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