0:02 It sounds like the economy is booming.
0:03 Corporate profits are at record highs
0:05 and the stock market keeps going up. But
0:07 when you dig a little bit deeper, you
0:09 start to see the cracks forming. Turns
0:10 out it's not the entire stock market
0:12 that's booming. It's a handful of
0:14 companies that are carrying the rest of
0:16 the stock market. But that's not all.
0:18 The average American is slowly becoming
0:20 poorer as the prices of things keep
0:22 going up because of inflation and the
0:24 job market continues to go down because
0:26 of AI. The reason why you want to pay
0:27 attention to this is because history
0:29 shows us that when the markets are being
0:32 held up by a few giants, a small crack
0:34 can turn into big problems. So, in this
0:35 video, I want to show you what's
0:37 happening in the economy and how you can
0:39 not only protect yourself, but find
0:40 investment opportunities that others
0:42 might be overlooking. So, stick with me
0:44 until the end. The news keeps talking
0:46 about how corporations are seeing record
0:47 profits, which is helping the stock
0:49 market break new record highs. But we're
0:51 actually seeing a divergence here where
0:53 a few select companies are carrying the
0:55 market while the rest of the stock
0:57 market is actually slowing down. More
0:59 specifically, these seven stocks known
1:02 as the Magnificent 7. Meta, Alphabet,
1:04 Amazon, Apple, Microsoft, Nvidia, and
1:10 Tesla have grown by around 14.9%
1:14 in terms of earnings in Q3 of 2025. So
1:17 we can compare that 14.9% to the other
1:20 493 companies in the S&P 500. This is a
1:22 group of the 500 largest companies in
1:24 the stock market. So the other 493
1:28 stocks have grown by around 6.7%
1:32 profits in Q3 2025. Why does that
1:33 matter? Because over the last 10 years,
1:36 the average historical quarterly growth
1:39 rate is 9.2%.
1:40 Which means these seven stocks are
1:42 growing significantly faster than the
1:45 average. Well, these 493 companies are
1:47 growing slower than the average. But the
1:49 real reason why this is so important
1:50 isn't just that some companies are
1:52 growing faster than others, because that
1:54 always happens. It's also because
1:56 certain companies are making up a much
1:58 bigger percentage of the overall S&P
2:02 500. These seven companies by themselves
2:06 make up around 33% of the entire value
2:09 of the S&P 500. So, seven stocks are
2:12 making up a third of this 500 company
2:14 valuation. And this is where things
2:16 start to become risky because if one of
2:18 these seven companies doesn't do good,
2:20 not only is it bad for that company and
2:22 those employees, but now it could bring
2:24 down the entire stock market because it
2:27 has such a big weight relative to the
2:28 general stock market. And this is where
2:30 some people get concerned that are we in
2:32 a stock market bubble because some
2:33 companies are carrying the entire stock
2:35 market and they have these huge
2:36 valuations that just don't make sense.
2:38 But we're actually now starting to
2:40 inflate this bubble rather than deflate
2:42 this bubble. Because on one hand,
2:44 normally when you raise interest rates,
2:46 that's what pop bubbles. Because when
2:48 you raise interest rates, it makes
2:49 borrowing more expensive and investors
2:51 have to be more cautious as to where
2:52 they invest their money. You want to be
2:54 less speculative when it's higher
2:55 interest rates. But right now, the
2:57 Federal Reserve Bank is not raising
2:58 interest rates. They're cutting interest
3:00 rates. Cheaper interest rates mean it's
3:02 cheaper to borrow money. I can make more
3:04 speculative investments. I can make more
3:07 growth tiered investments. So generally
3:08 lower interest rates don't pop bubbles,
3:11 they inflate bubbles. On top of that,
3:13 the Federal Reserve Bank is also ending
3:14 quantitative tightening. They ended
3:16 quantitative tightening on December 1st,
3:18 which means the Federal Reserve Bank is
3:20 working to make money more loose, to
3:22 encourage banks to lend more, to
3:24 encourage people to borrow more, as a
3:26 way to continue fueling the markets, as
3:28 a way to continue fueling this system
3:30 that we have right now. Which ultimately
3:32 means that these seven companies have to
3:34 keep growing like crazy because
3:35 investors that are buying these
3:36 companies are paying premiums. Meaning
3:38 they're paying high valuations, high
3:40 multiples to invest in these companies.
3:42 And the reason why investors are paying
3:43 these high multiples is because they
3:45 believe that these seven companies are
3:47 essentially going to take over the world
3:48 that they're going to keep growing very
3:51 fast. Well, if these companies don't hit
3:54 that mark, if maybe AI doesn't grow as
3:55 fast as some people might expect, if
3:57 these companies don't grow as fast as
3:59 investors would expect, that could
4:01 trigger a sell-off. And if that sell-off
4:03 happens, not only is it bad for that
4:04 company, but because these companies
4:06 have such a high weight in the overall
4:08 stock market, it could bring down the
4:10 entire stock market. And this is where
4:12 investors have concerns. Now again, it
4:13 is very important for you to be an
4:15 investor and it's important for you to
4:16 know how to analyze your investments.
4:18 Which is why again I put together a free
4:20 investing master class for you where I
4:21 walk you through how you can get started
4:23 as an investor and find hidden
4:24 investment opportunities before
4:26 everybody else. I'll show you the exact
4:28 framework that my firm and I use to
4:29 research investment opportunities before
4:31 they hit the headlines. It's a
4:32 completely free master class. There's a
4:34 ton of value in there. And when you
4:35 register for the master class, you're
4:37 also going to get access to market
4:38 briefs, which is my newsletter for
4:40 investors, completely free. So, if you
4:41 want to get the investing master class
4:43 and market briefs all for free, all you
4:44 have to do is register. And I have that
4:46 link for you down in the description
4:48 below. But there's one more big reason
4:49 that you want to pay attention to. When
4:50 you invest your money in the stock
4:52 market, you have two options. You can
4:53 invest your money into an individual
4:55 company, like I can go onto my stock
4:57 brokerage and buy one share of Apple, or
5:00 you can invest into a fund. And a fund
5:02 is essentially a basket of stocks. And
5:04 one of the most popular baskets of
5:06 stocks, one of the most popular funds in
5:08 the United States today is investing
5:11 into a S&P 500 fund. That's investing
5:13 into the largest 500 companies in the
5:15 stock market. And a couple of the most
5:17 common and popular ETFs to do this are
5:20 investing in something like SPY, SPY,
5:23 VO, which personally I am invested in as
5:25 a disclaimer. These are just a couple of
5:27 the many, many, many ways that you can
5:29 invest into the S&P 500. Why does that
5:31 matter? Because when you invest into any
5:33 one of these companies, you're investing
5:36 into these 500 companies. But the $100
5:37 that you invest into this fund isn't
5:39 going to be distributed evenly across
5:42 these 500 companies is going to go into
5:44 some companies more than others. And you
5:45 want to know which companies are going
5:48 to get the most money? These ones right
5:49 here. And the concerns that many
5:51 investors have is what happens if people
5:54 are buying these stocks at a inflated
5:56 value. For example, at the time of me
5:58 recording this video, the average PE
6:03 ratio in the S&P 500 is about 29.
6:06 What that means is investors are paying
6:08 29 times earnings to buy a share of a
6:10 company. So, if I start a company and I
6:13 made $1,000 of profit and I wanted to
6:15 sell my company, this company would be
6:19 worth 29 times $1,000 of profit that I
6:22 make over a year, which is $29,000.
6:25 $1,000 of profit is worth $29,000.
6:27 This is what the S&P 500 is trading at
6:29 right now. You can compare that to the
6:32 average where the average is about 20
6:36 times earnings, which means yes, stocks
6:38 are trading for a pretty hefty premium
6:40 over the average right now. Now, the
6:41 reason why many investors will say that
6:43 the markets are not overvalued, this is
6:44 just a normal part of our cycle, is
6:47 because partially due to AI. Artificial
6:49 intelligence is changing our economy. So
6:50 investors are saying, "No, you're
6:52 actually not paying this 29 times
6:54 earnings. What you're paying is for the
6:55 future growth that we're going to see in
6:59 2026, 2027, and 2028 because AI is going
7:00 [snorts] to help the economy boom so
7:02 much that these companies are going to
7:04 see even bigger profits, even bigger
7:05 revenues because they're going to be
7:08 able to amplify everything that they're
7:10 doing with this new technology. And
7:12 that's why investors are willing to pay
7:14 such high valuations, such high
7:17 multiples, such expensive values for
7:19 certain companies. assuming that they're
7:21 going to be able to produce these
7:23 blockbuster results because of this new
7:26 technology. Again, it's a lot of hope
7:28 and speculation. The concern is what if
7:30 it doesn't pan out the way that some
7:32 investors might like? If we see good
7:34 results, not amazing results, that could
7:36 mean bad news and that could bring one
7:38 of these stocks down. And if one of
7:40 these stocks go down, yes, it's bad for
7:42 the stock, but that's what can then
7:43 bring down the value of the stock
7:45 market. And the reason why I keep
7:47 emphasizing this is because a lot of
7:50 investors are emotional. If we were to
7:53 see a let's just say 10% pullback in the
7:55 stock market, really not that big of a
7:57 deal, but if we were to see a 10%
7:59 pullback in the stock market, well, we
8:01 have more retail traders in the stock
8:04 market now than ever before.
8:07 And a retail trader oftentimes doesn't
8:09 have the best psychology of knowing what
8:11 to do when markets go down, what to do
8:13 when markets pull back. Now a lot of
8:14 times institutional investors don't know
8:16 either but the reason why I say this is
8:18 because if markets start to go down it
8:21 could trigger people to get worried and
8:23 sometimes that market pulld down can
8:25 actually lead to that actual effect that
8:27 people are scared about which is a
8:28 market crash because if markets start to
8:30 go down people might say oh my god the
8:32 market's about to crash I need to pull
8:34 out before the market crashes and then
8:36 that pull out actually causes the market
8:37 crash and the reason why I say this
8:40 specifically here is because people have
8:43 amazingly high expectations ations and
8:45 if these expectations get cooled down
8:47 because right now it's higher higher
8:49 higher expectations but if these
8:51 expectations start to cool down that's
8:54 where people can say oh maybe AI isn't
8:56 as powerful as we thought maybe this
8:57 technology isn't as good as we thought
8:58 maybe these companies aren't going to be
9:00 as successful as we thought we need to
9:01 get out while we can and not only would
9:04 that pull out these companies but that
9:06 would pull down the general markets and
9:07 then if people get scared and then they
9:09 start to sell that could cause the
9:11 markets to go down even further.
9:13 Now, what does this mean for you? Does
9:14 this mean that you shouldn't buy? Does
9:16 this mean that you need to wait to
9:18 invest? No. This means you got to be
9:21 aware because the reality is markets go
9:23 up, markets go down. Just because
9:24 markets could be in a bubble doesn't
9:26 mean that there's money to be made. And
9:27 this is where you have to have the right
9:29 strategy for you. And the right strategy
9:30 is going to depend on what your
9:31 interests are and how much time you have
9:33 to invest. But you got to understand the
9:34 different types of investing and
9:36 understand the different opportunities
9:37 depending on what stage of the market
9:39 cycle that you're in because markets go
9:41 up and markets go down. If you are
9:44 investing into passively invested funds,
9:47 things like the S&P 500, great. Then you
9:48 need a strategy that allows you to win
9:50 when markets go up and down. And what I
9:51 like to teach, again, I can't tell you
9:53 what to do because I'm just a random guy
9:55 on YouTube. Investing has risks. You're
9:56 never guaranteed to make money when you
9:58 invest. In fact, you will lose money at
9:59 some point. So, make sure you always do
10:01 your own due diligence and never blindly
10:02 trust a random guy on YouTube. But the
10:05 way you win as a passive investor is by
10:08 following a strategy I call ABB. Always
10:10 be buying. Period. So, if you're going
10:12 to be investing into these passive
10:14 funds, set up a system where it's every
10:16 week, every two weeks, or every month.
10:17 Money gets pulled out of a checking
10:19 account and it's automatically deposited
10:21 into these funds. And it should keep
10:23 happening whether markets are booming,
10:25 whether markets are crashing, whether
10:26 markets are sideways. The only time you
10:29 change it is when markets are crashing.
10:31 You use that as an opportunity to
10:33 potentially buy even more. That way,
10:35 when markets go down, you use it as an
10:36 opportunity to buy more shares of the
10:39 fund. Because the reality is we know
10:41 that over the long term markets go up.
10:44 And what this tells us is we can expect
10:46 more volatility. Not that our economy is
10:48 going to break. Not that the stock
10:49 market is not going to exist in 20
10:51 years, but that we're going to see more
10:53 volatility because we know that, hey,
10:55 these are strong companies that have big
10:57 profits, but investors are speculating a
10:59 lot. And when investors speculate, they
11:01 start to get greedy. And when they get
11:03 greedy, they start to invest money that
11:04 they can't afford to lose. So when
11:06 markets start to go down, who do you
11:08 think is the first to sell? It's the
11:09 people that got a little bit too greedy.
11:10 It's the people that start to get
11:11 burned. It's the people that have too
11:13 much debt in the game that shouldn't be
11:15 investing money. And when they start to
11:16 pull out, that can cause markets to go
11:19 down. And that can again create
11:20 investment opportunity. So if you're a
11:22 passive investor, you don't need to wait
11:25 on the sidelines. Always be buying. Buy
11:26 when markets are up and down. And it's
11:28 proven that if you do that for long
11:30 enough, you are going to win and build
11:32 wealth in this system. Option number
11:35 two, which I recommend everybody do some
11:36 of this as well. You don't have to do
11:38 this for your entire portfolio, but also
11:41 be partially an active investor, even if
11:43 it's just 20% of your investment
11:45 portfolio. And active investing is not
11:46 trading, but this is investing in
11:48 individual companies. Now, this takes
11:51 more work, more time, more risk, but it
11:53 also has more potential upside. And the
11:54 reason why I recommend everybody do at
11:56 least a little bit of active investing
11:59 is because, well, if you really want to
12:01 build more wealth, you need to have
12:03 better returns on your money. And you're
12:04 not going to get any higher returns
12:06 unless you're taking on at least a
12:08 little bit more risk. And this is where
12:09 if you are investing in your own
12:11 research and you're studying investments
12:13 instead of just copying what's on Reddit
12:15 and CNBC, but if you're actually
12:16 investing in your research and you're
12:18 learning where money is moving, it can
12:20 give you a better shot to beat the
12:22 markets. And this is where now you're
12:23 studying, well, where is money moving?
12:25 And now if you can get a slight edge on
12:28 the markets, it can help you grow your
12:30 portfolio by thousands of dollars more,
12:32 tens of thousands of dollars more,
12:33 hundreds of thousands of dollars more
12:35 over the course of your investing career
12:37 just because you got a little bit better
12:39 return on your money. So active
12:40 investing, you're investing in
12:41 individual companies. More work, more
12:45 time, more risk for more potential gain.
12:47 Passive investing, always be buying. And
12:49 this is less risk, but understand that
12:51 when markets go down, because they will
12:52 go down at some point, nobody knows
12:54 when. You use it as an opportunity to
12:55 buy even more. Again, even with active
12:57 investing, when markets go down, you
12:59 should be buying more of that then, too.
13:01 But the idea is understand this is what
13:04 creates bubbles, speculation, debt,
13:06 hype. When people get greedy and they
13:08 start buying things without knowing what
13:09 they're buying because they just hope
13:12 that it's going to keep going up. That's
13:13 what creates bubbles. Eventually, that
13:15 bubble's going to pop. When is it going
13:16 to happen? Well, we don't know. The
13:18 Federal Reserve Bank is cutting interest
13:20 rates, not raising interest rates.
13:22 Cutting interest rates doesn't generally
13:24 pop bubbles. That generally inflates
13:26 bubbles. The Federal Reserve Bank is
13:28 also ending has ended quantitative
13:31 tightening. That generally helps inflate
13:33 bubbles. So, we know that the Fed is
13:35 working to continue inflate markets.
13:37 Does that guarantee the markets are
13:39 going to keep going up in 2026? Well,
13:41 no, not necessarily. But we know that
13:43 they're working to keep inflating
13:46 markets. So instead of just waiting on
13:47 the sidelines, understand what's
13:49 happening and when markets go down
13:50 because there's a lot of things that can
13:52 trigger a market selloff. It could be a
13:54 bad earnings report. It could be a bad
13:56 job market. It could be something going
13:59 on with the money system. All of these
14:00 things could trigger a sell-off. And
14:03 when that happens, be ready to purchase
14:05 more because that creates an investment
14:07 opportunity for you to come in and buy
14:09 what most people are selling. And if you
14:12 can find a good investment on sale,
14:13 well, that allows you to grow your
14:14 wealth even faster because now you
14:16 bought a good investment at 30% off.
14:18 Again, if you want some more resources,
14:19 I have my free investing master class
14:21 for you down in the description. And if
14:23 you got value out of this video, the
14:24 best thank you is a referral. So, if you
14:26 could please share this video with a
14:27 friend, family member, colleague, or
14:29 fellow investor. That way, we can
14:30 continue to spread this type of
14:32 financial education. Thank you. The Fed
14:34 just announced that they're going to end
14:36 quantitative tightening come December
14:38 1st. In plain English, that means that
14:40 the Federal Reserve Bank wants to start
14:42 printing money and boosting markets
14:46 again as we go into 2026 as a way to
14:48 stimulate the economy. This economic
14:50 shift is going to affect everybody. It
