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Speaker 1: Technological breakthroughs cause all kinds of ripples through the financial markets,

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Speaker 1: and not really in the way you would think. When

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Speaker 1: we go back and look at every major technological breakthrough

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Speaker 1: from the automobile all the way to now AI, they

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Speaker 1: have these hiddens financial ripples that could either make or

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Speaker 1: break your financial future. Now, I learned this as a

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Speaker 1: young investor starting out during the late nineties dot com bubble,

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Speaker 1: and then I started a tech company after that crash.

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Speaker 1: I went on to have a big fortune five hundred exit,

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Speaker 1: and now I'm a partner in a venture capital fund

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Speaker 1: and we use these cycles to help chart the future.

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Speaker 1: Now spoken all around the world on the power of

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Speaker 1: understanding these technology cycles and how they're playing out today.

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Speaker 1: And guess what, it always works out the same way. Now,

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Speaker 1: tech advancements have a huge impact on your investments. And

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Speaker 1: while everyone's worried about massive unemployment and impending recession that

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Speaker 1: AI could potentially cause, there's a hidden force of play

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Speaker 1: that's set in the stage for something much bigger and

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Speaker 1: much more unexpected. But the real question for us is

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Speaker 1: what does this mean for us as investors? So in

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Speaker 1: this video, I'm going to break down how technological innovations

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Speaker 1: lead to more than just efficiency gains. We're going to

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Speaker 1: look at the short term and the long term economic impacts,

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Speaker 1: explore how they trigger money printing, and most crucially, show

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Speaker 1: you why these shifts could actually cause asset prices to skyrod,

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Speaker 1: but only in certain types of assets. So stay tuned

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Speaker 1: because what you're about to learn could completely change the

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Speaker 1: way you view the market and guide your next big

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Speaker 1: investment move. So let's go all right, we're about to

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Speaker 1: break this down, so let's just jump right in. Now.

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Speaker 1: The first thing you have to understand is that everything

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Speaker 1: happens in cycles. We have summer, spring, winter, fall, right,

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Speaker 1: we have boom and bust. Everything has cycles, and part

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Speaker 1: of the reason why this goes that's the way the

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Speaker 1: world's set up, but also human nature takes things too

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Speaker 1: far and back the other way. But specifically, we're talking

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Speaker 1: about technology cycles, and more specifically technological revolution cycles. Okay,

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Speaker 1: so they always happen in a very predictable way, and

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Speaker 1: if you understand this, this is going to be the

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Speaker 1: key to you unlocking potentially generational wealth. That's the way

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Speaker 1: I see it. Okay, let's break this down. So the

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Speaker 1: first thing is there's all types of cycles, four year cycles,

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Speaker 1: eight year cycles, thirty year cycles, two and a fifty year cycles.

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Speaker 1: This is a fifty year cycle. Now I call this

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Speaker 1: a technological revolution cycle. You might have heard it called

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Speaker 1: the kwave cycle, Condroit and Wave. They happened forty to

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Speaker 1: sixty years. I think it happened about every fifty and

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Speaker 1: we can trace this back for hundreds and hundreds of years,

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Speaker 1: and really since we all pretty much lived in dirt

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Speaker 1: and brick houses. So we have right here the industrial

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Speaker 1: revolution that was in seventeen seventy one seventeen eighty ish,

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Speaker 1: and that was the first time we had like mechanized

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Speaker 1: machines that could do the work of five thousand men.

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Speaker 1: But what did those five thousand men do? Well, turns on,

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Speaker 1: turns out, they went and did science, medicine, engineering, things

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Speaker 1: that we needed. About fifty years later, steam engines in

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Speaker 1: the railways, about fifty years later, steel electricity, heavy equipment,

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Speaker 1: about fifty years later, oil and automobile production. About fifty

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Speaker 1: years later we were out the micro trip, which brought telecom, telecomunityations,

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Speaker 1: personal computers, and the Internet. And if you're doing the math,

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Speaker 1: about fifty years later puts us right here today so

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Speaker 1: we can trace this out and we can see exactly

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Speaker 1: what happens here, which helps us plan our future. Now,

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Speaker 1: the important thing to understand about these is they all

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Speaker 1: happen in a pretty predictable cycle. So they happen again

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Speaker 1: over a fifty year period, and they work like this.

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Speaker 1: So you have this old technology that sort of dying

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Speaker 1: and the new technology picks up and takes off. It

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Speaker 1: overlaps like that, so we sort of have this big

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Speaker 1: bang bang this iteration where it takes off. Then we

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Speaker 1: have the surge, and then we have this chasm. You

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Speaker 1: might have seen the chasm. We have to cross the chasm,

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Speaker 1: and then we have the deployment phase I project that

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Speaker 1: we are right about here in this current phase. So

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Speaker 1: I'll tell you what this is in a second. But

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Speaker 1: we are getting going, which we can see how the

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Speaker 1: markets are evolving based out of the technologies that we

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Speaker 1: have today. But the thing that we want to break

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Speaker 1: down specifically about the market and as investors to understand

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Speaker 1: is that it causes disruption, something we know called creative destruction.

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Speaker 1: The new creativity destroys the old way and it replaces

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Speaker 1: an old way. And so for example, when automobiles were created,

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Speaker 1: a technological revolution in nineteen oh eight. It replaced the

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Speaker 1: horse and the buggy. So the horse and buggy went

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Speaker 1: down and the cars went up. Now, the part of

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Speaker 1: that I want to show you here is that this

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Speaker 1: happened in about a decade, all right, So what happens

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Speaker 1: really really fast, and each new one happens that much

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Speaker 1: faster because it builds on the one of the one previous.

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Speaker 1: So cars replaced horses in this example. But the question

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Speaker 1: is now for the one that we're going into now,

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Speaker 1: which I'll break down for you, is are humans the horses?

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Speaker 1: We can see this article that just came out a

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Speaker 1: few months ago basically said that that now we are

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Speaker 1: the horses the disruption of labor by humanoid robots. So

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Speaker 1: now we have robots doing the labor of humans. We

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Speaker 1: have self driving taxis all throughout the United States that

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Speaker 1: are replacing the work of humans, and of course AI

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Speaker 1: in businesses is replacing the work of humans. And so

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Speaker 1: are we the disruption now? And what does that do

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Speaker 1: to us? What is that due to financial markets? Okay,

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Speaker 1: we're going to answer that, But what we really want

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Speaker 1: to think about is over the long term, of course,

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Speaker 1: technology boosts growth because For example, technology is something as

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Speaker 1: simple as carrying a brick. If I had to carry

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Speaker 1: bricks across a distance, and maybe I need to get

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Speaker 1: a whole bunch of people to carry bricks. But then

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Speaker 1: technology human ingenuity. I create a wheelbarrow. Now I can

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Speaker 1: put six bricks into a wheelbarrow, and now one person

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Speaker 1: could do the work of six people. So technology always

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Speaker 1: boosts efficiency, and it's no different this time. Of course,

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Speaker 1: the telephone made it more efficient than writing that letter.

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Speaker 1: And today I can video conference instead of having to

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Speaker 1: fly across the country. So each one boost efficiency. And

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Speaker 1: today we're seeing the boost of AI and really what

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Speaker 1: I'm calling decentralized technologies. Yes, AI is centralizing in a

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Speaker 1: sense like who controls the LLM or who feeds it?

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Speaker 1: Although we're seeing lots of competing ones the rise of

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Speaker 1: centralizing ones. But the way that I'm looking at it

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Speaker 1: is now one person could do the work of ten,

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Speaker 1: twenty fifty, one hundred people. Sam Altman said that we'll

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Speaker 1: with AI, now we'll see the first single person company

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Speaker 1: become a billion dollar evaluation. And so now instead of

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Speaker 1: needing hundreds and hundreds of people in a giant corporation,

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Speaker 1: I have one little business and I can be anywhere

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Speaker 1: in the world. So it's also decentralizing. But we can

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Speaker 1: see right here that there will be almost one hundred

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Speaker 1: million people working in the AI space just by next

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Speaker 1: year alone. So on one side, there's lots of prosperity,

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Speaker 1: lots of growth, but maybe a lot of low level

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Speaker 1: jobs get replaced. It says by twenty twenty five, proxy

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Speaker 1: ninety seven million people will be necessary to fill the

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Speaker 1: work demands of the surgeon industry. So again, in the

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Speaker 1: Industrial Revolution, back in the seventeen eighties, a machine did

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Speaker 1: the work of five thousand men. But what do those

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Speaker 1: men do now? They no longer need to be in

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Speaker 1: the field picking cotton or beans or whatever it was.

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Speaker 1: So what do they do. Well, it turns out, like

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Speaker 1: I said, they went to do higher value things, and

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Speaker 1: so these are higher value jobs. That's a bonus for

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Speaker 1: you if you're a worker. You can learn new skills,

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Speaker 1: you can make more money. It also boosts efficiency, So

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Speaker 1: we can see AI expected to improve employee productivity by

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Speaker 1: forty percent. That's a massive gain forty percent, so, and

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Speaker 1: that's by twenty thirty five. So what happens when workers

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Speaker 1: get more efficient? Well, then businesses get more efficient. They

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Speaker 1: don't need as many workers, they don't need to spend

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Speaker 1: as much time to get the same output. When that happens,

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Speaker 1: what do you think happens. Well, what we've seen in

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Speaker 1: the past is we see massive gross or boost in

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Speaker 1: corporate profits. Obviously, right corporations lower their expenses, they don't

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Speaker 1: need as many people, and their revenues or the profitability rise.

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Speaker 1: So we can see this over a long period of time.

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Speaker 1: Technology hadn't really been changing much. You can see the

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Speaker 1: difference right here. But then in the eighties we started

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Speaker 1: getting you know, some big businesses started using computers things

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Speaker 1: like that, and we could see the productivity going up.

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Speaker 1: But right here in two thousand, back to the dot

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Speaker 1: com boom bust, we can see that everything changed right

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Speaker 1: here and we went on a completely new trajectory. And

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Speaker 1: now with the rise of AI and decentralized technology that

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Speaker 1: we're on right now, as I said, we're starting one

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Speaker 1: as of about a year ago, and you can see

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Speaker 1: how much faster things are taking off right now. Okay,

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Speaker 1: So now that you understand that, let's take a look

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Speaker 1: at short term and long term. Okay, So on the

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Speaker 1: short term, what happens though, is there's a short term pulse.

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Speaker 1: So immediately there's this mass new productivity, right, and what

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Speaker 1: happens is we get fast gains in productivity, but unfortunately

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Speaker 1: lots of people get displaced. So what we can see,

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Speaker 1: again going back to the industrial revolution, creating the machine

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Speaker 1: that can do the work of five thousand men, all

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Speaker 1: those people went out of work temporarily, but then they

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Speaker 1: learn new skills and they got higher paying jobs. But

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Speaker 1: in the short term they were all out of work.

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Speaker 1: And so when the horses or when the car replaced

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Speaker 1: the horses, all the buggy makers and all the horse

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Speaker 1: breeders went out of work. But then they found new jobs,

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Speaker 1: and so each one sort of has this short term pulse.

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Speaker 1: Now we can see this charted out when the Internet

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Speaker 1: jumped up. But we had sort of two things that

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Speaker 1: happened in the year two thousand. We had the rise

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Speaker 1: of the Internet, which, of course, as I said, made

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Speaker 1: things much more efficient. I can now buy things from

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Speaker 1: anywhere in the world without having to travel there. But

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Speaker 1: we also saw China enter the WTO at the same time,

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Speaker 1: and so lots of jobs went to China. So we

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Speaker 1: saw this massive drop in employment. So we had this

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Speaker 1: huge drop in people working. So what happens when that happens, well,

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Speaker 1: as you might imagine in this job switching, job loss,

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Speaker 1: job switching area, which let me say just side note,

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Speaker 1: I'm not one of the people that thinks that AI

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Speaker 1: is going to replace all humans and we don't need

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Speaker 1: to work anymore. As I said, it loses some jobs,

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Speaker 1: but it opens u up to do higher value task.

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Speaker 1: We've seen that in every single technology cycle that's ever

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Speaker 1: been there. Here's the problem that I see, though, I'm

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Speaker 1: just going to throw this outside note number one. In

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Speaker 1: the past, in the Industrial Revolution, when electricity replace candles

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Speaker 1: as light, when automobiles replaced horses and buggies. In those environments,

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Speaker 1: we did not have a giant welfare state, and so

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Speaker 1: people were forced to go learn new skills and forced

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Speaker 1: to up level their lives. That's a good thing because

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Speaker 1: they got higher value, higher paying jobs. We move society forward.

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Speaker 1: I'm afraid today with so many people dependent on the government,

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Speaker 1: they're talking about ubi welfare, all these different types of

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Speaker 1: things that maybe people aren't as incentivized to go learn

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Speaker 1: these new skills. Today, people like, well, I'm out of

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Speaker 1: a job. I need someone to take care of me

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Speaker 1: as opposed to like you're a human, you can learn

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Speaker 1: new things. So that's my bit of advice. And for

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Speaker 1: those of you that are motivated, this could be a

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Speaker 1: massive opportunity for you to up level your life. But

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Speaker 1: back to the point of this in our investments, so

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Speaker 1: we have a fasking, we're going to have a lot

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Speaker 1: of job losses as we go through this switching period

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Speaker 1: because of the government intervention. It could take longer than

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Speaker 1: in the past. When that happens, what happens next, second, third,

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Speaker 1: fourth order, Thinking, well, if we have lost a lot,

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Speaker 1: a big job loss, well, then we have a decline

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Speaker 1: in wages, so now they're not making as much money. Well,

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Speaker 1: if they don't make as much money, what happens, Well,

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Speaker 1: then they're not paying any taxes. They start to see

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Speaker 1: the problem. And if we have a loss of jobs

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Speaker 1: and a loss of taxes, then what happens, Well, the

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Speaker 1: government runs in to solve and see issues. Their income

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Speaker 1: goes down, but at the same time, their expenses don't

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Speaker 1: go down. As a matter of fact, their expenses go

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Speaker 1: up because now they have to help support all these people,

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Speaker 1: like we saw in twenty twenty sending out trillions of

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Speaker 1: dollars of stimmy at the same time as their wealth

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Speaker 1: is going down. Now we can see this right here

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Speaker 1: where this is from the United States government, the CBO

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Speaker 1: Congressional Budget Office, and they're projecting here we are twenty

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Speaker 1: twenty three, twenty twenty four. Right here, they're projecting the

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Speaker 1: debt and the deficit to continue to skyrocket. And when

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Speaker 1: I say skyrocket, I mean like literally skyrocket. So that

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Speaker 1: means they're going to have to run at a bigger deficit.

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Speaker 1: That means they're gonna have to run more debt. That

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Speaker 1: means they're going to have to print more money. Okay.

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Speaker 1: The paradox in is that a productivity pulse, industrial machine,

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Speaker 1: a horse and buggy, or a car I should say,

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Speaker 1: internet phones, personal computers, each one of those, each one

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Speaker 1: of those pulses creates a deflationary shock because people go

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Speaker 1: out of work and spending goes down. But the paradox

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Speaker 1: is this deflationary shock creates more liquidity needed, so the

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Speaker 1: governments are going to have to step in and fire

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Speaker 1: up those money printers, fill those things up with ink,

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Speaker 1: and just let them run hot. As Jerome Power would say. Okay, now,

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Speaker 1: sovereigns the governments, the central banks, they're going to do

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Speaker 1: what they do. And what do they do? Well, what's

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Speaker 1: the saying, If all you have is a hammer, the

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Speaker 1: whole world looks like a nail. And I guess for

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Speaker 1: the sovereigns, if all you have is a money printer,

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Speaker 1: then everything looks like it could just be papered over.

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Speaker 1: And so that's exactly what we would expect them to do,

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Speaker 1: and we expect them to do that because that's what

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Speaker 1: they do. So here we have remember I showed you

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Speaker 1: back in two thousand and now here we have two

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Speaker 1: thousand and eight, when we had this massive deflationary shock.

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Speaker 1: What did the central banks do? Well? They fired up

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Speaker 1: the money printers. Look at the rate of growth of

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Speaker 1: the money supply. Here the FED balance sheet, and look

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Speaker 1: how it absolutely exploded. They do what they're going to do. Now.

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Speaker 1: Of course, when that happened, what does that do? Well?

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Speaker 1: You can see this is corporate profits after tax that

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Speaker 1: had been pretty flat, and right about here two thousand

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Speaker 1: and eight, we had the productivity boom. Here in two

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Speaker 1: thousand corporate profits started going up the money printer and

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Speaker 1: we've been up ever since. And we know this. You

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Speaker 1: see me talk about this all the time. If you

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Speaker 1: don't understand global liquidity, you're not going to understand why

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Speaker 1: markets are going up and down. And as the liquidity,

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Speaker 1: as the money supply, continues to expand. The black line,

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Speaker 1: I'm sorry, the orange line. The black line is the

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Speaker 1: S and P five hundred. They move in about ninety

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Speaker 1: five percent correlation, so you can see they're moving up

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Speaker 1: almost exactly. So when the government is going to print

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Speaker 1: the money, then we know that the assets are going

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Speaker 1: to go higher. Now, the reason why we continue to

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Speaker 1: see the assets going higher is because of what I've

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Speaker 1: broken down, But more importantly, it's why we also see

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Speaker 1: the continuation of the divide between the rich and the poor.

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Speaker 1: It's pretty easy to understand. I'm sure you're well of this,

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Speaker 1: but maybe you don't understand the numbers behind it. But

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Speaker 1: the rich get richer because the rich own assets. The

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Speaker 1: poor get poor because they don't own assets and they

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Speaker 1: depend on their pay And the problem is is that

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Speaker 1: assets move up at the rate of money expansion, monetary expansion,

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Speaker 1: which is about eight or nine percent. Meanwhile, wages go

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Speaker 1: up at the rate of GDP which is about one

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Speaker 1: point five or two percent, and you can start to

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Speaker 1: see why we end up like that, and it's only

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Speaker 1: going to be exaggerated. Okay, But now that we know

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Speaker 1: all this and so it seems pretty inevitable. So history

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Speaker 1: tells us that it's a repeatable cycle. What does this

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Speaker 1: mean to us who are trying to build our wealth,

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Speaker 1: trying to protect our wealth as investors. Well, already gave

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Speaker 1: you some stuff if you're an owner of a business

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Speaker 1: or an employee, But as an investor, we have to

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Speaker 1: think about this. So not all assets move up the same.

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Speaker 1: I showed you this five hundred moves up at the

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Speaker 1: rate of money supply increase, which means you're basically running

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Speaker 1: in place like kind of treadmill. You're not getting ahead.

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Speaker 1: At least you're not drowning, So that's good at least,

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Speaker 1: But not all assets work the same. Now back to

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Speaker 1: the fifty year cycle. So what we know if I

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Speaker 1: pull this back up, what we know is in these

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Speaker 1: fifty year cycles, each one of these cycles drives the

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Speaker 1: financial markets, right, So what do I mean by that? Well,

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Speaker 1: over the last fifty years, the telecom cycle. What drove

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Speaker 1: financial markets for the last fifty years telecommunications, personal computers,

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Speaker 1: and internet exactly over this boom from the age of

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Speaker 1: oil production and automobiles, mass production. What dominated markets in

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Speaker 1: that period? Ford, gm ge What dominated markets in this cycle?

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Speaker 1: Steel and oil. You're starting to get the drift. You

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Speaker 1: can see that each one of these new technology cycles

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Speaker 1: gets a new set of people rich. So you can see,

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Speaker 1: of course in this age we had Jeff Bezos, we

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Speaker 1: can name others. Of course in this one we had

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Speaker 1: Henry Ford with the automobile. We had JP Morgan here

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Speaker 1: and through Carnegie steel, Cornelias, Vanderbilt with railways, Rockefeller with oil.

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Speaker 1: So each one of these technology cycles pushes a new

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Speaker 1: type of asset and a whole new group of people

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Speaker 1: get rich. So now that you understand that, then you

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Speaker 1: have to ask yourself the next question, which is, well,

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Speaker 1: what assets will be going up in this technological revolution cycle?

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Speaker 1: And so let's take a look at that. So really,

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Speaker 1: what this six technological revolution cycle is representing is what

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Speaker 1: I call centralized versus decentralized systems. And we can see

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Speaker 1: that the centralized systems are failing here while we're seeing

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Speaker 1: the rise of decentralized systems. And so this is bitcoin,

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Speaker 1: cryptocurrency networks. This is AI, as I said, is also

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Speaker 1: that we also have a new platform that I'm really

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Speaker 1: keeping an eye on called Noster. It's a new way

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Speaker 1: to do communication. I believe most of social media as

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Speaker 1: we know it will be forever changed based on this

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Speaker 1: new communication protocol that we have. And you can already

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Speaker 1: see this playing out. So again, they drive financial markets.

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Speaker 1: And so look at bitcoin alone just right here. Since

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Speaker 1: twenty twenty, we've seen it go up nine hundred percent

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Speaker 1: nine percent. Why because this is part of this next

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Speaker 1: technological boom that's going to happen over the next fifty years.

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Speaker 1: You need to get on board. Just like the last

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Speaker 1: fifty years, you have to be involved in the tech

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Speaker 1: and the telecom on the Internet. Now we need to

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Speaker 1: be onboard decentralized systems. We can also see this in

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Speaker 1: the rise of Nvidia. Why well, Invidia is riding the

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Speaker 1: AI wave. And again I look at AI as sort

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Speaker 1: of a decentralizing technology. And again from about the same

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Speaker 1: period it's up eighteen hundred percent, an absolute miracle with

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Speaker 1: no real relation to anything of anything that we could

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Speaker 1: really measure. But what it is is it's writing the trend,

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Speaker 1: and this trend is going to be massively strong. And

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Speaker 1: what we can see if we look at Remember I

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Speaker 1: showed you the S and P five hundred basically moves

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Speaker 1: up with the money supply if we look at other assets.

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Speaker 1: So in this case, we have gold and bitcoin mapped

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Speaker 1: against the money supply, and we can see that it outperforms.

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Speaker 1: It's about an eighty percent correlation, all right. So Bitcoin's

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Speaker 1: move up at a eight point nine time sensitivity to

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Speaker 1: the money supply, which means for every ten percent of

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Speaker 1: increase in money supply, you get a nine percent increase

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Speaker 1: in bitcoin. And so these are the areas that we

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Speaker 1: want to be invested over the next fifty years. This

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Speaker 1: is the trend. This is the new telecom Internet, This

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Speaker 1: is the new automobile mass production. This is the new oil, steel, railways,

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Speaker 1: et cetera. Right here. But remember there's probably going to

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Speaker 1: be a short term pulse that will be a deflationary pulse,

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Speaker 1: followed by a massive increase in liquidity which will push

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Speaker 1: these assets to new all time highs. So now that

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Speaker 1: you understand that from a business owner perspective, from an

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Speaker 1: employee perspective, and from an investor perspective, you should be

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Speaker 1: equipped to go ride the next wave. But let me

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Speaker 1: know what you think. Leave me a comment down below,

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Speaker 1: and do you think this will play out like all

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Speaker 1: the other ones in history or is this time different?

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Speaker 1: Let me know in the commics down below. Of course,

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Speaker 1: that's always give me thumbs up if you're like the video.

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Speaker 1: If you don't, you can give me thumbs down. That's okay.

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Speaker 1: At least tell me why in the comments down below

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Speaker 1: so I can make better videos. And if you want

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Speaker 1: to know more about these technology cycles, watch this next

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Speaker 1: video right here. That's what I got to your success.

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Speaker 1: How about