An Urgent Warning to Investors [Watch BEFORE Wednesday!]

have got to know the following updates

that just came out right before the

federal reserve meeting coming up let's

get right into them quick mention that

this is an example of an alert that i

just sent out on friday it is a 1.1

million dollars short i took out 500

contracts on the qqq it is up 500 000

uh that's over 48

uh and folks every single time i make a

move i send the alert in my stocks in

psychology money program link down below

there's a coupon code expiring in four

days check it out no guarantees you're

going to make money and i don't

encourage people to follow my trades the

reason i post all of my notifications is

just to give you an idea of my personal

sentiment in terms of which direction

the market is going and i can be totally

wrong especially on the short term

sometimes it works and hopefully it

works out more often than it doesn't hey

everyone meet kevin here so we urgently

need to talk about the stock market

because today has been a disastrous days

the indices have swung between negative

two percent to negative four percent and

you know what happens when we cross

certain thresholds like seven percent we

start hitting stock market circuit

breakers yeah the same kind of circuit

breakers that we hit way back in march

of 2020 and so folks we got to have a

discussion when all of a sudden tesla's

down nine percent in a day smaller

stocks like neo are down 13 on arrival

was down at one point as much as 26

in one day on no news we've got to talk

about a really critical and urgent

warning about the stock market and it

has to do with the big old bailout that

everybody is expecting from the federal

reserve but before i talk about the

federal reserve it's important that we

talk about none other than joe biden see

joe biden today

has made it very clear once again in

very hawkish tweets that he plans on

dealing with inflation one way or

another unfortunately these messages

have really become an empty threat

because joe biden's way of dealing with

inflation is

into jerome powell i hate to say

it but that's pretty much all he can do

is call up jerome powell and try to

pressure jerome powell to stop the

madness now technically the federal

reserve is not supposed to be influenced

by politics but let's be real we all

know that ash is up there okay look

inflation is a massive problem for joe

biden and i'm going to talk about the

federal reserve and something critical

that you need to know about the federal

reserve bailout in just a moment okay

whether it's coming when it's coming all

of that in just a moment okay

first you got to know that inflation is

a massive problem for joe biden now you

might not care if it's a big problem for

joe biden because maybe you don't like

joe biden but you gotta know if it's a

big problem for him because you're

paying more money at the pump it's bad

for him politically which makes it

really hard for democrats to win in

november i expect them to lose in

november and it's more likely that we

end up with a republican president in

2024 but on top of this think about this

folks when you have inflation this is

some of

these are some of the things to consider

when you have inflation problems for joe

biden when you have inflation you kill

wage growth see every president wants to

say i created jobs i did a great job

creating jobs in america and people make

more money under my presidency every

president wants to be able to say that

unfortunately according to the last

report from the bureau of labor

statistics we had 4.7

wage growth which is good until you

factored in inflation as soon as you

factored in inflation wages actually

fell 2.4

now sometimes this is a little hard to

understand so think about this

relatively imagine somebody said hey i'm

paying you a hundred dollars this year

and next year i'll pay you a hundred and

four dollars and seventy cents that

sounds great right positive making more

money but what if somebody then came to

you and said oh wait just kidding we're

not paying you 104.70

we're actually now only paying you 97.60

that's the same thing as a minus 2.4

it's a massive issue and it is a

terrible problem for a president to have

to deal with because quite frankly

they're relatively powerless especially

when they have a slow moving congress

that can't deal with chip shortages and

bottlenecks faster all they have is

executive action and really trying to

pester the federal reserve who can

really quickly run the reversing

printers and try to vacuum up money in

the economy but now wait a minute wait a

minute folks

why would the federal reserve continue

to be hawkish if the stock market is

falling i mean look folks the nasdaq

according to finance.google.com is down

15.19 year-to-date and the s p 500 is

down 10.36

like wait a minute would the federal

reserve really dare continuing to

tighten the market if the stock market

is falling

bad news the answer is yes because

here's the reality the federal reserve's

job is not to bail out the stock market

the federal reserve has two really

important jobs number one is maximum

employment and this is not 100

employment it's just their degree of

what they believe is

full employment what the economy can

sustain depending on the current levels

of labor force participation there's a

limit to how much the fed can really do

here the federal reserve believes

they've already achieved number one

the second thing the federal reserve has

to do is maintain stable prices and that

we have been failing at substantially

inflation has been out of control gas

prices are out of control food prices

meat prices are out of control use cars

rents you name it it's out of control

and the current measures of inflation

that we use are really bad at actually

determining how much for example rent

inflation we have and yet housing makes

up one third of how much inflation we

actually report so if housing inflation

takes a six month delay to actually show

up it takes six months for rent

increases to actually show up in

inflation we could continue to have

pressures of inflation build for months

going forward now how do i know that the

federal reserve does not give a crap

about your stock prices because look at

what they say right here the staff noted

the federal reserve noted that asset

valuations remained high generally high

relative to historic norms while equity

prices aka stock prices continued to

increase supported by strong earnings

expectations and high

risk appetite okay that is them saying

very very clearly that hey we think

stock prices are high right now and the

stock prices aren't actually being

supported by really good fundamentals

they're being supported by high earnings

expectations

and high risk appetite

so in other words they're saying hey

stock prices are high not because

businesses are doing better but because

people think that businesses will do

better but they're also speculating more

on the belief that that's going to be

true but folks it gets worse over here

what do you have a few participants also

cited a number of factors representing

potential vulnerabilities to the

financial system quote these included

elevated asset valuations prevailing

widely across asset classes

so the fed is telling you that stock

prices are high based on people's

expectations

and not necessarily reality the fed's

also telling you that stock prices are

high because people are willing to take

more risk not because reality is better

then the fed is also telling us that a

big vulnerability to the financial

system is quote elevated asset

valuations prevailing widely across

asset classes

so in other words the fed's telling you

very crystal clearly our job is to deal

with maximum employment which we think

we've done

then we've got to deal with inflation

which we're failing at

and we've got to make sure that we limit

financial vulnerabilities in the system

if high risk and speculation and high

asset prices are a vulnerability

and if dealing with inflation reduces

asset prices then dealing with inflation

and dropping the stock market's prices

is actually a good thing in the eyes of

the fed

which i know this is insane to think

about because in march of 2020 jerome

powell came to the rescue he came to the

rescue for a solid year almost a year it

wasn't really until february of 2021

when we're all like it's okay it's okay

stock market's starting to fall but

don't worry jay pals coming out to talk

and all of a sudden he started having a

little bit of a hawkish tune and all of

a sudden the stock market dropped on

that tech started selling off in

february of 2021 because jerome powell

all of a sudden was a little bit more

hawkish yeah we're seeing that now on

steroids and i expect it to continue to

get worse the federal reserve is not one

to change its mind quickly look how long

it took them to change their mind on

inflation is transitory now maybe you

think oh but hey if stock prices are

going down maybe that means inflation's

no longer transitory right

wishful thinking wishful thinking i am

wishing that inflation will go down soon

i really hope inflation goes down soon

but listen to data that literally came

out today

this data came up today which is the day

before the federal reserve's meeting for

january starts and then we'll hear what

the results are of this meeting on

wednesday at 11 am i'll of course be

streaming it anyway here's what was

stated quote

the median expected year ahead growth in

every day essential spending increased

from five point two percent in august to

five point four percent in december its

highest reading since the beginning of

the series in august of 2015.

the median expected growth in

non-essential spending instead declined

to 2.5 percent in december from 2.6 in

august while overall households expected

a bigger increase in overall spending in

the next 12 months the average reported

likelihood of making large purchases

over the next four months decreased in

december with respect to vacations home

repairs home appliances furniture and

vehicles so let me break that down this

is from the new york federal reserve and

it is a survey on consumer spending this

report is telling you that people are

having to forego on non-essential

spending they're spending less money on

non-essentials aka crap

toys tvs computers hooters tutors

whatever

vacations home repairs home appliances

furniture vehicles right they're

spending less money on that and they're

spending more money on essentials

when you spend more money on essentials

it means you're spending more money on

food and energy costs and gas or rent it

means that inflation is up so in other

words literally going into the fed

meeting the fed is getting hit in the

face again

worst reading

since the readings began basically in in

late 2025 or late 2015.

so not good

uh now

this in my opinion makes it unlikely

that the federal reserve is going to

back down from their hawkishness that is

expected to come on wednesday

now there are varying different there

are varying degrees of hawkishness that

we might see

one is that the federal reserve might

actually just end the taper and hike

rates in january

that would probably crash the market

enough the fed really cares but i don't

think the fed is going to do that

because the fed has been pretty

transparent on their course and they're

trying to complete the taper by march

and then raise high uh raise rates which

we expect

rates to go up 0.25 percent in march

they could potentially come in with a

double rate hike

which would make the market even more

nervous by march this is why you're

seeing so much volatility in the stock

market is because we have these

inflation fears biden can't do anything

biden's yelling at the fed to be hawkish

people think the fed's gonna come bail

them out but they're wrong because

that's not the federal reserve's job but

the federal reserve's job is not to be

able to amount then people think that oh

well

well maybe earnings will bail us out in

other words the good is priced in and uh

you know what we're gonna get even more

good news and then the stock market

rally but the problem with that is if we

have high expectations that earnings are

going to bail us out then those

expectations might disappoint and even

if those earnings came in hot they might

just encourage the federal reserve to

tighten more because it potentially

implies more inflation but based on what

we're seeing with consumer mobility data

if we look at google mobility data even

as recently as three days ago when their

last report came out on the 21st we're

seeing declines in consumer mobility i

went to a breakfast place this morning

and the place was unusually empty

and now this could be seasonal it could

be because in january people tend to

spend less money than they do in

december maybe they're out of money

their credit card bills come due or

whatever or it's a sign that people are

pulling back because they're worried

about a potential

uh recessionary period coming forward

now i i don't expect a recession i'm not

trying to like oh fud that's it

recession is coming that's that's a

small case for me i think there's a 20

chance of a deflationary recession and a

20 chance of a hyperinflation recession

i think we're more the majority of the

odds are are in the middle that we're

gonna get through this it's gonna be

painful inflation's gonna inflict down

and one inflation and flex down then the

market can actually start rallying again

but until then we don't actually have

motivation for the market to rally

on top of this this morning on top of

this bad news regarding biden being a

hawk on cpi on inflation and then this

latest inflation data and the fact that

we know the fed's not coming to bail us

out on top of that what do you have well

you have russia tensions going nutso the

fact that

look joe biden mentioned this morning

that he's considering sending 5 000

troops to the eastern european region

and the baltics you've got the swiss

military already moving ships uh into

the region above uh the baltics uh and

where saint petersburg and russia is uh

you you've got a hundred

thousand

russian troops on the border of the

ukraine

and you start realizing uh oh we've got

a little hotbed here and now the embassy

in kev

in the ukraine is saying you know what

uh embassy folks you should send your

families home because we might be going

into war here that's not good the market

fell on that news this morning but let

me put this into perspective okay

we had

2 000 troops left in afghanistan

biden is sending 5 000 to eastern europe

to maybe help our nato allies like

latvia uh along the border of russia

okay russia has 100 000 troops on the

border of the ukraine

just to compare this

when operation iraqi freedom happened we

had 82 000 troops invade iraq

this is 100 000 troops on the border of

ukraine and uh putin is now suggesting

that we might end up seeing a

germany versus poland style blitzkrieg

which is like a 48-hour invasion and

turnover and overthrow of power kind of

like the taliban rolled into afghanistan

when joe biden pulled out the 2000

troops that we have left

there are also fears about cyber attacks

uh and and uh you know fake as who knows

there's just a lot of drama and unknown

that's going on uh this is a big

geopolitical tension combine this with

inflation uh in the federal reserve

there's a lot of reason why the market

is selling down

now uh i want to clarify a few things uh

first i want to clarify that some folks

have asked me kevin you know why why

would you refinance properties to

potentially buy the stock market dip

well let me make this very clear you

should only ever refinance properties if

you can actually afford the additional

payment refinancing properties is taking

out in my opinion much safer debt than

margin debt or credit lines because

there they have generally amortized

terms and if you don't know what

amortization is you shouldn't be

touching this kind of debt anyway uh and

they're not callable like margin is

again if you're not familiar with margin

calls do not touch margin i also want to

make it crystal clear that i've never

been margin called so it's very very

critical that we remember that you want

to stay away from margin pay off debt be

careful if you're a passive investor

buy the dip man huddle and buy the debt

if you are a trader

like i am trading my portfolio

i think there is an opportunity to sell

and re-buy lower

maybe

maybe today is the bottom maybe who

knows i i don't i do not know but when i

look at actually the positive catalyst

that we have versus the negative

catalyst that we have

i don't think it's over because i think

drone powell is not coming to our rescue

and i think that uncertainty is going to

build over the next 36 hours before the

federal reserve's meeting and it

wouldn't surprise me for us to see more

of a sell-off again the problem with

every one of these rallies that we get

is we get these rallies and then it

enables other people to pile on the

shorts or buy puts

and then the mar or just straight up

sell out and then the market falls it's

simple psychology of money like i teach

in the programs link down below now i

want to be crystal clear please don't

follow my trades i do post every single

trade i make in the programs on building

your wealth linked down below whether

i'm buying puts or closing puts just

don't follow my trades because i can't

guarantee that you are going to make

money and i don't want to be responsible

for you losing money anyway thank you so

much for watching this video

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