A Once in a Lifetime Investment Opportunity Is Here
Summary
TLDRThe 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
📉 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.
💹 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.
📉 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.
Mindmap
Keywords
💡Highs
💡Rate Cut
💡Inflation
💡Labor Market
💡Bull Run
💡Unemployment
💡Market Correction
💡Sideline Money
💡AI Boom
💡Nvidia
💡Earnings
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
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