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An Urgent Warning to Investors.

13m 16s2,307 words340 segmentsEnglish

FULL TRANSCRIPT

0:00

oh man hey everyone meet kevin here this

0:02

market is a crazy it's nuts and no i

0:05

don't mean crazy and nuts that on

0:07

january 23rd i said in a video the

0:10

market will likely fall in an additional

0:12

20

0:13

i was wrong it fell an additional 23

0:17

before bottoming out no that's not crazy

0:19

it's just mostly lucky but what's crazy

0:22

is that on one hand you've got companies

0:24

like robin hood amazon and tesla cutting

0:26

jobs and google and facebook freezing

0:28

hiring and threatening layoffs we're

0:30

technically in a recession at least if

0:33

you use the technical definition of a

0:34

recession and not the political

0:36

definition of a recession and company

0:38

earnings while are coming in a little

0:40

bit slower are still mostly above

0:42

expectations leading to large rebounds

0:45

and stocks like coinbase up nearly 100

0:47

from the time kathy woods sold she

0:50

literally dumped about uh 1.3 million

0:53

shares and it pretty much doubled since

0:55

then the tesla up over 50 from its lows

0:57

in the last two months and companies

0:59

like uber sofa doordash and cloud fire

1:01

were all jumping 10 to 30

1:03

after their earnings even companies that

1:05

miss earnings like airbnb are seeing

1:07

their shy prices just in general rise

1:09

after short declines and yet at

1:12

all this might seem bad we still have an

1:16

unemployment report that came out this

1:18

morning that literally came in twice as

1:20

hot as expected with more hiring than

1:23

expected by the tune of a two-fold a

1:27

prior revision up in the amount of jobs

1:31

we created so we're getting still more

1:33

hiring in an unemployment rate that's

1:35

actually falling

1:36

yet things are supposed to be bad so

1:39

this is really really weird and kind of

1:41

leaves us with this feeling of like a

1:43

lack of direction are we going up are we

1:46

going down what's going on and what are

1:48

the two freaking warnings that we gotta

1:50

watch out for well we're gonna talk

1:51

about those just a side note i have

1:53

conducted research that rivals the

1:55

research that twitter has done into how

1:57

many bots they have on the their

1:59

platform and uh this research involves

2:02

the youtube bots gods mods buds and

2:05

everything telling me that maybe my

2:08

youtube channel will finally grow and

2:09

people will click the subscribe button

2:10

again if i just post fewer higher

2:12

quality videos and skip live streams

2:15

therefore unfortunately i had to make

2:17

the decision based on well youtube

2:19

literally sending me a text message

2:20

going you're an idiot and once again

2:23

flip flop on live streams and i am

2:25

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2:26

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2:29

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2:32

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2:33

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details to come on that of course now

2:44

boom that might have been a mouthful but

2:46

let's talk about warning number one

2:48

warning number one is all about data

2:50

folks between now and the next federal

2:52

reserve meeting on september 21st when

2:54

we're likely to see another interest

2:55

rate hike the federal reserve has told

2:57

us to watch for two major data points

3:01

number one jobs we have two jobs reports

3:04

between now and when the federal reserve

3:06

is likely going to raise rates again

3:07

august 5th and september 2nd and we have

3:11

cpi readings coming out august 10th and

3:14

september 13th and let me just put it

3:17

very simply if these readings are bad

3:20

the market is going to have to price in

3:23

a higher likelihood of the federal

3:25

reserve giving us a little bit more of a

3:27

spanking because what the federal

3:29

reserve is trying to do is drive

3:31

interest rates up so that people and

3:33

businesses spend less money and feel

3:36

less rich

3:37

the problem is

3:39

this is all going to get worse if the

3:42

data that comes in again august 5th

3:44

september 2nd august 10th and september

3:47

13th jobs and cpi if that data comes in

3:51

hot which could mean the economy is

3:54

still overheated or doing very very well

3:58

and companies and businesses and people

3:59

are still spending money like crazy then

4:01

the fed's going to have to talk more

4:03

dirty to us and it's going to drive the

4:05

market down because the fed is mad that

4:08

even though the fed is like we need

4:10

everybody to stop spending as much money

4:13

everybody keeps spending money in fact

4:15

according to the economist most people

4:18

when asked about the economy say the

4:20

economy is bleak and doing terribly but

4:23

most people when they're asked about

4:25

their own personal finances say

4:27

they're doing great way better than they

4:30

did in 2019

4:32

even with higher gas prices and higher

4:34

energy costs people feel great about

4:36

their own personal finances and their

4:38

net wealth is substantially higher in

4:40

many cases than what it was in

4:43

2019 right before the pandemic so

4:46

what does this tell us about watching

4:48

data well first again this morning we

4:51

had a crazy jobs report we were

4:53

expecting 250 000 jobs to come in and

4:56

what did we ended up getting well we

4:57

ended up with 528

5:00

000 jobs created that is

5:03

over two times that is an example of a

5:06

hot reading and immediately the nasdaq

5:09

went from positive 20 basis points to

5:12

negative one percent boom

5:14

instantaneously after that hot jobs

5:16

report came out but folks that's just

5:19

one out of four data sets that we have

5:22

coming up the next is the cpi report

5:24

which comes out on august 10th where

5:26

we're going to be looking for

5:27

inflationary pressures and i'll tell you

5:29

even the jobs report that just came out

5:30

here august 5th didn't help us at all

5:32

with job or with inflationary

5:35

expectations because we had an average

5:37

hourly earnings expectation of 0.3

5:40

percent that is wages potentially went

5:43

up 0.3

5:46

month over month

5:47

we missed that they actually went up

5:49

0.5

5:51

which means rather than seeing an

5:52

annualized rate of three point six

5:54

percent for job wage growth it actually

5:56

came in at six percent annualized that's

5:59

bad again telling the fed we got twice

6:02

as many jobs and wages are going up

6:04

faster than expected this is double bad

6:07

on top of that we got the year-over-year

6:10

measure which was expected to be 4.9

6:12

coming in at 5.2 percent so we literally

6:15

got three

6:16

hot pieces of data

6:19

in the august 5th report but hey we get

6:21

to look forward to august 10th next

6:23

which is when that cpi report comes in

6:25

the cbi report consumer price index this

6:28

is how we measure inflation generally

6:30

the federal reserve uses a similar one

6:32

called pce but we generally watch cpi in

6:35

in the public eye

6:37

that rhymes uh and here's what's wild in

6:40

the last inflation report we had a month

6:42

over month increase of prices of 1.3

6:45

percent however in the august 10th

6:48

report we're expecting that inflation is

6:50

only going to move up on a

6:52

month-over-month basis by 0.2

6:56

now that initially sounds good because

6:59

it's like yeah elon musk is right

7:00

inflation's going down inflation's

7:02

transitory inflation's going to go down

7:05

which i have to say i believe that at

7:07

some point inflation will go down as

7:08

well but just because i believe

7:10

inflation will go down at some point

7:11

doesn't mean that i can lie to myself or

7:14

anyone else and say that we don't have a

7:16

problem here well this jobs report this

7:17

morning was a problem and what i

7:19

personally believe is we've got a big

7:21

problem with the cpi report coming up

7:23

because if the expectation is that

7:24

inflation on a month-over-month basis is

7:26

going to be 0.2 percent and that on a

7:28

year-over-year basis it's going to go

7:29

down to 8.7 percent personally i think

7:32

there's a really good chance we're going

7:34

to miss at least one of those numbers

7:36

that means we might see inflation on a

7:38

month-over-month basis come in at 0.4

7:40

percent or 0.5 and even though that's

7:43

lower inflation than what we've been

7:44

used to because last month prices went

7:46

up 1.2 percent it's still going to be

7:48

higher than expectations it could drive

7:50

the market down so you could literally

7:52

see the market go down after august 5th

7:54

jobs the market go down after august

7:56

10th cpi and then we repeat the process

7:59

again for jobs on september 2nd and

8:01

september 13th and so you have to be

8:03

very careful of these dangers

8:05

but you also have to be careful of the

8:08

very next danger and this very next

8:10

danger is one that is probably the most

8:12

critical

8:13

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when you use my link below in the

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description with that said let's get

9:48

back to the video now folks the second

9:51

big danger and this one's really really

9:53

important because folks take a look at

9:55

this chart right here this chart might

9:57

seem overwhelming let's keep it very

9:59

very simple basically if you go all the

10:02

way back to the post-war era which is

10:05

like the 40s and 50s you're going to

10:07

find that there have been very very few

10:10

dates or periods of time where the stock

10:12

market has gone from

10:14

negative seven percent on the s p 500 to

10:17

positive seven percent the next month

10:20

and folks on screen here are the returns

10:24

that you could have potentially seen if

10:26

you were in the market at the time

10:28

one month out three months out six

10:31

months out and 12 months out in time

10:34

now what's wild about this is we just

10:37

had one of those occur on july 29th we

10:40

went from negative seven percent in june

10:42

to positive seven percent actually more

10:44

than positive seven percent in july

10:48

and that sets up the odds that we could

10:51

if we're at all average right here see

10:54

some substantial returns in the stock

10:56

market over the next one three six and

10:58

12 months

10:59

and this sets up the potential danger

11:02

that combines with danger number one

11:04

danger number one says if we continue to

11:06

get bad reports

11:08

we could end up seeing some of these

11:10

right here see these two instances where

11:12

we actually had red numbers where on the

11:15

one month we fell five percent or on the

11:17

three month we fell three percent that

11:19

could happen again we could see another

11:22

test of some of the lows that earnings

11:25

right now are really affirming if you

11:28

actually go and look at the nasdaq for

11:31

example via qqq you could see that we

11:34

hit a beautiful bottom on june 16th and

11:37

we've retraced over 38 percent from then

11:40

but with some of these reports coming in

11:43

hot or expected to come in hot we could

11:45

quickly see a retracement not just down

11:47

to the 318 level for the nasdaq but

11:50

maybe even down back to 299 or retest

11:53

that bottom at 268 but based on this

11:56

chart we should probably be anticipating

12:00

green

12:01

if we hold and get in and that really

12:03

sets up the big next danger which is not

12:08

being in this market yes there can still

12:11

be bad news but all signs are pointing

12:14

to

12:15

over time even if it takes a little

12:17

longer than expected inflation's

12:19

probably going to go down this economy's

12:21

still killing it earnings are holding up

12:23

spending's holding up jobs are holding

12:25

up and yeah that means the fed's going

12:26

to talk a little more dirty to us but

12:28

all it's going to do is give us more of

12:29

a buying opportunity and no i don't just

12:32

mean a buying opportunity to get in with

12:34

me on my series a or to get in on the

12:36

courses on building your wealth and

12:37

those market open live streams which

12:39

we're going to do for course members use

12:40

that coupon code down below but buying

12:42

opportunity in the market and folks if

12:44

you found this video helpful do me a

12:46

favor hit the like button share the

12:48

video and subscribe because we gotta get

12:51

back to grow

13:01

[Applause]

13:04

[Music]

13:11

[Applause]

13:13

you

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