Stock Market Trap

com craze. So first, let’s go with the Fed story because I think it’s really interesting. It’s not a market insider, it’s entitled, the Fed is quietly signaling that stocks are overvalued and a recession is almost certain. Top economist David Rosenberg says now it’s really interesting how many of you remember when Alan Greenspan was before Congress and he was talking about something called irrational exuberance? Really interesting Fed talk for everyone’s going crazy and they’re blowing the stock market up and things are going to go bad, and it’s going to go bad quick.

Stocks are interesting because as things turn, if you look back on big crashes in the stock market, there’s always an indicator when you have a little bit of a rollover and you have a little bit of a sell off, a little bit of a sell off, and then eventually it just sort of boom. And it’s like before you know it, a bunch of traders were going, oh, it’s going to get better.

It’s going to get better. And then they go, oh, no, it’s not better. And there’s a big sell off. Right? And we’re seeing a time where the bulk of these stock market indexes are held up by a handful of companies where if one of those companies comes out with bad info, and it seems like in this day and age where bad info is good info, good news, but if they really come out with something bad, all of a sudden, this can shift really fast because as that company goes down, let’s say just ten or 15%, it takes out such an amount of value from that index.

All right. So again, out of market Insider, the Fed’s quietly signaling that stocks are overvalued in a recession is almost certain. It says here investors sent the Dow Jones industrial average to a record high on Wednesday after the Federal Reserve signaled that the inflation threat was fading. Do you believe that? I don’t believe it at all. Type one if you think inflation is going down. Type two if you don’t.

People need to see your vote. It says here that it expected to cut interest rates three times in 2024. That’s actually not true. They said they penciled it in. That’s Fed’s talk for keep buying, keep buying. Keep the bubble going, okay? It says they may be celebrating too soon. David Rosenberg has warned the Fed chair Jerome Powell struck a positive tone after the central bank’s latest meeting. He pointed out the pace of price growth slowing in recent months, unemployment hovering at historic lows, and economic output proving resilient.

Let me explain this very simply. When they talk about unemployment hovering near record lows, we all know that that’s not true. We know that they’re cooking the books. When they talk about employed people, they’re no longer talking about people with gainful employment, those that have 40 hours of full work with insurance benefits, okay? They are talking about part time people, people that have part time jobs. And right now in our country, let me know down below type three, if you’re one of those people that can’t live unless you have a couple of different jobs, because your one job, your main job, is not cutting it.

A lot of people are going to the gig economy, all right? So we know that they’re not truths because they’ve got enough truth in them to believe them. But really it’s a lie, okay? It’s a false facade that’s going on. So unemployment actually needs to come down in order to quell inflation, because with less people working, that’s less people being able to buy stuff, and that actually brings prices down.

That is on its simplest form. But you don’t obviously, have the Federal Reserve come out and tell you this simply. They like to use words like Alan Greenspan used irrational exuberance while they’re selling off their portfolios and getting ready for a big market crash. And I’ll return to the crash of 1929. Three famous people were on the stock market trading floor that day. It was the owner of the trading floor.

It was one of the big bankers, and I want to say a president. But anyway, my point being is that the story goes that these three men were never seen together, really. And it was od that they were all together the morning of the big crash, during the 1929 crash, like they almost wanted to watch, very simply put, like that Eddie Murphy movie, trading places where they’re sitting up top and watching all the traders down below thinking they’re about to make a killing.

In all reality, they. Right. It says here, Rosenberg. Yet Rosenberg, a veteran economist who’s the president of Rosenberg Research, said in a pair of ex posts on Wednesday that the Fed’s latest growth projection suggested stocks were overpriced and a recession was virtually guaranteed. He goes into one of these tweets. He says Powell didn’t want to talk about a hard landing on the podium, but the Fed’s 3. 8% nominal GDP growth projection for 2024 gave us an answer.

In any event, this has a 90% recession probability attached to it, he says. The former chief north american economist at Merrill lynch questioned why the stock market was pricing in a 10% rise in corporate earnings next year when the Fed only expected nominal growth of 3. 8% in 2024. There are layoffs happening like crazy. I just got word that GM is laying off another thousand people. We’re seeing.

Let me know down below who are the latest layoffs right now. Let’s just do this live real quick and then we’re going to jump into the other story. I think it’s very important about this magnificent seven. Let’s do layoffs. I love it. Just a Google search. All right, GM lays off 1300 Michigan workers impacted as vehicles end production. This is 2 hours ago. Let’s see a lot of GM stuff.

Cruise layoffs, exosuits and why french startups are bubbling up cruise layoffs. Okay, so let’s just see what the cruise layoffs are real quick. Cruise layoffs breaking as we went to record, self driving company cruise is cutting a simply massive number of staff. So the company cruise itself, let’s do this type news. There was another big one I just saw. I mean, there’s layoffs everywhere. A venture firm’s collapse stokes layoff fears among other startup investors.

That was 2 hours ago. City angles for fewer layoffs. We know that Citi is on a big layoff spree right now. Oh, here we go. Out of Forbes magazine just yesterday, ten companies that announced layoffs this holiday season. And we all know that the holiday season is usually not when you see layoffs. So let’s, here we go. Ey. Never even heard of the company. Oh, Ernest and young.

Ernest and young began informing partners last week that the big four accounting firm will be laying off over 10% of its partners in consulting and about 4% in strategy. Ernest Young that blows me away. All right, so why would you be laying off people? Well, because you’re doing less taxes for companies. Because companies are shutting down Hasbro. We talked about this yesterday. They’re laying off 800 employees this year.

State street. Boston based state street plans to lay off approximately 1500 employees. Zuli ecommerce company Zulidi. I don’t even know how to pronounce that is closing down three offices and laying approximately 800 employees off. Spotify. We’ve heard about that. More than 1500 jobs, or 17% of its workforce. Twilio just announced that it will eliminate 5% of its staff, roughly 300 employees. Broadcom laying off an estimated 2800 employees.

We know about city Amazon when it’s really important. Yeah. Amazon cut several hundred employees in its Alexa section. Chewy, the pet supply company. Chewy laid off 200 employees. Point being is this is not a market that is strong, but what you’re seeing is the now irrational exuberance moving in. So check this out. This story out of Business Insider. It’s entitled magnificent seven mania is like the. com bubble setting up stocks to slump and recession to strike by summer.

Veteran wealth advisor says right here, the magnificent seven stocks remind one wealth advisor of the. com bubble and tech names Ted Oakley expects the stock market to slump and a recession to hit within six months. Warren Buffett’s record cash pile and recent stock sales should worry investors. He says this is very important for people to realize because most people, most, not investors, but speculators, look at the price.

The price is going up. Price is going up. Price going up. What are we thinking? I told you about a stock that I owned the other day. Which one was it? Hercules silver. Look what it was. It’s up. I think since I even talked to you guys about that, like 15 or 16%, I haven’t sold any. But here’s the thing. Why is it going up? Well, it’s because precious metals are rising because of, again, speculation that they’re going to lower rates.

Now the only question is how long would that speculation last until they go, crap? Are they really going to lower now? I do believe, ironically, they’re going to lower. And I did a video about that a couple of weeks back, three weeks ago, before the Fed ever came out and said they penciled in these things saying get ready for a fake out because it’s going to be politically driven.

This is very dangerous. This is very dangerous. But it’s what I’ve been warning about for quite some time. And so I want people to understand that just be careful. There’s a reason why Warren Buffett is pulling out slowly out of the market, why Jeff Bezos is pulling out. Jamie Dimon is pulling out. They’re not pulling out because the stock market is going to go straight up. They know that they will make more money on the downside.

I hope you guys got something out of this. Let me know what down below, what you’re doing with your stock positions. This isn’t advice to buy or sell any of your stocks. Sell off your stocks. But be careful. Don’t go all in on one thing. I’ve lost my butt on stocks before when I went all in on one thing. That’s why diversification is so key, not only between stocks, but in different asset classes.

Stocks, precious metals, crypto, real estate. There’s so much. Be well diversified. It’s not a get rich quick thing. It’s slow. Accumulate your wealth slowly and you will become wealthy forever. All right, with that being said, the economic ninja is going over to the real estate ninja channel because there’s some really cool stuff going on about shipping. I’m out. .