Together with Roi

Good morning,

A quick breakdown — in case you don’t have the time.

1. ⭐ We’re experiencing one of the largest-ever spikes in bearish sentiment.

2. ⭐ We spoke with Scott Clary about manufacturing luck in your career.

3. ⭐ President Trump’s Inauguration marked the near-term crypto top.

4. ⭐ The Magnificent Seven continues to underperform the market.

5. ⭐ NVIDIA crushed earnings; Q4 revenue hit a record $39.3B, up +78% YoY.

6. ⭐ Connect directly with us inside the Rich Habits Network!

Market Overview

Chart of the Week

We’re experiencing one of the largest-ever spikes in bearish sentiment.

This is the most mind-blowing chart we’ve seen all week! Look closely at the top left section. You’ll see that other massive spikes in bearish sentiment occurred at times that you would expect — often the bottom of a bear market.

We’re currently a -4.5% off all-time highs for the S&P 500, and for some reason we’re seeing the same level of fear. We’ve never seen anything like this.

Retail euphoria could be a major contributor. The top 3 largest retail investor buying days in history all came within the last 20 trading days. Most of those purchases are now in the red. We’ve also of course seen some parabolic moves in the market over the last few weeks — RKLB, HIMS, PLTR, TEM, etc.

These are the types of things that often occur toward the end of a bull market. That doesn’t mean it’s the end, but these are some interesting warning signs for us.

Together with Roi

As a listener of the Rich Habits Podcast, you know how important it is to track your net worth. However, most tools out there don’t support all of your accounts or are unreliable.

Introducing Roi — the best app to track and grow your net worth.

They support tracking literally everything from your stocks to cash, bonds, crypto, company equity (Carta), collectibles, and more all in real-time. They’ve also recently partnered with our friends at Public.com!

Roi is also the first app that lets you not only track but trade across your existing accounts. You can buy and sell stocks or copy the trades of famous investors like Nancy Pelosi, Michael Burry, and more! All through your existing Robinhood, Charles Schwab, Public (trading coming soon), Coinbase accounts.

They’re also launching a new AI “financial advisor” that helps you optimize your portfolio with personalized insights and a ChatGPT like experience but tailored to you and your portfolio. Last year, Roi helped users find on average an additional $1,463 in new opportunities.

In Case You Missed It…

👉 How to Manufacture Luck & High-Value Opportunities w/ Scott Clary

In this week’s Monday-morning episode of the Rich Habits Podcast (linked here) — Robert and Austin interviewed entrepreneur & podcaster Scott Clary.

Here’s what they talked about:

1. Reverse-Engineering Success — If you’re trying to accomplish anything, someone else has likely already achieved it before you. Determine what your goal is, identify the key steps to get there, and find someone that’s done it before. Success leaves clues!

2. Understanding the 10-Year Rule — The biggest reason why people fail is often from lack of patience, not lack of talent. The 10-Year Rule is all about having a willingness to spend a decade or longer “staying in the game” to allow compounding effects to actually take place. Architect your life for that 10+ year vision and see where it can take you.

3. Building a Network — The best time to build a relationship is before you actually need it. Beginning the relationship by giving someone else value is often a great way to start. Always position yourself as a connector, and then maybe later you can leverage the credibility of others for your own good. As GaryVee loves to say — “give, give, give, then ask.”

👉 Q&A: It’s Our 2-Year Anniversary + Q&A!

Here’s a link to the Q&A episode that was posted this morning. Today officially marks the 2-Year Anniversary of the Rich Habits Podcast and we couldn’t be more excited!

We answered questions from: Phillip B, Muzaffar K, Shaya N, Zaid J, Fnu A, and more.

You can submit questions for these episodes by asking them inside of the Rich Habits Network, replying to this email, or sending us a DM on Instagram.

The Rich Habits Podcast is available on Spotify, Apple, iHeart, YouTube, and wherever else you get your content!

Robert’s Callout

President Trump’s Inauguration marked the near-term top for crypto.

Despite us having a very pro-crypto President, the total crypto market cap has fallen from $3.7 trillion to $2.8 trillion in ~5 weeks. And despite people continuously calling Bitcoin a “hedge” for your portfolio — it’s important to understand that this is NOT the case.

Bitcoin and the entire crypto market are high-risk and extremely volatile. I’ve been a crypto investor for many years and I absolutely love it. I haven’t sold my positions during this hectic time and I still believe that Bitcoin will see new highs — at least in the $120K range sooner rather than later.

However, it’s important for me to reiterate that crypto should not be viewed the same way as gold (which I also love). Precious metals are often a true hedge — whereas crypto has a high correlation with major indices.

Austin’s Callout

The Magnificent Seven continues to underperform the market.

Have you noticed that the S&P 500 is actually up +1.5% YTD? You definitely wouldn’t think so with how Big Tech has been performing.

For Q4 2024, the blended YoY earnings growth rate for the S&P 500 is +16.9%. If +16.9% is the actual growth rate for the quarter, it will mark the highest annual earnings growth rate reported by the index since Q4 2021.

If this bull market is able to continue, it will likely be because the other 493 names in the S&P 500 are holding up their end of the bargain — something that would generally be considered very healthy for the market.

We’re at a crossroads…

1. The Mag 7 is showing exhaustion toward the end of a bull market.

2. The market is broadening and we’re seeing a healthy pullback on our way to new highs.

The Rich Habits Radar

• 👉 Berkshire continues to hoard cash; Buffett’s pile swells to $334B.

• 👉 NVIDIA crushed earnings; Q4 revenue hit a record $39.3B, up +78% YoY.

• 👉 Gold holds firm — prices steady near $2,850/oz as investors fear trade wars.

• 👉 White House and Ukraine tentatively agree to mineral resources deal.

• 👉 Apple to invest +$500B in the U.S. on AI, engineering, and manufacturing.

• 👉 Amazon revealed its first quantum computing chip one week after Microsoft.

Our New Referral Program!

Share this newsletter with 1 person and you’ll be sent our Financial Planning Workbook. Share it with 2 people and you’ll also be sent our video module explaining how Austin and Robert Analyze New Stocks.

It just takes a few moments — enjoy the resources!

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• Seeking Alpha — Optimize your portfolio

• Credit Card Matrix — Find your next favorite card to swipe

• Roi — Use code “Habits” and start tracking your net worth

• Dynasty — Protect your home in a trust

Disclaimer: This is not financial advice or a recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.