1 00:00:00,200 --> 00:00:04,400 We are living through the worst economy that almost anybody 2 00:00:04,400 --> 00:00:09,400 alive has ever seen. You have to be over 80 years old 3 00:00:09,500 --> 00:00:15,900 to go back to the 30s, to, to have seen worse and maybe we're 4 00:00:15,900 --> 00:00:18,400 even worse than that. That's right. 5 00:00:18,400 --> 00:00:21,800 We are living through the worst economy possibly ever in US 6 00:00:21,800 --> 00:00:24,400 history and yet during this time. 7 00:00:24,500 --> 00:00:28,300 I have 90,000 dollars invested and I'm continuing to invest 8 00:00:28,500 --> 00:00:30,000 that's basically the situation here. 9 00:00:30,300 --> 00:00:32,800 What I want to do in this video is explain why I'm choosing to 10 00:00:32,800 --> 00:00:36,300 do this, why I would put 91 thousand dollars at risk. 11 00:00:36,600 --> 00:00:38,700 In an economy. That's the worst economy we've 12 00:00:38,700 --> 00:00:40,800 ever seen. And I'm going to go through what 13 00:00:40,800 --> 00:00:44,800 I think are the three basic realistic scenarios that the 14 00:00:44,800 --> 00:00:46,600 u.s. Can go through the three basic 15 00:00:46,600 --> 00:00:48,700 scenarios. And why I think an each one of 16 00:00:48,700 --> 00:00:52,200 these scenarios, one, two, and three, I think that it doesn't 17 00:00:52,200 --> 00:00:53,700 make sense to sell. Basically. 18 00:00:53,700 --> 00:00:55,800 I don't think there's any scenario that convinces me to 19 00:00:55,800 --> 00:00:57,000 sell, so we'll be looking at this. 20 00:00:57,000 --> 00:00:59,300 I'll be explaining why I don't ever plan on selling. 21 00:00:59,400 --> 00:01:01,900 And then, of course, we have some emails and other fun stuff 22 00:01:01,900 --> 00:01:03,500 to get to. Now, like I said, I have a lot 23 00:01:03,500 --> 00:01:06,300 of money at least to me invested in this portfolio. 24 00:01:06,400 --> 00:01:08,000 How its invested in the stock market? 25 00:01:08,100 --> 00:01:11,300 It's mostly a breakdown of large-cap, dividend-paying 26 00:01:11,300 --> 00:01:13,700 companies Diversified in different Industries. 27 00:01:13,900 --> 00:01:15,400 If you want to look at it, there's a link in the 28 00:01:15,408 --> 00:01:18,400 description that you can click into each one of these different 29 00:01:18,400 --> 00:01:21,600 sections here, and you can see exactly what my Holdings are. 30 00:01:21,600 --> 00:01:25,300 So, either way. I have a lot of money invested 31 00:01:25,300 --> 00:01:28,000 and the question is, is whether that's a good decision right 32 00:01:28,000 --> 00:01:29,000 now. Some people don't think. 33 00:01:29,000 --> 00:01:30,700 So. I've watched different videos 34 00:01:30,700 --> 00:01:31,900 and different content creators saying. 35 00:01:31,900 --> 00:01:35,300 Hey, you know, I think I'm going to move to cash because the risk 36 00:01:35,300 --> 00:01:37,500 reward right now. Not really good. 37 00:01:37,500 --> 00:01:39,400 The market isn't priced correctly. 38 00:01:39,600 --> 00:01:42,300 If you go to different graphs like this, they have a pretty 39 00:01:42,300 --> 00:01:44,600 sound argument. I don't necessarily disagree 40 00:01:44,600 --> 00:01:47,500 with them in the context that they're making their argument. 41 00:01:47,500 --> 00:01:51,400 In fact, if I go to the year to date view of the Dow Jones here 42 00:01:51,700 --> 00:01:54,300 and I look at it from the all-time high to where we are 43 00:01:54,300 --> 00:01:59,700 currently, it's down around 17% now consider this in the context 44 00:01:59,700 --> 00:02:02,800 of the current economy. It's a pretty bad economy in the 45 00:02:02,800 --> 00:02:05,400 Dow Jones is down 17 percent from its all-time highs. 46 00:02:05,700 --> 00:02:10,400 That's not A whole lot if we go to the S&P 500, this is even 47 00:02:10,500 --> 00:02:13,200 even better. It's down only 13 percent 48 00:02:13,500 --> 00:02:16,600 because the Dow Jones has a lot of big industrial companies. 49 00:02:16,900 --> 00:02:20,400 The S&P 500 has a lot of these big large, Mega cap tech 50 00:02:20,400 --> 00:02:22,800 companies like Microsoft and Apple that really weren't 51 00:02:22,800 --> 00:02:24,500 affected too much by the downturn. 52 00:02:24,700 --> 00:02:27,200 So these companies didn't have to close their doors and stuff. 53 00:02:27,200 --> 00:02:30,300 So it's down 13 percent. Now. 54 00:02:30,600 --> 00:02:34,900 Keep this in mind the S&P 500 is down 13 percent basically from 55 00:02:34,900 --> 00:02:38,000 its all-time highs. Al Jones is down 17 percent from 56 00:02:38,000 --> 00:02:40,200 its all-time highs. Let's go ahead and go back to 57 00:02:40,200 --> 00:02:42,000 Howard marks. This is the founder of Oaktree 58 00:02:42,000 --> 00:02:44,000 Capital. He's a billionaire and he gives 59 00:02:44,000 --> 00:02:46,600 his assessment on the current condition of the economy. 60 00:02:46,600 --> 00:02:48,300 Let's go ahead and listen to a little bit more of this. 61 00:02:48,900 --> 00:02:53,200 We are living through the worst economy that almost anybody 62 00:02:53,200 --> 00:02:58,200 alive has ever seen. You have to be over 80 years old 63 00:02:58,200 --> 00:03:04,900 to go back to the 30s to to have seen worse and maybe we're even 64 00:03:04,900 --> 00:03:07,600 worse than that. It's believed that the 65 00:03:07,600 --> 00:03:10,700 unemployment rate will hit a higher level than was achieved 66 00:03:10,700 --> 00:03:15,300 in the Great Depression. I people are talking about 67 00:03:15,300 --> 00:03:18,900 second-quarter GDP being down 30 to 40 percent. 68 00:03:18,900 --> 00:03:20,800 As far as we know. I mean, there aren't good 69 00:03:20,800 --> 00:03:22,700 quarterly records. But as far as we know, there's 70 00:03:22,700 --> 00:03:26,500 never been a quarterly decline in DP to that extent. 71 00:03:26,800 --> 00:03:34,400 So we're in the worst. Economic environment. 72 00:03:35,300 --> 00:03:38,800 Let's say ever now. I don't disagree at all with 73 00:03:38,800 --> 00:03:40,700 Howard Marks here. I think that he's accurately 74 00:03:40,700 --> 00:03:43,400 describing the situation you goes on to explain a few 75 00:03:43,400 --> 00:03:46,100 differences that we have the FED really supporting the economy 76 00:03:46,100 --> 00:03:48,300 right now. He says that relying on the fed, 77 00:03:48,300 --> 00:03:51,200 you know, has its own implications and concerns and 78 00:03:51,200 --> 00:03:54,400 risks, but there are differences between now and 1930. 79 00:03:54,400 --> 00:03:56,200 And a lot of them is the way that the FED supporting the 80 00:03:56,200 --> 00:03:59,800 economy, but regardless, the point that he's making that the 81 00:03:59,800 --> 00:04:02,600 economy is not good right now. It's really bad. 82 00:04:02,700 --> 00:04:05,800 Historically speaking. It's probably the That you've 83 00:04:05,800 --> 00:04:09,900 ever seen in your entire life, even if you're elderly, it still 84 00:04:09,900 --> 00:04:12,300 might be the worst economy you've ever seen in your life. 85 00:04:12,400 --> 00:04:15,600 Having this many unemployed people having GDP expected to 86 00:04:15,600 --> 00:04:18,100 follow this amount. That's the, the worst numbers 87 00:04:18,100 --> 00:04:20,800 that we've ever seen. And then knowing that it's the 88 00:04:20,800 --> 00:04:23,900 worst economy. We've had possibly ever knowing 89 00:04:23,900 --> 00:04:26,100 all these bad economic numbers again. 90 00:04:26,100 --> 00:04:31,100 The S&P 500 is down, like 13%, So some people are correctly. 91 00:04:31,100 --> 00:04:33,900 They're scratching their heads and saying, how was the economy 92 00:04:34,000 --> 00:04:37,200 this bad? With the stock market, down 13% 93 00:04:37,200 --> 00:04:39,200 is the stock market, accurately priced. 94 00:04:39,400 --> 00:04:40,600 Those are the questions people have. 95 00:04:40,900 --> 00:04:43,900 And then some people say, well, I look at the potential upside 96 00:04:44,200 --> 00:04:47,500 and the potential downside, and I see a lot more downside in the 97 00:04:47,500 --> 00:04:50,100 stock market than I see upside. They look at this and they say 98 00:04:50,500 --> 00:04:55,200 it might go up 10%, but it could go down. 50% could go down 60% 99 00:04:55,200 --> 00:04:57,700 from where it is. So, they think the risk reward 100 00:04:57,700 --> 00:05:00,400 is not good right now because they believe the stock market 101 00:05:00,400 --> 00:05:02,500 isn't factoring in the economy correctly. 102 00:05:02,700 --> 00:05:04,400 Now, I think these are all solid arguments. 103 00:05:04,500 --> 00:05:06,600 I don't really Problem with people making these arguments 104 00:05:07,000 --> 00:05:09,800 and if they want to sell and move the cash based off of that. 105 00:05:09,800 --> 00:05:12,100 I think that that's fine. I don't have any issues with it. 106 00:05:12,400 --> 00:05:14,500 I'm not really arguing against what people are saying. 107 00:05:14,800 --> 00:05:18,400 What I want to do is introduce my frame of thought and how it 108 00:05:18,400 --> 00:05:21,000 might differ from it. I see three basic scenarios that 109 00:05:21,000 --> 00:05:22,700 can happen and in each one of them. 110 00:05:22,700 --> 00:05:24,400 I don't really see a great reason to sell. 111 00:05:24,400 --> 00:05:26,200 So let me go through each one of them real quick. 112 00:05:26,300 --> 00:05:27,800 Okay, let's go through the first scenario. 113 00:05:27,800 --> 00:05:32,400 So this one's scenario on, I think this one is possible, but 114 00:05:32,400 --> 00:05:34,000 I think this scenario is unlikely. 115 00:05:34,300 --> 00:05:37,400 This would be be where the economy recovers very quickly 116 00:05:37,500 --> 00:05:39,100 that we have that v-shaped recovery. 117 00:05:39,500 --> 00:05:43,000 The US economy has a quick recovery, people quickly, regain 118 00:05:43,000 --> 00:05:45,100 employment. So we have like three million 119 00:05:45,100 --> 00:05:47,400 people losing jobs every week or at least filing for 120 00:05:47,400 --> 00:05:49,600 unemployment. This would be the reverse of 121 00:05:49,600 --> 00:05:51,600 that instead of three million people losing jobs. 122 00:05:51,800 --> 00:05:54,600 Now, we have three million job gains every single week week 123 00:05:54,600 --> 00:05:57,300 after week, you're getting that good news of another three to 124 00:05:57,300 --> 00:05:59,800 four million people that get their jobs back, that would be 125 00:05:59,800 --> 00:06:01,600 great news. Then we have treatments to the 126 00:06:01,600 --> 00:06:03,600 virus. Not only do we have news that a 127 00:06:03,600 --> 00:06:05,900 vaccine is on the way. It's Tested and is having 128 00:06:05,900 --> 00:06:07,800 positive results. But we also have different 129 00:06:07,800 --> 00:06:10,400 therapies and better ways to treat the virus. 130 00:06:10,400 --> 00:06:13,700 So the virus becomes less of a concern and we don't have that 131 00:06:13,700 --> 00:06:16,100 huge Resurgence that a lot of people are expecting. 132 00:06:16,400 --> 00:06:19,600 So this is where instead of all the news being - it starts to 133 00:06:19,600 --> 00:06:22,200 turn around really quickly where everything starts to seem 134 00:06:22,200 --> 00:06:24,800 positive again. We have good health news. 135 00:06:25,000 --> 00:06:28,300 We have good economic news. People are regaining jobs, the 136 00:06:28,300 --> 00:06:31,200 damage to companies. As limited really things reverse 137 00:06:31,200 --> 00:06:33,300 very quickly and the economy is back on track. 138 00:06:33,400 --> 00:06:36,900 Now, in this scenario. Rio the very optimistic one. 139 00:06:37,200 --> 00:06:40,400 I think that it's somewhat unlikely files to give it like a 140 00:06:40,407 --> 00:06:41,900 percent chance. I think could be somewhere 141 00:06:41,900 --> 00:06:45,900 around like 20% ten twenty percent, so unlikely but not 142 00:06:45,900 --> 00:06:48,200 impossible. It is possible that the economy 143 00:06:48,200 --> 00:06:50,200 could recover quickly. That's a possibility. 144 00:06:50,500 --> 00:06:52,600 We have a lot of unknowns. But again, I think this one is 145 00:06:52,600 --> 00:06:55,300 unlikely. Now in this scenario doesn't 146 00:06:55,300 --> 00:06:59,200 make sense to not be invested. Does it make sense to sell out 147 00:06:59,200 --> 00:07:01,000 of the market? Of course, not. 148 00:07:01,000 --> 00:07:03,600 This is the good scenario. This is the optimistic one. 149 00:07:03,800 --> 00:07:05,900 You want to have your money in the So that if it recovers 150 00:07:05,900 --> 00:07:08,800 quickly, you ride along with those gains, if businesses 151 00:07:08,800 --> 00:07:11,300 flourish and business is good. You want to have your money in 152 00:07:11,300 --> 00:07:13,700 the market for that? So, in this scenario, the one 153 00:07:13,700 --> 00:07:17,000 that I think is unlikely, I think it does make sense to be 154 00:07:17,008 --> 00:07:18,700 invested. I don't think there's a good 155 00:07:18,700 --> 00:07:20,500 argument for selling out of the market. 156 00:07:20,600 --> 00:07:22,000 But let's go ahead and go to the second. 157 00:07:22,000 --> 00:07:24,600 One scenario, two is not The Optimist. 158 00:07:24,700 --> 00:07:27,600 It's the realest. This is the one where the 159 00:07:27,600 --> 00:07:30,300 economic effects are a little bit longer lasting. 160 00:07:30,500 --> 00:07:32,800 We have things like the US economy has a very slow 161 00:07:32,800 --> 00:07:34,800 recovery. It's not the v-shaped recovery. 162 00:07:34,900 --> 00:07:38,300 You it is the swish recovery. We have employment taking years 163 00:07:38,300 --> 00:07:40,200 to regain. We're seeing these numbers of - 164 00:07:40,200 --> 00:07:43,000 3 million a week and instead of having employment regain at 3 165 00:07:43,000 --> 00:07:45,500 million a week, instead. It's a couple hundred thousand a 166 00:07:45,508 --> 00:07:49,600 week, maybe and it takes years and years to finally regain back 167 00:07:49,600 --> 00:07:51,700 to anywhere close to where it was to begin with. 168 00:07:52,100 --> 00:07:54,800 Lots of companies, go out of business, even though the FED 169 00:07:54,800 --> 00:07:58,700 aggressively tries to fight the downturn, a lot of companies go 170 00:07:58,700 --> 00:08:01,600 out of business for good, and that affects the economy for a 171 00:08:01,608 --> 00:08:04,700 long time. Many people default on loans, so 172 00:08:05,000 --> 00:08:07,700 People unemployed have trouble paying for their mortgage paying 173 00:08:07,700 --> 00:08:10,600 for their car loans, paying for the credit cards, they default 174 00:08:10,600 --> 00:08:12,000 on them. And that causes stress to our 175 00:08:12,000 --> 00:08:14,600 financial systems, banks are stressed because of the amount 176 00:08:14,600 --> 00:08:16,600 of default treatments to the virus. 177 00:08:16,600 --> 00:08:19,500 Take a long time a lot longer than expected. 178 00:08:19,600 --> 00:08:22,300 The good news and the rumors of their being good treatments and 179 00:08:22,300 --> 00:08:24,300 vaccines. They really just don't pan out 180 00:08:24,300 --> 00:08:26,700 quite as well. And the virus has Resurgence 181 00:08:26,700 --> 00:08:28,800 that keep affecting the economy into the future. 182 00:08:29,000 --> 00:08:32,900 So, these are things that could happen in scenario 2 where it's 183 00:08:32,900 --> 00:08:36,799 not quite as rosy as the first. One thing's do eventually 184 00:08:36,799 --> 00:08:38,700 recover. Let's say, within five years, 185 00:08:39,100 --> 00:08:41,100 but it does take a number of years. 186 00:08:41,100 --> 00:08:43,100 That's a long time to wait for Recovery. 187 00:08:43,299 --> 00:08:45,700 When I'm sitting here making videos every week, talking about 188 00:08:45,700 --> 00:08:48,800 my portfolio, going through this five years is a long time for 189 00:08:48,800 --> 00:08:52,800 the economy to recover and the stock market in scenario two 190 00:08:53,000 --> 00:08:55,500 could drop in the meantime, within those. 191 00:08:55,500 --> 00:08:57,500 Five years. We could test new lows. 192 00:08:57,700 --> 00:09:01,000 We could have another drop, but in this scenario, even the 193 00:09:01,000 --> 00:09:03,200 realest one, the economy does recover. 194 00:09:03,500 --> 00:09:07,100 We don't go into some type of Spiral out of control where it 195 00:09:07,100 --> 00:09:10,100 never recovers in scenario 2. Even though the Outlook is a 196 00:09:10,108 --> 00:09:13,100 little bit more Grim. It's not completely optimistic. 197 00:09:13,100 --> 00:09:16,000 Eventually the economy does recover, and with that recovery. 198 00:09:16,000 --> 00:09:17,900 The stock market goes along with it. 199 00:09:17,900 --> 00:09:20,400 And eventually we do hit new highs in the stock market. 200 00:09:20,700 --> 00:09:23,000 Now, does it make sense to sell and scenario two? 201 00:09:23,400 --> 00:09:25,900 I don't think so. Why would I sell right now? 202 00:09:25,900 --> 00:09:28,900 If I think the economy is going to recover within five years, or 203 00:09:28,900 --> 00:09:31,900 just around five years, if it takes five or six years, if I 204 00:09:31,908 --> 00:09:34,600 think it's going to take that long to me, it still makes 205 00:09:34,600 --> 00:09:36,100 sense. To just buy companies. 206 00:09:36,100 --> 00:09:38,900 Keep invested in, wait for the recovery because I'm expecting 207 00:09:38,900 --> 00:09:40,900 it to happen. The economy will eventually 208 00:09:40,900 --> 00:09:43,800 recover, the economy will eventually grow, the stock 209 00:09:43,800 --> 00:09:47,100 market, should hit all-time highs sometime in five or six 210 00:09:47,100 --> 00:09:48,600 years with the economy recovering. 211 00:09:48,600 --> 00:09:53,500 So in this second scenario, just like the first one, I don't see 212 00:09:53,500 --> 00:09:57,300 a real good argument that says I should sell and move to cash. 213 00:09:57,600 --> 00:10:00,500 I don't really see that argument as being a strong argument. 214 00:10:00,600 --> 00:10:04,100 Some people argue that. Well, in this one, if reality 215 00:10:04,100 --> 00:10:07,000 sets in The economy's going to take a lot longer to recover. 216 00:10:07,200 --> 00:10:09,400 People are going to sell out that will lower the stock 217 00:10:09,400 --> 00:10:12,700 market, and you could have sold, and then bought in at a lower 218 00:10:12,700 --> 00:10:14,500 price. That's what people are saying 219 00:10:14,700 --> 00:10:18,000 that the stock market will probably go down 30 or 40%, You 220 00:10:18,000 --> 00:10:20,600 could have sold and then bought back in when it's down 30 or 221 00:10:20,600 --> 00:10:23,800 40%. I think that that's really, 222 00:10:23,800 --> 00:10:26,300 really difficult to do. I'm not good at timing. 223 00:10:26,300 --> 00:10:28,500 The market. I think that it's easier to stay 224 00:10:28,500 --> 00:10:32,100 invested to wait for recovery. And in the meantime try to buy 225 00:10:32,200 --> 00:10:34,900 good companies at good prices. They pay a good yield. 226 00:10:35,000 --> 00:10:37,200 You can just enjoy a constant stream of income. 227 00:10:37,900 --> 00:10:40,900 That's so much easier to do if you try to sell out right now 228 00:10:41,200 --> 00:10:44,600 and then wait for the economy to go down far enough to drag the 229 00:10:44,600 --> 00:10:47,600 stock market down and then try to buy back in at the right 230 00:10:47,600 --> 00:10:49,800 time. You might be successful, but I 231 00:10:49,808 --> 00:10:51,900 could see myself really screwing that up. 232 00:10:51,900 --> 00:10:54,100 So I think it's really difficult to time the market and if you 233 00:10:54,108 --> 00:10:56,300 think the economy is going to recover somewhere, within the 234 00:10:56,300 --> 00:10:58,500 next five years. It's just so much easier to wait 235 00:10:58,500 --> 00:11:00,200 it out so much for less stressful. 236 00:11:00,300 --> 00:11:02,800 Even if it goes down in the meantime for the next one or two 237 00:11:02,800 --> 00:11:05,400 years. I'd rather just keep Vesting, 238 00:11:05,400 --> 00:11:07,400 keep buying and wait out the recovery. 239 00:11:07,500 --> 00:11:11,100 And then we have scenario, 3, the pessimistic scenario, the 240 00:11:11,100 --> 00:11:14,400 Doomsday. This is no recovery for decades. 241 00:11:14,600 --> 00:11:18,300 We have not only a there's, there's no long drawn-out 242 00:11:18,300 --> 00:11:20,100 recovery. They're simply just not a 243 00:11:20,100 --> 00:11:22,100 recovery. We have a long drawn-out 244 00:11:22,100 --> 00:11:26,800 oppression and the US economy. Enters one of these spiral 245 00:11:26,800 --> 00:11:30,900 inflation, spiral, deflation stagflation, one of those scary 246 00:11:30,900 --> 00:11:33,900 economic terms, that really means that money becomes worth a 247 00:11:33,908 --> 00:11:36,200 lot less. It becomes worth too much and we 248 00:11:36,200 --> 00:11:37,700 can't manage our debt. Either. 249 00:11:37,700 --> 00:11:39,200 One of those scenarios aren't good. 250 00:11:39,300 --> 00:11:41,500 If we have too much inflation, that's not good. 251 00:11:41,600 --> 00:11:43,700 We have too much deflation, that's even worse. 252 00:11:43,800 --> 00:11:47,500 So if either of those happen, that's not a good thing to have 253 00:11:47,500 --> 00:11:50,900 happen, and it can spiral out of control, especially in the 254 00:11:50,900 --> 00:11:53,000 deflationary phase. I think the feds more worried 255 00:11:53,000 --> 00:11:55,700 about that. So we have issues like that, 256 00:11:55,700 --> 00:11:59,600 that we could face and we have the treatment being worse than 257 00:11:59,600 --> 00:12:01,400 the Cure. I'm not talking about 258 00:12:01,400 --> 00:12:03,200 coronavirus. When I say that, I'm saying the 259 00:12:03,200 --> 00:12:06,500 FED that the treatment that The FED is giving us, what if it's 260 00:12:06,500 --> 00:12:08,400 worse than the Cure, what if it's worse than nothing. 261 00:12:08,400 --> 00:12:10,600 They're treating. What if it has unintended 262 00:12:10,600 --> 00:12:14,100 consequences that causes the US economy to spiral out of control 263 00:12:14,100 --> 00:12:16,800 in some direction. We have too much debt. 264 00:12:16,900 --> 00:12:19,000 We have too much unexpected consequences. 265 00:12:19,300 --> 00:12:21,000 What? This could be a similar to the 266 00:12:21,100 --> 00:12:23,700 often referenced Japanese stock market. 267 00:12:23,800 --> 00:12:26,800 If you're not familiar, the Japanese stock market went 268 00:12:26,800 --> 00:12:29,600 through a phase where it really just never recovered. 269 00:12:29,700 --> 00:12:33,600 Since like, the 80s, it hit a peak and since then it's never 270 00:12:33,800 --> 00:12:37,800 been back to where it was. It was a huge asset bubble, both 271 00:12:37,800 --> 00:12:40,300 in real estate. And in the companies in Japan, 272 00:12:40,500 --> 00:12:43,700 people bid them up to prices that were astronomical. 273 00:12:43,800 --> 00:12:45,900 So let's say we have that. We have something happened that 274 00:12:45,900 --> 00:12:48,600 similar to what happened to the Japanese stock market. 275 00:12:48,800 --> 00:12:51,800 That the US economy was really just this big bubble. 276 00:12:52,100 --> 00:12:54,700 Everything was inflated. It had all these problems and 277 00:12:54,700 --> 00:12:57,600 the virus was just the pin that poke the bubble, everything 278 00:12:57,600 --> 00:13:01,100 explodes, and it's really never going to recover for decades and 279 00:13:01,100 --> 00:13:03,300 decades. Now, overall. 280 00:13:03,300 --> 00:13:06,600 I think this scenario is Unlikely, I don't think it's 281 00:13:06,600 --> 00:13:09,300 that realistic. I think most of people that 282 00:13:09,300 --> 00:13:11,500 really try to sell this happening. 283 00:13:11,800 --> 00:13:14,200 They're also selling gold. That's typically what happens. 284 00:13:14,200 --> 00:13:16,800 So, keep that in mind when people are really advocating for 285 00:13:16,800 --> 00:13:19,600 this type of thing saying that it's realistic, you know, 286 00:13:19,600 --> 00:13:23,300 they're typically selling gold. But regardless, I think this is 287 00:13:23,300 --> 00:13:24,900 a possibility. It's something that 288 00:13:24,900 --> 00:13:28,900 theoretically could happen. We could have a type of collapse 289 00:13:28,900 --> 00:13:31,900 in the u.s. That takes decades to recover 290 00:13:32,200 --> 00:13:34,300 really. Just never happens in our whole 291 00:13:34,300 --> 00:13:35,400 investing career. Years. 292 00:13:35,700 --> 00:13:38,500 So, even if we had this play out, if we had this doomsday 293 00:13:38,700 --> 00:13:41,700 worst case scenario in my much better off. 294 00:13:41,700 --> 00:13:44,700 Having sold right now, then staying invested. 295 00:13:44,900 --> 00:13:47,500 I don't really think so. I don't think there's a great 296 00:13:47,500 --> 00:13:50,800 argument that convinces me, that I'd be much better off in 20 297 00:13:50,800 --> 00:13:51,900 years. If I sold right now. 298 00:13:52,200 --> 00:13:55,100 If we have this type of thing happen, I think we're all in 299 00:13:55,100 --> 00:13:57,600 this same big boat. We're all in this boat called 300 00:13:57,600 --> 00:14:00,300 the world economy. If the world economy comes to a 301 00:14:00,300 --> 00:14:03,000 grinding halt, all of us are going to suffer whether you're 302 00:14:03,000 --> 00:14:05,000 invested or not. None of us are going to have 303 00:14:05,100 --> 00:14:06,700 Retirements. Think about this. 304 00:14:06,700 --> 00:14:09,300 All of us have a retirement. This kind of dependent on 305 00:14:09,300 --> 00:14:12,100 investing. We have our pensions, our 401ks 306 00:14:12,300 --> 00:14:14,700 are Roth IRAs. We have all these tools to build 307 00:14:14,700 --> 00:14:16,600 a retirement. And most of them are invested in 308 00:14:16,600 --> 00:14:19,400 the stock market. If the stock market goes down 309 00:14:19,600 --> 00:14:22,500 and never recovers throughout the duration of our lifetime. 310 00:14:22,900 --> 00:14:24,600 The none of us are going to have a good retirement. 311 00:14:24,700 --> 00:14:27,600 You could save up for your own retirement, but most people make 312 00:14:27,600 --> 00:14:32,000 somewhere between 500,000 and like two million dollars on the 313 00:14:32,000 --> 00:14:34,900 high end over the the course of their working life. 314 00:14:35,200 --> 00:14:38,100 So in order to save for retirement without investing, 315 00:14:38,200 --> 00:14:41,000 you'd literally have to save almost every penny you make 316 00:14:41,100 --> 00:14:43,600 without spending any of it. Not really a plausible thing to 317 00:14:43,600 --> 00:14:45,300 have happen. Either that or you have to make 318 00:14:45,300 --> 00:14:47,000 like double what the normal person does. 319 00:14:47,200 --> 00:14:50,200 So this is a scenario where I just think we're all in this big 320 00:14:50,200 --> 00:14:52,300 ship. If it doesn't work out at all. 321 00:14:52,300 --> 00:14:53,800 I think all of us are going to suffer. 322 00:14:54,100 --> 00:14:57,800 I have my doubts, that moving your money to Precious Metals is 323 00:14:57,800 --> 00:14:59,700 really the thing that would save you here. 324 00:14:59,800 --> 00:15:02,500 Now that might be the case, but if you do that and keep all your 325 00:15:02,500 --> 00:15:04,900 money and gold and you're waiting for the collapse of the 326 00:15:05,100 --> 00:15:07,500 Double economy. Not only are you waiting for a 327 00:15:07,500 --> 00:15:09,400 scenario that I think is highly unlikely. 328 00:15:09,800 --> 00:15:12,800 But even if we do have it, I have my doubts of how that will 329 00:15:12,800 --> 00:15:14,600 work out. We don't really know how people 330 00:15:14,600 --> 00:15:17,100 will value gold. If the global economy is 331 00:15:17,100 --> 00:15:21,300 completely stagnant for decades. They might value it well, but it 332 00:15:21,300 --> 00:15:23,600 might not be valued as much as it was historically. 333 00:15:24,200 --> 00:15:26,000 So, there you go. That's the reason why I say I'm 334 00:15:26,000 --> 00:15:29,300 not selling is because I look at the different options that I 335 00:15:29,300 --> 00:15:32,300 think are likely outcomes or probable outcomes of the US 336 00:15:32,300 --> 00:15:35,400 economy in the stock market and in each one of these Mario's, I 337 00:15:35,408 --> 00:15:38,000 just think it doesn't serve me better to sell. 338 00:15:38,200 --> 00:15:41,100 Doesn't serve me better to sell out on better served, keeping my 339 00:15:41,100 --> 00:15:43,300 money in the market in each case. 340 00:15:43,300 --> 00:15:45,300 Now, maybe I'm missing something. 341 00:15:45,300 --> 00:15:47,800 Maybe you have an argument that I haven't considered. 342 00:15:48,100 --> 00:15:50,400 If that's the case if I'm wrong. Leave a comment. 343 00:15:50,400 --> 00:15:52,400 Write me an e-mail. I'd be happy to go over it 344 00:15:52,400 --> 00:15:55,000 because I've thought about this a lot and again in each case. 345 00:15:55,000 --> 00:15:57,100 I think I'm better served staying invested. 346 00:15:57,100 --> 00:15:59,600 So what I plan on doing is basically more of the same 347 00:15:59,600 --> 00:16:02,700 focusing on passive income, focusing on generating a lot of 348 00:16:02,700 --> 00:16:06,000 cash flow. I have $88 My cash balance right 349 00:16:06,000 --> 00:16:07,600 now. That's all from dividends. 350 00:16:07,900 --> 00:16:10,600 None of this is from deposits. Typically, what I do is I take 351 00:16:10,600 --> 00:16:12,800 this money from dividends in my cash balance. 352 00:16:13,100 --> 00:16:16,000 I combined it with money that I deposit and then I use that to 353 00:16:16,000 --> 00:16:19,500 buy shares of whatever companies I think are either a good value 354 00:16:19,500 --> 00:16:22,600 or are a good company to buy given the current threats that 355 00:16:22,600 --> 00:16:25,200 we face. So I bought companies and health 356 00:16:25,200 --> 00:16:28,500 care companies and tech companies and consumer different 357 00:16:28,500 --> 00:16:31,300 ones that I think are good by. So that's what I've been doing. 358 00:16:31,300 --> 00:16:34,100 I plan on continuing to do that and I'll keep you updated week 359 00:16:34,100 --> 00:16:36,300 by week with it. Now, moving on there's a couple 360 00:16:36,300 --> 00:16:38,000 items. I want to address before going 361 00:16:38,000 --> 00:16:40,400 to emails and questions. One of them is this video that I 362 00:16:40,408 --> 00:16:44,500 came across, this is the social distancing table that this 363 00:16:44,500 --> 00:16:46,500 restaurant and Maryland came up with. 364 00:16:46,500 --> 00:16:51,100 It's basically a big inflatable tube on a table, that's on 365 00:16:51,100 --> 00:16:52,200 Wheels. So, let me go ahead and play 366 00:16:52,200 --> 00:16:59,900 this clip here. This is real, by the way, this 367 00:16:59,900 --> 00:17:12,099 isn't fake. Now hopefully this is just an 368 00:17:12,099 --> 00:17:15,300 attempt at the store owner to have some type of viral 369 00:17:15,300 --> 00:17:17,700 marketing. Some type of funny marketing 370 00:17:17,700 --> 00:17:20,500 gimmick that it was doing and if you did do that good job. 371 00:17:20,500 --> 00:17:22,700 I mean, he did a good job of making these tables. 372 00:17:22,700 --> 00:17:26,300 But if this is really a non-ironic attempt to have 373 00:17:26,300 --> 00:17:28,200 social distancing at its restaurant. 374 00:17:28,600 --> 00:17:31,800 If this is the new normal, I don't want any part of it. 375 00:17:31,800 --> 00:17:34,400 I'll be good. Staying in my house forever and 376 00:17:34,400 --> 00:17:36,800 eating takeout. If this is what the dining 377 00:17:36,800 --> 00:17:38,900 experience is going to be like at restaurants, what? 378 00:17:38,900 --> 00:17:41,000 This reminds me of is a while back. 379 00:17:41,000 --> 00:17:44,600 I showed this video clip of this guy, he made this thing called 380 00:17:44,600 --> 00:17:47,700 the pandemic prevention belt. Let me play just a clip of this. 381 00:17:48,500 --> 00:17:52,300 This is the pandemic. Prevention valve, stop spreading 382 00:17:52,300 --> 00:17:57,100 germs today, the included spandex wristbands will ensure 383 00:17:57,100 --> 00:17:59,600 your hands will never be able to reach your face. 384 00:18:00,800 --> 00:18:03,800 Keep those disgusting hands as far away as possible. 385 00:18:04,700 --> 00:18:07,400 No, Okay. Now I didn't think that I had to 386 00:18:07,400 --> 00:18:09,900 point this out. But I feel like I must this was 387 00:18:09,900 --> 00:18:12,600 a joke here. This guy made this as a funny 388 00:18:12,600 --> 00:18:15,000 joke. Haha laugh at the absurdity of 389 00:18:15,000 --> 00:18:16,700 this pandemic. Prevention, belt. 390 00:18:17,000 --> 00:18:19,400 I think we've gotten to the point though, where some people 391 00:18:19,400 --> 00:18:21,300 might actually use this type of thing on. 392 00:18:21,300 --> 00:18:22,600 Ironically. I think it feels to 393 00:18:22,608 --> 00:18:24,400 mass-produced that belt and sell it. 394 00:18:24,600 --> 00:18:27,100 The owner of this restaurant would be the first customer. 395 00:18:27,300 --> 00:18:30,100 So, after seeing this video, hopefully, this isn't our new 396 00:18:30,100 --> 00:18:31,500 normal here. Okay. 397 00:18:31,500 --> 00:18:32,700 Now, let's move on to some emails. 398 00:18:32,700 --> 00:18:35,400 Joseph at Joseph Carlson show.com as the email address. 399 00:18:35,800 --> 00:18:37,500 I first want to highlight one comment. 400 00:18:37,500 --> 00:18:38,900 That was left on the previous episode. 401 00:18:38,900 --> 00:18:40,300 I did. This is from Luke. 402 00:18:40,300 --> 00:18:42,600 He says can't wait to see you hit 100K. 403 00:18:42,800 --> 00:18:46,500 My portfolio is now over 10K and I can't believe it never thought 404 00:18:46,500 --> 00:18:49,300 I'd be able to save that much money so fast, thanks for the 405 00:18:49,300 --> 00:18:51,600 inspiration and the awesome content, keep it up. 406 00:18:51,800 --> 00:18:53,600 I really appreciate that. Comment, Luke. 407 00:18:54,000 --> 00:18:55,400 This is something I think is awesome. 408 00:18:55,400 --> 00:18:59,100 Anytime that I make episodes. One of my favorite things is a 409 00:18:59,100 --> 00:19:02,500 see if it motivates other people to save money to invest to pay 410 00:19:02,500 --> 00:19:04,200 off debts to do anything like that. 411 00:19:04,200 --> 00:19:06,800 Because I genuinely think you're Matter what companies, you buy 412 00:19:06,800 --> 00:19:09,400 the specific investment decisions you make, whether you 413 00:19:09,400 --> 00:19:12,100 go for growth companies or dividend, all that type of stuff 414 00:19:12,100 --> 00:19:14,000 can model out. The fact that if you're putting 415 00:19:14,000 --> 00:19:17,600 your money and productive assets for making financially, good 416 00:19:17,600 --> 00:19:19,800 decisions. It's going to improve your life 417 00:19:19,800 --> 00:19:22,600 and like you mentioned, you can't believe that that you have 418 00:19:22,600 --> 00:19:25,700 ten thousand dollars invested. Now once it gets past ten 419 00:19:25,700 --> 00:19:28,700 thousand dollars in value, Luke, that is when you get a lot of 420 00:19:28,800 --> 00:19:32,000 momentum, I think when you got to this point realize that 421 00:19:32,000 --> 00:19:36,000 you're so far past what most people are doing, Most people 422 00:19:36,000 --> 00:19:39,000 couldn't go two weeks without having a paycheck. 423 00:19:39,200 --> 00:19:41,800 They can't survive a month without having a paycheck. 424 00:19:41,900 --> 00:19:45,600 You have ten thousand dollars in Investments sitting there. 425 00:19:45,900 --> 00:19:47,400 That's pretty liquid. You could take it out at any 426 00:19:47,400 --> 00:19:49,800 time you want. So you essentially have saved up 427 00:19:49,800 --> 00:19:52,000 ten thousand dollars. You have it invested right now 428 00:19:52,000 --> 00:19:55,300 working for you. But this is a huge landmark and 429 00:19:55,300 --> 00:19:57,400 you have to give yourself a pat on the back for doing something 430 00:19:57,400 --> 00:19:59,800 that most people don't. Do you have momentum going in 431 00:19:59,800 --> 00:20:02,300 the right direction? You're saving this money, using 432 00:20:02,300 --> 00:20:05,000 it wisely and you're going to be rewarded for it down the road. 433 00:20:05,200 --> 00:20:08,100 If You keep going. I think momentum will push this 434 00:20:08,100 --> 00:20:10,700 further and further along. It'll get easier to build up 435 00:20:10,700 --> 00:20:13,700 larger sums of money. So it'll be at 20,000 before you 436 00:20:13,700 --> 00:20:16,500 think and then we'll be at 40,000 before you think you 437 00:20:16,500 --> 00:20:18,300 know, you'll be surprised how quickly it grows. 438 00:20:18,300 --> 00:20:21,500 If you stay consistent. Diego says, hey Jules, if people 439 00:20:21,500 --> 00:20:24,200 are being narcissistic and selfish regarding the heroes 440 00:20:24,200 --> 00:20:26,300 act. Nobody's happy that immigrants 441 00:20:26,300 --> 00:20:28,500 will be able to receive a stimulus check. 442 00:20:28,800 --> 00:20:30,600 Don't forget that. There are mixed families who 443 00:20:30,600 --> 00:20:33,000 have kids born in the US. Is it right? 444 00:20:33,000 --> 00:20:35,400 That American children with one immigrant parent won't get help. 445 00:20:35,600 --> 00:20:38,600 During this critical time, are they not considered Americans 446 00:20:38,600 --> 00:20:40,800 for having an immigrant parent? Personally. 447 00:20:40,800 --> 00:20:42,800 I don't think there should be any talks regarding a stimulus 448 00:20:42,800 --> 00:20:45,200 check, because it won't help the economy, and we'll just cause 449 00:20:45,200 --> 00:20:47,800 future problems. If we're honest, Americans would 450 00:20:47,800 --> 00:20:51,500 be okay with the heroes act. If the immigrants were taken out 451 00:20:51,500 --> 00:20:53,500 of the equation. Most people don't care if it 452 00:20:53,500 --> 00:20:56,000 affects the economy. They just want all the benefits 453 00:20:56,000 --> 00:20:58,500 for themselves. They're giving an attitude that 454 00:20:58,500 --> 00:21:00,200 if they can't have it, nobody. Can. 455 00:21:00,400 --> 00:21:02,100 We are being greedy and forgetting the virus. 456 00:21:02,100 --> 00:21:04,500 Does not care about your status. Love your videos. 457 00:21:04,500 --> 00:21:06,900 Thank you. Well, Diego, I appreciate the 458 00:21:06,900 --> 00:21:08,300 email. I'm glad you liked the show. 459 00:21:08,600 --> 00:21:11,300 I think you're highlighting a point or at least arriving at a 460 00:21:11,308 --> 00:21:14,500 conclusion that I think most people get to at some point, 461 00:21:14,500 --> 00:21:19,200 which is the government is not good at properly, rewarding 462 00:21:19,200 --> 00:21:23,500 people for effort or their situation in an equitable way. 463 00:21:23,600 --> 00:21:25,700 That's not a skill, the government really has that 464 00:21:25,700 --> 00:21:28,400 they're good at but they're known for in fact, a lot of the 465 00:21:28,400 --> 00:21:31,200 ways that they do things are almost counterintuitive. 466 00:21:31,400 --> 00:21:35,800 They're against the incentive. So I can give the example of You 467 00:21:35,800 --> 00:21:39,200 know, a big business that has done stock BuyBacks for a decade 468 00:21:39,200 --> 00:21:42,100 that hasn't saved any money for itself and then it runs into 469 00:21:42,100 --> 00:21:44,300 trouble and the government steps in and bills it out. 470 00:21:44,500 --> 00:21:47,700 That is rewarding bad behavior. That is, you know, a moral 471 00:21:47,700 --> 00:21:50,500 hazard is the term for it. So the government's really good 472 00:21:50,500 --> 00:21:53,800 at rewarding bad behavior and its really good at discouraging 473 00:21:53,800 --> 00:21:55,300 good behavior. For instance. 474 00:21:55,800 --> 00:21:57,400 My older brother. He's been working during this 475 00:21:57,400 --> 00:21:59,700 entire downturn. He's an eye surgeon and he's 476 00:21:59,700 --> 00:22:02,100 been doing a lot of procedures that aren't elective procedures. 477 00:22:02,100 --> 00:22:05,000 These are emergency procedures. So people, come in, they have 478 00:22:05,600 --> 00:22:08,400 Damage Done to their eye, they have I issues and they need an 479 00:22:08,400 --> 00:22:10,700 immediate surgery to help restore Vision. 480 00:22:11,000 --> 00:22:14,300 He'll do these surgeries there, really highly complex, highly 481 00:22:14,300 --> 00:22:17,400 stressful surgeries, and he's not going to receive any money 482 00:22:17,400 --> 00:22:19,900 from the stimulus. He's on the side where he pays 483 00:22:20,000 --> 00:22:23,300 nearly 50 percent of his income in taxes, but he's not going to 484 00:22:23,308 --> 00:22:26,200 receive any money and stimulus because he makes over the 485 00:22:26,200 --> 00:22:28,300 threshold. So there's people that, you 486 00:22:28,300 --> 00:22:30,100 know, they're in that situation where they're working doing 487 00:22:30,100 --> 00:22:32,300 things that are pretty important, you know, fixing your 488 00:22:32,300 --> 00:22:34,900 vision is kind of an important thing that aren't rewarded by 489 00:22:34,900 --> 00:22:37,900 the There's companies that Miss manage businesses. 490 00:22:37,900 --> 00:22:40,100 That get huge paychecks and they get a Lifeline. 491 00:22:40,300 --> 00:22:42,100 There's a whole thing with the government. 492 00:22:42,100 --> 00:22:45,400 They're really, really good. At making it so that they have 493 00:22:45,400 --> 00:22:47,600 the wrong incentives. There's lots of moral hazards. 494 00:22:47,600 --> 00:22:50,100 There's lots of issues with it. You're probably looking at this 495 00:22:50,100 --> 00:22:52,500 and I can send some frustration with this email. 496 00:22:52,500 --> 00:22:54,600 You're saying, you know, there's probably some people you're 497 00:22:54,600 --> 00:22:57,500 talking about undocumented immigrants that are contributing 498 00:22:57,500 --> 00:22:59,100 they're working. They're probably paying taxes 499 00:22:59,400 --> 00:23:01,300 and they're not going to receive any money fair enough. 500 00:23:01,300 --> 00:23:04,400 There's arguments on either side, but the main point is if 501 00:23:04,400 --> 00:23:06,300 you're giving away five trillion, Dollars. 502 00:23:06,400 --> 00:23:09,900 If you're expecting a few bureaucrats in Washington, to do 503 00:23:09,900 --> 00:23:13,500 that in a very Equitable way where everybody is receiving it 504 00:23:13,500 --> 00:23:16,000 fairly. It's just not going to happen. 505 00:23:16,000 --> 00:23:17,800 There's going to be winners. There's going to be losers. 506 00:23:18,100 --> 00:23:21,000 Everybody wants to be on the winter side, but it doesn't work 507 00:23:21,000 --> 00:23:24,200 out that way. I could give more examples of 508 00:23:24,200 --> 00:23:27,200 moral hazards. So one part of it is student 509 00:23:27,200 --> 00:23:29,200 loan, forgiveness. There's winners and losers in 510 00:23:29,208 --> 00:23:31,300 that situation. Obviously the winners in that 511 00:23:31,300 --> 00:23:33,700 situation would be the people carrying student loans. 512 00:23:33,700 --> 00:23:35,600 That would have a forgiving that would be huge. 513 00:23:35,700 --> 00:23:38,100 Win for them. The losers in that situation are 514 00:23:38,100 --> 00:23:40,900 the people that worked two jobs to pay off their student loans 515 00:23:40,900 --> 00:23:42,300 that were financially responsible. 516 00:23:42,300 --> 00:23:45,700 So again, there's there's incentives and disincentives a 517 00:23:45,700 --> 00:23:48,900 lot of times the government has it backwards, but that's the way 518 00:23:48,900 --> 00:23:51,600 the government works. So my advice, I guess even 519 00:23:51,600 --> 00:23:55,000 thinking about this for a minute is just, you know, be grateful 520 00:23:55,000 --> 00:23:57,100 if you're on this side where you're benefiting from it, if 521 00:23:57,100 --> 00:23:59,500 you're not, don't concern yourself too much with it 522 00:23:59,500 --> 00:24:02,100 because it's out of your control and like most things with 523 00:24:02,100 --> 00:24:05,400 politics in the government. It's probably better to not. 524 00:24:05,800 --> 00:24:09,100 Self with the too much, do what you can but then focus on things 525 00:24:09,100 --> 00:24:11,200 you're in more control of. So that's what I try to do. 526 00:24:11,300 --> 00:24:14,300 Not concern myself too much with stuff that is out of my control 527 00:24:14,700 --> 00:24:17,000 and how they divvy up and give out trillions of dollars is 528 00:24:17,000 --> 00:24:20,400 definitely out of my control. So that's the best advice I have 529 00:24:20,400 --> 00:24:23,400 on that subject. All right, Ryan says, hi Joseph. 530 00:24:23,500 --> 00:24:25,200 Firstly, thank you for the informative and 531 00:24:25,200 --> 00:24:27,400 thought-provoking videos. I watch every week and 532 00:24:27,400 --> 00:24:31,100 appreciate the effort. My question is regarding - bonds 533 00:24:31,100 --> 00:24:33,000 here in the UK. The bank of England is now 534 00:24:33,000 --> 00:24:38,200 offering a three-year bond with a negative. 0.003 percent yield 535 00:24:38,400 --> 00:24:41,300 as an investor. I cannot see the appeal knowing 536 00:24:41,300 --> 00:24:43,600 that your investments will return less than initially 537 00:24:43,600 --> 00:24:45,500 invested. Seems like a poor move. 538 00:24:45,600 --> 00:24:47,700 Or is there some upside? I'm overlooking. 539 00:24:47,800 --> 00:24:50,100 Thank you for taking the time to read this Ryan. 540 00:24:50,600 --> 00:24:51,800 Well, this is an interesting question. 541 00:24:51,800 --> 00:24:53,000 Ryan. This is something that's 542 00:24:53,000 --> 00:24:54,900 perplexing to a lot of new investors. 543 00:24:55,200 --> 00:24:58,300 I have I think limited knowledge of the bond market it gets very 544 00:24:58,300 --> 00:25:01,300 complex, but I've listened to a lot of different opinions on 545 00:25:01,300 --> 00:25:04,300 this people like Jeffrey gundlach that strongly opposed 546 00:25:04,300 --> 00:25:07,000 the u.s. Following Example of Europe and 547 00:25:07,000 --> 00:25:08,600 entering into negative interest rates. 548 00:25:08,700 --> 00:25:11,300 He thinks that. That would be an incredibly bad 549 00:25:11,300 --> 00:25:14,400 decision for the u.s. So you can look at some videos 550 00:25:14,400 --> 00:25:15,900 of him. Jeffrey gone, like has talked 551 00:25:15,900 --> 00:25:18,400 about this a lot. But overall, I think it's 552 00:25:18,400 --> 00:25:21,800 policies where the intention was to Spur economic growth. 553 00:25:21,900 --> 00:25:24,500 Europe wanted to have it. So money was really cheap and 554 00:25:24,500 --> 00:25:25,800 that would make it. So the economy would grow 555 00:25:25,800 --> 00:25:28,600 faster. It doesn't seem like there's a 556 00:25:28,608 --> 00:25:31,700 whole lot of evidence to support that but that's the basis of it. 557 00:25:32,000 --> 00:25:35,400 The question is, why would people buy a - yielding Bond? 558 00:25:35,700 --> 00:25:38,300 Why would anybody do that? Is there some hidden reason why 559 00:25:38,900 --> 00:25:40,800 I think the reason why is because they have no other place 560 00:25:40,800 --> 00:25:43,300 to put the money if you're controlling billions of dollars 561 00:25:43,700 --> 00:25:45,600 that money has to exist somewhere. 562 00:25:45,800 --> 00:25:48,800 It can't just be in the air know where it has to actually exist 563 00:25:48,800 --> 00:25:51,000 somewhere. So, typically that's an equity 564 00:25:51,000 --> 00:25:53,200 of companies. So you have stocks or you have 565 00:25:53,200 --> 00:25:55,100 bonds. And if you don't want to put 566 00:25:55,100 --> 00:25:56,700 your money in stocks, you put it in bonds. 567 00:25:56,900 --> 00:25:58,400 Well, what if the bonds aren't yielding? 568 00:25:58,400 --> 00:26:01,400 Well, what if they're negative Feeling Again, that money has to 569 00:26:01,400 --> 00:26:03,300 be somewhere. So some people will buy the 570 00:26:03,300 --> 00:26:05,400 bonds just because they're really forced you. 571 00:26:05,400 --> 00:26:08,000 They No other good place to put the money if they don't want to 572 00:26:08,000 --> 00:26:09,600 actively buy shares of companies. 573 00:26:09,900 --> 00:26:11,400 They have to put that money in bonds. 574 00:26:11,400 --> 00:26:14,300 So I think that's the answer. I think there's a lot of money 575 00:26:14,300 --> 00:26:16,000 that exists. There's not a lot of places to 576 00:26:16,000 --> 00:26:18,400 put it so it ends up in these bonds, even if they're 577 00:26:18,400 --> 00:26:20,500 guaranteed to give you a negative return. 578 00:26:20,500 --> 00:26:23,600 So I'm sure people there aren't really pleased with a guaranteed 579 00:26:23,600 --> 00:26:27,300 - return but that's the options are given right now. 580 00:26:28,000 --> 00:26:29,200 Okay. I'm going to go ahead and end 581 00:26:29,200 --> 00:26:31,000 this episode there. I appreciate everybody for 582 00:26:31,000 --> 00:26:33,700 listening. Also, if you don't know, this 583 00:26:33,700 --> 00:26:36,500 show is on pretty much every Podcast service. 584 00:26:36,500 --> 00:26:38,900 So it's on Spotify. It's on Apple podcast. 585 00:26:39,000 --> 00:26:42,200 If you search, the Joseph, Carlson show, you'll find it. 586 00:26:42,200 --> 00:26:44,400 So if you want to listen, that way you can, you're welcome to 587 00:26:44,400 --> 00:26:47,200 as well. We probably have about 5,000 588 00:26:47,200 --> 00:26:49,900 listeners per episode on the different podcast services. 589 00:26:49,900 --> 00:26:52,600 So there's a good amount of audience there as well. 590 00:26:52,600 --> 00:26:55,200 But you can check that out. Also, if you're interested in 591 00:26:55,200 --> 00:26:57,200 doing more of a daily discussion, if you want more 592 00:26:57,200 --> 00:26:59,600 Joseph, Carlson show, I have the Discord. 593 00:26:59,600 --> 00:27:02,400 I'm on that pretty much every day so you can check that out as 594 00:27:02,400 --> 00:27:03,700 well. Otherwise, I'll see you guys 595 00:27:03,700 --> 00:27:04,200 next time.