 Good day, fellow investors. Welcome to the stock market news with a long-term fundamental twist. Three extremely important pieces of information over the last few weeks were the increased U.S. budget deficits, the Fed getting ready to lower rates over the next months and getting ready to do whatever it takes to stabilize economic growth and to keep the economy growing no matter what happens and the ECB doing the same by saying that they will print money, buy assets, do whatever it takes to push up the economy and prevent a recession, which changes the normal historical things where you have had a boom and bust in the economy and then the bad dies, the good survives and grows. So financial engineering to the max and we have to see how will that affect our investments. The key is not to be the turkey. The turkey story is very nice. The turkey is born and every day it gets more and more food, it's happy, the turkey's well-being constantly grows. The turkey thinks there is absolutely no risk because the butcher is feeding him more and more and happiness goes on as we have, similarly with the current situation in monetary policy, there is more and more money, interest rates keep going down, everybody's happy, everybody's buying new houses, new cars and traveling around the world, everything looks great. However, there is one problem. Governments think they can spend money and not care for deficits, the central bank heads will do whatever it takes to keep things going well by printing more money and we all feel like turkeys. There is only one minor issue. At some point in time the butcher that's feeding the turkey decides to prepare it for Thanksgiving. Similarly, the money printing game ends because it gets out of control, the problems escalate and this has happened a thousand times in history and then currencies implode. The same happens to the turkey before Thanksgiving. Now, the key for investors is not to be the turkey. You don't want to see your portfolio end up like the turkey ends up before Thanksgiving and the key here is to simply position yourselves to take advantage of what might happen, of what will likely happen and we've discussed this also with Delio and his monetary policy free projections and I just want to give you a little tips on what you can do and why you should do that with your portfolio. On the content, so just quickly we'll discuss the deficits, what's going on, why it is important, lower interest rates and money printing, how will that affect things, how to invest, just be like the government, have debt but have smart debt, good debt. The S&P 500 might go to 5,000 points in 2030 but index fund investors will not be happy. What to do buy value like Buffett did in the last 50 years. So on US budget deficits, this is probably the most important piece of information over the last two weeks. US budget gap balloons to 739 billion despite tariff revenue. So if we look at the congressional budget office and their projections for budget deficits, we can see that the budget deficit will be larger than one trillion per year in the next one, two years. This means that the US total public debt will continue to grow at extremely fast rates and if we check it over the past 40 years it has increased 22 times. Consequently the S&P 500 has increased 28 times, very interesting correlation. So from my point of view spending more than what you make can only last for a while, sooner or later the budget will come. Now what will happen? Usually the currency is debased which makes it very easy to pay off the debt, currencies are worthless and then the newer cycle, the new economy starts. When will that happen? Nobody knows but what we can do is position ourselves now to protect ourselves in case that happens but still get a good return in case that doesn't happen. Also we have monetary policy, central banks, the Fed, the ECB doing whatever it takes to help the governments to help those in debt to keep the economy growing because everything is based on debt, debts are skyrocketing and therefore central banks say we will just print money and fuel that debt bubble into oblivion until they lose control, inflation comes and then there will be trouble but until then we have this. So we have Powell saying how Fed holds right steady but hints at future cuts if outlook doesn't improve. Central banks rate setting panel says it will act as appropriate to sustain an expansion currently clouded by trade fights. So they will do whatever it takes to sustain economic expansion and prevent a recession. Mario Draghi from the European Central Bank is closer to pumping more monetary stimulus into the economy even if it is crazy what they are pumping and they have pumped in the last 10 years and they say additional stimulus will be required, will keep interest rates low and even lower than other tools can be used as renewed asset purchases even if that means raising self-imposed limits on how much it can buy. So forget about those limits this will escalate and become really crazy. My conclusion is simple over the long term forget about the value of money, forget about the currencies sooner or later inflation will escalate and you want to be protected about that and if you're looking at real estate prices, if you're looking at real fixed assets of value you see those prices that have already escalated in line with the money that has been printed. We are talking stocks, we are talking real estate everything that's fixed is going to the moon and it will continue to go to the moon. Now how to invest to not have your portfolio end up like a turkey before Thanksgiving? Well you simply have to be protected. Governments have debt, corporations have debt, everybody is in debt so what will the governments and the monetary policy do? They will bail them out and they have shorter term debt so you have they have to be bailed out but what we can do and we can use good smart debt we can take a 40-year mortgage with a fixed interest rate and have that as a hedge against inflation because if let's say you take a mortgage and then over the next 10 years the average inflation is five years your mortgage will still be the same but the value of your home will increase what 50-60% even more thanks to inflation. Similarly your salary will increase but your mortgage payment if it is a fixed rate will remain equal so whatever happens if there is inflation you're already hedged when having a mortgage plus the current interest rates are ridiculously low so that it really pays to take a mortgage and buy assets even if those are overvalued further I would say that it's more likely that the SAP 500 is at 5000 points in 2030 than at 2000 so there are many waiting for a crash but that crash might never happen because DCB just said and everybody said we are going to be buying assets we're going to lower interest rates we're going to push more money into the economy and that money consequently ends up in producing assets like stocks and real estate so you might never see the SAP 500 below a certain age certain level even if it is logical that it happens but markets can remain irrational much longer than you can remain solvent so think how it fits your portfolio and I'm saying that the SAP 500 might be at 5000 I don't know what will happen I have to be prepared for everything and index funds investors will not be happy because if we see high inflation stocks go up but not at the same rate as inflation you will actually have a real loss even if the SAP 500 is at 5000 points what to do to prevent having a real loss but the nominal gain even if stocks explode over the next decade is always buying real assets if we look at inflation many think it will not go anywhere but look at 1964 the early 1960s inflation was below 2% everybody was complacent that there will be no inflation and then it went up to 13.5% with the average above 5% for the coming 20 years this is something that might happen you never know when it will happen because it's not predictable and it gets out of control easily my point is that focusing on value investing like Warren Buffett did over the last 50 years that have had significant inflation you can do better than the SAP 500 because you are buying value and you can do better than the SAP 500 even if it doubles in the next decade the SAP 500 did grow up 28 times since 1981 by but Berkshire did just a bit better it's up a thousand times since 1981 what's the difference the difference comes from focusing on value focusing on risk what can go wrong whatever happens what can go wrong you're looking for low risk high return investment so really buying value when it is available and then you are looking at business yields business returns you're looking at modes quality businesses that can increase prices if there is inflation so that have a mode that have pricing power when you focus on businesses like Buffett did over the last 50 years you will do much better than just buying an index fund or buying some other let's say common product the key here is not to own currencies not to own bonds especially long-term bonds because you will get butchered when inflation comes and currencies continue to lose their values thank you for watching we'll continue discussing in future in future videos what to do how to invest how to be protected how to find those real value gems i've discussed one in my previous video so please check them so if you want to see all what i do my portfolios my research my detailed analysis my strategies you can simply check my stock market research platform there is a 28 day money back guarantee so see how that fits your investment style see all my holdings if you like that long term my long-term investing strategy the compounding by buying value with a margin of safety you might want to follow it it's not simply ask your money back so thank you for watching looking forward to a comment subscribe to the channel else we'll keep looking for low risk high reward investments no matter what happens with the economy thank you and i'll see you in the next video