Ray dalio, the billionaire has sold his stake in tesla and has actually placed bets on amc and gamestop. Now i think this is actually a pretty big deal, because if you look at his track record uh, this guy is kind of like the snoop d, o double g of uh, the stock market. He kind of looks like it too. I mean you look at his uh, his nice smug, grin uh he's got a nice little thing rocking, but before i get into that, i want to discuss something that happened today.

Uh - and maybe this will be worth a nickel to you, uh as the viewer about an hour ago. This happened literally an hour ago. My mom got a call. My mom was with me right now.

You know uh, we kind of just we just chill. You know it's, it's a pretty pretty chill thing. Uh and one of my relatives attempted suicide. It's somebody that i care a lot about.

There's a couple people in my life who who mean a lot to me. You know a lot a lot, a lot a lot. This is one of like four people uh they commit, they attempted they attempted today, i'm not getting the details that doesn't matter, but i'm left with, like uh a wrench in my gut, because in situations like that, we all have these uh ideations from time to time. When life is really hard, i always think about what makes what makes a person feel that way.

What makes me feel that way, and for me, maybe this isn't everybody, but it comes down to a few. You know key things: uh, isolation, helplessness, hopelessness when you don't have people around you, you feel alone when you feel like you can't escape a situation and when there's no hope you know when, when you basically have lost the drive to keep moving forward, that's a very Tough place to be in and if you are in a similar situation right now, you know i can't talk with my my relative right now. I will in a couple days i left him a voicemail, but they took his phone um. What i would tell him is it's important that you put yourself first and remember that you're not alone, you know, surround yourself with people and even if a situation does seem helpless or hopeless um, most of the time not always, but most of the time there's a Way out there really is and if there's not a way out well, you got to fight tooth and nail.

You know, because there's people in the world that care about you just remember that i'm not going to spend any more time. On that. I i wanted to discuss that because this hits home. For me.

Sorry, if that's out of context but it'll, make me sleep a little better if it helps one person so ray dalio ray dalio's, uh bridgewater fund sold its tesla stake last quarter and placed new bets on gamestop and amc. Now this is actually pretty interesting. Ray dalio is a billionaire in case you don't know who he is uh. Let me just pull this up for you here.

Really quick uh ray dalio born in 1949, he's kind of an old fogey a little a little bit of an old dude, but he's a hedge fund manager, and this guy has uh. You know obviously accumulated a very vast uh vast amount of wealth uh. He was ranked by forbes, if i remember correctly, to be the 80 uh, the 79th 79th wealthiest person uh in the world, which is pretty phenomenal. This was back in 2020, bloomberg ranked him uh, the world's 79th wealthiest person, and that's that's pretty incredible and what i find to be the most fascinating, perhaps is the fact that he sold tesla but decided to place bets on gamestop and amc.

So, let's take a step back, let's think about this right here, to look at uh at tesla right now. I would argue that now is actually a really good time to buy tesla and not necessarily to sell tesla unless he anticipates that there's gon na be uh. You know a harder overall bottom uh, you know on on the stock. You know it.

It did break a pretty critical key ascending level of support, rising support. So you could see some downside to that 563-ish range potentially uh, maybe there's that 590 first, but unless he's just looking to re-enter for cheaper, which doesn't really line up with this guy's investing philosophy, it's quite peculiar that he would sell tesla to buy an amc and Gamestop now, why would you do something like that? Why would somebody uh take what seems to be basically a guaranteed slammer, i mean if you hold tesla for five ten years. People say that this could be a three thousand dollar stock legitimately and people people have some very high price targets for this, and it's because tesla does a lot of things they're more than just an electric vehicle company, uh they're sort of like a revolutionizer. What i would say, an industry leader in what would be the technological revolution uh just like you had sort of the industrial revolution back 100 years ago.

But this is a great company and it was sold right sold by ray dalio and he placed those bets on gamestop and amc, which tells me one intrinsic thing tells you that this man, this billionaire, whose wealth has been accumulated uh through a very specific investment philosophy. You can see this here. Dalio deploys multiple strategies, uh capital, each of these strategies and proportions that he sees fit according to this guy. Investing around economic trends such as changes in exchange rates, inflation and gdp growth right so he's looking at large-scale macroeconomics, so he's placing bets on gamestop and amc based on macroeconomics exchange rates, inflation, gdp growth.

What does he see in these companies? That leads him to believe that it may be a better overall investment than tesla now. Maybe he sees this and and he sees the apes and uh the squeeze thesis and uh wants to stand in solidarity alongside fighting against the corrupt uh market. That's out there that exists. It could be that right, but this is completely against sort of the grain of what this guy has spent uh quite frankly, decades uh doing to make himself a good massive amount of wealth, and i find this be quite you know pretty interesting uh, especially now when We look at amc and you look at gamestop and there's all this fear in the market and people are panicking and panicking and panicking uh, because everything just seems to be dying right uh.

You look at the obv, the on balance volume and you see that. Well, look at this people are accumulating shares, so who's doing it. Well, retail investors seem to be accumulating. Amc retail investors seem to be accumulating gamestop.

Then you come over here to the institutional holdings. You look at the fact that this guy's buying in you look at some of these other funds. I mean even citadel, is long on more calls and puts right now. Can you believe that? Can you believe that look at this serial advisors, llc puts 4.8 mill, calls 9.2 mil 9.9 mil double up? They doubled up to the upside? Well, i wonder why? Because it's cheap, if you're, looking at a bang for your buck and you're, trying to get the best overall return on an investment gamestop is cheap.

Amc is cheap, cheap, cheap, cheap. You like on on ridiculously cheap dude and there's been a drastic amount of accumulation. Loading accumulation, meaning buying and holding of shares by retail investors by institutions. Now there is a drawback to institutional holding uh.

I've talked about this before i'll, bring it up again briefly, but uh institutions that buy shares can also lend them out, and i suspect, that's a large part of why you see - shares on loans so high. You can see that it's 153 million total 15.79 percent higher than it was a week ago about a week ago, just almost 30 percent of their free flow on loan and any time that the freefall alone and the short interest starts. The gap like this. Typically, there's a small discrepancy because they're using an algorithm to give you some form of an estimate on what the actual short interest is uh and according to the books.

This is right up there actually just about an all-time high according to the books. But i i actually estimate it's a little bit higher and this comes down to institutions letting out shares you look at the overall ownership from institutions. It's roughly 36 185 million total shares. Well, wouldn't you know it uh, there's 153 total.

A million shares. 153 million total shares on a loan. It's a lot of a lot of shares right retail investors. You can have share lending on expose.

This can come from your broker. You can turn that off by the way it's different from broker to broker. Make sure you look into it if you're interested in doing something like that, so your shares are not being rehypothecated against you. Uh re-hypothecation mean that the one share can be used twice uh, but a lot of this is likely institutions so kind of a double-edged sword.

In the short term, but in the long term, what you see happen, uh is a forced share, recall, and this is kind of where i'm going to drive it home. This is where i'm going to leave things uh. As you see, ray dalio uh bridgewater fund sold its tesla place bets on gamestop and amc. You can see all these new institutional holdings, including citadel uh, but there's there's really a lot.

2.3 million shares here. Uh you've got 353 000 shares here. 2.7 million shares here. Lots and lots and lots and lots of shares are being accumulated.

What you see happen is if those shares are being lent uh. Eventually, you get what's called a forced share, recall this typically happens when utilization is maxed out for a prolonged period of time, and this did in fact happen back here before the major run-up we saw in june. You see it was maxed out at 100, right after you got that massive move. What led that move imo, in my opinion, is the recalling of shares institutions that lent out shares can say at any point in time.

Hey give me my shares back bub you're done. It's time to quit on the floor, all right put it in the toilet get out of here. You know they get their stuff back and it pushes price up. Uh we've had a long long long period of time at 100 utilization i'd.

Imagine most of this is from institutional lending. If they're not landing shares, you know what they're buying for you don't buy shares to lose money. I'll tell you that if you're not lending them you're buying to make money - and i would imagine that ray dalio sees a good value buy, because this is really what he. What he's about.

If you look at his philosophy and his long-term sort of uh uh ways that he's made money, this guy's not stupid, there are stupid billionaires. I think so i mean let me take that back. There are billionaires who are smart but are also stupid uh. If that makes sense, smart in some ways really dumb in others uh, you see that sort of thing, but he seems pretty square square on the head.

You know good good brain between his ears. I don't think it's a coincidence that these two things happen in that order. Now, personally, i think tesla's cheap, you know, but this guy's a lot more than i am he's made more money than i have uh. I don't know at the end of the day, but it does seem promising at the very least, and i'm going to send you home with this uh as sort of the going away message.

The market bleak right now right sucks, it's not fun uh, but take a step back and look at the grand scheme. The grand scale picture. What you're gon na notice is. There is accumulation taking place, there's lots of big buyers that are buying into this stock.

That are buying in the gamestop that are buying into uh the idea that these are good buys they're, not just you're, stupid, you're, crazy or this you're that it's not like that right things don't make sense right now and when things don't make sense, eventually they do And if they don't make sense, it's probably because it shouldn't be like that zoom out think big picture lots of people are buying. This is really cheap, there's no other way to say this uh. These are really cheap shares right now, uh, and what you're really waiting on is a bottom in the market for an economic turnaround, and i think you're gon na see uh, amc and gamestop and all all these different names really have a nice move back to the Upside so wanted to send you with that. I think it's important to be able to uh look at these different things that are taking place, and this is a pretty big deal so uh catch you guys on the next one.

I appreciate you, as always, most lovely taps, take care of yourselves peace.