20 - Planning Matters Interview With Michelle Schneider - Crypto v Dollars

You plan for success. Welcome to planning matters radio back into planning matters. Leeland John founder Sean Manning and I am joined once again today I shall fighter market and they going to be talking with us a little bit about crypto currencies. The rise we've seen in prices and China's announcement that they have recently released their own version of the currency, first and foremost Michelle, welcome back. Joining us. Thank you for having me back.

A pleasure to be here while we appreciate the insight because obviously crypto currency is receiving a lot of attention right now, and rightfully so, I mean prices are going crazy. What do you see this could be attributed to all start with client which of course is the granddaddy of all the crypto currencies. We've seen a lot of sensational investments a lot of legitimacy from companies like BlackRock and J.P. Morgan and PayPal and squaring the list goes on and on and on and as a result now also with more traditional ways to trade it with the advent of claim even though client hasn't necessarily performed the way one would expect volatility has come way down and as a result of its more transparency and more ability for people to train it's actually had a volatility situation that's also Condado Marina price range which is amazing to talk about something like that coin that was so volatile in terms of the actual technical chart and less volatility with a price range so right now we're trading between my 52 and 57 and it looks like we get through 58, 60, and we could have another leg up its lost market Terms of the crypto space compared to a theory in which, as we are talking made a new all time high. So it's it's fascinating that of course you have a whole dose crying and then you have the ex-RP thing like calling in all the crypto's are really flourishing from myriad of reasons were seeing some pretty high profile figures really pumping up and talking about those going in particular or not.

I certainly see that filtering down to everyday investors. They are excited about this, but what cretins do we put behind that and is it right for those who high profile individuals to be pumping it up the way that they are the person and that's you are not there yet was actually going to be on Saturday Night Live this weekend and of course people are expecting him to God knows what he can do. I mainly know that he's done everything from whether it was real or not smoke a joint on camera to do so he can come out with anything at all anticipation since he's been talking up does coin is that that will continue to happen so you know it's called almost reminds me of the fake it till you make it kind of thing. Yeah yeah because right now there's actually some that's starting to be up to something that is started out as a joke, so I added a few aware, but like the Oakland A's and I think is one other baseball team is actually allowing you to buy two seats for three games 400 so preachy, so now so as more people that say hey you can get don't you can do this and give me does coin flourish that will then start to feed on itself so that's why the fake it till you make it kind of thing. Speaking of which, though how much of the value of any of these crypto currencies, the true, lasting value is tied to them actually being accepted as a form of payment somewhere with this so far that I guess the quintessential attachment of bitcoin to some level of value is you can buy a Tesla using bitcoin so there you go, and I don't know how Muscat has adjusted variation of the price for Vic bitcoin.

But I would imagine if he's got a number like 50,000 for S3 or whatever the Tesla models on 10 to be an expert on Tesla by in terms of the car itself .1 bitcoin would cover it. At this point in time bitcoin would probably cover the cheaper version I think is right.

I'm not an expert on test so whole lot more.

Those coins delay and film is very different because the store of value with the cerium is very much tied now into the block chain technology which is legitimate but still also see in terms of really being able to measure what you theory them versus whatever the store value is and so the salt spaces they could make it but we step back is an overall theme.

I think you mentioned in the very beginning when you introducing me about China.

To me the overall theme here is the D5 right that's big buzz now which is the decentralized finance versus what China is doing with digital lawn which is really basically trying to control the currency first within its own domestic borders and then branching it out to international, which is the exact decentralized because they completely manipulated, they can completely make as much as they want. Plus everything that you buy. If you use digital currency is stored in the database so they know exactly not only from more nefarious standpoint of knowing what you buy may be encouraging certain things but also even from a marketing standpoint, less nefarious promote to you because you bought this, which is completely counter. The reason for the inception of the bitcoin in the first place and then you touched on that that that the decentralized finance was really the motivation behind these things. But the fact that this is so opposite and and and opposed to the conception and the reason in the motivation that many got into this sure it's it's a digital currency but it's also what I think a lot of investors are fearful of that.

Now every one of my single transactions can be tracked and traced and followed well and that's why big data is a trend that I we've been watching to emerge this year and so far it's taken a backseat.

We, for example, were looking at data dog which just got killed with all of the stocks that did well during the pandemic that theme of them getting killed right now data dog is doing that but there's a couple stocks and companies that are dealing with big data and data collection that merit watching but back to the digital and when you on and the crypto currency space. To me the biggest concern here is the fallout for the US dollar is the biggest concern and you listen to people and the like to attach all kinds of blame to why the dollar is down, and of course inflation we know is starting to pick up and pick up big time.

But apart from inflation, which of course is part of the fact that the dollars down is attracted to by more goods and spaces. Specifically, commodities the dollar. If China that say wins this war with digital currency in a do branching out internationally and they make because their goods are so much more attractive to buy already.

As we saw with our trade deficit was still importing more than we are exporting here in this country is in this country. What happens to the US dollar. Now I am by no means the type of person that goes into apocalyptic type of panic. I don't but I definitely think we have a situation here that needs to be monitored.

Now I'm all about making the money so I go on long the cerium. I'm looking to get back in the bitcoin. I've been watching even ripple sum of people in my office have been long does coin taken some profits here no longer all long silver long sugar along a bunch of commodities but if I step back as an American citizen, I have to say it does concern me a lot where you see you theory them going from here as compared to maybe bitcoin or any of the others that you mentioned on itself right so it would look like 3500 was going to be somewhat of a cap and then went down to about 32 and didn't go anywhere. Further, now it's back close to got to 3601 I think today I heard 5000 heard bitcoin I've heard 75,000.

I've heard 150,000. I've heard hundred thousand still very so very speculative and that's what that would be my answer is it's like a commodities trading like a commodity, and when I say training like a commodity I'm going back to when commodities were hot there hot again, but they haven't been hot in 35 years so much, other than the meal we had an oil throughout the last 30 years 40 years. But otherwise, he's been kind of flatline, but when they get going, what's the value of gold. What's the value solicit value of week feeds on itself and that's kinda how I'm looking at the crypto spaces that trading in an emotional pattern and luckily like I said before, there's some technical analysis you can do here based on some history now with bitcoin. Otherwise, who knows what. What do you see as the value of investing, perhaps in the block chain technology versus in these crypto since most of the crypto's are in some form or fashion, at least loosely based on the block chain technology, but the block chain technology itself can do many other things besides just be that transaction register a ETF call block which is totally tied to block chain technology and if you don't mind me turning away from the camera for one second I can put up a chart sure. Thank you so is BL okay is is is it's it's the amplified transform data's sharing tied to block chain and actually that's not doing so well compared to overseeing in a cerium now there are companies that are using block chain technology like riot and micro strategy companies are doing well right now. In particular, block chain and of itself is broken down not quite to the lows that we saw just a few weeks ago but still not going in the same direction as the excimer seeing in it. Let's say for example are some more established companies heavily behind block chain. Go to meeting IBM and Oracle and and companies like that Red Hat those type companies yes they are and and yes, and so would this be something that I would keep my eyes on, especially if you are more traditional type investor and want to get while watching technology but don't want to actually by Colleen or by one of the actual coins in and of itself, or wait for new ETF's to emerge which we know right now is is is under planning to happen at some point I think some of these more traditional companies are good are good ways to look at. We do not arrive.

We been out of micro strategy. That's what I know right now that kind of favor they're not doing anything so were waiting will so you touched on the fact that several companies. Many companies, mostly tech centric companies did very well during the pandemic and that they are not doing so well now now as as the pandemic will call it, is coming to an end. Where do you see the the opportunity lie if those companies that had that meteoric rise and did phenomenally well during those conditions now fall into lesser or out-of-favor.

That's a great question and I'm not, so there's a few stocks on watching, particularly for that one. Believe it or not is way fair. Okay, just what you like like that always went up a thousand percent from March 2022, March 20, 21, and now has an action report earnings tonight, so there's one because it saved the Excel because of e-commerce. And then after that it was home-improvement people looking for cheap furniture set are to redo their homes at their staying in good company for a long time, long before the pandemic. So does that mean wayfarers over because pandemics over and people are going to be going shopping again to furniture stores or what have you.

Well, it's only reason why it's taken a hit. I think they'll be a level of value there some very curious to see what wayfarer does. After reporting and I be looking for some level of support is elicited endorsement is at least personal experience that had excellent customer service for me as well. On the couple occasions that I've ordered something and has been exactly right. They've taken extra steps to correct so you are absolutely right. In fact, when we have a new office here in and we bought I bought a vanity casino when I get dressed for the camera. I do it at the office so I have a whole makeup situation going on and we bought it from wayfarer because the price was unbelievable. Number one became damaged wanted the damage one hears your new one. So yes, it's a great solid companies that would be almost to the top of my list of interest, you will experience for me. By the way, I'm sorry, wish you and I are talking on right now. I mean does this mean that once the pandemic is completely overwhelming to be traveling to where you would not only know I'd love to.

Probably actually I really would love to go to North Carolina.

Been a long time but I won't have a corporate subscription now to zoom because we have meetings we have staff and people working with us all over the world. Basically on his way because I mean people like Jamie Dimon said oh I can't wait. I'm done some done with zoom. Again, it's not going to be gone forever. It's still an unbelievable technology and it still monetizes the low it's very cheap so there's another one post pandemic. I'm waiting for zoom has I think reports at the end of May.

So at this point. Now I'm just waiting for earnings to see what happens. I would jump in ahead just to the eye, examples, and I still like I said I like data dog which did very well during the pandemic because people were shopping online.

So all that data was being collected data dog right now is also really depressed always companies interest me. I think we have to do is you have to look beyond the pandemic come up with some level of fair value and then understand if it fits into a megatrend that is in government go away anytime soon appreciate your taken an insight on those now circling back. You touched on the strength of the dollar inflation. Obviously, an indicator of the direction the bat is heading. But if eight a more conservative investor wants to just maintain purchasing power and and maybe get a little growth on their purchasing power. While the values of the dollar is devaluing. While there is inflation and they don't want to be ultra speculative amine commodities. You mentioned was one area where you could turn but but maybe they are a little bit more of a little bit more conservative.

Where are you seeing is any kind of alternative that can kind of combat the effects of the weakening of the dollar and and loss of purchasing power to really really good question because typically you know what we're really talking about and I think the biggest fear that I have for the rest of this year and into 2022 is stagflation. So now you're looking at a situation where what safe if inflation goes up continues to go up the economy stagnates because the Fed has to do something to raise rates. What safe. So there is some some people buying tips, which is the inflation protection, but bond so that's one place to look at its nonvolatile it just kinda goes sideways and that might be a place for steady money. I know you mentioned gold is speculative and it is speculative, but it's still a currency in and of itself. Let's face it, I'm actually had somebody on an interview earlier in the weeks and will in the case of the apocalypse you know and I love these people who are, you know hysteria with the signs were running right always think about being in the subway in New York and the people the end time is working out. Yeah, I mean I think he was try to make his point about his question is, what if everything shuts down in the grid and technology goes away because it's been shut down and went back to like you know basically sticks and stones.

Gold is still worth something. So know it speculative.

I think I would be looking at gold right here. However, I talked to my clients about that and I told them that under those same set of circumstances that gold would be most valuable. It also could potentially be a liability. During those times, things turned back to sticks and stones in your one of the very few that actually has some physical gold that that may be some somewhat of a concern at least as much as it is something of value, but I also heard people say, hey, bitcoin is the new gold gold is the new gold. Gold has always been gold.

Gold is always been the I guess. I have laughed at the conversations and the questions I've been asked is like Williams gold dead but is my goal versus bitcoin and you know I like I, I, like to say my mind I come up with like Godzilla versus King Kong ally, but but but yeah but you getting back to the sticks and stones you write immediately when you were talking I was thinking about the series that I used to watch the walking dead. And it didn't matter what. The thing I was most value full was ammunition guns so that's a little scary right and and and and human power. You just humans to be able to create and build and grow and stuff like that. No food, and let's get so let's get back to food because we started out the food prices have gone up tremendously and so I would say that if you wanted to do something less speculative.

Even though it is speculative, you know, I might be looking at looking at some of those food commodities as well and you can buy ETF's and if but there been going up, and there may be more room to the upside, but in terms of telling you yeah I this is just in a sentence to be studying you not to lose money work environment. Now with the things of change so much. I bonds used to be the big safety plate. I would necessarily count on that currency. I don't know if I've necessarily count on that. So what are we really looking at here to count on tips I come up with, you know, and I really don't know what else I mean unfortunately were in a situation here where speculating is the way to protect yourself. You just have to know where to be and how much to risk interesting times we live and minister Michelle Schneider here and she was one of the first female traders of the New York commodities exchange in the World Trade Center. She is out director of trading education at market gauge makes regular appearances on Charles Payne and CNBC and so glad to have you join us here again on planning matters radio think particular time, provide the insight really a lot of great information. Thank you Peter so much.

I hope to come to North Carolina Sunday and meet you.

I love to have you and just just to do something like this.

I we can do that resume but if you like to come for a visit with would love to have you sometime.

I don't want to miss the opportunity to mention your book, either plant your money tree, a guide to growing your wealthy I was to pick up a copy. But there's no one behind the N and death. One that I would. I would suggest readers take a look at. So Michelle, thank you for being here again on planning matters and look forward to having you back sometime soon you Peter very much great interview there with Michelle Schneider. We always appreciate her joining us on the program provides great insight on some topics that I have recently spoken with a lot of clients about, so if you got questions or concerns. If you would like to get a plan put together find out any more information on any of those topics phone.

You're welcome to give us a call. Here Rochon planning 919-300-5886 919-300-5886 look forward to planning the content of this radio shows were fighting for informational is not a solicitation or recommendation of any investment strategy you were purchasing investment tax or legal advice from an independent professional advisor.

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