In this week's Stansberry Investor Hour, Dan welcomes Matthew Tuttle to the show. Matthew is the CEO of Tuttle Capital Management, a firm that focuses on breaking away from conventional Wall Street wisdom by using its own ETFs that target new investment opportunities.

Matthew kicks things off by discussing the "death of value investing" and what he believes is contributing to it. First, with the advent of the Internet, information was more accessible to ordinary people, so a lot of the edge from learning crucial details was lost. Second, folks lost interest in value investing. When COVID-19 struck, a lot of new investors spent their stimulus checks on meme stocks instead of solid companies. But while Matthew thinks it's dead, he says the new value stocks are in heavy assets, low obsolescence ("HALO") investing. These are stocks with physical assets, so it's unlikely that even AI could disrupt them...

To me, [HALO is] the new value [investing]. Where it can work is you find companies that have assets that AI is not going to be able to kill. And you also find companies that are benefiting from AI. So, for example, Halo companies to me are like railroads. AI isn't going to put a railroad out of business, but a railroad can use AI to figure out all the logistics better... So I still think there is a place for what we have looked at as traditional value stocks. But I also think you've got to look at them now from that HALO... viewpoint.

Next, Matthew shares his disdain for exchange-traded funds ("ETFs"). He believes the majority of them "stink" and that if investors want to invest in a theme, they should completely invest in that theme. The problem, he says, is that Magnificent Seven companies are added to an ETF with the businesses having little relation to the theme, and you're probably holding them in several places. Additionally, there are "way too many ETFs, way too many indexes, [and] way too many... investment ideas" that folks are buying into. But one of the bigger problems is that ETFs are being advertised to individual investors using "marketable" people rather than proven and tested portfolio managers...

Wall Street wants faces out there. The one problem that index funds have [caused] the industry is – again, back in my day, you had star portfolio managers. You had the Peter Lynches... guys like the Warren Buffetts, guys like that. You don't have those star portfolio managers anymore. So they have to try to cobble them together. And what you get is Cathie Wood and, you know, a bunch of perma-bears.

Finally, Matthew shares the framework behind his hedging and asymmetry strategy. With hedging, you want to limit your tailing risk. However, Matthew says that bonds are not a proper hedge, and points out how "Liberation Day" and the Iran conflict saw bonds sell in tandem with stocks. With asymmetry, the idea is to limit your losses instead of your gains. Matthew says that all the top investors he has spoken with had their own methods that made them lots of money when their ideas were correct, but they only lost a little bit of money when they were wrong. It's important that you also set up your strategy work the same way. And Matthew says that going down the supply chain of breakthrough companies helps you find the best investing opportunities...

There are... a lot of chemicals that the whole AI build-out needs, and no one's thinking about those... You keep peeling the onion, and you find the names in the AI trade. For example, everything goes through copper wires. Well, that's too slow. All right. Photonics. Now the photonics stocks are ramping. We're past that. Now I'm looking at glass because for those... lights to work effectively, they need a substrate, and the best substrate is glass... And we're going to be able to keep peeling it year after year, because technology is going to continue to advance and change. As long as it doesn't kill us all, this is going to be fun for decades.

Click on the image below to watch the video interview with Matthew right now. For the audio version, click "Listen" above.

(Additional past episodes are located here.)

The transcript is coming soon.

This Week's Guest

Matthew Tuttle is the CEO of Tuttle Capital Management and the author of How Harvard and Yale Beat the Market and Financial Secrets of My Wealthy Grandparents. He built his reputation questioning the default, torching the outdated, and creating tools for investors who refuse to settle for average. With more than two decades of experience and zero tolerance for Wall Street's cookie-cutter advice, Matthew and his team have turned the ETF space upside down. From launching headline-making funds like the Inverse Cramer ETF to developing the revolutionary HEAT Formula, Tuttle Capital has become a refuge for independent investors who like insight over "one size fits all" options.