On today's episode of the Fresh Fit Podcast, we have a special guest in the house, Tom Nash. We talk about inflation, the stock market, and a potential recession in the U.S. Tom is a financial and business content creator on YouTube and has been with us for a few years now. He's been on the show before, but it's been a while and we finally got him back on the pod. We discuss inflation and what it means for the economy and how to fight inflation without causing a recession. We also talk about the best way to deal with inflation and the impact it can have on the economy, and what to do about it. You won't want to miss this episode! Fresh Fit is a podcast that helps you stop being Brokies and poor. Subscribe today using our podcast s promo code: PODCAST at checkout to get 20% off your first month with discount code: MONEYFIT. FreshFit is all about helping you take care of your money, your bills, your investments, and your day-to-day expenses so you can live a life you love! Subscribe to Fresh Fit and get 10% off the first month of your first purchase! Produced and edited by: Fresh Fit Subscribe on iTunes Learn more about your ad choices. Rate/subscribe in Apple Podcasts! Rate, review, review and subscribe to our podcast! and become a supporter of our future episodes! If you like the podcast, we'll be giving you a FREE 7-day shipping offer! We'll be looking out to you! Thanks! in the next episode we'll send you an ad-free version of FreshFit Podcast! - Tom Nash - Subscribe, rate, and much more! Want to sponsor the podcast? I'll be picking you guys can win a chance to win a prize, too get a discount on my next episode, and I'll give you a shoutout, and you'll get an ad, too hear about my next one in next week, too receive an ad on the next one, and so much more... and so on the podcast will be a review, too review it out there! Thank you, Tom will be helping you can vouch for me, too, I'll send it out in the podcast and more of my podcast, so I'll get a review and more info about the show, and more, etc..
00:01:00.000So we're not even going to go into the announcements, really.
00:01:02.000We got a special guest in the house, Tom Nash.
00:01:04.000We've been meaning to have this podcast with y'all for a bit, but you guys know we went to Romania, then we were hanging out with the Tates, we were in London, etc., and me and Tom had been talking the whole time.
00:01:13.000So we finally were able to hit him up.
00:01:15.000I was like, yo, we need you back on the show, man.
00:01:16.000We're long overdue for another show on money, geopolitics, everything else like that.
00:01:37.000I do financial and business content on YouTube.
00:01:41.000It's my second time here in this fabulous podcast, and I'm here to talk about economics, the stock market, geopolitics, and anything that has to do with taking care of your money, pretty much.
00:02:13.000So basically there's a big debate right now in the U.S. and basically the idea is can we battle inflation without causing everybody to lose everything?
00:02:26.000Essentially can the U.S. get rid of inflation without causing a recession?
00:02:32.000The problem is that this is literally impossible and yet yesterday Secretary Janet Yellen It comes out and says, hey, we will be able to battle inflation and not cause a recession because when you hear the rationale,
00:02:49.000there's not a lot of good explanations out there.
00:02:51.000Essentially, the government is now telling you that We will be able to get rid of this inflationary spikes without any sort of pain, which is literally impossible because if you think about it, what is inflation?
00:03:15.000Now, there's two ways to stop the prices from going up.
00:03:19.000By the way, prices never go down, but you can stop it from going up too fast.
00:03:23.000And it's either by flooding the market with a massive amount of supply that can cause the prices to go down in any industry, whether it's real estate, cars, whatever.
00:03:34.000Impossible because the supply chains are absolutely screwed post-COVID with the geopolitics right now.
00:03:41.000I mean, there's no way to really flood the market with goods and services right now at all.
00:03:44.000So with the supply chain screwed, the other option, the only other alternative in the market right now Is to slow down demand because inflation happens when you, me and Fresh and all of us are competing for the same amount of goods.
00:03:58.000So when there's a lot of people who want to buy the same thing, the price goes up, right?
00:04:01.000But if you cause us to have less desire to buy things, basically the prices will come down.
00:05:50.000And by causing more unemployment, essentially collapse the economic insanity, the frenzy we have going on right now, hopefully then people will have less money and then hopefully that will stop inflation.
00:06:05.000If they were upfront about it and just say, hey, we're going to cause a lot of pain, that would have been fine.
00:06:10.000But they send out people like Janet Yellen out there and basically explaining to you how everything is fine.
00:06:15.000To me, it seems like very similar to the Titanic when it was sinking and the band was playing to keep people calm.
00:06:45.000Yeah, so there's a lot of data points you can go in Google right now and they're not super complicated.
00:06:49.000For once, we have in the US this thing called the disposable personal income.
00:06:54.000Basically, the government knows exactly how much money we have after tax and after we paid for everything.
00:06:59.000So for example, if I make 100 bucks this month, I spent 30 for everyday stuff, for living, for housing, for shelter, for food, and then I paid another 40 for tax.
00:07:10.000So I spent 70 dollars, I have 30 dollars left, that's my disposable income.
00:07:14.000It's my kind of free cash flow for individuals, right?
00:07:16.000So the government knows exactly these numbers, how much everybody has, because they run the books for everybody.
00:07:22.000Now, there's a very important metric that's called disposable personal income as a percentage, sorry, personal savings as a percentage of disposable personal income.
00:07:31.000Essentially, how much dollars are people saving as a percentage of their free cash flow?
00:09:19.000But here's the problem with job market.
00:09:21.000And you would really fuck with what I'm saying right now because you run a business.
00:09:25.000When people have a business, whether it's a small business, a mom-and-pop shop, or a conglomerate, whatever that may be, they don't like to fire employees.
00:09:35.000When things get bad, you don't automatically fire employees.
00:09:38.000You try to last as much as you can because you're hoping for better times.
00:09:42.000Saying, okay, let's try another month, another six months.
00:11:42.000What's about to happen based on the data point I just showed you is the job market is actually going to spike It's not going to go from 3.7 to 3.8 to 3.9 to 4 over the course of a year.
00:11:52.000It's going to happen very quickly and very violently.
00:11:55.000And when this happens, think about it.
00:13:27.000By the way, there's other metrics I can show you which are even scarier.
00:13:33.000But let's keep it gentle, so I'll just show you a few.
00:13:39.000You're not going to hear this on CNN or Fox or even on CNBC because it's just, A, they think it's too complicated, they think their audience are stupid, and they don't actually share this information.
00:13:50.000But you can Google it, it's free to get.
00:13:52.000So, JP Morgan has an index called the PMI, the Producers Manufacturers Index.
00:13:57.000It's the composite PMI. And they measure global economic activity.
00:14:03.000It's like an obscene amount of 14,000 producers, manufacturers over 40 countries.
00:14:10.000It's basically like the top 98% of global manufacturing.
00:14:15.000Except just the minor issues that they don't measure.
00:14:18.000And this global PMI has been around since 2009.
00:14:22.000This is a very elaborate timbre system, but just to tell you, the average is always 50.
00:14:27.000It kind of hovers around 50 when things are okay.
00:14:33.000When the pandemic money came in, the 5 trillion, we went to 60.
00:14:37.000But except for this anomaly, it was always 50, 52, 53.
00:14:42.000We've been going downhill for the past six months, and the downhill is accelerating more and more and more and more.
00:14:49.000We are right now, if you carve out the pandemic time, which is an anomaly, we are right now at the lowest of all time we had the PMI, which is 48 or 49.
00:15:00.000Based on this data, and they actually measure specific industry, everything in the US, every single industry, excluding healthcare, everything shrunk in the past two quarters, and it's shrinking more and more.
00:15:43.000And me as a real estate guy, when we deal with them trying to deal with inflation, one of the biggest ways that they do so is by raising interest rates.
00:15:51.000Right now, I'm actually going to close on two houses this Friday, guys.
00:15:54.000And the interest rates I'm going to get are right around the sixes.
00:15:57.000But a year ago, goddammit, a year and a half ago, I was buying houses at fucking 3%, you know?
00:16:05.000I'm happy with my 6% or whatever, which I had to buy down, by the way, because when you buy an investment property nowadays, you're going to have to pay 7-something, and then, you know, I paid some extra money to get the points down, bring it down to 6%, you know, because I keep my properties long-term, you know, with the 30-year fixed.
00:16:18.000So for me, I want to bring that interest rate down.
00:16:20.000But the real estate market has also experienced some new things going on here, and me and you were discussing it right before the show.
00:16:26.000Do you want to tell the people about it?
00:16:35.000If the economy goes to the toilet, there's not going to be any safe havens.
00:16:40.000The only safe haven would be for patient people who are willing to stay in for years and stay true to their investment strategy and not get panicked.
00:16:51.000Short term, it's going to be very painful.
00:16:53.000And real estate isn't going to be immune to this.
00:16:55.000I mean, everything will take a hit, real estate included.
00:16:58.000The first signs of this already are starting to form, and it's kind of alarming, to be honest.
00:17:04.000So basically, You obviously know this, but I'll explain to the audience.
00:17:08.000There's a way to invest in real estate if you don't have money to buy assets like FED does, like actual property.
00:17:16.000You can do either syndications or you can invest in the REIT. REIT is a real estate investment trust.
00:17:23.000Essentially, this is a pooled investment.
00:17:26.000The simple way to describe it is everybody pulls their money, the REIT invests in real estate, that real estate generates income from rentals, and then that REIT has to distribute like 90% of it.
00:17:38.000And when they do, the REIT doesn't pay taxes and you pay directly the tax and you get the benefits of the depreciation, whatever.
00:18:28.000There's public REITs, which is the majority of REITs, and there's private REITs.
00:18:31.000Not a lot, but there are out there private REITs.
00:18:35.000The conditions to get in is mostly to be a credit investor, but for the good reach, like the one I'm going to tell you right now, it's hard to get in.
00:18:53.000So anyways, the two biggest REITs, private REITs in the US are one that's called the B-REIT. It's a Blackstone, not Blackrock, Blackstone REIT. And there's another one called Starwood Capital.
00:19:05.000So those two REITs, they're the two biggest private REITs.
00:19:10.000And here's the crazy part about REIT. Now, every REIT, as a standard, It has this limitation that you cannot withdraw too much money from the REIT at the same time because essentially that will force the managers to liquidate assets and they're going to be pressured to do it quickly.
00:19:27.000And you know when you sell something super quick, you sell it for cheap.
00:22:08.000And they're actually selling the Mendeley and the MGM just to pay out people that are about to withdraw and already are waiting for the money.
00:22:16.000holy crap so there you go to tell me that this is a good sign by Janet Yellen I mean that's I've eaten all of sandwiches in my life but this is not what i'm ready to to eat this is a what do you think the people that that bought you said the mandalay bay and what else Mendeley and MGM,
00:23:11.000Well, just so you know, that Blackstone REIT, that B-REIT, the $70 billion REIT, they have a significant exposure to housing, to private housing.
00:23:20.000So they have a bunch of single family homes, like buy a bunch of like, you know, three, two single family homes.
00:24:26.000Every time I close on a deal, I got to spend another easily $10,000 to $11,000 to bring the points down to somewhere in the sixes, which is crazy.
00:24:37.000Think about what I said in the beginning of the show.
00:24:40.000We're heading into an economic trouble, into recessionary times, which means people will lose their jobs or at least people will not be paid as much.
00:24:50.000When the job market is not so hot, even the people who keep their jobs are getting paid less, job security is less.
00:24:55.000Now your disposable income will be much lower in 2023 compared to 2022.
00:25:38.000Because interest rates keep going up, market gets weaker, and then when market prices go up.
00:25:42.000So you'll have a situation in about six months to a year when people are stuck with massive mortgages, they can't repay them properly.
00:25:50.000And the price of the real estate that they have in the underlying collateral is not as much as it used to be, sometimes even underwater.
00:25:57.000When that happens, if, God forbid, foreclosures happen, which I hope they would not see the scenario again because we saw it in 2008, it was destructive.
00:26:06.000I know, but yes, foreclosures, let's do it, baby!
00:26:11.000That's the best time to buy, by the way.
00:26:25.000So if that happens en masse and banks are forced to foreclose, then they're going to flood the market with real estate properties, with housing properties, which is going to collapse the price even further.
00:26:36.000So that's kind of the doomsday scenario of what can happen to real estate.
00:26:41.000That's not necessarily going to happen.
00:26:44.000It will depend on how high the interest rates will go up.
00:26:47.000But if the Fed decides to put the pedal to the metal, the real estate market is going to feel the pain and housing would not be immune to that as well.
00:26:57.000I think real estate is one of the few asset classes right now that's not getting completely destroyed by the hurt economy, but it definitely is getting a hit.
00:27:05.000Luckily, we haven't got as bad as the stock market and cryptocurrency.
00:27:08.000But, you know, when the market is down, it's down.
00:28:27.000The last thing you're going to default on is your medicine and your housing.
00:28:31.000Those two things you will keep buying as much as you can, as long as you can.
00:28:35.000So when you see the real estate prices are still hovering kind of in a normal environment, that's kind of normal because that's the last piece in the domino that will fall.
00:29:04.000And you were saying right now, what we experienced in the 2008 housing market is going on right now in the car market is what you're saying.
00:30:23.000Tell us what the hell is really going on and how is this war impacting the markets in general behind the scenes?
00:30:28.000Well, look, I'm not a military strategist, but unfortunately, the first thing I can tell you is that somehow it's always the people who do not win the war, who do not care about the war and have nothing to do with this war are paying the most amount of price for this war.
00:30:44.000Every day, Ukrainians on the ground that have zero to do with this war or care about it, they're getting the brunt of it, which kind of sucks.
00:30:53.000The problem with the American media is that it has got...
00:32:33.000If we control, like if the US controls what's going on with Ukrainian decision-making, because we fund them, we provide the weaponry, we put everything, and you know what?
00:33:41.000Russia keep whatever they have right now, the Donbas area, which is the eastern part of Ukraine, which is predominantly Russian.
00:33:50.000And let them keep that, let them keep Crimea, and then Ukraine will keep the rest, and they will not join NATO, and then everybody can go fucking home.
00:34:04.000Putin would hate it because he's going to say it's a win, but it's not going to be a win for him because Putin's goal was always advertised as changing the regime in Ukraine and getting rid of Zelensky and all that stuff and demilitarizing Ukraine.
00:34:36.000Ukrainian officials were telling him to fuck off, like horrible shit.
00:34:40.000Now, it's the most pragmatic solution I've heard to this problem.
00:34:44.000And the one thing I can't understand as a thinking person is how come if we get to call the shots over there, if the US gets to call the shots with what Ukrainian policy is, How come the US isn't telling Ukraine, hey, this is the deal.
00:34:59.000Just take it and let everybody go home.
00:35:01.000That's the one thing that there's no logical way to explain this to tell me that it's something that doesn't have to do with the US. And that thing bothers me.
00:35:37.000I'll say this without getting too geopolitical.
00:35:42.000You know, from what I understand, right, because I watch, you know, Coach Red Pill, a.k.a.
00:35:48.000Gonzalo Lero, he's over there in Ukraine himself.
00:35:49.000We had a discussion with him about this.
00:35:51.000They're estimating right now somewhere between 500.
00:35:53.000He's saying a battalion a day is getting wiped out in Ukraine, which is about a thousand men.
00:35:58.000I wouldn't know if it was that high, but I would say somewhere probably easily 500 to a thousand men are probably dying a day in Ukraine from this war.
00:36:27.000I mean, I don't know why people really think that the mainstream media keeps saying Russia runs over here and Russia's losing the war and blah, blah, blah.
00:36:47.000Because at the end of the day, just like Tom said, a lot of Ukrainians are actually Russians.
00:36:50.000So, you know, so it's Especially on the eastern side.
00:36:53.000On the western side of Ukraine, there's not a lot of Russians at all.
00:36:57.000But on the Donbass area, where the Donetsk, Lugansk, I bet if you do an actual poll, I told you this offer, if you do an objective poll over there, there's a good chance they might vote to go to Russia anyways without any pressure or direction.
00:37:38.000But the problem with this, you know, the problem with this policy is I think people, decision makers in the U.S., they don't understand how to fight this war.
00:37:48.000Look, I don't agree with what's going on over there.
00:37:51.000I think Putin and Russia had zero justification of invading Ukraine.
00:37:56.000Russians will hate me for saying this because they've been fed the narrative of the Russians have been abused in Ukraine.
00:38:05.000And Ukrainians will hate me for saying that Donbas is predominantly Russian.
00:38:08.000So everybody will hate me for whatever I've been saying about this topic.
00:38:12.000Nobody is liking what I'm saying here right now.
00:38:17.000The problem with the decision-making in the US, they don't understand that this is like, they think that this is a boxing match when you can win by a decision.
00:39:27.000So how does this I mean, obviously, it's terrible what's going on over there.
00:39:31.000You know, the media doesn't want to report what's really going on.
00:39:33.000But how does that affect us economically?
00:39:35.000I mean, you know, besides I know, obviously, gas, power, you know, Russia is one of the leading countries when it comes to natural resources.
00:39:44.000And Ukraine is the world's leading producer of wheat.
00:40:38.000If the United States would have leaned on Ukraine to settle with the Russians, assuming the Russians would have accepted this deal, maybe the Russians wouldn't, I don't know.
00:40:46.000If the US would have leaned on Ukraine to accept it and the Russians would have accepted this deal, we would have a much easier time to fight inflation.
00:40:55.000I mean, a big part, gas prices, food prices, everything, supply chains would open up, natural gas prices, everything would get cheaper in a day, immediately, just by the war being over.
00:41:06.000So that kind of thing, it's not helping anybody right now to keep this war going.
00:41:12.000And it's slowly becoming like an attrition war, which is the worst kind you can imagine.
00:41:17.000I mean, you can see just with the trade that we did with Brittany Griner for Victor Bout, I mean, just to kind of show you how relations are.
00:41:25.000An international arms dealer, right, that literally was going to provide weapons to FARC members, right, in an undercover DEA operation that were going to kill U.S. soldiers.
00:41:36.000We traded that guy for a pothead WNBA player.
00:41:40.000I mean, it's like, what the hell is going on here?
00:41:42.000But that goes to show you how, you know, we're not even on the same footing anymore.
00:41:46.000I mean, for decades, this isn't new, by the way, guys, where the US and Russia trade spies for each other.
00:42:39.000But I mean, the deal, the structure, it's a very, very bad deal for the US, if you ask me.
00:42:49.000Almost every decision the Biden administration makes, they think that their voters are stupid.
00:42:54.000I mean, didn't they realize that people are going to figure this out?
00:42:58.000You know, it's because the thing is, and I'm really glad that social media exists because a lot of people didn't know who Victor Bout was, you know, prior to the situation going.
00:43:07.000Like, I knew who he was because I used to work in federal law enforcement, so I knew, you know, I had known about his case way before, right?
00:43:12.000He was kind of like a case study person.
00:43:13.000But the common American, especially nowadays in the social media age where people are young, you got to remember, this guy was committing these crimes in the 90s before social media and all these things were, so...
00:43:22.000I saw that he got revitalized with everything going on.
00:43:25.000I was like, okay, now y'all really see.
00:43:26.000I did a whole fetit on it just to explain how bad this dude really was.
00:43:29.000It just goes to show where we are in a state right now as far as us trading damn near a guy that supplies weapons to terrorist organizations, including the Taliban, starting wars in Africa, South America, whatever it may be, and trading them for a pothead WNBA player.
00:43:46.000It's very foolish, but Okay, so I guess the word definitely causes supply chain issues.
00:45:33.000It's almost like President Xi had decided that this zero COVID policy is going to be his legacy, that this is going to be his claim to fame in the history of China.
00:45:42.000And he would not accept the fact that this was a horrible policy decision and he would just keep doubling down and doubling down and doubling down.
00:45:50.000Now, what ended up happening is that the entire world is pretty much, at this point, COVID is a yesteryear thing.
00:46:11.000They literally are starving to death in their own apartments.
00:46:14.000So what happened in China a couple of weeks ago, I don't know if you heard this, but there was an apartment building that caught fire and 10 people died because they couldn't get out because the building was chained because of COVID restrictions.
00:46:25.000And it started a whole bunch of riots.
00:46:27.000Riots have started erupting all over China.
00:46:44.000I don't know if you heard about Foxconn.
00:46:45.000That's the facility that produces the iPhone for Apple in China.
00:46:49.000And the riots have started in their facility and Foxconn went to China saying, hey, we're going to lose Apple if you guys don't figure this out.
00:47:35.000Apple came out, I think, two weeks ago and they said, hey, we're going to phase out China altogether.
00:47:41.000We're slowly starting to move production from China to other countries.
00:47:44.000The reason obviously being because think about it this way, if you have the cheapest factories, the cheapest manpower, whatever that may be, but this craziness keeps going on every single day, Yeah.
00:47:55.000Bureaucrats doing crazy shit, like making Jack Ma disappear.
00:48:00.000The biggest IPO in history, Ant, was just shut down by the Chinese government for no reason.
00:48:05.000Basically, zero COVID policy with absolutely no sense.
00:48:08.000This insanity, as a CEO of a company, you're going to be like, I'm not going to produce in this country.
00:50:53.000In fact, if I was the US over the next 50 years, I would be more terrified from India, not from China, if I have to actually think about it.
00:51:00.000India is a sleeping giant that people don't really know.
00:51:04.000I mean, they have their own problems, but they're definitely better positioned than China.
00:52:01.000The government has been encouraging and allowing this and facilitating it for decades.
00:52:07.000Yeah, China and Russia are the two biggest counter-espionage, counter-intelligence threats to the United States, but China is by far the biggest thief of American trade secrets and American...
00:54:24.000All jokes aside, so I recorded an ad read right before the show, and I gave it to Bo, but he didn't edit it, and that ad read was very difficult, so I was like, going through, I was like, what the fuck?
00:54:49.000But anyway, okay, going back to what we were saying, so...
00:54:52.000So China might lose this position as one of the world leading producers as far as like, you know, hard goods go and India might take over, which I'm kind of already seeing that with the technology stuff.
00:55:03.000By the way, China, like people talk about China is the second largest GDP in the world after the US divided by the amount of people in China.
00:55:15.000There's a thing called GBT per capita, kind of basically GDP per person.
00:55:46.000But if you finance a car, you're probably underwater, you're probably at a deficit, just pay the loss and get out as soon as possible because now with the car market, how it's going, if you keep your car, it's going to bury you to the ground.
00:55:58.000So I would just say get out while you still can.
00:56:00.000So if you take a small loss, just take the L. Take the L. Dude, I'm about...
00:56:04.000Okay, for example, if I sell the Rolls Royce right now, I'll probably lose like 30k.
00:59:00.000So you don't want to absolutely liquidate everything and just go 100% cash, but having a nice little powder on the side is always a good thing in recession.
00:59:12.000And obviously taking care of your own finances.
00:59:16.000Look, you have to make sure that before you talk about stocks and real estate investments and cars, you have to take care of your own shit, which means you have to make sure you have some money saved up for a rainy day.
00:59:26.000You never know what's going to happen tomorrow.
00:59:28.000You have to make sure that we talked about in the last show, You are accountable to yourself, which means you run the budget, you make sure that you're accountable to your budget, and if you slip up, you try and figure out why you slipped up.
00:59:40.000You try and understand how you can maximize your income by improving your skills, by doing side hustles, whatever that may be.
01:01:30.000But if it does, The ones that are prepared mentally, emotionally, financially will do much better than people who just, you know, stuck their finger up their ass and hoping that shit is not going to happen.
01:01:38.000And I'll tell you guys this too, like having cash does definitely help.
01:01:42.000So as you guys know, I told you I have two deals.
01:01:55.000And then they came back with better terms.
01:01:57.000And then I was able to get another lender that pretty much matched those terms and got that loan done quickly.
01:02:02.000So it's amazing what banks and lenders will do when they know that you don't need them and how fast they'll move to go ahead and get your stuff prioritized.
01:02:09.000And I was able to go ahead and get like a clear to close damn near in like a week and a half, which is fucking unheard of.
01:02:14.000Of course, they had all my other documents from another deal, but I moved that deal over to another lender.
01:02:18.000So now I'm doing both deals with two lenders.
01:02:21.000Both deals with one lender versus like splitting the two where one lender had one deal, the other one did.
01:02:24.000I just moved it over because I was like, you guys are pissing me off.
01:02:27.000But when you have the cash, you're able to do things like that because you're like, listen, I don't fucking need you guys.
01:02:31.000And when you do that, the bank starts to respect your time a lot more and then they're going to go ahead and move heavens and mountains to make the deal happen because they get paid when they give you a loan.
01:02:39.000So that's another thing too, as far as like...
01:02:42.000And by the way, don't forget one thing.
01:02:43.000When things get bad, we are old enough to remember.
01:03:10.000If you go to history, there's multiple studies that show that people who have stayed invested during a recession, during a crash, and have doubled down during a crash, They have made an obscene amount of money as long as they were not scared and freaked out and just sold out because they panicked.
01:03:26.000The worst thing you can do in bad times is try to time the market.
01:03:31.000Try to time the market by getting out before the crash, getting in after the crash is impossible.
01:03:37.000The only thing you can do is just stay the course, know that you're doing this for the next 15 years of your life or whatever that may be, 20 years, 25 years, and just stay at it absolutely religiously.
01:03:47.000History shows that if you do that, people who invested in the S&P 500, not anything exotic, not real estate, not stocks, S&P 500, and they started investing in 2000, and they invested the same amount every single month,
01:04:16.000Before you even invest your money, look at personal finance.
01:04:19.000Because if you can't manage the money you got from your job correctly, how are you going to manage money for an investment?
01:04:24.000Personal finance is so important because, guys, if you don't have it right now, what's happening with the recession that's coming, you're going to need it 100%.
01:04:30.000So if you can't manage your own money, how are you going to manage people's money for assets?
01:05:59.000I don't think India lacks energy independence.
01:06:03.000By the way, the funny part is that Germany used to be energy independent.
01:06:08.000They voluntarily gave that up, which is kind of hysterically funny.
01:06:12.000Speaking of which, Tom, what are your thoughts on, because we've had discussions on reserve currency and the U.S. dollar being the world's reserve currency.
01:06:19.000What are your thoughts on Russia, China, I believe, India, and I don't remember, it was one or two countries getting together to create some kind of global reserve currency.
01:06:55.000Now, look, I'm also not going to get into the fact that we still have petrodollars and because of our relationship with the Saudis, it's literally impossible for them to get off the petrodollars, which pretty much ensures our position as the world reserve currency.
01:07:10.000Assuming we don't have these two issues.
01:07:12.000Assuming it's a fair play for everyone.
01:07:14.000Okay, let's say that there's no petrodollars and now you can choose your country and you can choose where to hold your foreign reserve currencies, right?
01:09:22.000It's not something you can easily replace.
01:09:24.000And also, we are the ones paying and helping them transform their economy because they're trying to shift from oil to an actual economy because they have to at some point.
01:09:32.000We're the ones who are paying for this.
01:09:47.000But they'll do this sort of things every once in a while where they flirt with the Chinese just to get our attention.
01:09:53.000And then people who, you know, there's a lot of gold pumpers and stuff like that will jump on it and say, oh, this is the end of the dollar.
01:10:47.000And then, you know, with the Jamal guy, they killed him in a Saudi Arabian embassy in Turkey.
01:10:54.000And they had like secret recordings and you can hear them like, they killed his ass, they choked his ass and then they fucking cut him up and everything.
01:12:37.000Yeah, we wanted to share with you guys a very interesting story.
01:12:40.000So there's a guy who I think we can learn a lot about from as investors, especially people who are new to the market and are kind of figuring it out.
01:12:50.000He was the founder of PayPal, the founder of a company called Palantir, and he was an early investor in Facebook, LinkedIn, Airbnb, Asana, a whole bunch of other companies.
01:13:01.000This dude grew a $2,000 portfolio to a $7 billion portfolio in 20 years.
01:13:09.000And the crazy part about it is he did it in a way that about 5 billion out of the 7 is absolutely tax exempt.
01:13:17.000And I think there's a lesson here to be learned because anybody here in the chat can do the same thing.
01:13:22.000I'm not saying like grow from 2000 to 7 billion.
01:13:25.000I mean, create revenue from the stock market or investments, whether it's whatever investments may be, REITs, whatever.
01:13:34.000Absolutely pay no tax on your investments and do it for years and years and years and protect all depreciation.
01:13:56.000Essentially what you can do, you can put about $20,000 to $27,000 or $30,000, depending on how old you are, Every year into an account that is tax-free.
01:14:08.000This account you can buy stocks in or investments in, and this account will never get taxed.
01:14:15.000Let's say you buy a stock, every year you put in $30,000.
01:14:18.000And then you do it for years and years and years.
01:14:20.000And every dollar that appreciates, for example, you invest in the stock and the stock goes 100x, whatever, right?
01:14:27.000Everything that happens inside that account will never ever get taxed.
01:14:31.000As long as you just don't withdraw it until you go to retirement age.
01:14:35.000And then you pull it out when you retire and it's all, boom, tax-free.
01:14:39.000And if you are thinking about investing, if you are thinking about putting the money to work for you, creating some actual parachute for you, because I know a lot of your audience are younger and they're not really thinking about pensions,
01:14:54.000but trust me, the best time to start thinking about your pension is when you're in your 20s, not when you're in your 30s, definitely not when you're in your 30s or 50s.
01:15:01.000Compound interest actually works in your favor the most.
01:15:04.000So if you're in your 20s and you set up an IRA or 401k, and you max it out every year, I think one is capped at $7,000, the other one is capped at like $25,000, and you max it out every year as much as you can, and you invest through that just in the S&P 500,
01:15:22.000by the time, if you just do that, by the time that you retire, you will be a millionaire.
01:16:36.000Although it was never publicly traded, it was a private company.
01:16:39.000You couldn't invest directly in FTX. But I mean, stay away from hype.
01:16:42.000If your family tells you about a stock, if your friends, if influencers on YouTube, whatever, stay away.
01:16:47.000Find the stocks that nobody's talking about.
01:16:50.000Find the stocks that nobody's talking about.
01:16:52.000You can even go for the ones with high risk as long as there's a high potential as well, but only if you understand the risk, if you're willing to lose the money, if you don't need the money to pay rent or to pay food or to pay for your kids tuition, if you can afford to lose the money and you are patient and you are a long-term investor and you're going to do this for the 20-year period that it requires to do that,
01:17:15.000If you pick 10 companies based on this methodology of actually analyzing company, looking at the management, looking at the business model, not just the charts and stuff like that, and you stay for the long term and you've done the process, then there's a good chance that six or seven out of those 10 companies will be successful.
01:17:31.000And if they are successful over the course of 20 years, their upside is going to be absolutely phenomenal.
01:17:36.000Nobody thought that Facebook is going to be one of the largest companies in the world when he gave them half a million.
01:19:22.000It basically will allow you to look at stocks like you have never before.
01:19:26.000We created this platform because we couldn't find anything like this on the internet.
01:19:29.000Essentially, you could look at stocks, you could look at financials, you could look at how much the CEO, the CFO, and the insiders are dumping shares or buying shares.
01:19:38.000You could look at how much institutionals like the Black Rocks and the Black Stones are buying up or selling.
01:19:43.000You can see how much short interest is in the company, how much people are betting against it.
01:19:48.000You can see, you can run models, discounted cash flow valuation models on the company, see what the fair value of the stock is.
01:19:54.000You can do a whole bunch of stuff with this platform, essentially set up your own profile to kind of tell you what's the price-to-earnings ratio, what's the free cash flow ratio, how much debt, how much cash, and basically within 30 seconds to have like an idea about the stock.
01:20:55.000I said, the stock market is like an ex-wife.
01:20:59.000It's absolutely volatile, angry, unexpected, and it will happily take your money.
01:21:06.000Yeah, I mean, with the volatility, you know, there's no better time to, you know, be able to know what the hell you're really, you know, potentially getting investing into, right?
01:21:13.000Unless you're like me, trolling, getting chewy just for the LOLs.
01:21:15.000But no, Tom, where can people find you, man?
01:21:19.000Oh, actually, shit, wait, we hit these super chats real quick.
01:21:21.000Someone had a good question here, and then we'll close this, wrap this thing up.
01:24:11.000And our lawyers told us, if you dare touch customers' deposits to save yourself from bankruptcy, you're all going to prison.
01:24:17.000And CoffeeZilla, a YouTuber, he's the only one who got sent bankruptcy to admit that that's exactly what he did.
01:24:23.000He used people's deposits and he took it from one company and literally gave it to another company, which is absolutely insane to think about.