 What's going on guys? We're back with another episode of the after hours podcast We have Alex coming back on Yeah, perfect, man He's gonna hopefully be a nice recurring guest and we'll have him on a bunch to talk about everything going on so So I guess Alex, what have you been noticing kind of going on in the market right now? Yes, so I mean last time we spoke we mentioned that you know, we think inflation is kind of peaking because You know energy prices have gone down Real estate prices have gone down commodity prices have come down Even even Elon Musk came out recently and said that he thinks inflation is peaked and to be honest that guy He's in the game enough because of all the raw materials he has to buy for Tesla, right? So they have to buy these Tesla materials six months eight months a year in advance, right? So these guys know what the prices of these commodities are these prices these guys know what it It looks like kind of looking forward. So he said they're coming down already, right? Yeah, he said he said He said they're coming down He said that he thinks inflation is peaked and look he's not an economist But he's also the smartest and richest guy in the world. So that has to do with something. Yeah And just yesterday, so we're recording this on August 11 So just yesterday the CPI numbers CPI is the consumer price index which basically measures inflation the numbers came out And for the first time and it feels like a year the inflation number came down, you know people I think the expected number was eight point seven percent and Ended up being eight point five percent and when that number came in lower than expected It means that inflation might have peaked and the market just rallied straight up every single stock with a bid Doesn't matter if it's AMC doesn't matter if it's GME if it had a bid that bid went straight up So that's kind of where we're at now And you know in terms of how long this is all gonna take to fix, you know the market rally because Traders are betting that okay now the Federal Reserve isn't doesn't have to be as aggressive with raising rates The Federal Reserve might even drop interest rates Yeah, and you know some of these companies are slowly gonna start to rebound. So that's kind of where we're at now It's kind of nuts It's nuts because we had this long period of like a Aggressive pullback with I guess a lot of fear and like anxiety and then in like one day It kind of felt like sentiment definitely changed a huge amount. I guess the problem is like right now It's like I think everyone's still scared I know I'm I'd be scared if I'm like kind of portfolio building because it's like how do you How do you buy into this and like not feel like we're gonna have a harsh pullback at some point soon And I feel like it has to happen Yeah, I mean look at if you look at Apple bro Apple's like 8% away from all-time highs. No, it's I don't get yeah Just like last month it was down like 30% on the year and yeah, it's right back And that's what what I've noticed is Based on like a bunch of studies out there This is the most amount of short Participants that have shorted the market in like the last 30 years There's so many shorts that are betting on a fucking Worldwide collapse and if the world doesn't legitimately collapse Then they got to cover up their shares which leads to a domino effect We see even the small cap market all the time. Yeah happening in large cap market Yeah, I know I think so too I think for me though like looking at this five like like to me like the most like you four top is like Okay, now we're back at like 420 on the spy. We have weed stocks that have started to take off We have meme stocks that are starting to take off. We have don't die, bro I think I should just invest in them. Yeah, we have there was a stat out there that said Facebook is down 50% on the year Tesla is down 30% on the year Game stop is up 15% up on the year. So yeah, that's in the meme stocks. You made money this year Just buy the fucking meme basket. Oh, no, I know But I think like that is like a pretty like euphoric top to me So and this is just my opinion I think that we're definitely we're in for some type of pullback And I think that like like I learned this from battle a long time ago like because I do long a lot and the the first kind of bounce always like Not like the first bounce pattern, but like if you're looking at like kind of like Okay, something has tanked that first kind of like bounce that everyone starts to long Is usually fake, you know, like I would say the the the bounces before everyone was just expecting them to drop Everyone was just expecting them to drop and they did drop But now we have everyone like longs who are just like like Like I've noticed on twitter like the sentiment has definitely changed like we've gone from bear market sentiment on twitter to Okay, now we're long again and now everything's great and the problems have not been fixed or you know The problems are all fixed. We're all good and we're ready to go to 500 To me when I see that sentiment I'm like, okay, we're we're due for like some type of sharp pullback. I think like to catch people off guard because So many like I think we're definitely going to squeeze some shorts out We might have a day or two or three of this type of kind of like rally But I think longer term we're in for like some type of pullback and then once we get into the fall Uh, like I think we're gonna kind of pivot down into elections once we kind of get into the fall Then we can start to build like a solid base and get back up. That's just me though Like obviously like, you know, we don't always have a crystal ball but I think we're due for some type of pullback because you know And that's just me like I when I see a bunch of people going long It always kind of worries me because like in covid everyone was fighting it, you know Every single person was fighting it like the sentiment was like, but it has to go down But it has to go down but it has to go down, you know Because everyone felt that after we had that drop that that whole collapse was coming that that whole thing was coming But now I feel like people are like, oh, but it has to go up But it has to go up but it has to go up So I think we need to kind of change that sentiment to people starting to fight Like my biggest long gains are going to be when people are fighting all the time 100% when people are like Oh, but this is the top but this is the top but this is the top but this is the top, right? And it just keeps going going going because everyone feels the same way And I think that we need to kind of move a little bit lower In order to really get that that that rally in but I mean you got to go lower You got if look if you're thinking about the long-term perspective of how any market goes higher or how things rebound Is stocks need to go down Trap shorts and then continue to make their move higher, right? So right now it's almost essentially like, you know, they're trapping the lawns, right? So exactly as market participants, bro, I'm an optimist, right? I want the market to go up I want there to be a bull market because the more of a bull market that there is in large caps The more of a bull market there is in small caps that we trade the the more Crazy the large cap bull market is the shittier stocks run in small cap world. So I'm one I'm an optimist. I want this shit to go to spider with thousand. Oh, yeah, me too That's what I want. So to make that happen We need to go lower. We need to trap shorts. We need to convince them that hey, you know, the world is crashing again And then as we saw, you know last quarter all these big companies, they had amazing earnings So it doesn't matter what we think about recession. It doesn't matter what we think about depression So long as companies like apple and microsoft and google make money the market's going to go up I think the s&p 500 is like eight percent apple So so long as apple continues to make money that's going to dictate the entire market. That's not going anywhere That's not going anywhere. No, no, bro. You never know elon might come out with the tesla phone Yeah, the tesla phone might fucking take apples apples ass on the phone and all of a sudden what they'll do is they'll change the weight from Apple to eight percent to tesla to eight percent and they'll fix it, you know The game is rigged bro. I guess I guess my biggest thing is like I agree because the market needs to come down to kind of cycle out the trapped longs and all that But what's gonna happen? Like we need like a I feel like nothing's gonna change in the next like six months It's gonna cause an event that will create this kind of panic Which is like not necessarily a good thing because I feel like the longer we rally the longer that we're gonna end up in The biggest road there has to be just like in small caps. There has to be a catalyst. So for example, god forbid Uh, china goes to war with taiwan. Yeah, exactly taiwan That's gonna be a catalyst. Yeah, but if nothing happens until 2023 The federal reserve is probably gonna lower interest rates They're gonna make debt cheap again And people are gonna start the cycle of borrowing money that they don't have to buy stocks to buy houses buy crypto to buy Whatever the hell they want and the game is gonna start all over again Right, so there has to be a catalyst for things to go down and that could be another war That could be company earnings going down that could be anything But in from what i've seen right now the only catalyst for things to get better Is that the fed potentially is gonna lower interest rates in 2023? Yeah, and you know the thing is is that I don't really worry so much about catalyst because it always comes Like it's weird how it works, but like there's always something for Like there's always a reason to to blame price action for you know There's always going to be a reason to to blame it on I don't really worry so much about catalyst Because like it always just seems to come you know like it just it's like oh, yeah Like another pop but but we have this this this to worry about like humans just will make fucking shit up at the end of the day You know like sometimes on cmbc i'm watching and i'm like okay This is not the reason the market has gone down today, you know, but they're just going to always find reasons to Yeah, you know cmbc is for entertainment purpose. Yeah, exactly. You know if you do the opposite of what they say That's how you make money Yeah, no 100 and so So alex I have a question for you So because I get this question a lot from guys in mc2 But you know, how do you go about in like times like this especially when it's like turbulent or things are going up going down How do you add yourself to like your long-term portfolios and stuff like that? Like how do you even judge that and and you know kind of add more pieces or take some off or whatever so So I actually want to do like a full episode on like longer term, you know capital investing but The number one thing is to be able to buy these things you need to have cash on hand That's the number one thing is what I've noticed is a lot of people they don't have cash, bro But for example, like let's say let's say you got $5,000 in the bank But you're spending $5,000 a month on credit card bills on rent on whatever the hell it is When the opportunity does come that apple is at 130 You can't fucking put any money, you know it because you wasted all your money So the big thing to do is to accumulate cash, right? I think having about a 10% cash position is a good amount So let's say you got a like your entire net worth is 100 grand You should at all times have at least 10 cash in the bank. Maybe even more Just to be able to have in case of an emergency Just to be able to have an invested in case like you have an opportunity And now that number change if you got a million dollars It's probably safe to have 100k in the bank just waiting so that when shit does go down or i'm gonna deploy 50k here I'm gonna deploy 20k here, whatever that may be so the number one thing is you gotta make sure you got cash on hand So it was actually really funny because One of our moderators the bear I was trading the meme stocks this week and he's like, oh, like are you gonna buy like a new fancy watch after these meme stocks? And i'm like listen, bro I'm not in the mode to buy any more toys I am in the mode to stockpile cash because the next thing coming down is real estate And the only way to make money is to have cash The thing with real estate is you could borrow a lot of money So for example, if you want to buy a million dollar property, you only need 200 000 the bank is going to lend you the rest So my job right now is to gather as much cash as possible That when the next sector goes down, that's what i'm gonna be buying So when all these stocks went crazy down like You know tesla was at 600 Apple was at 130 You know amazon was at like 102 I had cash on hand I had cash on hand to load and like I mentioned in the last podcast a lot of people are down 30% on the year on their long term holdings You know i'm up to 3% it's not fucking life changing But it's way better than being down 30% because i'm buying when people are panicking So the way to do it is the same way we do everything Is buy when it's red Sell when it's green buy when people are panicking when people are calling for a recession when people are calling for depression when people are calling for world war three That's when you buy when it is the scariest to buy That's when you buy now it doesn't mean buy the fucking meme stocks Obviously, we're joking but companies that For example, I use an iPhone every single day. So you better believe I'll be buying app That's just the way it is right and obviously it's not investment advice. You gotta do what you gotta do But for me, I'm just buying stocks that I use on every single day basis I'm buying stocks that have proven to last the storm You know, there's companies out there that you know Got hyped up like moderna like Pfizer like whatever the how it is COVID's over. So I'm not going to be investing in those stocks I'm gonna be investing the stocks that you know have long-term potential and always like right now right now I can't justify buying apple again. I can't justify buying tesla 900 I am selfishly waiting for another market pullback for them to trap the shorts to be able to get better prices because now Shit is extended again, right? Yeah, exactly have cash on hand is number one So my big thing right now is I'm stockpiling as much cash as possible To deploy in real estate in three to six months when you know, shit starts to get a little bit crazy Real estate starting to slow. It's around here at least I'm starting to see a lot of houses sit there for Along there's cell houses on the market, which you know, you go back six months You put a house on the market for a million and be gone the next day for two million It was insane And even even me bro, because I I was moving I moved out of my old place and I got this new place here And I was looking at places and dude, no exaggeration If you don't give them exactly their asking price plus more There's no joke 25 other people that will take it for above asking price So that's kind of where I was at and I kind of ended up buying at the top or I'm renting right now I ended up renting at the top because I had to I was going to be homeless But for me, I don't think that shit is going to go down as bad as 2008 I don't think there's going to be mass foreclosures. I don't think people are going to be fucking broke forever I don't think that because the qualifications of getting these houses have gone up so much It is you got to be qualified as hell. You got to have the income. You got to have everything So I don't think that's going to happen like crazy Maybe a 20 dip and that's going to be plenty enough for me right because like Last time Harry is buy it now When the interest rates come down next year refinancing for lower and that's it Yeah, no, I 100% agree with that. Yeah, I find the Qualifications are a lot crazier. I think the only thing though like and I think I talked about this before is that I was listening to a podcast here in Canada and he he said like Before kind of the pandemic before the real estate bubble Picked up You know 20% of his transactions were these kind of reverse mortgages So people were basically taking out loans against the equity of their houses and Which you know, that's that's fine. He said during covet now like 50 to 80 percent of his transactions Are now those reverse mortgages in Canada. I don't know what that is in the u.s. Or like how you go about that but a lot of people have been taking You know loans against their houses. So if that kind of falls and let's say we lose You know 20 percent in value. I do wonder what happens to those people Where is it just like what what kind of like happens to your loan? Like do you need to like Like put money back in or are you still underwater? Yeah, water. So yeah, like the value is like underwater So like that to me is a little crazy because like you could have potentially a lot of people trapped because You know for a long time. I was like, where are people getting this money? Where are people getting this money? You know like especially in Canada too because like Canada isn't like the u.s. in terms of like economy wise, right like There are like a couple good jobs here and that's really it Like if you're not a doctor or you're not a lawyer or let's say a stock trader because like, you know, I'm a stock trader If you're not one of those things, you know, it's pretty difficult to to bring in like a lot of money So a lot of people are buying new boats new trailers new new cars Like I was seeing here and I was kind of wondering But it does make sense that a lot of people were kind of going to the bank and saying Hey, I want to take a loan out against the the value of my house and they just expect that when they sell their house They're just gonna get all that money. They might be taking that loan against their house to buy more bitcoin Yeah, exactly. Yeah, you never know like bitcoin to the moon, baby. But uh, yeah, that's another one I think bitcoin, uh, that's down. That's too for a pullback too. That baby cannot bounce Yeah, the thing is bitcoin is built on hype, bro So they need to get people hyped up about it and if everyone is broke and everyone has no money Like I was actually talking to this about my I was talking to this with my dad the other day and I was explaining to him I was like, look if People if gas prices are up Rent prices are up Food prices are up every type of expenses up. Yeah How the hell are you gonna have any disposable income to Put it to work If you're spending all of your money on gas if you're spending all your money on rent If you're spending all your money on groceries, you got no you're barely getting by You're barely getting by you got no time to even buy some of these meme stocks You got no time to even buy some of these uh cryptos, you know what I'm saying? So yeah, it's not it's not easy and it always goes back to the same fact is stockpile cash right now Stockpile cash to be able to deploy At an opportunity that you see fit Yeah, I had a really good conversation with a guy. Um, he works in crypto I forget what company is it's he's a client of mine and we were just chatting about it and he was saying how Kind of like that like the hype of crypto is almost like gone And I feel like we're at this period now where we might start to see the companies that will actually have like value And like maybe there are some that there obviously have to be some cryptocurrency companies that are gonna do something in the future But I think now it's like that's speculated that excitement isn't there anymore the world's changed I mean it's changed a lot since covet right people don't have the time to even like care and like a lot of people feel like They're not smart enough or they miss the boat and you know So I think I think it's gonna have a much harder time balancing than people think And and who knows man, who knows where we end up in like six months. Yeah. Yeah, the thing is about stocks They have institutional money behind it. So you got like the saudi trillionaires. You got the Multi multi billionaires in dubai that have all this cash all these oil tycoons. Yeah They're not allowed to be investing in bitcoin because there's no regulation So all that capital gets deployed into the us market. So the us markets, although are still down You know, it's the strongest markets in the world. It's the most investable market in the world So that's where the most of the capital is going to be deployed, you know Yeah So how do you guys feel right now about like small caps? What's going on with uh, how are you guys trading? How's you know market sentiment? You think I mean as we're talking bvy is still bouncing again I mean things are strong right now, right? So how are you guys doing? Yeah, harry you go for it. Okay. So for me this week It's been a little bit slower for me due to kind of like lack of pumps Like I found that this week has been like yesterday We saw like everything fade and the only thing that really kind of popped was AERC that one I ended up getting in I found but To me it was just too suspicious the way it kind of dropped So I took some at like 570 and then they ended up issuing a frigging pr Which was Needs opportunity man. I was just luck So, um, I thought maybe we could build back to like red to green in that situation But anyway, the issue this pr. So you like sell over like previous size. That's it. But I mean other than that I found I found for me at least like Compared to the week when I was kind of away it's definitely a little bit slower this week for me and it's not necessarily because of Like that the market isn't strong because like things are strong We've seen bounces on like bbby. We've seen bounces on the mean stock stuff like that But for me, I've noticed that with the day one runners like they're getting like And this just to me they're getting like a little bit weaker It's getting a little bit kind of easier for shorts other than that pr Which was like that. I mean that was like the odds of that dropping like who knows but um I found that it's been getting like a little bit weaker like like we haven't seen like Uh, things have been able to run like we saw like with tblt or things been able to run like we saw with like The other stocks that were just strong and had a bid like every single day You know, you could rely on those stocks to have a bid Now it's kind of like The day one runners are just testing high. It's not really breaking out of that kind of range and going back down lower um, other than a couple that have been like super super tight range, but Um, I've seen it getting like it's not necessarily weaker, but it's not necessarily stronger either So to me, I'd rate it kind of like medium where like we're not we don't really have crazy runners But we are getting some action and we are getting a lot of stocks kind of coming up So for me, I'd rate it like kind of like neutral. It's not like the end of the world Hopefully we can finish this week out with some crazy pumps, you know insane to the moon. No just fuck with you But you know, um, you know, I I'm hoping that we can see like a bit more action a bit more range The range has been kind of capped that time. Yeah pumps have been really weak And that's something I've noticed is like, obviously, you know, a lot of us know guys who push stocks or try to whatever I just feel like they can't get momentum and my biggest thing right now is just like you said, it's range So it's really hard to it's really hard to I think size into anything Responsibly while there just isn't the range, right bbb Why the meme stocks have been a bit of a blessing this past week because they all obviously came back up from like Six bucks or 12 bucks and ran now. We have a bunch of meat on the bone, which is nice But I think it's a short, you know, as long as you're Just kind of building into a position right now and you're like adding to winners rather than kind of like scaling into these Like grinders that keep kind of happening. I think the market I think the market for shorts has been okay I think it's been a pretty solid like last two weeks Um, which means, you know, we I think we're still do for that like kind of like f you runner And I feel like we've been saying it for a long time now But at some point we I think we're going to get that thing that just completely lights us up because I mean large caps Obviously, everything's running. Everything's doing good. And I think at some point we will get that Yeah, it's all based on speculation money I talk about this in the videos is like the stocks that we trade these small cap stocks are all based on hype They need like a catalyst. They need people to speculate on them, right? And when the entire market is down in the drain when the entire market's crashing There's not much people to speculate on these stocks So now that the market has slowly rebounded a little bit, obviously, it's not rebound a lot But it's rebounded enough to get people to say, all right, I'm feeling confident in these markets again I'm feeling confident to for lack of a better word Gamble on these small cap stocks and then we're getting these crazy moves in terms of a giant runner I mean, we had HKD the problem with HKD is I don't really know anyone that got stuck short I don't really have retail participation And as we get closer to the end of the year as you guys know November is zombie month, right? November is zombie month So that's going to probably be when we get some crazy move, but you know, it's bound to happen. It's bound to happen you know, it's these are When people are the most caught off guard When people least expect it is when this is going to happen. So in terms of like overall trading man I mean, dude, I can't complain. It's not what it used to be last year But like the MIC process works man, people don't people don't understand that Just being able to walk away at 10 30 might be that missing piece that you've been kind of lacking Or maybe following the side plays the sympathy plays. Maybe that's what you've been training the hot stock short every single day So our process has been proven to work and the reason why our process has been proven to work Is because I stick to it every single day my job as An educator my job as a mentor is to show you what is possible if you follow our strategy So it is in my best interest to follow the strategy because the strategy is proven to work and by me proving that it works Other people can make money. So it's still a great year for me. I'm still making a lot of money this year I'm still doing really well this year and now with that money Instead of last year blowing it on stupid shit this year While we're in recession while we're in quote-unquote depression These are the best times to get rich. This is the best possible time to make money because everything is at a discount So I'm trying just whatever I make from trading Put it to the side and put it into other types of deals all around, you know That's the best way to do it because I think people get too Reliant on their trading income and like as we've seen especially on twitter as of like lately It's gotten a lot pretty quiet because a lot of people who made a lot of money in 2021 or 2020 2021 They either bought a bunch of expensive shit houses cars, which is great. You do do whatever you want But when like you said before when the market slows down and you're you're not getting that same income It's very stressful like how can you a lot of people got lucky bro? A lot of people had no strategy a lot of people had no process A lot of people had no stops and they were rewarded for being an idiot And as you can see bro, I'm confident to say this 90% of traders that made money in 2020 2021 They're gone Yeah, yeah gone gone gone. Yeah easily Yeah, I mean like even if you look on twitter like There's not as many people on fin twit right now as there were in 2020 Everyone used to be an expert bro. You guys remember everyone was an expert. Oh my god. Look at me. I'm making this I'm making that Fuck you guys. I'm a fucking beast all of a sudden, bro All of a sudden now they're like, oh shit. I just lost 80% of my I don't want to say who it is on twitter But there's a guy that you know shows his execution every day shows his win percentage every day And his account is down 80% You know what I'm saying, but his execution is 100% go figure. You know what I'm saying like Like these guys should and these guys are trying to teach people how to make money These guys got lucky for the last two years and you know what? I feel bad for the people that follow these guys and think that they're actually legit Because the saddest part is these guys they could they probably have enough money to last a storm But they're students the people that are trying to learn from them are going broke. They're going broke, man So I'm very proud of what we have at m i c. I'm very proud that our members are staying consistent I'm very proud that you know We're all still making money and you know that brings us to the next fact which is the meet-up the meet-up is next week And this is an unbelievable opportunity to meet me to meet bow If you're struggling in trading if you're not really doing well in trading if you're kind of lonely in trading You know we started m i c because bow and I were very lonely. We were making so much money and we're like Yo, what the hell is the point? All right. What is the point? Why are we even doing this? Like what is it? and then m i c kind of saved our life because now we get to help and mentor people like bro I would have never met you guys if it was not for m i c I would have never had a fucking blacking out what james in new york city Hairy like it's gonna be a great time. Uh, just seeing each other but You know, i'm really excited for the meet-up and i'm really excited that even in these turbulent market times Even in these times of uncertainty, you know, we're still staying clear to the m i c Mission. Yeah, there's always been to help and mentor traders. Yeah 100. I love it. Definitely agree It's probably a great place to kind of wrap up or anything else. You guys want to I mean if this comes out before the meet-up, which I think it should go to myinvestingclub.com slash meet-up It's 100 free. We're losing money renting a venue. We're losing money renting the food We're losing money everything. So like this is probably going to be our last free meet-up guys So this is your opportunity. This is your opportunity to meet us to hang out with us to drink with us to party with us Uh and talk about trading, which is our favorite subject Awesome. All right. Well, I think we'll wrap it up there. Thanks alex. Thanks Thanks everyone and uh, we'll definitely see you and everyone from the next one later