Speaker 1: Are you really getting wealthier or is it all just
Speaker 1: an illusion? Now, if you're invested in the market and
Speaker 1: you're paying attention, now, you know that we've seen almost
Speaker 1: every single asset class make a new all time high
Speaker 1: at the same time right now, gold stocks, crypto, real estate,
Speaker 1: all of them. But while this is happening, most investors
Speaker 1: are feeling like they're falling further behind. And guess what,
Speaker 1: It's true, But why is that? Well, the truth behind
Speaker 1: these new market highs might actually shock you now real quick,
Speaker 1: if you knew the channel. My name is Mark Moss.
Speaker 1: I've been studying analyzing macroeconomic landscape. I've been helping thousands
Speaker 1: of investors navigate them for about a decade. I speak
Speaker 1: of some of the largest financial conferences in the world,
Speaker 1: and so the comments that I see five thousand comments
Speaker 1: a week, the one hundreds of people I talk to at
Speaker 1: these events, they all ask a very similar question or
Speaker 1: they tell me the same similar problem. But the good
Speaker 1: news is once you understand this, you can fix it,
Speaker 1: because yes, you can build well faster, but only once
Speaker 1: you understand what I'm going to break down. So in
Speaker 1: this video, we're going to break down why do market
Speaker 1: highs not actually translate to actual wealth, health increases, which
Speaker 1: assets are actually outperforming and which ones are just faking it,
Speaker 1: and most importantly, how you can adjust your strategy for
Speaker 1: actual financial growth. So stay tuned, because what you think
Speaker 1: you know about your investments is about to change. It's
Speaker 1: about to be turned upside down, and by the end
Speaker 1: of this video you're going to have the insights and
Speaker 1: strategies you need to secure your financial future. So let's
Speaker 1: go all right, So we're going to talk about the
Speaker 1: illusion of wealth, because there's something that looks like it's there,
Speaker 1: but it's not. What am I talking about. Let's say
Speaker 1: hypothetically that I'm hiking, I'm climbing maybe the tallest mountain
Speaker 1: in the world. Maybe I'm climbing Mount Everest, and I'm climbing,
Speaker 1: and I'm climbing and climbing, and I think the top
Speaker 1: is right there, and I finally get to where I
Speaker 1: taught I think the top is in heavy clouds, and
Speaker 1: I get to up the top and I realize that
Speaker 1: I'm not at the peak. As a matter of fact,
Speaker 1: I still got a long way to go. You see,
Speaker 1: not everything is always as it seems, And so as
Speaker 1: these assets continue to show us this new peak. A
Speaker 1: lot of times we're being faked out. Let me break
Speaker 1: this down for you. So we see all assets at
Speaker 1: all time highs right now at the same time. Now,
Speaker 1: this is not supposed to happen. So stock indexes are
Speaker 1: at all time highs, golds at all time highs. Real
Speaker 1: estate just made a new all time high, bitcoins back
Speaker 1: into all time high territory. And again that's not supposed
Speaker 1: to happen at the same time. So what is going on. Well,
Speaker 1: we have to understand what's really happening. I've put out
Speaker 1: some tweets by the way, for now follow me on Twitter,
Speaker 1: check me out at one Mark Moss. But I talked
Speaker 1: about that maybe the asset bubble isn't an asset bubble.
Speaker 1: Maybe the bubble is not in the asset itself, the
Speaker 1: bubble is in the denominator. Let me show you what
Speaker 1: I'm talking about. I got a bunch of charts. Let's
Speaker 1: run through this as quick as we can. Here. So
Speaker 1: here we have the Consumer Price Index CPI, and of
Speaker 1: course it keeps going higher and high and higher. Gas
Speaker 1: goes up, food goes up, travel goes up. Everything's going higher.
Speaker 1: But as prices go higher. What's really happening is your
Speaker 1: purchasing power is going dead. So you already know this.
Speaker 1: I don't need to go deep into this. But it's
Speaker 1: not that things are getting more expensive. It's that the
Speaker 1: purchasing power of your dollar, your currency units have gone down.
Speaker 1: You can see how they work in perfect unison. Now
Speaker 1: you have to understand that. If you want to understand,
Speaker 1: you're investing in building wealth. Now, why is it doing this?
Speaker 1: Why are those purchasing power units going down? Well, it's
Speaker 1: because the government continues to increase their debt and look
Speaker 1: at this trend line growth difference. As a matter of fact,
Speaker 1: it took a few hundred years to get to one
Speaker 1: trillion in debt and now we're adding it about every quarter.
Speaker 1: And so as they print these more currency units, they
Speaker 1: buy you less and less, so they go down, but
Speaker 1: the price goes up. Now, once you understand that, you
Speaker 1: can start to understand a couple other things. For example,
Speaker 1: why does it feel like you're actually getting more poor
Speaker 1: when you think on paper, you're getting more wealthy. I
Speaker 1: make more money than I've ever made before, right, my
Speaker 1: assets are worth more than they've ever been. So why
Speaker 1: is it that I feel poor. And the reason why
Speaker 1: is because in purchasing power you're actually going down. I'm
Speaker 1: going to show you exactly at which rate and how
Speaker 1: this mechanic works. But this is why, over time, your
Speaker 1: purchasing power is going down, and so as your pursuing
Speaker 1: power is going down, your rent is going up. This
Speaker 1: is exactly what's happening. And if you want to understand why,
Speaker 1: or more importantly mechanically, how, this is the chart you
Speaker 1: want to look at. So when the governments print more money,
Speaker 1: deficit spending, borrow more, et cetera, it increases the money
Speaker 1: supply in the world what we might call liquidity, the
Speaker 1: liquidity in the system in order to keep the system moving.
Speaker 1: And this is a chart of the S and P
Speaker 1: five hundred and global liquidity. And what we can see
Speaker 1: is that the S and P five hundred moves almost
Speaker 1: exactly with global liquidity, as a matter of fact, about
Speaker 1: ninety five percent correlation. So what does this mean. It
Speaker 1: means it's not really the S and P five hundred
Speaker 1: going up into a bubble. It's the bubble in the
Speaker 1: money supply that's pushing it up, you see. So if
Speaker 1: it's only going up at the rate of money growth,
Speaker 1: you're not actually getting ahead. And this is the problem.
Speaker 1: That's what's really driving prices and so the difference of
Speaker 1: assets and wages. So what we're seeing is assets, the
Speaker 1: S and P five hundred, the real estate in the
Speaker 1: United States, et cetera, are going up at the rate
Speaker 1: of money inflation monetary increase. And what is that, Well,
Speaker 1: it's about eight or nine percent. But your wages go
Speaker 1: up with the rate of growth of GDP growth, which
Speaker 1: is right now about one point six. So your wages
Speaker 1: are going up at one point six but the prices
Speaker 1: of everything are going up at eight or nine percent.
Speaker 1: That's why you're feeling this divide. Okay, but there are
Speaker 1: some golden tickets in here. Okay. Not everything moves up
Speaker 1: the same. Obviously you understand this. Why did TVs and
Speaker 1: computers get cheaper while gasoline and state got more expensive,
Speaker 1: et cetera. Right, So not everything moves up the same.
Speaker 1: Let's run through some different charts now just to illustrate this.
Speaker 1: Let's just take a look at this. So in two
Speaker 1: thousand and eight, when QE quantitative easing started, you can
Speaker 1: see the Fed's balance sheet, the liquidity, the money they
Speaker 1: printed put the liquid in the system. It increased massively,
Speaker 1: So at this point in time, two thousand and eight
Speaker 1: is when everything started taking off. Now again, the S
Speaker 1: and P five hundred basically is just like a proxy
Speaker 1: for inflation. It basically represents the money supply increases. So
Speaker 1: that's not where you're going to make any money. And
Speaker 1: unfortunately for most people, they're just passively investing. As a
Speaker 1: matter of fact, the rise of passive investing has only
Speaker 1: gotten bigger and bigger and bigger. My money goes from
Speaker 1: my paycheck into my mutual funds, my four oh one K,
Speaker 1: and they just put it into the S and P
Speaker 1: five hundred index. That's why you're not making any money.
Speaker 1: Let's take a look at some of this. If I
Speaker 1: look at the S and P five hundred, and I
Speaker 1: divide it by the increase in the money supply. So
Speaker 1: what I can see is there was a peak right
Speaker 1: here back in two thousand and it's never reclaimed its high.
Speaker 1: So since two thousand, your S and P five hundred
Speaker 1: index that you're probably invest into has never reclaimed its high.
Speaker 1: I mean, it's gone up and down, up and down,
Speaker 1: but it's basically flat. Look how flat it's been right
Speaker 1: here now? If we look at the S and P
Speaker 1: five hundred priced and other things. So, for example, the
Speaker 1: S and P five hundred is an asset, just like
Speaker 1: gold or your house or your food is an asset.
Speaker 1: So we can look at your house. How many US
Speaker 1: dollars is your house worth, how many ounces of gold
Speaker 1: is your house worth? How many barrels of oil is
Speaker 1: your house worth? How many bitcoins is your house worse?
Speaker 1: We can look at it price to different things. Now,
Speaker 1: I say this all the time. We don't want money.
Speaker 1: We want the things, the goods and services money buys us.
Speaker 1: We need commodities, we need real things. We need gas,
Speaker 1: we need energy for our house. Right, and so if
Speaker 1: we take a look at the S and P five
Speaker 1: hundred priced in commodities things that we really need, we
Speaker 1: can see that again it's down. So this is why,
Speaker 1: even though your index says it's that new all time highs,
Speaker 1: you feel more poor than ever, because in terms of
Speaker 1: real things that you really need, it's actually losing money.
Speaker 1: You're actually going broke. Now, let's look at it a
Speaker 1: couple other ways. As I said, the case Shiller index
Speaker 1: the United States housing market just hit a new all
Speaker 1: time high last week. Well, did it really, because what
Speaker 1: we can see right here, since the year two thousand,
Speaker 1: I'm sorry, two thousand and eight, homes have never recovered
Speaker 1: their high. Now on paper, yes, my home has never
Speaker 1: been worth more, but when you adjust it for the
Speaker 1: money supply, for the increase in the money, it's actually
Speaker 1: down forty eight percent since two thousand and six, not
Speaker 1: two thousand and So since two thousand and six, my
Speaker 1: home has actually lost forty eight percent of value compared
Speaker 1: to the increase in the money supply. Let's look at
Speaker 1: some other assets though. So the S and P. Five
Speaker 1: hundred is not a good place to be. Real estate
Speaker 1: is not a good place to be. But let me
Speaker 1: say this, first of all, real estate works. First of all,
Speaker 1: real estate would be a horrible investment for us if
Speaker 1: we had to pay cash for homes, but we don't.
Speaker 1: We use leverage, and so that leverage allows us to
Speaker 1: make a higher return. We also get what we call
Speaker 1: inflation debt destruction, so that we can lock in thirty
Speaker 1: year loans. In America, other countries not so lucky that
Speaker 1: inflation destroys that. And then if it's a rental property,
Speaker 1: I let someone else pay it off for me. So
Speaker 1: real estate works and also tax efficiency as well. So
Speaker 1: real estate works because of those four other factors. But
Speaker 1: if I had to pay cash, as I showed you,
Speaker 1: it'd be a horrible investment. But not everything is lost.
Speaker 1: Don't worry, because there's golden tickets. So for example, gold,
Speaker 1: gold is up forty eight percent even in the face
Speaker 1: of all the money printing. So not only has gold
Speaker 1: been able to overcome the loss of the money printing,
Speaker 1: it's up forty eight percent. Sounds pretty good. And then
Speaker 1: what we really have going on is a tech narrative,
Speaker 1: and so the NASDAK, not the SNP five hundred, The
Speaker 1: NASDAK represents most of the tech stocks, and we can
Speaker 1: see since twenty twenty right here, it's up ninety percent
Speaker 1: when adjusted for the money supply, so it's overcome the
Speaker 1: debatement of the money and it's gone up ninety percent
Speaker 1: in real terms. Pretty good, we're getting warmer. What else, well, again,
Speaker 1: following that tech narrative, we can see Bitcoin is up
Speaker 1: since twenty twenty nine hundred undred percent, so it's overcome
Speaker 1: the debasement and it's gone up nine hundred percent just
Speaker 1: since twenty twenty. Then we have in Nvidia, which is
Speaker 1: the most incredible company we've ever seen in the whole
Speaker 1: history of the world. Makes no sense, but here we
Speaker 1: are driven by the tech ai narrative. Since twenty twenty,
Speaker 1: it's up eighteen hundred percent, overcoming the debasement. Now, if
Speaker 1: we look at this, remember I was talking about how
Speaker 1: liquidity is the most important thing to watch and understand,
Speaker 1: and I showed you how liquidity basically moves the S
Speaker 1: and P five hundred up in exact perfect terms. But
Speaker 1: if we take a basket of monetary hedges, which is
Speaker 1: basically gold and bitcoin, we can see that there's only
Speaker 1: an eighty percent correlation. So times like this it's overperformed, overperformed, overperformed,
Speaker 1: and yes it underperforms as well. What this basically tells
Speaker 1: us that for every ten percent increase in global liquidity,
Speaker 1: the sensitivity ratio for gold is one point four, which
Speaker 1: means it goes up by about fourteen percent. The sensitivity
Speaker 1: ratio to biccoin is eight point ninety five, which means
Speaker 1: bitcoin goes up by about ninety percent. So every ten
Speaker 1: percent increase in liquidity, we see bitcoin go up by
Speaker 1: ninety percent. That's exactly what you're seeing here. So again
Speaker 1: this is why you're not feeling it if you don't
Speaker 1: understand this, all right, So what we're really seeing is
Speaker 1: that purchasing power is what we have to look at
Speaker 1: things in, not the value, not the nominal value, not
Speaker 1: that my S and P five hundred index has never
Speaker 1: been higher or my house never been higher, but the
Speaker 1: purchasing power of that. So, for example, in two thousand
Speaker 1: and eight, we saw gold come down with stocks, but
Speaker 1: even though gold came down in US dollar terms, it
Speaker 1: could still buy me more things. So even though the
Speaker 1: US dollar valuing down, the purchasing power went up. So
Speaker 1: we have to retrain our brain to look at things differently. Now,
Speaker 1: like I said, we're seeing assets basically move up at
Speaker 1: the rate of the money supply increase, which is eight
Speaker 1: or nine percent, but wages go up with GDP. Now, GDP,
Speaker 1: as you can see right here, is way down. Now.
Speaker 1: This is since twenty twenty one. Ish. Twenty twenty one,
Speaker 1: we had a seven percent GDP back here in twenty
Speaker 1: t one five percent, six percent, seven percent. Now we're
Speaker 1: at one and a half ish who knows what the
Speaker 1: real numbers are, And you can see we've been pretty
Speaker 1: flatlined for the last several years at the two percent range.
Speaker 1: So while everything's going up by ten percent fifteen percent,
Speaker 1: your wages are not keeping up. So the important thing
Speaker 1: to understand is that we want to look at the
Speaker 1: purchasing power. And when we're looking at our assets, if
Speaker 1: we're only looking at them in the currency, whether that's euro, yen, dollars,
Speaker 1: et cetera, you're being faked out. All these paper gains
Speaker 1: are not real. So knowing this, what's the strategy. Well,
Speaker 1: the strategy is number one, you need to understand that
Speaker 1: you can't just use the unit of account, being that
Speaker 1: via currency dollar, y in euro, et cetera. You need
Speaker 1: to look at these assets in relation to other assets,
Speaker 1: a basket of assets, so again how many ounces of
Speaker 1: how many bitcoin, how many barrels of oil, and then
Speaker 1: you can start to understand the purchasing power of those things.
Speaker 1: You have to understand that we need to keep an
Speaker 1: eye on the money supply, of the liquidity, and not
Speaker 1: the inflation. So the government's like CPI CPI CPI inflation, inflation, inflation,
Speaker 1: that's not what's really driving prices. So again, back when
Speaker 1: everybody thought the market was going to crash down, homes
Speaker 1: were going to crash. Stocks were going to crash. If
Speaker 1: you remember back to late twenty twenty two, early twenty
Speaker 1: twenty three, I was making videos say no, they're not
Speaker 1: going to crash. Why because I was watching the money supply.
Speaker 1: The next strategy is diversification. Now, diversification is something that
Speaker 1: you've been taught by the likes of Ray Dalio and
Speaker 1: of course your mutual fund and your four one ky advisor.
Speaker 1: The problem is that doesn't work. It's not working right now.
Speaker 1: Warren Buffett would tell you to put all your eggs
Speaker 1: in one basket and watch the heck out of that basket.
Speaker 1: And so diversification is really diversification right now, with the
Speaker 1: stage that we're in with rapid monetary based increasing, we
Speaker 1: want to go into assets that will hedge against that.
Speaker 1: And that's specifically this tech narrative again, AI crypto narrative
Speaker 1: with some gold, and so we want you to concentrate
Speaker 1: into that. It's not the time to diversify across the
Speaker 1: broad index of vestment P. Five hundred because the s
Speaker 1: and P. Five hundred ain't going up all right, So
Speaker 1: we don't want to diversify. That's to diversify. We want
Speaker 1: to concentrate then, as I said, we want to ride
Speaker 1: the tech trend AI and bitcoin. It's why I have
Speaker 1: a bitcoin fund. We invest across the entire bitcoin industry,
Speaker 1: all the businesses that are building on and around bitcoin,
Speaker 1: and we're also using AI and a lot of the businesses.
Speaker 1: And then also you can think non traditionally. Obviously I've
Speaker 1: already made the case traditional investments, the S and P
Speaker 1: five hundred it ain't working for you. So we want
Speaker 1: to think non traditionally. So that might be peer to
Speaker 1: peer lending for example, peer to peer businesses. Obviously, yes,
Speaker 1: invest into your own business is going to be the
Speaker 1: highest investment in the you can make. Investing into yourself
Speaker 1: for sure, if you need that. Private equity has been
Speaker 1: outperforming the S and P five hundred by several hundred times.
Speaker 1: Venture capital. Again, I have a bitcoin fund, so we
Speaker 1: invest into that side as well. And then yes, as
Speaker 1: I said yourself, the thing is with investing into yourself
Speaker 1: is no matter what happens to the market, you can't
Speaker 1: take away the improvements you've put into yourself. So anyway,
Speaker 1: hopefully this makes sense. This is why you're being faked out.
Speaker 1: The gains you're seeing on paper are not real. And
Speaker 1: if you don't learn to see this differently and learn
Speaker 1: how to measure it differently, you're never going to get ahead.
Speaker 1: If you continue to diversify against the basket of things
Speaker 1: that are losing value, you're going to keep losing value.
Speaker 1: But if you concentrate into the trends, you're going to
Speaker 1: get ahead. Let me know what you think about this.
Speaker 1: Are you ready to diversify across the basket or are
Speaker 1: you going to concentrate. Let me know diverse fi or
Speaker 1: concentrate in the comments down below. Of course, as always,
Speaker 1: if you like this video, give me thumbs up, and
Speaker 1: if you don't, you can give me thumbs down. That's okay,
Speaker 1: but at least tell me why in the comments, and
Speaker 1: don't forget to subscribe while you're here. That's what I
Speaker 1: got to your success. I'm out