The Silent Recession Of 2024

"in mid 2023 the consensus was that we would see steep better Reserve Bank interest rate Cuts coming in 2024 as inflation subsides"

"The reason why so many people were optimistic about so many interest rate Cuts in 2024 was because the Federal Reserve Bank essentially said that the inflation fight was over well turn out it's not it wasn't a tell a couple of months ago"

"we're going through a correction phase in our economy and by correction what I mean by that is the Federal Reserve Bank is trying to correct what they did back in 2020 2021 and into 2022"

"Now is there going to be economic pain from this again everybody has an opinion I believe that we are going to see some economic pain from this but that's just my opinion"

"our economy goes through recessions that's a fact and well you want to be able to win when markets are up and down"

"inflation is going to continue to happen it is a part of our economic system and it's going to continue to happen"

"and you got to understand that investing has risks you're never guaranteed to make money when you invest in fact you will lose money at some point"

"the asset owners are going to continue to win you're going to see a bigger divide between the financially educated and those who are not"

"the cost of things over the last 5 years have grown by 25%"

"incomes have risen Over The Last 5 Years how much much well we're not actually going to know until at least next year so instead of looking at income data between 2019 and 2024 I'm going to look at the Social Security cost of living adjustments because every single year the Social Security Administration increases how much money a social security beneficiary receives because the cost of living has gone up year after year after year after year after year and if we take a look at the Social Security increases between 2019 and 2024 we will see that the cost of income the social social security has gone up by around 22% over the last 5 years so we'll just say that incomes have risen by 22% Over The Last 5 Years"

"if you take a look at the S&P 500 which grew just over 70% Over The Last 5 Years we'll say the investors gained about 70% in wealth over the last 5 years"

"after 1971 the dollar was no longer backed by physical gold the dollar essentially just became pieces of paper and now the United States government had the ability to kind of spend whatever amount of money they want"

"when now you have this unlimited money printing with no constraints of how much you can print that Dev values the currency"

"the United States government spent $5 trillion just on pandemic stimulus to stimulate the economy to stimulate the American Consumer to stimulate the businesses in America"

"$5 trillion created between 2020 and 2021 is more than how much the United States government generated in taxes in 2019"

"the United States government stimulated our economy by creating essentially 25% of our entire wealth out of the air because this $21 trillion of GDP $21 trillion of economy that's how much money our United States economy generates after an entire year of working"

"the feder bank makes it very clear they say that they want a target of 2% inflation they don't say that they want 0% inflation they say that they want 2% inflation which means that they still want inflation"

"the Federal Reserve Bank is trying to undo what they did here when we saw this massive money printing when we saw all these stimuluses happening"

"the Federal Reserve Bank has been working now to fight inflation how are they working to fight inflation well number one they've raised interest rates significantly"

"number two the Federal Reserve Bank has been doing what's called quantitative tightening which is a fancy way to say that they're trying to essentially get rid of some of the money out there"

"the goal is to cool down inflation meaning bring inflation down to the 2% Target that means they still want the prices of things to rise just not as fast as they were before"

"the way that you do that is not by earning a big salary I don't care how much money you make I don't care what you do I don't care if you are making $50,000 a year I don't care if you're a doctor making $500,000 a year I don't care if you're an NBA player making $5 million a year or even $50 million a year you're never going to become truly wealthy until you start diversifying away from your own income that you have to work to earn"

"eventually you might want to retire eventually you might want to stop working and if you stop working and the income stops coming into you well now you no longer have money to keep living that same Lifestyle"

"the only way you can keep living that lifestyle is if you own some real assets"

"the way you win is by understanding now how do you win no matter what happens and the way that you do that is number one you have a strategy to win when markets are going up and number two you have a strategy to win when markets go down"

"when asset prices fall that creates a good opportunity for you to go out and buy more of those assets at a discounted price"

"but in order for you to do that you need to have money and you have to be financially educated to know what to invest"

"you want to have somewhere between the 3 to 12 months worth of savings cushion to protect you financially against something bad happening against losing your income"

"you have a passive investing system where now every week every two weeks maybe every month some money is going to automatically be invested if you're investing in stocks it's going to automatically be invested into your portfolio of index funds into your portfolio of mutual funds or into your portfolio of ETFs"

"this strategy is something you want to do not for 6 months not even for 6 years you want to do this strategy for decades"

"invest your money into funds pay a little fee because every fund whether it's an index fund ETF or mutual fund is going to cost you a fee pay a little bit of a fee and just invest your money there that we get invested into a broad portfolio of stocks whether it's dozens of stocks or hundreds of stocks maybe even thousands of stocks"

"you keep investing when the Market's good you keep investing when the Market's okay you keep investing when the Market's bad you keep investing"

"when markets go down you keep investing here into this fund and then you take this other pile of cash that you had and now you start dumping this into the markets when the Market's down that way you can stack up and load up on your assets when they're cheap"