Kind: captions
Language: en
jasper is saying
there are more millionaires made in a
recession than any other time but my
question is how and what can the average
person do to take advantage of that
moment or since i know the punch line
really any moment and guys make sure
that you stay till the end because i'm
going to give you the eight things that
i have learned from amazing answers from
just breathe like you're about to hear
all right so let me start with the
simple answer and then we'll kind of
break it down into more complex answer
recessions create more millionaires than
any other time like you said because
when you have a recession a market crash
people get scared and then they sell
their assets
what's an asset stocks real estate
crypto gold it can be any type of
investment depending on what the crash
is what the recession is about
and that then creates a buying
opportunity for somebody who has access
to cash or capital and somebody who is
financially educated so if you have the
cash you're prepared and you have the
education of knowing what to buy but now
a crash creates a discount for you to
come in and buy an investment on sale
you can think of it like
black friday for investors you get to go
shopping at a discounted price because
now people are selling because they're
scared and what you want to look for now
is good investments that are being hurt
not because their investment is on the
verge of bankruptcy but because the
economy is pushing the price of good
investments down so that's kind of on a
in a nutshell to answer your question
what that means but now if we dive a
little bit deeper we go a little bit
higher level how do you do this what
does it mean
well
if you ask the majority of people or if
you just ask anybody is a recession a
good thing or a bad thing
most people are going to say it's a bad
thing but it's really relative depending
on which side of the equation that
you're on see it's bad for so many
people because recession means
i might lose my job
i might lose my home
i might lose my savings so it's bad in
that sense where if you're not prepared
you might not be able to
weather the storm and you might get
financially hurt we've seen this happen
for i mean forever now that anytime you
see a bubble burst the people who are
not financially educated the people who
are not prepared the people who don't
understand what's going on in the
economy get burned i remember the first
time it occurred to me i was like wait a
second if i don't lose my job
then a recession doesn't impact me now
that was before i had any money invested
so now i have a better understanding of
if you're counting on income or whatever
from your investments then it can still
be a dicey period but that was one of
those things like the a recession was a
boogeyman it was like something to be
afraid of i didn't really understand why
i was supposed to be afraid and so my
question is
why do people get scared in a recession
what is it that makes them sell i'll
give you a very specific thing so in
crypto
i haven't even though the price is
plummeted i haven't sold a single eath
not a single satoshi i've just been
holding
not tense about it
so why
do so many people get scared in a
recession so there's two reasons why
someone sells either it's a forceful
sale or it's a voluntary sale
the voluntary sale is a little bit
easier to understand so i'll explain
that first
so when the 2020 pandemic hit
we saw the stock market crash
now i think most of us understand crash
has a definition by the way
well yeah crash bear market is when you
see the market fall by 20 or more
now
the stock market when the economy shut
down in march of 2020 we saw the fastest
stock market crash in the history of
time now naturally people got scared
faster than
great depression whoa
people got scared
and i think most of us understand that
your 401k for example is a retirement
plan that you don't want to touch until
you are near retirement
what happened well we saw a massive
amount of people
sell out of their 401ks near the bottom
of the 2020 stock market crash because
they're convinced this is going to keep
going lower and it's like i got to get
out now you just see your portfolio in
the red you lose 10 20 30 40 50 you get
scared and you're like i want to save
whatever money that i can because you
don't understand what's going to happen
i mean if you look at it from the last
100 years chart you'll see that crashes
happen but then each time they happen
our economy is stronger rebounds the
market moves higher but we get this like
narrow vision we're looking at today
tomorrow the day after next week and now
we want to pull out as fast as we can to
save quote unquote save our money
and so you sell so this is a voluntary
sell where now you get scared you panic
people talk about how the world is
ending i mean the media is in the
business of some hype okay it's as
unfortunate as it is you have to
understand this things are typically
never as bad as they seem and things are
typically never as good as they make it
seem so it's typically somewhere in the
middle
and
so now when you know that you'll
understand that okay the stock market is
a liquid investment meaning you can buy
and sell a stock with the click of a
button i can buy and sell a share of a
company literally within two seconds
and so what does that mean well if i
start reading headlines i see the market
going down and start getting this
anxiety i started getting this fear i
might just want to sell i mean i can do
it in two buttons and if all my friends
talk about how they're selling how
they're losing money and the media keeps
talking about how the market's
collapsing the world is going to end
because the media is either going to say
the world is ending or nothing bad will
ever happen right it's typically one of
these two extremes because that's what
drives and i want to get to that that's
one of the things i'm going to push you
on later is like i've heard you talk
about this people lie a lot they do and
then they come out and admit yeah we
were lying but we had a reason but i
won't derail this now but like that kind
of stuff freaks me out and that's and
it's the reality of life and we'll talk
about that so now if you understand that
what does that do it manipulates
people's emotions emotions then drive
our actions and what are these actions
we sell at the bottom
and then we buy at the top because at
the top is the same thing people say oh
everyone's making money on the stock you
can't believe how much money these 17
year old kids from high school are
making you can't believe how much this
hedge fund made you can't believe how
much money whatever your neighbor made
and now you get jealous you get this
fomo you don't want to miss out you come
in and buy then at the bottom is the
opposite of motion so that's the
voluntary stealth because most of us
don't have the psychology which is a
part of the financial education of how
to manage our investments
the second is the forceful sale now the
simplest example that i can give you of
this will be if we backtrack look back
to the 2008 real estate crash
now if you bought a home
for four hundred thousand dollars
and you had a
adjustable rate mortgage which was very
common back then and it's getting common
again it is getting very common again
which is very bad news but they were
very common and
another thing that was very common back
then was a zero percent down payment but
let's assume we put a little bit of
money down because you were
you wanted to put some skin in the game
so you put a little bit of money down
you put three to five percent maybe ten
percent down
well what happened was a few years after
you bought the home interest rates went
up and now you realize really fast i
want to walk people through what an arm
is an adjustable rate mortgage i had one
if i had known how dicey talked about
would not have done it so an adjustable
rate mortgage you're basically betting
that the future is going to be better
than the current moment so you take
something with uh
a
a certain
interest rate and you're like okay i'm
going to be able to refinance either the
value of my home is going to go up or
interest rates are going to come down
whatever but i'm going to be able to
refinance my home so the story goes or
i'm going to be able to pay it off
whatever before that huge increase and
you are betting literally your house
that you're going to be able to either
make enough money to cover the increase
or that you'll be able to sell your
house at a price that you like or be
able to refinance it before that happens
exactly it's so dicey so people end up
getting in these insane situations that
tends to go along with when people are
getting pretty loose and fast about not
expecting as much money up front so now
you don't have any equity in the
property you get upside down meaning
that the house is worth less than you
owe so even if you sold it you're going
to be selling it for a loss and so now
you're in this really dark spot where
you can't sell it the interest rate just
jumped sometimes dramatically right and
so now you owe significantly more i mean
it could be 50 more a hundred percent
more
and you're just in a really big you
can't get out from under it unless you
just let them foreclose on you right or
you have to find a way to pay that money
and it is
speaking from experience i was so
convinced
that my life would be in a fundamentally
different place right than it was when i
took it so i put a five-year bet on
myself
and
dude it ended up working but oh my god
in the intervening five years i became
so much more financially literate that i
was like what was i doing like that was
the most dangerous thing i could have
possibly done it's a very dangerous
vehicle when it's given with no
financial education and the problem is
it's not given with any financial
education because see a banker so i'm
gonna just explain this for a second a
banker is in the business of making
money how do they make money by selling
you money so they're trying to sell you
as many loans as possible and now if
you're looking at this 400 000 home well
let's just assume for rough numbers that
the mortgage on this 400 000 home is 2
000 a month and you might see i'm kind
of stretching myself a little thin but i
want to own this home the banker doesn't
want you to not buy the home because if
you don't buy the home they don't get
paid so now what they can do is say well
how about you buy this four hundred
thousand dollar home you don't pay two
grand a month but instead you just pay
nine hundred dollars a month
off are you telling me i can buy this
four hundred thousand dollar home for
nine hundred dollars a month with
nothing down
yeah how about you have this free tv as
well because there was promotions back
then where they would give you a free tv
you literally put no money down now you
can buy this home
and so what was happening is people were
buying these types of homes with these
types of deals thinking they have this
amazing price 900 a month and it was
given with
zero
to extremely little financial education
because then what would happen is after
a number of years your interest rate
would readjust because you were given
this low teaser rate for the first few
years
and the pitch was
well don't worry about it home prices
always go up
so if home prices continue to go up or
not if when home prices go up in a few
years if you can't make the payments
don't worry about it just refinance out
or sell the home and then you have cash
in your pocket so what could go wrong
and this was the pitch now
again many people are not financially
educated we're not taught about money in
school so that was the first aspect the
second aspect was these loan officers
banks are incentivized very heavily to
sell as many mortgages as possible
because the more mortgages you can sell
in a month the bigger your bonuses
and so you had these two aspects
happening so now you bought this 400 000
home you pay 900 a month
and things are great then a few years go
by you get this letter in the mail
saying your payment's going to go from
900 a month to let's just say 2 000 a
month
now if you don't have the ability to pay
this extra 1100 a month you're going to
say
oh that's quite a bit oh well no big
deal let me call up my banker and tell
him the situation and he'll tell me what
my best options are because my banker is
a good financial advisor right
call up the banker say hey banker
i can't afford this 2000 a month what
are my options he says well you can
refinance or you can sell this is what
was happening now getting closer to 2008
and so you said okay well let's
get an appraisal or let's look at the
value of the home you you bought it at
400 000. now you maybe owe
380 000 over the first few years because
the first few years of your mortgage are
interest heavy meaning the majority of
your monthly payment is going towards
interest not paying down your balance
and so now they look at it and they say
so the value of your home is now 350 000
you owe 370 380 meaning you're under
water
so now if you owe 380 000 under 350 000
home no bank is going to want to
refinance because now you're underwater
they're not going to want to re-lend you
any more money otherwise you're going to
have to bring cash to the table
you can't sell the home because if you
sell your home for 350 000
you need to still pay the bank the other
380. so you need the 30 000 coming out
of your pocket and if you don't have 30
you can't sell so what's the next option
pull if you can't make the monthly
payment either you're going to walk away
or the bank is going to force you to
walk away through a foreclosure this is
now a forced sale
so now the bank comes in they take the
home from you and now the bank wants to
liquidate because they want to
not own properties they want to just
lend money that's their business they
don't want to own homes
and so that was what happened and so
many more homes hit the market you see
the same thing happened in the stock
market when you buy stocks on margin
and now what does that mean it means
you're using debt to buy stocks
and when you use debt to buy stocks
your lender your brokerage doesn't want
to see your portfolio fall by a certain
amount if it falls by a certain amount
they're going to ask you now to cover
meaning put some money in
and if you don't have this extra cash
the reserves to put more money in
because you thought your investment was
going to go up so you went all in
well now they're going to force you to
sell and that is now again a forced sale
so now markets are going down what
causes people to sell either voluntary
because you get panicky you get scared
you get worried or you think you have a
bad investment so you want to exit as
fast as possible or on the flip side
it's a forced sale where now
you used debt
and you were over leveraged and now
you're under water and now you're being
forced to sell so what does this do this
increases the supply of this asset now
again what is an asset stocks real
estate crypto it can be any asset
out there an investment
so now when you increase the supply of
this asset
well that can now bring the price of
things down because the price of
anything really whether it's an asset or
something else depends on supply and
demand when you have a lot of supply of
something with no demand or very little
demand the price of this thing is going
to fall because now all the sellers are
fighting against each other to get
somebody to buy it
on the flip side when you have a lot of
demand but no supply the price of this
is going to go up this has been the real
estate market for the last two years or
so we have had this massive demand of
people
wanting to buy homes
why well for one the pandemic changed
our workforce where now you can work
from home so people want a home with an
office in the home
second people want to move out of the
big cities because they're realizing if
i can work from home i don't got to pay
this 5 000 a month in manhattan i can go
live in a suburb and pay a fourth of
that and have a bigger home
and then third mortgage rates were the
lowest that we have ever seen
ever in the history of american modern
history we've never seen mortgage rates
this low so this created a massive
demand meaning people wanting to buy
homes so you had this flood of people
wanting to buy homes
while the supply of homes was extremely
low
so some people didn't want to sell
because they were worried about the
pandemic they didn't want people to come
in their homes who could have
potentially been sick
second builders couldn't build homes
because we had a labor shortage we had
and still are facing supply chain issues
so what does that mean you want to build
a home well do you remember there was a
period where there was a huge spike in
lumber costs builders could not get
access to certain materials certain
materials were backed up it was harder
to find labor to find workers to help
build the home and then on top of that
the cost kept going up because now
workers wanted more money the cost of
materials kept going up so it was this
big
dilemma in the building side so the
inventory of homes
was artificially low you could not build
more homes
so for the last you know 18 months or so
two years we saw the situation where
demand was through the roof literally
and supply was
very low
some of the lowest supply levels that
we've ever seen that pushed home prices
up at the fastest rates essentially ever
and now we're starting to see that slow
down where now demand is starting to go
down because mortgage rates have gone up
so significantly
people are looking at the higher prices
of homes saying i don't want to pay this
higher price so that is starting to flip
but this is where you know understanding
how supply and demand works and you now
as a financially educated person as an
investor what you want to be looking for
now
when you see market slowdowns a
recession a crash what you want to be
looking for is not the emotion but now
cutting through the noise cutting
through the media
but now looking for the actual financial
fundamental investments where you have a
good asset a good investment that's
being hurt by the economy that would now
you can come and buy it at a discounted
price
and that's what you want to be doing and
that's um i don't want to keep going on
this same topic but after the 2008 crash
happened
that's when i first started buying real
estate and i think we talked about this
before
i didn't understand what was going on um
i was 19 i had some cash saved up
because i was running some
entrepreneurial ventures
detroit which is kind of my home base
metro detroit ford gma chrysler were the
main drivers of our economy
gm and bankrupt chrysler went bankrupt
ford was on the verge of bankruptcy so
the michigan real estate market was hit
exceptionally hard
and real estate prices had fallen by 90
to 92 percent in some instances oh my
god and so that was where i was able to
come in i didn't know all this like i
look back and i understand this now but
i was 19 i had a little bit of cash
saved up and that was when i bought my
first
rental property
because i didn't have any real estate
mentors or guidance or people i didn't i
didn't know any real estate investors
my first real estate property was an
eight thousand dollar condo
i bought it out of foreclosure from the
bank
and
uh it
previous to me buying it it had sold for
a hundred and fifty thousand dollars
just a few years prior
and that was just the market where there
was nobody there to buy it people
thought that i was the crazy one the
dumb one for wanting to go and buy real
estate when the world was ending when
real estate was collapsing when nobody
wanted to own real estate everybody told
me that i had lost my mind
but that was the situation and you have
to understand the psychology i've said
this before i'm gonna say it again
history while it doesn't repeat itself
it does rhyme yeah i wanna talk about
that psychology and i want everybody
make sure you guys stay tuned to the end
i'm actually going to go through the
eight things that i've learned from jess
breit from
this is now our second time together so
i have i think a pretty good lock on
some of the core things you talk about
i'm gonna give you guys those eight
things at the end so hang tight but i
want to talk about the psychology this
is where i think people really get
themselves in trouble i've talked about
this in entrepreneurship a lot
the entrepreneurs that do well are the
ones that can self-soothe and what i
mean by that is so in the context of the
economy the price starts dropping if you
didn't anticipate that going into it
like when i bought into cryptocurrency i
was like this is a highly volatile asset
so
i cannot be panicking when the price
starts dropping i have to know that
that's a part of this right and michael
saylor had said look when you're dealing
with bitcoin he was talking specifically
any time frame less than four years is
just noise
so i was like word anything less than
four years is just noise so when it
started dropping like a rock i was like
has it been four years no it has not so
then i shouldn't be freaking out yeah
and
the reason that i've had success in
business is i can self-soothe very well
so if i fail up i can self soothe i
don't lose a lot of time worrying about
the fact that i made a mistake or
whatever
and the same is true now for me in the
financial world now had i been taking
the kinds of
risks i guess i'm i'm
relatively risk averse meaning i don't
do anything on debt and i don't um
invest more than i can afford to lose
so
that's always been my operating
principle but
you you hear the advice
buy low sell high and it sounds like a
joke it sounds like somebody's toying
with you they're trying to troll you but
that really is the best advice that you
can offer somebody but what people don't
understand is it's hard as hell to do
because
in moments of euphoria which i had never
paid attention i've lived through them
but i wasn't paying attention to the
market i never lived through a moment of
euphoria we've just come out of that so
i'd say we're about nine months out of
euphoria right now and i'd never gone
through that so i didn't know what it
felt like i didn't know what it looked
like and i remember and i won't rat the
person out that said this but this is a
big influencer and they were like maybe
the economy now has gotten to the point
where it's so global it's so
interconnected that there could never be
a recession again and i remember when he
said i was like oh
ah
that doesn't sound right i'm not sure
that that's how this time is different
yeah exactly and so there was everybody
just was like man this time is different
and so i was like i don't know about
that so
i was like okay i need to make sure that
i am
detaching my emotion
i'm realizing this why i was obsessed
with ray dalio i'm realizing that
history is going to rhyme
that this time isn't going to be
different this is going to be another
one of those as ray says
and so what does that look like what's
going to happen when this goes down
do i buy more am i trying to sell
and
watching everybody
one that people buy and leverage
terrifies me and man like you've really
got to know what you're doing like if it
isn't your full-time job my ignorant
uninformed advice is to not use debt
because you can get into a forced
liquidation that's just terrifying in
fact remind me i want to talk about
covenants i'm going to write that down
uh
because that is i don't know if if they
use the same language in
investing but that's what you talk about
in business or covenants anyway we'll
get to that in a minute what is up my
friend tom bilyeu here and i have a big
question to ask you how would you rate
your level of personal discipline on a
scale of one to ten if your answer is
anything less than a 10 i've got
something cool for you and let me tell
you right now discipline by its very
nature means compelling yourself to do
difficult things that are stressful
boring which is what kills most people
or possibly scary or even painful now
here is the thing achieving huge goals
and stretching to reach your potential
requires you to do those challenging
stressful things and to stick with them
even when it gets boring and it will get
boring building your levels of personal
discipline is not easy but let me tell
you it pays off in fact i will tell you
you're never going to achieve anything
meaningful unless you develop discipline
all right i've just released a class
from impact theory university called how
to build ironclad discipline that
teaches you the process of building
yourself up in this area so that you can
push yourself to do the hard things that
greatness is going to require of you
right click the link on the screen
register for this class right now and
let's get to work i will see you inside
this workshop from impact theory
university until then my friends be
legendary peace out if people can go all
right
this is volatile stock market is
volatile crypto's volatile housing
markets can even be volatile i'm not
gonna panic in a down moment i'm gonna
set myself up or i'm not investing more
than i can afford to lose
i'm not doing this on debt
you have to
keep your income going so whatever it is
whether it's a job or whatever you have
to be very thoughtful about that
but
setting yourself up well
knowing that there's going to be a
downturn that it's about time in the
market instead of time in the market
right
and then you can just
ride this out exactly
and i think for the majority people
the vast vast majority of people that is
the best advice that you can give them
don't invest with debt
don't invest more that you can lose
and i'm gonna take it one step further
because i think for
90 percent of people out there regular
retail traders investors you don't need
to be buying individual companies just
put your money into a low-cost etf into
a low-cost index fund and that's it
fox what are those though and so just
breathe most people don't know what that
means
so let's let's break that down so an etf
is an exchange traded fund
and it is literally
a group of companies a basket of stocks
so instead of you going out and
investing in let's just say mcdonald's
the corporation
and now all your eggs are in mcdonald's
meaning all of your money is in the
investment in mcdonald's so if
mcdonald's goes up you can make a lot of
money if we dumps goes down now you're
gonna be panicking because your whole
portfolio is down
well the issue is you have the most
upside but also the most risk because if
the executives at mcdonald's run their
company into the ground and they go
bankrupt their whole investment's gone
now if you invest into something like an
etf or an index fund which are very
similar to each other now you have a
group of companies where now it might be
mcdonald's and 499 other companies so
now what happens you lower your risk
your lower summary upside but you also
lower some of your downside because now
if you run through that same scenario
where the mcdonald's executives run the
corporation into the ground and they go
bankrupt well you have 499 other
companies in the portfolio so you're
okay
and so then what can happen in a
low-cost etf or an index fund is they
have computers and this is automated
where they will kick out mcdonald's
because now they're no longer fits
within this 500 companies and then
they'll put in another company to take
the place at mcdonald's so now it's
passive on your end because if you're
not willing to put in the work to do
that active investing to do that sort of
fundamental analysis meaning listen to
the earnings calls study the revenue
study the profits study what the
corporation is doing if you don't care
about doing that if you don't want to do
that and if you're not willing to do
that
don't invest in individual companies
because now
you're taking on all the risk hoping for
some upside versus you can mitigate a
lot of that risk by just investing in
etfs or index funds and you can do this
right off of really any stock brokerage
app out there
and now you can buy them now how do you
buy them well two strategies passively
or actively
passively which is a great strategy is
now ideally every week or any time you
get paid you put a little bit of money
automatically into this etf system do
you use for that so i use a platform
called m1 finance there's m1 finance m1
finance there's tons of brokerages out
there you can find whatever one you want
where now it is completely passive money
is automatically pulled out of my
checking account on wednesdays you pick
the day it doesn't matter and it's
automatically invested in two dollar
cost average dollar cost averaging into
my portfolio etf so i have a number of
different etfs in there it happens every
week whether the market's up or the
market's down and i don't touch it it
just does its thing
the active side would be now
you're looking for a good price point
and this is where it gets a little bit
more advanced where if you're willing to
do the research you know you could you
can pick etfs or index funds where if
you see a big crash you see prices go
down you can put more money in
or now you can start looking for good
companies that you believe are
undervalued but again this now gets a
little bit more advanced where you have
to
yeah the average person they're not
financially literate would you rather if
they had a thousand dollars would you
rather they play blackjack or try to
actively trade that money play blackjack
or actively trade that money don't trade
i think trading unless you want to do it
to learn i trade it i'll give you my
personal experience i know you would
trade because you know what you're doing
well i wouldn't trade i wouldn't even
you wouldn't trade would you treat your
only options blackjack active trading so
explain that for you i'm not a casino
person so blackjack is the one where you
go to 21. oh you're going to lose either
way or you're going to lose either way
the reason i bring this up is i really
think that the average person would be
better off taking their thousand dollars
to vegas and playing blackjack because
it will be fun
if you try to actively trade you're
going to lose your money now
is that a hundred percent of the time no
of course not but ray dalio for people
that don't know runs the largest hedge
fund in the world when he explains this
i'm like oh my god i'm never going to
try to active trade he said you're going
up against people like me i spend
whatever 200 million dollars a year on
research yeah and i have ai
which is making trades in milliseconds
right we know how fast the fiber optic
cable is to make sure that our trades go
through slightly faster than the other
person which can be the difference
between you know a percentage point
which could be millions of dollars he
was like you're going to lose
and he was like it's hard for us and
we've got whatever 1500 employees like i
said ai that they've been building for
the last 25 years fiber optic cable
measuring things in milliseconds he's
like
the odds of you finding something that
we haven't already traded on is
basically zero yeah every person that i
know this is a very small sample size
i'm well aware of that every person that
i know has lost money on a long enough
timeline actively trading yeah the only
people that make money are people that
are that and i will use my language this
is how i think about myself i am too
stupid to beat the market i'm too stupid
to be ray dalio that's for sure and
radialis entire team and ai and all that
so
actively trading is off the table just
because i know it would be like
me trying to play uh professional soccer
right i'm going to get my ass handed to
me my by messi the the difference
between me as a footballer yeah and
messi is the same as me as an active
trader and radalia right the gap is so
catastrophically large that at least
playing blackjack i would have a good
time and i think the difference is now
differentiating active trading versus
active investing because trading i tried
trading one summer in college and i
spent
every day staring at charts
candles which are these little ways that
you can make a stock chart and
you get glued to the screen you glue to
the emotion
and it is very difficult yeah watching
candles is emotionally yeah
and so i stopped it because i realized i
was never going to make any real money
doing this
active investing what i mean by that now
is you're looking at companies
and when you see this company fall
because the whole world is getting
scared the whole market is tanking
well this is an opportunity for you to
come in buy a great company at a
discounted price and then you just hold
on to it now would you do that at the
company level or at the etf index now
again who is the person for me
i would do it at the company level for
the average person do it at the etf
level
because again you have to be willing to
put in the work to research companies
keep up with the earnings statements if
you want to buy and hold for the long
term i am doing active trading right now
not right now
but extra investing active investing i
am not actively investing my money into
the market i am passively investing the
reason why for one active investing
means i'm putting my money into the
market when i see a great buying point
second thing is
it's now
going to interest my personal life what
is the best use for my money right
investment money in five places my own
business i put my money into real estate
into stocks into crypto into physical
gold in this order
right now i see the most opportunity in
my own business market briefs and so
instead of actively putting my money
into the finance now
my favorite thing you read every morning
it's a great newsletter right so it's
where we uh break down what's happening
in the financial markets into a fun
ready easy to read email but for me i
see the opportunity there it is the
biggest purpose for me bet on yourself
and the most excitement for me so
instead of me putting my money into the
market instead of me putting my money
into real estate which i love doing i've
been stopping these active investments
and putting more money back into market
briefs that we can build the company
build the infrastructure build it into
something bigger and so now obviously i
knew the punch line which is why i asked
the question but i want people to
understand that you make a living
researching this stuff knowing about it
and even you
aren't doing the active investing you're
doing passive for sure very wise set
that up
but
for the average person
the average person the odds that they
will
do better by trying to go in and saying
oh i know where this is going well
enough to know that now is a good time
to buy yeah mcdonald's whatever they're
they're going to have heard headlines
about tesla and things like that and and
i'm not saying that there aren't moments
that present themselves but like if you
watch wall street bets do you watch wall
street bats i don't read it at all it's
scary you get these kids committing
suicide because they don't understand
like um
[Music]
they'll do something where i forget if
it's calls or puts or whatever i i am so
not good at this i want people to be i
know my limits but whatever it is where
there's an unlimited downside yeah and
so they end up owing like 75 000
all of a sudden and they're like uh what
do i do and so now they're just
absolutely devastated yeah
so anyway so let's put trading out the
window people
careful don't be trading don't trade
your money and now when you're investing
in money don't invest with debt don't
invest more than you i want to go back
to recession yeah
i think this is a huge moment of
opportunity even though i'm warning
people as vociferously as i can about
trying to beat ray dalio
i do think that
understanding that if you're playing
your cards right and you're not
overextended and you've done what you're
talking about you've got your five
buckets of investment we're going to get
into remember to hang till the end
because i'm going to give you the eight
things that josh bree teaches a lot
but if they're doing it well
this is black friday for assets
and if people think of it that way like
don't get yourself in trouble don't be
overextended don't have debt uh but
if you think of this as black friday
there's huge opportunities and this
really is a moment where i want people
to pay attention and take advantage of
this moment i am so hungry for the
average person to get
educated on this stuff yeah because
i am
i have lived the american dream
and i mean not the like it's your house
and all that but but that you can change
classes i grew up lower middle class and
now i'm wealthy and so i'm like no no
this is a set of ideas if you get your
head around the right ideas like you can
really win yeah but you have to simplify
simplify simplify
and
because of the internet because of meme
culture people get so caught up in the
emotion it's the one thing you can't do
right and you have to be like stone cold
logical you have to get that emotion out
and it's hard because everywhere you
look on the internet youtube included
there's a lot of emotion now i'm gonna
i'm gonna be completely blunt completely
honest here because i'm gonna talk about
how the youtube algorithm works because
i think we've talked about this before
i see this on my own platform where
sometimes
youtube is going to promote certain
video titles over the other so let's
talk about the market going down if i
say you one youtube pedal is the market
goes down three percent here's what you
need to know
be prepared for market crash what's
going to get more clicks be prepared for
be prepared for market crash now i hate
that because i hate these titles now
you're going to say just breathe
but you and every major youtuber has
titles that sound like this oh someone
got to this video through a clickbait
title someone got through this right and
and that's and so now let's let's
dissect this because i
have a team
and for a very long time they kept
saying just please make these types of
titles and i refused
what happened
views went down like this now
i had a heart to heart with a couple
people on my team where they're like
just pretty listen
your videos
are i'm saying what they said i don't
want to sound like a super narcissist
but they're like your videos have real
financial education that people need to
hear and it's better than what a lot of
people are putting out i was like okay
they're like if this title is what it
takes to get people to learn what you're
saying within the video why not make it
and so it was one of those things where
i was like oh my god i hate this but
it's the only way to provide that
financial education to get people to
click it because if i need to click that
video and now i can provide you real
education without saying oh my god i
need to panic and sell no understand the
opportunities be calm look for the
options
that's my goal so it's one of those
things where i see it because i'm in it
and you know i'm going to talk about
marketplace for another second because
that's another driving reason for me
wanting to create market briefs because
the internet is full of sensationalism
especially in the titles because they
need to get you to click
that's how
just the internet works it's the reality
okay i mean it is what it is i have
fought it for a long time
i hate it but it's the reality now the
reason why i like market briefs and the
reason why i'm so passionate about it is
because we can completely separate
ourselves from that because now we are
one email
we are
you know you no one is coming into inbox
every day
it doesn't matter what the title is
because it's in the email once you open
the email everything is right there and
so now we can give you the actual news
without any of that you know that
hypiness
and so that's the way you know you and i
operate but there's a lot of people now
that take it one step further that even
the news then the actual content of the
news becomes just super crazy
sensationless it doesn't make any sense
that's sometimes
an outright lie
which then takes it one step further
where now you have to be able to dissect
the crap
dislike the good because the reality is
if it doesn't have a quote-unquote
clickbaity title you're never going to
see it it's never even going to cross
your
phone your screen it it will be hidden
into the depths of the internet
so now if you see it and has a
clickbaity title the question is what's
inside that content and that's where you
have to be able to dissect and dig a
little bit deeper
understand if this is good and this is
not and the general rule of thumb is
that
generally when times are good they're
typically not as good as the media makes
it seem and when times are bad it's
typically not as bad as the media makes
it seem it's usually somewhere in the
middle and this is where now you have to
really be able to understand and do that
financial education for yourself now as
an investor but the best thing is you
know just
just keep investing your money looking
for those opportunities but then also be
able to understand what's happening
which is
taking some of your
emotions out of the equation and so this
is now kind of you know building that
financial education where it's difficult
to do but it's so important especially
in this day this age where the internet
is our means of education
where
accessibility is so much more where
anybody can invest and put their money
into the markets anybody has access to
these tools like
one thing that i want to mention is when
we talk about building wealth
rather in a recession not a recession
the majority of people i think assume
that
it's a lack of tool set that's stopping
them from getting to where they want to
go when in reality for the majority
people it's a lack of mindset
most of us have access to the tool set
it's just our mindset that's lacking you
don't need a ton of money what's the
mindset problem the mindset is one
believing i don't have enough money i
don't have access enough tools i don't
have access to enough things to go and
do it that if i want to go and build a
business i need this this this and this
i need ten thousand dollars i need a
hundred thousand dollars to go out and
do that i need to have this type of
degree i need to have this type of
parent i need to have access to these
types of people in order to go and build
a successful business if i want to go
invest my money i need ten thousand
dollars before i can invest for it to be
worthwhile why would i want to start
investing with ten dollars what is that
going to do when in reality these small
investments
do build up if you are 21 years old
today and you start by investing just a
hundred dollars a month
which is just over three dollars a day
and you do this consistently until you
retire until you're 65 years old 66
years old and you can get an average 10
return on your money that doesn't mean
it's a 10 return every single year it's
an average 10 return
over the course of investment which is
the average stock market return
you will retire a millionaire on the 100
investment assuming you never increase
the amount of money investing and we're
talking about less than four dollars a
day
that's a hundred dollars a month not a
one-time hundred dollars hundred dollars
a month yeah yeah less than four dollars
a day you put a hundred dollars a month
for the rest of years and so even if you
get a raise and you never put another
penny into your investments
you will be able to retire a millionaire
on the four dollars a day that you're
putting aside
yeah see that's why i want people to get
stoked on that like look there is an
entrepreneurial side and we can talk
about that later that's exciting and
high risk and pour yourself into it
you'll pr you will get kicked in the
face over and over and over
but
if you
care about the thing that you're doing
and you have a strong enough why even
losing can be incredibly fulfilling
but that's a separate bucket when it
comes to
investing and thinking about retirement
it is a totally different ball game
right that comes it really does boil
down to buy low and sell high
now how do you get to that point you can
do what you just talked about which is
you put a little bit of money in doing
dollar cost averaging and you may be
dollar cost averaging simply because you
don't have the capital saved up to do it
any other way right uh by the way
capital's just a fancy word for money so
you don't have the money saved up to do
it any other way so you're just every
paycheck it's pulling out you say you do
it on wednesdays whatever just at some
increment it's pulling some amount of
money which can be very small to your
point 100 a month
but doing it consistently and not
selling in moments where everybody else
is freaking out and then like as
advanced as you need to get is
if we're in a downturn and you're doing
your etf or your index
and you know that we're in the middle of
a difficult time maybe instead of a
hundred dollars that month it's 150 or
200 right it's you're not going crazy
you're still just dollar cost averaging
but now you know that when it's black
friday for assets that you're going to
spend a little bit more just because you
know it's going to go
farther exactly but it isn't sexy man
and this is why like
having now witnessed euphoria i'm like
people act a fool
and i had the impulse to act a fool i
was like no no go more you're so smart
like you get this this and i was like
i know better than that yeah i am a fool
the only thing i can hope for is that by
staying
rational and calm and not overextending
that i can stay in this long enough to
sort of wash out my ignorance just just
through time exactly the walls i think
is wall street journal that used to do
this thing back in the day where they
used to bet against a monkey where a
monkey would throw darts at a stock i
love this
and they would uh compare what the
monkey picked against traders it really
happened this really happened look it up
on google
and so the monkey obviously had no uh
financial education it just literally
threw dots at these companies that would
hold on to it but i think it was a ten
year span or it was a long-term thing
compared against these massive traders
guess who won not the traders the monkey
oh my god and it just shows we turn that
into a t-shirt that feels like a t-shirt
this is so
hilarious it's really
really important for people to
understand a monkey
outperformed professional traders
professional traders i'm gonna have to
look this up look at that it's way too
important this is the reality where it's
it's just the value of owning an
investment for the long term
and it
like you said that short richness is
loud it's flashy everyone talks about oh
my god i doubled my money in this meme
stock oh my god i made so much money
here it's loud and splashy but that's
also fleeting it's the first time you
lose money
where it's like yeah you gained all that
money but then you lost it exactly but
that other the real wealth
real true sustainable wealth is built in
silence it's quite because it just keeps
happening in slow increments over time
and now you start to build this you know
there's the snowball analogy where from
michigan right we have snow there you
start by building a small snowball like
this you put on the ground and you start
rolling it in the beginning you got to
roll it a lot because you have this much
surface area to pick up as much snow as
you can as it gets bigger it grows
faster because now you have all the
surface area that could pick up more
snow so you roll it and it picks up more
snow and gets faster and bigger and
faster and bigger and faster and bigger
and before you know it now you can have
a massive pile of snow but the initial
one is the hardest because you're
starting with a hundred dollars you're
like what's a hundred dollars going to
do but you can stay consistent with a
hundred dollars and if you make more
money you keep putting more money in and
you just stay consistent letting the
hundred dollars grow then you put in
another hundred dollars now the first
hundred dollars is growing and then you
add another hundred dollars and then you
add in another hundred dollars now the
first hundred dollar has grown hopefully
the second dollar dollar has grown
hopefully now you add another hundred
dollars to grow and you just keep doing
that month after month after month after
month
now you're really starting to build the
snowball that's growing and growing and
if you look at this not month after
month but year over year
that's when you really start to see the
returns but the problem is who wants to
wait that long nobody wants to wait 10
years 20 years 30 years because we're
thinking about when can i bomb a
lamborghini tomorrow how can i bomb a
lamborghini next year how can i have the
nice stuff now
and this then becomes a different
question we're turning to these
investment long-term investment vehicles
to make us rich next month as opposed to
actually doing what it's supposed to do
which is make us rich over the long term
we're trying to do it the wrong way so
now we got to flip the question if these
types of investments are there to make
us rich for the long term how can we
make more money today and so this is
where people turn to things like trading
oh i can flip these stocks i can flip
these houses i can do whatever to try to
make a lot of money right now and for
some it might work in the short term
but it is very difficult over the long
term and this goes back to what you're
saying regarding something like
entrepreneurship this is more of an
income issue because now we're trying to
create an income through trading now if
you are a full-time trader you have the
systems you have the tools this is all
you do
maybe it works for you but for the vast
majority of regular people it is not
going to work
and this is where now s