1 00:00:00,960 --> 00:00:05,199 Speaker 1: What's up, everybody? Welcome to another episode of financial Heresy. 2 00:00:05,440 --> 00:00:08,480 Speaker 1: On this podcast, we talk about how money works so 3 00:00:08,520 --> 00:00:12,400 Speaker 1: that you can make more, keep more, and give more. UM. 4 00:00:12,440 --> 00:00:16,480 Speaker 1: I see that phrase a lot um recap of why 5 00:00:16,640 --> 00:00:19,799 Speaker 1: I think this is very important. UM. Number one, we 6 00:00:19,880 --> 00:00:23,520 Speaker 1: have to understand how money works because it's like driving. 7 00:00:23,960 --> 00:00:25,959 Speaker 1: It's like when you're learning how to drive a stick 8 00:00:26,000 --> 00:00:30,440 Speaker 1: shift car for the first time. My experience, I've had 9 00:00:30,720 --> 00:00:33,800 Speaker 1: multiple people try and teach me, and you know, they 10 00:00:33,840 --> 00:00:36,480 Speaker 1: would say, hey, let off the clutch really slowly while 11 00:00:36,520 --> 00:00:40,120 Speaker 1: you press the gas. Uh. And then you know, when 12 00:00:40,120 --> 00:00:43,400 Speaker 1: it gets to a point where you know the RPMs 13 00:00:43,440 --> 00:00:45,519 Speaker 1: are too high or you hear you know, you hear 14 00:00:45,560 --> 00:00:48,000 Speaker 1: it sound like this, then you're gonna have to press 15 00:00:48,040 --> 00:00:51,120 Speaker 1: the clutching again. You're gonna have to shift down to two. 16 00:00:51,360 --> 00:00:53,479 Speaker 1: And the whole time I'm just thinking like, Okay, well 17 00:00:53,479 --> 00:00:56,680 Speaker 1: this is a number one. It's a lot of steps 18 00:00:56,680 --> 00:01:00,960 Speaker 1: to memorize. Just wrote memorization number on and then number two. 19 00:01:01,520 --> 00:01:05,080 Speaker 1: It doesn't make sense why that would make the car 20 00:01:05,280 --> 00:01:08,240 Speaker 1: go the way it's supposed to go. And so every 21 00:01:08,280 --> 00:01:10,720 Speaker 1: single person that I was asking them to teach me 22 00:01:10,760 --> 00:01:13,839 Speaker 1: how to drive stick shift I was asking them, well, 23 00:01:14,120 --> 00:01:17,720 Speaker 1: what does this actually do? Like what what is happening 24 00:01:18,120 --> 00:01:21,080 Speaker 1: inside the engine when I'm pressing the clutch, when I'm 25 00:01:21,160 --> 00:01:23,800 Speaker 1: letting off it slowly, and when I'm shifting from one 26 00:01:23,880 --> 00:01:26,320 Speaker 1: year to another, Like what what is actually happening in there? 27 00:01:26,360 --> 00:01:29,360 Speaker 1: Because if I can understand what's actually happening in there, 28 00:01:29,800 --> 00:01:32,679 Speaker 1: then I'll be able to I'll be able to develop 29 00:01:32,680 --> 00:01:35,520 Speaker 1: a feeling for what I know is happening and be 30 00:01:35,600 --> 00:01:37,360 Speaker 1: able to be able to get better at it, and 31 00:01:37,360 --> 00:01:40,360 Speaker 1: then I'll know, Okay, well, obviously I stalled out there 32 00:01:40,400 --> 00:01:42,560 Speaker 1: because you know, of you know, X, Y or Z 33 00:01:42,720 --> 00:01:45,840 Speaker 1: how it happened, and nobody could explain it to me 34 00:01:45,959 --> 00:01:47,960 Speaker 1: until you know, it was you know, probably four or 35 00:01:48,000 --> 00:01:50,240 Speaker 1: five people in and then somebody finally explained it to me, 36 00:01:50,560 --> 00:01:53,360 Speaker 1: and boom, suddenly I was able to I learned how 37 00:01:53,360 --> 00:01:57,400 Speaker 1: to drive stick very quickly once I was somebody explained 38 00:01:57,440 --> 00:02:02,240 Speaker 1: to me how it actually worked. And investing and getting 39 00:02:02,240 --> 00:02:05,560 Speaker 1: ahead with money, it's very similar to that because otherwise 40 00:02:05,560 --> 00:02:08,919 Speaker 1: you're gonna be going along. You don't have those automatic 41 00:02:09,000 --> 00:02:12,280 Speaker 1: feedbacks with the game of money, um that you do 42 00:02:12,440 --> 00:02:16,000 Speaker 1: driving stick. It's not like, hey, you make one small 43 00:02:16,120 --> 00:02:19,200 Speaker 1: bad decision with your money and then suddenly your entire 44 00:02:19,240 --> 00:02:21,840 Speaker 1: financial life grinds to a halt. With money, it's different. 45 00:02:21,880 --> 00:02:25,760 Speaker 1: You have to make lots of repeated mistakes for a 46 00:02:25,800 --> 00:02:30,120 Speaker 1: long period of time before it builds up with enough uh, 47 00:02:30,240 --> 00:02:33,720 Speaker 1: you know, feedback, negative feedback to then you know, try 48 00:02:33,720 --> 00:02:36,640 Speaker 1: and give you a lesson about, hey, that is not working. 49 00:02:36,840 --> 00:02:40,160 Speaker 1: And because the distance between the action and the feedback 50 00:02:40,240 --> 00:02:44,160 Speaker 1: is so removed, many people don't recognize that the feedback 51 00:02:44,240 --> 00:02:48,640 Speaker 1: is actually telling them, hey, you're making incorrect actions and 52 00:02:48,680 --> 00:02:52,120 Speaker 1: decisions with your money. And so it's vital to understand 53 00:02:52,120 --> 00:02:56,240 Speaker 1: how money works because then you actually know what the 54 00:02:56,320 --> 00:02:59,680 Speaker 1: rules of the game are. And so when that's how 55 00:02:59,680 --> 00:03:02,200 Speaker 1: you take more money. That's how you know what to 56 00:03:02,240 --> 00:03:05,080 Speaker 1: invest in. That's how you know what to use debt 57 00:03:05,080 --> 00:03:06,800 Speaker 1: for and what not to use debt for. When to 58 00:03:06,880 --> 00:03:08,799 Speaker 1: use debt and when not to use debt, what kind 59 00:03:08,800 --> 00:03:10,679 Speaker 1: of debt to use, what kind of debt not to use, 60 00:03:10,919 --> 00:03:14,080 Speaker 1: what kind of assets are good or bad during different 61 00:03:14,080 --> 00:03:17,520 Speaker 1: periods of time, during inflation or deflation, What causes inflation 62 00:03:17,520 --> 00:03:19,240 Speaker 1: and deflation, So you can be on the lookout for 63 00:03:19,360 --> 00:03:23,239 Speaker 1: signals that that's coming or or or going. So all 64 00:03:23,280 --> 00:03:25,960 Speaker 1: these things are extremely important in an earraw that we 65 00:03:26,000 --> 00:03:28,440 Speaker 1: live in where everything is controlled from the top down. 66 00:03:28,960 --> 00:03:31,359 Speaker 1: We don't live in a world like our great grandparents 67 00:03:31,360 --> 00:03:33,880 Speaker 1: did where you can just keep your head down, work hard, 68 00:03:34,200 --> 00:03:35,920 Speaker 1: save a little bit and that will be enough to 69 00:03:36,400 --> 00:03:38,440 Speaker 1: you know, retire on and get your gold watch. That 70 00:03:38,600 --> 00:03:40,720 Speaker 1: just isn't the reality of the world we live in today. 71 00:03:40,760 --> 00:03:43,840 Speaker 1: We live in a much more top down controlled economy 72 00:03:44,000 --> 00:03:47,320 Speaker 1: where decision makers who are unelected have the ability to 73 00:03:47,560 --> 00:03:51,560 Speaker 1: impose their will on an entire system and can make 74 00:03:51,680 --> 00:03:55,000 Speaker 1: or break industries or companies as a result. So it's 75 00:03:55,000 --> 00:03:57,320 Speaker 1: important to know how these things work so that we 76 00:03:57,360 --> 00:04:02,760 Speaker 1: can navigate through these uh these chain is successfully. Um 77 00:04:02,800 --> 00:04:05,480 Speaker 1: Making more money is a huge part of this because 78 00:04:05,800 --> 00:04:08,080 Speaker 1: if you if you don't make more money, number one, 79 00:04:08,080 --> 00:04:10,040 Speaker 1: you're not going to keep up with inflation, so you're 80 00:04:10,080 --> 00:04:11,600 Speaker 1: never going to be able to get ahead. You're never 81 00:04:11,640 --> 00:04:14,320 Speaker 1: going to be able to achieve your financial goals, your 82 00:04:14,360 --> 00:04:17,280 Speaker 1: financial dreams, get to where you want to go if 83 00:04:17,320 --> 00:04:21,000 Speaker 1: you don't continue to increase your income. As you increase 84 00:04:21,080 --> 00:04:24,159 Speaker 1: your income, though, it's important to not just throw it 85 00:04:24,200 --> 00:04:26,800 Speaker 1: away and lose it as fast as you make it, 86 00:04:26,839 --> 00:04:29,599 Speaker 1: and that's why I emphasize keeping more of your money 87 00:04:29,640 --> 00:04:31,839 Speaker 1: because if you spend it as fast as you make it, 88 00:04:31,880 --> 00:04:34,200 Speaker 1: you're not actually getting ahead. So you've got to keep 89 00:04:34,200 --> 00:04:36,320 Speaker 1: more of it so that you can do the right 90 00:04:36,360 --> 00:04:40,000 Speaker 1: things with it, make investments when those opportunities come along. UM. 91 00:04:40,040 --> 00:04:41,960 Speaker 1: And then ultimately the reason we do this is to 92 00:04:42,279 --> 00:04:43,839 Speaker 1: UH is to be a force of good in the 93 00:04:43,839 --> 00:04:45,680 Speaker 1: world and to take care of those who can't take 94 00:04:45,720 --> 00:04:47,479 Speaker 1: care of themselves, take care of the least of these, 95 00:04:47,520 --> 00:04:51,279 Speaker 1: the poor people, the homeless people, the people who need 96 00:04:51,400 --> 00:04:53,800 Speaker 1: our help, the people that were entrusted to take care 97 00:04:53,839 --> 00:04:56,760 Speaker 1: of our families, our friends, people who UH. You know, 98 00:04:57,600 --> 00:05:01,400 Speaker 1: we take up this responsibility to care for those around 99 00:05:01,480 --> 00:05:05,520 Speaker 1: us because we can UM and so it's a burden, 100 00:05:05,560 --> 00:05:08,919 Speaker 1: but it is a joyful responsibility that we have to 101 00:05:09,120 --> 00:05:11,640 Speaker 1: uh to make more so that we can be givers 102 00:05:12,000 --> 00:05:15,960 Speaker 1: to society UH and those around us UH. In UH 103 00:05:16,000 --> 00:05:18,360 Speaker 1: in light of that, today we're going to be looking 104 00:05:18,360 --> 00:05:23,359 Speaker 1: at the best investments for three because this environment that 105 00:05:23,400 --> 00:05:26,479 Speaker 1: we're in for this year is different than the environment 106 00:05:26,520 --> 00:05:30,560 Speaker 1: that we were in for you know. One. Two is 107 00:05:30,640 --> 00:05:33,480 Speaker 1: kind of a transition year where we transitioned from easy 108 00:05:33,480 --> 00:05:37,440 Speaker 1: monetary policy to tight monetary policy, and everything was kind 109 00:05:37,480 --> 00:05:40,200 Speaker 1: of adjusting to that transition of like, hey, are we 110 00:05:40,240 --> 00:05:42,320 Speaker 1: actually going to believe the Federal Reserve that they're going 111 00:05:42,400 --> 00:05:45,479 Speaker 1: to get tighter and then transitioning from that growth environment 112 00:05:45,720 --> 00:05:50,520 Speaker 1: to a uh to the opposite of a growth environment. So, um, 113 00:05:50,600 --> 00:05:53,320 Speaker 1: we have we have twenty twenty three in front of 114 00:05:53,400 --> 00:05:56,800 Speaker 1: us now, um, and a few years of track record 115 00:05:57,000 --> 00:05:59,720 Speaker 1: of monetary policy. We've got a few years ahead of 116 00:05:59,800 --> 00:06:02,359 Speaker 1: us in terms of uh, you know, a lack of 117 00:06:02,400 --> 00:06:06,400 Speaker 1: political change for the next couple of years, and so uh, 118 00:06:06,600 --> 00:06:09,920 Speaker 1: we can look forward at three and say, hey, look, 119 00:06:10,000 --> 00:06:13,800 Speaker 1: we have a high degree of certainty in kind of 120 00:06:14,080 --> 00:06:16,960 Speaker 1: what it looks like the market will do and how 121 00:06:17,000 --> 00:06:19,880 Speaker 1: to be able to navigate through this given what what 122 00:06:19,880 --> 00:06:23,040 Speaker 1: what we know about how money works. So we're gonna 123 00:06:23,080 --> 00:06:28,120 Speaker 1: look at one, two, three, four, five, six, seven, eight, nine, nine, nine, 124 00:06:28,160 --> 00:06:33,000 Speaker 1: different uh you know, different classes here points that we're 125 00:06:33,040 --> 00:06:36,599 Speaker 1: gonna look at for the best investments for three. And 126 00:06:36,720 --> 00:06:39,280 Speaker 1: this is not advice. I could be completely wrong about this. 127 00:06:39,360 --> 00:06:43,440 Speaker 1: Something could change tomorrow. Um, you know, let's say nuclear 128 00:06:43,480 --> 00:06:46,920 Speaker 1: war breaks out, monetary policy changes overnight, and everything collapses 129 00:06:46,960 --> 00:06:49,760 Speaker 1: and falls off a cliff. Obviously, Uh, you know, things 130 00:06:49,800 --> 00:06:53,440 Speaker 1: can change in the blink of an eye here, um. 131 00:06:53,480 --> 00:06:57,039 Speaker 1: And so this is at this moment as a as 132 00:06:57,080 --> 00:07:00,400 Speaker 1: of the time I'm recording this Tuesday, January ten, what 133 00:07:00,520 --> 00:07:02,280 Speaker 1: it looks like what I'm going to be looking at 134 00:07:02,560 --> 00:07:09,640 Speaker 1: in terms of outsize performance this year. Number one is gold. Now, 135 00:07:10,360 --> 00:07:12,840 Speaker 1: anybody who's you know, I've got a YouTube channel I've 136 00:07:12,840 --> 00:07:15,200 Speaker 1: been doing for about three years now, a little over 137 00:07:15,240 --> 00:07:18,360 Speaker 1: three years, and um, I've I've been very bullish on 138 00:07:18,440 --> 00:07:21,680 Speaker 1: gold for a long time. And so if any of 139 00:07:21,720 --> 00:07:24,720 Speaker 1: you have been following the content that I've been making 140 00:07:24,760 --> 00:07:27,280 Speaker 1: for a while, you'll probably scoff at the fact that 141 00:07:27,320 --> 00:07:30,160 Speaker 1: I'm bullish on gold, because well, let's be honest, I've 142 00:07:30,160 --> 00:07:33,360 Speaker 1: been bullish on gold this entire time. Now, I was 143 00:07:33,600 --> 00:07:40,520 Speaker 1: right uh during the period going into uh two, because um, 144 00:07:40,520 --> 00:07:43,240 Speaker 1: when I started talking about gold, it was starting to 145 00:07:43,360 --> 00:07:46,920 Speaker 1: have uh you know, had it had just broken out 146 00:07:47,320 --> 00:07:53,240 Speaker 1: of its accumulation period from the years of through twenty 147 00:07:53,360 --> 00:07:57,120 Speaker 1: nineteen in June of nineteen UM. And in fact, I 148 00:07:57,240 --> 00:08:01,080 Speaker 1: probably started making YouTube videos right around that time. Actually, 149 00:08:01,200 --> 00:08:04,120 Speaker 1: now that I think about it, Um, not many, but 150 00:08:04,200 --> 00:08:06,920 Speaker 1: there are some out there. Um, that's when it broke 151 00:08:06,960 --> 00:08:09,000 Speaker 1: out of that accumulation period it had, like you know, 152 00:08:09,040 --> 00:08:10,760 Speaker 1: it had a hard time getting above that one thousand 153 00:08:11,320 --> 00:08:15,320 Speaker 1: fifty dollar price point, and um, it started going. It 154 00:08:15,400 --> 00:08:18,200 Speaker 1: started going at that point. So from a technical perspective, 155 00:08:18,240 --> 00:08:20,920 Speaker 1: from the moment that I started talking about gold from 156 00:08:20,920 --> 00:08:24,120 Speaker 1: a technical perspective, meaning just its price action, it was 157 00:08:24,200 --> 00:08:27,680 Speaker 1: primed to do well. And then obviously six months later 158 00:08:27,760 --> 00:08:31,400 Speaker 1: when came around, UM, we had a lot of fundamental 159 00:08:31,480 --> 00:08:35,000 Speaker 1: factors that contributed to gold going up, the main one 160 00:08:35,040 --> 00:08:38,320 Speaker 1: being a bunch of money printing and so gold as 161 00:08:38,320 --> 00:08:43,360 Speaker 1: a monetary medal. Central banks stockpile, uh, stockpile gold. And 162 00:08:43,360 --> 00:08:45,240 Speaker 1: they've got the most money in the world because they 163 00:08:45,280 --> 00:08:47,839 Speaker 1: have a monopoly on printing the money. So they are 164 00:08:47,880 --> 00:08:51,680 Speaker 1: the big money um and UH, they started buying up gold, 165 00:08:51,960 --> 00:08:55,600 Speaker 1: and investors who know what they're doing, realized gold is 166 00:08:55,600 --> 00:08:58,480 Speaker 1: a monetary medal. And so when a bunch of money 167 00:08:58,520 --> 00:09:01,079 Speaker 1: is printed by central banks, they know that eventually that 168 00:09:01,120 --> 00:09:04,720 Speaker 1: will cause inflation. And so what you do is you 169 00:09:04,800 --> 00:09:08,040 Speaker 1: buy gold. Now that means that the gold goes up 170 00:09:08,080 --> 00:09:10,600 Speaker 1: before the inflation never gets there. So when you look 171 00:09:10,640 --> 00:09:13,800 Speaker 1: at you know, gold's performance during the year of it 172 00:09:13,880 --> 00:09:17,120 Speaker 1: went from you know, fift dollars to a peak of 173 00:09:17,800 --> 00:09:22,199 Speaker 1: uh two thousand dollars in August UM. So it had 174 00:09:22,240 --> 00:09:25,320 Speaker 1: a huge run up UM and so, but there was 175 00:09:25,360 --> 00:09:28,240 Speaker 1: no inflation during that time. The money printing had happened, 176 00:09:28,400 --> 00:09:32,360 Speaker 1: but the inflation hadn't hit yet, UM and and so 177 00:09:32,760 --> 00:09:35,560 Speaker 1: subsequent to that, well, it had to kind of adjust 178 00:09:35,640 --> 00:09:38,720 Speaker 1: because now we know, Okay, the money printing has happened, 179 00:09:38,720 --> 00:09:41,040 Speaker 1: we know how much money printing approximately there will be. 180 00:09:41,360 --> 00:09:44,240 Speaker 1: And now the fear is, Okay, when all this inflation 181 00:09:44,280 --> 00:09:46,200 Speaker 1: stuff is done, the Fed is going to start tightening. 182 00:09:46,559 --> 00:09:49,520 Speaker 1: And so gold started moving really sideways when you look 183 00:09:49,520 --> 00:09:53,079 Speaker 1: at it long term, from um, you know, halfway through 184 00:09:54,080 --> 00:09:59,440 Speaker 1: to the end of two really moved sideways during that time. 185 00:09:59,480 --> 00:10:03,280 Speaker 1: It flucks wated in between about seventeen hundred and about 186 00:10:03,360 --> 00:10:06,720 Speaker 1: nineteen hundred dollars went up and down during through that range. 187 00:10:07,120 --> 00:10:09,840 Speaker 1: UM and so gold has just been moving sideways in 188 00:10:09,840 --> 00:10:13,520 Speaker 1: this kind of accumulation zone. UH. Wondering, Okay, well, when 189 00:10:13,600 --> 00:10:15,960 Speaker 1: will the Feds start to tighten? And then once they 190 00:10:15,960 --> 00:10:20,000 Speaker 1: do start to tighten, when will they start to ease again? Um. 191 00:10:20,080 --> 00:10:22,000 Speaker 1: Now we're in that period of time where the Fed 192 00:10:22,120 --> 00:10:25,080 Speaker 1: is starting to signal, hey, we're coming up on the 193 00:10:25,160 --> 00:10:28,520 Speaker 1: end of our tightening. We're gonna finish raising rates at 194 00:10:28,559 --> 00:10:31,079 Speaker 1: some point. UM. We're not going to keep you know, 195 00:10:31,120 --> 00:10:33,160 Speaker 1: they're not going to keep on raising rates by you know, 196 00:10:33,240 --> 00:10:35,080 Speaker 1: three quarters of basis point. They're not going to raise 197 00:10:35,200 --> 00:10:38,480 Speaker 1: rates by one percent. They're seeing the inflation numbers come down. 198 00:10:38,840 --> 00:10:41,800 Speaker 1: And so because of that, recently, over the last um 199 00:10:41,800 --> 00:10:45,480 Speaker 1: two months, gold has responded very bullish, bullish lee to that. 200 00:10:45,559 --> 00:10:48,440 Speaker 1: It's gone from you know, sixteen hundred forty up to 201 00:10:48,840 --> 00:10:53,440 Speaker 1: eighteen seventy UM. And so gold investors who are big 202 00:10:53,440 --> 00:10:55,800 Speaker 1: money and central banks are starting to look at this 203 00:10:55,840 --> 00:10:58,880 Speaker 1: and say, okay, well when is gold going to front 204 00:10:58,960 --> 00:11:02,920 Speaker 1: run the next big about of money printing. So monetary 205 00:11:03,000 --> 00:11:05,760 Speaker 1: policy is one reason why I'm bullish on on gold 206 00:11:05,840 --> 00:11:09,000 Speaker 1: right now, but that's not all. Another reason I'm bullish 207 00:11:09,000 --> 00:11:11,559 Speaker 1: on gold is because of the deglobalization that's going on 208 00:11:12,040 --> 00:11:15,000 Speaker 1: politically around the world. How we see a decline in 209 00:11:15,040 --> 00:11:18,480 Speaker 1: the interest of using the dollar as a global reserve currency, 210 00:11:19,120 --> 00:11:25,120 Speaker 1: um of using US treasuries as as basically cash reserves 211 00:11:25,240 --> 00:11:28,280 Speaker 1: around the world. We're seeing central banks start to sell 212 00:11:28,440 --> 00:11:31,280 Speaker 1: US treasuries, like the Bank of Japan. It's having to 213 00:11:31,320 --> 00:11:34,240 Speaker 1: sell treasuries so that they can get uh, so they 214 00:11:34,240 --> 00:11:36,240 Speaker 1: can get what they need in order to defend the 215 00:11:36,360 --> 00:11:40,319 Speaker 1: yen and maintain their yield curve control. And so we're 216 00:11:40,320 --> 00:11:42,160 Speaker 1: seeing a lack of interest in the dollar in US 217 00:11:42,200 --> 00:11:45,760 Speaker 1: treasuries around the world. UM. Gold is the only monetary 218 00:11:45,800 --> 00:11:48,720 Speaker 1: asset that is not um uh. You know, it's the 219 00:11:48,720 --> 00:11:51,640 Speaker 1: only asset that's not at the same time somebody else's liability. 220 00:11:51,760 --> 00:11:54,920 Speaker 1: And so if you have dollars, like Russia has dollars, 221 00:11:54,920 --> 00:11:57,000 Speaker 1: well suddenly now they don't have dollars anymore because if 222 00:11:57,040 --> 00:11:58,720 Speaker 1: you can't use them, it's just like you don't have them. 223 00:11:59,000 --> 00:12:01,600 Speaker 1: So because of the same if another country can control 224 00:12:01,880 --> 00:12:04,679 Speaker 1: your spending power, they have a lot of control over you. 225 00:12:05,000 --> 00:12:07,160 Speaker 1: So nations are starting to look at this and say, hey, 226 00:12:07,280 --> 00:12:10,280 Speaker 1: we don't like that. So if push comes to shove 227 00:12:10,320 --> 00:12:12,320 Speaker 1: and we need to spend money, the only way we 228 00:12:12,360 --> 00:12:14,640 Speaker 1: can guarantee that is if we hold gold. And so 229 00:12:14,960 --> 00:12:18,600 Speaker 1: many of you may not know this, but uh, central 230 00:12:18,600 --> 00:12:22,560 Speaker 1: bank spot more gold than they have since nineteen sixty seven. 231 00:12:23,200 --> 00:12:25,960 Speaker 1: Nineteen sixty seven, central banks started to see the riding 232 00:12:26,000 --> 00:12:28,960 Speaker 1: on the wall. There was not uh, there were too 233 00:12:29,000 --> 00:12:32,480 Speaker 1: many there's too many dollars floating around, they thought, there's 234 00:12:32,520 --> 00:12:35,760 Speaker 1: probably not enough gold back this up. And so this peg, 235 00:12:35,880 --> 00:12:38,160 Speaker 1: the dollar to gold peg, they thought, now this is 236 00:12:38,160 --> 00:12:40,240 Speaker 1: probably gonna break, and so that means goal is going 237 00:12:40,280 --> 00:12:42,120 Speaker 1: to become worth a lot more. Dollar is gonna become 238 00:12:42,120 --> 00:12:43,960 Speaker 1: worth a lot less. So I'm gonna get rid of 239 00:12:44,000 --> 00:12:46,720 Speaker 1: my dollars. Started accumulating gold. They started doing that in 240 00:12:46,800 --> 00:12:49,800 Speaker 1: nineteen sixty seven, and just four years later the gold 241 00:12:49,840 --> 00:12:51,719 Speaker 1: window had to close and the gold standard around the 242 00:12:51,720 --> 00:12:56,520 Speaker 1: world was broken. And so central banks are stockpiling more 243 00:12:56,600 --> 00:12:59,520 Speaker 1: gold than they have right now since nineteen sixty seven. 244 00:13:00,240 --> 00:13:04,600 Speaker 1: So central banks believe that there's a good reason to 245 00:13:04,679 --> 00:13:08,000 Speaker 1: own gold um, and so don't do what they say, 246 00:13:08,120 --> 00:13:10,920 Speaker 1: which is used their cash um. Do what they do, 247 00:13:11,040 --> 00:13:13,760 Speaker 1: which is by gold um. So that's uh. Those are 248 00:13:13,760 --> 00:13:16,079 Speaker 1: a few reasons why I'm very bullish on gold going 249 00:13:16,120 --> 00:13:18,960 Speaker 1: into this year. We've had a few years of accumulation 250 00:13:19,120 --> 00:13:23,760 Speaker 1: at this price range. Technically speaking, um, we've had we 251 00:13:23,840 --> 00:13:26,960 Speaker 1: have easy monetary policy at some point in the future 252 00:13:27,000 --> 00:13:28,920 Speaker 1: to look forward to. Now that tightening is winding down 253 00:13:29,400 --> 00:13:32,760 Speaker 1: and central banks around the world are starting to really 254 00:13:32,880 --> 00:13:37,120 Speaker 1: stockpilot right now. The second asset class that I'm looking 255 00:13:37,120 --> 00:13:41,600 Speaker 1: forward to this year is silver UM. Silver is uh, 256 00:13:42,240 --> 00:13:44,440 Speaker 1: you know, it's not as much of a monetary medal 257 00:13:44,440 --> 00:13:48,480 Speaker 1: as gold. This is something that many silver investors get wrong. 258 00:13:49,040 --> 00:13:52,800 Speaker 1: A lot of silver investors think that silver, due to 259 00:13:52,960 --> 00:13:57,360 Speaker 1: suppression and due to market manipulation, UH, is you know, 260 00:13:58,360 --> 00:14:01,120 Speaker 1: many many, many times lower than it should be. That 261 00:14:01,440 --> 00:14:04,720 Speaker 1: we're going to see, you know, two hundred x returns 262 00:14:04,720 --> 00:14:07,480 Speaker 1: in silver UM. That gold is going to go up, 263 00:14:07,520 --> 00:14:09,280 Speaker 1: and that means that silver is gonna go up by 264 00:14:09,280 --> 00:14:14,320 Speaker 1: at least ten times more UM. The reality is that 265 00:14:14,480 --> 00:14:18,559 Speaker 1: silver has as as a monetary metal, has been losing 266 00:14:18,679 --> 00:14:23,360 Speaker 1: value for UM for centuries, not just for not a 267 00:14:23,400 --> 00:14:26,480 Speaker 1: short amount of time. UM. Back in the day, you know, 268 00:14:26,560 --> 00:14:29,120 Speaker 1: the first couple of episodes of this podcast, I explained 269 00:14:29,120 --> 00:14:31,760 Speaker 1: how kind of the history of money. So I would 270 00:14:31,800 --> 00:14:33,840 Speaker 1: encourage you to go back and listen to those episodes 271 00:14:33,880 --> 00:14:35,520 Speaker 1: if you haven't, because that will go into detail what 272 00:14:35,560 --> 00:14:40,080 Speaker 1: I'm gonna explain here more. But you have deflation naturally 273 00:14:40,280 --> 00:14:43,600 Speaker 1: whenever you have a fixed money supply. When gold was money, 274 00:14:44,000 --> 00:14:46,240 Speaker 1: there's a relatively fixed supply. Yeah, you can dig it 275 00:14:46,240 --> 00:14:47,800 Speaker 1: out of the ground, but it takes a long time. 276 00:14:47,840 --> 00:14:51,680 Speaker 1: It's very hard. So on average throughout history, gold increases 277 00:14:51,720 --> 00:14:54,240 Speaker 1: in its supply by about one point five percent per year. 278 00:14:54,600 --> 00:14:57,800 Speaker 1: Never has exceeded two percent per year, and so the 279 00:14:57,800 --> 00:15:01,560 Speaker 1: gold supply really is pretty stable. Um, not exactly fixed, 280 00:15:01,560 --> 00:15:04,840 Speaker 1: but close close enough. Because of that, you get defleation, 281 00:15:05,000 --> 00:15:10,440 Speaker 1: meaning the wealth increase outpaces the money supply increase. So, yes, 282 00:15:10,520 --> 00:15:13,000 Speaker 1: there's more money floating around from digging out gold, but 283 00:15:13,040 --> 00:15:15,560 Speaker 1: there's way more wealth. There's more houses, there's more food, 284 00:15:15,560 --> 00:15:18,520 Speaker 1: there's more clothing that's cheaper, there's way more better things, 285 00:15:18,600 --> 00:15:20,560 Speaker 1: better ways to do things. You have you know, the 286 00:15:20,600 --> 00:15:22,760 Speaker 1: invention of the steam engine and all these revolutions that 287 00:15:22,800 --> 00:15:26,040 Speaker 1: have happened that launched humanity forward in terms of wealth 288 00:15:26,040 --> 00:15:29,360 Speaker 1: and progress and technology makes things cheaper. And so that 289 00:15:29,440 --> 00:15:31,920 Speaker 1: means that a piece of gold, where maybe it used 290 00:15:31,960 --> 00:15:36,040 Speaker 1: to buy you, um, you know, lunch, after a few 291 00:15:36,080 --> 00:15:38,680 Speaker 1: thousand years, a piece of gold can buy you a house. 292 00:15:39,520 --> 00:15:41,840 Speaker 1: Maybe not that extreme, but you get what I'm saying. 293 00:15:41,880 --> 00:15:45,040 Speaker 1: That things get cheaper. So those same pieces of gold 294 00:15:45,040 --> 00:15:47,640 Speaker 1: become worth more and more and more. So because of that, 295 00:15:47,680 --> 00:15:50,680 Speaker 1: you had to have change, uh come in. You had 296 00:15:50,720 --> 00:15:52,800 Speaker 1: to have and I mean literally changed, like today we 297 00:15:52,880 --> 00:15:55,440 Speaker 1: use you know, quarters in nickles and dimes um. So 298 00:15:55,520 --> 00:15:57,320 Speaker 1: that's what silver was for. It was there to be 299 00:15:57,400 --> 00:15:59,680 Speaker 1: changed for gold because you couldn't just you know, cut 300 00:15:59,720 --> 00:16:01,160 Speaker 1: your role piece and half. I mean you could, but 301 00:16:01,200 --> 00:16:03,160 Speaker 1: nobody wanted to do that, and so you needed a 302 00:16:03,160 --> 00:16:08,320 Speaker 1: smaller denomination you'd use silver. Well, when FIAT kind of 303 00:16:08,840 --> 00:16:11,240 Speaker 1: gained steam a few hundred years ago and banking and 304 00:16:11,360 --> 00:16:14,800 Speaker 1: fed fractional reserve banking and central banking took over, people 305 00:16:14,840 --> 00:16:17,800 Speaker 1: start using paper certificates. Well, you have less of a 306 00:16:17,880 --> 00:16:22,800 Speaker 1: need uh for a medal to UH serve the role 307 00:16:23,080 --> 00:16:27,080 Speaker 1: of change because you can have smaller denominations um of 308 00:16:27,080 --> 00:16:31,240 Speaker 1: of bills just with paper um and that that uh 309 00:16:31,360 --> 00:16:36,080 Speaker 1: then makes makes UH inflation come into come into being. 310 00:16:36,160 --> 00:16:38,960 Speaker 1: So when you have fractional reserve banking, you have central 311 00:16:39,000 --> 00:16:42,280 Speaker 1: banking established, you enter into an era of long term 312 00:16:42,320 --> 00:16:47,000 Speaker 1: inflation where the money supply grows quicker than the UH 313 00:16:47,040 --> 00:16:50,040 Speaker 1: the amount of wealth in the system. So now instead 314 00:16:50,080 --> 00:16:52,280 Speaker 1: of that money becoming worth more and more, that money 315 00:16:52,280 --> 00:16:56,400 Speaker 1: becomes worth less and less. And so the silver wasn't 316 00:16:56,440 --> 00:17:00,640 Speaker 1: as useful as change UH any more are as it 317 00:17:00,720 --> 00:17:04,280 Speaker 1: used to be because people got used to using the 318 00:17:05,040 --> 00:17:09,040 Speaker 1: denomination of coin got used to using the paper currency, 319 00:17:09,520 --> 00:17:12,760 Speaker 1: and so you'd swap out the metal in a coin 320 00:17:13,000 --> 00:17:16,000 Speaker 1: from silver to another metal and just declare, hey, this 321 00:17:16,080 --> 00:17:18,719 Speaker 1: is the same coin. People would still use it. So 322 00:17:18,760 --> 00:17:22,480 Speaker 1: you get that inflation as a policy maker, and the 323 00:17:22,880 --> 00:17:27,200 Speaker 1: monetary role of a metal like silver goes down. Now, Um, 324 00:17:27,320 --> 00:17:30,280 Speaker 1: one other thing that recently has increased or decreased the 325 00:17:30,280 --> 00:17:34,080 Speaker 1: monetary value of silver is uh, its industrial use and 326 00:17:34,160 --> 00:17:37,679 Speaker 1: so more and more over the last few decades, silver 327 00:17:37,880 --> 00:17:42,359 Speaker 1: is becoming more and more useful as a monetary or 328 00:17:42,400 --> 00:17:44,800 Speaker 1: I'm sorry, in industrial metals. So it's being used in 329 00:17:44,920 --> 00:17:47,480 Speaker 1: solar panels, as being used in medical devices, being used 330 00:17:47,480 --> 00:17:51,040 Speaker 1: in electronics, and so it is less and less of 331 00:17:51,119 --> 00:17:53,399 Speaker 1: a monetary metal, and more and more of its value 332 00:17:53,800 --> 00:17:57,560 Speaker 1: is determined by its industrial usefulness. And so UH that 333 00:17:57,560 --> 00:18:00,640 Speaker 1: that has that that means that when we look at 334 00:18:00,720 --> 00:18:06,000 Speaker 1: some of these macro forces that will affect gold going up, UM, 335 00:18:06,119 --> 00:18:09,200 Speaker 1: I believe in the very new near future, UM, that 336 00:18:09,280 --> 00:18:13,239 Speaker 1: won't have as big of an impact on silver. Now, 337 00:18:13,320 --> 00:18:15,439 Speaker 1: there will be some impact. I'm not saying there's no 338 00:18:15,480 --> 00:18:19,439 Speaker 1: monetary value there, um, because there's still a lot of 339 00:18:19,520 --> 00:18:23,040 Speaker 1: value there because of the industrial usefulness. For it and 340 00:18:23,440 --> 00:18:26,879 Speaker 1: because of the supply demand mismatch and you know many factors, 341 00:18:26,920 --> 00:18:28,600 Speaker 1: and people are going to buy it as an investment 342 00:18:28,680 --> 00:18:31,680 Speaker 1: because uh, you know, because they know other people will 343 00:18:31,720 --> 00:18:35,400 Speaker 1: and so there will still be a um A response there. 344 00:18:35,960 --> 00:18:39,920 Speaker 1: I don't think it will be as as leveraged as 345 00:18:39,920 --> 00:18:42,600 Speaker 1: compared to gold as many people think. UM. I think 346 00:18:42,640 --> 00:18:46,560 Speaker 1: we probably percentagewise, you probably will see better performance out 347 00:18:46,560 --> 00:18:50,240 Speaker 1: of silver UM as gold because typically that happens, but 348 00:18:50,400 --> 00:18:53,440 Speaker 1: that relationship has shifted over the last few hundred years. 349 00:18:53,480 --> 00:18:55,479 Speaker 1: That's important to know that you're not going to get 350 00:18:55,560 --> 00:18:58,399 Speaker 1: massively wealthy by stacking a bunch of silver. It's an 351 00:18:58,400 --> 00:19:02,000 Speaker 1: important way to diversify, have some extra assets. It's an 352 00:19:02,000 --> 00:19:04,280 Speaker 1: important way to be able to stack metal because it's 353 00:19:04,400 --> 00:19:07,359 Speaker 1: cheaper per ounce, so you can buy you know, little 354 00:19:07,520 --> 00:19:09,439 Speaker 1: smaller amounts of it at a time. So it's an 355 00:19:09,480 --> 00:19:12,359 Speaker 1: easier way to get into precious metal investing. And I 356 00:19:12,400 --> 00:19:15,960 Speaker 1: think it's still going to perform very well, but just 357 00:19:16,400 --> 00:19:20,000 Speaker 1: keep keep that in check. If you start getting on 358 00:19:20,040 --> 00:19:23,000 Speaker 1: the on the precious metal forums and and some of 359 00:19:23,000 --> 00:19:25,680 Speaker 1: the channels talking about it, UM, there's a lot of 360 00:19:25,880 --> 00:19:30,800 Speaker 1: UM euphoria UM in terms of the belief and how 361 00:19:31,200 --> 00:19:33,080 Speaker 1: good the performance and silver is going to be. And 362 00:19:33,080 --> 00:19:36,879 Speaker 1: I don't think it's gonna be uh that extreme um alright, 363 00:19:36,960 --> 00:19:40,400 Speaker 1: number three value stocks um. So this is something that 364 00:19:41,040 --> 00:19:43,560 Speaker 1: has been a shift over the last year. We made 365 00:19:43,560 --> 00:19:46,080 Speaker 1: a big shift from growth to value and that's not 366 00:19:46,119 --> 00:19:51,160 Speaker 1: going away anytime soon. Uh. Growth just got slaughtered last 367 00:19:51,240 --> 00:19:55,440 Speaker 1: year and value is the new racehorse in front of 368 00:19:55,480 --> 00:19:59,240 Speaker 1: the pack, leading the way. So value investing is going 369 00:19:59,280 --> 00:20:03,439 Speaker 1: to be something that will become increasing. My prediction here 370 00:20:03,480 --> 00:20:05,600 Speaker 1: is over the that next two or three years will 371 00:20:05,640 --> 00:20:09,680 Speaker 1: become increasingly popular and by the time it becomes kind 372 00:20:09,720 --> 00:20:14,399 Speaker 1: of accepted general wisdom, like over the last many years, 373 00:20:14,880 --> 00:20:18,639 Speaker 1: that generally accepted wisdom has been, Hey, growth beats everything, 374 00:20:18,680 --> 00:20:21,160 Speaker 1: so just invest in growth because that's gonna it's gonna 375 00:20:21,240 --> 00:20:24,800 Speaker 1: be everything else out. We've shifted now we're heavily in 376 00:20:24,800 --> 00:20:28,240 Speaker 1: the value camp. By the time everybody starts saying, hey, 377 00:20:28,359 --> 00:20:30,679 Speaker 1: value is where it's at, values where everybody needs to be, 378 00:20:30,920 --> 00:20:32,960 Speaker 1: that's probably a sign that we're near the end of that, 379 00:20:33,000 --> 00:20:35,880 Speaker 1: and we're nowhere near that. But value has had extremely 380 00:20:35,880 --> 00:20:39,560 Speaker 1: good performance recently. That's only gonna continue, in my opinion, 381 00:20:39,800 --> 00:20:43,159 Speaker 1: so I'm very in on value right now. If you 382 00:20:42,880 --> 00:20:47,280 Speaker 1: if you don't know, UM how to pick value stocks, 383 00:20:47,520 --> 00:20:49,480 Speaker 1: there are a couple of things you can do. Number one, 384 00:20:50,200 --> 00:20:53,480 Speaker 1: you can just pick a value fund, so mutual fund 385 00:20:53,520 --> 00:20:55,520 Speaker 1: or an e t F at any broker in your 386 00:20:55,520 --> 00:20:57,840 Speaker 1: four O one K probably as well. UM, there are 387 00:20:57,840 --> 00:20:59,679 Speaker 1: going to be some in there that are called value 388 00:20:59,720 --> 00:21:02,120 Speaker 1: fund And basically this is just you put your money 389 00:21:02,119 --> 00:21:04,760 Speaker 1: into that fund and then the fund manager, whether it's 390 00:21:04,840 --> 00:21:07,400 Speaker 1: active or passive, you know, chosen according to a list 391 00:21:07,720 --> 00:21:12,040 Speaker 1: that money will be invested into value stocks. Those value 392 00:21:12,040 --> 00:21:16,480 Speaker 1: stocks are chosen based off of just preset criteria of 393 00:21:16,480 --> 00:21:19,000 Speaker 1: of you know, searching for companies and once they hit 394 00:21:19,040 --> 00:21:21,240 Speaker 1: all the boxes and they're added to the list and 395 00:21:21,280 --> 00:21:24,639 Speaker 1: they're invested in and so UM, that's an easy way 396 00:21:24,720 --> 00:21:26,160 Speaker 1: to do it. You're not going to get the best 397 00:21:26,160 --> 00:21:29,920 Speaker 1: performance that way, but uh, that's that's an easy way 398 00:21:29,920 --> 00:21:33,239 Speaker 1: to get into value stocks. UM. I also have a 399 00:21:33,240 --> 00:21:36,080 Speaker 1: bear market investing guide. I can link it. I'll link 400 00:21:36,160 --> 00:21:39,320 Speaker 1: it in the show notes. If your podcast platform does 401 00:21:39,359 --> 00:21:41,800 Speaker 1: not have the ability to see show notes or to 402 00:21:41,880 --> 00:21:45,520 Speaker 1: click directly on links um you can find you can 403 00:21:45,560 --> 00:21:48,880 Speaker 1: find this through my website heresy financial dot com. UM 404 00:21:48,920 --> 00:21:51,600 Speaker 1: and through the links on my YouTube videos as well 405 00:21:51,640 --> 00:21:55,760 Speaker 1: through YouTube um and so you can this bear market 406 00:21:55,800 --> 00:21:58,560 Speaker 1: investing guide. I designed it to give you the tools 407 00:21:58,600 --> 00:22:01,600 Speaker 1: you need to be able to do value investing, and 408 00:22:01,600 --> 00:22:05,760 Speaker 1: it's specifically for bear markets because that's when, really, that's 409 00:22:05,760 --> 00:22:09,800 Speaker 1: like the best way to time this is when everything 410 00:22:09,880 --> 00:22:13,600 Speaker 1: has kind of crashed, because that's when there's actually value. UM. 411 00:22:13,760 --> 00:22:16,239 Speaker 1: That's when there's actually stocks that are that are on 412 00:22:16,359 --> 00:22:19,560 Speaker 1: sale and so um and so you can you can 413 00:22:19,600 --> 00:22:21,720 Speaker 1: get my bear market investing guide that kind of goes 414 00:22:21,760 --> 00:22:24,200 Speaker 1: through I've got tools and they're really easy to use, 415 00:22:24,520 --> 00:22:28,919 Speaker 1: calculators that you can plug in um uh companies to 416 00:22:29,040 --> 00:22:32,320 Speaker 1: determine whether okay, is this a company that is actually 417 00:22:32,480 --> 00:22:35,320 Speaker 1: on sale? And if so, what price or if not, 418 00:22:35,400 --> 00:22:37,720 Speaker 1: what price should I buy it at for it to 419 00:22:37,800 --> 00:22:41,760 Speaker 1: be on sale? UM. So really easy to understand, breaking 420 00:22:41,760 --> 00:22:45,480 Speaker 1: it down so that you can become a value investor 421 00:22:45,520 --> 00:22:47,680 Speaker 1: and buy stocks when they're on sale and figure out 422 00:22:47,720 --> 00:22:50,240 Speaker 1: which stocks are going to be the best to buy 423 00:22:50,359 --> 00:22:53,960 Speaker 1: during you know, bear markets. UM. But if that seems 424 00:22:53,960 --> 00:22:55,960 Speaker 1: like too much work for you, which I understand is 425 00:22:55,960 --> 00:22:57,040 Speaker 1: a lot of work for a lot of people, you 426 00:22:57,040 --> 00:22:59,439 Speaker 1: can always just get do an e t f uh. 427 00:22:59,520 --> 00:23:02,000 Speaker 1: The next is going to be dividend stocks. This is 428 00:23:02,080 --> 00:23:06,320 Speaker 1: number four dividend stocks. UM. This is something that UM, 429 00:23:06,440 --> 00:23:08,720 Speaker 1: you know, you know, in an interest rate environment that 430 00:23:08,760 --> 00:23:11,199 Speaker 1: we're in right now, the growth environment that we're in 431 00:23:11,280 --> 00:23:14,879 Speaker 1: right now with inflation, cash flowing stocks are going to 432 00:23:14,960 --> 00:23:17,159 Speaker 1: be something that investors are going to really start piling 433 00:23:17,160 --> 00:23:19,960 Speaker 1: into soon. And I'm not talking about them measly half 434 00:23:19,960 --> 00:23:22,600 Speaker 1: a percent, one percent, one and a half percent dividends. 435 00:23:22,800 --> 00:23:25,160 Speaker 1: There are stocks out there that pay significantly more than 436 00:23:25,200 --> 00:23:29,000 Speaker 1: that UM and UM. Usually they're in you know, some 437 00:23:29,080 --> 00:23:32,840 Speaker 1: sort of uh financial business. Sometimes they're in real estate, 438 00:23:33,119 --> 00:23:36,320 Speaker 1: although the performance out of those has not been not 439 00:23:36,440 --> 00:23:40,280 Speaker 1: been stellar recently. But dividend stocks are something that I 440 00:23:40,359 --> 00:23:42,679 Speaker 1: look at as a staple of a portfolio because they 441 00:23:42,720 --> 00:23:45,000 Speaker 1: give you some cash, they give you some income, some 442 00:23:45,119 --> 00:23:49,320 Speaker 1: dry powder that you can use to invest in other things. 443 00:23:49,359 --> 00:23:53,280 Speaker 1: And so in any portfolio, I always like to have 444 00:23:53,280 --> 00:23:56,800 Speaker 1: have income in that portfolio, have cash flow, because if 445 00:23:56,800 --> 00:23:59,280 Speaker 1: you don't, then you just have a bunch of a 446 00:23:59,320 --> 00:24:02,760 Speaker 1: bunch of pay for assets. You're not actually receiving income. 447 00:24:02,800 --> 00:24:06,439 Speaker 1: And so scaling this out, if you you know, go 448 00:24:06,560 --> 00:24:08,840 Speaker 1: to you retire someday and you have a bunch of 449 00:24:08,880 --> 00:24:11,280 Speaker 1: assets that don't cash flow at all. Even if you've 450 00:24:11,320 --> 00:24:15,320 Speaker 1: got ten million dollars in assets that don't pay cash flow, 451 00:24:15,359 --> 00:24:18,760 Speaker 1: that means you have to sell in order to UH 452 00:24:18,800 --> 00:24:21,200 Speaker 1: to pay your bills. Like, if you don't sell your assets, 453 00:24:21,240 --> 00:24:25,520 Speaker 1: then you are bankrupt, You're you're you're you're insolvent, you 454 00:24:25,560 --> 00:24:28,520 Speaker 1: have no income. And so dividend That's what one of 455 00:24:28,560 --> 00:24:31,800 Speaker 1: the reasons why I like dividend stocks as one asset 456 00:24:31,840 --> 00:24:34,760 Speaker 1: in any portfolio, because they provide you with some amount 457 00:24:34,800 --> 00:24:37,719 Speaker 1: of income even if you're reinvesting them for now. UM 458 00:24:37,760 --> 00:24:40,560 Speaker 1: that allows you to accumulate shares. So I really like 459 00:24:40,720 --> 00:24:46,080 Speaker 1: dividend stocks. UM. You can go on any UH, any website, 460 00:24:46,400 --> 00:24:48,400 Speaker 1: stock website, you can look at you if you've got 461 00:24:48,400 --> 00:24:51,119 Speaker 1: a brokerage account somewhere in I A somewhere, just use 462 00:24:51,240 --> 00:24:54,719 Speaker 1: one of their screeners to search for dividend stocks. Just 463 00:24:54,760 --> 00:24:57,560 Speaker 1: be wary of stocks that pay too high of a dividend, 464 00:24:57,680 --> 00:25:00,280 Speaker 1: Like you know, some of them you'll find are like, hey, 465 00:25:00,040 --> 00:25:03,359 Speaker 1: those are most likely because hey they're past iven it 466 00:25:03,560 --> 00:25:06,200 Speaker 1: was and then the stock price crashed. They're not gonna 467 00:25:06,240 --> 00:25:08,480 Speaker 1: be able to keep that up. Basically, that means that 468 00:25:08,520 --> 00:25:14,080 Speaker 1: the company is losing of its total assets just to 469 00:25:14,160 --> 00:25:17,360 Speaker 1: dividend payouts. That's not something that's sustainable. So you want 470 00:25:17,359 --> 00:25:19,840 Speaker 1: to make sure that you're not getting suckered into something 471 00:25:19,880 --> 00:25:23,119 Speaker 1: that is way lower UM or is going to be 472 00:25:23,119 --> 00:25:26,200 Speaker 1: adjusted lower, or something that's unsustainable in the country company 473 00:25:26,400 --> 00:25:31,600 Speaker 1: is on a path to bankruptcy. Alright. Number five rental properties. 474 00:25:31,600 --> 00:25:35,159 Speaker 1: This is something that will probably be UM the most 475 00:25:35,680 --> 00:25:39,399 Speaker 1: uh disagreed on asset class that is on this list. 476 00:25:39,800 --> 00:25:42,920 Speaker 1: But rental properties UM for a couple of reasons, and 477 00:25:43,040 --> 00:25:46,000 Speaker 1: I'm gonna I'm gonna go over like the bullish case 478 00:25:46,080 --> 00:25:48,119 Speaker 1: for real estate in America and the bearish case for 479 00:25:48,160 --> 00:25:51,199 Speaker 1: real estate in America UM. And how either way, rental 480 00:25:51,200 --> 00:25:54,320 Speaker 1: properties are poised to be a great asset class. Maybe 481 00:25:54,320 --> 00:25:57,439 Speaker 1: not in the short term like six months, but um 482 00:25:57,840 --> 00:26:02,119 Speaker 1: definitely when you look longer term. So if we think 483 00:26:02,280 --> 00:26:04,800 Speaker 1: that the stock that the real estate market is going 484 00:26:04,840 --> 00:26:08,880 Speaker 1: to collapse, what what kind of real estate collapse are 485 00:26:08,880 --> 00:26:10,640 Speaker 1: we going to be looking at. We're gonna be looking 486 00:26:10,680 --> 00:26:13,800 Speaker 1: at people who bought houses in the last two years 487 00:26:13,840 --> 00:26:17,600 Speaker 1: because so many people bought houses and they were very expensive, 488 00:26:17,960 --> 00:26:20,000 Speaker 1: and now they look because they want to sell for 489 00:26:20,040 --> 00:26:23,399 Speaker 1: whatever reason, and they can't sell. Um, maybe they're looking 490 00:26:23,480 --> 00:26:25,359 Speaker 1: because they have to sell, they have to move, they 491 00:26:25,359 --> 00:26:27,480 Speaker 1: can't afford the mortgage anymore because they lost their job, 492 00:26:27,520 --> 00:26:29,640 Speaker 1: they gotta pay cut. So we get a bunch of 493 00:26:29,680 --> 00:26:33,679 Speaker 1: forced sellers. Um, you're not going to have many um, 494 00:26:34,080 --> 00:26:37,320 Speaker 1: chosen sellers, because if somebody sells right now, they're going 495 00:26:37,359 --> 00:26:39,480 Speaker 1: to be moving somewhere where they're gonna be paying more. 496 00:26:39,600 --> 00:26:42,199 Speaker 1: Because if they move into the same exact house with 497 00:26:42,240 --> 00:26:44,199 Speaker 1: a new mortgage, they're going to be paying, you know, 498 00:26:44,240 --> 00:26:45,840 Speaker 1: twice as much as they're paying right now if they 499 00:26:45,920 --> 00:26:50,280 Speaker 1: bought during UM. If they go and rent, they're also 500 00:26:50,520 --> 00:26:53,240 Speaker 1: most likely going to be paying more to rent. UM. 501 00:26:53,240 --> 00:26:55,199 Speaker 1: And so you're not gonna have many people choosing to 502 00:26:55,280 --> 00:26:59,600 Speaker 1: sell just for no reason, because they're likely gonna, you know, 503 00:27:00,200 --> 00:27:04,640 Speaker 1: drastically increase their their costs. UM. So what we are 504 00:27:04,640 --> 00:27:07,160 Speaker 1: looking at is a bunch of forced sellers. And so 505 00:27:07,400 --> 00:27:09,640 Speaker 1: there are some people out there, and I'm gonna bring 506 00:27:09,680 --> 00:27:13,320 Speaker 1: on my friend next week to talk about, uh, talk 507 00:27:13,359 --> 00:27:16,760 Speaker 1: about the Barrish case for real estate. UM, there's a 508 00:27:16,760 --> 00:27:19,760 Speaker 1: case to be made for it. I personally don't think 509 00:27:19,840 --> 00:27:22,520 Speaker 1: it's a strong case, but there is a case. Um, 510 00:27:22,560 --> 00:27:25,320 Speaker 1: if that happens, where are all these people going to go? 511 00:27:26,119 --> 00:27:29,320 Speaker 1: It's not like they're gonna be homeless. If we have 512 00:27:29,359 --> 00:27:32,239 Speaker 1: a big real estate crash, a bunch of foreclosures, a 513 00:27:32,280 --> 00:27:35,320 Speaker 1: bunch of sellers that are forced out, where do they go? 514 00:27:36,240 --> 00:27:40,520 Speaker 1: They go and rent every single last one of them. Now, 515 00:27:40,560 --> 00:27:43,000 Speaker 1: are they going to be renting the six D seven 516 00:27:43,600 --> 00:27:47,560 Speaker 1: hundred thousand dollar house renting at five six seven grand 517 00:27:47,600 --> 00:27:52,360 Speaker 1: a month? Absolutely not. They couldn't afford their four thousand 518 00:27:52,359 --> 00:27:55,920 Speaker 1: dollar mortgage. So when they go rent, they're moving into 519 00:27:56,000 --> 00:27:59,320 Speaker 1: a worse neighborhood and they're gonna pay two thousand dollars 520 00:27:59,359 --> 00:28:03,439 Speaker 1: a month, eight thousand dollars a month a month. So 521 00:28:04,640 --> 00:28:07,720 Speaker 1: if we do look, if we do see a real 522 00:28:07,800 --> 00:28:13,520 Speaker 1: estate crash ahead of us, that means lower lower price 523 00:28:14,720 --> 00:28:17,480 Speaker 1: bad you know, not not the A class neighborhoods, but 524 00:28:17,560 --> 00:28:22,200 Speaker 1: the maybe be but most likely C class neighborhoods. These 525 00:28:22,240 --> 00:28:25,159 Speaker 1: are gonna be rented out. They're going to continue to 526 00:28:25,200 --> 00:28:28,240 Speaker 1: be rented out. Now, I don't mean everywhere across the US. 527 00:28:28,320 --> 00:28:30,080 Speaker 1: You have to there's no such thing as the US 528 00:28:30,160 --> 00:28:33,000 Speaker 1: real estate market. As we've said before, there are a 529 00:28:33,040 --> 00:28:36,439 Speaker 1: bunch of real estate markets across the US, and so 530 00:28:36,680 --> 00:28:38,400 Speaker 1: there are going to be places that are not going 531 00:28:38,440 --> 00:28:41,920 Speaker 1: to have uh, they're not gonna have renters even though 532 00:28:41,960 --> 00:28:45,160 Speaker 1: they have a real estate crash. Absolutely. Um. So this 533 00:28:45,240 --> 00:28:50,440 Speaker 1: is all locations specific, but by and large, the cheaper 534 00:28:50,480 --> 00:28:53,880 Speaker 1: houses are gonna stay rented. You're still gonna have renters 535 00:28:53,880 --> 00:28:56,680 Speaker 1: in there, because when everybody gets forced out of their homes, 536 00:28:56,880 --> 00:29:00,240 Speaker 1: they don't become homeless. They go and rent somewhere cheaper. Um. 537 00:29:00,240 --> 00:29:01,960 Speaker 1: And so if we do have real estate crash, rental 538 00:29:01,960 --> 00:29:04,800 Speaker 1: properties are where it's at number two. But if we 539 00:29:04,800 --> 00:29:06,800 Speaker 1: don't have a real estate crash, what if I'm right 540 00:29:07,440 --> 00:29:12,160 Speaker 1: and we have this lull here um And by the 541 00:29:12,200 --> 00:29:15,880 Speaker 1: time a you know, forced selling wave would happen, we 542 00:29:15,920 --> 00:29:18,280 Speaker 1: start to see interest rates moved back down a little bit, 543 00:29:18,280 --> 00:29:20,200 Speaker 1: we start to see activity pick up a little bit. 544 00:29:20,480 --> 00:29:23,600 Speaker 1: Nobody sells because they're not losing their jobs at the 545 00:29:23,960 --> 00:29:27,320 Speaker 1: mass pace that would require forced selling. So everybody stays 546 00:29:27,360 --> 00:29:31,200 Speaker 1: in their homes, and eventually a little bit of price 547 00:29:31,240 --> 00:29:34,680 Speaker 1: increases follow in in homes. And then at some point 548 00:29:34,720 --> 00:29:38,040 Speaker 1: in the future there's another financial crisis and rates drop, 549 00:29:38,160 --> 00:29:40,560 Speaker 1: and then the whole thing explodes again and prices just 550 00:29:40,640 --> 00:29:43,840 Speaker 1: go through the roof. In that case, you still want 551 00:29:43,880 --> 00:29:46,280 Speaker 1: to have exposure to the real estate market. You still 552 00:29:46,280 --> 00:29:49,120 Speaker 1: want to own a bunch of rental properties because as 553 00:29:49,160 --> 00:29:53,240 Speaker 1: always the rental properties are gonna stay rented. There's always 554 00:29:53,240 --> 00:29:55,240 Speaker 1: going to be people that will need a place to 555 00:29:55,360 --> 00:29:58,040 Speaker 1: live because they can't afford to buy, so they have 556 00:29:58,120 --> 00:30:02,160 Speaker 1: to rent. That's always going to exist because we have 557 00:30:02,360 --> 00:30:05,719 Speaker 1: laws in this country that prevent enough supply of homes 558 00:30:05,960 --> 00:30:07,880 Speaker 1: from being built compared to the number of people who 559 00:30:07,920 --> 00:30:11,040 Speaker 1: want a place to live. For over a decade now, 560 00:30:11,200 --> 00:30:15,000 Speaker 1: we've had way fewer homes being built than than than 561 00:30:15,000 --> 00:30:18,800 Speaker 1: our population needs to support, and so we're always going 562 00:30:18,880 --> 00:30:21,960 Speaker 1: to have people who need a place to rent, especially 563 00:30:22,080 --> 00:30:26,040 Speaker 1: if prices skyrocket, because if we get interest rights lowered 564 00:30:26,080 --> 00:30:29,520 Speaker 1: again from an economic crisis, prices start to explode, how 565 00:30:29,560 --> 00:30:31,080 Speaker 1: many people are gonna be able to afford a home. 566 00:30:31,600 --> 00:30:34,600 Speaker 1: If people can't afford to buy now a seven hundred 567 00:30:34,640 --> 00:30:37,760 Speaker 1: thousand dollar house with the four thousand dollar mortgage, they're 568 00:30:37,800 --> 00:30:39,720 Speaker 1: definitely not going to be able to afford that same 569 00:30:39,760 --> 00:30:43,200 Speaker 1: house at a million dollars with six thousand dollar mortgage. 570 00:30:43,320 --> 00:30:46,640 Speaker 1: At two million dollars with a fifteen thousand dollar mortgage, 571 00:30:46,680 --> 00:30:50,280 Speaker 1: there's absolutely no way. So the more you have price 572 00:30:50,320 --> 00:30:54,160 Speaker 1: house how prices of homes going through the roof, the 573 00:30:54,240 --> 00:30:58,200 Speaker 1: more renters you're going to have permanently, because we're gonna 574 00:30:58,240 --> 00:31:01,680 Speaker 1: have an entire class of people locked out from buying permanently, 575 00:31:02,000 --> 00:31:04,200 Speaker 1: so they're gonna be renting. So rental properties again are 576 00:31:04,240 --> 00:31:06,400 Speaker 1: where you're gonna want to be at. So whether we crash, 577 00:31:06,760 --> 00:31:10,120 Speaker 1: whether we skyrocket, you're gonna want some rental properties, even 578 00:31:10,160 --> 00:31:11,960 Speaker 1: it's even if it's just a few, just to have 579 00:31:12,040 --> 00:31:14,440 Speaker 1: your foot in the door, just to have have yourself 580 00:31:14,480 --> 00:31:18,280 Speaker 1: in the game. UM. That's an opinion, not a recommendation, 581 00:31:18,320 --> 00:31:21,480 Speaker 1: not advice, UM, because again I could be completely wrong 582 00:31:21,480 --> 00:31:23,720 Speaker 1: about this, but that's the way I'm playing it, that's 583 00:31:23,720 --> 00:31:27,320 Speaker 1: the way I see it right now. Number six energy 584 00:31:27,480 --> 00:31:31,080 Speaker 1: stocks um So. Energy stocks I think are poised to 585 00:31:31,120 --> 00:31:34,080 Speaker 1: do extremely well. We have in major energy classes like 586 00:31:34,560 --> 00:31:41,040 Speaker 1: in natural gas, in oil, in UM UH, and in 587 00:31:41,040 --> 00:31:46,240 Speaker 1: in uranium, we have UH a huge mismatch between future 588 00:31:46,360 --> 00:31:51,000 Speaker 1: demand and future supply UM and the market is starting 589 00:31:51,040 --> 00:31:52,880 Speaker 1: to wake up to this. So many energy stocks have 590 00:31:52,960 --> 00:31:56,800 Speaker 1: started to perform extremely well over the last six months 591 00:31:56,880 --> 00:32:01,440 Speaker 1: or so. UM Now, obviously d Global zation, political instability 592 00:32:01,560 --> 00:32:04,360 Speaker 1: like Russia, everything like that has a huge thing that 593 00:32:04,400 --> 00:32:06,920 Speaker 1: has a huge impact on it as well. China reopening 594 00:32:07,080 --> 00:32:12,200 Speaker 1: huge impact on this, and so energy stocks, by everything 595 00:32:12,240 --> 00:32:15,840 Speaker 1: happening right now, are set up for a big bull run. 596 00:32:16,040 --> 00:32:21,120 Speaker 1: But we also have extreme imbalances in the amount of reserves, 597 00:32:21,440 --> 00:32:25,320 Speaker 1: in the amount of production in things like oil in 598 00:32:25,440 --> 00:32:28,000 Speaker 1: order to provide for future needs. When you look at 599 00:32:28,000 --> 00:32:31,680 Speaker 1: something like uranium, it's like most uranium comes from Russia 600 00:32:31,800 --> 00:32:34,720 Speaker 1: or the regions around Russia, like they control a ton 601 00:32:35,080 --> 00:32:38,440 Speaker 1: of uranium production. And the world right now is shifting 602 00:32:38,560 --> 00:32:41,600 Speaker 1: very quickly to be pro nuclear if you are. If 603 00:32:41,640 --> 00:32:46,760 Speaker 1: you're against nuclear energy, you're most likely got your education 604 00:32:46,920 --> 00:32:51,560 Speaker 1: about nuclear energy from the Simpsons. Um it's the cleanest 605 00:32:52,200 --> 00:32:54,840 Speaker 1: in terms of like carbon, there's no CEO two emissions 606 00:32:54,920 --> 00:32:59,000 Speaker 1: from nuclear. It's the uh most energy dense, meaning you 607 00:32:59,040 --> 00:33:02,800 Speaker 1: need about a one were a mile um to have 608 00:33:02,800 --> 00:33:06,560 Speaker 1: have a nuclear power plant that same amount of electricity 609 00:33:06,600 --> 00:33:09,719 Speaker 1: production from solar panels, you would need thousands and thousands 610 00:33:09,760 --> 00:33:14,320 Speaker 1: and thousands of acres of solar panels, which destroys local environments. 611 00:33:14,600 --> 00:33:18,600 Speaker 1: You need again the same size for wind wind farms, 612 00:33:18,680 --> 00:33:22,400 Speaker 1: which it destroys you know, it kills bird populations, and 613 00:33:22,640 --> 00:33:25,440 Speaker 1: it's just they're terrible for the local environments. They only 614 00:33:25,560 --> 00:33:29,760 Speaker 1: last like ten to twenty years before these wind uh blades, 615 00:33:29,880 --> 00:33:32,440 Speaker 1: the wind turbine blades have to get replaced, and then 616 00:33:32,440 --> 00:33:34,400 Speaker 1: they can't be recycled. They're just buried in the ground. 617 00:33:34,640 --> 00:33:36,520 Speaker 1: Same thing with the solar panels before they have to 618 00:33:36,520 --> 00:33:38,720 Speaker 1: be replaced. Then they just leach all these toxic metals 619 00:33:38,760 --> 00:33:41,880 Speaker 1: into the landfills. Whereas nuclear they last for you know, 620 00:33:42,160 --> 00:33:46,560 Speaker 1: sixty hundred years plus. Regulations are the reason why they're 621 00:33:46,560 --> 00:33:49,720 Speaker 1: shutting them down, not because they're needing to be shut down, 622 00:33:50,120 --> 00:33:52,560 Speaker 1: um and uh. And so they're much more energy dense 623 00:33:53,160 --> 00:33:56,640 Speaker 1: a coffee cup. You fill up a coffee cup with uranium, 624 00:33:56,680 --> 00:33:59,400 Speaker 1: that's enough uranium to produce more electricity than you will 625 00:33:59,400 --> 00:34:02,400 Speaker 1: ever use in your entire life. And so there's no 626 00:34:02,440 --> 00:34:05,560 Speaker 1: waste problem. We solve the waste problem decades ago. We 627 00:34:05,680 --> 00:34:10,160 Speaker 1: have it encased in earthquake proof casks that has proven 628 00:34:10,160 --> 00:34:12,000 Speaker 1: they're way stronger than earthquakes. And then they go below 629 00:34:12,040 --> 00:34:14,840 Speaker 1: the water table when they're drilled in into the ground. 630 00:34:15,200 --> 00:34:18,880 Speaker 1: There's no possible for leakage into any water supply or 631 00:34:18,880 --> 00:34:21,799 Speaker 1: anything like that it's not like goo. It's like hard 632 00:34:21,880 --> 00:34:24,759 Speaker 1: materials like glass and metal um that are encased in 633 00:34:24,800 --> 00:34:30,600 Speaker 1: these massive, you know, concrete blocks. And so if if 634 00:34:30,680 --> 00:34:33,320 Speaker 1: you uh do a little bit of research, because the 635 00:34:33,360 --> 00:34:36,560 Speaker 1: public opinion is waking up to this, because more and 636 00:34:36,560 --> 00:34:39,440 Speaker 1: more scientists have been talking about this and they're realizing, hey, 637 00:34:39,600 --> 00:34:42,239 Speaker 1: if we want any shot of like going green, having 638 00:34:42,320 --> 00:34:45,120 Speaker 1: enough energy needs for the future, like competing in a 639 00:34:45,120 --> 00:34:47,960 Speaker 1: global world, nuclear is are best shot at this. And 640 00:34:48,000 --> 00:34:49,719 Speaker 1: so people are waking up and there's gonna be a 641 00:34:49,719 --> 00:34:54,280 Speaker 1: big shift. And America doesn't produce any uranium, that's a fact. 642 00:34:54,400 --> 00:34:57,600 Speaker 1: So most most uranium comes from places where we don't 643 00:34:57,600 --> 00:35:00,239 Speaker 1: want to get that uranium from anymore. And so having 644 00:35:00,280 --> 00:35:08,080 Speaker 1: exposure to uranium stocks that are that have Western based properties, 645 00:35:08,560 --> 00:35:10,799 Speaker 1: UM could probably be uh could probably be a big 646 00:35:10,800 --> 00:35:14,400 Speaker 1: winner over the next decade. Commodity miners is number seven 647 00:35:14,560 --> 00:35:17,400 Speaker 1: commodity miners. So I talked about gold and silver, the 648 00:35:17,440 --> 00:35:20,239 Speaker 1: bullish case for that, which means that the companies that 649 00:35:20,440 --> 00:35:23,680 Speaker 1: produce more of it are going to have uh, you know, 650 00:35:23,760 --> 00:35:28,160 Speaker 1: outsized profits because it's kind of like a leveraged leverage bet. 651 00:35:28,200 --> 00:35:30,000 Speaker 1: They've got a ton of gold or a ton of 652 00:35:30,040 --> 00:35:33,319 Speaker 1: silver or other other commodities as well, like copper. So 653 00:35:33,480 --> 00:35:35,759 Speaker 1: they've got a ton of it in the ground. And 654 00:35:35,800 --> 00:35:39,440 Speaker 1: so when when the commodity goes up, you know, like 655 00:35:39,480 --> 00:35:43,480 Speaker 1: ten per cent um, that means that the company just 656 00:35:43,800 --> 00:35:47,759 Speaker 1: massively increases its profits. Because if they're making you know, 657 00:35:47,840 --> 00:35:50,040 Speaker 1: if it costs them let's say a thousand dollars to 658 00:35:50,040 --> 00:35:51,920 Speaker 1: get gold out of the ground, they can sell to 659 00:35:52,000 --> 00:35:54,920 Speaker 1: eighteen hundred dollars, they have an eight hundred dollar profit. 660 00:35:55,160 --> 00:35:59,359 Speaker 1: So if gold goes up to let's say, they're still 661 00:35:59,400 --> 00:36:02,160 Speaker 1: getting it out of ground for a thousand dollars. So 662 00:36:02,320 --> 00:36:04,080 Speaker 1: but now instead of selling it for eighteen hundred they're 663 00:36:04,080 --> 00:36:09,440 Speaker 1: selling it. Let's say that's a one increase in their profits, 664 00:36:10,920 --> 00:36:12,759 Speaker 1: but the goal didn't have to go up by one 665 00:36:13,480 --> 00:36:16,080 Speaker 1: to get that hundred percent increase in profits, And so 666 00:36:16,640 --> 00:36:22,080 Speaker 1: you have a kind of a leveraged um returns on miners. Now, 667 00:36:22,120 --> 00:36:25,640 Speaker 1: this isn't to replace physical metal physical metals like a 668 00:36:25,640 --> 00:36:29,200 Speaker 1: good hedge against inflation, a good hedge against you know, 669 00:36:29,520 --> 00:36:31,360 Speaker 1: you know, you can take that wealth with you, you 670 00:36:31,400 --> 00:36:33,000 Speaker 1: can travel with it, you can send like you have 671 00:36:33,080 --> 00:36:34,880 Speaker 1: got purchasing power, you can barter with it in a 672 00:36:34,920 --> 00:36:38,319 Speaker 1: grid down situation like it's it's a good thing to 673 00:36:38,400 --> 00:36:41,160 Speaker 1: have physical metal in your possession, and miners are not 674 00:36:41,520 --> 00:36:44,000 Speaker 1: a replacement for that. Miners are stocks, and so they 675 00:36:44,040 --> 00:36:46,080 Speaker 1: should be treated as such their businesses. So you've got 676 00:36:46,080 --> 00:36:48,399 Speaker 1: to make sure that you're investing in an actual good 677 00:36:48,400 --> 00:36:50,560 Speaker 1: business with a good resource, that's managed by a good 678 00:36:50,600 --> 00:36:52,960 Speaker 1: team with a good proven track record that knows how 679 00:36:53,000 --> 00:36:54,120 Speaker 1: to get it out of the ground. And it's not 680 00:36:54,200 --> 00:36:56,880 Speaker 1: just selling a pipe dream just to get investors money. 681 00:36:57,080 --> 00:36:59,000 Speaker 1: And so you want to make sure that they're actually 682 00:36:59,000 --> 00:37:00,839 Speaker 1: going to do what they the they're gonna do, which 683 00:37:00,960 --> 00:37:04,200 Speaker 1: is eventually bring that mind to production and start selling 684 00:37:04,239 --> 00:37:08,239 Speaker 1: that gold um. Same thing with other with other commodities. 685 00:37:08,760 --> 00:37:12,400 Speaker 1: But as as this whole situation that our world is 686 00:37:12,400 --> 00:37:15,520 Speaker 1: in continues, more and more money will start flooding into 687 00:37:15,719 --> 00:37:18,720 Speaker 1: commodity miners because there's not that many of them left. 688 00:37:19,520 --> 00:37:23,759 Speaker 1: After the big two thousand eleven bubble and crash, lots 689 00:37:23,800 --> 00:37:27,560 Speaker 1: of investor money went away from commodities, from miners, and 690 00:37:27,760 --> 00:37:29,919 Speaker 1: a lot of companies went out of business, so there's 691 00:37:29,960 --> 00:37:32,960 Speaker 1: only a few left. And when a tide turns, it's 692 00:37:33,000 --> 00:37:34,719 Speaker 1: like fire hose going through the eye of a needle, 693 00:37:34,880 --> 00:37:36,680 Speaker 1: So there's gonna be you know, kind of like a 694 00:37:36,800 --> 00:37:40,080 Speaker 1: rising tide lifts all boats situation probably going on pretty soon. 695 00:37:41,120 --> 00:37:44,600 Speaker 1: Number eight is bitcoin. This might be the other controversial 696 00:37:44,640 --> 00:37:49,040 Speaker 1: asset that I have on this list. Bitcoin um has 697 00:37:49,080 --> 00:37:53,320 Speaker 1: obviously been through a big decline. Uh. It is currently 698 00:37:53,320 --> 00:37:55,600 Speaker 1: as at the time of this recording, trading at seventour 699 00:37:55,640 --> 00:37:58,880 Speaker 1: hundred thirty seven dollars. That is down from its peak 700 00:37:59,040 --> 00:38:04,640 Speaker 1: at about sixty nine thousand dollars. So it's down about 701 00:38:04,840 --> 00:38:08,680 Speaker 1: seventy five per cent from its peak. In terms of 702 00:38:08,719 --> 00:38:12,600 Speaker 1: bear markets four bitcoin, that's pretty average when you look 703 00:38:12,600 --> 00:38:15,480 Speaker 1: at its declines from top to bottom. That's right in 704 00:38:15,560 --> 00:38:19,279 Speaker 1: there with where you would expect it to fall given 705 00:38:19,320 --> 00:38:23,680 Speaker 1: its historical pattern. And so this, in my opinion, is 706 00:38:23,680 --> 00:38:27,520 Speaker 1: a good place to start accumulating pretty aggressively. Uh, not 707 00:38:27,600 --> 00:38:30,520 Speaker 1: going all in, but it's like, well, how much farther 708 00:38:30,600 --> 00:38:32,879 Speaker 1: will it fall from here? It could keep, it could 709 00:38:32,920 --> 00:38:36,080 Speaker 1: go to zero. So I'm not saying that um, but 710 00:38:36,400 --> 00:38:38,759 Speaker 1: when you look at how far has fallen in the 711 00:38:38,800 --> 00:38:42,439 Speaker 1: past from top to a bottom move, it's like, yeah, 712 00:38:42,520 --> 00:38:45,160 Speaker 1: se if you would have in the past bear markets 713 00:38:45,280 --> 00:38:49,799 Speaker 1: started buying again after a se decline, you would have. 714 00:38:50,000 --> 00:38:52,719 Speaker 1: You would have been buying at a pretty pretty attractive 715 00:38:52,760 --> 00:38:57,400 Speaker 1: price considering the next bowl market, which usually takes it 716 00:38:57,480 --> 00:39:00,640 Speaker 1: up much much further than the peak of its last 717 00:39:01,120 --> 00:39:05,400 Speaker 1: bull market. So I'm pretty bullish. I like buying bitcoin 718 00:39:05,560 --> 00:39:09,000 Speaker 1: at this price. Couldn't go down further, absolutely, but to 719 00:39:09,080 --> 00:39:12,000 Speaker 1: me right now, the risk to reward ratio, which to 720 00:39:12,160 --> 00:39:14,600 Speaker 1: be fair, has been I've been saying the same thing. 721 00:39:14,640 --> 00:39:19,279 Speaker 1: I've never said to sell bitcoin. Um since I in 722 00:39:19,320 --> 00:39:24,880 Speaker 1: about Let's see when was it. It was April. It 723 00:39:24,960 --> 00:39:29,840 Speaker 1: was either April or October of twenty twenty, I can't remember. 724 00:39:29,880 --> 00:39:33,080 Speaker 1: It was sometime in at the latest. It was October 725 00:39:35,400 --> 00:39:38,120 Speaker 1: when I started buying bitcoin when I changed my mind 726 00:39:38,120 --> 00:39:40,279 Speaker 1: about it. That's when I learned really decided to study it, 727 00:39:40,360 --> 00:39:43,480 Speaker 1: learn about it. When I discovered it, and um, the 728 00:39:43,480 --> 00:39:45,160 Speaker 1: more I learned about it, the more I realized, Wow, 729 00:39:45,200 --> 00:39:46,960 Speaker 1: this is a big deal, this is this is good stuff. 730 00:39:46,960 --> 00:39:49,960 Speaker 1: And so I started buying it then. Um, And so 731 00:39:50,000 --> 00:39:52,200 Speaker 1: since then, I've never said, hey, I think it's going 732 00:39:52,239 --> 00:39:54,720 Speaker 1: to go down from here. So obviously I was wrong 733 00:39:54,760 --> 00:39:57,399 Speaker 1: about that when I was saying, you know that I 734 00:39:57,480 --> 00:40:03,800 Speaker 1: was bullish on it when it was at sixty sixty UM. 735 00:40:03,840 --> 00:40:07,720 Speaker 1: But uh, but the fundamentals haven't changed. The price has changed, 736 00:40:07,840 --> 00:40:10,360 Speaker 1: the fundamentals haven't changed. Nothing has changed about it. It 737 00:40:10,480 --> 00:40:13,440 Speaker 1: is a sensor resistant form of money. It's like gold 738 00:40:13,640 --> 00:40:17,960 Speaker 1: in terms of properties of hardness, UM, resistance to censorship, 739 00:40:18,280 --> 00:40:21,640 Speaker 1: resistance to theft. In terms of it's like, uh, properties 740 00:40:21,680 --> 00:40:24,200 Speaker 1: like if it gets like if you accidentally give it 741 00:40:24,239 --> 00:40:26,600 Speaker 1: to somebody and they have it now, like you can't 742 00:40:26,600 --> 00:40:28,680 Speaker 1: go get it back. Same thing with cash. If you 743 00:40:28,680 --> 00:40:30,719 Speaker 1: actually give somebody cash and then they run away, it's like, 744 00:40:30,880 --> 00:40:32,600 Speaker 1: you can't go get that back. You can't just call 745 00:40:32,680 --> 00:40:34,600 Speaker 1: up your bank and say, hey, give me that cash back. 746 00:40:34,920 --> 00:40:37,840 Speaker 1: And so there are some like you know, properties to 747 00:40:37,960 --> 00:40:41,480 Speaker 1: it that make it perform very similarly to a hard 748 00:40:41,880 --> 00:40:45,480 Speaker 1: physical currency. Uh. The differences as digital so you can 749 00:40:45,520 --> 00:40:50,239 Speaker 1: pay across large distances of space, which is what we 750 00:40:50,280 --> 00:40:52,880 Speaker 1: need for the future. You need something that is hard 751 00:40:52,920 --> 00:40:56,279 Speaker 1: so you preserve your purchasing power over large periods of time, 752 00:40:56,520 --> 00:40:59,120 Speaker 1: like gold, something that can't be inflated away. But you 753 00:40:59,160 --> 00:41:01,200 Speaker 1: also need something that as digital that can you know, 754 00:41:01,239 --> 00:41:05,880 Speaker 1: transact immediately over any space, so that you can have 755 00:41:06,000 --> 00:41:10,360 Speaker 1: it serve as base money for for an economy. UM 756 00:41:10,400 --> 00:41:12,840 Speaker 1: now I don't know whether people adopted as money, but 757 00:41:12,960 --> 00:41:15,680 Speaker 1: if they do, will have a very strong economy on 758 00:41:15,760 --> 00:41:18,160 Speaker 1: top of it. Um and if they do, the price 759 00:41:18,200 --> 00:41:20,040 Speaker 1: will have to be much higher than it is today 760 00:41:20,080 --> 00:41:23,800 Speaker 1: in order to support the market cap of pricing everything 761 00:41:23,840 --> 00:41:26,279 Speaker 1: in the entire global economy. So that would be like, 762 00:41:26,320 --> 00:41:29,120 Speaker 1: you know, at least a million dollars per bitcoin for 763 00:41:29,120 --> 00:41:31,240 Speaker 1: for that to be the case. So the risk reward 764 00:41:31,320 --> 00:41:33,520 Speaker 1: ratio for me is worth it because I think if 765 00:41:33,640 --> 00:41:36,400 Speaker 1: bitcoin does become money, well number one, it will have 766 00:41:36,480 --> 00:41:38,400 Speaker 1: to go up in price a lot. Number two, it 767 00:41:38,400 --> 00:41:40,160 Speaker 1: will be a very good world, Like we will want 768 00:41:40,160 --> 00:41:42,480 Speaker 1: to live in a world where a bitcoin is money. Um, 769 00:41:42,520 --> 00:41:45,920 Speaker 1: I don't think that's inevitable. I don't think that's definitely 770 00:41:46,000 --> 00:41:48,359 Speaker 1: an assurance that that's going to happen. But if it does, 771 00:41:48,600 --> 00:41:50,520 Speaker 1: it will be very good. So I like buying bitcoin 772 00:41:51,280 --> 00:41:54,120 Speaker 1: number nine, last one on list. Learn how to hedge 773 00:41:54,120 --> 00:41:56,799 Speaker 1: and speculate, so obviously I teach how to do this 774 00:41:56,880 --> 00:41:59,920 Speaker 1: as well. This is my other course about portfolio allocation, 775 00:42:00,040 --> 00:42:02,040 Speaker 1: and got a whole section there on hedging and using 776 00:42:02,080 --> 00:42:05,839 Speaker 1: options to head your portfolio and speculate. But basically this 777 00:42:05,920 --> 00:42:09,200 Speaker 1: is something that is extremely important UH in volatile times 778 00:42:09,360 --> 00:42:11,200 Speaker 1: that you know how to head your downside risk because 779 00:42:11,200 --> 00:42:13,120 Speaker 1: if you invest in an asset and then it goes 780 00:42:13,160 --> 00:42:16,880 Speaker 1: down by well, how much do you need just to 781 00:42:16,880 --> 00:42:19,839 Speaker 1: get back to even? You don't need fifty If you're 782 00:42:19,920 --> 00:42:22,879 Speaker 1: fifty percent down and then fifty percent up, you're still 783 00:42:22,920 --> 00:42:26,640 Speaker 1: down from where you started. So when you go down, 784 00:42:27,680 --> 00:42:30,399 Speaker 1: you need a one cent gain just to get back 785 00:42:30,440 --> 00:42:34,160 Speaker 1: to even. And you know how rarecent gains are, like, 786 00:42:34,640 --> 00:42:38,719 Speaker 1: that's that's pretty rare. And so when we look at UM, 787 00:42:38,760 --> 00:42:40,840 Speaker 1: when we look at investing, the number one rule of 788 00:42:40,880 --> 00:42:43,480 Speaker 1: every single of the most successful investors and traders that 789 00:42:43,640 --> 00:42:47,479 Speaker 1: history is don't lose money, protect your downside risk, manage risk, 790 00:42:47,960 --> 00:42:50,640 Speaker 1: never expose yourself to blow up, do not let yourself 791 00:42:50,640 --> 00:42:53,080 Speaker 1: have a large draw down. Every single one across the board, 792 00:42:53,080 --> 00:42:55,520 Speaker 1: of all the successful ones, that's the number on one rule. 793 00:42:55,840 --> 00:42:58,800 Speaker 1: They all have other ways, they all have different ways 794 00:42:58,880 --> 00:43:02,319 Speaker 1: that they make money, but their number one rule all 795 00:43:02,320 --> 00:43:05,719 Speaker 1: of them is don't lose money. And so you can 796 00:43:05,760 --> 00:43:07,920 Speaker 1: do this a number of ways, which is like, you know, 797 00:43:08,040 --> 00:43:12,960 Speaker 1: you can manage risk by really studying and UM, getting 798 00:43:13,000 --> 00:43:16,840 Speaker 1: skilled at UH fundamentals and being able to look at 799 00:43:16,880 --> 00:43:19,400 Speaker 1: a company and say, hey, look, I know the fundamentals 800 00:43:19,400 --> 00:43:21,319 Speaker 1: of this company. I know the management team, and I 801 00:43:21,400 --> 00:43:23,920 Speaker 1: know they're undervalued, and so I know that the market 802 00:43:23,920 --> 00:43:26,000 Speaker 1: will eventually respond and the company is going to be 803 00:43:26,040 --> 00:43:29,000 Speaker 1: worth it is worth at least, let's say, a hundred 804 00:43:29,000 --> 00:43:31,440 Speaker 1: dollars a share, but right now the market thinks it's 805 00:43:31,440 --> 00:43:34,839 Speaker 1: only worth fifty dollars a share. And so I've got uh, 806 00:43:34,880 --> 00:43:37,919 Speaker 1: you know, I've got an inside you know, knowledge here. 807 00:43:37,960 --> 00:43:40,319 Speaker 1: I know that the market is wrong about this. So 808 00:43:40,640 --> 00:43:42,960 Speaker 1: you can heade your risk. You can get rid of 809 00:43:43,080 --> 00:43:46,560 Speaker 1: risk by understanding the fundamentals of a company enough to 810 00:43:46,600 --> 00:43:50,800 Speaker 1: be able to say, no, the market's wrong, I'm right. UM. 811 00:43:50,880 --> 00:43:53,360 Speaker 1: That's pretty difficult though, because the consensus has a lot 812 00:43:53,400 --> 00:43:55,560 Speaker 1: of smart money out there that's all looking to make money, 813 00:43:55,760 --> 00:43:57,359 Speaker 1: and they are all a lot of them are doing 814 00:43:57,400 --> 00:44:02,239 Speaker 1: fundamental analysis too, and so UM, the possibility that the 815 00:44:02,280 --> 00:44:04,919 Speaker 1: market is the entire market is wrong and you're right 816 00:44:05,440 --> 00:44:09,080 Speaker 1: is um. Uh is a lot worse. As a beginner, 817 00:44:09,120 --> 00:44:12,080 Speaker 1: the chances are a lot worse. UM. And so hedging 818 00:44:12,320 --> 00:44:17,359 Speaker 1: through using something like options UM allows you to uh, 819 00:44:17,520 --> 00:44:20,520 Speaker 1: you know, kind of transfer some of the risk of 820 00:44:20,520 --> 00:44:23,920 Speaker 1: your ignorance. UM. You know, to put it bluntly, that 821 00:44:24,040 --> 00:44:27,000 Speaker 1: if you don't know for sure that you are right 822 00:44:27,080 --> 00:44:30,120 Speaker 1: about this company, well, then hedge that ignorance away so 823 00:44:30,120 --> 00:44:32,759 Speaker 1: that if it falls, it's like fire insurance that you 824 00:44:32,800 --> 00:44:34,920 Speaker 1: don't have to pay for your ignorance. You don't have 825 00:44:34,960 --> 00:44:36,920 Speaker 1: to pay for that mistake, that you don't have to 826 00:44:36,920 --> 00:44:41,080 Speaker 1: expose yourself to the loss. There, So instead of exposing 827 00:44:41,080 --> 00:44:43,840 Speaker 1: yourself to the risk of a large loss, you guarantee 828 00:44:43,840 --> 00:44:46,560 Speaker 1: yourself a very small loss by buying that insurance by 829 00:44:46,600 --> 00:44:49,560 Speaker 1: hedging with options, and now you don't have to worry 830 00:44:49,600 --> 00:44:51,719 Speaker 1: about a large draw down. The other thing you can 831 00:44:51,760 --> 00:44:55,480 Speaker 1: do with options is speculate safely. And so it's ironic 832 00:44:55,520 --> 00:44:57,759 Speaker 1: here because when you use something that allows you to 833 00:44:57,840 --> 00:44:59,959 Speaker 1: speculate a lot of people think, well, that's to risk, 834 00:45:00,400 --> 00:45:04,120 Speaker 1: but it allows you to then minimize the risk of 835 00:45:04,160 --> 00:45:07,200 Speaker 1: taking risks. And so if you think there's a company 836 00:45:07,239 --> 00:45:09,359 Speaker 1: that's going to do extremely well but you're not sure, 837 00:45:09,520 --> 00:45:11,880 Speaker 1: well you don't want to put five ten percent of 838 00:45:11,880 --> 00:45:14,520 Speaker 1: your portfolio into it, but maybe you want to take 839 00:45:14,920 --> 00:45:18,120 Speaker 1: a half of one percent of your portfolio and use 840 00:45:18,160 --> 00:45:20,399 Speaker 1: options to speculate on it, so that if it does 841 00:45:20,440 --> 00:45:22,920 Speaker 1: do very well, you still make you know for your 842 00:45:22,920 --> 00:45:25,440 Speaker 1: overall portfolio performance of an increase of like you know, 843 00:45:25,520 --> 00:45:28,279 Speaker 1: one to three, But you didn't have to put in 844 00:45:28,320 --> 00:45:31,560 Speaker 1: a ton of money in order to get yourself that 845 00:45:31,719 --> 00:45:34,839 Speaker 1: upside potential. And if you're wrong, well then you only 846 00:45:34,880 --> 00:45:38,319 Speaker 1: lose a very small amount. So it's important to learn, 847 00:45:38,680 --> 00:45:42,040 Speaker 1: I think, for most investors today, how to use options 848 00:45:42,120 --> 00:45:46,320 Speaker 1: to hedge and speculate. Just very basic stuff, very basic 849 00:45:46,520 --> 00:45:51,840 Speaker 1: um options strategies because most people their investments are composed 850 00:45:51,880 --> 00:45:54,520 Speaker 1: of stocks and so, and even with real estate, like 851 00:45:54,560 --> 00:45:57,560 Speaker 1: you can hedge your real estate portfolio by buying puts 852 00:45:57,680 --> 00:46:01,799 Speaker 1: on real estate companies like reats and so there are 853 00:46:01,800 --> 00:46:05,000 Speaker 1: there there are ways that sophisticated investors protect themselves from 854 00:46:05,040 --> 00:46:08,160 Speaker 1: lost and from loss, and one of those is using options. 855 00:46:08,160 --> 00:46:10,920 Speaker 1: And so number nine on my list is options so 856 00:46:10,960 --> 00:46:14,759 Speaker 1: that you can learn how to speculate and hedge your portfolio. 857 00:46:14,960 --> 00:46:17,760 Speaker 1: And again I teach this in my Portfolio Allocation class. 858 00:46:18,000 --> 00:46:19,640 Speaker 1: I will link that in the show notes as well. 859 00:46:19,680 --> 00:46:22,560 Speaker 1: You can also find that through my website. Thank you 860 00:46:22,680 --> 00:46:26,040 Speaker 1: so much for listening to another episode, and we'll see 861 00:46:26,160 --> 00:46:27,439 Speaker 1: guys next week