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The Matt Allen Show is your front-row seat to the world of finance, investing, technology, and business. Each week, host Matt Allen breaks down the biggest stories in the markets and sits down with leading investors, entrepreneurs, tech experts, and innovators to uncover insights that matter.
From stock market trends and economic shifts to breakthroughs in technology and the strategies of top business leaders, this show gives you the clarity and perspective you need to stay ahead. Whether you’re an everyday investor, a finance professional, or simply curious about the forces shaping our world, you’ll find ideas here that can change the way you think about money and business.
New episodes drop every Tuesday and Thursday.
All right, welcome back to the Matt Allen Show. We got three big stories that we're talking about today. The first one, AMD and OpenAI have made a massive deal that had sent another shock through the financial world, especially in the valley. Second one, Tesla Tesla has a has just made one, a a major release for full self driving. Two, they're in the middle of an event right now where they going to unveil a surprise announcement.
Matt Allen:We I am monitoring that live right now. So as if you don't know, we record this on Tuesday. We release it on Wednesday. So we're we're gonna speculate slash possibly break the news live, and we'll get a live reaction. And third, we're gonna talk about a little bit about the government shutdown, what it means to the stock market, where we see it go from here, and getting after it.
Matt Allen:Rob, what's going on, man?
Rob:A lot of different things. A lot of different things, but excited to be talking about these three topics and to hang out with you for about forty five minutes.
Matt Allen:Oh, there we go. Yes. Yes. You have a good weekend.
Rob:Had a good weekend, way busier than I wanted it to be, but, was glad I was able to celebrate your birthday with you.
Matt Allen:Well, thank you. I appreciate that. We had a good time. We got some our buddies together. In Tallahassee.
Matt Allen:We, we had a good time. Then we went to Florida state Miami game. That was not a, what was a fun time until, until the actual game.
Rob:But yeah, I was very happy. I skipped all those.
Matt Allen:Yeah. Yeah. Traffic was crazy. The town was rocking and then it got disappointed
Rob:very much so.
Matt Allen:And just, just, and then your, your Penn state, lions did not have a very good showing.
Rob:Well, just to be clear, I didn't graduate from Penn state. Just been a long time band. But again, it's like I said last week, it's like I told you two years ago. Penn State will never do anything until they fire James Franklin.
Matt Allen:Go. Well, let let's get right into it. Wow. Well, yesterday, before the market open opened, AMD finally got their big AI moment. OpenAI just announced a massive multiyear deal with AMD to power the next generation of AI data centers, six gigawatts worth of compute, the first gigawatt of AMD's new m one forty chips that start rolling out in 2026.
Matt Allen:This this is a lot different kinda deal than the one with NVIDIA, Rob. NVIDIA's partnership, as we talked about a couple weeks ago, is focused on training, which is kind of the heavy lifting behind the new AI models. While AMD's is all about inference, which if you don't know, Rob, know you do, but if you're listening to this, don't know, Anytime you type a question in to ChatGPT and it responds, that's what inference is. So that's what AMD semiconductors focus on while NVIDIA's focus on the backbone and kinda power behind it. But here's the part that's raised a lot of eyebrows, mine specifically.
Matt Allen:AMD gave OpenAI a warrant for up to 160,000,000 shares of its own stock, which is roughly close to 10% of the company. So as OpenAI builds out more data centers, they actually earn pieces of AMD in return. That's not something you see every day in the semiconductor world for sure. For OpenAI, this deal means guaranteed access to GPUs in the world are still short on them. So I'll start off with my take real quick.
Matt Allen:In my opinion, the fact that AMD had to give up equity to a buyer is very disappointing because we're supposed to be in a GPU constrained environment. Right? So demand should be so strong that companies are lining up to buy these chips without AMD having to sweep the deal with the stock, which they are, but it's also kinda telling me that AMD is still playing catch up because they're trying to buy into its way into revelance against Nvidia, up equity, which is wild, but the bigger question here to me is, where's all this money coming from? OpenAI now has partnerships with NVIDIA, Stargate, and AMD that total around for 26 gigawatts of planned data center capacity at roughly $60,000,000,000 per gigawatt, so that's about a $1,560,000,000,000 build out, Rob. And Rob, let me just put this in perspective, right?
Matt Allen:In the last five years, Apple, Amazon, Meta, Microsoft, and Google combined generated $1,400,000,000,000 in free cash flow. So OpenAI just agreed to deals that are a total of $1,560,000,000,000 of build out, which is more the last more than the last five years what this company has made. So, Rob, I'll go to you. What what are your thoughts here?
Rob:I think my thought would be it's confusing. So if I if I were the way I understood it was, NVIDIA invested into OpenAI, correct?
Matt Allen:Yes.
Rob:What was it? To the tune of was it 100,000,000,000 for five years? Is that right?
Matt Allen:Yes. And that that deal, when you did the deal out on paper, it made it made sense because they're gonna get a heck of a return from that.
Rob:Correct. They are. And that's what we discussed. So then, you know, what? A few weeks later now, OpenAI has turned around and and doing this deal with AMD, putting money into AMD.
Rob:I just Honestly, Matt, I think it's probably a little bit scary for those who are heavily invested in the AI world. I don't see To me, the old term paper tiger comes into play with this deal, And I I don't know. This may be the jumping the shark moment.
Matt Allen:Well, I haven't heard that term. Only time I heard that term paper tiger was from Trump recently. Where where is that? What does that mean?
Rob:We're from the we're from the same generation, him and I.
Matt Allen:So what does that what does that mean?
Rob:It it's just it's it's an old term. Obviously, tigers are ferocious animals. So a company Apple is a tiger, right? You know, they have all the health sound financials. They have all of this paper tiger means that on the outside, looks like a tiger on the inside, it's just paper and could be crumbled and thrown.
Matt Allen:Kinda reminds me of our friend, Michael Fisher. But
Rob:Yeah. Fair.
Matt Allen:I mean, the thing I the thing that concerns me most is if we have an economic it's not it's not necessarily a paper tiger argument as you just made, but it's it's if we have a macroeconomic downturn or capital gets really hard to raise. OpenAI going to be able to raise this money in the current environment. Three, four years from now, they might not be able to. No one might not be able to. Mean, there's times in the condo where raising capital is incredibly hard.
Matt Allen:That's just economic turns. And then that's what they're banking on. And the other thing is, is that and there's a world where they think they can monetize their 100,000,000 monthly users because they announced that yesterday. They just hit eight, sorry, 800,000,000 weekly users. They just made that massive announcement, which is huge as well.
Rob:Well, I think they are monetizing somewhat, right? Isn't there like a premium $20 a month for chat GPT? So they're doing some monetization already.
Matt Allen:They are, and they're close to getting break even, but that's not including these build outs.
Rob:Look, we haven't even mentioned the fact that I'm telling you within the next five years, if not sooner, building these huge data centers is going to be a political problem for these companies. Cause I don't see a whole lot of communities lining up to host these and supply power to them. So again, I know we've talked about this before. I think it's something that no one's talking about. I don't know where they're gonna put them.
Matt Allen:What Bloomberg Originals on YouTube just did a whole special about for about thirty minutes on it. And it's a it's a it's a you're right, because the community is not wanting it, but the local officials are wanting it.
Rob:Right, until the local Here's what I know about politicians more than anything else. They care about themselves and being reelected. And they're gonna want it, because they're gonna want the revenue from it, right up until everybody that votes for them figures out that their power is going to be a whole lot more expensive because of it. And then nobody's going to want them. It's a huge issue.
Rob:So we can talk about these deals and building them all we want until they start breaking ground and actually have deals to locate them. Again, term paper tiger comes to mind.
Matt Allen:Well, they do have, they have broken ground on a few of them already.
Rob:Yeah, a few, but what we're talking about now between these last two deals, they have not. And the size and scope of them are going to be a political problem.
Matt Allen:Do you believe that this is gonna be a, you think it will always be a local issue versus state issue? Or do you think federal government can evolve?
Rob:So again, I'm not a great believer in the federal government for anything. And so I think this is going to boil down to state and local issues. And it's, I think it's going to
Matt Allen:become such a massive deal that even states are gonna shy away from it because they're gonna become so unpopular. So if you're wondering at home, what's kinda happening is that, if you don't know, is that we're seeing about a 30% across the board cost of electricity going up across the nation on median level. And then we're having, in some places, having a water shortage because it takes a lot of water to operate these data centers. And there's a lot of, one of the problems they have out in the desert out west is that, there, a lot of companies are building data centers out west in the desert, but they're having problem getting water. And so there's, Right.
Rob:I mean, look at what's going on in California and the watershed with Los Angeles, Los Angeles and everything else. I mean, it's, if you can't supply drinking and potable water to your residents, and then you're going to put these data centers in, I'm telling you, Matt, I don't think we see some of this come to fruition because of political aspects.
Matt Allen:Yeah. It's interesting. The thing that China's doing right now that's different from us is that they're just forcing their local cities to do it. Well, that's what
Rob:a totalitarian government can do. We don't operate that way.
Matt Allen:We have, as of right now, I think last time I checked, we have around close to 5,500 data centers. The second closest company, company country has around two fifty five, which I think was Germany that might've been updated recently. But China's trying to have 10,000. I mean, we're trying to match them. I mean, so the numbers are going to increase across the nation, but as you just pointed out, you made a great point, that there's a lot of issues that we're going to be dealing with.
Matt Allen:But if you're interested in investing in data centers and things like that, I do have a part of me Trump tax bill. What do you name it? What's the
Rob:The big beautiful bill.
Matt Allen:The big beautiful bill. Part of that is that you massive, massive, massive tax write offs if you invest in data centers or anything similar in the AI race. So if you have any questions about that, you can message me on Instagram and I can give you some of those details because the amount of tax write offs people are getting on that is, it's obscene, because we're in an arms race. I had a buddy over the weekend say new, that the the arms race, the modern day arms race is data centers.
Rob:Totally agree with that. The problem is you can have all the money in the world. You can have all the want to do it. The federal government can wanna do it. I'm telling you, I'm not real sure where they can build these huge mega centers there in Alcock.
Matt Allen:Do you think it's bearish that AMD is giving up 10% equity, or do you think it's bullish?
Rob:I think it is. I think it's you know, I don't know, Matt. Honestly, I can I can make an argument either way? I will say this. I think this whole deal makes me more bearish on the whole industry.
Matt Allen:Well, to to counter off our conversations that we had about the Trump administration taking over Timberson equity and companies, in my opinion, this type of deal is more what I'm for in how I view how the economy should work, is that you have a now, now OpenAI has a, a capitalistic partnership with.
Rob:Oh, agree. I totally agree with you there. This is a million times better than the taxpayers owning 10% for sure.
Matt Allen:My also thing too, is that I thought AMD would be in a place where they didn't have to do that, but I don't mean, but they're, they're cause they also just bet on a horse. Now, I don't know if this means that, that, that it's just becoming everyone just saying, Hey, OpenAI is so far ahead. For example, you know, love perplexity, but almost perplexity has taken a different route than OpenAI, which, and maybe they didn't intend to do that originally, but it's more research focused. It's more, I mean, you know, I know in your industry, I mean, you could be using every day, truly. Whereas ChadGBT, you could, but for just completely different, but you could do hard research there.
Matt Allen:A lot of people beyond Perplexity.
Rob:Right.
Matt Allen:And so they've kind of gone a different kind of niche. And so maybe, maybe people are taking these bets. They're like, we want to be a part of this. I mean, that's just my thought.
Rob:Yeah. They're the clear leader in the clubhouse for sure.
Matt Allen:For sure. And and and maybe just, you know, Lisa Hsu, CEO of AMD, just said, hey. There's so much far ahead. We want we wanna make sure that we're secured there for the next twenty years. Yep.
Matt Allen:And and and maybe that turns out good, or if open air something happens, it'll be bad. Yes. But you got anything else on this subject?
Rob:I guess I would say now for sure. If something bad happens with OpenAI, I mean, we're gonna see a cataclysmic collapse of that whole industry and the finances of it. Right? Because now it brings down Nvidia, it brings down AMD. Mean, it just across the board, it's the equivalent to what happens in 'eight in the banking industry.
Matt Allen:Do you think though it will stretch off to private equity and real estate developers?
Rob:I don't think so.
Matt Allen:I mean, if these data centers are getting planned and built and
Rob:Yeah, but gotta be such a small niche of the overall real estate market in America that I don't see. I know you make that face and these are huge projects, but again, there's, I would think
Matt Allen:there's a
Rob:small percentage of people putting their money in the real estate deals of these data centers, I think.
Matt Allen:But yeah, but the blackstones of the world are leading this charge. And if something, if they go, if something were to happen seriously bad, you have a trickle down effect.
Rob:Yeah. Yeah. It's definitely something to keep an eye on for sure.
Matt Allen:Yeah. So those are your thoughts. I got some pretty big news, a bombshell out of Tesla. Well, this is the one that's not being talked about or I'm personally excited about. Then we'll we'll kinda talk about it.
Matt Allen:So Tesla just dropped, in my opinion, a bombshell. So about two hours ago, they rolled out a long awaited full self driving version 14, which is the biggest leap we've ever seen, Rob. The the clips that are going around X and and Instagram are just completely wild. One of the cool things that we haven't seen at two, like, crazy success is the car automatically moved over construction, avoided a loose code in the row row in the road, and then read the worker holding up a stop sign. The car read it when it flipped to go before proceeding, and it didn't stop from there.
Matt Allen:It was tested in a parking garage by just a random person. The car was able to, wait for the arm to open, knew when the human grabbed a ticket, found the parking spot, and when it was time to leave, it drove itself right off to the exit stand, knew knew exactly when the person paid for it, which is pretty wild. Then on top of that, we are still waiting for the mystery announcement for Tesla, And they posted two cryptic videos, which is a spinning wheel and a set of headlights, no context or no press release, but, obviously, that's a world that we live in today, and the Internet is completely losing it. The rumor that would be pretty huge, a game changer, would be is a Tesla that costs under $30,000. That's been Elon's dream for a while, which is pretty unprecedented in America, but it's we but it's very precedent in China.
Matt Allen:As you know, the I'm a massive believer in full self driving in time. I think it's one of the most obvious things that's coming in time. So this update here was awesome. I mean, we're getting to the point of it's becoming every single day, was more safe to have full self driving. Humans in the road are one thing that's been a worry, and they've worked on that like crazy.
Matt Allen:And one thing, if you're at home and you don't realize is that every time a Waymo or a Tesla full self driving, any kind of crash, anything they do, it seems like it's the opposite of bearish, but it's the best thing for it because the more data it gets, the better and better and better and bettering it gets, the better they get. And so it's pretty exciting news for me personally. And then it'd huge if if Tesla can get a car underneath $30,000 because that means their profit margins obviously are still pretty high for that. Rob, what do you think is more bullish for Tesla? A car less than $30,000 or the full self driving update?
Rob:Alright. So this is where our generation gap is gonna come in big time. So I am way more bullish on a car under $30,000 I think if they can do that, they will sell a ton of them. Because I think people of your generation love Tesla, love the way they look for some reason. And I think they will sell a ton of it.
Rob:The self driving car, you're too young to know this, but when I was a kid, one of my favorite cartoons was the Jetsons. I'm going to guess nobody who listens to this podcast knows what the Jetsons cartoon is. They were a futuristic cartoon where everything was autonomous and you know, when I used to watch it, be like, Oh, isn't that so awesome? They can jump in their flying automobile and it just takes them wherever they wanna go. Now that we look at this, I will tell you, I will never, and I will look right into the camera and say this, drive an autonomous vehicle.
Rob:I do not trust it, do not trust the technology.
Matt Allen:Right, it's
Rob:the same way, I need a internal combustion engine, I need to be driving the car as well. I'm not bullish on that at all. I think you're a few generations away from people trusting that, but a car under $30,000 for Tesla EV, I think that that really changes the game. And that I think they will be right now there's the big three automakers that makes them the big four.
Matt Allen:Well, first of all, it's just the safety thing. When you get the full self driving, there's gonna be while we're alive, like, example, my kids and your you're alive. Yes. No. You're no.
Matt Allen:Your my kids and your and your grandkids will will have a full self driving car. It's just gonna be safe. I mean, do do you mean all the amount of wrecks we have on a daily basis from people being on their phones and being stupid, it's crazy. Going to to a
Rob:point where
Matt Allen:we're to to a point where it's so safe that you're going to put people at risk by driving. I think there's 20,000 wrecks a day. If you could lower that to to 10, that means Well,
Rob:here's the thing. I've got news for the younger generations. I will be putting you guys at risk for the rest of my life.
Matt Allen:I will be Yeah. Driving my But that's just, but I'm saying that that's where we'd get to though, where it's just so much safer to do, to, to, to have one that's once the technology gets there. Cause Elon's plan, this is what I think's the next generation and not what I'm not personally gonna see, but like one in ten million lifetimes you get in a car crash because of how, because all the neuro networks and stuff, I mean, the technology on these things are unbelievable. That's the ultimate goal for that. So I do believe from a safety standpoint, it's gonna be awesome.
Matt Allen:I do believe it's gonna cut in the next by the time I have kids and they drive, it will cut daily car wrecks effectively in half. Not right now. Well, right And unfortunately, you have to have bad events that happen. You have to have things go wrong because they have to get the data and that's how they fix the data. You have people who say, Oh, the technology, technology, that.
Matt Allen:Well, let's just take a simple example of, all right, the people who went to the library and did all kinds of research and stuff and books and stuff like, your life got a lot easier when you use the computer. Like there's things there that, yeah, technology is not perfect, neither it is, but some things in the past when you didn't have technology weren't perfect either. And then also, technology makes your life better in a in a sense of, hey. You're not having to do this. You're not having do that.
Rob:I love going to the library, searching the card catalog. Trade that in a second for this internet thing.
Matt Allen:Well, you still could, but you don't. You don't. Right. Fair?
Rob:Yeah. Fair.
Matt Allen:I'm There's me one day that you say, you know what? I I I'll miss driving, but you just use full self driving instead.
Rob:We'll see. We'll see.
Matt Allen:And also too, let's just say that thirty years from now, And how many at your age you'd be in your eighties then, you know, when they're eighties can't drive?
Rob:Well, so the whole time we're having this conversation, I was thinking in the back of my mind, well, you know, thirty years from now when I'm in my eighties, that would be easier to be able to get around still for people. So we'll see. But I also routinely tell people once I hit 75, I'm gonna start smoking so I don't have to worry about it.
Matt Allen:Well, but I just do think that it's from a safety angle that that's a huge, huge, huge thing. And I and I I do believe because Tesla doesn't mean Tesla will charge a monthly they charge a monthly or it's an additional package now when you buy the car, but you don't like, every car eventually will have it because they'll they'll sell the technology. Them and Waymo will become competition. So you're like, the the car you bought your Acura would eventually have it. They would just have Teslas.
Matt Allen:That's coming sooner than later.
Rob:I'll go one step further with you. I would be very bullish on Tesla if eventually not only did they sell the technology and everything else, but they became the insurance company because
Matt Allen:They already have a insurance company.
Rob:Theoretically insurance what I'm saying is they would insure every car that they sell or every car on the road. Are I'm thinking insurance goes way down in the environment that you speak of, the utopia.
Matt Allen:They have an insurance part of the branch. They didn't give you insurance for Tesla. They're already
Rob:doing that. Okay. Interesting. Good.
Matt Allen:And they sell their autonomous technology to a lot of defense stuff. And the one that they're dealing with is they're trying to land like Acura and things like that, but so is Chinese companies. And I think a lot of these companies are waiting for the to pick a winner. Because to be fair, probably from a legal standpoint, they don't wanna have to deal with what Tesla and stuff are gonna go through. I mean, I'm not saying Absolutely.
Rob:You and I are of the same mind on that. So you know what? Hey, good luck to them. I enjoy driving my new car. I enjoy being in control of it.
Rob:I'm old. You're not. And so here's to the future, I guess.
Matt Allen:There we go. And then one last thing is that they are teasing an optimist announcement coming soon, which is supposed to be a massive announcement. Vaughn has, taken over the project himself. He's the lead engineer, one of the lead engineers on it. They're, he is working in the factory and sleeping in the factory again.
Rob:Okay.
Matt Allen:They're saying he's putting in eighteen hours. They actually had just one of the, humanoid robot, chief engineers, AI engineers leave for Meta. And the kind of joke is saying this guy's like, you know what? I can go work ten hours at Meta for $50,000,000 a year. You know, we don't know if that's true or not, but I could see where that reality is there.
Matt Allen:Meta is offering $50,000,000 at a twelve hour workday instead of what's sleeping in a factory. So pretty exciting news coming out of Tesla as well.
Rob:If you're excited about all of these things, for those of us who are not, not exciting news at all, but go ahead.
Matt Allen:Well, the next thing is that we have the government shutdown going on. A lot of people were bearish for the first time in the economy, about the stock market. But Rob, do you kind of wanna lead that discussion into, do you think a government shutdown is bearish for the stock market? Because obviously statistics say it is not, but there's a but to that. Then I'll let you get, Tim.
Rob:I don't think so. I mean, okay, so we're a few days into the shutdown now, life seems to be going on as normal, people are getting their social security checks, the mail is being delivered, defense is still being done. I'm a little concerned about the air traffic controllers. I'm a great believer in if you have to work, then you should be paid for it, right? To me, one of the fundamental ideas of America is you give an honest day's worth of work for an honest day's pay.
Rob:So I don't quite understand why they're in that conundrum and I'm a little bit worried if they don't fix that, what happens? But again, by and large, with our bloated bureaucracy the way it is, most of the government workers that are shut down right now are not gonna be missed.
Matt Allen:Yeah, mean, and so from a stock market angle, out of the last, like, 10 government shutdowns, it's kinda funny the last eight ones after it have absolutely boomed. Does it matter if you're a Republican or Democrat? And I don't know if that's I don't know if that has anything to do with it or if it's just a bunch of randomness, but we've had eight eight of them. It's quite for example, last one in 2019 rallied 36% to S and P 500 in.
Rob:Would say it's this probably, don't you think? It's all this doom and gloom. Oh my gosh, the government's going to shut down. It shuts down. Nothing happens.
Rob:And then eventually, Oh, we've worked out a deal. There's all this euphoria. And so then everybody's like, Oh, everything is great, streets are paved to gold, and then the stock market explodes. Think that's generally why that happens.
Matt Allen:Yeah, mean, that could be a good reason, because when you have eight of the last 10 have just absolutely exploded, then and then the two other ones, like, were were broke even. So you're not talking about I mean, you're not talking about anything. And I think that's probably the best way. Your answer is probably the best one because I don't wouldn't know what it tells unless it's just completely random. But when you have 10 of them, that's usually not.
Rob:Right. Right. So unless the government shutdown led to something catastrophic, I just think that's how it is.
Matt Allen:And then the only other thing that you have, if you had one that lasted say sixty days, then you would start impacting bottom lines of companies, for example, let's just take Delta. There's a lot of government employees who fly. Like, you you would like, you you could run into issues of that where government contracts or, you know, usually you get back. But if you do sixty days, say, that's where it starts getting into a problem. But besides that For
Rob:people who contract with the government, it's an issue, I would think. Then If it if it goes on and on.
Matt Allen:Like, for example, Ford, well, you know, without our government, I don't know if Ford would be would be doing as well as we think as they think
Rob:they are. They're getting crushed today.
Matt Allen:Why?
Rob:I I've been too busy to look. I just I just happen to look. I I own some Ford stock in my portfolio, and I just happened to see that they were they were getting pretty crushed today.
Matt Allen:They have a devastating fire at a major Ford supplier.
Rob:Okay. There it is. Interesting.
Matt Allen:Well, yeah. But for example, they do a lot of business with, with the government buying cars and things like that. So let's say you use sixty days and their next earnings wouldn't be that good. Just, just obviously, but you have, you know, for example, if you had worker A who was supposed to go on a trip that they need to go to for the government and the government shutdown lasts fourteen days, they have to go, they're gonna go on it. But maybe in day six, they wouldn't.
Matt Allen:Correct. So there's some things that, but outside that, I've had a lot people text me and ask outside of those random events, life will go on very, very soon again.
Rob:Yeah, I'd be willing to bet if he stopped somebody on the street right now, they would have probably forgotten that the federal government is shut down. Think,
Matt Allen:I think we think people have started realizing that it's really not that big of a deal.
Rob:Right. If anything, just save some taxpayer money is going into more debt.
Matt Allen:Well, yeah. Well, they always, they'll get back to pay out the wazoo. Yeah. The, the other thing I kind of want to talk to you about, Rob, is that we had big news out of Japan and a prime minister, newly elected first woman prime minister of Japan. And as you know, I believe Japan's our number one trade partner.
Matt Allen:I also think it's one of our greatest allies. I wanna go to Japan. I love the Japanese.
Rob:Okay.
Matt Allen:The reason why the market took off Monday on the news worldwide is because she's promised a lot of stimulus, a lot of AI building, a lot of, I mean, she's very, very bullish. How that impacts your stocks and the things you own is because they're gonna ramp up freight. And they called out America specifically, so they want more American products, they want to do more trade with America. That means they're gonna also buy more bonds because they're gonna stimulate the economy. It was very, very bullish news for us.
Rob:I agree.
Matt Allen:And I think people don't realize how much we're, you know, politics and finance are married, especially in modern day because trade is so important to companies' earnings and things like that. And so it's huge news.
Rob:I totally agree. So a couple of things that you said there. If anybody is listening to this podcast, they realize that politics and finance are completely tied at the hip and married. There's no in the modern world today, there's no getting around it. And second, don't you, you know, Japan's economy has sort of lagged behind the rest of the developed world for a long time now.
Rob:They, I feel like that was the Cadillac, the catalyst to get her elected. So I do be with you. I think that was very bullish news. And I think, I think it signals a new era for the Japan United States relationship.
Matt Allen:For sure. We've always had a really good one with them since, since post World War II. I don't think the average person realizes how-
Rob:Since we didn't.
Matt Allen:Yeah. Since we didn't. Have a lot of comments on that. Can tell you off air. Don't, you know, I truly don't think, I mean, because everyone talks about China owning our debt and stuff.
Matt Allen:They're our largest owner of our bonds, which is our debt. Yes. And they love it. Like, not because they, not because they wanna hold her over her head like China likes to, they just, they're proud of it. Correct.
Matt Allen:Which is another whole other thing in my opinion. But she's gonna, I can't, I don't know how to say her name. I don't even want to try, but it's very bullish. It's gonna be bullish for the stocks you own. It's gonna be bullish for American farmers.
Matt Allen:And she pretty much outlined all that. Our current president and her have already spoke twice, I think. She wants to renegotiate a trade deal and to add more stuff.
Rob:Again, I firmly believe her platform on these issues is what got her alive.
Matt Allen:Definitely, definitely. And because they just struggle with debt so much since the nineties. I read a good book about Timothy Geithner, who was obviously helped navigate TARP and all the financial crisis, but he helped navigate China's or Japan's financial crisis in the nineties. He just always said, it's very interesting because they're so modernized. They do things all the right way, but their government just got in such a bad spot in the nineties that they cannot get out of it.
Matt Allen:And it's not, you know, they don't even do frivolous spending more than any other country or anything like that. For example, Greece was just spending like crazy when they didn't have it. Japan just got in such a bad hole that they just cannot get out of it. So,
Rob:yeah, I'm cautiously optimistic that I think this might be the start of it.
Matt Allen:Yeah. And that's the thing is to me, start of it. And we have to, hopefully we go and help them and that will help our farmers who are no longer selling soybeans to Chinese, the trade war. So we need things like that to keep on going.
Rob:Absolutely. Absolutely. So we wish her the absolute best.
Matt Allen:Definitely. Well, I know it's that today is gonna be little shorter. Do you have, do you have anything else?
Rob:No. I think today was a great episode. The issues were very, very interesting to debate back and forth today. And so looking forward to next week.
Matt Allen:Let's, real quick, let's make sure there's no, no announcement for Tesla. Wanna do the fifth is that fair?
Rob:Yeah. I hope the announcement is they're buying this podcast and putting me in their early retirement.
Matt Allen:Well, they said you had to use full self driving cars.
Rob:Well, to stop doing this podcast, that might be a trade off. I don't know. We'll see.
Matt Allen:No, they have not made any announcement yet, so we'll, we'll be staying tuned to that.
Rob:All right. We'll discuss it next week. See if we're right.
Matt Allen:Sounds good. Talk to later, Rob.
Rob:Yep. Bye.