 Ladies and gentlemen, boys and girls and children of all ages, you are now tuned in to the investor show as always. This is Greatest Hosts. The Prince of Invest and Prince of Diets is coming to you guys and girls live all the way from a beautiful city and state of Denver, Colorado via Haululu, Hawaii. Don't forget to hit that like, subscribe, comment, and share button, and follow us on YouTube and iTunes as well to get the audio and the visual as well. Without further ado, ladies and gentlemen, I don't have a lot of time. I definitely, you guys and girls don't have a lot of time, so we're going to jump straight into it. So today's topic, we're going to talk about the stimulus plan that was just passed. The $1.9 trillion plan that just passed the house. So to give you a little backdrop on it, it went from the house all the way to the Senate. The Senate took out some things, made some modifications, sent it back down to the house. The house just approved it and they're looking to have President Biden sign that and President Biden will sign that and the stimulus package will start going out immediately, which includes stimulus checks for Americans, people who are gross under $75,000 a year, or if you are married, grossing under $150,000 a year. With that being said, that we know that this is happening now as investors. So what, Prince? What's the so what factor? What does that mean for me as an investor? What does that mean for people in general? That's what today's episode is going to be about. So stick around and stay tuned as we discuss. The first thing we want to discuss with the stimulus plan is with this stimulus plan, you got to look at more, this is the third round. We had one pass about a couple of months ago, right before we got a new president, President Biden was inaugurated in January. So we just had a new plan. So with that new plan, now that we just got passed, so this is plan number three. So this is, it's a new plan, but it is plan number three. And now you've got to keep it in consideration. What did we do March of last year? I've always spoke about this. We lowered interest rates. The Federal Reserve decided to lower interest rates, something that is an economical stimulus plan that has been used for decades and decades. We did it back in 08. We did it back in 2000. We lowered interest rate to make, to ease money, to make money easy, easy to borrow. And in return, we turn around and push the money out, stimulate the economy by pushing money to people. When we push money to people, this is all to spur the economy. Now the first thing, let's look at the economical stance, but we look at the simple things. One of the big talking points that you've probably seen, that you probably haven't heard around the financial industry has probably been bond yields. Everybody has been talking about bond yields. We saw the NASDAQ, which is currently down about 0.21% and from not mistaken, so far this year, the S&P 500 is at 2%. And it's mostly due to the stock market came out strong in the year, but it slowly has had a nice little drag. Why it has had a nice drag? Due to the fact of the last two or three weeks, we've heard this thing called bond yields. What is bond yields? Bond yields is a big thing. So the thing that you probably heard me say on this show, or if you catch me on my other live streams, you hear me talk about what I say that bond yields are interest rates as interest rates go up, the stock market goes down. As interest rates go up, the stock market goes down, right? That's one of the things you have to be very concerned with itself. So we see bond yields as they start to itch up. Guess what? More people, when bond yields go up, bond prices go down. People will be more likely to return back to bonds. When bond yields are down and bond prices are up, equities, aka stocks look more attractive. People move over to equities. So when I say equities, I'm talking about stocks like your Apple, your Google, Amazon, things like that. And when I'm looking at, when I'm speaking about bonds, I'm speaking of things like corporate bonds. Corporate bonds, government bonds, right? Now, the thing that you have to think about, you heard about these, oh, interest rate starts to jump. Interest rate starts to jump. Interest rate starts to jump. And where do these interest rates come from? Why are they jumping? One of the big questions is people are looking at inflation. So before we get into that, I got to ask you a question, what is inflation? So the first question, what is inflation? Inflation is the simple cost of rise of goods and services. You know how you sit down with your grandparents, or my dad, he's pretty old. So he's more of a, he's a grandparents age, but he's my dad. And what he always says, he's always, son, back when we should be able to get Coca-Cola for a nickel. You should be able to buy gas for a penny. We used to be able to, you know, all these things, we never brought bottled water. So, you know, you see those prices. And now I'm becoming the old guy, I'm 36 years old. And I remember how much a can of Coca-Cola, by the way, how much a can of Coca-Cola costs when I was in high school. And when I was in high school, a can of Coca-Cola used to cost, I don't know, I could take a dollar to a vending machine and get a meal. I would probably get a $50 Coca-Cola, maybe a 25, 35 cent, maybe a 50 cent for a Coca-Cola. Then I basically get a pack of cookies for another, maybe 25 cent, a bag of cookies and another 25 cent. I can get some chips, not the most healthiest meal, but I can get chips, cookies and a drink for all about a dollar, right? Nowadays, you look and with a dollar, you might be lucky if you can get a pack of chewing gum and that's a five pack of chewing gum. It's probably costing you a dollar these days. So that lets you know for simple, for simplistic purposes, the price of goods and services are actually going up. That's great for the world of real estate. When we look at real estate, real estate, when the price of goods and services go up, guess what else goes up? The price and the prices of houses. So if you're out here saying, man, look, I have to go buy, I have the order for me to buy groceries, I'm buying less and less with groceries. You've probably seen this meme go around, where groceries with $100 back in the 80s, used to better get a buggy full of groceries or a shopping cart full of groceries. Now, in 2021 with $100, you can get not a shopping cart that you pushed. You can get maybe a little basket of items for $100. What happened? It's the same amount of money, but the purchasing power, which they call purchasing power risk, the purchasing power is going down. The purchasing power is going down because inflation is going up. So as we see low interest rates and money being pushed into the market, we're going to see the purchasing power of the dollar start to go up. Purchasing power of the dollar starting to decrease and go down. Now, when inflation increase, inflation is very good. I won't say, I don't need crazy inflation, but a little inflation is good for real estate. For people who are out there who own houses. You know, hey, I own houses. The value of my house or the price of my house will continue to rise as inflation rises, right? So that's good. If I own a house, I get to build equity or if I own a real estate property, investment property, you get to build things like that. Me, I own some land, so the price of those land get to go up. Great idea, right? Now, when you look at it on the reverse side, so people are worried about inflation because uncontrollable inflation is not good. Because guess what? And one thing that I saw with that, that I was glad that was shot down. This is not a political thing. I'm not, you know, Republican or Democrat or trying to push an agenda. And there's nothing wrong with anybody with their political views. But let's look at it this way. It was pushed to have $15 minimum wage. $15 minimum wage does make sense in a place like Hawaii. $15 minimum wage makes sense in a place like, well, not Hawaii, but Haluulu, where it's very expensive to live. Minimum wage makes sense. San Francisco minimum wage makes sense. Seattle minimum wage of $15 makes sense. New York City $15 minimum wage will make sense. In the middle of Alabama $15 an hour, as a minimum wage, that's pretty high. My belief is minimum wage should be controlled at the state level, not the federal level, because every state is different. The house, for what I purchased from my house, a half a million dollars here in Colorado, gets you a decent house, right? A half a million dollars in Hawaii will get you nothing. When it comes down to a house, right? The average house up there, I just got through talking to one of my cousins down in Hawaii in Ewa Beach. You know, I think when I was there a couple of years ago, his house was worth about $700,000, $800,000. And I was like, man, it's a thing of bubble. And he just called me today and said, hey, my house to start negotiating is $1.1 to $1.2 million. All those houses are millions of dollars around that area, right? So now when you look at houses and you look at people with money and things like that, you start to realize that, you know, inflation is good for certain things. So minimum wage, and I felt as though minimum wage was going to be the number one contributor, not the number one, but was going to be a mass contributor to inflation. Because what's going to happen is when you get one person, the person that get $15 an hour, the person that's going to get more, everybody wants to get more than that. Hey, I earned $15 an hour. That was cool, but I want more, right? So I want more than $15. So the person who's receiving $15 an hour today, if the minimum wage was to change, that person now is going to want $20. The person who's getting $20, they're going to want $25. So it's just not raising the bottom. Everybody's going to want to get raised. And more people make money, you got to ask yourself how are you going to pay for this? There's only three ways to cover the costs. If my work force, if my payroll has just increased, I have now have incurred what type of costs, right? How am I going to pay for this? I'm paying people more, where's the money coming from? Number one, I can cut the workforce. As you can see in a lot of shopping, a lot of fast food places, you'll see a lot of people being replaced by kiosks. In warehouses, you'll see a lot of people being replaced by robots. So one, the company's going to look to cut back on the workforce. Number two, the company could just bite the bullet and say, hey, you know what? I'll just pay the money myself. So the company's not making more money, but it's paying out more money that's going to decrease their profitability, which is bad juju for the economy. And as an investor, I want to see companies have increased their retained earnings and see the retained earnings to continue to grow. But with that, the retained earnings is going to start to decrease, right? So with that being said, you're going to look at companies with either the company can pay it out of their earnings. The number three way, not price, number three way is to raise prices of goods and services. If you raise prices of goods and services, nobody wants that. Everybody wants to make $15 an hour, but everybody loves the dollar menu in McDonald's. Everybody wants to make $15 an hour, but they love the same price at Disney World. Everybody wants to make $15 an hour, but we want the same price when we go to the grocery store. And unfortunately, when you look at the economy, it just doesn't work that way. If Walmart start to pay all of its workers more money, will it be able to offer those low prices? I'm all for people getting a competitive and a fair wage, but we got to look at the bigger picture. When I was younger and I was a kid, my first job, I got $15 an hour at Domino's Pizza. I could care less about the grid economy, the retained earnings and how it was going to affect inflation. I didn't even know inflation was. I could care less. All I wanted to care about was my $5 an hour. I was happy to get it. I was happy to put gas in my car and I was happy to drive back and forth to work. And I was happy to be able to buy some school clothes and be able to go on dates, spending money. That's all I cared about. So now when you look at people today, people today are saying, hey, well, what about me? What about everybody else? But as I became older, became an investor, I start to realize it's something bigger going on than me. I have to look at where does the dollar come from? There's no such thing as a free meal. As a lot of you guys and girls know, I'm the founding and president of a 501C nonprofit. And with this 501C3 nonprofit, what I do is we're a charity, but guess what? Everybody loves to take a lot of things from charity, but a lot of people don't like to give a lot of things to charity, right? And what I mean by that is when people come to a charity, they say, hey, you know, we want great meals or whatever the charity does, we want a bunch of services. Yes, a charity can provide those services, but guess what? To have a website is not free. To drive out to do certain things, that's not free. When I go to the gas station, a nonprofit cannot write off the gas as an expense. Well, they can write off expenses for us business, but they still have to pay for the gas. They still have to pay for the website. They still have to pay for their time. They still have light bill, water bill, gas bills. They have to hire employees sometimes. They have to have different systems in the play, tax professional, hiring help, marketing, flyers, social media, all those things you still have to pay for. You may get a break from certain people, but you still have to pay for, but nobody cares about the expense side. Everybody wants a good side. And what I say, when we look at the grander scheme of things, that's what we have to look at. Now that we know these things, now that we know how inflation is very important, how it plays into the role, now that we know how this can affect people who's going to invest, I now want to talk about ways as an investor, how you can profit from the $1.9 trillion stimulus plan being passed. So with that being said, I got something in my eye there. With that being said, we're going to take a break. We're going to take a very good, not a very good break, but a quick break. And we're going to come back and after the break, we're going to talk about ways to benefit or ways to invest to benefit from the $1.9 trillion stimulus package. Now we are back. We are back. Welcome back to the Prince of Investment. I'm your host, Prince Dye. It's coming all the way live for the beautiful city and state of Denver, Colorado via Haluulu, Hawaii. Before the break, we was talking about the $1.9 trillion still and stimulus plan and the ways that it affected the economy. Some of the things that was good. I kind of went on a minimum wage rent in a way, but now we're going to get down to the nuts and bolts. Okay, Prince, that was all good stuff. Okay, as an investor, what can I do? How can I make some money with this, right? So the first thing is with stocks, with stocks, you're going to be able to look at the companies that are going to benefit the most. It's going to be no secret. These $1.9 trillion dollars, it is going to the lower income of society, the middle class and the middle to lower income are going to be receiving stimulus checks. And what do you think people are going to do with the stimulus checks? The audience, the people that tune into the show, they're going to look for ways to invest their $1,400. The rest of the people, the rest, not the rest, no offense, but majority of people are probably going to spend that money. Ask yourself, where are they going to spend the money? Right now, we don't have too much leisure. The hotel and leisure and transportation industry has been hit, meaning people can't go on to trips as much, meaning that, you know, Carnival is not really open all the way in full swing, airlines are not opened up all the way in full swing, people can't go to clubs and bars, too funny, but with the 14th, a lot of people are sitting at home. So number one place people are going to do is online e-commerce and retail. Online e-commerce and retail, people are going to sit at home. And I'm going to tell you right now, ladies and gentlemen, even though the stimulus checks probably haven't hit people accounts yet, people have mentally spent that money. It's mentally gone. Right now in the back of your head, if you're going to get a stimulus check, I can guarantee you most people have gone out and said, hey, you know what? That new TV that I wanted to buy, that new thing that I would rug that I wanted to, you know, buy or whatever. Now, I'm not saying this to negate, there are people that's actually going to need it to buy food, pay for rent, clothes, that's true. But a lot of people that's going to buy it, you got to look at things that are in the consumer spending sector. Number one, e-commerce. Amazon Estis, ETSY, hopefully I didn't pronounce that. Online retail, people are probably going to, hey, you know what? I want to get that jacket, those pair of shoes, that shirt, whatever the case can be. People are going to Amazon, they may get that TV they always wanted or whatever. Number two, we're looking at consumer products. We're going to look at things like Walmart and Target and Costco's, Walmart, Target, Costco's. So people will probably go and, hey, people who are really struggling and hurting, they may go out and grab some water. They may go out and grab, not water itself, but maybe cases of water consumables. So, consumer goods, companies that are in the consumer goods space, I can see them making a run for it. You know, being very good, that's what stimulus check is probably going to go. Then you're going to have people in McDonald's. People, places like McDonald's, I would not McDonald's in itself, but drive through fast food. Drive through fast food has been booming during the economy, during this pandemic. The main reason why is that people now, hey, says, hey, I can, instead of going to, you know, I can't go inside of my favorite restaurant and sit down and have a beer and watch the football game and have a nice meal, most people grab and go style. So everything with a drive through is having a good, having no way with things, right? So you got to look at things like that. Number three, I like what James Fortland said today earlier on one of my live broadcasts. He said cryptocurrency is the irresponsible index, meaning when the economy is financially irresponsible, cryptocurrencies go up. So for prime example, some people may look at us being irresponsible. We have a massive amount of debt that nobody seems to be worried about and I don't think nobody's worried about. The military is the only thing that's backing up the US economy right now. It's the only thing that people have faith in and it's the only thing that people have trust in. Outside of that, if we were to lose our economy, if we were to lose our military today or tomorrow, I think our economy would collapse. We were going to massive inflation. With that being said, I know that we're gonna have a massive inflation but we have been very irresponsible with our money. We have been printing out money, left and right, printing money, throw at it. We did it in 08, we're massive doing it now in 2020 and we're on stimulus package number three. With that being said, what does that mean for low interest rates in massive and passing out money? With moderate unemployment. That means that we could see some move in cryptocurrency. Now, this is speculative. This third one is speculative. When I say cryptocurrency is very speculative and what I mean by being speculative, there's a difference between speculating and investing. An investor is someone, you have financial data, you can look up finances, something that you can point to to have evidence to why you believe something. Cryptocurrency, I don't know who owns cryptocurrency. I don't know how many cryptos are out there. I don't know what makes it go up in value. I don't know what makes it go down in value up to this point. So I speculate on it. I have money put into cryptocurrencies but it's nothing fancy. I'm speculating on it to say, hey, you know what? If it goes up, it goes up. If it goes down, it goes down. But as you have seen it, as we become more financially irresponsible, you're looking at cryptocurrency as the new irresponsible index of the financial industry. Shots out to James Fortland for saying that. I really like the way he framed that. So as we become more irresponsibly financially, you're gonna see more people, you're gonna see a nice move probably in cryptocurrency. Now the first two that I said, leisure, transportation and leisure, people may go to Disney World, people may travel, people may get on their planes. We have a lot of pent-up energy from the transportation sector. There was a time when nobody was traveling, flying, jumping in hotels. So we have a lot of pent-up energy into that space that's gonna be released here as we have these three vaccinations that are gonna be spreading across the globe and across the nation. There could be a move there. Another good one I like is oil. You might see a short-term moving oil, oil for the short-term and green energy for the long-term. I can see that oil prices are making a nice move this summer as people get back on the road and people get back to their normal lives, right? So that's one of the things that I look at as well. Another one that I can see is real estate. Why? I think when people have more money because when I think about it, not just the stimulus packages, we have unemployment. People on unemployment are being extended and making more money from unemployment. Why is that? That's great for doing what? I'm making more money from unemployment. Now that I'm making more money from unemployment, guess what I can do now? I may take that trip. Maybe I may not go to Disney World, but I may make a two, three hour drive to go see a new place or do something new, right? Those are the things that I want people to think about as well. So let's do a recap. We spoke about the stimulus package being passed and we spoke about people receiving stimulus checks that unemployment benefits being extended. This could potentially cost a nice rise in inflation and with inflation, real estate, real estate starts to do well. It's a great way to hedge inflation as inflation increases. That's where you can benefit from that. So that's one way. Real estate is one way. The next way is Walmart, Costco's and Target. You know, they sell a lot of essentials of our lives. Another one too, a sneaky one there is Home Depot and Lowes. So you got Lowes, Home Depot, Target, things like that. Then you have the next one, which was the first one that I was saying was travel. You know, maybe airlines. Airlines have been doing very amazing this year. Stock price wise, they have been increasing. So those are some things I want to put on your brain with the $1.9 trillion stimulus package being planned and what's gonna be next. I think we're gonna have another round, one more for the year. And I think that this should be the last massive year. I think this pandemic is gonna last the rest of this year. And I think we're gonna see one more stimulus and then as the vaccination kind of takes over, then we're gonna get back to normal. All right? But anyway, ladies and gentlemen, that's gonna conclude today's episode. I wanna say thanks to everybody for tuning in. My name is Prince Dykes. I'm the Prince of Investment. Don't forget to hit the like button and subscribe button here on Think Tech Hawaii and check us out on Apple iTunes as well. So if you haven't done so already, check out my book series, Wesley Learns. The World's First Children's Financial Literacy Book Series, Wesley Learns to Invest, Wesley Learns about Credit and Wesley Learns about Insurance. It's great that you learned this information but it'd be even better if you can pass it down and start your kids at a younger age. All right? So anyway, ladies and gentlemen, boys and girls and children of all ages, thank you for tuning in. And to the next video, podcast, cartoon or whatever else you see me doing around the globe, peace, be safe, I'm out and thank you.