Market Risk is Worse than I Thought

hey everyone me kevin here i want to

address one of the issues that keeps

coming up regarding china and supply

chain shortages and honestly i don't

think we really

recognize how big of a deal covet is to

asia and the supply chain shortages and

quite frankly i didn't either until i

discovered this and so i'm going to

break down exactly what this is in this

video we're going to keep it nice short

and sweet but let's get right into it

because i think it's really worth

knowing especially as an investor right

now so what's really important to know

is that in asia which right now makes up

42 percent of global global exports in

asia when there's a case of covet

specifically in china they tend to just

literally shut down the ports like

here's an example where it says in which

china or china in which has a zero

tolerance approach to kovid a workers

infection discovered last week halted

all shipping from one terminal

so in other words one person gets

covered they'll shut down the shipping

terminals and we already know that

container prices have four to eight

extra more i mean usually if a forty

foot container is like fifteen hundred

dollars covets taking that to like three

to four grand uh some folks are doing

longer term shipping contracts around

these ranges but some

single off shipping containers are going

for prices as high as 9 500 right now

it's absolutely insane and they usually

don't just shut down these ports for a

few days either get this right here the

shutdown the one that we just mentioned

follows the closure of the yantean port

in shenzhen

for about one month after a small

outbreak which had ripple effects for

international shipping and because a lot

of shipping might start in china we

sometimes don't see those supply chain

disruptions in the united states or say

like at los angeles ports until

sometimes four to six weeks later and

then all of a sudden we have a big clog

of congestion that comes in in in los

angeles ports because for a certain

period of time you got nothing and then

all of a sudden you get overwhelmed from

from chinese shipments trying to catch

up uh so you that you've really got this

uh insane ripple that goes through the

international shipping community and

delta's just gonna make this worse i

mean they had a small outbreak and they

shut down the port for a month

like these inflation concerns around

supply chain issues are just going to

continue to get worse this is why lately

i've been so into rcc real estate cash

crypto i mean take a look at this in

vietnam authorities have ordered ordered

manufacturers to allow workers to sleep

overnight at factories because the share

of the vaccinated people or of vaccine

people of the population is only one

percent in vietnam so they're saying hey

let's just have folks sleep at the

factories so they don't go home and get

covered things are getting worse and

worse as most factories in the southern

provinces had to stop operations uh and

uh

factories in the north have been

struggling to maintain production look

we're worried about

like we hear oh toyota's cutting

production by 40 percent like we hear

those headlines but when we hear these

these anecdotes of of quotes or these

statistics from from china we hear that

things are getting worse and worse

delta's going to make shipping supply

chain issues even worse we hear

container prices are skyrocketing only

one percent of people are vaccinated

vietnam and now they're trying to get

people to sleep on factory floors so

they don't get

sick to shut down production at the same

time as china will shut down a port for

for an entire month

wrecking supply chains uh in in in

certain regions in china it's it's crazy

uh and now i'm not saying like their

policies are crazy but the impact of to

the markets is crazy uh like we can't

underestimate how bad

this uh this this chip and supply crisis

really is and it really affects just so

many different things i mean almost

everything we use right now it's chips

chips chips uh so it's crazy last year

during the peak of the pandemic we

thought it would be short term but

looking forward i don't think there will

be a substantial change soon they say in

other words they don't think it's going

to get better any time soon i don't

think anything could reverse this in the

short term you can't predict anything

during this pandemic though in other

words so you've got these crazy

anecdotes of of real pain

in the shipping sectors

at the same time you're seeing growth

you know here's an article that in the

wall street journal the last one was in

the l.a times here's one from the wall

street journal where they're talking

about how the u.s right now is

outperforming chinese growth and that

could potentially be because of their

more draconian kind of covet-style

lockdowns uh that they do or shutdowns

that they do and their measures they

take uh but uh

some also worry that

china's slowdown is sort of the

bellwether for slowdown in the united

states that could just get amplified by

chip shortages so purpose of this video

we we got up we got a drill down on a

few things number one

the supply chain issues they're not

they're not getting better if anything

right now they're getting worse because

of delta the vaccine news that came out

this morning is very

bad okay like very very very very bad in

fact there were two particular

screenshots uh i want to show you in

case you have not heard what the vaccine

news was uh so some work on studies

uh or or a study released in the united

kingdom new uk data shows signs of

waning immunity against covenant in uh

in infection for the pfizer bioentec and

astrazeneca vaccine those two you've got

uh look at this here you go from these

high numbers of in the 90 immunity range

down after four and a half months to 61

uh and then it just it just goes off a

cliff here i mean after six months uh

six to eight months you could be even

substantially lower i mean here the

pfizer chart is showing that after

potentially five months you could be

under 50

this is crazy

uh and and this is really bad because it

potentially means

uh people who don't want to get the

vaccine

now are uh reiterated or have sort of

reiterating

data saying yeah i don't want to get the

vaccine like why would i get the vaccine

if it loses efficacy after after you

know four and a half months or whatever

uh now don't get me wrong like 61 or

whatever still good uh it's it's in my

opinion i think vaccination is a great

idea we want to prevent people from

going into the hospital uh the the

guardian just did a whole thing uh this

was we should pull this one up too the

guardian just did a whole thing about

how

the uh the people in hospitals right now

or just younger and younger and younger

and it's really kind of scary so i'm all

for the vaccine but the point is

even with the vaccine people are still

able to spread it like crazy

uh and uh and that's that's what's so

scary about uh the delta variant is that

you've really got this situation

where uh here's the darn thing here it

is uh oh yeah yeah yeah found it uh

people are basically trojan horses the

ones who get the vaccine they're still

able to spread uh covid

and of course it reduces

hospitalizations if you have the vaccine

but look at this hospitalizations of

people under 50 with covet are now at

the highest level seen in the u.s since

the start of the pandemic

largest increase in hospitalizations was

amongst those in their 30s and under 18.

which is crazy the previous peak in

covet patients under 50 needing to be

hospitalized was in january of this year

and uh you know children under 12 are

not able to get shots yet which is kind

of frustrating for for a lot of folks

just over half of americans are fully

vaccinated 70 have one shot at this

point uh uk by the way is that like 88

to 90 percent have one shot but anyway

this is obviously concerning uh in

addition to

uh where is it right here we've got this

article

uh in

bloomberg or this particular section of

an article in bloomberg

right here look at this

you've got uh when vaccinated people did

get infected with the and people got

infected with delta they were shown to

have similar levels of virus in their

bodies as those who did not have shots

excuse me this suggests that vaccinating

large portions of a population might not

protect those who don't get vaccines

casting doubt on the idea of hurt

immunity in other words delta is just

going to rampage our supply chain issues

even more because if you think about it

if people are at ports or factories or

whatever and uh whether they're

vaccinated or not they can still spew

covet everywhere uh and so we go into

the winter months here i don't know it

just seems like it just doesn't seem

good um

now look i'm i i think a lot of you know

it's like look kevin's rcc real estate

cash crypto right now uh but um i still

obviously hold uh a substantial portion

of my portfolio in in technology uh and

and higher value

uh stocks so like higher valuation

stocks not to be confused with value

stocks but uh a lot of these things just

make me more and more nervous and make

me want to be a little bit more

insulated and then be able to buy the

dip as potentially the market continues

to dip which uh we're seeing a lot of

that fluctuation in the market so anyway

uh very important conclusions here very

important things to know about the

market a little more nuanced but

did you know all those things about

what's going on at the chinese port i

didn't and then obviously this this um

delta variant uh

study impact on on vaccines

it sucks

that's all it is it sucks so anyway

thank you so much for watching i do

encourage you to get vaccinated uh

although i respect personal choice and

uh folks thank you so much for watching

check out the program's link down below

40 off the amazing programs on building

your wealth and we'll see in the next

video thanks bye

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