spot on so far, Chris. And it's, you know, geopolitical analysis, right? Yeah. Hey, it's a nice breakdown. Keep going. Yeah. Global influence. Soft power. China's ability to produce advanced technologies at lower costs could enhance its soft power, particularly in developing countries seeking affordable and effective solutions. The U.S. might strengthen alliances with like-minded nations to counterbalance Chinese growing influence, leading to a more polarized global tech landscape.

14:36Not bad, not bad. There's data privacy and surveillance. Concerns over data privacy and the potential for surveillance could lead to stricter regulations on Chinese technologies in the U.S. The U.S. might emphasize ethical AI development as a differentiator, contrasting its approach with China's more state-driven model.

15:02Overall, reading the rest there.

15:07I'm digging it. Yeah, that sounds about right. And it fails to mention that the$100 billion,$1 trillion wipe off of the stock market. Lots of very rich people not very happy. Yeah, that in itself is a weapon. Yeah, exactly. Weaponization of technology. Hey, there you go. That could be the name of today's podcast. Weaponization of tech. when tech has weapons. Yes. I mean, it's serious stuff, but it's like, there you go, DeepSeek. Quick, responsive, and free. I just wish all the stuff I got from China was that way. That's most of it we're getting on Amazon nowadays. I know. It's actually good stuff.

16:02I don't mean to knock all Chinese manufacturers. There's probably some hardworking people there making a lot of good shit that we use. But nonetheless, they shouldn't be allowed to copy our software if that's what's happened here. That's the bottom line. Innovate on your own dime. I'm not smart enough to know. Someone else will figure that out. But somehow we still don't know where COVID started fully. There's a lot of conspiracy theories, but nothing's like 100 % in the history Bible. so uh uh whether we find out exactly the origins of deep seek all these names are so compelling deep seek it's naming conventions it's like i like deep seek better than i like open ai chat gpt yep give one more sense you know strike one for the the brand box for them for the name but uh i don't know i it wiped off a lot of value on the u.s market so it's having play and it'll be interesting how donald trump sort of navigates this he's got enough fires to put out you know and just you gotta choose your battles this one could be worth it it just depends on what they find out i just don't know how we didn't know this was coming right or did they know and And they just kind of let it happen.

17:34And if anyone on NVIDIA's board sold lots of stock last week, I'd be watching that trail. There'll probably be a Netflix documentary in about three years about it. Yeah, exactly. The day NVIDIA crashed. Yeah, Battleship. Deep Seek. Sinks. Mothership. I'm ready for it. Anyway, you never know. geopolitical warfare that's not funny necessarily, but we do need to just kind of laugh and take a break every now and then. That's what we try to do on this show. Like just a little breather, a little perspective, but still makes you scratch your head just a bit. What else we got in the news? Oh, I saw this.

18:19It was really interesting article. It says basically 40 % of people lie on their resumes. I was like, ah, only 40%. You know, being a business owner, I look at them sometimes like, hmm. But yeah, there's a report out that says 40 % of people are lying, either misstating things they did or didn't do, companies they may or may not have worked for, et cetera. That surprising to you, Chris? Not at all. A lot of creative writing when it comes to resumes nowadays. Yeah. A lot of fiction. that seems like something that's kind of like traffic lights that you sit at for too long you we got ai all this technology like why are we like resumes like we chat gpt and ai or something like there should just be a way to summarize all this stuff down and make it factual it seems dated they can probably give you a personality profile based on someone's social media footprint nowadays i'm sure yeah yeah like the intelligence community i'm sure it could be give Give me the characteristics of this person based on the combination of their four social media platforms.

19:28Yeah. Give me a likelihood to stay in the job, to get promoted, to seek equity, or to steal company secrets. If I exist. Yeah. Oh, it definitely, I'm sure it does. Yes. I'd say so. You've got to find all of us. Yeah. Trump says Microsoft is in talks to acquire TikTok. That was fast. Yeah. We were down, back up. Now Trump, now he's got Microsoft in the deal. Said former President Donald Trump confirmed Microsoft's negotiations to acquire TikTok. He expressed interest in a competitive bidding process for the platform. The app with approximately 170 million U.S. users briefly went offline on January 19th due to a law requiring ByteDance to sell or face a ban.

20:25Trump signed an executive order delaying the enforcement by 75 days. Yep, we'll see. Microsoft. Wouldn't surprise me. I mean, why wouldn't they be interested in the data, the popularity, you know? Right. uh bill gates is no dummy you know he's not and uh he's a lot of things but he's not not that no not dumb i don't know man i don't even get on tiktok right now i'm the last person that should be even thinking about i just i i just don't have enough time in my days like to get down that vortex anymore i never got into it and i just know it wasn't a can i wanted to open up. I don't want to get hooked on another one.

21:15Yes, that gateway drug, man. You don't want to start with that. Get into that social media. Yeah, all the cool kids. World's richest people lost$108 billion after that dick seek. That's a lot of money. Those poor folks. Well, and how is the gain though? Like all this is balancing out. Like, right. It's a gain or loss. Well, if you never took profit. Yeah. You know, where'd you get in that? You might still be in the green. So probably are. Yeah. The, yes. I got to know you gave the stock update while, or the crypto update while I was talking with a deep seek. Is XRP going to keep going up higher?

22:06Are you hearing anything about the XRP? I mean, dude, it depends who you talk to. I've heard both sides. I've heard it's going to die, and then I've heard it's going to be the next best thing. But I forget, something came out this week that I think was not good for it. I forget what it was. I know XRP has a lot of very, like you, loyal members of that community. Yeah. But, I mean, it's still up, I believe, from what it was. but I know that I bought it for 77 cents. It said$3 and six cents at the time of this recording. I think a lot of people believed XRP would be the U S dollar digital currency, or at least their software essentially right there.

22:54Yeah. Platform. And I don't know what's really happened with that. I, but I do think there's, it's an interesting time in the market. I think a lot of people just thought Trump would get in and things would just start going up and it hasn't really been happening like that. There's been a lot of policy placements and good things, but the charts aren't really moving. And on the flip side, you have a lot of money getting drained out of projects like XRP or Solana or Bitcoin because there's now so many of these meme and alternate coins like Trumpcoin, for example. You have every famous person, celebrity, and every 16-year-old kid in their mom's basement trying to launch a coin.

23:35So you have a lot of more scamming and just money is not being congregated in as few places as it was maybe a previous cycle. So, um, but XRP, I mean, it's strong. You got a lot of holders, but I don't know if it's going to rip. Yep. A lot of value as long as people hold it, you know? Yeah. I need people to hold it a little longer. I need that thing to go like$10. I hope it does. I'm just kidding. I'd like to hold it for a while. That was when I was thinking, okay, this one's going to ride the long haul. You know, like be one of those next$10,$20 coins. You're always in the green if you wait long enough, usually.

24:19Usually. But like you said, man, the crypto market's just volatile enough that I'm kind of like, I don't know where to really put the dollars right now. I mean, like we always say, man, go to safe big boys. Bitcoin, Solana, Ethereum. Yeah. Even XRP, I think, is. Yeah, it's the safest. Those are just boring. I need my COVID crypto days back. I need my 400 % a day drops, you know? Yeah. They're out there more than ever. Yeah, they are, but like, I don't know. I was going to lose a lot more money than make right now. And literally right before we got on, I was reading some guys I'm friends with saying like, it's, this isn't easy.

25:05Like it's hard work and it's very volatile. And, and essentially unless you're day trading all day, just put some money and forget about it. Yeah. We got a bit of breaking news here. Breaking news, breaking news, at least for us and this show, it won't be breaking news, By the time you hear it, we do prerecord our Friday episodes so that you can get it at 5 a.m. when you're on that treadmill or doing whatever you're doing. The Fed has held interest rates steady. So we have the interest rate stayed. 4.5%. Benchmark interest rate between 4.25 % and 4.5%. So it's held steady. Donald Trump had wanted to pressure.

25:53He wanted them to come down. but I think the threat of inflation, they have kept it where it's at. No rush to cut rates further according to the central bank. So those interest rates are staying right where they're at, buddy. Those banks are going to keep banking. Sorry, my boys in mortgages. Yeah. It's tough. Well, I think that's got to come down. I get the inflation thing, but I just think the markets start really banging if we can get those interest rates down to their point, point and a half. Everything starts flowing all the money all around the real estate, man. So you get those houses selling, you get, you know, money, cash equity.

26:40It, it impacts everything. The people I know down here in real estate have been telling me it's been picking up.

26:50Oh, what else we got today's news? Costco's got strikes going on. Trump suggests axing federal income tax returning to the richest period in history. We talked a little bit about this pre-episode. I'm all for it, baby. Instead of taxing, U.S. citizen Trump wants to tariff and tax foreign nations. Sounds good to me. I just don't know what that is. Taxation is tyranny. It is. When can we expect our refund checks for my last 36 years of being a taxpayer? Yeah. First federal income tax was passed on February 25th of 1913. Unconstitutional. Part of the 16th Amendment. The Treasury data indicates that$4.92 trillion was collected in federal income taxes for the 2023 filing year.