 Good day, fellow investors. Welcome to the stock market news with a long-term fundamental twist. Today we're going to talk about stocks, of course, and then the relation between stocks, politics, wealth and the economy and how those things fit together and why now we have to really be scared because of how things have penned out over the last 10 years. Let me start with elections. So just before elections we had Trump tweeting how discussions are going better with China, things are looking much much better and everything should have been better. And that was just before the election because stocks needed to be pushed higher and that is exactly what happened. We had a very bad month in October and since then stocks have been pushed higher. Now, why it is so important that stocks are going higher for politicians? Look at how many times has Trump tweeted about the stock market. So, on the 31st of October, stock market up more than 400 points yesterday. Stock market is massively up since the election, but now it's taking a little pause because people want to see what happens with the midterms, etc. on the Democrats, blah, blah, blah, that doesn't matter. The key thing to understand here is that it is very important for politicians that the stock market stays up and goes constantly up and that's not healthy. That is not healthy because Americans and everybody in the world would be wealthier if stocks go down and e-yields and dividends go up. Because since 1926, if we talk stocks in general, the stock market, 99.4% of the returns gained from stocks came from inflation and dividends. So the higher stocks go, the dividend yield is lower, which means that your return in the long term is lower. So actually Trump should be cheering for lower stock prices so that every month that you invest for your pension fund for whatever, you get a higher yield, more dividends, higher dividend yield, so you get a higher yield on your money. So in the long term, that higher yield leads you to owning more assets that yield even more and therefore create wealth over the long term. But the long term is not a politician's focus. And here is why, because the wealth is extremely related to the performance of the economy and people need to stay confident about their wealth, their stock market ownership, so that they can spend more. This is the U.S. household wealth. It was at $70 trillion in 2007. Now it is 50% higher at 106 in Q3 2018. So Americans are 50% richer than in 2007. And that is also what's pushing the economy higher. However, let's look at the financial accounts of the United States. If we look at the balance sheet of U.S. net wealth, we see that most of it comes from real estate and market value of domestic corporations. The total household net worth is 106, almost 107 trillion. However, 76% is in real estate and stocks. What happens if stocks fall 30%? Let's say that stocks go back just to January 2016. That is not even three years, but that's a 30% decline. The total wealth declines from 106 trillion to 94 trillion, which is half of the yearly GDP in a wealth loss. That's 10 trillion. That's huge, just from something that is valuable on paper like the stock market. If real estate gets hit by, let's say 20% because of higher interest rates, then the wealth of the Americans would decline by 20 trillion. And that's one year of GDP gone just from price differences. So this explains how fragile is the stock market, the real estate market, because those are just pumped up prices by lower interest rates, lower taxes, lower whatever. Those are prices that we have seen in October with the decline being 7% in October that are just paper value. That's not real actual value. The dividends you get month in, month out, those are the value. Stock market fluctuations is just a picture that gives you confidence and Trump is pushing on that confidence because that confidence makes people spend more and consequently push the economy higher or take more debt to keep things as they are for now. But that's not healthy. That's not sustainable for the long term. So as interest rates are going higher, we have already seen the luxury parts of the real estate market being hit. I have recently received an email from a developer real estate investor in California that is saying that the luxury, the high end market is already suffering that there are a lot of renters, high leverage renters that are defaulting on their flipping or renting mortgages. So the market is already getting weaker at spots here and there. Sooner or later the whole house of cards is about to fall because when you push the wealth, the stocks, and when you make all that just paper money, not real value, and then you push the economy on debt, et cetera, et cetera, then it's not really actual value. It's something that can fall like a house of cards. And that's my message for today. So think about the risk and reward. Investing is all about risk and reward and putting that into your personal life perspective. So stock market, real estate, the economy is in a bubble. How does that affect my personal life, my finances if this, this, this and this happen? Because nobody knows what and when will happen. We can only be prepared for what might happen and then think again ahead. Okay, what do I do if this happens? What do I do if stocks crash? What do I do if real estate crash? So thank you for watching. Think about what would you do in case, in case, in case, and that's the best message for investing now.