On this week's Stansberry Investor Hour, Dan and Corey are joined by Kevin Duffy. Kevin is the founder and editor of The Coffee Can Portfolio newsletter. He's also co-founder and principal of the investment-management firm Bearing Asset Management.

Kevin kicks off the show by talking about The Coffee Can Portfolio, the investors who have inspired his work, and his outlook on some long-term secular trends, including fiat currencies. He explains that most trends today harken back to the American Revolution, as that was when centralization really began in the U.S. Kevin walks listeners through several key points in history that got us to where we are today. Plus, he explores the false beliefs of the dot-com boom, the market's current euphoria around AI, and the obvious threat to Nvidia that many investors are overlooking...

China is sort of the anti-bubble to the U.S. exceptionalism bubble... This goes back to Trump's first term really trying to attack the Chinese. And they responded to this. It really jumpstarted indigenous innovation in China.

Next, Kevin dives deep on China. He discusses what he has learned by studying the country's stock market, why he's bullish on Chinese stocks, and the 50% discount that these stocks offer. Using Japan as an example, Kevin advises listeners to always question the popular economic narrative, as it can be completely wrong, especially at the end of major manias. He says the biggest culprits behind China's negative narrative today are the U.S. government and misplaced anger over worsening living standards...

There's an agenda here. I think the military industrial complex is basically at the root of a lot of it... The military industrial complex does see China as an existential threat, because if China is successful and we can trade with China, then there are no external enemies... [Then the military industrial complex] can't really justify [its] own existence... [China is] certainly not an existential threat to the American consumer. The American consumer has benefited mightily from China.

Finally, Kevin talks about the flaws in modern economics and financial logic, the importance of educating oneself on economics and learning from past mistakes, and the future consequences of the U.S. isolating itself while the rest of the world comes together. He says there are still some stock opportunities in the U.S., but the best opportunities are in Asia...

Silicon Valley has always been dominant. There has never been another. Well, what we now have going on in China with technology is incredible. We've never seen anything like this... We've never seen a country be able to basically stand up to American imperialism. And China is doing that. I see that as incredibly healthy for the world. So when I get up in the morning, this is what gets me excited.

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(Additional past episodes are located here.)

The transcript is coming soon.

This Week's Guest

Kevin Duffy has published a bimonthly investment letter called The Coffee Can Portfolio since 2020. He's also principal of Bearing Asset Management, an investment-management firm that he co-founded in 2002. The firm manages the Bearing Core Fund, a contrarian, macro-themed hedge fund with a flexible mandate. Bearing gained notoriety during the global financial crisis by betting against stocks like New Century Financial, Fannie Mae, Bear Stearns, and Lehman Brothers.

Prior to Bearing, Kevin co-founded Lighthouse Capital Management and served as director of research from 1988 to 1999. The firm was later sold to Fisher Investments. Kevin earned a Bachelor of Science in civil engineering from Missouri University of Science & Technology.