The Fed is PISSED | Bad News.
FULL TRANSCRIPT
short sellers can Rejoice today because
boy we've got another red day we've got
a lot to talk about from Apple Amazon
the number of shorts we're seeing Russia
China fed news oh more fed news and even
more to cover so let's hop right into it
do keep in mind the triple bundle is now
available so many of you have been
asking for a bundle for both uh or
actually all three stocks Elite Hustlers
and real estate one-time payment
lifetime access to all current and
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done in those courses so grab that
triple bundle it is live now so let's
get started Apple slowing down hiring
we've heard about this for a while now
it's now official Apple is cut and
hiring substantially especially with
that slow down on iPhone sales some of
it having to do with China Amazon now
laying off potentially up to 10 000
workers also remember that Amazon Alexa
is on The Chopping Block costing Amazon
around 4 billion dollars a year with a
unclear indication of it actually being
profitable for Amazon remember for some
folks you're able to or some people have
it set up so that you can order things
through Amazon Alexa but how many people
actually do that I don't know maybe you
do let me know in the comments down
below but more interestingly record cash
flows into leveraged bets against Tech
right now take a look at this chart here
so the higher we see this little tick
line go on the right the more bets we're
seeing I'll get myself I'll just hide
myself for a moment the more bets we're
seeing against a tech there we go that
works and right now we've got
658 million dollars of bets that went
into sqq that's the triple short for the
NASDAQ 100 Technologies index 658
million dollars went into sqq today
Monday morning and
256 million dollars went out of pqqq
which is the triple so the 500 or the
658 into the short fund is the largest
ever increase of bets into the short
fund it's the largest bet we've ever
seen in and the 256 out of the triple
bullish NASDAQ 100 has seen the largest
outflow since January this is incredible
at the same time we're seeing the S P
500 at liquidity levels so low which we
have not seen uh really since some of
these other crazy lows here look at this
we're at 32.67 we were a little bit
lower with liquidity over here during
the pandemic the March Crush but really
if we draw a line over we don't actually
see this happen again until 2009 and
it's very very rare that liquidity is
this low there we go I draw a little
line here it makes it a little bit more
clear where uh where we're about to
bounce all for that low level of
liquidity there we sat there around 2009
but otherwise look at this this goes all
the way back to 2000 and you just don't
see s p trading liquidity this low
remember liquidity is everything
liquidity is your ability to actually
buy the dip just because you want to buy
the dip doesn't mean you have cash to
actually buy the dip some good news
today out of Russia we have the US
apparently having had a meeting with
officials from Russia in Ankara this is
in Turkey obviously also if you have not
heard there was a uh what looked like
either a bombing or a suicide bombing on
a popular shopping street in Turkey I've
personally been on that street before
really devastating at least six people
lost their lives uh following another
tragedy in Dallas where six people also
lost their lives from the air show plane
crash on Saturday it's terrible terrible
but we also have some news here from
Biden and then we got to get into the
Federal Reserve which is important so
Biden met with China uh China's Xi
Jinping and they expressed their
willingness to compromise on key issues
which is good China talked about no
imminent threat of a Taiwanese Invasion
we didn't get any kind of information on
covet zero loosening uh Biden reiterated
that the one China policy has not
changed and we're not looking for a new
Cold War personally I think this is
really annoying be not that not looking
for a new Cold War part but the one
China policy part because the United
States makes it really clear that it
recognizes Taiwan as independent yet
when they talk to China they say we
believe in a unified China which is
basically Taiwan belongs to China so
your official stance is that Taiwan
should belong to China and that's what
you tell China when you talk to China
but then when you talk to the Taiwanese
or Nancy Pelosi visits Taiwan you're
like we support your Independence this
is like
like there's no other way to
put it like no wonder China's like
what's your problem like on one hand
you're taught you're doing that with
Taiwan and on the other hand you're like
oh yeah we're big fans of free trade and
and China's like really what's with this
chips act where you just banned access
to a bunch of AI and robotic supportive
chips uh for sale in the Chinese market
all you're doing is encouraging us to
tighten our exports to you for for
quality products that we make uh and uh
and and making us want to grow those at
the home base to which of course the US
is like quality products that you can go
okay
it's just I I get it like I get it the
US is is strong it's got twice the
economy in China but there's some things
here where I'm kind of like dude you
can't really blame the Chinese for some
of the stuff it's it's very frustrating
anyway so uh now let's talk about the
FED because the the FED sent some more
Nikki leak texts and and it's it's just
honestly at this point it's just getting
exhausting let's talk about that before
but before I talk about more of this
negativity we got to remind you use that
Black Friday code okay this is going to
be the best code that you have had is
the biggest coupon code ever for those
programs in building your wealth I am on
vacation for the next few days but I'm
still bringing you content and we've got
a huge set of new lectures coming not
only does the elite Hustlers course
completely release on Black Friday but
you're going to get brand new lectures
that go deep into fundamental analysis
and real estate analysis to prep you for
2023 in December then I'll probably go
into some of the other courses as well
like property management is going to get
a revamp especially as we ramp up house
hack and you may as well just lock in
the prices now as the prices will be
higher as we go forward so kind of
contribute to inflation you know I mean
it's happening after all maybe I'm just
playing catch-up anyway uh no most
importantly I do remember that when you
join you get a better price today than
you can in the future and you get
lifetime access so we got rid of any
kind of monthly fees I think uh we we
have a really good uh similar mindset
that monthly fees are bad and so I
thought you know what let's just go with
a one-time fee all right so what did we
hear from our boy and Nikki leaks the
guy over at the Wall Street Journal who
always seems to get texts from the FED
on the latest and greatest okay well
let's go ahead and take a look over here
uh this morning we got uh Nick saying
the following actually let's start with
this one he says the New York fed survey
of consumer inflation expectations
showed that consumer inflation
expectations moved up that is the wrong
way reversing several months in which
the inflation expectations fell this is
true this is a little bit problematic
however in my opinion in it's really
important to remember that consumer
inflation expectations seem to follow
what CPI does so we had a little bit of
a peak in CPI like the Consumer Price
Index inflation report in September and
so it's no surprise that when the survey
was taken before the October CPI came
out that expectations would go up now
inflation fell I wonder if you did the
survey again if we would actually see
inflation expectations go back down but
yeah inflation expectations with the New
York survey did kind of fall apart a
little bit here a lot of this had to do
with gas prices expected to be up 4.8
percent next year that's only up from
half of a percent in September so you do
have two compounding issues there gas
price concerns uh an extension of this
war and drama uh and and yeah well drama
over gas prices in Europe and war in
Ukraine but gas price expectations
believed to be up 4.8 percent in next
year versus just point five percent was
the expectation for next year in
September then for the headline
inflation expectation reads from the New
York survey we got a report of 5.9 where
we think inflation is going to be in one
year versus 5.4 in the prior report in
the three-year inflation report looking
to be at 3.1 percent up from 2.9 in the
last month's report for three years out
that's a problem because remember the
fed's trying to get us to two percent
and everybody's excited about this idea
that the Federal Reserve is going to
reduce rates but like we talked about in
a video yesterday I don't know that the
FED can justify reducing rates if they
want to keep barreling towards two
percent I mean look last time after Paul
volcker you know we dropped to under 10
percent within a year but it took us
another 15 years to get under three
percent or to around the two percent
level it's remarkable so expectations
now are that's going to take about three
years to get to about three percent
three point one percent and after five
years we think we'll be at 2.4 percent
and that's also up from 2.2 so you are
seeing a little bit of a deterioration
here in expectations although again I do
wonder how sensitive that is to the last
CPI report but also just take a look at
the break evens here these are the
five-year Break Even inflation reads
these are what I always like to look at
it's the Market's expectation I think
they're a little bit better at
predicting inflation than than actual
consumers but if we take a peek over
here we see that it's Fallen nicely
after that last CPI report which is good
we're nowhere near where we were a bit
ago uh like September October I really
hope we can kind of revisit that sort of
downtrend but I think today's consumer
expectations are kind of making this
firm up a little bit right here I get a
move where my little icon is here sorry
but anyway let's take a look at some of
these other things fed Governor Chris
Waller on October CPI report the market
seemed to get way out in front I cannot
express enough this is just one data
point remember the Federal Reserve does
not want the stock market to go up
because what it actually does is it
loosens Financial tightness and the FED
wants a lot of tightness they want
things to be really really tight and so
when the FED says we've still got ways
to go what they're really doing is
they're echoing what Jerome Powell said
in the last fomc meeting and this is
what they they they saw happen in July
as well in July we got you know some
some soft reads on inflation so uh or or
before actually the July report I
remember actually being bad I think they
mean regarding the June report where we
so we kind of had a rally coming out of
the third week of June after CPI and we
kind of rallied near to the end of July
and so I think this is the situation
they're referring to where markets
really rallied and loosened Financial
conditions and the fed's like no no no
we don't want to do that remember 7.7
inflation is still really really large
it's still really bad so don't just
think you know one one report is is good
uh and and then they kind of make this
reference to look if inflation
expectations run away which now they're
trending up it happens fast like it pops
like a balloon uh you know it's just
it's once inflation expectations on
anchor we're screwed and we'll have to
Paul or the economy and then we're in
for real hell so yeah if you're
wondering what's going on in the market
today it's a great day for 60 off coupon
code because well you've got a little
bit of pain you got shorts loading on
the bets again and uh the hopes of a
rally between now and uh and the
beginning of December CPI report got
dashed a little bit today though I'm
personally still optimistic that we'll
have a nice positive CPI report in
December and hopefully we can really
sustain that disinflation we're
expecting to see but uh you also have to
be prepared that that expectation could
be wrong and we could have to be a lot
more patient which is the same thing we
see with househack we will be patient to
buy real estate until we've got the best
deals possible if you want to invest and
you're an accredited investor check out
the PPM at househack.com because this
video is not a solicitation but that
website and PPM is thanks so much and
we'll see in the next one bye
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