The Great Reset is Here | Historic Worsening & Recession

in march of 2020 we literally

experienced a v-shape recovery of

markets for every dollar that was

printed the stock market went up 92

cents

well unfortunately capitulation-style

bear markets like the one we're in now

could experience the complete opposite

especially since markets like this tend

to bleed out through long drawn-out

bottoming processes

and

the great reset may be on its way folks

something happened today that signals

more doom and gloom to come that's right

more thought and you need to know about

it so you can be prepared in fact it's

not just one thing we're going to talk

about we're going to talk about three

very important things that we have to

pay attention to to help identify when

are we potentially close to a bottom and

how much more pain do we have to go and

no i'm not talking about consumer

numbers again we already know from the

barclays report last week that the

consumer is showing strong evidence both

in high incomes and low incomes high

being a problem as well because they're

kind of keeping everything else propped

up right now but we're seeing a

precipitous decline in credit card spent

by both of these this must be so bad

that amazon is now pre-announcing that

instead of having one prime day per year

like they always have

generally around july 12th which is when

this year's is amazon has now announced

that they're going to have a second

prime day sometime in the fall a date

not determined yet usually you only see

that when company sales are plummeting

with the exception of our sales our

sales for our programs of building your

wealth they're exploding because people

are investing in themselves and we're

extending the coupon code that was

supposed to expire on friday to thursday

of this week just because so many of you

have reached out asking for an extension

of just a few days so it will be

expiring on thursday and the price will

be going up again but no these are not

what issues we have there are three

issues we have to pay attention to the

first big problem that happened today

might be part of the cracks that we're

starting to see because of quantitative

tightening quantitative tightening is

the process of the federal reserve

trying to make this white line right

here go down see this explosion of the

white line right here this is when we

printed money like crazy during the

pandemic and the federal reserve's

balance sheet exploded by more than six

trillion dollars so that we can give out

stemi checks like california is still

giving out stemi checks in 2022 because

somehow the way to fight inflation is by

printing and giving away more money

but this is a problem this is the

federal reserve's balance sheet and we

need to get this white line probably

down to right around here the five

trillion dollar level from up here that

means we got a long way to go and

remember the stock market went up 92

cents for every dollar we printed during

this period of time here in 2020 and

2021.

it was only about three months ago that

the federal reserve finally woke up over

here and stopped printing money well

folks now we're starting to see cracks

in the bond market potentially because

of the start of quantitative tightening

listen to this

this morning we had

the worst

day in the treasury market

since december of

2010

weak demand in the bond auction this

morning when there was a 47 billion

dollar five-year note auction

was so bad

that we saw a 3.5 basis point higher

price than expected on the same day's

bidding

that in case it doesn't make sense to

you is totally fine all you have to know

is it was the worst amount of demand

that we've seen for bonds in the worst

mispricing in 12 years that's a sign

that quantitative tightening even though

we've just begun is already starting to

show signs of cracking markets and this

is probably why the stock market likely

started turning red today as well again

we're just at this little process that's

all that's all we've done so far and we

got to do that

that leads us to the second big problem

but first a message from our sponsor but

first i want to thank today's sponsor

moomoo moomoo is an advanced stock

trading platform that is offering all of

my viewers up to 10 totally free stocks

plus a free lucid stock when you open an

account and deposit money using my link

down below and folks each stock you get

is worth between three and twenty five

hundred dollars so there's literally no

reason not to get this free money when

you sign up and deposit with moomoo

moomoo makes buying and selling stocks

so simple and easy while we're all able

to get the relevant information and

analytics that we need while we're

investing straight with the moomoo

platform no more needing to go to other

platforms or news websites whatever

because they offer advance a trading and

research tools that are customizable

with more than 60 technical indicators

and 22 different drawing tools which

really helps with the countless hours i

spend doing research and technical

analysis moomoo gives you real time

quotes so you can be sure prices that

you're seeing are up-to-date ones not

15-minute delayed prices and they also

have no trading fees and also let you

trade totally for free during their

extended trading hours from 4 am to 8 pm

let's get up to 10 totally free stocks

plus an exclusive free lucid stock today

when you sign up using my link in the

description down below again link is

down below get 10 free stocks and a

lucid stock when you sign up with moomoo

today the second big problem that we

face is the lack of preparedness

potentially by

retail and individual investors take a

look at this chart here on the top it

shows us a sentiment not of consumers

but of stock exchanges it's a measure of

what the stock market sentiment is like

and take a look at how we've bottomed

out here here here and here but despite

this crazy sentiment where are retail

position well look at that we are still

67.5 percent invested in this market and

that might be a little bit of a problem

but i don't know if we could be blamed

for that because if we look at analysts

analyst recommendations are at the

highest levels that we've seen since

2002 and we haven't even gone into

the earnings recession yet or the actual

recession where we actually see people

spend less money and that shows up in

earnings analysts can give ratings of

between one a sell rating and five a

strong buy rating right the average

analyst levels right now for consensus

eps earnings estimates for companies

stands at a level of 4 which we have not

seen that level since 2000 over here how

how in the world are all of a sudden

expectations for earnings this high

going into a recession it doesn't make

sense now again you can't blame then

investors for being in the market

especially since shout out to trey we do

have some bullish signals trey posted

this chart here showing that usually

after we see these kinds of lows on

volatility we can oftentimes see new

highs in the stock market or at least

have bullish weeks to follow and so this

makes for quite a confusing market in

fact even though we saw the put call

ratio skyrocket over the last few weeks

we're now back to roughly average levels

so we go through these periods of

extreme fear and then we kind of relax

again but this is also very common in

bear markets the big danger that we have

to watch out for though is earnings

because earnings is expected to be the

next big drag on stocks that's the third

big problem that we have as part of this

crazy reset that we're going through

take a look at this chart over here

these are revenues in blue right here

you can see some nice revenue growth

these in red are priced to earnings

multiple so we've seen a collapse in

valuations of companies obviously as

multiples are plummeting

but what we haven't yet seen is earnings

move down and again maybe maybe analysts

are right we've seen this chart before

earnings expectations have not been

revised down but the problem with that

is anytime we've had large crashes like

here's the great recession right here we

always see earnings expectations come

down and it just has not happened yet

we're right here and see the blue lines

are equity prices the white line are

consensus estimates we saw it in the dot

com era we saw it in the great recession

we saw it during covid we saw it at the

end of 2018 we generally see earnings

estimates go down it's just for some

reason not happening yet and so when you

combine all three of these things you

kind of have a little bit of a scary

portrait you're in the situation where

you've got the treasury markets great

reset that could be a big old problem

when we go through the real quantitative

tightening cycle we've got people pretty

bullish on the market which hey you know

what i'm optimistic about the market as

well maybe not in the short term but of

course in the long run you've got retail

in the market more than out of the

market you've got a lot of signals for

reasons to be bullish but we are not

seeing those earnings revisions down yet

and it's a sign that the bottom just

isn't here yet so what do we do well

number one patience we're not even 50

through the year so there's likely more

pain to come for at least another six

months if not potentially a whole other

year

number two prepare for companies to miss

on earnings and potentially reposition

to companies that can still grow

earnings above expectations this is

where you can make a very strong case

for tesla even if you have cancellations

of a lot of orders

tesla expects to still grow earnings at

50 percent we'll see what happens number

three pay down debt don't get liquidated

you have to be a survivor during these

times number four prepare yourself to

buy real estate remember we've got a

brief extension on those programs on

building your wealth through thursday

link down below check out especially the

real estate ones and number five share

this video if you found it helpful and

good luck