The Stock Market Falls Again: What’s Really Happening?

"Wall Street is now pricing in four interest rate cuts by the end of the year."

"Now, they're predicting four interest rate cuts, a whole percentage point cut of interest rates by the end of 2024."

"And this SOM rule has predicted every recession since the early 1970s. And now because unemployment jumped up to 4.3% the SOM rule now says that we are going to see a recession."

"Now, when we get bad economic news, the stock market falls. The reason why this is is previously, we'll talk about previous to this week. Anytime we saw bad economic news, we saw news that unemployment is rising. We saw news that wage growth is falling. We saw news that there's some pain in the economy, the stock market would rally because people would assume that that means that the Federal Reserve Bank is going to start cutting interest rates sooner."

"And what they reported last week is that wages are now growing at the slowest pace in three years."

"is because they have billions of dollars of debt that are going to readjust starting in 2024, then in 2025."

"I can guarantee you things are going to continue to stay crazy. They're going to get crazier as we enter closer to an election. As we start to see more economic pain, if we see more wars develop overseas, things will continue to stay crazy."