Something Isn't Right With The Stock Market

0:00 The stock market just broke a brand new record high.

0:03 And not just that, we have seen 11 days of the stock market going up in a row,

0:08 which is the longest win streak that we have seen since 2021, 5 years ago.

0:13 And this is happening while the United States is

0:16 in the middle of a war in the Middle East.

0:18 This is happening while gas prices are up 33%.

0:22 This is happening while credit card debt just broke

0:24 a brand new record high in the United States.

0:26 And this is happening while gold prices keep going up.

0:30 Because the stock market heard all this news and said,

0:33 "Well, we don't care that much." So, in this video,

0:36 I want to break down what's really going on in the stock market,

0:38 things you should be worried about, and things you should not be worried about.

0:41 So, let's break this all down.

0:43 A couple of weeks ago, when the markets were getting hit hard once

0:46 the conflict in the Middle East started to get worse,

0:49 one of the things that I was talking about was how when markets go down,

0:53 it creates a great buying opportunity.

0:55 Even though many people were concerned about

0:58 the war getting worse and a recession happening.

1:00 Well, here we are with the war

1:02 continuing going on, blockades continuing to happen,

1:05 oil prices still high, but now markets are going higher.

1:09 Why?

1:10 Because sometimes the stock market can be illogical.

1:14 Sometimes the stock market and the economy do not move in the same direction.

1:18 And that's the thing you want to pay attention to is not just that the IMF,

1:23 the International Monetary Fund,

1:25 just released a new report titled "Global Economy

1:30 in the Shadow of War." And what they said

1:32 in the report is that they believe that the base

1:35 case is that the global economy is going to slow.

1:39 But, if the war continues,

1:41 not only is the global economy going to slow significantly,

1:46 but we're also going to see global inflation rise significantly.

1:50 Now, why does that matter?

1:52 Because there is a term for a slowing economy and high inflation.

1:57 It's called stagflation.

1:59 Now, we haven't seen stagflation in the United States for about 50 some years.

2:05 But, the last time we saw stagflation, it was painful.

2:08 It was painful because we saw a very

2:10 high unemployment while inflation was a problem.

2:14 What does that mean?

2:15 It means that wages were going down, but the prices of things were going up,

2:19 and the stock market was getting hit hard as well.

2:22 During that stagflation era in the 1970s into the 1980s,

2:26 we saw the stock market get cut in half.

2:28 It fell by around 50%.

2:31 And during that period, gold prices were booming.

2:35 Why?

2:35 Because people were concerned about the dollar.

2:37 Money was being printed.

2:39 People were concerned that the dollar was going to lose its value,

2:41 so they turned to gold.

2:43 And during that '70s decade, gold prices boomed while the stock market fell.

2:49 Over the next decade after that, gold

2:52 prices slowed down while the stock market boomed.

2:56 And this is where you, as an investor,

2:58 want to pay attention to what's happening, not get caught up in the noise,

3:01 and understand how you can actually build wealth because, unfortunately,

3:04 a lot of the media out there is in the business of selling hype and emotion.

3:09 That's how they get clicks.

3:11 That's how they make money.

3:12 It's the same thing here on YouTube.

3:13 If it's not an attractive title, if it's not an attractive thumbnail,

3:16 no one's going to watch the video, and it ends up into the YouTube graveyard.

3:21 Well, the reality is you need to understand how money moves.

3:25 That way, you can be a smarter investor

3:27 instead of getting sucked into headlines and emotions.

3:31 Because the reality is markets go up, markets go down.

3:35 There's a lot of concerns in the economy.

3:37 These concerns can definitely move markets down.

3:40 But, the stock market is not always logical.

3:43 Now, we've been covering all this in Market Briefs.

3:45 Again, Market Briefs is my free newsletter for investors,

3:47 where every day my team is working

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3:58 It's read by hundreds of thousands of investors.

4:00 And when you sign up for Market Briefs,

4:02 you're also going to get access to a free

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4:08 as an investor and find hidden

4:10 investment opportunities before they hit the headlines.

4:13 So, if you have not signed up for Market

4:14 Briefs or got the free investing masterclass yet,

4:17 I have that link for you down in the description below.

4:20 So, what's going on right now,

4:21 the big concern because of the war in the Middle East is oil prices.

4:25 And the reason why oil prices are so important is because number one,

4:30 history shows us that most of the time when we have an oil shock,

4:34 it leads to pain in the economy.

4:37 And the times where an oil shock does not lead to pain in the economy,

4:41 that's when the oil shock is very acute,

4:44 meaning it lasts a short period of time.

4:47 So, the question on every investor's mind is how long

4:50 is this war in the Middle East going to last?

4:53 And if it does continue to last longer,

4:56 what is the government going to do in response?

4:59 So, if oil prices go up, that means gas prices become more expensive.

5:03 Well, if gas prices are more expensive,

5:05 now the average American who's already struggling because of inflation now has

5:08 to spend more money to get to work and to go to Chuck-E-Cheese.

5:12 But that's not all.

5:13 Your diesel becomes more expensive.

5:16 And when diesel becomes more expensive,

5:17 your groceries become more expensive because now Walmart has to pay more money

5:21 to transport your avocados from the farm to the warehouse to the store.

5:26 And that's not all.

5:27 When oil becomes more expensive,

5:29 fertilizer becomes more expensive because now farmers have to pay more money

5:33 in order to produce all those vegetables that you want to buy.

5:37 And that's not all.

5:38 When oil becomes more expensive, flying on a plane also becomes more expensive.

5:43 That's why oil prices have such a big impact on the economy,

5:45 and we're already running in an economy where a lot of Americans are struggling.

5:50 How do we know?

5:50 Just take a look at credit card debt because

5:52 credit card debt just broke a brand new record high.

5:56 Now, people don't go into credit card debt because they want to.

5:58 They generally go into credit card debt because they don't have any money.

6:02 And this has been a problem.

6:04 And it's been a problem because of inflation.

6:06 During the 2020 pandemic, the government spent so much money it didn't have.

6:11 And all the money printing that came with the government

6:14 spending led to the value of the dollar falling,

6:18 which led to the prices of things going up.

6:21 And not just that, we saw the prices of things rise faster than wages,

6:26 especially after the pandemic.

6:28 That's why the average American today is making more money,

6:32 but is poorer than they were pre-pandemic.

6:35 Why?

6:36 Because yeah, you're making more money,

6:37 but those dollars don't buy you as much stuff.

6:40 $100 today cannot buy you what $100 could 5 years ago,

6:44 and it definitely cannot buy you what $100 could 10 years ago.

6:48 That's what inflation does.

6:50 So, now we have the situation where since the pandemic,

6:53 inflation has been a problem.

6:55 More and more Americans have been struggling to afford daily life.

6:59 Okay.

7:00 That was established.

7:02 Then came this conflict in the Middle East.

7:04 Oil prices went up.

7:06 And what do a lot of Americans spend money on?

7:09 Gas, energy.

7:11 And so, now all of a sudden,

7:13 the costs to survive just went up because of the conflict in the Middle East.

7:19 And that means now you have to spend more money,

7:21 even if you don't have more money.

7:24 And that's pushing more people into credit card debt because

7:27 a lot of people are already living paycheck to paycheck,

7:29 and now if your expenses go up,

7:31 well, you have to find a way to pay these higher costs,

7:33 which is why more people are turning to credit cards.

7:36 Well, what does that mean from an economic standpoint?

7:39 Because the reality is our economy runs on spending.

7:44 The more money you spend, the more money somebody else makes.

7:47 Like if you walk into Chipotle and you say, "You know what?

7:50 I don't want to buy anything." and you walk out, that's not good for Chipotle.

7:54 They don't make any money.

7:56 But if you walk into Chipotle like a big baller and you say, "You know what?

8:00 Let me get the bowl.

8:01 Let me get the extra meat.

8:02 Let me get the extra guac." they're going to be very happy.

8:05 But who's the person that's actually getting rich

8:08 when you're buying all that extra stuff from Chipotle?

8:10 It's not the workers because we know that employees

8:13 generally don't see their wages rise faster than inflation,

8:18 at least on average if you look at the median numbers or the average numbers.

8:22 But it is the investor.

8:25 Because the owners of Chipotle are the ones

8:27 that are now getting the extra dollars.

8:29 They're getting that profit, which is why inflation makes investors

8:34 richer while the average person gets poorer.

8:37 So, that's been the problem.

8:40 Now, with these higher oil prices,

8:41 people are having to pay more money just to survive,

8:43 so they're turning to credit card debt, but it goes back to the same problem.

8:47 If our economy runs on spending and people have less money to spend,

8:51 what does that mean for the economy?

8:53 Well, if people have to now turn down spending,

8:57 that means certain businesses are going to make less money.

8:59 And if certain businesses make less money,

9:01 well, that can start to hurt the economy.

9:03 Because if Chipotle is making less money,

9:05 now instead of hiring more employees, opening more stores,

9:09 they now have to slow down growth,

9:12 maybe close stores, maybe let some employees go.

9:16 That is a pain in the economy.

9:19 And that's the concern.

9:21 Now, this is where things get a little bit tricky and interesting,

9:24 but I want you to really understand this and pay attention

9:26 to this because normally what happens in this type of situation,

9:31 when the economy slowed down in 2020,

9:33 when the economy slowed down in 2008, when the economy slowed down in 2000,

9:38 the Federal Reserve Bank,

9:39 which is the central bank here in the United States, did the same thing.

9:43 They stimulated the economy.

9:45 Now, how did they stimulate?

9:47 Well, they do two things.

9:49 First, they cut interest rates.

9:52 Then, they print money.

9:54 So, when you cut interest rates, that makes borrowing money cheaper.

9:58 Yes, so the economy's slowing down and now all of a sudden,

10:00 mortgage rates go from 7% down to 3%, what happens?

10:06 Well, first, people start buying more houses because now all of a sudden,

10:10 that $400,000 house seems more affordable because I

10:12 can borrow the money for a whole lot cheaper,

10:15 so the mortgage payments are a lot cheaper.

10:17 So, people buy houses, that means realtors start making more commission checks.

10:21 That means mortgage bankers start to make more commission checks.

10:23 That means title companies start to make more money.

10:25 That means moving companies start to make more money.

10:27 That means construction companies start to make more money.

10:30 So, you can start to see how that impacts the economy.

10:32 But, that's not all.

10:33 If mortgage rates go down, more people say, "Huh,

10:37 I'm sitting on $100,000 of equity in my house.

10:40 It's not doing anything.

10:41 Mortgage rates are cheaper.

10:42 How about we get a new mortgage and we pull out $60,000 of cash

10:47 from my house in a cash-out refinance?" When people do this cash-out refinance,

10:51 now all of a sudden, they have new money.

10:52 When people have this new money that feels almost free, what do they do?

10:56 They spend it.

10:58 Now, you take the $60,000, maybe you go to the BMW dealership,

11:01 maybe buy a boat, maybe buy a vacation, and you start to spend more money.

11:05 And you can start to see now how lower interest rates can drive spending.

11:09 More spending starts to grow the economy.

11:11 But, the other part of this is money printing.

11:14 But, how does money printing actually boost the economy?

11:17 It boosts the economy because if the Federal Reserve Bank spends money,

11:20 prints money, and then they lend it to the government,

11:22 the government can then spend that money by doing

11:25 a bunch of things that they want to do.

11:27 They can send out stimulus checks.

11:29 And we know that when people get stimulus checks,

11:31 it's not to stimulate your wallet, it's to stimulate the economy.

11:35 It's to stimulate the investor's wallet

11:36 because when people get these stimulus checks, people go and spend that money.

11:40 So, they go and spend it at Chipotle, Amazon, Apple.

11:45 And who gets rich?

11:46 It's not the workers.

11:48 It is the owners of Chipotle, Amazon, Apple, and all the other places.

11:53 Those are the investors.

11:54 So, the stimulus checks are really there making the investors richer.

11:57 It's making the rich richer and the average person poorer because

11:59 now that money has to be printed and anytime you print money,

12:02 the value of each dollar goes down.

12:05 Why am I telling you all of this?

12:07 Because what is the average investor thinking right now?

12:11 The investor is thinking,

12:12 "I don't know how long this war in the Middle East is going to last.

12:15 One day I hear that the war is about to end,

12:17 the next day I hear that the war is going to get worse.

12:19 There's a lot of uncertainty." But if oil prices stay high,

12:24 that's going to cause more pain in the economy.

12:26 If there's more pain in the economy, what's going to happen next?

12:30 Well, if there's more pain, the central bank, the Federal Reserve Bank,

12:33 might have to print more money and cut interest rates.

12:36 That's what investors want.

12:38 Because who gets richer when money gets printed?

12:41 Who gets richer when more spending happens?

12:44 It's the investor.

12:45 So, investors are going to look at it this and say,

12:47 "Hmm, what's going to happen two, three,

12:49 four steps down the road if the economy continues to get

12:52 worse because of this war?" But there's one part missing here.

12:56 The part missing is what happens if inflation becomes a bigger problem?

13:01 And that's the concern.

13:03 Because if inflation becomes a bigger problem,

13:06 which it very well might if inflation and oil stay high,

13:12 that's where the Federal Reserve Bank generally raises interest rates.

13:16 In 2022, after facing this huge inflation problem after the pandemic,

13:22 what did the Federal Reserve Bank do?

13:23 They raised interest rates.

13:25 Getting a mortgage went from 2 and 1/2% up to 7 or 7 and 1/2%.

13:31 Why?

13:31 Because of the higher interest rates.

13:35 In the 1970s when we had the inflation problem,

13:39 what did the Federal Reserve Bank do?

13:40 They raised interest rates aggressively.

13:43 Getting a mortgage then was not 5% or 7% or 10% or even 15%.

13:48 Sometimes it was 18% to get a mortgage because

13:51 that was the way that they could fight inflation.

13:54 So, to fight inflation, you raise interest rates.

13:57 And this is that big question and concern that people

14:01 have about the economy and the Federal Reserve Bank.

14:03 Are they going to raise interest rates in order to fight inflation?

14:10 Or are they going to cut interest rates

14:11 and print money in order to boost the economy?

14:16 President Trump has been very vocal.

14:18 He wants lower interest rates.

14:21 He wants a stronger economy.

14:23 The Federal Reserve Bank though is actually not federal.

14:26 It says so on their website.

14:28 And so, up until now, they've been saying, "Yeah, we don't want to cut interest

14:31 rates because we're concerned about inflation." So,

14:34 we don't know what the Federal Reserve Bank is going to do in the future.

14:37 But as of today, they've put a pause on cutting interest rates

14:42 because they're concerned about what's going to happen in the Middle East.

14:45 Now, there's going to be more changes coming

14:46 at the Federal Reserve Bank later this year.

14:48 That's a topic I don't want to get into in this video,

14:51 but we're going to see changes at the Federal Reserve Bank.

14:54 And that's what investors are paying attention

14:56 to, which is where is money printing

14:58 going to go and what is that going to mean for the stock market?

15:01 Now, ultimately, what does this mean for you?

15:03 Of course, I can't tell you what to do because I'm just a random guy on YouTube,

15:05 but a lot of people now get scared.

15:09 We've been seeing people get scared because of all

15:11 the volatility in the stock market in 2026 and 2025,

15:15 but the reality is if you are an investor, which is what I talk about,

15:20 I'm not a trader, I don't know how trading works.

15:23 What you want to be thinking about is what's going to be

15:25 happening in the economy and the stock market 10 years from now,

15:29 15 years from now, 20 years from now.

15:32 Is the economy going to be bigger 15,

15:35 20 years from now, or is it going to be smaller?

15:38 Well, I think it's going to be bigger.

15:40 And if you believe that the economy is going to be bigger,

15:44 then you want to be buying.

15:46 And you want to be buying even

15:47 more aggressively anytime there's a good opportunity.

15:49 What is a good opportunity?

15:50 When people are scared.

15:52 Because when people are scared, they're selling.

15:54 When people are selling, markets are falling.

15:56 When markets are falling, everybody's running away,

15:58 and that's when you want to be buying.

16:01 Now, there is a good chance that we could see a recession.

16:03 There's a good chance that we could see a market crash.

16:05 In fact, I can guarantee you that we're going to see a recession.

16:08 I just don't know when.

16:10 Everybody's in the game of trying to time the markets.

16:13 But when you try to time the markets,

16:14 that's how you lose, because nobody knows what's going to happen tomorrow,

16:17 let alone next week, let alone next month,

16:18 let alone next year, let alone next decade.

16:21 So, instead of trying to predict what's going to happen in the short term, buy.

16:27 Buy assets for the long term.

16:29 And when markets do go down, buy more aggressively.

16:32 You might have heard me say ABB, always be buying.

16:36 If you're subscribed to this channel,

16:37 I'm sure you've heard me say that at some point.

16:39 But also, when markets go down, BTD, buy the dip.

16:44 Buy more aggressively as markets go down.

16:46 The only time you change your investing strategy should be when markets crash.

16:50 And when markets crash,

16:51 that's when you want to come in and buy even more aggressively,

16:53 because that's when you can come in and buy good assets at a discounted price.

16:58 And so, while everybody's trying to predict

17:00 what's going to happen in the stock market,

17:01 and they're trying to trade the market,

17:02 they're trying to do all these fancy things,

17:05 which sound sophisticated, it's really not.

17:07 The average trader is losing money.

17:10 But when you think about it as an investor,

17:12 and you have a longer time horizon, it's much easier to make money.

17:16 Because now what you want to do is you just want to buy good investments.

17:19 And when the markets are crashing, you buy more.

17:21 And when the market crashes more, you buy even more then.

17:25 Then the markets go up, well now you can start to see the value

17:26 of your assets go up even faster because you

17:28 bought some great investments at a discounted price

17:30 and so you get to see higher than average returns.

17:34 And if you can see higher than average returns,

17:36 well now you can have higher than average wealth.

17:39 Because if you keep doing what everybody else does,

17:41 you're going to end up just like everybody else.

17:43 And right now the majority of people unfortunately are broke.

17:46 So it's not a very good strategy.

17:49 But if you stop following what the majority of people do,

17:51 you cut through the noise, well now you can start to see opportunity.

17:56 See most people get scared and they operate on emotion.

18:00 They invest on emotion.

18:03 And that's why many people lose.

18:05 Emotions are the enemy of profits.

18:09 As an investor, you want to be investing

18:10 based off of financials for the long term.

18:14 And if you can cut out the emotion,

18:16 well now you have a real opportunity to build wealth.

18:20 But you got to be able to cut through the noise because right now

18:22 everybody's just caught up on what is the Federal Reserve Bank going to do?

18:25 Are we going to see stagflation?

18:27 Are we going to see a recession?

18:29 Who cares?

18:30 Obviously you want to protect yourself, but as an investor, who cares?

18:34 Buy more when markets go down.

18:37 We know recessions happen.

18:38 They're a part of our economy.

18:39 We've seen 16 recessions in the last 100 years.

18:43 We're going to see another one.

18:44 Nobody knows when.

18:45 I don't know if it's 2026, 2027, 2028, 2029, 2030, 2031.

18:50 I don't know.

18:51 But I do know that when the next recession happens,

18:54 it's probably going to be painful.

18:56 But I also know it's going to create great buying opportunities.

19:00 So what you want to be doing is be preparing.

19:03 Prepare when times are good that will when things go bad,

19:06 you are ready to buy more.

19:08 Now it sounds like a bad thing to say, but it's history.

19:12 It has happened.

19:13 It has happened again and again and again.

19:15 And it's going to continue happening.

19:17 And we get blindsided and upset and angry

19:19 by the same things again and again and again.

19:21 Instead, I want you to understand how it works.

19:24 History doesn't exactly repeat itself, but it does rhyme.

19:29 Markets crashed multiple times in 2026,

19:31 but really they crashed three times in 2025.

19:34 If you remember, there were three tariff announcements in 2025.

19:39 First in February, the stock market crashed and then President Trump said,

19:42 "Oh, tariffs are paused." And markets broke brand new record highs.

19:46 In March, President Trump announced bigger tariffs.

19:49 Markets crashed even harder.

19:51 And then a few days later, President Trump paused the tariffs again.

19:54 In April 2025, President Trump announced liberation day.

19:58 Sweeping global tariffs, the biggest ones we have seen,

20:01 which caused a global market sell-off

20:03 at the fastest rate we saw since the pandemic.

20:06 And then some days later, President Trump eased up on those tariffs,

20:10 markets started breaking brand new record highs again.

20:13 Each one of those times, it created a great buying opportunity.

20:17 Each one of those times we were talking about it here on YouTube.

20:19 Each one of those times people responded by saying,

20:21 "The markets are going to crash.

20:22 Why would you buy?" We saw it happen in 2026.

20:25 We saw it happen in 2022 when markets fell by 20%.

20:28 We saw it happen in 2020 when markets fell by 35%.

20:33 We are going to see a recession eventually, and when the recession happens,

20:36 it's going to be a longer downturn in the markets.

20:38 It's going to be more painful,

20:39 but what I want you to understand is that as an investor,

20:42 emotions are the enemy.

20:45 Cut through the noise.

20:47 Find the opportunity.

20:48 There's always opportunity in the markets.

20:50 You just have to know what your strategy is.

20:52 Stay calm.

20:53 Learn to take a breath.

20:56 And now you can work to actually build wealth instead of freaking

21:00 out when you start to see the news about what's happening.

21:05 Ignore some of the news.

21:07 Pay attention to the actual financials.

21:10 Learn to get financially educated and that's how you can really build wealth.

21:13 Again, if you want to stay up-to-date on what's happening,

21:15 Market Briefs is a free resource I have that for you down in the description.

21:19 And if you got value out of this video, the best thank you is a referral.

21:22 So, if you could, please share this video with a friend,

21:24 family member, colleague, or fellow investor.

21:26 That way we can continue to spread this type of financial education.

21:30 Thank you.

21:30 Our economy is going through some of the biggest

21:33 changes we have seen in our lifetime all in 2026.

21:36 This economic craziness has caused the stock market to go wild

21:40 in 2026 and it's made people scared to invest their money.

21:43 But, do you want to know something else?

21:45 This economic craziness actually creates

21:48 some of the best investment opportunities.