The Fed JUST Reset the Market | MAJOR CHANGE

everyone me kevin here let me tell you

about some major changes from the

federal reserve what we just heard

jerome powell talk about in the senate

and some implications of this and i have

to say i am pissed this is important and

massively important to the future of the

stock market because we've got some

problems getting priced into the stock

market and some things not getting

priced in and that's what we got to talk

about but first

i'll explain all of this after i mention

that friday's that day again the prices

on the programs on building your wealth

are going up again we just invested

another 25 000 into new studio equipment

to bring brand new lectures to everyone

in all of our courses throughout the

year we're super excited and constantly

updating the programs we hope to see you

there because we have a goal of doubling

the prices of the programs by 2023 so

hopefully you lock in the prices now you

look back and you won't regret it use

that coupon code below before friday

stocks real estate you name it but let's

talk powell now because powell is either

very confused or he's lying to us

remember what jerome powell told us last

week i tweeted it here's a copy and

paste of what i tweeted

the consumer is in very good shape says

drum powell there's no sign of a broader

slowdown in the economy people are

talking about it and consumer confidence

is at lows that we haven't seen since

the great financial crisis and sure

stock prices are down to some extent but

no we're not seeing a broad-based

slowdown jerome powell reiterated today

because this was just last week

reiterated today that the consumer is

strong

but folks how is that potentially

possible when credit card spending over

the last four to six weeks has began to

plummet and not just amongst the lower

income cohort where we expected the

first set of pain

folks

this

makes me nervous oh spending growth by

both high and low income products has

drifted lower implying that both the

lower and higher end incomes are

starting to suffer we're starting to see

declines in the growth of credit card

spending and this is a big red flag that

markets are not yet pricing in people

think oh you know poor end consumers are

just going to go to the dollar store and

higher end consumers are still going to

spend money we are now seeing both

cohorts spend less money and yet now

jerome powell is still giving the market

a false sense of confidence consider the

markets pricing in of a recession we

keep hearing the idea that oh a

recession is priced in yet floors keep

falling out below us in the stock market

we continue to hit new lows so how much

is actually getting priced in well if

you consider what bloomberg suggests we

only have a 68 chance of a recession

priced in

which is lower than what we've seen in

75 to 90 percent of prior recessions

take a look at the chart right here

monthly equity models show we have only

priced in a two-thirds chance of a

recession you can see that right here

this line is up to about

68 percent when you look at prior

recessions such as the great financial

crisis the dot-com bubble recession and

prior recessions with the exception of

the covet pandemic

right here and the early 80s recession

in all of these other scenarios here

over 75 percent of them we have the

market pricing in a recession at a

substantially higher degree where we sit

now anywhere between 80 to 90 percent

pricing in of a recession that means we

have further to fall in the stock market

but not only that at the same time as

jerome powell is saying don't worry

everything's fine

which is honestly starting to sound like

a frustrating broken record

look at this discrepancy

earnings expectations are not actually

pricing in a recession or drawdown yet

now we have a caveat here that obviously

inflation has boosted earnings

expectations but look at this the blue

lines are equity prices right these

little blue upside down mountains those

are equity prices

the white line here are earnings

expectations right we see those that

come down substantially in a recession

here because we expect earnings to go

down look at how much earnings

expectations are being priced in right

now

oh wow almost

no

change to earnings expectations that's

right folks and it sets up for a

potential dirty stock market going

forward in fact

traders the bond market traders are

right now pricing in just a

75 basis point hike one more time and a

3.6 percent terminal federal funds rate

this means that traders think okay we're

going to end at 3.6 percent at the fed

rate no more 4.1 4.2 percent even though

that's likely where we're heading which

what does that mean

in english

more downside ahead because if we're

only pricing in 3.6 but we end up with

4.2 and maybe more 75 bp hikes

stocks have to adjust for that just like

stocks have to adjust to earnings

expectations and stocks have to adjust

to the fact that wait a second here we

haven't actually priced in the recession

fully yet so this morning jerome powell

testified before congress and he made

some interesting points which i want to

break down right now

first he tells us that a recession is

indeed possible and that a soft landing

will be very challenging

this though he keeps buffeting with the

idea that the consumer is very strong

and this is again giving the market a

false sense of hope at least pat harker

from the philly fed this morning was a

little bit more real with us he says

we're probably going to have a couple

negative quarters over the next year and

a half which is a textbook way of saying

we're probably going to have a recession

now jerome powell told us this morning

that his goal is to lower demand to

growth not cause a contraction but he

admits

that he at the fed has not gotten his

house in order

and basically admits to failure on

inflation

and if this frustrates you it should

but at least

we've got a lot more to cover but at

least you can get a free stock worth all

the way up to a thousand dollars with

public all you have to do is go to

metkevin.com public or click the link in

the description down below deposit any

amount of money and you will get a free

stock worth all the way up to a thousand

dollars that's metkevin.com public they

don't use payment for order flow they're

a great social platform you can even

follow me on there at me kevin kevin.com

public but now remember the federal

reserve was still printing money three

months ago buying bonds at a pace of

billions of dollars per month

now the fed says they can't help supply

chain issues all they can do is reduce

demand yet somehow the consumer is still

strong

and one of the places that we are

actually seeing a hard hit so far

is the housing market and at least

jerome powell is real with us here

jerome powell tells us in his testimony

that the housing market is slowing down

and could quote fairly quickly affect

home prices but not yet it takes time

there is a lag between when rates go up

and when home prices come down my

expectation is it takes six to nine

months so in other words q3 q4 of 2022

we're probably going to start seeing

some downticks in home prices which

could turn into a correction jerome

powell tells us that demand for homes is

moving down quite significantly and that

maybe prices won't fall maybe they'll

flatten because there's limited supply

but if we end up getting a surge of

supply because homes are stuck in the

building process and they're finally

coming out because of supply chain

issues you could end up matching a high

supply of homes with high mortgage rates

and low demand or lowered demand

people are getting priced out says drone

powell and this is part of getting

inflation under control jerome powell is

literally telling you

that pricing people out of the housing

market by raising rates is part of his

job it's part of getting inflation under

control so he's bluntly telling us that

listen part of his job

is to push housing down

not necessarily trying to cause declines

but he tells us that the housing prices

have been in his opinion at quote

unsustainable

highs

so he's telling you housing prices oh

maybe they'll flatten i feel like he's

again trying to give us that false sense

of security but at the same time he's

telling us housing prices are at

unsustainable highs and his job is to

price people out of the market by

increasing the cost of housing which has

to force prices down

if the fed this is another big one okay

which by the way if you want to take

advantage of the opportunities that are

coming up in real estate

those programs on building your wealth

have a brilliant coupon code and with

the new lecture sets that we have coming

out probably going to have double the

value of the programs in all of these

programs on building your wealth by the

end of the year because we've got huge

new lectures coming and we're really

excited about those especially with our

new technology that we've got and you're

going to love it

but either way you don't believe the

housing market's going to get hurt

consider this

the fed has to consider selling

mortgage-backed securities at a loss and

when they do mortgage rates will

skyrocket even more

now some people say well the mortgage

you know the federal reserve doesn't

have to sell bonds they just let them

mature that's not true for the mortgage

market because mortgage bonds can take

15 to 30 years to mature unlike

treasuries which can expire in three

months and two years whatever

mbs mortgage-backed securities take too

long to mature they have to sell them

and this is a massive problem because

it's going to lead to more depression of

the bond market lower prices in the bond

market means higher yields which means

higher mortgage rates which means again

more pressure on home prices coming down

which jerome powell literally told you

is his job to bring home prices down

now regarding employment he says that

he's optimistic that unemployment won't

go to five percent

though banks are telling us the real

story that we actually expect

unemployment to rise to six percent by

2024. so is this again jerome powell

giving us the cushy story

while not giving us the truth is he or

is he hiding the truth mixed in with

soft messaging to you know

give it to the american consumer a

little more softly

jerome powell tells us that the job

market is unsustainably hot just this

morning jp morgan laid off 1 000

mortgage workers redfin compass laying

off over 400 employees each crypto

companies are almost all laying off

employees block fi coinbase you name it

tesla's laying off employees people who

have worked at companies like t-mobile

for six years are getting laid off

no one is safe

and when jerome powell tells us that

inflation is going down

he says

well

hopefully it is because so far we have

quote no evidence

certainly not any quote compelling

evidence that prices are slowing

consistently

so sure maybe

inflation went down a little bit in

april

from the high of march

but inflation went right back up in may

and so far as jerome powell tells us we

have no compelling evidence that prices

are actually slowing

and

the fed has to crimp asset prices via

the wealth effect we know that spending

will go down the fed controls demand

jerome powell is bluntly telling you his

job

is to destroy the economy

i hate to say but we have to be real

here he's telling us this is his job

because there's no worse curse than

inflation because that could mean the

end of the united states dollar as we

know it and losing the dollar's reserve

status could mean much worse things for

the united states economy in a complete

reset so

what are we likely to deal with

over session we have to be comfortable

that we are about to live through a

recession and there are many things that

we can do to prepare in my opinion the

first thing that we ought to do is get

educated be as educated as possible to

make sure that we are prepared to take

advantage of the opportunities that are

presented to us

now one of the easiest ways that you can

do that is by checking out the programs

on building your wealth link down below

i'm with you every single day

even in our course member live streams

we can come we can work together

to not only analyze real estate deals

but to analyze fundamentally what's

happening at the companies that we

follow

or the companies that you follow every

day we take suggestions on which company

to analyze next and we do it together

you could join these you get lifetime

access to these programs as well

the second thing that you can do is

obviously do whatever you can today

and i would write this down on a post-it

note right now

go reach into your drawer

grab a little post-it note pad and write

it down

this right here

this is a prescription pad

and yeah i'ma write you a prescription

and it is write

this

down okay

write it down

make as much money as you can

over the next six months and save as

much of it as possible while investing

in yourself in a smart way this means

buy licensing and education invest in

yourself to make sure you are prepared

to make the right moves

but don't buy a new car don't buy a new

jacket don't buy a new vacation when

we're going into a recession when you

could use that money to actually

catapult your wealth to something

meaningful in the future recessions are

seen as scary but folks

this is an opportunity

prepare yourself save money

limit debt get out of credit card debt

get your debt to income low so you're

ready to buy real estate

if you're in a position to refinance

even at higher rates now get a heloc

ideally do so

because then you have money available

for when we potentially fall now credit

lines can get frozen so you have to be

careful you have to pay attention to the

market and be nimble here but credit

lines are nice because you don't have to

pay interest while you're just holding

on to the money but anyway holding on to

the availability that is but anyway

folks prepare

what jerome powell told us today

slightly closer to the truth but still

masked with bs and i want you to be a

survivor and read through the bs

thanks for watching i hope you

appreciate the sincerity check out those

programs linked down below with the

expiring coupon code folks we'll see you

soon thank you bye