The Practical Islamic Finance Podcast

Brace for Impact!

Rakaan Kayali

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Brace for Impact!

In this episode, we will cover:

  • Intro & Market Recap
  • CPI Data Surprise
  • US-China Trade Truce
  • Bitcoin and Doge Price Update
  • Tesla, Elon, and Trump Update
  • Jensen Huang on Tesla’s Future
  • Optimus vs. Robotaxi Potential
  • Iran-Israel Strike Risk
  • Oil Surge & Defensive Stock Ideas
  • Bitcoin vs. Gold in Crisis
  • Viewer Questions: BitBee & PLL
  • Final Thoughts

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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.

DISCLAIMER
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. Today is Wednesday, June eleventh. And we had a down day in the market, even though the data that we got was pretty bullish. The CPI number was bullish. We also got Elon Musk and Trump kind of making up on Twitter. But we did get some signs that there may be another geopolitical conflict. that is close to becoming heated. We'll talk about that in a second. And so the market is bracing for impact, as you can see in this beautiful thumbnail. So very quickly, the indices today, the Russell was down point four one percent. The Dow Jones was basically flat. The S&P was down point two seven percent. Nasdaq was down point three seven percent. Tesla was flat. And, you know, a lot of these names were flat. Corey, for the first time in its history, was down three point thirty six percent. And Bitcoin is now at one hundred and eight thousand after knocking on the door of one hundred and ten thousand a couple of times. We'll see if we can make some new highs here. I actually think we will by the end of the summer, inshallah. The price of Doge is now closer to nineteen cents than it is twenty cents. So let's talk about the major news events of today. Don't forget, thirty five percent off until June fifteenth. Thirty five percent off of our premium and elite memberships. Join our community. Use code Adha twenty five before June fifteenth. Take advantage. of this offer you get access to our portfolio and trades move for move as well as privileged insights and our watch list our growing watch list of companies as well as their buy below prices take profit prices I think should pay for itself many times over, inshallah. Certainly, our reviews have suggested that it has for many of our members. All right, so in addition to the CPI number, we also got a sort of US and China trade truce. It's not an agreement, but a truce in terms of walking back some of the recent escalation that happened. Hopefully we get a long-term agreement here and the market can kind of put this behind it. It is a continued source of stress, but a truce is better than escalation here. In terms of the inflation number that we got, core CPI inflation was point one percent, even though the forecast was closer to point three percent. So we beat our forecast in terms of month over month CPI, core inflation increase. And we beat the number that we got in April, which was point two percent. That being said, I wouldn't be surprised if we started getting some hotter inflation prints deeper into the summer. I do think that the tariff impact has really not been priced in at all yet. But I think that in the future readings, we may get a flavor of the impact that tariffs actually had on prices. And there was an impact. So I wouldn't be alarmed if we got a few hotter than expected CPI prints moving forward. And it does seem like Trump and Elon have kind of found a path forward. Elon has said, I regret some of my posts about President Trump last week. They went too far. Question in my mind and in the minds of many is you're saying you regret them. They went too far. But were they true? That's the question. Nevertheless, this is as it relates to Tesla as an investment, and that is what we care about. I do think that this is a distraction. It's noise. It's not actually going to impact a longer term. Fact that the future of transport is going to be electric and it's going to be autonomous. Tesla is a leader in those two categories and. jensen of ceo of jensen wong of nvidia it's interesting that he kind of laid out without actually trying to laid out the tesla bull thesis himself and I think you know when jensen is talking about technology it's behooves the listener to to pay attention so talking about elon he mentioned that He's an extra extraordinary engineer. And every single one of his projects is revolutionary. He says, I love working with him. We've built some amazing computers together. We're going to build many more computers together. And I actually think there is a non-trivial chance that Tesla actually builds its own chips. It does have a knack for vertical integration. It does want to wean itself off of its dependency on NVIDIA chips. So I think that that's very, very possible that Tesla actually gets into that multi-trillion dollar business just to add another line of business to its portfolio. diverse array of trillion-dollar businesses that it's engaged in. The work he's doing with Grok, his self-driving car, his Optimus, these are all, every single one of them, world-class, every single one of them revolutionary. Every single one of them are going to be gigantic opportunities, and we're delighted. I'm delighted to be working with him on that. So every single one of them are going to be gigantic opportunities. Listen, Jensen Wang clearly watches this live. We've been talking about this for a long time. I think the Optimist opportunity is just right around the corner. So he's talking about Optimist, focused on Optimist. And I think it makes a lot of sense, even though everyone's focused on Robotaxi right now. But Optimist is actually the bigger opportunity. And even though Robotaxi is a massive opportunity in and of itself, He says, I think Optimus Opportunity is just right around the corner. This is someone who has a pulse on the bleeding edge of technology. It's very likely that humanoid robots are going to be robots that we can deploy into the world relatively easily. And this is the first robot that really has a chance to achieve the high volume and technology scale necessary to advance technology. I think this is likely to be the next multi-trillion dollar industry, and I'm very excited for him. So... When you get an endorsement, a bull thesis for Tesla from Jensen Wang, I think it behooves investors to listen. now the impact I'm referencing and what I think the market is bracing for is what appears to be an imminent strike on iran I don't think the us is going to be involved I think israel is probably going to act alone and there are signs that this is going to happen so if you look at um The U.S. Embassy in Iraq, there was there's news about a partial evacuation or perhaps even a full evacuation of the embassy in Iraq over security threats. You have people like Tom Cotton who are sort of, you know, getting people prepared mentally that, you know, Iran is a terrorist regime and we should all be afraid of it. By the way, he takes a lot of money from AIPAC. And he's trying to make it America's fight when it obviously is not America's fight in any way. Iran is not a threat to the United States in any way. And Washington Post reported that the U.S. intelligence officials have grown increasingly concerned that Israel may choose to strike Iran's nuclear facilities without the consent of the United States. I wouldn't be surprised If they do exactly that, Iran's sort of long arm in the region, Hezbollah, has been decapitated and basically rendered ineffective. The rest of Iran's allies are no longer players. Not that Bashar al-Assad was going to do anything anyway. It was just a punching bag. But basically their allies in the region are impeccable. Their proxies in the region are no longer able to fight on its behalf. I think Israel is seeing this as an opportunity to take out a regional competitor. And so I wouldn't be surprised if there is a substantial strike. Now, that would cause ripples in the markets. But I think the bounce back is going to be pretty quick. I'm hoping and I expect that this will not be a prolonged conflict. It will be something like previous strikes where just back and forth and then that was kind of it. I'm hoping. And therefore, if that is what transpires, the bounce back in the market should be pretty quick. Obviously, there are signs in the market that suggest investors are perhaps anticipating a conflict and the price of oil shot up around five percent in the span of an hour today. Yeah, there are signs. Some swing trade ideas, if you're into that thing. So obviously tankers outside of the Gulf, if shipping routes have to reroute from the Gulf to alternative routes, tankers that are specializing in routes outside of the Gulf may benefit, say, increased demand for their services. Gold ETFs and miners, gold typically does well. when conflicts arise. Cybersecurity, typically the conflict is going to involve a cybersecurity element to it. And so companies in that space will likely benefit. And utilities and generally defensive stocks typically do well when there is armed conflict anywhere in the world, especially when the conflict first starts. So with that being said, don't forget the thirty five percent off limited time deal. And with that, let's go to questions. Rashad, please. No more impacts. Yes. Never a dull moment. Never a dull moment. May Allah protect all innocent lives. All right. Brother Muhammad Hussain says, Assalamualaikum. Is BitBee a good option for retirement accounts? Can't give you a. personalized financial advice. I do think that for longer term investment horizons, Bitcoin is a good addition to any portfolio. I wouldn't go too crazy with it. The fact of the matter is Bitcoin, there is a threat to Bitcoin and that is or there is a weakness to Bitcoin and that is it is reliant on the network always being up and not being compromised in any way. Now, it is becoming increasingly difficult and some may argue virtually impossible to break the Bitcoin network or for it to go down. But the fact of the matter is a network is still required, unlike something like gold, which doesn't require a network. That being said, now there are obviously a lot of advantages to Bitcoin versus gold. But that being said, for people who just go all in on Bitcoin, for example, just have that in the back of your mind when you're making decisions. I think it's important to to understand what are the risks of the investments that you're making. It's not saying I'm predicting this to happen. I'm not. I'm just saying that people are often more certain of something than they sometimes are. have a right to be, basically. So just keep that in mind. Yalawaya, big fan of the name. Salam Aleikum, brother. Thanks for the precious and supportive information. Is there any news about PLL? No. I would hold at this particular point. Not investment advice again, but I think holding makes sense. Rehan says salam. Wa alaikum salam. Nice to see you all. And leave a like if you enjoyed this live. I would really appreciate that. Make sure to take care of yourself. And until next time, assalamu alaikum and peace be upon you all.