 Good day, fellow investors. Welcome to the stock market news with a long-term fundamental twist. Today, we're going to discuss the Fed's data-driven decision-making, inflation, how they see it, and how the reality actually is. But before that, let me just give you the overview for the week. I'm researching Asian stocks. So on Sunday, we'll discuss BYD, the Chinese Tesla that's owned by Buffett. I'll make a research and analysis and overview and the investment thesis. On Tuesday, I'll discuss Minebia Mitsumi, a Japanese precision parts maker from ball rings, from motors, small motors, etc. That's a very interesting long-term play on what's going on. Again, a risk-reward investment analysis. Tomorrow, as there have been a lot of questions about my platform, I want to explain what I do in detail, what's the research, how much research goes into what I do, and how just parts of that come up in videos, like you will see with the Chinese and Japanese stock that I'll analyze. On Thursday, I'll discuss owner's earnings from the 1986 Warren Buffett letter, owner's earnings, free cash flows, and what we as investors really have to focus when it comes to earnings. That will lead into the next stock market news. As we are entering earnings season, I want to discuss something very important that's macro development in the earnings system, which are margins. But that's about to come, so subscribe, click that notification bell so that you see which video adds value. You see that in the notifications, which video adds value to you so that you can watch that and not miss on the important videos. Let's start with the news today. Now, the Fed Powell recently held a speech and he said that their decision making is data driven. They always look at data and then they make the decisions, how inflation is okay. And thirdly, he said how this, what they are doing is not quantitative easing. And I want to discuss, A, how what they are saying and the data they are looking, how they are looking at it, and what they are doing from their perspective, that's one thing, but from your perspective, it's a completely different thing. Because they are looking from a statistical perspective, you have to look it from an investor perspective. And how does it impact me? That's the key to differentiate between statistics and impact on your life. And this is what this news is going to be about. Let's start with the Fed's speech and let's say overall overview of what the Fed is doing or let's say they are saying they are not doing it. So the Fed recently, just a speech quickly, he said, we are doing data driven decisions based on data, then what they are doing, they are increasing the balance sheet. That's not quantitative easing. And they said that what they are doing can change all the time. So it's not fixed. And they will change to help the economy. So let's see how this fits. First, there is a lot of expectations that U.S. interest rates will go negative. And they announced that they discussed that in their minutes and in their meeting how the market is expecting the Fed to lower rates below zero. And that's actually not what they want to do. So they are discussing how to make it, how to show to the market that they don't want to do negative interest rates in the U.S. But that's again something they are just saying, which might be opposite of what they were, what they will do. On the economy, it is in a good place. Inflation is a little bit lower, but okay. And the risks are there, increased a little bit due to trade concerns, but the economy is still great. Now I want to discuss something. Let's start with the quantitative easing. So this is the Fed's total asset balance sheet. So if the Fed sprints money, the balance sheet goes up. And if the Fed withdraws money from the system, the balance sheet goes down. And they started withdrawing money in 2018. They didn't buy new treasuries. And after a year and a half, it led to problems, especially on the short-term market. And now you see this small little blip up where they started again buying treasuries, putting liquidity in the market. But they are saying this is not quantitative easing. This is just a journey for liquidity in the short-term overnight markets. It doesn't matter where they do it, how they call it. This is, again, they are back to quantitative easing. So what has the Fed done? They first started to increase interest rates. The economy cannot sustain higher interest rates. Your variable rates, mortgages, would crush consumption, less cars bought. And we are already seeing that the repercussions of that in the economy. And as soon as they started to take out liquidity out of the system, there were liquidity crunches, short-term, but very important. So the Fed cannot increase interest rates. The economy is already so high on low interest rates and free money that it can't be change. And the Fed is very aware of that. So they have started to print money and they have started to lower rates again. How low will it go? How much money they will print? Nobody knows. But what's important for us is to separate between the statistics and where we can take advantage or protect ourselves. Let's look at the stock market in relation to what the Fed is doing. So if I compare the stock market and the Fed's balance sheet, you can see as long as the balance sheet was expanding, stocks were following. So more money into the system, asset prices go up. And then when the Fed started to cutting the balance sheet, lowering the amount of money, liquidity in the system, however you want to call it, I know there will be comments about the details about how that is called. But I'm looking at how that affects me. And when they started lowering the balance sheets, lessening the amount of money, trading stock markets got itchy. And we have seen the 2018 Q4 crash, December big crash. But then as the New Year turned 2019, there was already signals that the Fed will stop with higher interest rates. They will actually lower them and that they cannot reduce the balance sheet at the same rate. And therefore in 2019, stocks in anticipation of what might come rebounded and went higher. And that's exactly what the Fed did. We see now the sharp increase in the balance sheet and we see a decline in interest rates. Lower interest rates help stocks, more money into the system, helps the economy, helps especially those assets that are in limited supply or that are related to interest rate. And that's something you have to understand very, very well. There is inflation that everybody says it's very low, but that's just inflation as a whole. You as an investor, you care about inflation in real estate, inflation in asset prices, inflation in healthcare, inflation in education, depends where you are in your life. That is what matters for you. And that's a big, there is a big divergence between just saying inflation is low, it will never be higher and actual reality. Let's dig deeper. So everybody is saying that inflation is very, very low because of technology. So new technology, low interest rates, increase the competition, actual prices remain subdued, emerging markets growing production, lowering prices. And consequently, inflation, there is no signs of inflation acceleration during time. But this is the aggregate, this is how it's measured. Let's look at reality. Let's look at those things that are in limited supply. We have already seen stock prices surge quadruple over the last 10 years. So limited assets really are in a big, big inflation. Stocks didn't go up because something fundamentally changed. Stocks went up because there is more money and asset prices became inflated. If we look at something that's again limited in supply Manhattan, luxury demand Manhattan, it's an island. You cannot build another Manhattan. And you can see how rents, home prices really exploded there. And that is what shows inflation. Amsterdam home prices again exploded. So that is inflation for me. And the message is very simple here. You have to focus on owning assets that are in limited supply because those are the real valuable things. Because competitive advantages, businesses that have a mode, whatever happens around that business, people will still go to that business. The business can increase prices if there is inflation. And the value of that asset of that business will become bigger, bigger and bigger. Limited supply, real estate, assets, businesses that deploy that supply things that are in limited supply. I like miners, for example. I like fertilizer producers that have assets that have a competitive advantage over all others. And if you hold those assets over the long term, you see those segments really spike thanks to inflation, even if other things keep aggregate prices subdued. So that's the message for today. Don't listen or listen to what the Fed is doing, what others are saying about the economy, about the general, about the macro, but try to diverge between what isn't important for you and what really impacts your life. So the message today is inflation. There isn't any, but there is a lot of inflation in certain segments. On the Fed, they cannot increase interest rates and that will remain so until the whole world loses control and then we will see probably inflation and hyperinflation. When that will happen, nobody knows. All that we can do is focus on assets, real assets that are in limited supply that have a competitive advantage and have a mode, how would Buffett say. Thank you for watching. If you liked this approach to investing where we look for limited things in this environment of unlimited money supply, please subscribe, click that like button, comment below, check my stock market research platform, check my website for more articles, more research in that overview of my portfolios if you're interested in those assets, if you're interested in diversifying into those, let's say, mode-like businesses. Thank you. Looking forward to your comments and I'll see you in the next video.