00:00 Yeah. Okay, Frank, let's get right into it. The creator of the Jets ETF, it has been grounded.
00:08 I know it did get into some overbought territory, now oversold. Can the airlines overcome
00:16 the screaming higher oil prices? Well, I think it's just like we were talking earlier about the
00:23 negative sentiment and attacking leaders, etc. There's this pervasive, very negative sentiment.
00:30 I recently was in Europe. I flew over to Italy and every flight was packed. This week, I flew
00:37 up to Denver for the institutional 35th year of institutional investors only gold fund and gold
00:45 CEOs and CFOs from around the world, the Australians, the Europeans, everyone comes
00:50 to this event. And it was pretty subdued. And it's just the flights are packed. I try to get home
00:59 early. No way. Everything is sold out. So I think we're dealing with a lot of negative sentiment.
01:04 The biggest negative sentiment here, which seems to be oil, the surge in oil prices,
01:09 has an impact on a particular American airlines because it's unhedged.
01:14 But there's this sort of negative sentiment. And September historically has been a bad month.
01:19 All right. Well, let's just go right to the jets, J-E-T-S, jets, jets, jets, the ETF performance
01:26 going back 12 months here. Still not too bad. But man, I mean, that looks like a ski slope there.
01:34 Give us your, well, we got your fundamental outlook, right?
01:38 On July the 12th, I think oil went above the 50-day moving average. And then all of a sudden,
01:46 you can see that hedge fund trade of getting out of jets. And you can see that the shorting up,
01:56 I believe, of predominantly American Airlines and Allegiant because they're unhedged. But the
02:01 airlines are trading on a P/E ratio, cash flow multiple, substantially below trains and trucks.
02:07 And so as a mode of transportation, it continues. They're pushing to lift the age for retirement
02:15 for pilots because there's a pilot shortage. I think that the supply side and growth of these
02:22 airlines is basically not going to be able to grow just with more flights. So they have pricing power.
02:29 And that's what we're witnessing. So I think you buy the dip. And it's interesting I share with
02:37 you because I was at this gold institutional conference and there was a panel with some of
02:41 the famous self-made billionaires in the mining industry, especially Robert Friedland, who was
02:48 the founder of Sirius Radio and your cars. And there was Pierre Lassonde, who's a huge philanthropist
02:57 and created Franco Nevada as a gold royalty and at one time was the president of Newmont.
03:03 So he was commenting that the central banks around the world, it's the first time
03:09 that they've been big buyers of gold in a rising interest rate scenario. And gold has been soft
03:16 and weak because the dollar is the strongest currency. And when you're seeing in Japan,
03:22 Japanese yen, the third biggest GDP in the world, gold is up 40%. So they speculate that in the next
03:29 quarter, interest rates will peak, price of gold will surge. And they comment that the central
03:36 banks buying has created that gold would normally be so much lower where the rates of the dollars are,
03:43 the dollar is today, but that they're creating a digital gold by currency because there's no way
03:49 the brick currency is fungible. They immediately have to trade and turn it into US dollars.
03:55 It's a closed economy in China. They don't accept MasterCard, Visa, American Express now.
04:01 Russia is a closed economy. There's no Facebook in these places. There's no Google as closed
04:07 from social media and it's closed economically. So how can you have something that's a fungible
04:13 global currency? And when I was in Italy, I'll share with you guys, it's interesting on the menu,
04:18 there's no Napa wines. There's no California wines. But in America, you get Italian wines,
04:27 Argentine wines. So when you look at just wine, we have a much more fungible open society
04:33 of all these choices we get. But in these other countries, there's all these different forms of
04:38 protectionism. And it's most severe in China, who is most anti the US dollar.
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