Investment Strategies: Stocks, Bonds, and Autonomous Taxis

Josh Brown advises to shift from cash to fixed income for long-term gains due to impending rate cuts, emphasizing the need to lock in 5% risk-free.

### Investment Insights from CNBC: Josh Brown on Fixed Income Strategy, Tom Lee's Core Stock Picks, and Kathy Wood's Tesla Price Target
* 💰 Josh Brown advises investors to "get out of cash" and consider extending duration for money with a 3-7 year time horizon to **lock in higher risk-free yields** before they disappear.
* 📈 $90 billion flowed into ETFs in May, with a significant portion going into fixed income, signaling a **shift in investor sentiment towards rising interest rates**.
* 🍎 Tom Lee recommends **Apple, Tesla, and Nvidia** as core portfolio holdings due to their **strong brands** and **leadership in the AI sector**.
* 🎯 Small caps are expected to outperform when the Fed starts cutting rates, as they offer **better earnings growth** and **lower valuations** compared to large caps.
* 🚗 Kathy Wood's ARK Invest has set a new price target for Tesla at **$2600 by 2029**, based on the successful launch of its **autonomous taxi network**.
* 🤖 Wood believes that regulators will eventually approve the widespread use of Tesla's Robo taxis, as **human error is responsible for the majority of traffic accidents**.
* 🎓 Joining the Patreon community at patreon.com/nash offers a **30-day money-back guarantee** and **access to exclusive content**.
* 🛒 Use the "**Tom25**" coupon code to get a **25% lifetime discount** on Stock MVP at stockmvp.com (valid for 24 hours).

folks, we have an amazing show for you today. We have Kathy Wood on CNBC talking about her new price target for Tesla: $2600 by 2029. Tom Lee is talking about the three stocks that must be in every portfolio with some very interesting arguments. Also, we got Josh Brown on CNBC talking about people needing to get out of cash right now, but not for the reason you think. So let's get started. First of all, we have to talk about Josh Brown. Josh Brown is one of my favorites. He wasn't CNBC. This guy is a very genuine, honest, down-to-earth guy. I like his style. He never bullshits. Get out of cash. Get out of cash if you have money that you're not using next year, later this year, tomorrow, and it doesn't need to be that liquid. If you have a three-year, five-year, seven-year time horizon on that pool of money, I want you to consider extending duration. I'm not asking you to take credit risk. You could do this with treasuries.

problem, but I think your days of 5 1/2% yields risk-free are coming to an end. I don't know the exact date. I don't predict interest rate moves, but it feels very likely to me that the smarter bet, if you look back 5 years from now at a portfolio, the smarter bet will have been to extend those durations, except less overnight yield, but have that Runway so that you're earning more over time. We did this for clients between February and March across all of our asset allocation models. It was the first time we had shifted back into fixed income from cash since 2020 when we went the other way when you weren't being paid for duration at all. You're about to be. It's not tomorrow, but it's coming, so I want you to start thinking about that strategy. I think the markets are getting it stage street is out with some research this morning talking about ETFs. $90 billion came into ETFs in May. That is roughly a

third of all of the inflows for the year coming in in one month. Of the 90 billion that went into ETFs, 60 billion went into equities, but 30 billion went into fixed income because I think the message is starting to hit home that this is not going to be forever. What Judge Brown is saying here is super important, and I want to explain it now. It's not what it seems like. He's not telling you to get out of cash and buy stocks, not necessarily. He's not excluding that, but that's not the main point of what he's saying. Josh Brown is talking about the infinite money glitch that is get 5% by doing nothing risk-free. This is what we had for the past two years. He's saying, Look, this is about to be finished. Capo the FED will cut rates, that 5% risk-free goes away forever. Now he's talking about the fact that you have to jump on it right now, lock in that 5%, because very, very soon. I don't know if

tomorrow or next month, but at some point in the near future, that 5% risk-free is going to be gone on unless you grab onto it right now and lock it in. Now you have to understand, and I've showed you this in previous videos, a lot of wealthy individuals have lots and lots of fixed income instruments in their portfolios, talking about bonds mainly. I always advocate investing very closely with how rich people manage their money, and I've said it multiple times, fixed income instruments are a smart thing to have in any portfolio, no matter how old you are, even in your 20s. In fact, our Patreon, patreon.com/for-session-nes, we have a table that we put out by what age, how much of your portfolio should be in bonds, and Josh Brown is basically saying, Look, we told our clients this is a good time to lock in that 5% before it goes up. What he's saying here is super important because it's saying, Look, guys, this isn't money that you need to have.

liquid because if you are playing the short-term game, the market can go haywire. You need to relinquish that money because it can get volatile. It can get crazy. If you are in the position that you must have that money all of a sudden, you might have to sell it at a discount. It's not a good position to be in. So make sure that if you're actually investing in this market, you're understanding that this is a five to seven-year horizon. Anything can happen in a year or two. Now, he also talks about the fact that 90 billion dollars came into ETFs just in the month of May. That's 30% of the average annual inflow into ETFs in one single month. That shows you that where the actual money is going, not where the talking happens. Now, whether you're buying stocks or whether you're locking in that 5% risk-free or a mixture of these, make sure that you actually do it with money you can forget about for the next five to seven years.

that couldn't agree more with Josh here. Now, another guy who I absolutely love is Tom Lee. Tom Lee was on CNBC, and he basically talked about three stocks that must be the core of every single portfolio. I want you to listen to this, and then I'm going to break it down. Check it out. You know, Apple is one of our granny shots. It's a stock that we think investors need to really hold for the long term. The company has always been at the center of everything that's happening around a consumer and new technologies. So to me, you know, there might have been some head scratching because these features may not be part of someone's life just yet, but as you know, Apple gets a lot of these things right. I think investors should look at it as a core portfolio holding. You know, we, the granny shots, is basically a thematic portfolio that buys the strongest stocks in a specific theme. So when you think of AI and Millennials, Apple and Nvidia and Tesla, I mean, they're really at the center of that now.

obviously, he's talking about Apple, Tesla, and Nvidia. Now, Market sentiment on Substack actually has a very interesting paper about how Brands, strong Brands, overperform every other company in the market on the stock market. So that's something that you have to think about because Apple, Tesla, and Nvidia are extremely strong Brands. He's talking about the fact that AI, artificial intelligence, is leading this next bll cycle, and these three brands are going to be in the Forefront of the AI Revolution. He's saying look, people understand why Nvidia, people understand why Tesla, people doubt Apple, but Apple through the past couple decades proved to everybody they're always going to be in the game. Now look, Apple is never first to any technology, but when they come out with their version, it is infinitely better than anything else the market, and they find ways to make money at a great margin, and AI is not going to be different. Now, another point of discussion in this video was small caps. One thing investors have to keep in mind is small caps get hampered when

investors worry about lack of visibility. You know when the FED uh begins to cut, and we actually have shown this to our clients, and the number of expected cuts begins to creep up, that has been correlated with the IWM outperforming the broader market. So, the reality is the stock market is saying, Look, I don't want to touch small caps until the FED starts cutting. But in the meantime, small caps have better earnings growth, you know, close to 19% in the Russell 2000 versus around 9% for the S&P, and the median PE multiple is actually around 10 times in the Russell 2000 compared to 16 times for the S&P. So, better growth, lower multiples. Um, I mean, I think it's a great risk-reward for investors right now. It's a bit of a waiting game, but boy, I mean, I don't know anyone who's made money trying to trade this week to week. Um, any great ideas, all the great ideas take time to work. I think investors have to

keep in mind is that they might think a small cap is like a weak company, but actually small caps, especially in the Russell 2000, tend to be very strong companies that dominate a smaller market. So that's why, you know, they're not a trillion-dollar company, but they might be number one. Tomley is a known proponent of investing in small caps. Over the past two years, while the rest of the market went haywire, small caps have been lagging, and still to this day, they are lagging. So what Tomley is saying is that they're waiting for a trigger event. The first announcement of a rate cut is going to send these small caps flying into the stratosphere, according to Tomley. And what he's saying is right now we're getting that rubber band effect. Every day that goes by that this doesn't happen, the rubber band stretches more and more and more. The minute the FED announces that we have rate cuts, it's going to release, and it's going to be absolutely insane. Now he

also talks about the fact that even if you actually look at the fundamentals of these companies, small caps does not necessarily mean that the company is small. It just means that it's a dominant company in a potentially smaller market. But he's looking at the fact that the PE, the price, the earnings right now on the small caps is so low, it's almost criminal not to get some exposure to it. And of course, Tom Lee is telling you the same thing Josh Brown told you. He literally said, I don't know anybody who made money off of this trading week to week. The only way is long-term. Congratulations, Tom Lee is saying the same thing I've been saying for the past four years, long-term time in the market beats time in the market every single time. Now, Kathy Wood was also on CNBC and Kathy Wood talked about her new model. She just released ARK Invest released a new price target for Tesla for the next five years, with the top one being $3,100, the bottom one being $2,000.

the mid one being $2600, so $2,600 a share. Help us do the math. How do you get there? What has to happen for all that get? This is a 5-year price target, as all of ours are. And what has to happen is an autonomous taxi platform. Tesla's autonomous taxi platform, so Robo taxis, which is a SaaS-like model instead of selling a car and maybe the software package, and that's it. This becomes a recurring revenue model. A slice of every mile driven on that autonomous taxi network. Very high margins right now. Auto gross margins are around 16%. Gross margins in the SaaS world are more like 80%. How big a market does that have to become for Tesla to get to the $2,600 price? The reason I ask is there are some cities that may allow this to take place. There may be geofenced areas where people are going to do this. And there's also obviously a larger view that one day these cars will

be able to do everything by themselves everywhere in the country. Yes, well, this is the largest AI project on Earth. Uh, uh, autonomous mobility broadly and um, I think it's going to catch on as quickly as that. Now, of course, what we've had during the last um, 10 years is uh, a movement toward FSD, and now we're seeing safety statistics. And I remember full driving for those uninitiated self-driving. You look at the um, number of miles between accidents for the average car in the United States, it's about 200,000 miles. Uh, you look at a Tesla without FSD, full self-driving, uh, just autopilot, it's more like 600,000 mi. With full self-driving and an older version, not even the latest 6 n months ago, 3.2 million miles. Tasha Keeny has done this work, you know, vol built a brand on safety, and I think Tesla is going to use. We're in the middle of 2024, you're saying we get to 2029. Yes.

that that's where that price is. I think what I'm asking is for your base Cas for this to work. And by the way, we should say that Elon Musk tweeted out, uh, extremely challenging, yes, uh, but achievable on top of your Tweet, yes. Um, when does this all have to really go into effect? Yes, we, uh, believe that they're setting up for for robo taxes, the network within, uh, I would say a year and a half, two years. Elon would say maybe we'll, we'll, we'll start it, but that also requires Regulators to sign off on all this. Now, Regulators, uh, have an issue, and that is the, uh, auto accident rate has gone after Decades of going down with auto safety measures sharply. We talked 40, 40 to 50% texting is a big part of it, you know, disproportionately young people. So we deaths in the US have gone from the low3s, uh, I think they got into above 40,000, uh, so I think the if if, uh, Regulators understand and

they do that 85% of all traffic accidents are caused by human error. If you take the human out, you're going to make the roads Kath. We literally asked Pete Budajudge, the Department the Secretary of the Treasury of Transportation, the Secretary of Transportation yesterday. Budajudge about this and he did sound like he was open to the idea. As a result, yes um and that's the first time I've really heard a public official who's kind of embraced it instead of said wait wait wait wait wait we don't like the rise of the machine. Absolutely, he is telegraphing that the roads ultimately are going to be much safer if you take the human being out of the equation, much safer. Now as far as the price Target, she admits that the price Target is ambitious but she caveats this by saying look guys, this price Target that $2,600 only happens if robot taxi happens within the next two years. If it doesn't, the model actually says that Tesla will be a $350 stock, still a 100% profit but

nowhere near that 2600. That 2600 is premised, is based, is founded on the launch of robot taxing within the next two years. If it doesn't happen, the price Target is actually 350. Pay attention to this. Now, she also talks about the fact that regulatory fears about Robo taxi are overinflated and are basically a huge overreaction. And I agree completely with what she said because at the end of the day statistics are very clear on this. Most accidents, the vast majority of accidents happen because humans make mistakes, not because of mechanical failures or software bugs. The data we have right now on the autonomous driving that Tesla has launched in the beta format, the FSD shows us the FSD is so much safer than human drivers launching this and launching this in a wide network of robot taxis is going to make roads safer. People text, people do stupid stuff in their car, people eat in the car, they do things they should in their car that I don't want to mention in this clip but at the end of the day Robo taxi

FSD, especially the one with a track record of safety like Elon FSD, is the solution, not the problem. And what she's saying is that regulators are starting to get it, and the whole fear is completely overreacted, overinflated, and should not be taken seriously. Now, I hope this was helpful for you. I hope you had a good time, just as much as I did. If you would like to join our Patreon and join the academy, it's patreon.com/nash. We would love to have you on there. I just want to remind you we have a 30-day money-back guarantee. You can come in, try it out for a couple of weeks. If you don't like it, check out money back, no questions asked. Also, I've actually extended the Tom 25 coupon code that gives you 25% off on Stock MVP. stockmvp.com. It is now on for the next 24 hours for the people who sign up today. 24 hours forward, lifetime 25% off. And of course, you're more than

welcome to join our growing Discord free community 11,000 members. discord.gg Nash would love to have you on. Now actually just last night, we had an amazing 1-hour Q&A on our public chat with people asking questions about stocks and talking about the economy and stuff like that. It's absolutely free to join, and I would love to see you there, simple as that. I'll see you next one.

TOM LEE: "BUY THESE 3 STOCKS IN 2024 AND NEVER WORK AGAIN"

Tom Nash

Kathy Wood has a new price target for Tesla at $2600 by 2029.

Tom Lee discusses the three essential stocks for every portfolio.

Josh Brown advises getting out of cash and extending duration, emphasizing the end of the 5% risk-free period.

He highlights the shift from cash to fixed income and the impact of ETF inflows into equities and fixed income, stressing the importance of the strategy in the current financial market.

The Importance of Locking in a 5% Risk-Free Investment and Core Portfolio Stocks

Wealthy individuals are prioritizing fixed income instruments in their portfolios, emphasizing the importance of locking in a 5% risk-free investment.

Josh Brown advises clients to secure this 5% rate for the next five to seven years to avoid potential market volatility.

Meanwhile, Tom Lee highlights Apple, Nvidia, and Tesla as core stocks that should be part of every long-term portfolio due to their strong position in AI and with Millennials.

The Impact of Strong Brands and Small Caps in the Stock Market

Strong brands like Apple, Tesla, and Nvidia are predicted to outperform in the stock market, especially in the AI revolution.

Market sentiment suggests that small caps, despite lagging, have the potential for significant growth, with the first FED rate cut expected to trigger a surge.

Small caps are seen as strong companies with the potential to dominate their market, offering a great risk-reward opportunity for investors.

The Investment Outlook for Small Caps and Tesla's Future

Small caps are currently undervalued, presenting a great opportunity for investment, especially for the long term.

Kathy Wood of ARK Invest has released a bold new price target for Tesla, banking on the success of its autonomous taxi platform to drive recurring revenue and significantly increase its stock price over the next five years.

Wood believes that Tesla's autonomous mobility project will rapidly expand and that the company's focus on full self-driving technology and safety statistics will contribute to its future success.

Elon Musk's Timeline for Robotaxis and Tesla's Stock Price

Elon Musk plans to launch robotaxis within the next two years, pending regulatory approval, to improve road safety and reduce accidents caused by human error.

Tesla's stock price is projected to reach $2600 if the robotaxi launch is successful, but will only be $350 if the launch does not happen, with Musk's ambitious goal hinging on this timeline.

The potential of robotaxis to make the roads safer is supported by data showing that autonomous driving is much safer than human drivers, despite overinflated regulatory fears.

The Benefits of Elon FSD and Invitations to Join

Elon FSD is seen as a solution, not a problem, with regulators starting to recognize its safety.

The speaker invites the audience to join their Patreon, offering a money-back guarantee, and promotes a 25% off coupon for Stock MVP.

They also welcome people to join their free Discord community and mention a recent Q&A session.