Ford is bringing out a $30,000 vehicle built in Louisville, Kentucky, and Jim Farley, its chief executive, thinks it will be fully competitive with BYD if the Chinese carmaker were building in Mexico. He said on Bloomberg Television that a small Ford team in California out-innovated some of the best electric-vehicle companies in China.
That was one claim from one chief executive. Below are 12 more quotes from six other speakers. Ross Beaty says gold mines now cost about $2,000 an ounce to run while gold sells for $4,000; Danielle Park says Canadian homes still cost 8.9 times household income; and Peter Schiff thinks mortgage rates could reach 9% by the end of the year.
"But I have to say, I'm very optimistic — we developed a small group here in the U.S., in California — they out-innovated, I think, companies like the really good EV companies in China. We're coming out with a $30,000 vehicle, built in Louisville, Kentucky ... and I think it'll be fully competitive with BYD if they were, you know, in Mexico." — Jim Farley, CEO at Ford Motor Company, on Bloomberg Television (Read summary)
We scanned 570 shows and 4 hours of audio, wrote 6 summaries, and pulled 13 quotes into this 6-minute read.
Here is what mattered.
Macro
The 10-year yield is up 130bps in 7 months; about 80bps set off the 2000, 2007 and 2022 corrections, Danielle Park says
"But we've now seen 130 beeps of increase in seven months. ... So 2000, 2007 and in 2022 we saw this gain of about 80 basis points and that was enough to trigger sort of the risk correction phase ... that I believe has started ... this time as well" — Danielle Park, Portfolio Manager at Croft Financial Group, on Thoughtful Money (Read summary)
Small and mid caps will rally once rising yields peak, even if only for a while, Paul Schatz says
"The difference now is that you have yields going up — small caps and mid-caps struggle with higher yields, and they're going to at least short-term peak, and then the smalls will rally, the mids will rally" — Paul Schatz, President at Heritage Capital, on Fox Business (Read summary)
International
Canadian homes still cost 8.9 times household income, and about 10 times in Toronto and Vancouver
"So, when you look at the median existing home sale price ... in the US today, you're about 5.2 times the median household income. ... And in Canada, we're still about 8.9 times. And in major cities like Toronto and Vancouver, we're still about 10 times. This is obscene." — Danielle Park, Portfolio Manager at Croft Financial Group, on Thoughtful Money (Read summary)
Crypto and Digital Assets
A hostile Congress after the midterms would hurt bitcoin's price, Peter Schiff thinks
"I think that another factor that's going to hurt Bitcoin is going to be the midterm elections because I do believe that the Republican Congress being very pro- Bitcoin and pro- crypto was a net positive for price. And I think the reverse will happen when you have a hostile Congress because the Republicans have politicized Bitcoin in a way that it never was before." — Peter Schiff, Chief Economist and Global Strategist at Euro Pacific Asset Management, on The Wolf Of All Streets (Read summary)
Consumer
Homes can no longer be built at a profit for most Americans with mortgage rates near 8%, Peter Schiff thinks
"I don't think that you could profitably build homes in America for the vast majority of Americans because the cost of construction with raw materials and labor and tariffs are now so high and now you've almost got 8% mortgages, 7 and a half%. We'll be eight soon. I think we'll be nine maybe by the end of the year." — Peter Schiff, Chief Economist and Global Strategist at Euro Pacific Asset Management, on The Wolf Of All Streets (Read summary)
Technology & AI
Google Labs now starts a project with 2 to 3 people, down from 5 to 7, Josh Woodward says
"And so it's very interesting when we're thinking about like almost like fielding a new team for a labs project. We used to say like it's about five to seven people. Now it's about two to three people. Uh maybe four." — Josh Woodward, VP at Google Labs, on Lenny's Podcast (Read summary)
Most corporate labs fade within 3 to 4 years or never sell what they invent, Josh Woodward says
"And then I think the third part which is honestly where if you look at the history ... a large company who starts a lab the lab is usually ineffective and fizzles out after about 3 to four years or they have duration but the company can never commercialize the things coming out of the lab." — Josh Woodward, VP at Google Labs, on Lenny's Podcast (Read summary)
Industrials and Transport
Ford will commit $1B of purchasing to new Michigan manufacturers, including makers of magnets and rare earths, Jamie Dimon says
"Ford's going to commit a billion dollars of purchasing for new companies that are going to be building advanced manufacturing, new capabilities, even magnets and rare earths that we used to buy overseas. And now we're going to buy here, with the help of JPMorgan as well as the state of Michigan." — Jamie Dimon, CEO at JPMorgan Chase, on Bloomberg Television (Read summary)
A new manufacturer needs a buyer's order and a full-scale plant, which markets alone do not supply, Jamie Dimon says
"So I think markets will take care of a lot of it, but if you're an innovative company and you invented something here, you need an order — he's got to order it, it's got to actually work. They may have to build a real plant, not just an experimental plant. And so it takes that whole group of us to do this kind of thing." — Jamie Dimon, CEO at JPMorgan Chase, on Bloomberg Television (Read summary)
Materials & Energy
Gold rose from $1,050 to $4,000-$5,000 an ounce in 10 years with no significant new mine supply, Ross Beaty says
"But for gold and silver — you've seen this amazing phenomenon in the last ten years, where gold has gone from $1,050 an ounce to $4,000 to $5,000 an ounce — that's a giant move, but you have not seen significant new gold and silver production, and the reason for that is they're very rare, gold and silver deposits are quite rare, especially silver" — Ross Beaty, Founder and Chair Emeritus at Equinox Gold and Pan American Silver, on Wealth Building Blueprint (Read summary)
Gold mines' all-in costs rose to about $2,000 an ounce, half what the gold sells for, Ross Beaty says
"You've seen the operating costs of most gold mines, for example, increase — or all-in sustaining costs, as we say, increase from an average of maybe $1,500 an ounce to $2,000 an ounce — but you're still selling your gold at $4,000 an ounce, you're making a fantastic profit. So it's cutting into the margins, but I would say only relatively small." — Ross Beaty, Founder and Chair Emeritus at Equinox Gold and Pan American Silver, on Wealth Building Blueprint (Read summary)
Nuggets of Wisdom
Ross Beaty missed the uranium run because he did not foresee how much power data centers would need
"But the one thing that I've actually got wrong, more or less, is uranium. ... What I didn't realize is this gigantic sucking sound of the AI industry and the data centers, which are just causing energy demand to go through the roof — that means you want base-load power in ever-increasing amounts, all over the world, and quite frankly the only place that can survive that gigantic amount of power is nuclear." — Ross Beaty, Founder and Chair Emeritus at Equinox Gold and Pan American Silver, on Wealth Building Blueprint (Read summary)
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