Prepare for the next 50% CRASH | Global Market Crash.

oh my gosh now seriously the IMF has

given us terrible warnings JP Morgan

more warnings they gave us bad warnings

yesterday now they got new and more

warnings we get some charts to let us

know how much more pain we might have

and the bank of England is losing their

mind again at the same time Putin's

already lost his mind worsening the

wheat crisis and the Baltic Sea

and folks this just sucks like we've

we need a prayer potion because I feel

like I've been having this cup every day

and and every day I'm praying and it's

just ain't getting better

but sometimes that's what we need to get

to capitulation on the market and the

bottom so let's talk about what we heard

today and how to break it apart so first

the international monetary fund cut

Global growth to 2.7 this is really

nonsense we are going to be negative in

January of last or of this year actually

they told us growth would be 3.8 and in

July they told us growth would be 2.9

now they're saying 2.7 and I wouldn't be

surprised that by February of 2023 they

look back and say yeah dang it was

negative we were in a recession I mean

really is that really that much of a

surprise the United States already has

over two quarters of negative GDP I mean

we're in a recession but the IMF went a

step further and they told us that in

2023 we'll actually feel like we're in a

recession that's what the chief

Economist said and that's kind of scary

because that's when you actually have

layoffs happen that's when you actually

lose your job that's when you actually

start panicking about oh my gosh I can't

pay my mortgage and that's when we

actually start seeing people sell their

homes because they have to not because

they want to try to time the market

folks today this morning I tweeted about

mortgage rates and I honestly I never

thought I would see this in my life ever

okay I started in real estate in 2010 it

was right before the bottom of the

market and I never ever would have

expected I seen this

the best credit score you generally need

for a loan is 740. well 740 in basis

points is 7.4 percent and that's what

the 30-year fixed is quoting today 7.4

for the 30-year fixed on uh you know if

you just Google mortgage rates that's

insane that's how you start feeling pain

for everyday individuals and this isn't

designed to be a real estate video I

know some people are going to go oh well

if you locked in a low mortgage rate you

don't have to move sure until you lose

your job

that's when things really get scary

so so much for lagging comparisons or uh

I should say lapping comparisons that is

where we look back at high inflation

from a year prior and we're like oh okay

inflation's uh you know lower now

because the IMF actually doesn't believe

us lapping High inflation at the end of

last year and beginning of this year is

going to help much

they actually believe that Global

inflation will be at 8.8 percent later

this year and will remain higher for

longer and it will end next year with

global inflation at 6.5 and 4.1 percent

by 2024. that means potentially a

hawkish Fed if we at all align with that

until 2025. forget about it 2023 U-turn

this sucks this is not going to be a bad

2022. this is setting up to just be a

bad few years

terrible JP Morgan

has come out with some more clarity and

suggested that if we end up missing CPI

on Thursday CPI comes out at 5 30 a.m on

Thursday I'll be live I hope you're

there uh I'll be live covering it the

expectation from Bloomberg and JPMorgan

is that CPI will go down to 8.1 percent

JP Morgan believes anything above a

headline read of 8.3 is going to lead

the s p to drop another five percent

it dropped 4.3 percent on September 13th

on top of that we have a little bit of a

scary chart when it comes to multiples

because we've already talked about this

idea that hey the first phase of a

market crash is multiple compression and

that the second phase is an earnings

recession and that maybe phase one is

complete that multiple compression is

complete

ah wrong

uh as you can see here these are price

to earnings multiples the little yellow

lines there show you where the multiples

bottomed and we are higher right now

than every single

prior bottom as they've aligned with

recessions

yeah so that means uh the S P 500 price

to multiples

uh price to earnings ratios

still sitting close to about 16 ish 16

17 issue looks like 17 and a half right

around there where that little red uh

red line is over over there on the right

corner

that means a potential an additional

what 10 to 10 is going to align us with

about half of those arrows so another 10

to go just in multiple compression it's

not even earnings compression yet now

hopefully earnings season that's coming

up now isn't as bad as we fear

the last two earning Cycles have

actually been pretty good uh the q1

earnings cycle was pretty decent with

the exception of Netflix and some others

uh but overall pretty decent Q2 was

pretty decent and hopefully Q3 is decent

as well because right now

any bad news is just terrible news

but then again like we said in January

good news is also bad news

the UK is also in complete disaster

the secretary of the exchequer told us a

few weeks ago that the UK the United

Kingdom is a nation of entrepreneurs and

therefore it was time to cut the top

income tax rate from 45 to 40 percent

that night he allegedly went partying

with hedge fund managers and at the same

time the Great British pound plummeted

as investors feared Great Britain was

stimulating too much with tax cuts

housing tax cuts stamp tax cuts energy

subsidies and business subsidies some of

the biggest tax cuts in over 50 years

at the same time we're supposed to be

tightening not stimulating so that's why

the currency sold off things that's so

bad that Pension funds almost went

bankrupt as their bonds and some of

their longer term assets started

becoming valued as nearly worthless

the pound crashed so low and markets

became so turbulent that the bank of

England and their emergency Financial

stability arm had to step in to bail out

that's their central bank right to bail

out the battle Market promising to buy

an unlimited amount of bonds for a few

weeks

now we thought the pain was over the

pound has stabilized around a buck 11.

yet the bank of England just said today

that it needs to expand the scope of its

Bond purchases its quantitative easing

to include inflation-linked debt to

avert what it's calling a fire sale in

bonds in other words things are getting

worse volatility is not getting better

it's getting worse you don't even have

to understand

volatility or skill or bonds all you

have to do is look at this chart and go

see pretend these are little heartbeats

and on the far right you're like oh my

gosh

this is bad

it's just bad

so this creates this triple set of bad

things because see when you're

conducting quantity of easing

you create something that is essentially

counter to inflation relection measures

you're easing by buying unlimited

amounts of bonds you're saying you're

going to raise rates to combat inflation

while you're printing money

those two kind of offset each other and

we don't really know what's going to

break but it also sets a bad precedent

for other countries because other

countries might say hmm maybe we need to

do that as well which then you have a

global Nightmare and actually trying to

bring inflation down because then you

don't because you're printing at the

same time as you're hiking

and you also create moral hazard for the

Pension funds like maybe some companies

just suck and they just need to go

bankrupt but then the problem is does

that mean millions of people relying on

pensions don't get their pensions

anymore

that's when you get too big to fail

and see we're starting to get cracks in

our own bond market as well the chief

investment officer of Boca Capital

Partners this morning on Bloomberg

talked about disruptions beginning to

occur in our own bond market this is

actually similar to what JP Morgan and

Ben Bernanke are now calling a potential

for a financial accident a disorder

these are really bad phrases this

basically means things have gotten so

bad that some weakness somewhere is

going to get exposed the 10-year

treasury at four percent is terrible for

Real Estate

and the semiconductor space is a

complete disaster 32 profit Miss on

Samsung Taiwan semiconductors plummeting

over six percent Nvidia AMD getting

destroyed and reamed but don't worry

Nancy Pelosi already sold Jamie Diamond

calling for another 20 decline in the s

p 500.

Credit Suisse and their credit default

swaps becoming ridiculously expensive

because Credit Suisse is such a bloated

company with two freaking many employees

that you honestly need to cut 10 to 15

000 employees in my opinion they're

saying they're going to cut seven and a

half thousand I don't think it's enough

you look at their financials they're

absolutely terrible we went through

their financials in the course member

live stream but you're always welcome to

join the course member live streams

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Friday evening

but folks we're starting to see spreads

on everything rise even Bonds on Apple

spreads are rising mortgage bonds are

rising and it's not just the rates it's

the spreads so it's the the difference

between the risk-free rate and the rate

that they're going for is widening and

that's a sign of concern for a broad

broader contagion in the markets

and it's scary we don't yet know what's

going to break but it's possible in the

next four months something's going to

break really bad

and it's going to lead to substantial

capitulation in the markets you're going

to have to be prepared for that day it's

going to be really bad

now no guarantees I would love to say

that we're at the bottom now but if that

day does come it will probably Mark the

bottom the actual bottom will probably

be marked by a lot of hell and the only

way you're going to survive is by making

sure you are not in margin because the

margin calls on that day are probably

going to be glorious

so stay in a margin

get out of debt and do what I've been

telling you since January I hope hope so

hope so increase your income now is the

time to grind if you're thinking oh

should I just take the weekend off no

grind grind grind get a second job make

more money cash is King right now so go

out there and grind grind grind grind

you grind hard these next two years you

know this year 2023 2024 you can set

yourself up for life just by grinding

getting yourself in the Market at

hopefully near Lowe's

and then reaping the benefits in the

long term that's my belief if you want

to talk to me directly make sure you

join the courses on building your wealth

if you're an accredited investor you

want to get into my real estate startup

house hack I think we're going to do

phenomenal things uh close to the bottom

of the market in real estate I'd love to

have you go to househack.com to learn

more and folks see you in the next one

good luck