In this video, I'm going to break down the spiraling over in the Middle East and how that is relating to what the big money is doing with the market and with their money behind the scenes. You are going to be absolutely shocked by the end of this video and I highly recommend that you watch the whole thing because if you don't you're not going to be informed. you're not going to know how to protect yourself and you're not going to know ideas to potentially make some money off this current market environment. The Big Money is using this environment as an excuse to make oodles and oodles of profits.

and if you are not paying ATT mention you are going to be the one that they're profiting off of. Okay, so the battle over in the Middle East is escalating rapidly and the overall conflict is being fought on many different fronts. Us fighter jets are striking Iran link sites in Syria After attacks on US troops, the Pentagon stated that 900 troops are deploying or have been deployed to the Middle East from the continental. United States You have the Iranian foreign minister speaking in an emergency conference warning that the US will not be spared if war in Gaza continues and as of a few minutes ago saying that Israel has has crossed a red line.

Meanwhile, Israel says it's officially in its second stage of war against Tamas with the stated goal of destroying the group's armed Wing in government and returning hostages held in Gaza home to Israel with Netanyahu firmly warning that this war is going to be long and how are markets reacting so far well, oil hedging signified by Ovx is setting up to yet another new cycle High Vix is setting up to a new cycle High itself and markets overall. broad market indices are selling off and consolid dating week after week after week. Now what you have to understand right now is that if you're somebody with big money, you're somebody with power and connections on Wall Street or any major Hub in the global economy. You've been hearing from your well-connected and Powerful friends the last 3 weeks that you're about to see a massive massive escalation and if you have your eyes closed, you're going to get screwed.

So you've been reallocating funds and we've been talking about this since the beginning of this crisis. They were reallocating. Then they've continued reallocating and now what they were thinking was going to happened. What they were warned about was going to happen is indeed happening.

The Gaza situation every day just gets worse and worse and there's only so much worse this can get until you start getting more and more countries directly involved. Now here's the thing to remember: this conflict is already one of the deadliest in recent history. On the Israel side, you have some 1,45 killed, some 5,431 injured. On the Gaza side, you have some 7,703 killed and 19734 injured in the West Bank some 109 killed and 1900 injured.

And this is just from October 7th to OCT October 28th. That's just a few weeks really. now. if you compare this to the casualties in Ukraine over a much longer time Horizon Well from February 24th, the original beginning of that Invasion to 18 months later in September 10th, 2023, you're at some 10,000 killed, some 19,000 injured.

So Within a few weeks, this Middle East conflict is already close to rivaling the Ukraine conflict in terms of sheer death and injuries. and as more and more civilians get lost in these battles, well, you're going to see more and more countries put pressure on one side or the other, and more and more Rifts are going to grow. And now that Israel is in what it's calling the second stage of the war and its ground Invasion and its intent to destroy the armed wing and government. while the individuals in that armed wing and government are going to be largely not just fighting, but also amongst the civilians.

and we know that a lot of the headquarters of Hamas are located under key areas such as hospitals such as schools and other areas and shelters where a lot of civilians are. which makes it even more complicated. And so as Israel continues its bombing campaign and continues to Launch ground Invasion, Well, you're going to see those numbers climb dramatically and as Israel continues the retaliation against Gaza, Well, Gaza and other players that are sympathetic to Gaza are going to go and attack Israel and you're going to see casualties continue to climb on both sides of this conflict and this time around, you're getting a lot of other countries interested in this conflict, which is likely going to lead to a much much much bigger escalation and a much much more drawn out War. Even in terms of just rhetoric that we're seeing from global leaders right now, you're getting a lot of riffs for for example, Turkey, who has the second biggest army in NATO while their president went and held a pro Palestinian rally and called Israel an occupier and a war criminal.

He even went so far showing solidarity with Hamas by calling them the Mujahadin which means Islamic Fighters against non-muslim forces fighting for their religion. He then went on to say that Western powers are the culprit behind the deaths unfolding in Gaza. But besides Turkey, many, many, many other countries are using this as an opportunity to project a weakened West and more specifically, a weakened United States. For example, there was a vote just recently on a UN resolution for a ceasefire within Gaza Israel and the United States were pushing for the ceasefire resolution to be rejected.

However, this is what happened. When it came down to a vote, the vote had 120 in favor of a ceasefire, 14 against the ceasefire and 45 countries abstaining. The 14 against the ceasefire included the United States Israel and a host of Us-friendly Pacific Islands like Fiji Tonga and such. but you had a lot of close Ali countries like the UK, France and Spain refusing to vote with the US which again, what does that do well? It isolates the US on a global stage and makes them look a lot more weak.

Makes us look a lot more weak, which is exactly what players in Russia China Iran want to see. Now from Israel's perspective, it seems like they're looking at this war as hey, Hamas came and ruthlessly killed and did other horrific acts to some 1,400 plus Israelis on October 7th including women and children. So they're thinking, okay, well, we have to go in there and completely destroy these Hamas so they can't do it ever again. However, as the death toll continues to climb within Gaza Well, you're getting a lot of alternating views on the global stage that are like well, you have some 2 million civilians living in Gaza and many, many, many more are going to have to be killed for Israel to successfully destroy Hamas Hamas Again, hides behind Hospital School Shelters hides all in different tunnels that are hard to track throughout the entire region and so the question is now becoming on the global stage.

Well, at what point is this becoming counterproductive and just a horrible, horrible loss of Civilian lives? And perhaps you end up actually going and radicalizing a Next Generation group of Hamas because of what all of the kids in that region are seeing happen right now. A Lot of people are looking at this death toll right now and they're very, very squeamish. They're thinking: hm: I Don't see any way that any side wins here, but but I do see a way that more and more countries start getting swept into this conflict and more and more lives get lost. And it's honestly, quite frankly, absolutely horrifying.

And so right now in meetings and lunches and dinners in London in New York in Hong Kong Everywhere Where people have money. Well, they're looking at this conflict and they're trying to figure out how to move their money around to best position themselves for the next year or two. And obviously, you're already starting to see a lot of hedging against future volatility with vix going up and you're seeing oil, future oil contracts spreading. But there's going to be a few more industries that you're going to want to watch very carefully and you're going to want to look at history.

But I'm going to go into that a few minutes from now. But before we discuss that I Want to dig a little bit deeper into how the US might be drawn into this war by Iran from NPR Us fighter jets launched air strike early Friday on two locations in Eastern Syria linked to Iran's revolutionary Guard Corpse The Pentagon said in retaliation for a slew of drone and missile attacks against Us bases and Personnel in the region that began early last week. So what you have to understand is that Iran sponsors numerous militant groups throughout the region in Lebanon in Yemen Iraq and of course Gaza And if you want to know how far this is going to escalate and how the Us could be drawn into this, well, you have to be watching what Iran is saying. I'm about to read you what their foreign minister said to NPR when asked about Rockets fired into Israel by militia groups in Lebanon two weeks ago I Visited the region and I met with some leaders of the countries of my region and with the leaders of the resistance in Lebanon and also the Palestinian groups.

What? I gathered from the plans that they have. they have their finger on the trigger. So again, you have a whole region that is just a ticking Time Bomb waiting for somebody to escalate in a way that one side just does not see acceptable and just really escalates Now Us: National Security Adviser: Jake Sullivan Said this today Quote: We are Vigilant because we are seeing elevated threats against our forces throughout the region and an elevated risk of this conflict spreading to other parts of the region. We are doing everything in our power to deter and prevent.

That point is folks. Right now, it's a dire situation and you need to be on high alert. All sides are on high alert right now waiting to see if somebody bait somebody else into the next stage of this war. Okay, let's talk the markets what we're seeing from: Big Money And How that is moving things.

So when a stock has a beat on earnings this year, the stock will go up maybe 0.7% Maybe 0.2% maybe 0.3% on average. But when a stock misses on earnings, it'll get beat down 2 or 3% That means you're in a market once again that doesn't want to reward good earnings, but really wants to punish, wants to beat down bad bad earnings. What this tells me is that you're in a market that is more riskof and conservative than it is risk on. Obviously, it doesn't take a genius and Albert Einstein to come to that conclusion.

but that's the market that we're in right now. People are much more trigger happy to sell on bad news than they are Trigger Happy To buy on good news And that's just what it is. and the reason is very, very clear. I Mean there's very, very little Equity Risk premium.

For starters, if you're buying stocks at this point in 2023, you are getting some of the worst premium for your money in 20 years. You can buy risk-free treasuries today and not stress at all and likely still get the same if not a better return. And that is what a lot of big money managers are thinking. And when you're considering higher for longer rates and everything that is going on on a global stage, well, you're in this situation where a lot of people are like, you know what? I don't really want anything to do with the stock market right now And that's not just me saying that or the chart saying that.

that's also the underlying positioning. Your short flow is greatly outpacing and has long been outpacing your long flow with net flows creeping deep and deep and deeper into the negative you look. B Sector: In just the last 5 to 20 days, you're seeing adding of materials, utilities Healthcare and selling of almost everything else. So what exactly does that tell us? Well, it tells us that markets expect the inflation and Safe Haven trade to come back.

And when do those come back? When do those? Trend While during a War during a crisis during a massive global conflict. So again, what does history say? How does history suggest playing this well? I Was looking at this chart from Markets in a minute of the investment themes over the last 50 60 plus years and during certain periods of time you had organic growth in new technology. Sectors like Fang. Over the 2010s were largely a peaceful decade.

you had emerging markets and commodity growth. Over the 2000s which were periods of war and recession. You have the 1990s again a more relatively peaceful at least from the US Point period. being with tech and the NASDAQ you had massive Innovation and growth there, then the 1980s Japanese booms and other Asian market developments and then the 1970s which was a period similar to what we have today.

You had gold and oil prices skyrocketing and an overall inflation trade just really, really taken off. So if history repeats itself and the theme for the next 5 10 years is war and inflation and further geopolitical battles, well you would expect the trade then to also mimic that of the 2000s and 1970s specifically and push up things like gold and oil and other Commodities And that's why I would say it's very very important to be watching gold ETFs leveraged gold ETFs leveraged oil ETFs as well as of course implied volatility ETFs which are going to be hedging against the downfall of everything else when the prices of gold Commodities and materials and basic living items start skyrocketing. Anyways, folks, that is it for today. Buckle up because things could get real nasty real quickly.