What Wall Street Isn’t Telling You About $42 Trillion

**SPEAKER_1** (0:00)
All right, let's jump into it, man. Let's kick it off with the investing fact of the week. What you got?

**SPEAKER_2** (0:06)
I'm at four. Number one, Trump has disclosed more than 1,000 trades in June, totaling up to 263 million, including Visa, Berkshire Hathaway, MasterCard, and Census. Those first three, even though I don't agree with the inside trading, well, he reported it, so it's not inside trading, but the first three are great. Ray Dalio has said to sell bonds and buy gold, which I've told you for a long time. The All Weather portfolio has had some issues.
The bond coverage, I think, is probably the weakest part of the portfolio, and so I'm glad he's saying this. Treasury may tap $1 trillion cash account to buy bond, buy back, we'll talk about that in a little bit. And the White House has stated that the Trump-June trades show no conflict of interest.
That's fascinating. Back to you.

**SPEAKER_1** (0:59)
You know, I saw that report this weekend, and it made me, you know, we covered that. I feel like that was a month ago, maybe a month and a half ago, when we were talking about the historical value of presidents trading equities, and there was zero up until this point. And then we got to the current president, and he was at like 3,000, and that was a month ago.
To have 1,000 trades in June?

**SPEAKER_2** (1:24)
It's insane, bro.

**SPEAKER_1** (1:25)
A thousand?

**SPEAKER_2** (1:27)
Like for context, for those of you who don't know, you can go look and see what firms are trading, how much Goldman didn't take 1,000 trades in June.

**SPEAKER_1** (1:35)
I'm going to be honest with you, I haven't made 1,000 trades in my life.

**SPEAKER_2** (1:38)
Bro, it's...

**SPEAKER_1** (1:39)
In my life.

**SPEAKER_2** (1:40)
For the month of June, bro, Citadel hasn't made... They took over Leo's Fund and dismantled it, and with buying the portfolio and selling off, they didn't take 1,000 trades. Bank of America has not taken 1,000 trades. It's crazy. Two Sigma, who that CEO is going through a divorce issue, we'll talk about it on Blackout, he hasn't went through 1,000 trades in the month of June. It is interesting, to say the least. But this bond market thing is scary.
I've been on this for a long time.

**SPEAKER_1** (2:16)
You have.
You've been talking about the bond market, and we keep seeing the Treasury Secretary get on. I feel like every time he wants to say something, it's CNBC at 8 o'clock, on whatever morning of the week it is. He had that prime slot, so we can talk about it. Last week, it was trying to figure out how we're going to lower yields. He got back this morning talking about sanctions on Iran. What are we actually seeing with the bond market? Because a lot of people here, they have no idea what it is, how it works, how it affects the economy, and definitely the market. What are we seeing? What are we hearing?

**SPEAKER_2** (2:53)
Essentially, when you look at the bond market, just think of it as debt, but the thing that's interesting, and I talked about it at Investfest, we're seeing the decay of securities and financial products go away in our lifetime. I remember when my aunts would have CDs and they would get nine to 13% in a year, and the thought was, well, I don't even really need to invest in the market if I have a CD. Those went away, it was 2008 So, the bond market is supposed to balance out the stock market, stocks and bonds. But now, ETFs are the hedge to the bond market. So, you have no diversification. The reason why it's scary for me is that the bond market has been down for six years, and now we're currently at the 2007 levels for an instrument that's supposed to be protected. So, like if you have an aunt or a grandma that has never watched Market Mondays or wasn't aware of me talking about this, like someone tried to tell my mom at the bank a couple of years ago to invest in bonds, she's like, they're no good. And they looked at her like she was crazy. And then the conversation started to happen amongst the bankers in a six month or a year period that maybe we should stop offering these to our clients because they're not going up anytime soon. So, to see, this is like the breaks of the economy going away. And for them to say, okay, now we're going to tap this trillion dollar account. But no one will still, I've asked every guest that has come on, every person I've talked to in Stock Club that I've interviewed, what's the real reason the buy market is going down? No one has a clear answer. This has been down for, imagine if Microsoft had been down for six years straight.