what the hell...

this video is brought to you by me check

out the amazing programs linked down

below get 39

off using the expiring coupon code you

get private live streams with me

and endless lectures on deep

deep educational content on stocks real

estate

do-it-yourself property management

rental renovations youtube

sales you name it there's something for

you check it out down below

also towards the end of the video i will

reveal one of my favorite options as of

late and it's one that i still think has

a lot of play left in it

hey everyone me kevin here it seems like

we are at peak doo-doo think about all

of the doo-doo that's going on in the

market right now

we've got biden leaking a capital gains

tax hike that tanked markets today

we've got crypto falling ethereum gave

up all of its gains doge is around 26

cents at the moment also falling and

bitcoin has a fallen to under 52 000

per coin we at the same time have had a

spec attack in the last few weeks

we've had a lot of hedge funds start

shorting the market which takes away

buying pressure and adds to selling

pressure

we've had the rate of margin usage

growth

falling basically meaning people are

taking on less debt to buy stocks

despite prices

of stocks having adjusted downwards a

little bit in many different sectors

in some cases a lot like if you look at

neo a lot you look at spax

a lot if you look at whirlpool still

doing pretty decently

but anyway on top of that you've also

got massive

and insane fud around one of the s p's

biggest

latest editions tesla and folks we are

pretty much two months and three days

into

this crazy market sell-off now if you're

just investing in index funds you don't

know about a sell-off

if you're investing in attack or high

multiple stocks or specs

you know all too well about this

sell-off going on but why did even the

indices sell off today well

obviously indices and the stock market

broadly

despite trying to recover failed to

recover after joe biden

had leaked through the media channels

that they do with the white house

the likelihood of a very large tax hike

for

millionaires people making over one

million dollars which that does include

hedge funds and advisors or analysts or

any kind of wall street firms making

over a million dollars per

where well wall street individuals

making over a million dollars

and that promptly led to a lot of profit

taking and selling

because here's what happens taxes go up

profits on your stock gains

go down and so people are incentivized

to sell most people presently believe

that there's

pretty much no way that this tax hike is

going to be retroactive for 2021

so for right now we'll say 90 chance

this is going to be a 2022

tax raise and not a 2021 implication

which means if you want to take

advantage of lower tax rates in 2021

if this passes you're really

incentivized to sell sell

sell and so we might be seeing a lot of

that especially at a lot of stocks

that have had big gains since the

pandemic

so some of our favorite high valuation

and

high gain stocks over the last year come

under some substantial pressure

on top of this tax hike burden

we've got a cryptocurrency sell-off that

is

not immune to this tax hike i mean in

some cases

not taxing gains in stocks for

millionaires as a capital gain which is

what the change would be

leading to a tax rate of just over 39.6

percent

plus obama's 3.8 percent tax leading to

an over

40 tax rate for millionaires on capital

gains

no more long or short-term capital gains

just a large tax rate

it's a problem this also affects crypto

folks think oh well come on crypto's

unregulated

not true crypto crypto is already pretty

substantially regulated you want to

issue a coin

you better be licensed as a money

service provider you want to have a

crypto brokerage you better be licensed

in every state why do you think certain

platforms like block fi can't do

anything in new york because they're not

licensed yet they're regulated

why do you think the irs is starting to

make it very clear

that gains and interest on bitcoin is

taxable

and they're starting to make brokerages

report your wallet addresses

to the irs so that the irs can collect

their attendees from you

folks one of the reasons crypto is also

selling off is because just like i said

high multiple and high gaining stocks

might sell off

in this tax hike drama crypto

is obviously also something that has

gained substantially not just over the

last

year but even over just the last four

months ethereum was under 700

just four months ago heck it was under

six hundred dollars not too long ago

anyway that's a big problem on top of

that you've got the spac attack

which spax barely got recovery they

barely got a breather yesterday

yesterday the market had a really nice

breather from some advanced

or i should say heightened volatility

that we had on tuesday

that volatility fell substantially

yesterday we saw a very green market

spax recovered very very nicely and they

gave back a substantial amount of their

gains

today maybe not all of them some of them

ended the day flat slightly up

some of them ended down another five to

ten percent

it's a brutal period of time and nothing

has changed hedge funds are still

shorting

except now hedge funds in addition to

maybe shorting are also

taking on potentially less debt but

potential because of the rk goes drama

right but then also potentially taking

some additional profits

to make sure they can realize a lower

tax rate at higher attendee prices

before the rest of the market

takes advantage of this tax break

millionaires are now getting

for selling stocks this year think about

it it's a raising the taxes

next year on selling stocks for

millionaires is basically telling

millionaires

you get just this year to get a sweet

tax break when you go sell stocks

because otherwise it's gone next year

it's gonna lead to a lot of selling

now that hopefully hopefully that that

selling will turn into an

additional amount of buying but combine

this just with the drama that is going

on right now in markets

of all of this coming together at the

same time tax rates going up

hedge funds shorting margin the rate of

margin growth falling people taking on

less debt for stocks

the spac attack crypto falling the

coinbase failure

tesla fud over people doing stupid

things in their cars

or consumer reports saying hey if you uh

dangle a chain

from the steering wheel you can actually

turn the car on autopilot

turn it on climb out of the driver's

seat get in the passenger seat

and the car will drive itself without

anyone in the driver's seat

good job consumer reports you have just

taught people how to be a complete idiot

while driving a tesla

and it just leads to more and more tesla

five tesla's a big member of the s p

500.

tesla sells off s p 500 gets weighted

down it's a pretty

big weight in the s p 500 folks

all of this is happening at the same

time and this is where

i want to draw some conclusions and talk

strategy going forward

so here's the thing short of going

through all of the nitty gritty which

we've done before in other videos

let's just understand the conclusion the

conclusion for me is

we're still going to go through probably

two months of blood

and pain in this market i hope i'm wrong

i want this market to recover sooner but

what we need

is clarity and that's the last thing we

have right now

we don't know if this tax rate is going

to go through we don't know

if joe manchin is going to stop it we

don't know if a four trillion dollar

infrastructure plan is going to get

through a

two trillion dollar infrastructure plan

or the republicans five to six hundred

trillion

billion dollar infrastructure plan we

have no freaking

idea uncertainty is bad for the markets

you want to feel uncertainty look at the

markets two weeks prior to the election

look at my videos two weeks prior to the

election

two weeks prior to the election i said i

am plowing money into stocks

because we are at peak uncertainty and

when we hit peak uncertainty

once we actually get that clarity stocks

tend to go

up folks with the election i was spot on

once the election happened we as a

society had

certainty those who were happy had

certainty those who were unhappy had

certainty the decision was done

and stocks rallied for three months

what do we have right now folks fear

uncertainty and doubt about america

and when america has fear uncertainty

and doubt it's usually short-lived

we usually break out of fear uncertainty

and doubt because let me give you some

examples of the certainty

that we're going to be looking for as

catalysts over the next

not just maybe two months but over the

next

two to six months this horizon extends

to september october in my opinion

here's what we got coming first over the

next six months

we will know how big the infrastructure

plan is we will know

how big the tax rate hike is going to be

we will know if joe biden is just

negotiating high

to come in a low later we will know the

exact

details will it be as bad as we think or

is it just not going to happen at all

maybe the the parliamentarian in the

senate comes out and says we can't do

that we can't take

we can't change tax uh tax rates on

capital gains you can't do that as

budget recon

we have no idea we have no idea what

they're going to say yet

uncertainty leads the market to go down

clarity

historically leads the market to go up

even if that clarity ends up being bad

clarity

but what else do we have so we know

infrastructure or we will know about

infrastructure in the next six months

we will know about inflation in the next

six months

well no are we continuing the trend up

which right now we're on the trend up

we're seeing inflation we're on the

trend up prices are going up

will that trend continue in six months

or will we start leveling off

slowing down and seeing inflation rotate

downwards and i actually mean everything

lumber prices are we going to see

stability stability and chips

are we going to see stability in the

housing market are we going to see

stability in

the autos market where there are a lot

of shortages right now

once we see stability in supply chains

and we see inflation trend down and we

see the infrastructure plan happen and

we know what happens with the tax hikes

and the crypto market stabilizes after

the disaster of the

coinbase dpo and the spec attack

ends because the specs start actually

producing products

and the hedges as they start realizing

this happening

this this these catalysts coming out

stop shorting

the market and maybe people start taking

on margin debt again

and we get answers on all the tesla fund

that's been coming out

guess what happens because all of these

answers i guarantee you we will be

getting those answers in the next six

months

none of these i'm concerned about us

having answers on we will know

are specs just going to be in the toilet

or is the sec

the new sec chairperson going to

re-regulate them and make them

redisclose

we'll know what the earnings have been

for the next two quarters

all right or this quarter and next

quarter because we're still going

through earnings for q1

well no q1 q2 and we'll start knowing q3

we will have so much more certainty over

the next six months

right now folks we are in a period of

peak

due to peak uncertainty and peak

uncertainty can take a while to get away

to evaporate

unlike the election where the election

we knew

november 4th okay maybe a few days more

if there's a contested election

but we knew the end was going to come

right now we know the end will come for

all of these issues

the spac attack the shorting the margin

issue the tesla fund the crypto issues

the crypto fund that's circulating on

twitter including unsubstantiated tweaks

about

janet yellen wanted to running to raise

tax rates on crypto to 80

it's fun it's fun we'll know the

infrastructure will know the tax rates

we'll have all of the certainty

my expectation and will know about

inflation within the next six months

when we have clarity on all of these

issues

be it good clarity or bad clarity just

getting clarity

this market should be in a substantially

better place

so if you are feeling pained and you're

thinking i want to sit this market out

fine but realize as those catalysts

start coming in

i expect this market to move to the

upside earlier i promised that i would

reveal an

option that has been doing really really

well for me i just bought this option

two days ago and this is an option in a

particular stock that has gotten

way way way beat down and i think it is

going to do

very very well over the next two years

especially

as we get more into green energy which

is exactly one of the things biden is

pushing for especially with this

announcement

of trying to get carbon emissions down

50 by 2030

which is an even more ambitious goal

than the paris climate accord agreement

that was signed in 2015

with the united states folks i'm going

to pull it up on screen

here here it is this is my 10d option so

far

i have a 503 000 in market value of

options in

and phase 150 options january 20th to

2023

and face has had a nice recovery over

the past few days this option contract

is up 87

000 of all of the options that i bought

on

uh tuesday this is one of the best

performers

tesla is pretty much break even right

now

uh but i will give you a bonus one as

well

that is doing very very well which keep

in mind

every time i buy an option or a share or

i sell something i close something

i mention it to all of my course members

take a look at this other one here's

another 10d printer this one's got a

market value of 147

000. it is up 18 it's the lemonade

in the money 50 january 23

call options these have been very very

juicy over the last couple days

i will tell you i'll give you a loser as

well so those have been a couple of the

winners

let's go for a loser let's see here so

tesla tesla's are very small losers

uh pinterest has been okay

uh those are good pound tiers actually

been good

uh cc oh well coinbase uh coinbase

uh okay we'll we'll pull up coinbase so

unfortunately with crypto selling off

and this whole tax crap going on

hasn't been helping crypto a lot and uh

coinbase has been suffering

my coinbase 320 option which was

slightly out of the money and yes

coinbase is doing option

options this one uh cost me 122

000 it is currently down 17 000

twelve call options here uh not a

surprise given that

coinbase is sitting under 200 or sorry

under three hundred dollars this year

i know but uh yeah this was uh

definitely

uh one of the ones that got hurt i think

everybody uh everybody

really um i think the market really

misread coinbase

i'm still optimistic on the company

don't get me wrong i wouldn't have

bought calls on it on tuesday worth

a hundred twenty two thousand dollars

worth of call options

on tuesday if i didn't if i wasn't

optimistic in coinbase

i'm still very optimistic in coinbase i

am very excited to see their other

revenues

explode not just transaction revenue and

so i still believe in my fundamental

analysis uh obviously

the the pricing is uh the purchase

prices are way lower

than and our future value prices which

we did in our coinbase analysis

they still hold true in my opinion it

just means we're getting a lower entry

price right now and unfortunately that

lower entry price keeps getting lower

it's a dip that keeps dipping but i did

want to pry to promise you some options

so i wanted to

give you those here as we start getting

clarity as our vision stops blurring as

the rain clears

i believe this market is going to turn

i'm very happy with the decisions that

i've been making in my portfolio

to bet on this recovery but we have

known that we would go through inflation

doo-doo for a long time

we've just had a whole lot of extra due

to thrown on top of this

it's all culminating right now think

about how much fear there is right now

it makes sense that high value companies

are selling off

it makes sense that spax are selling off

it makes sense

but that sell-off won't last especially

as we continue to see

recovery stock related earnings coming

in maybe not as great as expected sure

bj's had a beat today

but we're not seeing all of the love

that we'd like to see especially in the

airline and travel sector

we'd like to see that recovery advance

more we'd like to see

covid get better faster globally

but as we get through these catalysts

i have no doubt in my mind that the six

months

after the next six months will be a lot

more clear and a lot more beautiful

don't get me wrong

there'll be fun and there'll be new

issues that we'll have to deal with

but right now ask yourself does it feel

like we're at peak uncertainty

and i'll tell you it feels like we're

definitely in a lot of uncertainty

i don't know how much more uncertainty

we can actually get

we'll see we've had a lot we'll see if

there could be more

but i'm prepared because i'm ready for

the clarity to come

and these are potentially times that

you've got to ask yourself

is now the time to double down on my

long bets to double down on those shares

that i know i want to hold for 10 years

no matter what

be careful with options options on this

this kind of strategy like getting

uh 2023 call options it's kind of yolo

right

getting uh uh july august september

october november december options

those are yolos those are kind of yolos

right now we're making bets

that we're going to get that clarity i'm

confident it's going to come

but i do believe we're going to be going

through and we're going to get drugged

through the dirt

for the next six months at most the next

six months

but certainly the next two months i

think we're going through the dirt some

more

it's gonna be rough appreciate you being

here supporting the channel

stay strong it's not your picks it's the

lack of clarity

over the entire market thanks for

watching folks we'll see in the next

video

by the way if you like my perspective

check out the programs down below use

that coupon code expiring it's from

sometime probably at the end of this

month

thank you so much for watching and folks

we'll see you soon

you