Okay, so we're at a point where almost every major indices is back at all-time highs. The S P 500 has been making new highs week after week, the Dow has been making new highs week after week, The Nasdaq has come back very quickly and nicely, and is within spinning distance of all-time highs itself. And we also have a pretty damn nice bounce in the Russell 2000 small Caps. Some of the more high beta stocks in the market in Innovative Tech are still yet to recover, but overall, the market's in a pretty damn clear path right now.

so I want to explain to you why I believe that something big is about to happen. In fact, I see a tsunami coming to the stock market. A tsunami that is going to lift many boats but also sink some others. I want to make sure that you're on the right boats, folks.

Give me a chance to explain to you what's going on in this video, watch the video all the way through and I can all but promise you're going to be satisfied and feel like you learned a lot. And the only thing that I ask in return for all of this is that you hit that ravishing like button And also don't forget to subscribe. So very soon you're going to see many major S P 500 companies and Dow companies reporting really strong earnings quarter over quarter and great guidance as people go out. they spend more money and people compare these quarters to other quarters where we were deep in the pandemic, which in many cases, the stock market has largely factored in already.

Then you're going to see the tech stocks reporting a little less strong growth rates overall, but still fairly strong numbers and strong guidance for the upcoming years. That's also what tech companies have been factoring in in terms of their share prices, slightly less performance in terms of actual earnings and guidance. And then of course, you're going to see inflation have some short-term blips during the summer and fall, causing bond yields to go up, causing more interest rate scares, perhaps spooking the market again, but overall, this is starting to become more and more accepted. In fact, I'd argue that a lot of these inflation concerns have already been factored into the stock market to a large extent.

Then you're going to continue to see some concentrated losses in certain sectors and stocks that are highly leveraged as some funds decide to get rid of some of their margin as interest rates rise and as other funds are forced to sell out like we saw with Vehicle Discovery. However, this is where it gets interesting. These are all effects of the economy that we're in right now, but the real tsunami is, of course, inflation. now.

Inflation is a tricky beast. People right now are associating inflation with being a bad thing for the stock market, but the only reason for that is because we've had tons of margin in the stock market. If you are a fund leveraging huge multi-month bets on tech stocks or on Viacom or Discovery, while any inflation and threat of interest rate increases is a huge threat to you, especially on a systematic level like we saw in February and March. But that's a short-term concern because over the long term inflation is good for asset prices.

Why? Because it creates an even stronger incentive to get into them. Think about it this way: More than one-fifth of Us dollars were created out of thin air in the last year alone. and at the same time, a ton of cash is on the sidelines ready to throw itself into the economy. So what is going to happen when all this money pours in? Well, each dollar is going to be worth less if your dollars are worth less.

That means that if you want to preserve the buying power of each dollar, you can't keep it in dollars, You have to convert it into something. and it has to be something that beats the rate of return of inflation. So if you have cash, what are your options? Well, you could put that cash into the stock market. You could put it into real estate, you could put it into crypto, or you could put that into precious metals.

People who are waiting on the sidelines with tons of cash? Well, they have to decide whether they're going to get a almost guaranteed loss with holding cash, or if they're going to buy into an asset class that doesn't lose value over the long term. And if folks are already holding assets already, doesn't really make sense for them to sell either, Because what happens when you sell an asset? Well, they give you cash. Cash is a depreciating asset, so you have the same problem. So pretty much the only hedge against inflation is you buying asset classes that aren't cash, But at the same time, there's some assets.

and there's some stocks that are better deals than other stocks. Right now, we are still dealing with the short-term ramifications from people being too greedy and over-leveraged in December in January and in February. But as the market got restructured and continues to get restructured over the next couple of months, you're going to start seeing a tsunami crash into the stock market. If you're sitting in January 2020 pre pandemic you as an investor now, compared to use an investor in January 2020, Well, you're paying a lot more for nearly every asset class already, from real estate to the stock market, to cryptocurrency, consumer goods haven't had that rebound yet, so it hasn't reflected in terms of the Fed's actual numbers.

But as investors, we've already had to deal with huge inflation. But look at it this way: if you buy the S P 500 today, you're paying a lot more than you did even pre-pandemic and no one would argue that the economy is better off now than it was in 2019. a hundred dollars in Apple or Disney or even Home Depot gets you less today than it did pre-pandemic Here's a better example: You buy Delta Airlines today. You're paying the same as you did in October 2019, when Delta had a healthy normal year.

Now you're paying the same for pretty much a carcass. Delta's been operating on half a finger for the last year. It has massive debt that's probably a couple years to even catch up to the numbers they thought they were going to be doing in 2019. basically paying the same price and you're getting a much worse company almost everywhere you look.

your dollars are buying you less inherent value than they did pre-pandemic almost all across the board in real estate. If you buy any house in any major U.s city, paying a lot more for the house today than you would have pre-pandemic and this is not going to get any better. But the real opportunity is in the restructuring like we saw in Tech just recently. There's a lot of restructuring in the economy that's going to take place.

Certain classes of assets need to be deleveraged, they need to have their supply chains fixed. We have to see how things adjust to the post-pandemic world, and how all of this monetary and fiscal aid has impacted the economy. But because of massive inflation all around, you're going to have a lot of resilience. People are going to be basically dip buying like crazy.

You have sectors of the economy and the stock market and the real estate market that are priced way above what they should be priced at. But you have other sectors that are going to come down short term and they're going to be met with huge resilience because inflation is going to make people pile into those assets. When they get to good deals. You're going to see that in the stock market.

You're going to see that everywhere. If you're somebody with cash, you need to get rid of that cash in the next year. So your goal is to find asset classes that have short-term dips that you can buy and get a good deal in them. Probably also pouring money into over-extended asset classes just because you know that a Rising Tide lifts all boats.

There's some boats that are going to be speed boats and you want to be buying the speedboats, not the other boats at some point. despite what the media is telling you, you're not going to be wanting to buy Mcdonald's Mcdonald's isn't going to be the growth story of the next 50 years. I always hear Well Charlie, if it wasn't around since 1950, it won't be around till 2050.. Totally disagree with that.

Most of the big growth stories of the stock market will not be recovery place, but pretty much the whole stock market is set for a rising tide. So make sure that you're ready, you're going to see many asset classes be very volatile in the upcoming months as we factor in more inflation as we get more data as we get some deleveraging as we get some little panics, those are all going to be met with huge resiliency and on the other side, a huge growth into all-time highs. I think that we were about to enter one of the most resilient tsunami markets ever, and we just got to make sure that we're on the right boat folks. Anyways, folks, if you have any questions, feel free to reach out to us below or join us on Ziptrader Circle.

if you'd like to learn how to trade, we'd like access to our daily morning briefings and of course our price targets list. I'll go ahead and put the link to Zip Trader you below. If you're wondering what broker to trade these stocks on, Well, Weeble will give you some free stocks if you sign up and deposit with our link below as well. They are a fantastico broker for new and intermediate to advanced traders alike.

There's tons of great scanning tools, great resources for doing your due diligence, and of course they are commission free, so lots of things to consider if you're looking to join a new broker. Anyways, folks, have a great day and I'll see you in the next video.