Apple JUST Ruined EVERYTHING.

hey everyone me kevin here boy oh boy

you're gonna want to get life insurance

after this one by going to mckevin.com

life if you had tendees today and they

got wiped out because of what happened

to apple here's why what happened to

apple today is actually good news and

that's what we're going to talk about

but first in case you haven't heard

about what's going on with apple let's

go ahead and give it to you apple has

officially joined the companies that are

planning to slow hiring this obviously

follows other companies that we've also

seen announced slowing hiring or

potentially even announcing a warning of

layoffs like mark zuck who suggested

layoffs at least two or three times so

far this year over at facebook meta uh

tesla

laying off obviously 10 of their

workforce their their white collar

workforce not their factory workers

google

amazon slowing hiring snapchat vimeo

just announcing today is slowing and

hiring uh amongst obviously a host of

other companies whether they're real

estate companies banks laying off

mortgage departments lots of layoffs and

and uh job losses are coming now still

at the same time we somehow gained 370

000 jobs last month and unemployment

claims while they're ticking up they're

actually not really exploding so it's

kind of weird but in case you're

wondering why your attendees went away

today it is because of apple because

they're warning uh you know

these these kind of leaks come from

sources that aren't supposed to be

talking on this but it's been confirmed

by multiple folks now according to

bloomberg multiple leaks that talk to

bloomberg are confirming that apple is

planning on slowering uh hiring and

spending at least on certain teams

because of a potential economic slowdown

and uncertainty now the company's

apparently still reportedly uh planning

on releasing their major product roadmap

including their vr headset in 2023.

apple's down 16 this year in line with

the s p 500

but a lot of folks are wondering is this

potentially just the start are companies

starting to actually see

real slides and sales and are companies

realizing that uh oh yeah we're not

gonna meet next quarter guide and we're

certainly not going to meet full year

guide and i think that's what's creating

a little bit of fear in markets right

now that uh next quarter not only are we

going to see that 8 billion supply chain

hit that apple had warned us about but

possibly also other misses on top of

that so that's creating some uncertainty

and of course when apple moves the

market moves and so the broader market

is is just becoming a little bit more

shaky and fearful about okay yeah we're

probably going to go into an earnings

recession and a growth recession if not

a full-blown recession now before i talk

about why this is actually good i just

want to define those really quickly

remember the differences

a real recession is generally two

negative quarters of gdp and then you

got to get a bunch of economists

together to actually define it as a

recession which just happens like many

many months after the actual recession

which is kind of annoying and stupid a

growth recession is just when you have

growth declining and an earnings

recession is when you have earnings

declining but you're not necessarily in

an actual gdp recession right so your

country can be in recession companies

can be in recession company growth could

be in recession so many different kinds

the point is things are slowing down

right and this all comes after tim cook

already said they're seeing inflation

they're fighting inflation with higher

freight spending uh and this is kind of

a rare thing for apple apple generally

doesn't take the foot off the gas you

know they did in 2019 when iphone sales

were slowing down they did a little bit

in retail stores in april

but i think the broader implications

here and this is in addition to now

breaking news that it looks like there's

going to be another lawsuit over

antitrust violations against apple we'll

talk about that in just a moment uh but

uh there's some broad implications of

this and i want to talk about those

because they really affect all of the

companies that we're looking at and

investing in of course uh no video would

be complete though without reminding you

about that fifty percent of coupon code

that expires soon and i'm on my way over

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howdy

okay so uh broader implications that we

want to take away from this one

over hiring look companies just straight

up overhired during the pandemic it is

what it is

there was essentially employee hoarding

going on there was such a massive

shortage for employees that folks

overhired just to have employees because

it would be better to over hire and then

thin later as necessary than to not have

the staff you need to launch this is

actually a very common business strategy

it's focused on growth growth growth

growth growth growth and when you need

to you can always trim you can always

trim it's just really really really

difficult to grow a business if you

don't have enough talent or you don't

have enough resources yeah you could

always i hate to say it but you can

always fire people and and that's that's

an impression that companies tend to

have and it's very sad but it's just the

reality of a capitalistic world you want

to attract as much talent as you can uh

and and you want to grow into using that

talent you want to expand beyond needing

that talent to where where now you need

to hire more talent uh and then if a

recession comes sorry labor is a

variable cost economics 101 okay fixed

costs that's like the lease or the

mortgage on your house or your building

that you're working out of or whatever

but uh in terms of variable costs for uh

for employees

your variable cost which is very similar

to an airplane an airplane is a fixed

cost

gas and the fuel for that airplane is a

variable cost you don't fly you don't

spend money on gas so you want to save

money maybe don't fly as much

you want to spend less money on your

company have less employees and

then what can we actually finally start

doing finally we can start increasing

productivity and this is where the

positive comes into my opinion now we're

gonna go for a walk cause it's getting

really hot here so you're gonna get a

little close up here for a second by the

way quick mention how many of you have

actually seen this check this out

single flavored

haribo bags you just pick the flavor you

want and and you can buy them here in

germany these are also much better

because they're made with real fruit

juices rather than all the fake stuff i

like them so much more so much better so

much tastier but anyway uh so why is

increasing productivity so important

well here's the thing and i've been

saying this actually since the pandemic

one of the great things about recessions

is they allow us to go into great

companies and basically weed them out

you could go in and get rid of all the

slush all the people who aren't really

working hard who aren't motivated who

don't really want to be there who are

kind of just there collecting a paycheck

investing that's actually a strategy

it's like get into google and just let

your stock options vest and chill don't

shake the bush don't do anything crazy

just let your stock options vest and get

rich because that's actually what a lot

of

people do and a lot of companies do is

they'll get job offers for like 200 000

salaries but then they'll get these

option bonuses of like 500 grand over

the next three years it's insane this is

why like if you could get into tech in

these kind of worlds in terms of being

an employee oh there's so much freaking

money in it like take it right uh oh my

gosh there are actually tesla chargers

there how cool i'm gonna walk over the

tesla chargers this is the first time

i've actually seen tesla chargers in

germany this is really cool uh on my way

to munich but anyway so walk over there

but uh this productivity waiting that

we're able to do this is a very good

thing so the covet pandemic allowed the

first set of weeding everybody got laid

off well i shouldn't say everybody got

laid off but a bunch of people got laid

off and the idea was don't worry this is

temporary we'll hire you back when uh

when the pandemic's over

the companies come on let's be real they

only hire back the people that they need

and the good people right

well then demand went through the roof

and so they had to over hire so you get

one weeding round the first weeding

round lets you get rid of you know 20 of

your employees that are just slush that

you don't want

then you hire a bunch of new employees

and then you get to go through the

weeding process again and you cut 10 to

20 percent of the jobs

now

we will look back at this

i hope i remember to go back to this

video in the future there are the tesla

chargers oh cool german tesla i should

be the thumbnail right there i hope i

look back at this in 10 years and i

think it's so critical if you're a

long-term investor right now

the companies that you want to invest in

are the companies that are doing the

layoffs they are the companies that are

slowing down what apple and tesla are

doing smart it is smart to lay off

i hate to say that but if we go into

uncertain times the best thing you can

do as we are clearly the best thing you

can do is take advantage of your second

round of weeding and now

in five to ten years

we are going to be looking at some of

the most efficient companies ever to

exist

and america i think will be the front

runner

of the most productive and efficient

companies in the world so personally

when i saw this news about apple slowing

spend on hiring

i was excited but it's not just because

of the productivity and i want to talk

about the lawsuit briefly it's also

because we know that the federal reserve

is literally trying

to get joblessness to happen because

what they want they want these layoffs

because if they have these layoffs then

those people have to go get another job

when those people go get another job

what do they do they reduce job openings

then all of a sudden we in instead of

having 1.9 job openings per uh

unemployed person we end up getting

closer to equilibrium

which would be one job opening per one

unemployed person right that's what the

fed told us they want to get to so they

can crimp down inflation by doing that

bingo then then that's the goal and

that's what they're accomplishing so

these headlines about slowing housing

about uh layoffs are exactly what the

fed want

and the more we see these headlines the

less likely we actually are to get paul

volkard and this is why inflation

expectations are coming down so across

the board this is great news now what's

this news about these uh

this new lawsuit so okay in europe

there was a lawsuit against apple for

apple pay because uh a certain payment

processors thought it was not fair

that apple

basically prioritizes apple pay

over as a payment as a method of payment

no matter what the credit card is that's

being used

over like paypal or venmo right like if

you double click on the side of your

phone all your apple pay credit cards

show up which could be the apple credit

card or could be another credit card but

it's not paypal or venmo or the other

things and so in europe there were these

antitrust claims that basically apple

should allow you to double click on the

right side and maybe you set the default

to paypal or something else

well it looks like now

card issuers are filing an anti-trust

lawsuit against apple in the united

states

i don't know yet what the details of

this are but i'm going to guess these

are going to be uh companies like

i mean quite frankly it could be

companies like affirm paypal

venmo maybe even visa mastercard i don't

have

all the details yet but let me see if

they load here

the complaint was just filed san jose

california

and the iphone maker exercises its

market power in the device markets by

requiring that customers of its mobile

devices also acquire its mobile wallet

apple pay well that's not necessarily

true and prevents customers from using

competing mobile wallets capable of

offering competing tap to pay solutions

uh okay uh the according to the

complaint by affinity credit union yeah

i mean that's kind of the argument again

that you can't like tap to pay with

paypal

as easily by double clicking the button

you have to actually go into the app

right

long term is this a big deal for apple

no uh worst case scenario they have to

put a little button in if they lose

but they'll just fight it to the end in

the meantime again

overall i'm actually bullish on apple uh

you know if i could pick some of it up

at 135 again bring it on it's at 149

right now i sold mine at like 180 which

i was happy about but also not really

happy about because i love apple is one

of the first stocks that i bought ever

in like 2008 and nine

which was pretty epic didn't have a lot

of money to buy with back then but i did

buy apple which is great and i kind of

just dc8 over time but uh anyway i gotta

go

kids are getting mad at me thanks for

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