 Hi everybody Russell Moore coming to you live dedicated to financial literacy. Good to see everybody. Welcome back. Welcome. Wait a minute I should be saying welcome back. I'm the one that's been gone. I Would encourage everybody to Subscribe notify and hit the like button if you like the content. I'll keep pushing it out to you from time to time to time Miss everybody is man. It's good. I hope everyone is doing well And so I just wanted to just kind of you know talk about a couple of things that's going on right now with the market and Some things that I've been thinking about some things that I'm doing and I'm excited. I'm excited By the dip by the dip they're saying right now. And what is my favorite saying? I got to give it to you if you don't learn you will not earn if You don't learn you will not earn one of the things that I'm doing is right now is my son He's in kindergarten. He's just started and I thought I'd use a kind of a Creative way to teach him his ABCs. He knows his ABCs right right now But you know in order to practice them what I've been doing is teaching in financial literacy So he I'll say hey a is for he says assets B is for bank C is for credit D is for debt E is for earnings F is for finances G is for guidance and of course, I'll teach him what all of these things means So I told him I said hey all those toys whose toys are those he says those are my toys dad I said those are your assets So I'm thinking of creative ways we got a plant financial literacy in the children It's not good enough to just for me to do it and not pass it on to the next generation We're talking about generational wealth, right? Okay. You got to give it to your kids and Some people think oh, they're too small or too young. No, no, no, no No, start them off now at four or five years old begin to plant the seed of Financial literacy in them and they'll reap the harvest later. I'm teaching him how to save He's got his little piggy bank right over there, so I'll give him money from time to time and I'll say hey What are you gonna do with that? Oh, I want to spend no no, why don't you save it? Why don't you save it? He already has his own stock account what I'm gonna do is as he gets older I'm gonna teach him About the stock market Because let me I got to be honest with you my dad didn't teach me my dad didn't tell me anything about that finances and Yeah Stocks bonds. I knew nothing about that And so but thank God he taught me what he could all right, so I'm thankful my dad is my hero Okay, he's no longer with me, but my dad is a hero and he was a veteran. He was a marine no joke He was not playing So anyway Back to what I'm gonna talk about today. I'm gonna try not to make this real long I'm just gonna hit a couple of things number one talk about number one the Federal Reserve Jerome Powell We got to end the Federal Reserve We got two more meetings before the end of the year and they're gonna raise rates again So they're gonna keep raising rates So we'll probably be high for four percent five percent by the time they're done just about five percent The financial Rate I mean the federal rate. Okay. Now How's that gonna affect the housing rate housing market? What did I tell you? Six eight months ago eight months ago. I said by December will be at seven to eight percent And guess what gang right now the mortgage rate Today was out seven percent So if you're buying you're looking at a seven percent rate Here's the thing about that So so not only does when the Federal Reserve raised the rates not only does it affect the housing market Your car loans if you're getting a car if you're looking to get a car. It's gonna affect the rates are gonna go up Okay credit cards Watch out for those adjustables Adjustable rates for your credit cards. Some of you probably have 30 percent on your interest That's why it's hard for you to pay that pay that credit card down Look at your rate Look at your look at the interest rate. And here's what you want to do. You want to transfer that I might as well Throw you a little bit advice. Why I'm out there. Hey, okay Transfer many there are many cards out there right now city bank Wells Fargo American Express There are many cards out there right now live 24 19 20 24. Come on You should be able to buy you should be able to pay it down by then Interest is killing you you have not been able to pay that card a card down It's because your interest is too high Transfer it if you can all right Transfer it to another card All right back to the Federal Reserve. So all that's being affected by the Federal Reserve mortgage Mortgage mortgage mortgage. So what are what's going on with the mortgage with the housing situation? It's all over the place, right? We're in a we're in a crash I'm not saying we're in a crash I'll just say we're in a correction for the house Housing because I'm here in California northern, California. Yes, it is prices are dropping here in southern, California It's not as bad prices aren't dropping 30 40% you may get a house to be here housing the inventory is still up inventory is still high Okay, let me say this inventory isn't it's it's it's low. It's going higher It's still low houses are still selling They're dropping the price is going to drop Because people are not gonna be able to afford them. They're not gonna be able to buy them 7% interest rate nobody's gonna nobody at a 7% mortgage rate Nobody nobody's in their right mind is gonna be buying right and let me tell you why it's not just the mortgage rate It's inflation. So they're looking at what they're paying for gas and food and energy Utilities are up everything's up So to go out and buy a home or feel like that is not a wise move right now. So they're gonna pull back Wait for the prices of the houses to drop. I give it to 2023 mid 2023 Really be be able to see those houses prices drop and in a fortune Oh, hopefully the mortgage rate will drop as well Because remember after the two are done, they're not gonna do any more this year So there's a good chance the mortgage rate if we look at the 10-year bond That's the key 10-year bond when it goes down if it goes down Usually the mortgage rate follows. So I'm keeping an eye on the 10-year bond treasury bond. All right now So that's the housing and this is my disclosure. I'm not trying to give you advice But ices of houses will come down and so if you can hold off way Last thing I really want to talk about is I have this book I've been waiting for this book and I'm a Chris Miller and it's an excellent book. I mean say say it's fire This book is fire and it's called ship war And it's talking about basically semiconductors. Here's the thing Here's the thing I would say The country that has control of the chip the chip the semi-conductors Sector is basically gonna run the world be the number one superpower just passed the chip act He's trying to get American companies get not just American companies companies to come here and Manufacture open up manufacturing plants to produce chips Because he knows That's this this administration knows Whoever is dominating in the semi-fact semi-conductor arena at the chips Okay, but this book is really good to fight for the world's most critical technology and he talks about China petition and not just them Taiwan and all the different things now. I have not read it yet I just started the book But I've been doing some research on this whole thing with Taiwan and in China because a lot of people think oh China wants to get it's the it's their sovereign land and they just want to get their land back China wants Taiwan chiefly Because Taiwan is supplying over 90 90% of the world's chips Come semiconductors Come from Taiwan There's a major company out there. It's but the name of the company is Taiwan's my conductor manufacturing TSM C TSM TSM is like balling They've over they've overtaken Intel. They've overtaken pretty much Actually right next right next down the street from the new Intel building that's being built Intel it's putting Like three of they're building like three manufacturing plants as a result of this the the chip act that Biden just put out they're getting subsidies and money basically they're gonna have money to build plants So they're their plants are like 20 billion for one plant. So Intel is there on the move the CEO he is he is for real and so Because they understand Everything look around if I look around this room my television televisions the monitors the computers my cell phone The refrigerator stove Microwave everything those lights over there that particular lights all of this stuff has chips in them ours EVs Electric vehicles random chips full of chips hundreds of chips and cars so It would be who this and be like we're behind They're kicking our butt and they own which the chip is made of silicone Guess where guess where most of the silicone is in China. It's getting scary It's getting scary, but we don't have to fear God is not giving us a spirit of fear But a power leaven of a silent discipline mind. All right, so don't be afraid Whatever you do. I know that so but I want to tell you I want to encourage people to pick up this book first The Bible is the greatest book of earth, but this is a good book if you're talking about investing to me This is the industry that we're gonna want to invest it in. I'm not gonna tell you. There's my disclosure I'm not telling you what companies to invest in in the semiconductor arena. Let me just give you the companies though Okay, I'm not telling you to go put your money in there I'm gonna say that again. I'm not telling you to go put your money in there number one I'm gonna say because they're American. I will say Intel Texas Instruments also there. Hey, they're not playing TSMC TSM Here's a company that you want to watch out for They actually have a machine That's like they fabricate look at all of these Chips semiconductor transistors these chips, right these wafers. They're called a wafer those little one Well This company has this machine It's they're the only ones that has his machine. They have the patent on it. No one else can build them They have the technology. It's an incredible machine But guess how much it costs one of them costs over 200 million and they're building another one that costs over 300 million in the name of the company Well, the company the ticker symbol is ASML ASML I'm gonna look up real quick. Let me just look up real quick where they are As far as their stock price companies are able to buy the machine because they're so expensive Not many companies are able to buy them as ML holdings in this company. They are at 403 dollars for share last three months. They've went down 8% In the last year, they've been down 45% So this company was over five hundred dollars a shared one point. So it's it's kind of dropping right now one machine They've come up with a five minimum on a three nanometer Once that happens, man, you're talking about a powerful chip. All right ASML Most analysts is about 80% say it's a buy 80 to 90% Most analysts are saying to buy this thing. You got about 15 20% Saying hold it in 3% saying sell it only 3% are saying sell the stock. I believe that's it I believe that's all I have for you right now. I'm definitely gonna be on watching Keep I'm gonna keep giving you content, but I'm telling you if I'm let me give you those stocks again I'm not telling you to do it, but research them ASML ESMC or TSM I want semiconductor Texas Instruments, and there's several others. Oh, or I should say on Company called on ticker symbol. Oh They're doing some great things Keep an eye on this sector and these are dropping in prices because we're in a bear market And that's what I want to end with This bear market or what we're considering may be probably a crash right now We are down S&P 500 year to date. I believe it's down 35% The Dow and Nasdaq are both near down. They're down near 35% And usually man Nobody's expecting but but Jamie Diamond of JP Morgan said he said in a recent interview That the S&P 500 is probably gonna go down another 20% you're talking about over 50% the market Man, can you imagine all the people because of the gains that take place in the last couple of years? And people are losing all of that but buy on the dip. Everything's a discount right now This is not the time to be to cover back You know, you can't time the market. We don't know when the bottom will hit I don't care what anyone says. Don't listen to CSP and CNBC. I don't care what they say. We're not near the bottom We don't know when the bottom is I shouldn't say we're not near I'm just saying no one knows when the bottom and start going back up It's what I'm saying a lot of discounts. You got Microsoft on the discount right now meta Facebook is on a discount Google Amazon all of them on the discount Good solid companies that aren't going anyway, it's like $63 a share. I don't know where it is right now $63 a share for AMD that company's not going anywhere so Tesla Tesla's been going down Tesla's been getting hit some. I don't know where they are now probably about 220 230. I'm not sure but These are good companies. They're not going anywhere and see really is having a recall Ford is having Supply chain issues with the chips GM is not doing all that great all these companies that are supposed to be fighting against Tesla and Tesla just keeps moving along I'm telling you they're gonna they're in dominance. They're gonna dominate the EV market here in Cal in The United States China Europe Everybody's trying to catch him Everybody's trying to catch her for just said they're not making any they're not making money any money on the Maki In fact, they're losing money on the Maki and that's what Kathy Woods said. She said they're not gonna be able to make money That's why they're not gonna be able to compete with Tesla Anyway, I know I'm just ranting But I'm excited about the market because even though it's crashing you can make money on the way buy your stocks Buy on the dip get you some options puts buy option puts not selling buy them If you buy them, you're expecting the market to go down While you're while you're waiting for that While you're waiting for your stocks to go up get you some puts and make some money on the way down All right, I'm out of here. God bless you God loves you. I expect the bull. I expect you to prosper In through the end of 22 all through 2023 I'm out of here