A Once in a Lifetime Investment Opportunity Is Here

Summary

The speaker anticipates a bull market driven by the Federal Reserve's aggressive rate cuts amid declining inflation and a shaky labor market. They predict a significant market correction before the end of the year, advising investors to capitalize on the dip to increase positions. Highlighting the potential of Nvidia and AI, the speaker sees a massive technological catalyst for market growth, while cautioning about the volatility ahead.

Takeaways

• 📉 The speaker expects a new bull run in the market but warns of an upcoming correction before the final run up.
• 🗣️ Jerome Powell's announcement of a rate cut was anticipated by the speaker's community, and they view it as a catalyst for the next bull run.
• 📊 Inflation has significantly dropped from 9% to 2.9%, nearing the Fed's 2% target, while unemployment numbers are rising, causing concern for the Fed.
• 👷‍♂️ The labor market is shaky, and the Fed is more concerned about unemployment, which may lead to aggressive rate cuts.
• 💹 The speaker predicts that the market will go higher this year but with bumps along the way, and advises not to be spooked by a temporary drop.
• 💰 There is a record amount of money in money market accounts, indicating a large potential influx of capital into the stock market.
• 🚀 The AI boom is still in its early stages and is expected to significantly impact the market, with Nvidia being a key player in this revolution.
• 🧠 Nvidia's earnings are considered crucial and could be a major market indicator, with the potential to either accelerate or delay an expected market correction.
• 🔋 The demand for data centers and related infrastructure is booming, which is a massive catalyst for the economy and the stock market.
• 📉 The speaker is waiting for a market correction to increase positions at a discount, viewing the dip as an opportunity rather than a threat.
• 🚨 The market is expected to be volatile and bumpy, and the speaker warns against panic selling during the anticipated correction.

Q & A

What was the main event discussed in the script that is expected to influence the market?

The main event discussed is the Federal Reserve's announcement of a rate cut, which is expected to ignite the next Bull Run in the market.

What is the current state of inflation according to the script?

Inflation has dropped significantly from a peak of 9% to 2.9%, which is very close to the Federal Reserve's 2% target.

How is the labor market described in the script?

The labor market is described as being shaky, with unemployment numbers rising and concerns about a potential spike in unemployment.

What is the expected impact of the Federal Reserve's rate cut on the labor market and inflation?

The rate cut is expected to be aggressive, which could lead to a further cooling of the labor market and a continued decrease in inflation.

What is the speaker's prediction for the market trajectory this year, considering the current economic conditions?

The speaker predicts that the market is on a trajectory to go higher, but it will not be straightforward and will have its bumps along the way.

What significant event is anticipated in the tech world that could impact the market?

The significant event anticipated is Nvidia's earnings report, which could cause a sell-off in big tech if it misses expectations.

What is the speaker's view on the potential for a market correction before the final run up?

The speaker believes there will be a strong correction before the final run up, possibly in September, which will surprise many investors.

What strategy does the speaker suggest for investors in anticipation of a market dip?

The speaker suggests using the dip as an opportunity to increase positions and decrease cost bases by buying up the same stocks at cheaper prices.

What is the current amount of money in money market accounts, and what does this indicate about potential market movement?

There is currently $6.24 trillion in money market accounts, indicating a record amount of money on the sidelines, which could flow back into the stock market.

How does the speaker view the AI boom and its potential impact on the market?

The speaker views the AI boom as a massive catalyst, similar to the invention of the internet, and believes it will drive the market significantly in the coming years.

What is the speaker's perspective on the importance of Nvidia's upcoming earnings report?

The speaker considers Nvidia's upcoming earnings report to be potentially the most important of the year and possibly in many years, due to its representation of the AI revolution.

Outlines

00:00

📉 Market Volatility and Fed's Rate Cuts

The speaker discusses the recent market trends and the Federal Reserve's decision to cut interest rates, which was anticipated by the community despite media surprise. The current economic situation, with falling inflation and a shaky labor market, sets the stage for aggressive rate cuts. The speaker warns of a potential upcoming correction in the market, suggesting it will be a temporary dip before a significant bull run. They advise viewers to prepare for this by increasing positions and decreasing cost bases during the dip, indicating a bullish outlook for the market in the latter part of 2024 and beyond.

05:00

💹 Sidelined Capital and the AI Boom

This paragraph delves into the record amount of money parked in money market accounts, which is expected to flow back into the stock market, boosting it significantly. The speaker highlights the potential for a major market correction before the bull run, which professional money managers are anticipating. They emphasize the importance of understanding market fundamentals to capitalize on opportunities during volatility. The AI boom is presented as a significant catalyst for economic growth, with Nvidia's transformation and the massive investment in generative AI businesses as key indicators of a technological revolution akin to the invention of the internet.

10:02

📉 Anticipating the Market Correction and Nvidia's Impact

The speaker outlines the strategy of waiting for an imminent market correction, viewing it as an opportunity to acquire stocks at a discount. They highlight Nvidia's upcoming earnings report as a pivotal event that could influence the timing of the correction. If Nvidia reports strong earnings, it could delay the correction, while a poor performance could accelerate it. The speaker emphasizes the importance of not succumbing to fear during market volatility and using downturns to strategically invest, especially in light of the significant technological and financial shifts underway.

Keywords

💡Highs

The term 'Highs' in the context of the video script refers to the peaks or maximum points in financial markets, indicating periods of high value or performance. It is related to the theme as the speaker predicts upcoming positive movements in the market, suggesting that investors should prepare for these highs by understanding market dynamics.

💡Rate Cut

A 'Rate Cut' is a monetary policy action taken by a central bank, such as the Federal Reserve, to lower interest rates with the aim of stimulating economic growth. In the video, the rate cut is mentioned as a given event that the speaker expected and believes will ignite the next bull run in the market.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. The script discusses how inflation has decreased significantly, which is a positive sign for the Federal Reserve's policy adjustments and a key factor in the potential for a bull market.

💡Labor Market

The 'Labor Market' refers to the collection of all laborers, including the employment status and the level of employment, as well as the economic sector as a whole. The script highlights the labor market's current shaky state and its importance to the Federal Reserve's dual mandates, suggesting that unemployment numbers are a critical indicator for future economic policy.

💡Bull Run

A 'Bull Run' is a term used to describe a period of time when the stock market or a particular stock experiences a continuous rise in price. The video script suggests that the market is setting up for the next bull run, indicating a strong upward trend that investors should be aware of.

💡Unemployment

Unemployment refers to the number of people in the labor force who are without jobs and actively seeking work. In the script, the rising unemployment numbers are a concern for the Federal Reserve and are used to argue that aggressive rate cuts may be on the horizon.

💡Market Correction

A 'Market Correction' is a decline of at least 10% in the value of a stock, bond, commodity, or index from its recent peak. The speaker in the video anticipates a strong correction in the market before the final run up, which is a temporary drop that savvy investors can use as an opportunity to buy stocks at a discount.

💡Sideline Money

The term 'Sideline Money' refers to funds that are kept on the sidelines, not actively invested in the market. The script mentions a record amount of money in money market accounts, indicating a large pool of capital waiting to enter the stock market, which could drive up prices once invested.

💡AI Boom

The 'AI Boom' refers to the rapid growth and development in the field of artificial intelligence. The video script discusses the AI boom as a significant catalyst for the market, comparing it to the invention of the internet and suggesting that it is still in its early stages with substantial growth potential.

💡Nvidia

Nvidia is a company known for its graphics processing units (GPUs) and is a key player in the AI and data center markets. The script highlights Nvidia's transformation and growth due to the AI revolution, emphasizing its importance in the context of the market's future direction and potential for significant earnings growth.

💡Earnings

Earnings in the context of the video refer to the profits that a company reports, which are a key indicator of a company's financial health and market performance. The script suggests that Nvidia's upcoming earnings report is of utmost importance and could influence the timing of the next market correction.

Highlights

Expectation of new highs in the market with a predicted bull run.

The Federal Reserve's rate cut announcement was anticipated by the community, contrary to media surprise.

Jerome Powell's dovish stance is seen as beneficial for market ignition and the upcoming bull run.

Inflation has significantly decreased, nearing the 2% target, while labor market concerns rise with unemployment numbers.

Unemployment numbers can spike rapidly, indicating a potential concern for the Fed.

The Fed's focus shifts towards labor market stability with aggressive rate cuts anticipated.

The current market setup suggests a trajectory for higher values unless disrupted by economic or tech sector events.

A strong correction is predicted before the final market run up, with a significant drop possibly in September.

The strategy involves using market dips to increase positions and decrease cost bases by buying stocks cheaper.

Record high money market accounts indicate a potential influx of funds back into the stock market.

Professional money managers are expected to re-enter the market before year-end, driving up values.

The AI boom is compared to the invention of the internet, with Nvidia at the forefront of this technological revolution.

Nvidia's revenue growth from data centers signifies a fundamental change in its business model.

Eric Schmidt's prediction of massive spending on Nvidia products by hyperscalers highlights the scale of the AI revolution.

The need for energy resources like hydropower in supporting large-scale data centers is emphasized.

Nvidia's upcoming earnings call is considered pivotal for market direction in the short term.

The generative AI business and its impact on infrastructure and business operations is a massive shift.

Market volatility is expected, with Nvidia's performance being a key indicator of the timing of the next correction.

The importance of understanding market fundamentals to navigate through volatility and capitalize on opportunities.

Transcripts

so get ready for new Highs but listen up

now this past week has been very

interesting on the one hand we saw a lot

of concern a lot of extreme fear a lot

of anxiousness going into Jackson Hall

for no absolute reason because I've been

telling you for the past few weeks it's

a given this man is going to announce a

rate cut and lo behold this man

announces a r cut and every other media

Outlet out there running around basic

Ally acting surprised while everybody in

my community knew this is exactly what's

going to happen so Jerome pal the Fed

chair comes out doish and I think that

is the right thing the right component

to combust the markets to ignite the

next Bull Run so with inflation dying

with the labor market basically being

very very shaky this is a good setup for

the FED to be very aggressive with the

rate Cuts If the Fed has essentially two

mandates one is the labor market the

other one is inflation so if inflation

is getting better and better and better

we dropped all the way from 9% at the

peak to 2.9% right now we're really

close to that 2% Target while the job

market unemployment numbers keep rising

and Rising quite concerning now with

unemployment the one thing you need to

understand that it doesn't just always

continuously rise in a linear fashion

unemployment numbers can really Spike up

quickly on you like a train leaving the

station right in the beginning it's slow

but then it gets fast and Fast and all

of a sudden before you can even notice

you can't even catch that train so the

FED is now more concerned about the

labor market unemployment numbers and

that means we're going to have big cuts

coming up inflation is now much closer

to our objective the labor market has

cooled considerably from its formerly

overheated State the unemployment rate

began to rise over a year ago and is now

at 4.3% the cooling in labor market

conditions is unmistakable we do not

seek or welcome further Cooling in labor

market conditions the upside risks to

inflation have diminished and the

downside risks to employment have

increased the time has come for policy

to adjust and this is a great setup

because it means that unless one of

these events happens we are on a

trajectory to go higher and higher this

year but it's not going to be

straightforward and it will have its

bumps let me explain unless in the next

few weeks we're going to have some bad

economic data that shows us the economy

is worse and everybody thinks or on the

other hand if we have some big boo boo

in the big Tech world for example Nvidia

missing earnings this Wednesday so

unless big Tech sells off or unless the

economy breaks after the very doish

Jackson Hall speech from Jerome Powell

we are heading up not down but hey this

is important because I still think we

will get a strong correction this year

before we get the final run up so there

is still a big Big C ction headed our

way and a lot of investors that don't

see this coming will be surprised and

it's going to cause them to sell off not

this community so before the November

December estimated Bull Run we will see

one more big drop probably in September

but I don't know for sure now you know

exactly what to do I'm not going to

repeat myself if you see this coming

like me what you do is you understand

hey this is a temporary drop before we

hit the big big bull run so what we're

going to do we're going to use this

opportunity to actually increase our

positions to decrease our cost bases by

buying up the same stocks we like

cheaper we understand that this is an

opportunity so don't get spooked and

have a plan if this happens you know

exactly what to do I don't need to

repeat myself every single video now

there's a few reasons why I'm very

bullish about the market going into the

later parts of 2024 and in the next few

years now as far as this year goes what

I'm seeing is that we have a record

number right now in money market

accounts

$6.24 trillion that is the highest we

have ever been we have never seen this

much money parked on the sidelines now

granted not every single dollar is going

to go back into the stock market but

about $1.5 trillion do is money that

went in there that was parked right

before the Bull Run started from people

who thought that 2023 is going to be a

bad year now this money will flow back

into the stock market have no mistake

about it whether it happens today or

over the course of the next 6 months it

will happen because the length of time

these professional money managers can

afford to sit out and cost their clients

money is running out they are on borrow

time and as we near the end of the year

their time is running out because at the

end of the year they're going to have a

lot of splaining to do now obviously

what they're waiting for right now

because they are in the sideline still

despite the massive Bull Run we had in

this year as well but they are in the

sideline because because they're seeing

the same thing I'm seeing there is one

more dip ahead one big massive

correction that's going to scare people

off is going to shake off the weak hands

and they're waiting for it to get in

before the Big Bull Run they're waiting

for the same thing I'm waiting and you

can be in the same situation

understanding hey the big dip is going

to scare a lot of investors is just a

head fake for these guys as well so you

have to understand once this dip happens

whether happens September early October

I don't know maybe October but it's

going to shake off people and then all

of this money is going to flow back into

the market basically spiking it back up

and then at this point you will be ready

because I thought you will you

understand that the dip is your best

friend and this is the time to load up

and build up your cost basis before the

spike now look it's not just about the

sideline money the entire setup is

exciting look we are right now Easy

Money starting up again the FED is

pivoting that's obviously a certainty

right now after Jackson Hall we have

eight consecutive quarters of great GDP

numbers running at

2.8% we have inflation dropping from 9%

to 2.9% and heading downstairs towards

the 2% really quick and on top of it

what we have right now is a massive

Catalyst Financial economic and mainly

technological the same way we had with

the invention of the internet the AI

boom has just started out it's not even

close to being in the peak and to say

that this Market is going to crash

before we even seen the Airi boom

actually get materialized is absolute

nonsense Nvidia has 20x its revenue from

data center in the past four years it

has gone from being 25% dependent on

data centers to about 90% of its Revenue

coming from data centers nvidia's entire

existence DNA has changed because of

this Revolution and you have to

understand that this is just a start you

don't have to listen to me listen to

Eric Schmidt the former CEO of Google

who just gave a talk saying hey every

single hyperscaler is going to spend

about 300 billion doll on Nvidia

products for the next few years Sam

Alman is a close friend he believes that

it's going to take about 300 billion

maybe more I pointed out to him that i'

done the calculation on the amount of

energy required and I and I then in the

spirit of full disclosure went to the

White House on Friday and told them that

we need to become best friends with

Canada because Canada has really nice

people helped invent Ai and lots of hydr

power whereas Canada and the US are part

of a Triumph it where that we all agree

on so these hundred billion doll $300

billion doll data centers electricity

starts becoming the scarce resource well

well or and and by the way if you follow

this line of reasoning why did I discuss

Cuda and Nvidia if $300 billion is all

going to go to Nvidia you know what to

do in the stock market okay and if you

take these numbers and translate them

into simple multiples what you find is

if Nvidia makes $250 billion a year for

the next few years at 20 price to sales

we're talking about a $5 trillion

company versus a current valuation of $3

trillion so if you think Nvidia is not

going to double itself over the next few

years you're absolutely delusional this

is accelerating and I think the street

like you said every quarter prove it

prove it this revolution is just

starting but it all starts with Nvidia

it my opinion it is the most important

earnings not just of the Year

potentially in many years because of

what this represents in terms of tax if

you look what Nvidia is doing especially

from chips coming forward this

Enterprise demand is just starting in my

opinion of course pal Jackson Hole is so

important obv but the but the market

what it's going to do for the rest of

the year and I could argue even in 2025

it starts with this Nvidia earnings and

I expect get the popcorn ready it's

going to you said this every quarter D

no but this this is going to be a

showstopper showing where the Revolution

going and I think the Skeptics continue

to get proven wrong but Nvidia is just

one link on this massive chain think

about all this money that's going into

the generative AI business hundreds of

billions of dollars think about

companies like palente who build the

operating systems hundreds of billions

of dollars think about the

infrastructure the electric

infrastructure this is a massive shift

to the way we do business this is pretty

much the invention of roads and cars

electricity internet this is massive to

say that the world is not going to be

ready for this because we don't have

enough lines on some sort of charts and

we're going to collapse because the come

on it's shortsighted maybe we have a

crash maybe of a dip whatever the thing

is this is 1995 playing all over again

but before you all get excited and

mortgage your house to buy stock hold on

a second wait let me explain this is

just a beginning which means it's going

to be volatile it's going to be rough

it's going to be bumpy now Wednesday the

Nvidia earnings is going to be kind of

the guide to where we're going short

term how far away is this dip the next

correction is going to happen because it

is going to happen and it's quite simple

if Nvidia by any chance lays an egg well

we bring that correction closer the time

frame from now until that big dip gets

shorter because Nvidia basically drags

the entire Market with it but if Nidia

has great earnings then we push it

forward into the future because it's

going to take time for the market to

relax from the Euphoria of great Nvidia

earnings Nvidia is currently the most

important company in the stock market

and whatever it does in the Wednesday

earnings is going to determine how long

we have before that correction my

strategy is very simple I'm waiting for

that correction I know it's going to

come I know it's going to be available

for me and I know a lot of the stocks I

like will be at a discount I'm not going

to be fing into the stock market saying

oh my God this thing is never going to

correct again we're going straight to 5,

video the market is going to double

itself yeah but even in 1995 if you look

from 1995 to 1999 the markets don't go

up in the straight line especially now

when all of these people in mainstream

media and professional money managers

all these guys who love to collude

against re investors they're going to

shake that tree one more time a lot of

them got locked out and they want your

positions so are they going to use the

next step to get you to sell they're

going to use media to stop Fear maybe

it's going to feel like the total

collapse of the world maybe it's going

to try marketed like 1999 I don't know

what's going to happen but it's going to

be very volatile and very painful and

only the ones who understand

fundamentally what's going on in the

market are going to last and going use

this correctly because when there's

blood on the streets you buy especially

if that blood is yours don't forget that

I'll see you in the next one