The Practical Islamic Finance Podcast

🌟 The Best Market Recap: 12-09-2024 🌟

• Rakaan Kayali

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🌟 The Best Market Recap: 12-09-2024 🌟

In this episode, we will cover:

  • Syria’s Freedom: A Historic Moment
  • Tesla’s Robotaxi Launch Update
  • Bitcoin Hits $100K: What’s Next?
  • Crypto Inflows & Market Trends
  • Profit-Taking Strategies for BTC
  • Reflection on Markets and Syria’s Future 

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salam@practicalislamicfinance.com

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Our podcast is about helping people ethically build wealth. We cover a broad range of topics including stock and crypto investing, product reviews, and general financial well-being.

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Anything you hear in this video is an opinion. It is not personalized financial advice. Make sure you do your due diligence before making any investment decisions.

As-salamu alaykum, everyone. I hope you are doing well. These last, uh, seventy-two hours have been really a dream for me and a dream come true for the Syrian people at large. And I always had absolute faith in this outcome, alhamdulillah. And I, I just didn't know the timing and I think the Syrian people have surprised the world and in some respects surprised themselves with how well they've dealt with this period and how well they are dealing with a very tough past that they've had to endure for the last fifty four years, really, not just since the revolution, but since the bath coup in Syria. And I couldn't be happier. I couldn't be more optimistic. And I think everyone who was there with the Syrian people in the last. Thirteen, fourteen years since the revolution with their drop and. with their support financially and they are all part of this victory syrians and non-syrians and you should feel proud about what you've been able to accomplish and the syrian people should be proud about what they've been able to accomplish and and I hope this is inspiration for all of the people across the globe that are feeling oppressed and at the top of the list the Palestinian people and perhaps have lost hope things can change very quick and falsehood is very weak you'll be surprised how weak it is when it's actually tested and this is why Israel has had the reaction it has had to the Syrian revolution's victory and them insisting now on a buffer zone and bombing all of the strategic weapons that the regime had had. It was fine with those weapons being in the hands of the regime. And it was fine with not having a buffer zone with the previous regime, because it knew that the regime's priorities were not the Syrian people. It was not Syria. Their regime's priority was survival. But now that the Syrian people have taken back their country, they are now perhaps for the first time in their history, they now have a neighbor that has an army. that is loyal to or has added as its priority the people of the country that they belong to and the country that they belong to. And so this is making Israel extremely nervous, and that's why it's acting in the way that it is. But I'm not concerned. We go from qadar Allah to qadar Allah. And he has, Allah subhanahu wa ta'ala has not let us down any time in the past. And he won't let us down in the future. We just have to make sure that we don't let him down. And inshallah we won't. So again, congrats to everyone who's decent. Everyone who's freedom loving. Everyone who loves justice. And loves for people to feel their dignity and their freedom. Congratulations to all of you. And for everyone who doesn't fall in those categories, and I have no sympathy for you. I have no sympathy for anyone who is concerned about the Syrian people determining their own destiny and being in control of their own country. And for those people who are now flip-flopping, who were, for thirteen years, they were seeing the regime killing innocent Syrians. And only now Al-An have changed their opinion and now are seeing the light. I'm not surprised. If someone doesn't have enough character to stand against slaughtering innocents. They don't have enough character to be embarrassed from changing their opinion. So I'm not surprised that all of these people, even from Assad's family, are suddenly coming out with posts that are post-revolution. I'm not surprised at all. This is the natural order of things. and so this is a curve of contributors to victory this often is how it shapes out you have initially the the the core believers the ones that are strongest in their iman and in their trust of allah and then you have you know people that you know see the light and then you have the early strivers right and then You have the people who are, okay, I'm convinced now that there is victory. And then you have obviously the opportunists and the munafiqun, and they are many. And so this is the natural order of things. This is how things typically play out. And if you're familiar with what happened in Syria, and I am very familiar, I used to, to be honest, I used to check on what was happening every day. And so I'm very familiar with the different personalities there. The people who punched through the regime's defenses in Aleppo and then went to Hama and then Homs and then Damascus. This is really the... the effective fighting force in Syria. There's a lot of other people that sort of rode the wave that they created, but these were the tip of the spear and the ones that made the difference. Probably in number, they're maybe ten to fifteen thousand. That's it. And then, you know, twenty three million Syrians are now indebted to this core contingent of of believers, of Muslims that liberated their country. And this is not the exception. Typically, this is how things happen. And I guess this is a reminder that really change comes from a dedicated core people, a core contingent of people And throughout history, this has been the case. And so if you have a dream, then you can achieve it. You just need dedication and you need not a large number, but a small number of people that share your vision and are devoted and sincere. And so the history is it's full of examples of this playing out. And Syria is just another chapter in this story of humanity, where a small group of dedicated people make all the difference for the rest of humanity. And so I know I'm, you know, eternally indebted to these people. And I know that a lot of humanity may not know it, but a real sort of cesspool of evil in this world has been eradicated because of these people. And these people don't have to prove to anyone that they're good. It's the rest of the world that has to prove that they are good. The rest of the world that... stood silent when the Syrian regime was committing its atrocities, committing its crime. It's the rest of the world that needs to prove that they are good and they're not criminals, not these people that we are eternally indebted to. So that's my take. Those are my initial thoughts on what has happened in Syria and I think this is great for humanity. This is great for every oppressed people on earth at the top of the list, as I mentioned, the Palestinian people. And we can see it in the panic and nervousness and lashing out that is coming from the side of Israelis already. And I'm fully confident that the Syrian people are going to manage through this very tricky stage. And we're going to have a much better country. So, yeah, that's my take. And, all right, bismillah for our regularly scheduled programming. So markets took back... Took a bit of a step back today. And this is to be expected for the last three weeks. We have had green weeks. So a bit of consolidation is nothing to be worried about. Tesla continues to show resilience. And, you know, I said I thought Tesla might be at four hundred in January. It looks like we're going to get there a lot sooner than that. Now we might get to. know something like four twenty before the end of the month this is my just based on momentum if you will that seems that seems likely uh nvidia is that video pulled back a bit a bit here pulled back a bit and that's why you know we always take profits when we see opportunities like what we saw on friday Iris Energy pulled back. Something interesting is that Iris Energy and CLSK, CLSK Clean Spark, another Bitcoin miner that we were invested in, but then we got out of. CLSK, as of today, is at a thirteen seventy one when we sold a clean spark to buy iris energy um CLSK was at close to twenty above twenty and iris energy was closer to ten and now iris energy is actually above a clean spark in terms of price per share so iris energy is at fourteen dollars and fifty one cents clean spark is at thirteen dollars and seventy one cents so that was a good call and speaking of people flip-flopping and changing their opinions so The Financial Times has always had a sort of skeptical view of cryptocurrencies, which is, I think, healthy, but also specifically about BTC. But now that BTC has reached a hundred thousand, had to do its, I guess, sort of half apology. So they mentioned, we're sorry, sort of tongue in cheek. We're sorry if at any moment in the past fourteen years you chose based on our coverage not to buy a thing whose number has gone up. It's nice when your number goes up and we're sorry if you misunderstood our crypto cynicism to be a declaration of support for traditional finance because we hate that too. So they're basically kind of saying, hey, I mean, we were right about the technology being useless, about the token itself being useless, but the number goes up. And so, you know, that perhaps we were wrong about. But it's kind of funny that they say it in that breath because this is from FT Alphaville. FT Alphaville, so alpha is basically return above market. So it's essentially focusing on numbers that go up. I mean, that's what alpha is all about. And so they seem to be kind of belittling the aspect of Bitcoin, which is that its price is going up over time, even though their service is alphaville which is all about numbers so I found that kind of interesting um now in terms of uh crypto or speaking of crypto last week we had the largest weekly inflow on record of uh three point eight five billion into uh digital asset funds including into ethereum etfs I think this is largely a function of kind of financial advisors not knowing what they are doing and allocating or thinking that they're diversifying their allocation to crypto with allocating some client funds to ethereum etfs it being the second largest uh crypto in terms of market cap but this has not changed my opinion about ethereum I think there's an argument to be made that this is one of the signs that perhaps the market is getting frothy when fundamentals are not mattering as much as they should. Now, going back to Bitcoin, if you'll recall, we mentioned, we reported that Microsoft was considering at least there was a shareholder motion to consider using bitcoin as part of the reserve assets that the company holds it turns out amazon is also following in microsoft's footsteps and it will be voting on using bitcoin as a treasury asset in the first half of twenty twenty five. So we're seeing the dominoes fall here, guys. We're seeing Treasury starting to look into this and we're seeing sovereign states starting to look into Bitcoin as a strategic or strategic asset and adding it to its reserves. So I expect the momentum for this to feed off of itself and the snowball to get faster and faster as it moves downhill. And so if the Microsoft shareholder meeting ends up being positive for, or the shareholder vote ends up being positive for adopting Bitcoin, then it increases the chances of Amazon doing the same and increases the chances of other companies following in their footsteps. So this is something really exciting and why I anticipate us to have a really strong twenty twenty five for Bitcoin and by extension, other digital assets. And the mother of all sort of catalysts for this will be the United States adding Bitcoin to its balance sheet, which is what the president-elect has signaled that he wants to do. Another interesting piece of news that came out, this is from ARK Invest. So Tesla released full self-driving version, now this includes So for those familiar and who have actually experienced full self-driving, they know that the start and end of the ride is where the passenger takes over. So pulling out from the parking lot and then choosing a parking space and parking, this is the extent of the necessary input by the passenger in current full self-driving version with thirteen point two, which was released to a limited number of customers. You don't even have to do that. So this is another step towards complete, unsupervised, full self-driving, and it also deals with reverse driving as well. So It's looking more and more likely that twenty twenty fives sees a at least limited. Launch of the robot taxi service, and this is what Elon Musk mentioned that he wanted to do, starting with California and Texas. And according to ARK Invest research and ARK Invest has been kind of spotty with their research on almost every topic except with tesla they've been quite good and so they put a fifty eight percent probability for a launch in twenty twenty five versus thirty eight percent probability for a lot launch in twenty twenty six but regardless I mean we're talking about ninety six percent plus probability that it's launched in the next twenty four months at latest so this is very good obviously this is going to be a huge catalyst for tesla stock and anticipation for it will remain a catalyst for it even in the near term and we're seeing that play out in the price of tesla shares And there are other catalysts for this stock, including new models. So maybe a hatchback from Tesla coming out in twenty twenty five. This is what the company confirmed in its latest meeting with some Wall Street analysts. And also the robot taxis and integration. I'm sorry, the humanoid robots and the integration of those humanoid robots in the in the production lines in different Tesla factories. So this is, I mean, I stand by what I've said. I really think that twenty to twenty five is going to be an inflection point for Tesla stock. Now, even more than what we've seen already, it's going to be like Nvidia when ChatGPT came out. So it's going to be a robust appreciation that's going to last many months and maybe even years. So this is why we positioned ourselves in the way we have positioned in our growth portfolio. And I think it's going to be increasingly difficult to position oneself in the way that they want to with Tesla stock. All right, so additional details are coming out with regards to Tesla Robotaxi launch, which confirms that this is something on the near-term horizon that Tesla is getting prepared for. So Tesla i's Robotaxi launch with human teleoperator backup It plans to introduce company-owned Robotaxi fleet in California and Texas next year, that's twenty twenty five, supported by human tele operators for added safety and redundancy. According to Deutsche Bank, the service will operate through Tesla's internally developed ride hailing app. So watch out, Uber. aligning with the company's goal to launch its affordable vehicle in early twenty twenty five. So I mentioned the the new models, the more affordable models and Deutsche Bank raises Tesla price to three seventy, citing strong innovation prospects as shares traded at three eighty six on Monday. So. A lot of catalysts for Bitcoin and for Tesla and for risk assets, generally, we have a number of reports this week to look out for. So we'll get the core inflation on Wednesday and inflation for the United States. And then we'll get PPI on Thursday. We'll also get the Fed rate cut decision later this month. So that's just around the corner. Yeah, things are looking good. And with that, we will take questions. Yeah, congratulations on a free Syria. Alhamdulillah. Super pumped. And who knows, inshallah, we'll do some lives from Syria if Allah subhanahu wa ta'ala enables us to. May Allah make this development the start of a wave of liberation. Ameen, ameen. And I think that that's going to happen, inshallah. Yes, indeed. The dream is true. Thank you. Mabrouk to everyone. Alhamdulillah. Yeah. Inshallah, finally we'll have ministers that know what they're doing and work for the country and not for the regime. And by the way, this is kind of on a tangent, but I don't have, you know, problems with, you know, forgiving people that maybe work for the regime, but didn't or never actually violent. Like, I don't know, a minister of agriculture. I'm just, you know, someone who had no business with anything that was, you know, violent or now corruption is something different, but. Giving forgiveness to criminals that were torturing people, that were killing people, I think that's a big mistake. And so, inshallah, we don't go down that path. May Allah subhanahu wa ta'ala also free al-Qudus. Inshallah, that's coming. And there's no reason why the recipe for that is any different from the recipe that was used in Syria. It's not fundamentally different. Hey, Salam Rashad. Nice to see you. It's tough to figure out what the Fed, I mean, even the Fed doesn't know what it's going to do. So obviously, the inflation numbers that come out this week will be informative and they're going to really change the probabilities for a rate cut. But I think what is clear is that a rate cut is further rate cuts are coming. probably at least a hundred basis points in the next twelve months. So whether it happens December or the month after that or the meeting after that doesn't really matter. And certainly I think the incoming president is going to prioritize this as a matter of policy. And I'm sure that even though the Fed likes to say it's independent, I'm sure that the president's general commentary on the state of interest rates will be heard. Thank you so much. The dream is true. And we're finally not refugees. Even though many of us are citizens, I think many Syrians sort of felt like refugees just because they didn't have any other place to go and alhamdulillah we don't feel that way anymore inshallah wilson his time is coming asad's time is coming inshallah salam alaikum lubna congratulations for all muslims So Lubna, my position on HIMSS was sort of shown by what I did. And so I can't give you like personalized financial advice, but the risk reward really changed in my calculus and my assessment. And so I made a decision accordingly. So Hannibal asked about trimming our position in Tesla. So right now, I think we're in a state where it's going to be tough to really get major pullbacks in Tesla, considering how many tailwinds are pushing on its back. So maybe we get a ten percent, twenty percent even pullback on Tesla is really worth worrying about it. If we do get a twenty percent Tesla pullback, then as PIF members know, we do have cash on the sidelines. We can deploy that and pick up some shares. But selling what we have in order to wait for a ten or twenty percent pullback that may or may not come doesn't really appeal to me at this point. So you have to take into account a macro as well and the general the general vibe in the market if you will and and right now the general vibe is is not one conducive of major pullbacks salam brother is right platform still comfortable uh we'll have to we'll have to review that I don't have a really answer for you sorry Inshallah, Muhammad, as I promised, inshallah, we'll have more this week. Oh, sorry, Rashad, you were referring to Bank of Japan. I don't think that we'll have anything on the order of what we had a few months ago. So, yeah, the... This is not something that's top of mind in terms of concerns. No, I'm not concerned at all. So he asks, am I concerned about Turkey and Israel taking over Syrian lands? Honestly, I'm not concerned at all. And the reason being is that If you look two weeks ago, the map of Syria, basically the green on this map was basically ten percent of what it is right now. And then within and the rest was red. And now there is no red on the map or virtually no red on the map. And almost everything is green. And so the land is going to be there. is very weak and so if they take it over taking it back even though it's been portrayed to us as something that's extremely difficult it actually isn't and israel isn't an exception to the rules that allah has put on this earth which have shown us time and time again how much evil is weak and, you know, how much things can change quickly. And so I'm not really concerned. So long as the Syrian people are governing themselves and they're in control of their own destiny, they'll be able to return any land that's taken from Israel. And it's going to surprise people how quickly they do it. That I promise you. ls I see you thank you it is a very deluxe indeed are we adding any new tokens inshallah yes we are um okay Sorry, I don't respond to all questions. Sometimes I see questions that are not relevant to the topic at hand, so I skip it. Or I think that the topic is not really interesting to enough people that are watching, so I'll skip it. I don't foresee a major crash in cryptos or the stock market in the coming few weeks. I think there could be a pullback in January when some profit taking is done because people may be holding or waiting until January in order to not incur tax liabilities. so there may be a pullback in january but I think there will be a rebound and it will be a buying opportunity what's my view on the kurds in syria should they be given their own country okay first of all the kurds are not a minority in syria the kurds are part of the muslim majority in syria the pkk is trying to hijack the Kurdish community and say that they represent Kurds in Syria. They don't. And frankly, they're fighting yesterday's war. They're like communists and nationalists and trying to build an ethno state. No one believes in that except for sociopaths anymore in the world. People have, you know, You can't really build a sturdy country. This is what experiments have shown. You can't really build a stable country that a mass, twenty three and me test can bring down like in Israel, like if you distributed twenty three and me genetic testing on all of Israel and did it for the population. The entire thesis for the country falls apart. So you can't really build. And this is what the PKK is trying to do in northeast Syria. And so they're going to fail. And by the way, that core contingency of Muslims that liberated Syria, a lot of them were Kurds. So they were part of that liberation. There are other minorities that were not part of the liberation, and I'll just say it. Alawites, for example, they were not part of it in any respect. But those people that liberated Syria, some of them were Kurds, and so they're a part of this country. Kurdish Syrians should have their own country and they do. And its name is Syria. It's their country too. I'm glad that I was able to lift your spirits. I mean, I don't see how, you know, After the miracle that we just witnessed unfold before our eyes, how one can be anything but optimistic, to be honest. What we've seen was really the hand of Allah Subh'anaHu Wa Ta-A'la was very obvious. All right. So what is your profit-taking advice on BTC if one did not take any profits in the past months? Well, I think everyone is, their situation is different. I think obviously if you need cash to replenish your short-term reserves, then that's a consideration. But if you don't, my expectation is that, so similar to how I said, I think BTC was going to hit a hundred thousand this year. Alhamdulillah, that turned out to be true. The, uh, twenty, twenty-five expectation is that it's going to hit two hundred thousand. So if you don't need the money and you think that, and you agree with my thesis of about two hundred thousand, then, and you enjoy doubling your money, then I think BTC can do that. Uh, so with that being said, uh, if you enjoyed this live, then do leave a like, really appreciate that. Hit the notification bell if you haven't already. Become a PIF member if you aren't already. And join our community. We have a lot of exciting things coming. And I've noticed a direct empirical evidence has suggested a direct correlation between the progress of the Syrian revolution and Bitcoin's price. So good things are to come, inshallah, for both Bitcoin's price and for Syria. And with that, until next time, make sure to take care of yourself. Assalamualaikum and peace be upon you all.