*Holy Crap* Apple's *JUST NOW* MASSIVE Flip Flop is a Game Changer!

well Apple just evidenced something that

was really interesting no this isn't a

new one this is an older M2 which I

guess these days is already dated and

yes I put a little Apple Air tag inside

of a pelican sticker on it because I'm

tired of losing my travel laptops or

leaving them in places and then not

being reminded that I left it behind

almost said that in a restaurant the

other day cuz guess what Kevin's

apparently always working but Apple just

announced something really WI

the start of deflation yes this is how

deflation works and I know this might be

mindblowing to a lot of different folks

but here's how inflation first starts

inflation starts with price increases

which can be caused by a numerous

different things it could be caused by a

supply chain shock it could be caused by

a demand shock either one of these

Supply or demand can it lead to price

increases when people continue to buy

well then companies can self- sustain

the cycle here price increase people

keep buying price increase people be

keep buying at some point you hit what's

called price shock and that is when you

finally reach Peak pricing Peak pricing

is where a business goes dang all of a

sudden people are coming to the store

less guess who just reported exactly

that McDonald's McDonald's said we've

been raising prices we've been doing so

well don't mind that all of a sudden

less people are coming to the stores

everything is okay fear not we are

managing the business just fine

everything is

fine no it probably isn't fine in fact

one of the first signs that deflation is

coming is that volumes are going down

price trends are coming down leading

companies to need to cut prices which

folks is exactly what Apple just did

with the new entry level Max MacBook Pro

available November 7th this sounds like

an ad I I I'm I have I do I guess I am

invested in apple but I'm nobody does

ADS better than Apple you know why you

know how I know nobody does ADS better

than Apple because they can so

seamlessly compare the M3 to 2year old

models and make it seem like the

improvements are that significantly

large they can make it seem like space

black is somehow a new color but it is

fingerprint resistant they can make it

seem like it is a feature to have a

laptop fan that isn't noisy because the

computer's now more efficient they can

make it seem like you give a damn about

3 nanometer euv technology manufactured

by machines made by asml Samsung runs 3

nanom you've got tsmc manufacturing 3

nanom chips in Intel just started

manufacturing 3 nanometer chips these

are $250 million machines they can make

all that stuff sound so sexy and

delicious but even they couldn't hide

from the Beast of deflation reducing the

price of their M3 entrylevel MacBook Pro

from 1999 to 1599 which is quite

fascinating because it follows reports

that in China and India apple is having

to reduce the price of the iPhone 15

now what a surprise when the iPhone 15

was first launched I said this is not

enough for me to actually upgrade and

sure enough I did why did I upgrade well

I explained this before but to catch you

up to speed the biggest reason I

upgraded was there were there were these

supposed tests done that the qualcom 5G

chip in here is faster by up to 30%

compared to the prior phone given that I

mobile film as much as I do and

sometimes I'm literally standing on a an

airplane or airport tarmac like this

trying to upload YouTube videos with

breaking news I do it too much every 30%

is useful if I could stand there for 30%

less Long like this I would look like

less of a clown I might still look like

a clown for other reasons but I will say

otherwise the phone is vastly the same

so for some reason you don't need that

extra 5G speed which

it's probably debatable and probably

only 30% faster in optimal cases it's

probably also just more delicious

marketing especially since we still

don't have the ability to actually

capture spatial video which means my

trip to Legoland this weekend was

captured in regular video which is the

same thing my iPhone 14 could have done

and the whole ad was that we'd have

spatial video but it would come soon and

it's still not out and I guess we'll

have to wait for that

maybe that's why apple is cutting prices

in China and India as well because they

realize you know what in this economy it

doesn't make sense to upgrade but this

price cut on the M3 is a big deal

because it starts the cycle of price

Cuts once again just like McDonald's

announced that their volumes are

declining what happens after volumes

Decline and visits decline so either

businesses sell less products or less

people come to the stores and therefore

they end up selling less products or

Services what happen happens there's a

delay it takes time for businesses to go

oh people won't accept even these prices

anymore remember how there's a delay in

how long prices can keep going up and

then people are like okay okay okay I've

had it I can't pay anymore I can't keep

paying these high prices there's a delay

in when the consumer realizes prices

have gone too high we've realized it now

then there's a delay in when businesses

go maybe we've raised prices too high

okay that is what we have to deal with

with the Federal Reserve that is why the

FED is telling us higher for longer to

speed up this delay the time it takes

for people to become convinced that

inflation is no longer here that is not

the case today people are convinced

inflation is still here Break Even

inflation rates that's basically just a

fancy freaking Finance way of saying

that oh the bond market thinks inflation

is actually trending up not trending

down that delay takes time and

unfortunately it is only after that

delay that we start seeing the beginning

of deflation and

disinflation and there are a few

different ways to experience deflation

and

disinflation number one is straight up

price cuts for a similar product that

you can now purchase at a lower price

that is one way you get a similar

product maybe a few different things

change like the M2 to the three here few

different things change take a few cores

out lower the starting price you know

back and some of your upgrades so you're

basically saying hey but you want to

fully load it it's going to be 7 Grand

that's just a perfect way for capitalist

to extract the highest amount of value

somebody's willing to pay from a product

line it's kind of like if you put 10

different video cameras back when I was

a child and going to Best Buy it's

called line item pricing you put the

$300 camera here the 600 the 900 the

$1,800 the $4,000 the $10,000 camera all

in a row the people with the ability to

pay start at the right side the people

without the ability to pay start at the

left side and everybody spends what

they're capable or willing to spend

that's what capitalists do to extract

the most amount of profit from you this

is very normal and so there in you

actually have the two things that you

can do one is just straight price Cuts

right the Big Mac goes to five bucks

then it goes to 450 even though it used

to be four you still have a price cut in

there still net higher than what it used

to be but you're starting to Trend back

down right that's an example of a price

cut same Big Mac the second thing second

thing which we built into this is you

separate out features maybe the Big Mac

shrinks right in size and then they

lower the price so you're kind of just

getting less food at a smaller price but

ultimately the trajectory of the

economic cycle is as soon as that

disinflation and deflation Trends starts

you end up getting Savvy consumers who

say I'm tired of it and businesses start

saying we have to cut prices to promote

demand again that's what apple is doing

apple is beginning this is an inflection

point it comes at a time when the stock

market is in a complete disaster right

now and it's worth noting that these

disasters in the stock market happen all

of the time I want you to think for a

moment just how frequently the stock

market collapses you want to know how

frequently there is a 5% draw down in

the S&P 500 every on average 1.1 years

there's a 10% draw down in the S&P 500

every 1.6 years and the average draw

down lasts 342 days Co was an outlier

where we had an over 20% drop that

lasted just about 33 days that's very

very rare that almost never happens the

average is takes a long time to get

through the cycles and they happen often

in other words imagine that it's a cycle

the real estate cycle long and slow

which is why I like real estate in fact

we have a fund raise closing soon here

2023 fund raise closes November 1st

2023 but more importantly stock market

cycle very very narrow goes up and down

with a lot of volatility but this Apple

event is the beginning of disinflation

and deflation actually showing up in our

faces it reiterates the price Cuts we're

seeing on iPhones in China and India it

reiterates what almost every single

company is telling us about price

increases let me give you the short list

of companies that are not cutting prices

yet you ready ski resorts high-end okay

ski resorts they they appeal to people

with

money Aerospace although that's finally

starting to

soften those sectors prices still

experiencing some inflation okay go to

almost everything else hotels

Airlines consumer goods credit card

companies cars houses almost everything

is starting to see the turn stock market

sees it a little earlier but the point

is this Apple event told us a lot more

than yay there's a new M3 chip it told

us that we have an inflection point in

the economy we are beginning to Trend

towards disinflation and deflation that

means unfortunately until the economy

realizes that you'll have pain in the

stock market but I think it means the

end of the pain is near and as soon as

interest rates start trending down

interest rates sensitive stocks with

true pricing power I think will do

exceptionally well

now I'm going to read you this because I

run an actively managed ETF you could

learn more about all the crash courses I

have on building your wealth and

everything about me by going to

meetkevin.com including my real estate

startup but in the meantime even though

I'm financial advisor licensed real

estate broker and becoming a stock

broker this video is neither

personalized advice nor real estate

advice keep in mind that this video

shall never be deemed reasonably

sufficient information for the purposes

of evaluating a security it is not tax

legal or otherwise personalized

Financial advice tailored to you I do

have a long position in apple not a

short position in apple but I will tell

you look if you're going to go buy a new

laptop you may as well get the latest M3

okay I've almost just gotten accustomed

to this idea of am I really going to

just get a high-end version of these all

the time no cuz they just refresh them

so often the lowest end newest ones are

usually the way to go that's my hack

when it comes to Apple the exception of

the phone cuz I want the bigger screen

anyway thanks for watching we'll see you

in the next one goodbye not advertise

these things that you told us here I

feel like nobody else knows about this

we'll we'll try a little advertising and

see how it goes congratulations man you

have done so much people love you people

look up to you Kevin PA there financial

analyst and YouTuber meet Kevin always

great to get your take