 Okay, so what I'm gonna do guys, I'm gonna clean up the lens. I'm like a start All right, what's up everyone happy Monday, so a lot of topics to talk about today But before we get started I want to remind you guys about our meet-up coming up this weekend Okay, so we are hosting a free meet-up in California This is your opportunity to meet and network with other traders all around the world You get to meet me you get to meet bow you get to meet our MIC team It's gonna be in a wide open park So there's gonna be no COVID restrictions. All you have to do is register at my investing club comm slash meet-up So go to my investing club comm slash meet-up. It's gonna have the location. It's gonna have the hotel info It's gonna have navigation parking everything. So don't ask me the day of where the meet-up is don't ask me Where you could stay this that it's been on my investing club comm slash meet-up for months now So the meet-up is this Saturday 11 to 3 p.m. Whether you're in California or maybe around I'm flying from New Jersey all the way to California for the meet-up guys This is your opportunity. So that's that number two is let's talk about the market crash and everything So if you guys have not been living under a rock crypto has crashed 50 percent The indexes have crashed about 15 to 20 percent and overall stocks have been crashing 50 to 60 percent So what the hell is going on right? What is going on? And there's a couple things that factor into this, right? So keep in mind guys, I am not an economist. I did not go to school for Economy this that I'm just basically looking at what I see happening, right? So the number one thing is the Federal Reserve, right? So as you guys know when we went into the pandemic in 2020 the Federal Reserve's solution to fix everything Was to print money and what ends up happening is when you print more money and put more money into the money supply There's inflation. That's why car prices are up 20 percent. That's why gas prices are up That's why watch prices are up. That's why everything is shooting through the movie because of inflation There's more money supply into the market So what ends up happening is when there's more money slide everything goes up right everything even stocks go up now The problem is to combat inflation right to combat inflation The Federal Reserve has been saying that they're gonna raise interest rates So again to keep this very very simple bare bones right now borrowing money has been free Okay, so whether you're trying to buy a home or mortgage the interest rate is extremely low very close to zero You're trying to get a car loan interest rate is very low close to zero if you're trying to get any loan at all It's pretty much free right so the government is giving you free money to use and abuse However way you want it and what has happened is that's gone out of control. Okay, it's gone out of control because Everything has gotten up due to inflation. So the Federal Reserve the people that control the money the people that are Handling buying the equities buying this that to stimulate to do liquidity to do all this shit They're waking up and they're saying you know what? Inflation is a big issue and because inflation is a big issue We have to raise interest rates if the Federal Reserve follows through with what they are saying and Raises interest rates people are not gonna be paying five ten percent for a mortgage People are not gonna be going out and spending money on this stuff So the housing market will crash all these tech companies that need low interest rates to make a big profit All of a sudden if the interest rates go up their profit goes down fucking market goes down stocks go down So raising the interest rates will help battle inflation, but it will fuck up everything else So what you're seeing now in the markets in crypto everywhere is people preparing? For the Fed to raise interest rates and they're hedging they're selling they're shorting they're protecting themselves in case the Fed Does follow through in my opinion guys again. This is not stock advice This is not anything more than my opinion is the market is reacting and pricing in the Federal Reserve raising rates Right, so this is gonna reward people that have cash on hand that could buy things cheap This is gonna reward people that have been waiting out in my opinion guys I have no idea what the Federal Reserve is gonna do I got no idea as you could see they hinted that they're gonna be raising interest rates and the markets crashed What happens if they actually fall through with it? Are we gonna crash more? We're gonna crash for a couple years. Who knows right, but just based on observation This is all based on interest rates if money is free Low interest rate 1% right people are gonna go out and fucking spend it They're gonna go buy houses. They can't afford they're gonna go buy cars They can't afford cuz America is built on debt America is built on borrowed money Okay, so once that borrowed money stops happening Once the Federal Reserve the people that are pumping the markets stop pumping the markets The inverse is gonna happen guys. So you have to be prepared again I think the Federal Reserve has a meeting on Tuesday or Wednesday to decide what the hell they're gonna do or what the deal is I'm sure a lot of people are hedging into that meeting are protecting themselves into that meeting But the truth of the matter is that yes inflation is out of control Yes, there needs to be something that is has to be done to fix it And this is what's been happening, right? So you could only print money for so long You could only pump the money for so long You could only do that for so long and then on top of it guys on top of it Do you guys know what margin and leverage is right? Do you guys know what margin and leverage is so? Just to keep it very simple margin and leverage is borrowing money You don't have so imagine the government is giving you all this money and then on top of your borrowing even more money So for example a lot of these I'll start with crypto a lot of crypto Brokerages crypto funds crypto exchanges Sometimes they'll give you fucking four to ten times leverage. Okay, so a lot of crypto a lot of the buyers and crypto are using out Normal amounts of leverage. They're using so much leverage that they it's it's it's pretty much ridiculous guys So for example if you're using ten times leverage if crypto goes down ten percent Bro, your account is liquidated. All it has to do is go down ten percent. Your account is liquidated That's the fucking problem. So what's been happening in the crypto markets is all the Overleveraged people that have been using borrowed money Money that's not theirs to buy crypto Have been getting liquidated against their own will because of margin calls Okay, if I have a thousand dollars and the crypto exchange is giving me ten times leverage That means I have ten thousand dollars. Okay to use to trade with if my crypto asset goes down ten percent on that $10,000 that I invested all of a sudden I'm down a hundred percent of my money And that's what's been happening forced liquidations. So now take that on an even bigger scale, which is the stock market, okay? Stocks like Tesla stocks like I don't know L CID stocks like maybe even fucking Apple M's or whatever it may be guys On top of that all that stuff is on borrowed money. So instead of stocks I mean instead of crypto being ten times borrowed money, you know, the market is maybe four times borrowed money, right? So if the shit goes down 25% Essentially you're going down to fucking zero, right? So this is just a lesson guys and this is just a reminder to be very careful with leverage and be very careful with borrowed money If investing for the longer term do not use leverage only use fucking cash because the only way you'll lose if a stock goes fucking bankrupt Right, whereas if you're even using two times leverage if a stock goes down 50% You're fucking dead everything during coven went down 50% and then rebounded 200% So you would have been destroyed if you were using leverage, right? So that's the problem in these markets, right? It's it's almost a domino cascading effect, right of leverage and borrowed money being liquidated against their will That's why you see these articles a trillion dollars or a billion dollars was liquidated from coinbase accounts Yeah, a billion dollars disappeared because people were using fucking ten billion dollars of borrowed money to fucking trade with right? And that's why you're seeing these domino cascade effects where there's only sellers and no buyers because everyone's accounts are getting Liquidated right same thing in the overall markets guys So in the overall markets you have your sugar daddy the Fed not buying stocks anymore Your stocks are tanking because you're on fucking leverage and then on top of that interest rates are gonna go up And these companies aren't gonna make money you saw what happened with Netflix Netflix is down fucking 60% from the highs From the highs 700 and said like 350 today, right? So you have to be very careful in these markets guys So the reason why the market is correcting his interest rates borrowed money It's all this stuff and you have to keep in mind That Everything can change or everything can get worse when the Fed meets this week Maybe this was the Fed's plan all along to show people what would happen if they raised interest rates Maybe this is the fed's way of coming in and saving everyone with some more stimulus package The way I know the world works is it works on fear guys the more fearful people are the more power The people in charge get because they use that fear to manipulate the people right So for example during coven when everyone was bugging out and the markets were tanking 50% The feds solution was to make trillions of dollars appear to pump up the markets by doing that the American people got $1,500 each and Jeff Bezos and Elon Musk because the stock price went up They made hundred two hundred billion dollars So at the end of day guys when these when the Fed is printing stimulus when they're trying to help the normal person All the money keeps going back to the top That's why when the Fred fed printed money the Gucci store was sold out with everything because everyone took their stimulus And they went to the fucking Gucci store. You can't even believe that shit, right? But that's what happened, right? I go to these designer stores like Louis Vuitton and Dior and they make me wait 20 minutes outside Because there's so much demand because everyone has fucking money, right? So eventually all the dumb ass motherfuckers are putting that money back to the people on top, right? So anyway guys point is do not use leverage on Your longer term positions the way that I use leverage is to be in multiple positions at the same time, right? So I don't use it to go all in on one I use it to be in multiple positions at the same time that helps me, right? Well, people on crypto is doing some people are at a 100 times fucking leverage Stock or crypto goes up 1% down 1% their account is liquidated liquidated So we've been seeing mass liquidations all across crypto because of the extreme amounts of leverage being used Okay, and there's no Fed to come in and save the fucking crypto market yet yet But for the overall markets guys, it all depends on the interest rates The Fed could easily come out this week and say, you know what? Inflation is a lot crazier than we thought we're gonna raise the interest rates even faster And if that happens you think you saw a crash you didn't see shit You didn't see shit or they could come back and say, you know what? We got shit under control everything's back to normal market's gonna fucking shoot up, right? Who knows who knows gambling at this point is gambling until the Fed decides what they're gonna do And these people are very smart guys to be the chairman of the Federal Reserve You don't have you don't go to community college for that. You don't just fucking happen by accident You got to grease the palms and you got to be in bed with the most powerful the most rich people in the world And if there's anything I know the rich will continue to get fucking richer And because the rich will continue to get richer my bet long-term is that I think I don't know again speculation I think they're trying to fucking do another stimulus package Especially based on the presidency based on the midterm elections I think another stimulus package is not out of the fucking question, but then that's just fucking speculation So again guys how to profit in this market, right? How to profit in this market? Well, if you want to just keep it very very simple if you have a heavily tech-bias Portfolio, let's say you own Amazon Facebook Tesla Apple Well, the way to protect yourself is you could have those longer term stocks and maybe short the indexes as a Hedge, right short the indexes as a hedge That way if it goes down, you're fucking protected, right? You're fucking protected the thing about the market is guys The thing about the market is it's okay to hedge yourself and lose a little bit of money rather than blowing up your account, right? So as you can see the market has been fucking tanking because all the people with big money are probably shorting the market To hedge themselves against their long positions. Okay, so keep that in mind guys right now Mark is fucking crazy markets crazy. That's it's Oversold yes, the market is oversold But oversold doesn't mean anything if all of a sudden it costs you 10% to get a mortgage Oversold doesn't mean fucking anything if all of a sudden it costs you 10% to get a car loan Doesn't mean anything if it costs you fucking 15% to get a fucking building loan America is built on debt the less the interest rates are The better it is for the world the fucking problem is that the Fed printed so much fucking money Then now everything is devalued right everything has to come kind of come back to normal, right? So again, I'm not an economist I'm not a genius. I'm just telling you what I've been seeing and what I've been Observing from this entire world is to be honest guys America's 30 trillion dollars in debt I read a I read an article somewhere that said America is like the guy that's wearing all Gucci But has a ton of credit card bills, right? That's what America is and one day one day the world is gonna wake up and say hey You gotta fucking pay your credit card bill and America doesn't have the money to pay off their credit card bill So their solution is to keep printing money because no one wants the entire market to crash on their watch Right. There's mid-term elections coming up. There's all these elections coming up No one wants to go down in history as the chairman the president or whatever that crashed the market They're gonna keep pushing the fucking scam as long as they can until the fucking ends, right? So in my opinion guys in my opinion, I don't know what the Fed is gonna do, but Raising the interest rates even the thought of it is pricing into the market right now In reality, even if the Fed says they're raising interest rates Maybe the market is already priced it in that it doesn't matter anymore But just keep that in mind you guys keep that in mind the market will be irrational for a very long time, right? A very long time. So for me personally When the markets are down 20% I'm not looking to short these stocks anymore. I'm looking for dip buys on Extremely broken down names. Obviously, that's not what I'm used to obviously. That's not what my expertise is in but Just based on the fact that there's probably more buyers in the world and more short sellers in the world I think that when the market does turn it's gonna be a pretty big turn And also you got to remember guys that a lot of the sellers in this market are not they're doing it against their will The brokers margin calling them the brokers liquidating them the brokers fucking burning their accounts So just keep that in mind. Ideally we get some more small cap runners Ideally we get some more crazy stocks because those don't have to do anything with the market But hey guys, I mean we're in a market cycle now where technically technically it's kind of like a bear market Right. We're technically in a bear market shit stocks have old Stocks have tanked 50% indexes have tanked 20% There's not as many runners so technically we're pretty much in a bear market right now And it's pretty interesting that the media isn't really covering it because I'm sure it's gonna make the president look bad But hey guys, that's that's kind of where we're at now And you know bow has traded a bear market bow has traded this type of action and keep in mind guys We make money based on speculation right so speculation money enters a small cap market speculation Money enters all that shit and if the overall markets are taken and people aren't making money if AMC is not going up If GME is not going up the speculation money is fucking dead. That means that small caps are dead. So Yeah, guys, just want to kind of keep this video short and sweet. I want to remind you guys of our meetup on Saturday 11 to 3 you must register at myinvestingclub.com slash meetup Keep in mind anywhere in California requires a 48 hour COVID test or proof of vaccination. It's not our rules It's California's rules, but we'll be in a wide open area. We'll have some fun. We're gonna have some food We're gonna have a great time guys very casual very fun And I will see you guys at the meetup if you have any questions Let me know and be sure to tune in to bow's Instagram live tomorrow at 11 a.m. Market time So hopefully this video helps if you