Big Risk For Your Money Right Now! Do This!
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With the stock market seeming to keep going up, real estate prices going up, high unemployment and poor GDP people are wondering what is the biggest risk to their money right now , The Fed (federal reserve) keeps doing everything in its power to keep things afloat. Hmmm. Yeah, there are some risks and not the obvious ones… I will tell you in this video how to not make these 2 mistakes…
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Hello guys in today’s future presentation here on the main channel I am going to share with you in my opinion, the biggest and the second biggest risk for your money right now out there, okay?
Almost every single person watching this video is at risk with their money right now in my opinion, okay, in my opinion, these are by far and away the two biggest risks that I see out there at the moment.
I’ve seen so many people getting caught up into these two risks and will continue to get caught up into these two big risks over the coming months. And I just have to bring this to your guy’s attention now.
Okay, and then after I share with you what these two massive risks are for your money out there, I will tell you how to avoid these two risks. Okay, one of them is actually really simple how you can avoid the risk.
The other one is a little more complicated. Okay, I’ll be honest, it’s a little more complicated. Okay. So hope you guys enjoyed this video. As always smash the thumbs up button for every one smash on the thumb button.
I get in this video, I’m gonna I’m going to basically give a thumbs up to charity. You know, I wanted to help out like a charity case channel. You know, kind of like financial education to that guy over there. He’s He’s a charity case k he needs more thumbs up.
I’ll be honest, I’ll donate one Thumbs up for everyone. Thumbs up, you guys donate to me in this video. Okay, guys, so let’s talk about the norm. Okay, quote unquote, the normal two big risks for people’s money or what?
Okay, whenever you’re thinking about what are the big risks for people’s money out there? Generally speaking, the normal ones, the two things actually come to your mind, obviously, stock market crash, real estate crash, okay, these are generally going to be always like the two biggest risks for money.
These aren’t the two we’re getting into today. I’m actually going to talk about some other ones I think are even bigger than this at the moment. But these are always there just generally speaking, always.
Because where do people that have money? Okay, let’s say you have money, whether you’re talking you got 10,000 bucks to your name, you got $100,000 a million dollars doesn’t matter. Any amount. anybody’s got any type of money?
Where do they generally speaking, put the money? They put it in stock market? 401k. Right, you work at a company start building up a 401k? Where’s that 401k money invested? Where’s the IRA invested in the stock market? So if there’s ever obviously let’s say the stock market drops, 50%, guess what just happens to your 401k.
It just dropped by 50%. Okay, your IRA, let’s say the market you got your money in sp 500 index fund, right? And the market drops 50%. Obviously, your money goes down 50% Real Estate crash right.
Most people that have a considerable amount of wealth, what they own real estate, right, that a lot of for a lot of folks, their house is their biggest asset in terms of that’s where they have the most of their money.
Like if they are worth $200,000, it’s probably because they got 150k in home equity. Right? And so those two are the norms, okay? Once again, not what we’re talking about. Those are the norms, okay?
Those are always risks every year, every year going into every year in January, I always put out a video, if a stock market crash is coming. If a real estate crash is coming, it’s what we always talk about, what was this going to be the year it happens is the market gonna drop 2030 40% this year.
Obviously, this year, we did actually have a stock market crash, it happened real quick, real fast. When we had it, right, the market dropped like 30. I’m gonna say 35%, in a matter of it was crazy.
I think it was like a six week span or some insane number. In terms of real estate crash we haven’t prices for real estate have actually increased, okay, which is crazy. Okay, but those are always the biggest risks.
We always talk about those each and every year. But there’s even bigger risk of hurting people’s money out there. Right now that I’m seeing, okay, the first of these two massive risks have to do with the Federal Reserve.
Okay, the Federal Reserve. And I understand it definitely looks like the Federal Reserve is helping some things, and the Fed is helping a lot right now. But I can tell you it over the next several years.
it’s going to end up hurting a lot of people in some different ways that I’m going to get into Okay, so right now the Federal Reserve, which let’s just call the Federal Reserve, the US government, okay. And by the way, governments around the world are basically if they have their own printing press, they’re honestly, you know, we’re releasing a lot of currency right now.
Okay, the Fed is doing everything to keep companies afloat, to keep people in flow, the market today, the stock market was going to be down 1000 points today, if not more than 1000 points. And then also news breaks that the Fed the Federal Reserve, will go ahead and start buying individual company, corporate bonds, right. This is huge news.
It turns the whole market around from being a very bad day in the stock market to actually being a very good day and stock market. I think I made, you know, a lot of money to just put it that way. And I should have been down a lot of money today. But the Fed saved that right.
And so the Fed is just doing everything in their power to keep these companies afloat bond buying programs, asset buying programs, the Fed’s balance sheet is increased by trillions dollars, all that money that was sent out there.
Well, everybody that received that 12 $100 stimulus check, right? And all these government programs, right, the PPP loans, where’s all that money coming from? It’s coming from the Fed. Okay. The Fed is basically the US government, okay?
Although they’re supposed to be separate entities, they’re almost like the same thing. And so you have this massive, massive flood of money come out there, out of nowhere, just massive quantities of money.
We’re talking trillions, trillions of dollars, not we’re not even talking about billions anymore. We’re talking trillions in a matter of a few weeks span, okay. And how are they doing this? Okay, we all heard the printer jokes.
It’s the truth and basically just creating money out of thin air, like, hey, let’s just send this money out to send that money out. That’s just that, you know, they’re just sending money everywhere.
Okay, just send it it’s not like they magically put a magical tax on everything, that they’re going to recoup this money. No, that’s basically just saying, Hey, we’re gonna send everybody a 12 $100.
Stimulus check. It’s coming. It’s just, it’s just being created. That’s what the feds doing. That’s what the Fed does. Okay. And can you say asset inflation, can you say inflation in general, okay. This says.
What is the massive risk for your money right now, the fact that your money is going to become worth less and less, and I don’t mean worthless, okay. But no one can say that me where it’s gonna become worth less than worthless.
Okay. This is a massive risk that we’re not talking enough about, we’re talking about, could we see another, you know, double dip and stock market crash? Could we see, you know, stock go down again, things like that.
And when could real estate drops, especially after forbearance comes, these are all real things that, you know, we’re spending a lot of time talking about, but we’re not talking about the other side, which is a fact that your dollars are likely going to become much worth less over the next few years.
Inflation, acid inflation, like whenever there’s a ton of money created out of nowhere, guess what gets more expensive, everything generally, but especially assets, including the two main asset classes, we talked about the beginning of the video, stock market, stocks, right real estate, those ones go up and up and up.
So let’s give you an example. Let’s say right now, you have $10,000 in the bank, okay, or $10,000 under your mattress, or whatever, okay, but let’s just say you got $10,000 in a checking account $10,000 under your mattress K.
But meanwhile, while you have that $10,000 under your mattress or at the bank, and let’s say you it’s over a 10 year span, okay? You got that $10,000 here. Meanwhile, let’s say real estate prices go up. And that what generally happens is real estate becomes more and more expensive, right?
It’s almost every 10 years, somebody looks back and like Dang, I wish I would have bought I got plenty of friends, you know, that are like, Oh, man, I wish I would have bought a house in this year. Oh.
I wish I would have bought a house because now look at what that house costs nowadays, right? Same thing with stock market, right? You always hear people I wish I bought in the stock market. Oh, I wish I bought this stock.
Oh, I wish I bought stocks. Because where does the stock market go over the long term up and up and up real estate prices up and up and up? Okay. And it’s not just like they magically happened. It’s because what dollars become worth less and less.
So it takes more and more to bind to the stock market takes more and more to buy into real estate over time. a loaf of bread goes up, right? That’s what we call general inflation. Okay, there’s acid inflation, then there’s general inflation.
And generally when you have more and more dollars being put out there, everything is inflated wages, what happens to wages, even in a situation like this, a lot of times even wages end up going up over time. Because guess what, 825 an hour 725 an hour isn’t worth as much when you know, everything’s double as expensive.
So generally just have everything get more expensive. Okay, so then imagine over a 10 year span, all that happens, your $10,000 really becomes worth $5,000. Okay, let’s say over that 10 years, the stock market has doubled real estate has doubled a loaf of bread has doubled.
Okay, great that $10,000 you had in your checking account that $10,000 you had under your mattress, it’s now worth $5,000, it’s worth half as much okay, you technically still have 10,000. But what your buying power is with that is a massively less, and I mean, massively less. And a lot of times the more and more money that’s put out there, the more and more that printing goes better.
I always forget what country it was was Zimbabwe or something like that, where they put so much currency out there that they ended up having hyperinflation, maybe it was Venezuela, and they had to, like walk around with like, a basket full of money just to buy like a loaf of bread and like some milk at the food store or something like that.
That’s a risk you have and I do I think hyperinflation could happen. The United States Probably not. But inflation, it just happens all the time. And sometimes inflation happens much, much faster over a period of time.
And if you’re thinking about potential in that between like a regular inflation of maybe potentially like more of a hyperinflation we could get something in between that over the next 510 years just because the flood of money that has been put out there Okay, this is a great piece of this this random website put out called wealth simple calm, okay.
And basically they show you what this is, this is based upon 2018 terms. Keep in mind even a million dollars in 2018 isn’t worth a million dollars in 2020. Okay, but a million dollars in 2018. For basically the same amount of money you could have 650k was really worth a million back in 1998.
Okay, if you had 150k or 150k to your name 1958 that was worth the same as a million dollars here today, what has happened, okay? The dollar has become worth less and less over time, right? You go back to 1918, you needed like 40, to 50k, to your name, to basically equal a million dollars here today.
What has happened over the past 100 years, the dollar has gotten has basically become worth less and less and less over time, your buying power with that dollar goes down and down and down. And obviously, with a massive flood of money out there, your dollars are what is the dollar going to be worth more in five years from now than it is today?
You know, pretty much every single person watching this video is gonna say No, okay, is the dollar going to be worth more or less in 10 years from now than it’s worth today? everybody out there should be saying no, it’s gonna be worth a lot less in 10 years than the dollar is worth today, okay.
And it’s just what happens and it’s a massive risk for your money. And all of us that have some money at the bank, it’s a risk for us all. Okay, now let’s talk about the other biggest risks I’m seeing with people’s money right now.
And then we’ll get into what to do to avoid and the more complicated one as far as avoiding as this past one, the next one’s pretty easy one to avoid, okay. YOLO options are than another one of the biggest risks.
I see to people’s money out there, this is a second biggest rescue, the main biggest risk is inflation over the coming years, the second biggest risk to people’s money, the YOLO options, the amount of people I am seeing, doing options that have no business, doing options, call options, put options options across the board last few months is startling to me, okay.
And when you look at a chart of the Dow Jones Industrial Average, you see why people have begun to get so like, like, Oh my gosh, I got to get into options recently, because the market went down in a massive way.
So if you were playing put options, basically back half of February, into the end of March, the gains you made on your put options were ridiculous. We’re talking hundreds of percent 1000s of percent, or 10s of 1000s of percentage gains in literally about a month’s time, ridiculous.
And then if you were playing Paul’s toward the end of March, you basically also made on your calls likely hundreds to 1000s to 10s of 1000s of percent depending on how far out of the money you bought those call options.
So people are looking at this. And they’re like, Oh my gosh, I can make so much money on your I can make life changing money in YOLO options, I got to put my life savings of $5,000 or whatever the amount of money is into YOLO options.
And I’ve seen it firsthand. Okay, we had a gentleman, we had a gentleman in the private group k guy played a perfect when it comes to put options especially he also actually, you know, played pretty well with calls coming out of this whole thing as well. But literally this one guy in the private group made $3 million.
It was documented to he documented the whole thing in like a three weeks span. It’s the most insane thing I’ve ever seen in my like 12 years to be in the stock market. Like he cleared like three, like life changing my like, what, what I mean, it was amazing. And Congrats, gentlemen. But the thing is, everybody else sees this.
Everybody else sees us now in my private group, and then you have everybody else that might be seeing somebody else have success out there a friend or family member, some random person internet that just made a bunch of money from options. And they’re like, Dude, what the heck, I want a piece of this as well.
It’s no different than a bunch of kids. You go in after an ice cream truck, right? They’re like, Oh my gosh, an ice cream truck. Let’s go get the ice cream. This is like traders. This is like stock market traders, when they see a bunch of people making money off something. They all want to flood into it.
They’re like, Oh, I gotta get some from that ice cream truck as well, though, do they know that they’re sticking their tongues out waiting for that ice cream, right? And then sometimes ice cream trucks already driving away and they’re like, Oh, they just don’t quite catch up to it. Right.
And sometimes when you talk about these option plays, sometimes you get a beautiful Ice Cream Sandwich that this is this is just tasty. Sometimes you get really lucky you might get a triple Decker Ice Cream Sandwich when you buy some of these options. And you might make so much money.
You’re just your head spinning Okay, you luckiest person in the world congrats to you and that’s some of those folks that you know make crazy money on the downside the market make crazy money on calls coming out of this. There’s definitely a few people out there. Okay.
But the majority of people that get a Lysol ball to eat Okay, that’s what they get. When they do these these these middle mass buying call options. Put options. This is this is what most of you folks are getting. Okay, you’re not getting ice cream sandwiches.
You’re not getting triple Decker ice cream sandwiches. You’re getting that right there. Okay, and that’s just facts. Okay, that’s just facts. I wish it was so easy that you could just make a crazy money from options but I can tell you, for every one person that’s getting an ice cream sandwich.
There’s 100 people getting the Lysol. Okay, okay, okay. Don’t be like the W SB community. Okay. Now the Wall Street bet folks. I mean, you know, they post pictures like this all the time, you know, these users taking crazy He lost. It’s just crazy losses.
Okay, so next question is now that we know the two biggest risks for your money right now, what can you do to avoid these two massive money rescue? Okay, the first one’s obvious, don’t do yellow options. Okay, options should be used very sparingly when you see a massive opportunity, and you need to be very deliberate with where you put your money, okay?
And you can’t put all your money into some options. Okay, that’s just gambling in the end. Okay. And honestly, any option play that’s betting on a short term stock price move is basically more toward gambling than investing. Let’s be completely honest. Okay.
Do I don’t care what type of inside scoop you have, I don’t care. You know, it really doesn’t matter across the board. Okay. If you’re playing short term options, you’re really doing more of a gaming play than investment play, let’s just be honest, don’t do YOLO options, okay, I do probably three to five option moves a year, a year. Okay.
Now that mean, I’ve been in this market for over a decade now I do three to five option moves a year. And sometimes I get the ice cream sandwich. Sometimes I get the light softball, I get the Ice Cream Sandwich a little more in the Lysol bottle.
Why? Because I do them very sparingly. Only when I see an opportunity that I just have to do it, I just have to do it. Okay, don’t mess around a yellow option, especially if you’re new to the market. You don’t belong anywhere near that. Okay.
Number two, in terms of avoiding the massive inflation, okay, you got to open an online savings account, that’s the only place you’re gonna get decent money. As far as a savings account, even online savings counselor are getting bad now.
I think it’s like 1.5% a year or something. But at least you can somewhat keep up with inflation, it’s way better than putting it under a mattress or just keeping a checking account where you could potentially get nothing, right. But you put it in a savings account, and then you invest it whenever you are ready to invest in you see an opportunity in the stock market, not yellow options.
Okay? Whenever you see an opportunity in the market, a stock you love for the next 510 years, you go ahead and buy or it could be a real estate investment property if that’s you’re looking at or house, whatever you’re looking at, but you got to be investing.
Okay? I am always I try to always stay 10 to 30% cash, okay, Why do I always want to stay 10 to 30% cash, by the way, 10% when basically I’m investing like crazy 30% when I’m not as investing as active as much as put it that way if the markets really high?
Why these you know, specific numbers? Well, for me as a stock market investor, things always happen in the market. Okay, you know, very few and far between do we get into a stock market like we’ve had for the last couple months, where it’s up in a straight line, most of time.
The stock markets very volatile, a lot of stocks are very volatile, huge, moves up, huge moves down, earnings come out, oh my gosh, the stock just went down 10% 20%. Maybe it’s an opportunity. So I always have to have some cash around so I can take advantage of deals. Okay, that is the name of the game.
Yeah, I always want to be in a position of power. And if you’re in a position of power, you’re somebody that always has some cash around. But why not be you know, let’s say 70 to 90% cash? Well, once again.
You run into the situation where what assets usually do, they’re going up and up and up, the real estate properties are getting more expensive, the houses are getting more expensive, the stocks are getting more expensive. This is just what happens over time, especially as you put more and more money out there into the system, everything gets more expensive.
So you can’t go too heavy cash, or you’re going to end up in a massively bad situation, which is essentially a situation where you hold nothing but a bunch of cash, and nothing but a bunch of money in checking account. And that money is just being devalued over time. because keep in mind, the times when the stock markets down huge.
And the you know, real estate prices down huge. It’s very far and few and far between especially real estate K, that’s a that’s a, you know, the amount of times real estate dips in any massive way. Extremely rare.
I mean, look, just look at the past 50 years and how many times real estate prices have dipped, in let’s say, a 10 to 15% way, very few and far between stock market does it every once in a while and you get that opportunity to take advantage.
But sometimes it happens real fast, where you know, to come shooting back up, and you’ve got to always be invested. And this is why I still to this day, even though I don’t like where a lot of stock prices are at this is why .
I still hold the majority of my wealth in stocks at the end of the day because we’re where’s the stock market is the stock market going to be higher or lower in five or 10 years than it is today? everybody out there should be saying higher Where’s real estate prices going to be in 510 years higher lower than today? Higher, okay?
Like this is just what happens. And when you have massive amounts of money being put out there, everything’s just going to get more expensive, you know, if anything had happened, volatility wise in the short term, and that’s why it pays to always have some cash around.
But the fact is, if you’re not always mostly invested, you’re making a huge mistake and you’re just missing out on a huge opportunity. No different than being cashless, right. If you’re cashless all the time, you don’t have to take advantage of some great deals that sometimes you get in the market. And we obviously got one of those opportunities in March.
We could get one of those opportunities again this summer. We’ll see right now the feds the feds still trying to backstop everything. We’ll see if it ever makes In terms of fundamentals and how the economy recovers, but those are two biggest risks in the market, that’s what you can do to avoid those guys. Stay away from YOLO options. Thank you for watching and have a great day.