The Compound and Friends
00:03:42 · Josh Brown, Daniel Clifton, Michael Batnick
[00:03:42] S2: So it feels like it's a overnight to me, but you're saying, like, this this kind of sea change happens more often than you think. Absolutely. And I'll tell you this. [00:03:50] S1: I mean, Trump, the Republicans were losing districts in Texas by 35 points that, you know, that were Republican districts in special elections last year, even before the war. And so we had... This year, we had a no poll policy. We were not going to report on any polls because polls are garbage. We used hard data. How are people voting in the special elections? And what you began to see were those Republican voters starting to go, I'm not sure I'm down with this. You saw the Democratic voters go, I can't believe how bad this is. And then you had the independent voters swing the other way. And so that trend had just been slowly, slowly, slowly developing, and the war just seemed to, like, catalyze it and just put it on over. He lost [00:04:32] S2: he lost 20 points among non college educated white men Correct. Which is... I think partly explains the huge burst in the stock market because people knew there's not gonna be any storming of the capital or any election denialism this time because that army [00:04:50] S1: Yeah. They weren't there. [00:04:51] S2: They're not there anymore. Yeah. That was that was that was remarkable. [00:04:54] S0: Absolutely. I I will tell you this.
00:04:54 · Michael Batnick, Daniel Clifton, Josh Brown
[00:04:54] S0: Absolutely. I I will tell you this. [00:04:56] S1: The irony is that's the fastest cohort of the declining unemployment rate in America, which is amazing. They're... Like like, we're putting people back to work in America, and they were still like, we don't want this, And it's rural voters. And do you know what's going on in the world? Diesel, fertilizer, tariffs, and data centers. When I came on this show in February, I was in a month before, I was in a diner in Manassas, Virginia, where all these data centers are, and it's Trumpville. And everybody was complaining about data centers. And it was this moment of, wow, these are Trump voters who hate these data centers. This is not a Republican Do they [00:05:34] S2: hate the physical structures themselves, or do they hate the output of, we're going to use these data centers to get rid of all the middle class jobs? No. What do they hate [00:05:46] S0: about it? [00:05:47] S1: It's all the above. [00:05:47] S2: Okay. [00:05:48] S1: Okay. So there's a narrative on Wall Street that you're just going to solve this. You're going go into communities and pay towns off. Right? And I believed that at first. You get there, and you go into town halls, they're like, I'm going to get cancer. You're destroying the rural nature of my the rural character [00:06:01] S2: of So, my physical structures themselves. It's not just about the externality of what the data centers represent.
00:06:01 · Josh Brown, Daniel Clifton, Michael Batnick
[00:06:01] S2: of So, my physical structures themselves. It's not just about the externality of what the data centers represent. [00:06:09] S1: But they also represent higher inflation, so it's a proxy for that. Take my job. Making some big tech guy rich. And most people have not played with AI yet. You have. You know it. Right? That's your job is to understand how these technologies work. A lot of people have not had interaction with it yet, and they've seen The Terminator. And they're like, Woah, wait a minute here. What are we doing? They don't understand what that benefit would be for them. [00:06:33] S0: And James Cameron. [00:06:34] S2: I think the industry I think the industry has done one of the one of the most extraordinarily bad Yep. Jobs Yep. Of explaining Yes. How this technology... Like, how do you get from point A to point D Yep. Where people's lives improve? Absolutely. It's almost as if they haven't even tried.
00:06:34 · Josh Brown, Daniel Clifton
[00:06:34] S2: I think the industry I think the industry has done one of the one of the most extraordinarily bad Yep. Jobs Yep. Of explaining Yes. How this technology... Like, how do you get from point A to point D Yep. Where people's lives improve? Absolutely. It's almost as if they haven't even tried. [00:06:54] S1: Yeah. So this is the whole basis of the beginning of the year for us, because I looked at it and I said to myself, You have to lay the groundwork down. And I'm going to give you an example. Gilead, a pharmaceutical company, cured hepatitis C. They cured it. The system is not built for cures. They are going to save Medicare hundreds of billions of dollars. They forgot to go tell everybody in Washington. Well, know what? The managed care had to pay for it. The hospitals had to pay for State governments had to pay for it. They were like, This is an outrage. We're paying $80,000 for this drug. Well, you know what? They saved hundreds of billions of dollars for the federal government, and if not at the table, you're on the menu in Washington. And the tech guys were like, oh, we're creating jobs. We're good. You know what? The environmentalists hate this because it's such an expansion
00:07:38 · Josh Brown, Daniel Clifton, Michael Batnick
[00:07:38] S2: of energy. Backing up, though Yeah. And we're gonna we're gonna do all this on the show. We're... Just like to set the table. Yeah. I was... I just came from the New York Stock Exchange. Yeah. The Nasdaq's down 5%. You have companies like NVIDIA down 10%. Yep. SanDisk, another 20%. I think it's... Personally, it's it's the right reaction. It's overdone in the sense that there is a contingent of Middle America that works construction jobs. Yes. The construction unions like the data It's keeping their membership roles fat Yep. And keeping people working. I don't envision a scenario where a Democratic governor comes in. They might say moratorium on new construction, but they're not saying close down the work site, send all the workers home. [00:08:26] S1: Correct. [00:08:26] S2: But that's the way... The market is acting as though, like, alright. Well, no no more Internet. It's it's a little overdone. [00:08:34] S0: So, Dan, let me jump in just with a quote for you to chew on. Yeah. So this is from Meta's president. Yeah. She said that this morning. I'm sure you saw this. Yeah. She said, We did have a governor that won last night who did make data centers a big part of their platform say, As soon as we get past the inauguration, let's meet because we don't want to lose this investment in our town. We don't want these jobs to go elsewhere. [00:08:54] S2: Yeah. [00:08:55] S1: So let me let me just take one step back. [00:08:57] S2: Well, let me take one step back. Yep. [00:08:59] S1: Start the show. Alright. [00:09:00] S2: This guy's on fire. Yes.
00:09:00 · Josh Brown, Michael Batnick
[00:09:00] S2: This guy's on fire. Yes. [00:09:02] S0: Let's go. The Compound and Friends. Oh my god. Ad[00:09:09] S2: This podcast is sponsored by Nomura Asset Management. Markets shift in ways that aren't always visible. Over the course of a century of putting clients first, Nomura has developed the global expertise and local insight to help them meet changing currents with a deeper view. Nomura's growing ETF platform is a direct reflection of this. Nomura offers high conviction, actively managed ETF strategies across regions, sectors, and asset classes to help investors navigate complex markets with confidence. To learn more about Nomura's ETF offerings, including prospectus information, visit nomuraassetmanagement.com. Investing involves risk, principal loss is possible. The Nomura Funds exchange traded funds are distributed by Foreside Financial Services LLC. Foreside Financial Services LLC is not affiliated with any Nomura entity, including Delaware Management Company and Delaware Distributors LP.