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Why the Stock Market & Bitcoin is CRASHING.

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0:00

hey everyone me Kevin here the stock

0:01

market is falling and in this video I'd

0:04

like to explain why uh first things

0:06

first while I wanted to make this video

0:08

yesterday I thought maybe today things

0:10

would recover a little bit and we can

0:12

kind of do a postmortem on what happened

0:13

yesterday and I'm over here in Florida

0:16

try to get this this flight training

0:18

done it's it's it's exhausting but I

0:20

still want to provide this value to you

0:22

and what I noticed yesterday uh as we

0:25

talked about in the course member live

0:26

streams as well is there are few things

0:27

happening uh first thing is you tend to

0:30

see a really substantial selloff at the

0:32

beginning of the day uh and then another

0:34

sell off at the end of the day uh this

0:37

was actually the paler bounce right here

0:39

I uh sent a trade alert on some call

0:41

options on which which we did have have

0:43

a nice rise here but it certainly wasn't

0:44

anywhere enough to make up for uh the

0:47

drop in the beginning of the day if you

0:48

were long holding and not just entering

0:50

on that line now today what's

0:53

fascinating is we have not stopped that

0:56

downsell uh from the opening now this

0:58

could reverse and we could get back here

1:00

but this is indicative of something

1:03

usually when we see markets that dump at

1:06

the beginning of the day and the end of

1:08

the day this doesn't just have to do

1:09

with paler usually it's indicative of

1:12

institutional selling this is the S&P

1:14

500 right here uh and you can see what's

1:17

happening right now relative to uh what

1:20

happened yesterday you had the am cell

1:22

midday sort of buy the dip uh and then

1:24

end of the day sell now why does that

1:26

matter well it's a sign of institutions

1:28

drisking look I have a lot of experience

1:32

uh with with Wall Street and on Wall

1:33

Street uh and I'll tell you it's it's

1:35

not a very fun place to be mostly

1:39

because you kind of have to do what's

1:41

good for business not necessarily what's

1:44

best for your Investments you on on Wall

1:47

Street kind of always have to be there

1:48

to encourage people to buy deposit more

1:51

funds and of course you have exposure to

1:54

the latest and greatest stock the

1:56

problem with that is it actually removes

1:58

your ability to have foresight for the

2:00

Market uh see foresight is actually

2:02

really unpopular in the short term right

2:04

because foresight would tell you that

2:06

when stocks are really eoric you

2:08

probably want to sell and go buy

2:10

something that's super bearish like

2:11

bonds right but doing that is really

2:14

unpopular and so institutions usually

2:16

don't do that so publicly I find this

2:19

every day you get institutions that send

2:22

their sort of bulls out onto the street

2:24

ah everything's fine everything's fine

2:25

go buy the dip but then behind the

2:28

scenes institutions are putting these C

2:29

orders that we see at am and p.m now of

2:31

course AM and PM have the highest

2:33

volatility so is it possible that retail

2:35

is only trading AM and PM as well I

2:37

don't think so I think you know it's

2:40

usually just institutions that are your

2:41

big AM and PM movers you know right

2:44

after market open right before Market

2:45

close mostly because the way you could

2:48

trade with an institution is you can

2:49

Mark orders as Market on close as an

2:52

example right so you'll put in your

2:54

order you'll take your day doing your

2:56

research and your work you put in your

2:57

orders for the end of the day and you

2:59

submit M them off and then you go home

3:02

uh and then right before the closing

3:03

bell in the last 15 minutes these orders

3:04

get executed so that's typical that's

3:07

one of the reasons why you see these

3:08

moves now why would institutions be

3:11

dumping that's sort of the big question

3:13

here is I mean you've got Robin Hood

3:15

down 10% well keep in mind that when the

3:18

stock market Falls retail investors stop

3:21

buying stocks as

3:22

much excuse me still a little under the

3:25

weather shouldn't have gone to China you

3:28

know I thought doing a documentary on

3:29

Wuhan would be a cool thing anyway uh so

3:33

when retail lowers their volume of

3:35

course Brokers uh like Robin Hood are

3:38

going to see lower volumes and so people

3:40

are trying to pre- price okay Market

3:42

down well Robin Hood will go down by a

3:44

magnifying effect because of their

3:46

exposure to making money off of the

3:48

market movements and usually as markets

3:50

go down people don't actually trade more

3:52

they trade less mostly because some of

3:54

their money has evaporated you know

3:55

drone Powell is going around with a

3:56

giant vacuum cleaner basically sucking

3:58

up extra liquidity but

4:00

let's talk about some of the other data

4:01

that's going on so just this morning we

4:03

had the Richmond uh fed manufacturing

4:06

and Philadelphia manufacturing reports

4:07

that came out now the Richmond fed one

4:09

was interesting because they said that

4:11

activity actually increased somewhat in

4:13

February uh but that was because of a

4:16

notable increase in shipments well

4:18

shipments mean old orders have finally

4:20

gone out the door so what is the forward

4:23

information say so their composite went

4:25

up because of the shipments issue or

4:27

benefit I guess but then on the future

4:29

index they write the

4:31

following the local business conditions

4:33

index remained at5 in February while the

4:37

index for future local business

4:39

conditions fell from 32 to 2 the Futures

4:43

index for shipments and new orders also

4:46

decreased substantially from 13 and 8 or

4:50

2 13 and 8 subst respectively so both of

4:53

those plummeted vendor backlog times

4:55

also decreased so that's not great so

4:58

all of that kind of went in the Poopers

5:00

okay well what else did we get this

5:02

morning because that report on the

5:04

headline if you just read the headline

5:05

it'd be like oh it looks like it did a

5:07

little bit better than expected oh boy

5:09

go by the tip uh but then when you

5:11

actually look at the detail it's like

5:13

wait a minute the old stuff is good the

5:16

new stuff is bad okay so that's Richmond

5:19

fed but then we also got the

5:21

Philadelphia fed report this morning we

5:23

covered all this in the course member

5:24

Liv stream which keep in mind we've got

5:26

a large like this is going to be the

5:29

largest price increase ever at the end

5:31

of this month uh for the courses so go

5:32

to me kevin.com if you want to be in you

5:34

pay once you get lifetime access and

5:35

we're probably going to be doing mini

5:37

masterminds later in this year no

5:38

guarantees but it'll be for course

5:40

members only and the goal is to get the

5:41

entry price up to 800 to 1,000 bucks

5:44

right now it's a fraction of that so

5:46

check that out over at meetkevin.com

5:47

you'll be really happy if if you join

5:49

sooner rather than later and you hey we

5:51

were live this morning for over an hour

5:53

and a half uh you know just talking

5:55

about what's going on as the Market

5:57

opens so if you still want those those

5:58

Market open Live streams you can get

6:00

those in the course member live streams

6:02

every single day we I even do weekends

6:05

uh really just trying to provide as much

6:06

value as I can to course members and you

6:08

just get you know raw Kevin every day

6:10

raw raw dog Kevin oh

6:12

boy uh anyway so Philadelphia Federal

6:16

Reserve Bank uh indicated this morning

6:19

the following uh manufacturing activity

6:22

declined this month according to firms

6:24

responding to February's uh

6:26

non-manufacturing business Outlook the

6:28

index for General activity at firm at

6:30

the firm level new orders and sales and

6:32

revenue all declined into the negative

6:35

territory firms continue to report

6:37

overall increases in full and part-time

6:39

employment that's actually good uh and

6:41

price indices suggest little change in

6:43

the prices of firms own goods and

6:45

services but continue to indicate an

6:47

increase in the price for inputs so this

6:49

is what I've been saying for for a year

6:51

now is that companies don't have the

6:52

pricing power to keep raising prices on

6:54

you with the exception of you know food

6:56

and eggs and and insurance they they do

6:58

because uh well out of the whole basket

7:01

of everything Insurance substantially

7:03

lags and then you know we generally look

7:05

at food as very volatile just because

7:07

Supply chains because of bird flu and

7:08

things can can be very volatile same

7:10

with energy um but for for most goods

7:13

and services you have pricing issues in

7:15

fact if you look at the Philly fed one

7:18

going back to this one it actually says

7:19

the average growth rate of prices Edge

7:21

down look at Home Depot Home Depot is

7:24

forecasting growth of 1% in comp sales

7:28

inflation's going to be higher than 1%

7:30

so they are actually shrinking on a real

7:33

basis an inflation adjusted basis

7:35

continuing on uh they indicate that this

7:38

was the first negative read in

7:40

employment since April uh or sorry in in

7:44

the employment work week so usually when

7:46

the average work week Falls that's a

7:48

precursor to people getting laid off

7:50

layoffs happen last you know people keep

7:52

going on CNBC they're like but but the

7:55

economy is good because our employment

7:57

so when unemployment weeks you are

8:00

already at the bottom of the stock

8:02

market that's by

8:04

time uh current indicators declined to

8:08

the worst level since April of

8:11

2023 uh and we had the future Regional

8:15

activity index turned slightly negative

8:17

its first negative read since August so

8:19

the Philadelphia fed report this morning

8:21

was bad the Richmond fed report this

8:22

morning was bad those are just from this

8:24

morning last week's S&P PMI report that

8:27

I covered was terrible it was really bad

8:30

like you should look it up if you

8:31

haven't seen it yes S&P PMI report on

8:35

business you could literally just Google

8:36

that uh and uh and you'll find the

8:40

February here you just go there see S&P

8:43

Global flash us PMI report pop that open

8:46

please I encourage you this is your

8:48

homework read it I'll just read you the

8:50

first line because I've already covered

8:51

this I don't want to sound redundant but

8:52

just as a reminder us business activity

8:55

growth came close to stalling in

8:57

February

9:01

so no why is the stock market going down

9:03

wow maybe because institutions are

9:05

actually reading these reports and while

9:08

their minions are going on CNBC telling

9:09

you everything is okay they're actually

9:11

in the back office is going oh

9:17

look there's something you have to

9:19

remember and I'm not saying this to be

9:22

you know a bear on on Trump but there's

9:25

something you have to remember about

9:26

Trump

9:27

policies Trump

9:30

policies are growth negative at the

9:33

beginning growth positive at the end so

9:37

think about that for a moment what is

9:38

what does that actually mean what am I

9:41

saying when you fire people even because

9:44

of waste I'm not making a political

9:46

argument here I'm just saying fact of

9:48

matter is when you fire people growth

9:51

contracts simple when you tariff tariffs

9:54

are terrible economic policy and they're

9:57

nowhere near good enough to help off set

9:59

our tax revenues but that's okay it's

10:01

not political it's just simply stating

10:02

both of those together are growth

10:04

negative policies uncertainty around you

10:07

know what's going on with Ukraine or

10:08

whatever or you know are we going to

10:10

turn the Gaza Strip into uh uh you know

10:13

a new monoco uh these are all

10:16

uncertainties that are growth negative

10:18

right because we look and we go oh my

10:19

gosh what's going to happen what's going

10:20

to happen what's going to happen we

10:21

don't know Rana had an interesting

10:24

argument he's like look Trump if if you

10:26

just said like cuz ran is a Democrat

10:29

he's like look if you just said this is

10:30

what the tariffs are going to be great

10:32

then we can plan for it but what's

10:34

actually happening it's a sort of like

10:35

Hey we're going to do 25% tariffs ah

10:37

just kidding you know we're going to

10:38

have more troops at the Canadian border

10:40

uh oh yeah you know what yeah we're

10:42

actually still working retaliatory

10:43

tariffs on on uh Canada and be like proo

10:47

um this is not this is not to be

10:49

anti-trump it's just simply to make the

10:51

the statement that that uh confusion uh

10:55

does create uncertainties which make

10:57

people uh less confident in buying and

11:00

they are growth negative for the time

11:02

being now consider that for a moment

11:05

growth negative at first eventually is

11:09

supposed to be offset by what well tax

11:12

cuts right let's get some water here

11:15

Florida tap water

11:18

baby all right so if you have growth

11:22

negative policy that hits first later

11:25

the goal is to get growth positive

11:27

policy but that takes going through

11:30

Congress right you have to get your tax

11:32

policy through Congress you have to get

11:35

your tax cuts through Congress what is

11:39

this okay I thought I only had tea and

11:42

decaf coffee oh I I need real coffee uh

11:47

but anyway thanks Marriott uh tax policy

11:50

is going to take a while to actually

11:51

implement the tax policy won't actually

11:54

probably come until uh we get to 2026

11:59

that's probably when we'll actually see

12:00

our tax policy so if we have to wait

12:03

until 2026 to see growth positive

12:06

regulatory Cuts more certainty and tax

12:10

cuts well you know by then the economy

12:13

could be in a deep dark recession now

12:15

I'm not praying for that because I think

12:17

that's very bad uh I do think there are

12:20

ways you can Hedge for that uh

12:22

specifically I'm a big fan of um bonds

12:26

uh TLT I think TLT you know $95 call

12:29

options 2026 uh and $100 call options

12:32

2027 are quite interesting as a hedge

12:33

for this you have to look at them as a

12:35

hedge because look bonds do great when

12:37

the economy does poorly and uh you know

12:42

the economy only does poorly two out of

12:43

every seven years so statistically if

12:46

you were going to throw a dart you're

12:47

more likely to hit a bull market right

12:49

that said this latest data has moved me

12:51

from a four and a half on the bull bear

12:53

scale or bare bull scale down to like a

12:55

two and a half the latest that is bad

12:57

but what about apple apple and it's 500

12:58

billion investment let me tell you about

13:01

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make sure I always have cell service

14:42

anyway let's talk about the Apple scam

14:45

so look I like Apple I like Apple a lot

14:48

I think they're a great company I'm a

14:50

big fan of their

14:51

leadership but when I heard Apple say

14:54

that they're going to invest $500

14:55

billion over the next 4 years in in data

14:59

centers to support their you know

15:01

private cloud data centers which isn't

15:04

really AI Cloud uh that would be you

15:07

know these these AI data centers I mean

15:09

I suppose they could be AI for like the

15:11

internal neural Nets that they want to

15:12

use but they really want to run these on

15:14

your devices so I suppose it would be

15:16

more like protected Cloud uh for uh you

15:21

know things you want to upload on your

15:22

iCloud or whatever and then

15:24

audited uh servers data centers that are

15:28

protected these are somewhat different

15:29

from GPU based data centers they might

15:32

be more uh you know hard drive based

15:34

data centers uh but they'll probably

15:36

also be some GPU data centers might be a

15:38

mix of both but Apple made this

15:40

announcement that uh they want to create

15:44

20,000 jobs over the next four years

15:46

ideally you know sort of exactly matched

15:48

with that Trump Administration it's a

15:49

bend the knee is what it is right I mean

15:51

meta bent the knee for Trump and their

15:53

stock went up like 25% and so you know

15:56

people are kind of like oh boy let's go

15:59

Trump because it makes our stock go up

16:01

that's fine again I I'm not here to be

16:03

political but what I am here to do is

16:05

look and I I was joking about this with

16:07

course members this morning I'm like you

16:09

know the meeting between Apple and Trump

16:11

probably went something like oh hey

16:14

Trump we'll invest all of our cash flow

16:16

into uh the United States please please

16:20

don't terrif

16:21

us and this is what they did kind of in

16:24

2018 where you had this Chinese tff war

16:27

going on and the Chinese sword in

16:28

initiatives and Donald Trump Exempted

16:31

Apple from a lot of the tariffs and

16:33

actually ended up giving CEO Tim Cook or

16:36

CEO Tim Cook ended up giving Trump one

16:38

of the first of the new models of Max uh

16:41

that were released because of this sort

16:43

of relationship that they were able to

16:44

earn and the exempting that Apple got

16:47

for terorists which is Mission critical

16:48

for them because of how much they

16:49

manufacture overseas and then also how

16:52

much they sell overseas but then I look

16:54

and I go uh well wait a second Apple if

16:56

I look at your balance sheet and current

16:59

assets you all have about $65 billion

17:01

which is cool but it's a far cry from

17:03

$500 billion so then I'm like all right

17:05

well what's their cash flow and that's

17:07

where I figured it out their yearend

17:09

cash flow is about $120 billion which is

17:13

fantastic but that basically means they

17:16

are saying hey Mr Trump we will invest

17:23

105% of our next four years of cash flow

17:26

or 100% of our next four years of you

17:29

know projected cash flow back into the

17:31

United States you know Trump's probably

17:33

like can you all do

17:35

more you know but but this is this is

17:38

actually a good thing right because you

17:40

have a president who is encouraging

17:42

businesses to invest in America and you

17:44

know a lot of people see that is very

17:46

good you create American

17:47

jobs uh at some point those data centers

17:50

will create more American demand for

17:52

goods and services restaurants around

17:54

those data centers the construction

17:56

industry that gets supported there I'm a

17:58

big fan of of those sort of

17:59

announcements from the private sector

18:01

they're actually not too dissimilar from

18:04

the Biden Administration announcing the

18:06

chips act and investments into America

18:08

right except rather than the government

18:09

making the investment announcements it's

18:10

private Enterprise doing that uh for the

18:13

benefit of them potentially being exempt

18:14

from tariffs this is this is the goal of

18:16

trump the the whole point here is to try

18:18

to get businesses to invest in America

18:20

so I see the point in the short term it

18:23

does create some uncertainty stuff so uh

18:26

you know is the Apple investment announc

18:28

a scam no it's just it implies they have

18:34

all the money now and they're really

18:36

just promising their future cash flow

18:38

and I personally don't think that

18:40

promising your future cash flow for

18:41

Investments is a Sound Investment

18:44

decision because you just don't know

18:46

what's going to happen between now and

18:49

then but that's just my take okay so

18:52

then

18:52

Microsoft you know this was an

18:54

interesting one Microsoft came out and

18:56

said oh uh you know there are some

18:58

people in the rumor mill talking about

19:01

our our us cutting leases which I made a

19:03

video on this and they basically said so

19:07

the news is true but uh we're going to

19:09

reinvest that money into something else

19:12

see I personally actually think that a

19:14

lot of these companies are going to

19:15

realize they've overbuilt llm

19:17

Investments you know language model

19:19

Investments and I actually think you're

19:20

going to see a big movement towards

19:22

other types of capex so I think they'll

19:24

still spend the capex but it'll go to

19:26

things like actuators and batteries for

19:28

Rob robotics rather than just data

19:30

centers for llms that's my take uh but

19:34

uh you know something to look at as well

19:36

just some other data points here

19:38

Microsoft uh while it fell yesterday due

19:40

to these lease cancellations and Nvidia

19:42

was down 3.1% on the news it you do have

19:45

Nvidia earnings coming up and I actually

19:48

think Nvidia earnings will be quite

19:49

bullish mostly because they're like

19:51

never not bullish when have you ever

19:54

heard of Jensen go up and not tell you

19:56

about the multi-trillion dollar

19:58

investment opportunity other R you are

19:59

going to get a bullish Jensen

20:03

hall now are you going to get the same

20:05

levels of growth

20:07

projections I don't know I guess we'll

20:10

see usually Nvidia beats and raises so

20:13

the Market's already expecting a beat in

20:15

race will it be enough you know Home

20:17

Depot stocks down today and they

20:18

technically beat but their growth was

20:21

trash I mean to some extent they're even

20:23

expecting negative growth so I'm not I'm

20:26

not like purely optimistic

20:29

uh now that said am I you know a mega

20:32

bear well I always just like to use my

20:34

bear bull scale I also really like to

20:36

take a sip of this coffee but it's too

20:37

hot right now so I have been uh under a

20:41

five on the bare bull scale so you know

20:44

one is sell everything 10 is all in on

20:47

margin I've been under a five since last

20:50

summer now that's been disappointing

20:53

because to some extent that means I've

20:55

been more bearish than I should have

20:56

been during the uh the the Trump

20:59

enthusiasm face which was you know an

21:01

incredible

21:02

run

21:04

but when we actually look at the

21:06

underlying fundamental data we look and

21:08

say okay is it possible that we pulled

21:11

forward a lot of production and goods

21:14

and service spending in anticipation

21:16

that everything's going to be great in

21:18

2025 and then all of a sudden 2025 hits

21:20

and it's like oh more uncertainty tariff

21:23

uncertainty tax uncertainty the benefits

21:25

aren't here yet of course I mean we knew

21:27

this we read this like a book before

21:28

happen uh pricing power is limited like

21:31

at some point the Slowdown will hit and

21:34

you know if institutions are just

21:36

talking about oh well you know jobs are

21:38

still good then I think they're just

21:40

again sending their lying Minions on

21:42

CNBC to tell you that uh everything is

21:44

fine when the reality is it's not and

21:46

when you look at hedge fund exposure to

21:48

the mag 7 right now people are actually

21:49

joking that it's going to be called the

21:50

lag seven because hedge fund exposure to

21:53

the mag 7 right now is at the lowest uh

21:56

level that we've seen in years

21:59

uh people are talking about uh how uh

22:02

even Baba sold off after they announced

22:04

$53 billion of infrastructure spent and

22:07

they see that as potentially a negative

22:08

Catalyst for NVIDIA although Baba's

22:11

actually popped up today Baba's been

22:13

doing great since they're they're you

22:15

know doubling down on AI so a lot of

22:17

people actually on the flip side are

22:19

taking the opposite side of that trade

22:20

and they're saying nah man all in on

22:22

China baby if the us is going to slow

22:24

down we'll go to China that's fine I I I

22:27

I'll just be transp parent I'm not I'm

22:29

not as well educated on uh on China so I

22:32

try to stay away from uh opining on

22:35

everything Chinese uh Starbucks we saw

22:38

cutting jobs Southwest cutting some jobs

22:40

uh hims losing its access to I could

22:44

probably never pronounce it right but

22:45

semaglutide semaglutide that's not so

22:48

great for him uh that's been one of

22:50

their highest margin products and

22:52

highest like I mean I think they charge

22:53

somewhere around 199 bucks a month to

22:55

have somebody come in uh and be a member

22:57

and have ACC to semaglutide through HMS

23:00

whereas they charge normal members like

23:02

$39 to $59 a month I believe it is so

23:05

you know you're getting a lot more

23:06

margin over there but you know we've

23:08

we've done a whole analysis on him in

23:10

the course member live streams you can

23:11

go check out uh where we actually go

23:13

deep on this but anyo uh

23:16

the the uh current latest that we have

23:19

from Trump on tariffs is that Canada and

23:21

Mexico tariffs are going to be quote on

23:23

time now and moving along very rapidly

23:25

those are quotes from Trump following an

23:27

initial delay until March 4th which is

23:29

already next week which is crazy means

23:32

that coupon expiration is coming up at

23:33

the end of this month already that's

23:35

wild February 28 that's going to be a

23:36

big one it's going to be the one of the

23:38

biggest price hikes uh in a very very

23:40

long time and it's mostly because as we

23:42

start initiating doing um uh local

23:45

meetups later this year uh we uh the

23:48

entry price is going to be a lot higher

23:51

uh Bond uh oh yeah and then there's this

23:53

talk about uh TLT being at some of its

23:56

highest levels of short interest in

23:59

quite a while uh creating what a lot of

24:02

people argue is is a potential buy the

24:04

dip opportunity in in bonds but then

24:06

again I have exposure to bond so I I

24:07

don't want to sound biased but I found

24:09

that very interesting that short

24:10

interest is so high probably because

24:12

it's made a lot of money you know you

24:14

shorted bonds you made a lot of money uh

24:16

now another thing that I'd like to talk

24:17

about is U micro strategy and Michael

24:19

sailor so Michael sailor bought like2

24:22

billion of Bitcoin again at somewhere

24:23

around $95 billion and it basically did

24:26

absolutely nothing for the stock which I

24:29

thought was very very interesting

24:31

because you know much like other people

24:33

people are like huh usually when Michael

24:35

saor buys Bitcoin goes up but that

24:38

didn't happen right now and I think

24:39

that's because again the

24:42

institutions they're not being

24:44

transparent to your face in that they're

24:46

just secretly de grossing substantially

24:48

and that includes de grossing on whether

24:50

they have altcoin exposure Bitcoin

24:51

exposure whatever it's just it's

24:53

basically all turning into

24:54

sell which could be very shortterm it's

24:57

entirely possible that we get Nvidia

24:59

with some Banger earnings tomorrow and

25:01

everything just goes back to the moon

25:02

and we go back to normal and this was

25:03

just a short-term by the dip opportunity

25:06

fine the reports that we're reading the

25:08

pmis uh Richmond Philly feds uh

25:11

University of Michigan sentiment and

25:13

some of the other data we're getting

25:14

they don't necessarily agree with that

25:16

but hey who knows may maybe that'll

25:18

spawn new

25:21

investment but I think one of the

25:24

reasons why Bitcoin didn't actually move

25:26

up substantially

25:28

after the sale or $2 billion buys

25:30

because you basically just match that

25:32

with another $2 billion of sales see

25:35

that doesn't even necessarily have to be

25:36

on the public Bitcoin Market it could be

25:39

done through what we call dark pools

25:42

which I know I'm going to get a lot of

25:43

people Kevin it's blockchain it can't be

25:45

dark pool dark poool doesn't mean that

25:46

it's not like that that we'll never see

25:49

it uh it just means that it's not done

25:52

through your open and public market so

25:55

for example let's say you have gold

25:58

Sachs that says hey we've helped yall do

26:01

so much in in in bond offerings uh we

26:03

actually were look you know we want to

26:05

help you with another Bond offering

26:06

Goldman um micro strategy we've made so

26:09

much money off y'all in commissions uh

26:11

by the way we have about $2 billion of

26:13

Bitcoin that we want to offload and I'm

26:15

just speculating here right but I just

26:16

want to explain how it could work we

26:18

have $2 billion of Bitcoin that we want

26:19

to offload uh next time you guys raise

26:22

money and want to buy Bitcoin can we

26:23

just sell it to you directly so that's

26:25

still going to appear like an onchain

26:26

transaction but it's not going to appear

26:28

like a you know a giant Candlestick on

26:31

on the uh public pricing markets for

26:34

Bitcoin because it could just be an

26:35

agreed upon market price okay we we'll

26:37

put the transaction through we'll we'll

26:39

trade that $2 billion with you uh and

26:42

and you'll still see that on blockchain

26:45

but you won't see that necessarily on on

26:47

like you know somebody put in limit

26:49

order by $2 billion Bitcoin you'd see

26:52

these giant candles up or somebody put 2

26:54

billion sell you'd see these giant

26:55

candlesticks down instead you're just

26:57

matching a buy and seller at probably

26:59

roughly what market price is and then

27:02

you can see the volume but the price

27:04

doesn't move that's just an example of

27:06

how this sort could potentially work

27:08

that's at least how these I guess maybe

27:10

a better word than um uh dark poool

27:13

would be to call it uh block

27:15

transactions right uh this is this is

27:18

frequently done on Wall Street and so it

27:19

can be done in crypto as well uh just

27:22

basically manually arranging a buyer and

27:24

a seller very very

27:25

common so what does this actually mean

27:29

though for the long term well uh a

27:32

Bitcoin sell down Michael sailor

27:35

believes would actually be totally fine

27:38

for micro strategy because they say that

27:40

even if they had to pay their bonds back

27:43

and the company value went down because

27:44

Bitcoin went down they would just be

27:47

able to pay people back in cheaper micro

27:48

strategy

27:50

stock I don't know what Michael sailor

27:53

is smoking but that's not how bonds

27:56

work when you sell convertible bonds

27:59

you're promising to pay people back in

28:02

cash uh when the Bonds

28:04

mature well unless you have the cash

28:07

you're going to have to sell your stock

28:08

at a lower level to pay people back in

28:10

that cash they're not going to take

28:12

micro strategy stock at a lower

28:14

level most of the convertible bonds that

28:17

I've been studying for micro strategy

28:19

all have conversion prices that are way

28:21

higher than where they are now the last

28:23

time I looked at a micro strategy Bond

28:25

it had conversion prices for like 2028

28:27

at like

28:29

$650 and so if it didn't convert at 650

28:32

people get their cash back well how are

28:34

you going to pay people back if the

28:36

stock is

28:37

$200 well that's probably a lot easier

28:40

than if the stock is

28:42

$25 so that's going to be something to

28:45

pay attention to in the next cycle

28:47

that's not to be bearish Bitcoin it's

28:48

actually to be bearish micro

28:50

strategy same that's uh they've set

28:55

themselves up for quite a lot of debt at

28:56

a at a higher cost basis right so that's

28:58

going to be something to pay attention

29:00

to all right so now we've talked

29:03

artificial intelligence Bitcoin we need

29:06

to talk housing

29:08

so see housing out there I'm a big

29:12

fan but it depends on the location right

29:15

now Florida and Texas and many parts of

29:19

the country including some parts of DC

29:21

are going

29:23

through a supply shock more inventory is

29:26

coming on the market at the beginning of

29:27

the year than buyers are showing

29:29

up that is a positive Supply shock which

29:32

typically leads to a reduction in

29:35

prices that creates an opportunity and

29:38

that is where I personally see an

29:41

opportunity to move more of my own money

29:44

into house hack yes I do selfish plug I

29:49

suppose but here's what I love about

29:52

house hack first of all our reg should

29:55

be out within the next week or two we'll

29:58

probably talk to course members about it

30:00

first but but I I'm not sure how long

30:01

it'll be it could be even longer so this

30:03

video is not a solicitation because

30:05

there's there's nothing to do right

30:06

now but what we'll probably do is keep

30:10

doing what we've been doing which is

30:12

when we raise money we buy real estate

30:15

where we can get it for a discount that

30:17

protects us if the market goes down but

30:19

it means we are one of the buyers during

30:21

a panic period we're raising cash we pay

30:24

out our our uh rental yield it's about

30:26

5% so we pay that out

30:29

uh and if we can grow the value of the

30:31

company you get that upside as well

30:34

that's basically what we do but I just

30:35

buy fixer ERS go around the country buy

30:37

fix ERS and we expand the business right

30:40

now we're pretty heavy West Coast but

30:41

we're looking to expand towards Texas

30:43

and Florida and we actually think we

30:44

don't know if that time is right now but

30:47

we think soon there will be an

30:48

opportunity to start buying the dip on

30:49

Texas and Florida I think we're getting

30:52

closer to that buy the dipo opportunity

30:54

it might still be a year but we're

30:55

getting closer uh event they'll bottom

30:58

out uh and uh and then also develop adus

31:01

so I'm a big fan of real estate now

31:04

aside from from talking about house hack

31:06

why do I think real estate is so

31:07

interesting right

31:08

now well I believe that if the market

31:10

truly is slowing down then interest

31:12

rates are going to plummet in fact I

31:14

think that in the longer term we'll

31:16

probably see interest rates come all the

31:17

way down to the 30-year mortgage will be

31:20

lower than

31:21

2% we'll end up having a 40 or 50e

31:24

mortgage it'll be under

31:26

3% we'll have lower 30-year mortgage

31:28

rates than we've ever had before I think

31:30

we are heading into more of a

31:31

deflationary spiral rather than uh an

31:34

inflationary second wave so I think

31:36

these these concerns that like credit

31:37

agricult have about oh we're going into

31:41

stagnation because January's inflation

31:43

report was slightly high whatever

31:46

dude you can believe that and and look

31:49

if there's deflation and a recession you

31:51

know what'll do really well as gold but

31:53

I actually think we'll have deflation

31:55

and

31:56

recession which means bonds will do well

31:59

gold could do well because of the

32:01

recession aspect but but you'll lose the

32:03

inflation

32:05

buyers so real estate is very

32:08

interesting though because if you can

32:10

own

32:12

assets that uh that are sensitive to

32:15

interest rates this is why I like rock

32:18

and mortgage United Wholesale I think

32:19

some of these are near Rock Bottom I'm

32:21

not saying they're at their bottom yet

32:22

but they're near Rock Bottom uh end

32:25

phase uh you know um uh

32:29

housing these are assets that I think

32:31

can do really well when rates

32:33

plummet and if the stock market slows

32:36

down because the economy is starting to

32:38

slow down and institutions are starting

32:39

to see the red

32:41

flags and that ends up leading to

32:44

layoffs then yeah it's just a matter of

32:46

time for rates to plummet uh and so you

32:48

want to sort of preposition and and pre-

32:49

anticipate some of

32:51

that

32:53

so that's my take and uh if you want

32:57

more details and Analysis from me make

32:59

sure you're part of the courses huge

33:01

price increas is coming so U make sure

33:03

you get in by Friday the 28th if you

33:05

have questions email us at staff

33:06

kevin.com course member live streams

33:08

every single day by sell trade alerts uh

33:11

when I see opportunities long-term

33:13

fundamental analysis so whether you like

33:15

long-term short-term real estate stocks

33:17

we cover it

33:19

all really encourage you check it out go

33:21

to Meek kevin.com thank you so much for

33:22

being here folks and uh hope to be

33:24

better soon still feel a little under

33:26

the weather I'm going to have some

33:27

coffee now and uh we'll see you in the

33:28

next one appreciate yall see you goodbye

33:30

and good luck

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