00:00:00
nobody ever gets Rich when the interest
00:00:01
rates are high cuz people can't borrow
00:00:04
money is that what you meant the stock
00:00:05
market going down was the disruption
00:00:07
what other disruption were you alluding
00:00:09
to look you can't really watch the stock
00:00:11
market you have to do what's right
00:00:13
what's up you guys it's grahe here so I
00:00:15
don't usually do this but two weeks ago
00:00:17
I issued a warning to stock market
00:00:19
investors and unfortunately since that
00:00:21
video things have gotten a lot worse
00:00:23
just today the market has seen its worst
00:00:26
drop since 2022 Panic usually creates
00:00:29
more panic selling pressure creates more
00:00:31
selling pressure and prices are falling
00:00:33
purely because prices are falling so
00:00:35
similar to my previous video I'd like to
00:00:37
help put into perspective exactly what's
00:00:40
happening why the market is crashing how
00:00:42
things could get worse before they get
00:00:44
better and what you could do about it to
00:00:46
put yourself ahead financially yes I'm
00:00:48
probably going to have to repeat myself
00:00:50
a few times but at least you should
00:00:51
understand the truth about what's
00:00:53
actually going on as soon as you hit the
00:00:55
like button and subscribe if you haven't
00:00:57
done that already that's all I ask for
00:00:59
it helps the channel tremendously and as
00:01:00
a thank you for doing that I will do my
00:01:02
best to read and reply to as many
00:01:04
comments as I can so thanks so much and
00:01:06
also big thank you to incog for
00:01:07
sponsoring this video but more on that
00:01:09
later all right now in terms of why the
00:01:11
Market's crashing as of now we have the
00:01:13
perfect storm starting with tariffs now
00:01:16
here's the thing when it comes to
00:01:17
talking about tariffs so far here's how
00:01:20
they've worked Trump threatens tariffs
00:01:21
by a certain date the market goes down
00:01:23
but eventually starts to recover on the
00:01:25
day tariffs go into effect the market
00:01:27
plunges because no one expected it to
00:01:29
actually go through but 24 to 48 hours
00:01:32
later an agreement is reached that gives
00:01:34
an extension the market goes back up and
00:01:36
then the process repeats itself when
00:01:38
tariffs go back into effect waiting for
00:01:41
another agreement to be reached this
00:01:42
volatility starts to give the impression
00:01:44
that tariffs have simply been used as a
00:01:46
negotiation tool to get more favorable
00:01:48
trade deals within the United States but
00:01:50
the market never actually priced in the
00:01:52
likelihood of them sticking around until
00:01:55
this it's currently scheduled that a 25%
00:01:58
tariff on steel and aluminum Imports are
00:02:00
set to take effect March 12th well a
00:02:02
250% tariff on Canadian dairy products
00:02:05
could be next along with a tremendously
00:02:07
High tariff on Canadian Lumber shortly
00:02:09
afterwards on top of that what's really
00:02:10
fueling the tariffs is that he said
00:02:13
tariffs may still go up as time goes by
00:02:15
now even though that 250% Dairy tariff
00:02:18
has largely been debunked as an item
00:02:19
that's not even going to begin going
00:02:21
into effect since they will be allowed a
00:02:23
certain amount of dairy to enter the
00:02:24
United States terar free business owners
00:02:27
are completely puzzled by what to expect
00:02:29
if they to order inventory ahead of time
00:02:31
or if they have to start raising prices
00:02:33
to cover overhead to which Trump
00:02:35
provided no additional information to
00:02:37
make matters worse Canada retaliated by
00:02:39
enacting 25% tariffs on electricity
00:02:42
Imports to New York Minnesota and
00:02:44
Michigan starting right now and China
00:02:46
SLA back with 15% tariffs on American
00:02:49
farm products as a result of this
00:02:50
investors are beginning to price in the
00:02:52
likelihood of higher prices lower GDP
00:02:54
recessionary fears and the potential
00:02:56
that things could soon get much much
00:02:58
worse but there's a second reason the
00:03:00
market could be falling that most people
00:03:02
have no idea about and that would be
00:03:05
Trump crashing the market on purpose
00:03:07
first of all it's important to clarify
00:03:09
that this is just a theory but you know
00:03:11
what nothing surprises me anymore so
00:03:13
here's what we know to be fact right now
00:03:15
it's no surprise the government owes a
00:03:17
lot of money the national debt is
00:03:19
currently sitting at over $36 trillion
00:03:22
and that number is only expected to keep
00:03:24
going higher which is soon going to
00:03:25
cause a lot of problems why well when
00:03:28
you have a debt this large you have to
00:03:30
pay interest on the debt and when
00:03:31
interest rates are at record lows paying
00:03:34
off the debt is very easy like imagine
00:03:36
it to be like a mortgage taking out a
00:03:39
million doll loan at half a percent
00:03:40
interest is as simple as spending $5,000
00:03:44
a year to keep current on your monthly
00:03:46
payments but what happens when interest
00:03:48
rates go up during a time that you're
00:03:50
borrowing a lot more money and you've
00:03:52
only locked in that record low interest
00:03:54
rate for a few years exactly since
00:03:57
interest rates have gone up
00:03:59
significantly the United States is now
00:04:01
spending more money on interest payments
00:04:03
than they are on defense for the first
00:04:05
time ever in history which is massive
00:04:07
and in 2025 there's another $9.2
00:04:10
trillion worth of debt that needs to be
00:04:12
refinanced this means they either need
00:04:14
to lock in rates when everything is high
00:04:16
or they need to create a market crash
00:04:18
which causes interest rates to fall and
00:04:20
gives them enough time to lock in
00:04:22
interest rates for the next few years
00:04:24
again even though a lot of this is just
00:04:26
a theory some of it does make a lot of
00:04:28
sense because 70% of the $9.2 trillion
00:04:31
debt needs to be refinanced by June 2025
00:04:35
and if nothing is done that debt is
00:04:37
scheduled to cost 1% more which is
00:04:39
reported to be
00:04:40
$156 worth of cost for every $1 of
00:04:44
Revenue that the United States generates
00:04:46
think about it for Trump this could be a
00:04:48
huge win to refinance the national debt
00:04:50
at a lower interest rate than usual by
00:04:52
forcing the Federal Reserve to lower
00:04:54
interest rates like here are some quotes
00:04:56
that I pulled from Anthony Pompano who's
00:04:58
taken the time to compile some Choice
00:05:00
words by Donald Trump here you go I've
00:05:03
been saying let's get interest rates
00:05:05
down nobody ever gets Rich when the
00:05:07
interest rates are high because people
00:05:09
can't borrow money interest rates are
00:05:11
going down you know what else is going
00:05:12
down Energy's going down I'd love to see
00:05:15
energy go down is that what you meant
00:05:17
the stock market going down was the
00:05:18
disruption what other disruption were
00:05:20
you alluding to look what I have to do
00:05:22
is build a strong country you can't
00:05:24
really watch the stock market if you
00:05:26
look at China they have a 100-year
00:05:28
perspective we have a quarter we go by
00:05:30
quarters that's true you can't go by
00:05:32
that you have to do what's right all of
00:05:34
this Paints the picture that maybe this
00:05:36
is his way of reducing the cost of the
00:05:38
national debt perhaps he could frame it
00:05:40
in such a way that he's making asset
00:05:42
prices like stocks real estate and
00:05:44
Bitcoin more affordable to middle class
00:05:47
Americans by giving them a 10 to 30%
00:05:49
discount and if short-term pain is
00:05:51
what's needed then he's willing to get
00:05:53
there by any means necessary although in
00:05:55
terms of how bad things could
00:05:57
potentially get you're going to want to
00:05:59
take a seat although before we go into
00:06:00
that just like it's really important to
00:06:02
protect your Investments most people
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have no idea that their most important
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asset can actually be their data for
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instance the number of recent data
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almost each and every year for the last
00:06:14
decade this means like it or not your
00:06:17
personal data is probably already
00:06:18
floating around on the internet
00:06:19
somewhere in the hands of third parties
00:06:21
data Brokers and anyone else who might
00:06:23
want to Target you this could include
00:06:25
your full name social security number
00:06:27
home address telephone number email
00:06:28
address online contivity and more you
00:06:30
could be at risk of having your identity
00:06:32
stolen fraudulent loans taken out from
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under your name or more commonly I guess
00:06:36
just getting a bunch of annoying
00:06:38
robocallers all day now even though this
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sounds absolutely horrible the good news
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00:06:43
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00:06:56
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00:07:00
and since data Brokers often continue
00:07:02
collecting information about you even
00:07:04
after they've removed it and cogni makes
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00:07:35
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you so much and now let's get back to
00:07:42
the video all right now in terms of how
00:07:43
bad things could potentially get you're
00:07:45
going to want to hear this on a broad
00:07:47
scale there are three different types of
00:07:49
declines that you're going to want to be
00:07:50
made aware of the first is what's known
00:07:52
as a stock market correction that's
00:07:54
defined as a drop of at least 10% now
00:07:56
it's important to recognize that normal
00:07:58
volatility throughout the Market is
00:08:00
extremely common like since 1920 the S&P
00:08:02
500 has on average seen a 5% pullback
00:08:06
three times a year so Random
00:08:07
fluctuations happen all the time this is
00:08:10
also somewhat the case with Market
00:08:11
Corrections which have happened on
00:08:13
average every 16 months in fact if
00:08:16
you're like me and you like averages so
00:08:17
far the average stock market correction
00:08:19
has been 15.6% and lasts for 71.6 days
00:08:23
so it's perfectly normal and every
00:08:25
healthy Market sees a regular pullback
00:08:27
from time to time however after that we
00:08:29
move move on to the more serious
00:08:30
category and that would be a bare Market
00:08:33
which is defined of at least a 20% drop
00:08:35
from the peak and this is where the
00:08:37
NASDAQ might soon be approaching
00:08:39
according to the data this typically
00:08:40
hits every 7 to 10 years and when it
00:08:43
hits unfortunately it hits kind of hard
00:08:45
during a bare Market the stock market
00:08:47
drops on average
00:08:49
33.2% and it falls over a period of 363
00:08:53
days now it is important to clarify that
00:08:55
these are just averages and it doesn't
00:08:57
mean the next bare Market's going to
00:08:58
fall exactly 33 % and last for exactly a
00:09:01
year for example in 2020 we saw the
00:09:03
fastest 30% drop in history since the
00:09:05
Great Depression and then right after
00:09:07
that we saw the quickest recession in
00:09:09
history which lasted just 33 days so
00:09:11
anything can happen although in terms of
00:09:13
taking it even further from here things
00:09:16
can always get a lot worse and that's
00:09:18
what brings us to a stock market
00:09:20
collapse I would consider this to be a
00:09:21
drop of at least 40% throughout the
00:09:24
entire market and not just in one sector
00:09:26
like cryptocurrency and over the last
00:09:28
120 years years this has only ever
00:09:31
happened three times this is why a
00:09:33
market collapse is rather uncommon but
00:09:35
it's not impossible to happen throughout
00:09:37
our lifetimes which is something that
00:09:39
everyone needs to keep in mind but in
00:09:41
terms of what you could do to use this
00:09:42
as an opportunity to come out ahead
00:09:44
profitable here's my take on things
00:09:47
first when it comes to Building Wealth
00:09:48
it's important to recognize that there's
00:09:50
always going to be a reason not to
00:09:51
invest like when I started buying real
00:09:53
estate in 2011 the overall Market had
00:09:55
already fallen 50% and I was buying some
00:09:58
of these properties for 20 cents on the
00:09:59
dollar but I was told to wait because
00:10:02
Shadow inventory was about to be
00:10:04
Unleashed on the market and prices were
00:10:06
about to fall even further but guess
00:10:08
what that shadow inventory never came
00:10:10
the market recovered and I'm so glad I
00:10:12
didn't listen to all the people who told
00:10:14
me not to buy even in early 2017 when I
00:10:17
started making videos here on YouTube
00:10:19
there was so many headlines about how
00:10:20
the market could be poised for a crash
00:10:22
or how the market was overvalued but I
00:10:24
just kept dollar cost averaging on a
00:10:26
regular basis and I'm glad I did the
00:10:28
same thing applies to 2020 2022 and I'm
00:10:31
sure even today second investing is not
00:10:34
a game I hate to say it but when you
00:10:35
really get down to it investing
00:10:37
shouldn't be fun it should be pretty
00:10:39
boring I know that sounds weird to say
00:10:40
because for me investing is a total
00:10:42
blast and I love it but it's not a sign
00:10:44
of a healthy Market where people are
00:10:46
trying to YOLO their life savings into
00:10:48
whatever is the hottest stock of the day
00:10:50
to try to get a brand new Cyber truck at
00:10:52
a certain point you have to remember if
00:10:53
you are trying to beat the market
00:10:55
average you're either taking a
00:10:57
calculated risk or you're gambling and
00:10:59
the line between the two has gotten
00:11:01
incredibly blurred over these last few
00:11:02
years third overconfidence is going to
00:11:05
destroy your portfolio the moment that
00:11:07
you think you have the entire Market all
00:11:09
figured out you've lost because of that
00:11:11
it's really important to recognize that
00:11:13
the less you know the better you will do
00:11:15
because you're not going to over
00:11:16
complicate things and take unnecessary
00:11:18
risk for gains you never needed in the
00:11:20
first place for example every single
00:11:22
study shows that the best investors of
00:11:24
all time simply buy into an index fund
00:11:27
on a regular basis and hold it for2
00:11:29
years this is why dead people often make
00:11:31
the best investors because they don't
00:11:33
touch it they just buy and they hold and
00:11:36
that is what chances are you probably
00:11:38
need to do as well fourth let's face it
00:11:40
a market drop is probably going to be a
00:11:41
lot worse than you expect like you know
00:11:43
when you see a decline so you buy in and
00:11:45
then it drops even further so you buy in
00:11:47
even more and then it keeps falling
00:11:49
until eventually you run out of money
00:11:51
and it keeps falling even more well
00:11:53
generally Market bottom takes place at
00:11:55
Absolute investor capitulation where
00:11:57
people think the economy is forever
00:11:58
finished finished no one is buying in
00:12:01
and people think to themselves that
00:12:02
it'll just continue getting even worse
00:12:04
this was the case back in the worst of
00:12:06
2020 2010 and I'm sure back in 2001 even
00:12:10
though I was too young to remember that
00:12:11
one every generation I promise is going
00:12:13
to have their own moment when they think
00:12:15
to themselves that this time is
00:12:16
different and even though it's always
00:12:18
recovered in the past this time today
00:12:21
has never been like anything before and
00:12:24
we're probably all finished that's why I
00:12:26
tend to think that it's reasonable to
00:12:28
expect that things can always get a lot
00:12:30
worse than you expect them to and just
00:12:32
to be prepared for that fifth good
00:12:34
financial habits should be practiced in
00:12:36
both good and bad markets even though
00:12:38
now is certainly a great time to work
00:12:40
some extra hours take on a side hustle
00:12:42
cut back on unnecessary spending and
00:12:43
invest the difference ideally you should
00:12:45
be doing that regardless of where the
00:12:47
stock market trades yes I understand
00:12:49
it's not cool to live frugally and live
00:12:52
below your means when everyone else is
00:12:54
making 10x Returns on Meme coins but I
00:12:56
promise you if you just stick with it
00:12:58
long term it's going to pay off 10 times
00:13:00
more in the future I guess I've just
00:13:02
seen so many careers come and go so many
00:13:04
businesses go bankrupt out of nowhere
00:13:06
and so many Investments lose value that
00:13:09
I just tend to be overly cautious about
00:13:11
what I do plus six it was found that in
00:13:13
the event we hit a bare Market that half
00:13:15
of the S&P 500's strongest days in the
00:13:18
last 20 years occurred during a bare
00:13:20
market and another 34% of the Market's
00:13:22
best days took place in the first 2
00:13:23
months of a bull market before it was
00:13:25
clear that a bull market had even begun
00:13:27
this is really important to mention
00:13:29
because if you just miss the best days
00:13:31
of the overall Market your returns drop
00:13:33
substantially and if you stay out of the
00:13:35
market it's even possible to begin
00:13:37
losing money this is why regardless of
00:13:40
what happens to the stock market or how
00:13:42
bad the sell-off gets there's always a
00:13:44
reason to say this time is different
00:13:46
sure the market might continue selling
00:13:48
off much more than we initially expected
00:13:50
or could rebound the next day I have no
00:13:53
idea that's why as long as I'm not
00:13:55
planning to use this money over the next
00:13:57
20 to 30 years any short-term
00:13:59
fluctuations make no difference
00:14:01
whatsoever it's just an opportunity to
00:14:03
buy in a little cheaper and if you
00:14:05
appreciate this message and me trying to
00:14:07
get this video out as soon as possible
00:14:10
please hit the like button and subscribe
00:14:11
if you haven't done that already again
00:14:13
that's all I ask for in return and I'll
00:14:15
do my best to read and reply to as many
00:14:17
comments as I can so thanks so much and
00:14:18
also again big thank you to incog for
00:14:20
sponsoring this video their link is down
00:14:22
below in the description and until next
00:14:24
time
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