Transcript
0:00 I think the most important advice I can give people is that trying to time the market makes you an enemy of your future performance because a lot of investors always only want to buy at the bottom and they want to sell at the top. But when we look at the stock market and actually in crypto too the only people who really make money are those who are investing for the long term. So as much as I'm warning about 2026 and the possibility of a lot of turbulence, they should view the pullback as a chance to buy, not the pullback as a chance to to sell and and to avoid stocks. We still like the Mag 7 because we're confident of their earnings growth and so as long as they don't date, they should they should actually perform better than the market. But this year, our top sector pick is energy and basic materials. I think it means gold should be sitting in a portfolio. I've seen folks like Ray Daily recommend up to 10%. I don't think >> you said 15% on this podcast. Okay, so let's say it's 15. Most people are at zero for gold. So that means gold is still underowned today. Crypto still has a I think future adoption curve that's higher than gold because more people own gold than own crypto.
1:32 But the path to getting that adoption rate higher is going to be very jagged. And and I think 2026 will be a really important test because if Bitcoin makes a new all-time high, we know that that deleveraging event is behind us. >> And your price target for Bitcoin this year is 250,000. >> Yeah. So we think Bitcoin will make a new high this year. >> >> Welcome to the Master Investor podcast with me, Wilfred Frost, where we celebrate and learn from the success of the greatest investors, business leaders, and politicians in the world, giving you, our listeners, the edge. The Master Investor podcast is sponsored by BMY Investments, LEG, and Interactive Brokers. Please do remember the views expressed in this podcast are for general information purposes only.
2:21 Nothing in the podcast constitutes a financial promotion, investment advice, or a personal recommendation. More on that in the show notes. Fans of the podcast will know our guest today very well. Tom Lee, who returns for his second appearance since joining us in August for what was a very well-received episode. Tom, welcome back to the Master Investor podcast. What a treat to have you here in person in London. >> Yeah, it's great to see you, Wol. happy 2026. And of course, it's cool to be in London.
2:51 >> Yeah, it's really great to be to have you here. And I I do really recommend anyone goes back to the episode from August. In particular, we revisited Tom's successful calls of the last 10 to 15 years. and broadly, not to spoil that episode, how you've managed to maintain a a bullish outlook for the most part correctly throughout that period of time. So do go back to that episode for a broad introduction for how Tom does his thinking. And as we start 2026, Tom, I've seen that you've predicted quite precisely a rally to start the year, then a pullback, quite a big pullback, I think, with a rally to follow towards the end of the year. Is that is that a fair framing of your outlook for 2026?
3:34 >> Yes. that's right. I I think when we look back at the end of this year, I think 2026 will look like a continuation of the bull market that started in 2022, but and and really a period when economic resilience is much more visible. But at the same time, there's two I think substantial transitions that the market has to grapple with. Maybe three. you know, one is of course a new Fed and you know, the market always tests a new Fed and that process of identifying and then confirmation plus the market test can create a correction and I think that in 2026 our view is that White House the White House is going to be more deliberate in picking winners and losers. In 2025, that caused a lot of disruption for technology consulting and for healthcare. And this year there's a lot more industries and sectors and even countries in the bullseye. And I think that that creates uncertainty.
4:31 You can tell by gold's rally. And so I think those two factors can cause a draw down in 2026. >> Those two factors you said maybe a third. >> Yeah. So the third is that the market is still trying to understand how much is priced into AI. And so as in you know our view is still a strong narrative. but as you know there's questions about the longevity, how much energy we really need, data center capacity and so until the market is comfortable that there's other stronger narratives, which I think there's plenty like the ISM is turning up, I think housing could recover as rates are cut, but that transition again would cause uncertainty. So I I'm guessing that the three collectively could cause a draw down that feels like a bare market. So, so implicit in that is what like a 20% peak to trough pullback or or more or less?
5:25 >> Yeah, it it could be 10. I mean, if it's 10, by the way, it's going to feel like a bare market, but it it could be 15. It could be 20. But something that maybe brings us to a round trip from the start of the year cuz we've started off strong. Maybe we'll be down year to date at some point, but then I think we really finish the year strong. So, so when we spoke in August, you said that we were at the the start or close to the start of a 10-year bull market. Is that that's still your outlook? I guess another way of of saying that is once we've had that pullback, you'll be banging the table and saying this is a a fantastic buying opportunity.
6:02 >> That's right. Every pullback has been a great opportunity. Last year the tariff related draw down was on April 7th turned out to be one of the best entry points in the last 5 years for anyone buying stocks. There were so many stocks that made new all-time highs but really explosive rallies. So I think this year if if what we think happens it's going to be a great buying opportunity. when you mentioned in August that you thought it was a new 10-year bull market, you said the reasons were a surge in prime age workforce and kind of generation that's inheriting a lot of wealth and the US being at the center of a lot of innovation, particularly AI and blockchain. Are you still as confident in all three of those long-term factors?
6:46 >> Yeah, in fact, I think four or four still look quite visible. you know, the US does have a favorable demographic tailwind. that is in contrast to other countries where the prime age workforce has gone into deficit on in terms of inherited wealth. I think there's a lot more conversations about it that Gen Z and millennials and Gen Alpha there they are set to all inherit substantial sums of money over the over their lifetime. And it's strange because it does create disparity in wealth.
7:20 There going to be some very wealthy Gen Z, Gen Alpha and millennials while others are going to be of course living their life and accumulating their own personal wealth. and then with regard to AI, I would say that you know evidence that we could be moving towards super intelligence is is accelerating and I think there's a lot more progress being made on robots and integration with robots. So those are all things that are going to favor the US. And then on blockchain, you know, it's it's not just Black Rockck and Robin Hood anymore. You know, Jamie Diamond has publicly stated that he thinks blockchain does fix a lot of problems for financial services. So I think the banking industry is starting to embrace the efficiency of blockchain.
8:05 >> so so clearly the the long-term bull market thesis you're still a big believer in after a pullback. How do we sort of try and get as good a feeling as ever about when that initial pullback comes? I was listening to one of your recent appearances on CNBC and you you know you pointed out that markets peak on good news somewhat counterintuitively. Have we got that good news at the moment that would point to a short-term peak?
8:32 >> it's hard to say. and this is somewhat anecdotal, but our institutional clients aren't that bullishly positioned at the moment. And until we get to the point where both the public and institutions have positioned a way that good news doesn't make the market go up, I think stocks still have upside. That's why the the fact that stocks were good in the first week of January is a good omen.
9:02 And it looks like we're going to finish the month positive. That suggests strength in the early part of the year. Margin debt is something we can watch and we've been tracking it. NYC margin debt is at an all-time high, but it's only risen 39% year-over-year. Usually for a local top for markets, you want to see that rise 60% year-over-year. So, there's a chance for essentially leverage to accelerate and then that marks a local top.
9:36 This podcast is sponsored by Interactive Brokers. Building wealth starts with the right broker. And Interactive Brokers helps you reach your goals with powerful tools, global market access, low costs, and unmatched financial strength. That's why the best informed investors choose IBKR. Learn more at ibkr.com/masterinvestor. Le let's touch on some of the the kind of macro factors then. I guess let's start with trade because I know one of the things you were sort of saying last year was the trade war didn't turn out to be as bad as it could have been over the weekend. More threats of tariffs linked to Greenland this time on the UK and the EU. Looks like the UK is going to fold. the EU might retaliate.
10:31 Is that a worry for you in the short term? >> yes and no. I think that last year investors did a fire ready aim whenever they saw the tariff conversations escalate and become uncertain. The market really reacted poorly and fell sharply. I think that this year markets are going to be a little more measured. So I let's say it's it's half the amplitude of reaction.
11:01 but then there is still the uncertainty of how the Supreme Court will rule around the tariffs and maybe if that rules against Trump then it's going to look like the leverage of the US has dropped and so the White House might take more extreme measures that could cause greater uncertainty. But over the weekend I I've been reading the news. I mean, there's some folks suggesting the Supreme Court might actually rule in Trump's favor. So, we don't I really don't know.
11:29 >> in terms of the other sort of big macro question about the Fed, ironically, when we spoke in August, it was in and around attempts to indict Lisa Cook. obviously more high-profile attempted indictment this time around. Generally, your view then was Fed cutting is a good thing for markets, but questioning Fed interference is a is a bad thing for markets. But I don't think you took the idea of interference that seriously. How do you sum it up today, the outlook?
11:56 >> I think it's still the same situation. in the sense that there are implicit threats being made against the Fed, including this DOJ inquiry. but I I think there are still voices in the White House that are kind of saying let's not undermine the Fed completely because markets know and market history knows that the Fed is still the most important entity in the world and to undermine the credibility and the independence would, you know, would unleash a lot of uncertainty. we also know Fed Chair Powell's term is up this year, so time, there's a bit of like let the clock run because we know that there'll be a new Fed chair. And I think once we have that in place, I think the White House can be satisfied. And as you know, whoever who the Fed next Fed chair can be, I mean, the odds keep shifting. Now it looks Hasset has dropped as the probable and WH and even Rick Reer actually are ascending. So, >> and and I guess everyone expects slightly more cuts than maybe the data would purely suggest once that change happens andor a few more cuts this year.
13:19 Is that a good thing ultimately >> >> for equities? >> Yeah, I I think it is good for equities in the sense that inflation has been the market's fixation since 2022. Part of it, of course, is because the Fed has been fighting an inflation war and the Fed wants to maintain credibility by by being tight. But when I look at the economic data, and I'm not an economist, I think the underlying inflation is actually much lower than the printed. I mean, a simple thing to point to is something like true inflation, which is showing 1.8. if you look at median inflation, it's at 1.8. and the thing that's keeping inflation high is housing costs, but housing prices are falling. So, housing, the way that housing is measured in CPI is with a lag. So, to me, I think there is cover for the Fed to cut. And if housing, as you know, affordability is a problem, we need to do something about mortgage rates, and that is helped by cutting. and even things like consumer installment debt, those those can come down with rate cuts. So, I think burdens on a lot of Americans can actually ease with Fed cuts.
14:37 >> so let's talk about how people should be positioned sort of under the surface. have the sort of MAG 7 or MAG 10 the biggest stocks overrun and are they not the right picks for 2026? we still like the Mag 7 because we're confident of their earnings growth and so they as long as they don't date they should they should actually perform better than the market. But this year our top sector pick is energy and basic materials. So in early December we made that our favorite sector ideas. Part of it is is a mean reversion trade. energy and basic materials have underperformed so badly over the last five years that if you look at their performance in the last 75 years, it's usually marked a turning point, the level of underperformance.
15:32 and then I think some of the geopolitical things that are taking place would favor both groups. But, I think another thing this year is the ISM is likely to break back above 50 and along with Fed cuts that means industrials, financials, and small caps. So, I like Mag 7, but I think cyclicals could be the more interesting trade this year. >> So, just let's do energy first because I think I'm right saying you're also not constructive on the oil price in the short term, but you're bullish on the energy stocks.
16:01 >> That's right. I It's I've I've learned oil prices and energy stocks don't correlate. Part of it is that energy stocks price the future levels of oil prices. And I think that we may see weak oil prices or volatility in the near term, but everything from data centers and this shift away from alternatives is going to be putting upside into the future prices of oil and that's why energy stocks can outperform.
16:32 >> basic materials obviously for those exposed to metals have had an unbelievable run in their underlying commodity. maybe we'll come to that when we talk about crypto in a moment. what if that corrects a bit? Will those stocks do do less well? Is it is your call on them requiring gold and silver etc. copper to hold up? >> yes. I mean if gold and silver and copper do have negative returns this year then basic materials is not going to work as a trade.
17:04 >> but part of our belief is that gold has made a big move. but it's going to be silver and copper that have good years. And as you know, copper is an industrial metal, I think, linked to the ISM. So, if copper has upside, I think it it leads the basic materials stocks higher. >> Mhm. Financials, you you were very bullish on when we spoke in August. So, great call on that. They've obviously had a great run. kind of can't believe the charts of some of them when I look at them compared to when I used to cover them very closely. do you still like them at these levels? They're not cheap, are they? Anymore on price to book?
17:40 >> Yeah, they're not they're not cheap, but they're I think in the midst of being reed in terms of the durability of their business models in a favorable way. You know, I think that banks have invested so much in tech and into AI that they are really big beneficiaries of that super intelligence coming and the bank's biggest expense is compensation. So I think banks can reduce their reliance on employees in the future which means their margins go up and then the variability of their earnings drops. I think they're going to get rerated more like technology stocks. And when I started covering when I started in research in the '90s banks used to always just be one times price to book or 10 times earnings. And I think that they should get a a market premium multiple.
18:35 This episode of the Master Investor podcast is brought to you by Else, the leading global financial markets, infrastructure, data, and analytics provider. To learn more about how Else connects businesses, investors, and markets worldwide, visit elseg.com. I want to talk more about the tech stocks and AI stocks in a little bit more detail and I heard you say something on the ProfG G podcast that that surprised me because you're still constructive as you've said. You are very constructive for correctly and early for most of the last 15 years but you said only 10% of the AI stocks will turn out to be a good investment over the next decade. But you still like the sector.
19:20 >> Yes. I think that that's pretty true of any exponential growth sector. for instance when we look back at internet if you looked at a basket of stocks let's say in 2000 so 25 years ago I think only 2% of all the universe stocks actually survived. But the return generated by that 2% and then let's say you lost money in the other 98% you still outperformed meaningfully the S&P 500. So I think in the AI sector a basket of the entire universe of stocks it may be more than 90% turn out to be poor investments but the winning investments more than make up for it.
20:09 And and I guess the difference perhaps today is that not that many of them are listed. I don't know if that increases the jeopardy or reduces the jeopardy for people playing. the average investor is not going to get exposure to all of them. >> Yeah, it's it is a good question because today IP companies IPOing are more mature in their later stage. and but it does seem like that that's changing. I think for the first time we we we're seeing companies now more interested in going public, not all through IPOs, some through spaxs. I think that's coupled with the fact that the alternative world, which is venture, private equity, private credit, the investors in those, you know, LPs, limited partners, they haven't really received distribution. So I think that there is an allocation away from alternatives into public markets and that it's kind of now pushing more things to go into public markets. But you're right like it's as much as we say that the in the last 12 months I've seen many publicly traded stocks have big moves. So I I think that there's still a lot of opportunities.
21:24 Mhm. and in terms of the sort of hyperscalers, the the sort of mega cap names, it's it's really interesting when you think of the multiples that they've got, which for for the most part I think have been justified because of growth rates. and again, a conversation you had on another podcast I was really drawn to, which is the idea that these companies evolve to a sort of staples company, which can have a premium multiple for a different reason.
21:52 And I guess that got me. I mean, basically, is that the same Warren Buffett kind of sniffed that out before the rest of us with Apple? Is that kind of what we're getting at with with some of those mega cap names and that even if Nvidia's growth rate slows that actually it might maintain its its multiple from here? >> Yeah, that's right. I think that some of the listeners should think back to Apple which Apple analysts that cover the stock from its IPO in the 80s insisted Apple was a hardware company and they couldn't get over the fact for many years that Apple shouldn't trade more than 10 times earnings and yet they had a services business that was growing. They of course had created a whole ecosystem and retention model that really showed Apple was not just a hardware company. But I remembered even in the 2015 2016 2017 period I'd meet with institutions say Apple's a hardware company and now of course Apple's rerated completely.
22:50 I think people look at Nvidia as a cyclical hardware company and that's why they're giving it grudgingly a 26 multiple whereas Nvidia as you know essentially is a company that has high visibility on future earnings and yet trades at half the multiple of Costco. I think there's a lot of room to rerate those stocks higher >> if the sort of macro outlook is worse than expected. well I either way as and when we have this market correction that you foresee let's assume it's 20% for argument sake for the S&P 500 will those stocks act like a staples company and fall less than the market or are they still in the growth company high beta stage such that that when we have this correction this year the Nvidas of this world will fall more than the S&P 500. Yeah, it's a good question because what will lead in the correction are crowded trades. because that's when people have to derisk. So it makes sense that oh well the mag 7 are the large holdings will people derisk but as you know when people get nervous maybe they go into the mag 7. and so to me you know it's possible that the non US stocks could be the ones where you see correction because that's where there's a lot of money that's been made. I mean non US stocks did far better last year than US and so if there's trade escalations and uncertain about the global economic outlook maybe maybe that's where the correction could be greater >> and and so that's you you mean across the piece or do you mean specifically tech like ASMLs and TSMC's of this world? Oh, I think more broadly, so it could be Msei Aque.
24:36 >> Yeah. interesting. This episode is sponsored by BNY Investments. BMY Investments is part of BMY, a global financial services company supporting investors and institutions around the world. This sponsorship does not constitute investment advice. >> >> Let's touch on gold and then crypto. Why did gold perform so well last year, do you think?
25:10 >> I think there's some very visible reasons and some invisible reasons. To me, I think the the visible reasons for gold going doing well is one I think that there's a lot more political and geopolitical uncertainty in the investment environment because we have wars taking place and of course we have a a president in the US that I think has actually done a good job on the economy but has raised divisiveness and uncertainty about trade globally. The second is that global central banks are generally easing and in the US we're finally getting an easing cycle including QT ending.
25:52 >> Mhm. >> That should support gold. the invisible reasons are number one I believe Tether which is the stable the largest stable coin provider in the US has become the largest private buyer of gold. because Tether is is already sufficiently collateralized with Treasury backing every stable coin unit, but they generate income and with that excess return, they're buying gold.
26:23 so I believe that they've been the net buyer, the largest net buyer since July. >> When you say you believe that, you know that or >> Yeah, I think we we've seen the data. Yeah. >> and so how big a buyer are they relative to the sort of central banks of this world that have been big buyers of late? >> Wilfred, I'm sorry. I don't know how to scale it, but I believe it's there's only maybe one central bank that might have bought more than Tether.
26:49 >> Wow. >> >> because that's not talked about very much. >> No, it hasn't. But if you look at one way to simply look at it is look at Tether USDT outstandings and gold price since July and and they've been highly correlated. but I think a second factor is we did a study in 2018 showing you that investment preferences skip a generation. So baby boomers loved gold. Millennials liked hedge funds. >> Mhm. >> I'm sorry. Baby boomers like gold. Gen X liked hedge funds. But now millennials who are entering their prime working years like what their grandparents liked, which is gold. So I think that there's renewed interest in gold. So those are the two invisible reasons.
27:34 >> I liked gold. I'm just a millennial, but I sold too early. So there we go. interesting snapshots on that. So, so my question on gold on you know is whether you think of it I guess generations will have different answers to this as the ultimate currency or as a commodity like some of the other metals you listed earlier like copper and silver and and many others that have industrial use because it can suddenly change the way we think about all of the the returns we're looking at last year. You know JP Morgan had a great year. Nvidia had another good year. the stocks are up 20% here or there. If you consider the ultimate backs stop currency gold, then they then they were down.
28:15 >> Correct. >> Is that how you think about it or not? >> Ye. Yes. We don't make explicit recommendations at Funstreet around gold, but I I think we probably should because I think you've described it correctly. Gold doesn't make sense if you're trying to view it as a commodity metal because total gold sales last year industrial and retail jewelry is like 120 billion and it's a 30 trillion network value. So price to sales doesn't make sense and we know gold is not scarce because it is a there's a million times more gold underground and all gold is extraterrestrial. So SpaceX might discover a gold meteor, you know, and suddenly gold supply would be huge.
29:00 Yet gold has worked as a store of value for centuries and it's as the reasons I explained it acts like you said an alternative to the dollar. which means maybe we should view it as a dollar alternative and and by that measure everything else is debased against gold >> and and what are the implications of that? Do do you think more people will come around to that point of view and what would be the implications? >> Yeah, I I think it means gold should be sitting in a in a portfolio. I've I've seen folks like Ray Dalia recommend up to 10%. I don't think >> you said 15% on this podcast.
29:41 >> Okay. So let's say it's 15. Most people are at zero. >> Yeah. >> For gold. So that means gold is still underowned today. >> really really fascinating. By the way, the other thought of SpaceX finding a gold meteor in space is that would be a story. I wonder who would claim ownership of that. >> Well, >> the shareholders of SpaceX if it had IPOed by then. >> That's right. Because it's intern it's not intern. It's galactic. So there's no sovereign claim on it except for the >> which I guess applies to Mars as well.
30:13 Lot lots lots of complicated questions ahead. >> Yeah. why did crypto not perform last year in a way that gold did? >> I think there's a timebased answer. So, crypto was outperforming and keeping up with gold until October 10th. And on October, Bitcoin, for instance, was up 36% and Ethereum was up 45. So, Ethereum was outperforming silver. But on October 10th was the single largest deleveraging event in the history of crypto. Bigger than what happened in November 2022 around FTX.
30:51 And after that, Bitcoin lost more than 35% of its value and and Ethereum fell almost 50%. So I think crypto lost its tracking to gold because of deleveraging within crypto. Crypto has periodic deleveraging events. it it really impairs the market makers and the market makers are essentially the central bank of crypto. So many of the market makers I would say maybe half got wiped out on October 10th.
31:22 >> So until we get to the day where crypto is widely mainstream supported by institutional investors the internal deleveraging events kind of knock it out of knock it out of the sky. Does that by implication mean that you accept that Bitcoin is not digital gold? >> It's Bitcoin is digital gold, but the universe of people that believe that thesis is not the same universe that owns gold. And so, crypto still has a, I think, future adoption curve that's higher than gold because more people own gold than own crypto.
32:08 But the path to getting that adoption rate higher is going to be very jagged. And and I think 2026 will be a really important test because if Bitcoin makes new all-time high, we know that that deleveraging event is behind us. And your price target for Bitcoin this year is 250,000. >> Yeah. So we think Bitcoin will make a new high this year >> and and that's driven by what? >> Well, it's driven by I think the usefulness of crypto increasing. So we know banks for instance are recognizing blockchain and the idea of settlement settlement and finality work really well on blockchain. and then a company like Tether which is a cryptobased bank >> is proving that a bank that emerges natively on blockchain is actually better than a traditional bank. For instance, Tether is expected to make almost $20 billion in 2026 earnings. That would make it a top five in terms of bank profits.
33:17 They on valuation might be number two only to JP Morgan. Twice the valuation of Goldman Sachs or Morgan Stanley. Tether only has 300 full-time employees. JP Morgan has 300,000. So, by using blockchain, they make almost as much. Well, they make more money than any bank and they only have less than 1% of the M1 money supply and a tiny balance sheet and yet it's one of the most profitable banks in the world. >> Let's touch on Ethereum. Obviously, you explained to us in August you're a believer in both Bitcoin and Ethereum.
33:52 you don't have you love them both. but that you long-term see Ethereum as more of the bull case. Why did it fall so much back back quarter of last year? >> you know, Ethereum is the second largest blockchain and it's, I think, always going to be more volatile than Bitcoin until it becomes similar in size. The crypto world views Ethereum as a price ratio to Bitcoin. So there's this if you just simply said ETH to BTC, assume Bitcoin is the price denomination of the crypto world, Ethereum's price ratio to Bitcoin is still below where it was in 2021, four years ago.
34:38 And that compared to four years ago, Ethereum is a far superior blockchain because we know tokenization, including dollars are tokenized, is one of the big bets Wall Street's making. I mean, Larry Frink says it's the biggest innovation since double-edged accounting. Vlad at Robin Hood wants to tokenize everything. And we already see a lot of effort to tokenize not just dollars, which is stable coins, but credit funds. JP Morgan is launching on Ethereum, a money market fund. Black Rockck has already tokenized credit funds on Ethereum. So, Ethereum is really the the blockchain that Wall Street is beginning to use. If Ethereum's price ratio recovers to the 20 21 highs and Bitcoin goes to 250, Ethereum would be around 12,000.
35:32 and Ethereum is around 3,000 today. As we wrap up, Tom, we're nearly out of out of time. you know, we we've asked everyone on this, what's your overriding piece of investment advice for our listeners, which we asked you in August, and I loved your answer, which was along the lines of when you invest invest in companies, not indices, and you'll have more conviction and you you'll see through the volatility. To to tweak the question for this time, I have two questions. The first one being what's your overriding piece of advice for equity market investors for this year specifically?
36:06 >> Yes. I I think the most important advice I can give people is that trying to time the market makes you an enemy of your future performance because a lot of investors always only want to buy at the bottom and they want to sell at the top. But when we look at the stock market and actually in crypto too the only people who really make money are those who are investing for the long term. So as much as I'm warning about 2026 and the possibility of a lot of turbulence, they should view the pullback as a chance to buy, not the pullback as a chance to to sell and and to avoid stocks. I think it's a really important distinction because too many people sell on emotion and then they don't make the second decision to buy back and then they miss out on all the compounding investing delivers.
37:05 >> and my second question is what's your overriding piece of advice for crypto investors over the very long term? I'm sure it's slightly linked to to what you just said, but but how should they be exposed? >> Yes. Well, I I believe many listeners are skept skeptical of crypto and might even have zero exposure and say that they don't really understand it. One of the things that we have to appreciate is that crypto is being adopted by the young younger generations. I mean it is a part of their lives because they are digital natives and the there is really a blurring between what's a service and what's money in the future. It's no different than in 1995 when Bill Gates was on Letterman talking about the internet. David Letterman expressed enormous skepticism of like what the internet was because he was the wrong generation to adopt the internet. If David if Bill Gates was explaining that to a 20-year-old, a 20-year-old instantly understood the future of the internet.
38:08 And I think that's what's happening with crypto today. and and what what how should people obviously you know you you recommend Bitmine but should they have a basket of currencies should they own treasury companies should it be 2:1 Bitcoin Ethereum I I think that I I would have a dualpronged effort one is there's something called a Lindy effect I would only buy the the crypto that have been around so Bitcoin and Ethereum but the second thing I would focus on is that crypto So is the settlement layer.
38:42 It may be invisible in the future. >> Tom, it has been a great pleasure to catch up with you once again, particularly in person in London. Thank you so much for joining me. >> Great. It's great to see you. >> that was of course Tom Lee from Fundstrat and various other businesses on the Master Investor podcast. Next week we'll be joined by Hel Lima Croft of RBC Capital Markets to cover all things oil. Lots going on there, of course, as Tom's alluded to.
39:07 is bullish on the sector and all things commodities more broadly. if you haven't done so already, please do subscribe. But for now, our great thanks again to Tom Lee. The Master Investor podcast is sponsored by BMY Investments, LEG, and Interactive Brokers. Please do remember the views expressed in this podcast are for general information purposes only. Nothing in the podcast constitutes a financial promotion, investment advice, or a personal recommendation. More on that in the show notes.
39:42 This podcast is produced by Paradine Productions and Master Investor Limited in association with Birdline Media. If you've enjoyed the show, please do subscribe on YouTube or click follow on your podcast platform and you'll be automatically notified each time a new episode drops.
40:13 with him.