Are we entering another recession??
Let’s start the conversation. You don’t have to have a PHD in economics to understand the history of recessions in the United States AND you don’t even have to pay a dime either.
Why? Because I made this podcast episode for YOU. By the end of the this episode you’ll know the history of economic crashes in the United States, what the current state of the economy in the U.S. is, and what you can do TODAY to start preparing yourself for the next inevitable recession.
This is NOT supposed to make you feel discouraged or to make you wonder if you would make it in the event of a recession. The point I’m trying to make is that you can’t control whether the market crashes or not. All you can control is your own actions leading up to it.
That’s why you’ve gotta educate yourself ASAP and start taking ACTION today!!!
Passive Income Calculator: https://bit.ly/46WtJAU
TRANSCRIPTS
Speaker 1 (00:00):
Guys, it starts even with the feds, the banks, everybody that’s doing this kind of crap. My prediction is if you don’t have the money to spend, you don’t spend with those companies, guess what happens.
(00:28)
Hello, my fellow Ripples. This is Chris Miles, your cashflow expert and anti financianal advisor. This show is for those of you that work so hard for your money and you’re now ready for your money, start working harder for you today. You want that cashflow, that prosperity, that passive income right now, not 30 or 40 years from now. You want to be work optional today where you work because you want to, not because you have to, and it’s not just about getting rich because that’s awesome too. You can provide for your family, but it’s also about living a rich life because as you’re blessed financially, you now have a greater capacity to bless the lives of those that are around you today. Guys, that is the purpose. I’m here today. Thank you for allowing me to create the ripple effect for you. I appreciate you guys binging, you’ve been sharing and be able to really watch through these episodes and learn from them, and thank you especially shout out to those of you that have reached out to us.
(01:12)
Many, many of you have reached out more lately because realizing I think it’s time. I think it might be time for me to do something different with my money. Thank you so much. For those of you that also want to know how to do that, you can reach out to us@moneyripples.com. Alright, so what really causes a recession? How do we know if we’re going to recession or not? Weren’t we in a recession 2020? Wasn’t that a recession or a little baby recession? Little baby one. How do we really know what that really is and how do we know when it’s coming? How do we know what’s boom time? What really causes it? I’m going to kind of dumb it down based on what I’ve learned over the years, and I’m not saying that you’re dumb, just so you know when I’m saying it this way, but I think there’s too many economists that talk themselves in circles, but they really don’t know what they’re talking about.
(01:55)
They kind of know intellectually, but they really don’t know what they call it. Now I’m here to say that even knowing when a recession’s happening is not an easy game. It’s not an easy thing to do. However, there are clues, there are signs to look for even before it comes up in the news that if you pay attention to these things, and this is what I watch on a almost daily basis, I wouldn’t say daily, but at least a weekly basis I’m watching so that I can look for signs of what’s actually coming. I’m going to share that with you right now. First and foremost, let’s talk about what is the recession. Now, there are a lot of different definitions and even changed during covid and things like that because they didn’t want people to think we’re in a recession. I honestly believe that truly, we were already going into a recession before covid, but the thing that created this artificial bubble, really they call it everything bubble that we had where prices skyrocketed with inflation everywhere.
(02:49)
It didn’t matter if it was stocks, real estate, you put your money anywhere Bitcoin, you made money, right? That’s the truth for a couple of years, especially because they kept printing more and more money. It wasn’t because anything was better. It was because more money went to circulation and that is the key right there, guys. The real way to see if you’re in a recession or not, regardless of two losing quarters, yada yada, all that kind of stuff they talk about that really doesn’t matter. What really comes down to is what is the flow of money? You got to understand this one key principle exchange creates wealth. The more people exchange resources, money, value, production, labor, the more that affects exchange and the faster the rate of the exchange the better and stronger the economy. That’s it. So let me give you an example, right?
(03:38)
Let’s just say that a few of us here, you, myself and a few other people, were sitting in a circle. Let’s say there’s four of us and let’s just say I pull out this $20 bill, which I might actually have on me, but I’m not going to pull it out right now. I wasn’t prepared. Let’s say you pull out this $20 bill and now if I pay this $20 bill to you, I pay you 20 bucks and say that happened in one hour. You made $20 an hour right? Now, of course, are you going to hold onto that 20 bucks? Are you going to do something with it? You might end up spending it somewhere. It could be bills, it could be saving it to a bank, which there’s actually, that’s spending money too, which you’ll find out, but that $20 could go to somebody else, so say you go to that third person circle, you pass it 20 bucks to them, and then that person passes it to the fourth person across the circle and then that person passes it to me.
(04:24)
Now, if we only did that one time per hour, we each made 20 bucks an hour with the same $20 bill, but what if we started passing that around every six minutes? What happened? We pass around to each other and it rotates through each of us every six minutes. We all made 200 bucks an hour with that same $20 bill because each of us made 200 bucks an hour, right? That’s almost like 800 bucks an hour really, if you think about it, a total exchange. Now, you might think, well, that’s just fake. Well, yeah, if you’re just passing around money for the sake of passing around money, it is fake, but in a good economy, and this is how you’re in a good economy is when people are willing to let their money go and use it, spend it. This is why during George Bush Jr.
(05:06)
Baby Bush that I like to call him, right? During that period of time, he did a bunch of tax breaks during the Y 2K era because he wanted to make sure that there’s extra money being paid out in tax benefits. People got this little tax bonus so that they would spend the money. He knows a lot of Americans will just spend it and even if they don’t spend it, they might be doing it to pay off debt, which goes back to the banks and then they go and loan it out and do other things with it. It could be going into a savings account, which then again, the banks lend it out and go elsewhere. That’s why I’m saying even if you save money, you’re really still spending money because that money still gets cycled through. It’s not like people just bury it. Now, if you bury in your backyard, you’re right now, there’s no benefit, so if people don’t spend the money, which has happened in different times in history, people don’t spend it, then they get scared.
(05:51)
This happened at first during the 2020 era. At first, people were too scared to spend money. They weren’t sure what to do, but then as things started to open up a little bit more and people got sick and tired of staying at home, they thought two weeks would flatten the curve and it didn’t flatten the curve. They decided to get out and spend money and then boom, we saw everything spike. That’s why the stock market spiked. That’s why we started to see real estate prices spike, even though for a few months it seemed pretty rocky. Everything started to spike upward, driving up inflation, and then of course the feds took way too dang long to react, right? That’s a good example of what a booming economy looks like. It’s because the faster money exchanges hands between people, the more you’re willing to exchange that money, which includes an abundance mentality because in scarcity you get the opposite effect, but in an abundance, you’re willing to spend that money.
(06:39)
Yes, I guess in scarcity, if you’re thinking buy now, you got to do it today or else, right? Okay, now you spent it in scarcity, but either way, when you feel free to spend money and use it, that’s when everything booms. That’s when people get paid. The micro level, if you are willing to spend money, you pay that store owner. That store owner then pays their employees and employees then can go and spend on other things. Then eventually that money comes back and circles back to you. We’re all interconnected in this economy, so even though economics is a study of scarce resources, the truth is that you can actually have a lot of abundance in this. So-called scarce economy, right? Because of how rapidly we exchange hands. Remember, I showed you last week I showed you the charts about the stock market. Remember how it boomed so much in the nineties?
(07:24)
Why did it boom so much? Because the internet, it was the internet tech boom. Not like ai, right? Not like AI where it’s just like everything’s going hypey. No, there’s legitimate things happening because of the internet, because now people could buy everything right? Then in that moment, you could be asleep and people can be placing orders while you’re asleep. Remember that before this time? Those of us that are old enough to remember this, I’m about 47 right now, but those old enough to remember it was always like, call this one 800 number. Operators are standing by, you have to wait for the operator, and of course you call that 800 number. They’re open 24 7 or maybe certain hours and you place that order. They’d have to have 24 hour operators for you to be able to do that. They’re paying people the whole way to ensure that they can give those orders at all hours of the day, but with the internet, we didn’t need those operators anymore.
(08:12)
Now we need the customer service agents and tech support agents, but we didn’t need that anymore, and so as a result, we were able to get that money exchanging hands much, much faster. The internet made it faster. Now, AI with the whole tech boom we’ve got now, yes, there’s some things that are kind of improving, but is it improving really quite to the degree like we’re seeing with the intervention of the internet? I would say not so much. That’s why we haven’t seen such a big boom with this ai little mini tech boom, which I think is more hype than an actual real solid something that actually makes companies more money because the truth is we’re seeing a lot of companies failing right now, and that’s the thing. Go the opposite side of this, right? The economy. Now, when money doesn’t change hands is usually when you are scared and you’re scared to spend money or you don’t have the money to spend, but it usually starts with some sort of fear or something locking up, so think about to 2008, that crash happened not because people didn’t have money.
(09:09)
The banks stopped lending money. They started closing their doors so people no longer could buy a house even if they could qualify before. Now all of a sudden they couldn’t because the banks lent to everybody and their dog. We saw this huge real estate boom way above beyond, and the real issue with the boom was that they were overbuilding compared to the actual demographics of those in their low thirties. Right now, we’re having a huge amount of kids that are now moving into their thirties, the millennial generation moving to their thirties that are needing homes. They are needing these things. We have a very different scenario where before as my generation of Xers who were a low population generation and we were the ones moving to our thirties at the time, and that’s why we saw all this housing booming, but there was nobody to buy the houses, and on top of that because the banks then said, Hey, we lent to everybody, anybody who had a heartbeat we gave money to that may not have been smart.
(10:02)
They did the opposite. They started closing their doors, they swung the pendulum in the opposite direction instead of giving to everybody with the heartbeat. Even those with good heartbeats and good credit scores, we’re having a hard time getting a loan. When that credit tightens, when that money stops exchanging hands, things slow down and if they do it extremely, they collapse. I remember because in summer 2007, I was trying to get out a home equity line of credit. Why? Because I had just pumped in a bunch of money to build out my basement. My appraisal came in and it came in more than when I spent on that appraisal, so I already had equity going in from day one, but by the time about a year or so, by the time I finished off my basement, I now had 150 grand of equity. I’m thinking, man, I’m a genius.
(10:42)
Time to cash that out. July of oh seven, I go to the bank. The banker says, Ooh, you know what? If you get your score up, two more points. Literally they said this, two points, we’ll give you the loan next month. If you can keep it up there in August, come back to us. I came back in August, 2007. They said, we just changed the rules If you do X, Y, and z, I don’t even remember all the things they told me to do, but they’re like, if you just do these things, then we’ll give you the loan in September. September rolls around. You know what they told me? Sorry, we don’t give loans to business owners anymore. Now you’re high risk, so all the equity is trapped. Well, it wasn’t just me dealing with that. Other people that were real estate flippers and investors that were trying to rely on that system couldn’t do it Now, we couldn’t find people to buy the properties.
(11:24)
Plus if all of a sudden they made the criteria more strict of who they actually lend to, and they started raising how high your credit score had to be, a lot less people could qualify. What happened? Nobody was buying the houses. We started to see real estate values drop and then all of a sudden things blow up. That’s why I lost all my equity I should have. If I would’ve had it, if I wouldn’t have gone back in time, I wouldn’t have put the extra cash in my house, even drove up the value. I would’ve just kept the cash on hand, weathered that storm by having the cash, but I didn’t, right? Because I thought I can always pull back out because the banks give money to everybody, right? Wrong. It doesn’t always work that way. This is what happened even in the last two years with apartment buildings, right?
(12:03)
Apartment buildings started decreasing in value, not because they didn’t have the value, not because they didn’t have the profits, but because the market changed when they started to drive up interest rates. All of a sudden. Now, because apartment values are not based on appraisals, they’re based on profits compared to other factors like real estate plus risks and things like that, they basically all lost about 20% of value in just matter of months. Guys, that that’s a big deal. So as we have Randy Lawrence on our show talking about this, right? We talked about how really that swung the pendulum, and of course the bankers now are being more strict, making it tougher. They’re requiring more equity before the yield loan. All those things have contribute to the value unless the banks loosen their grip on the money, things won’t move. The Great Depression. Everybody was scared, right?
(12:52)
Things were crashing, the market’s crashing. A lot of people took borrowed money from the bank to put in the stock market, which is why it’s now illegal to borrow money from the bank to then invest in the stock market. They don’t want you to do that, but that’s what happened back then caused a major crash. Nobody had the money to pay back to the bank because they lost their money in stocks. As a result, the banks had to close their doors. They didn’t have the money. They was run on the banks. Everybody was trying to get the cash because there was no cash available. They try to run it on the banks. This could happen even today because so many people have locked their money in things that they can’t get access to because locking their money in equity into home, they’re locking their money away into trying to put their money in like 4 0 1 Ks that you can have to pretty much quit your job or have to borrow against it to even get to it, and that’s ridiculous.
(13:33)
Then you have to pay every paycheck, a pretty high payment just to make those payments back, so all these things are happening to make it tougher for you to get the money. That’s a scary thing because when the market does shift, and it always does ebb and flow, we have ups and downs when it shifts. If people can’t get the money, now we’re in problem. Here’s what’s happening today though. It’s not just like the depression because remember depression, people were scared they were losing money. They started holding onto it out of fear of not having enough. When they did that, they weren’t spending their money at the stores and then the stores weren’t making money. They couldn’t pay their employees and the companies couldn’t pay their employees, and as a result, they had to lay off people, and when you lay off people, guess what happens?
(14:09)
They can’t pay any bills either, and that if they can’t pay those companies, then they’re going broke. Everybody’s going broke because nobody is spending the money. The money is locked away or disappeared as they gambled it away. Literally, people can lose a lot of money fast. Now, there were people that made money in the Great Depression. About a third of people became more wealthy during that period of time. There were people that understood this principle. They understood that knowing where to look for the exchange, right? Knowing where to look to actually solve problems in that period of time. This is why Joseph Kennedy, he was able to go from $4 million net worth in 1929 to a hundred million net worth in 1935, right? Because he started buying up commercial real estate because no one could do anything with it, so he was buying up for dirt because he had the cash.
(14:52)
He was able to get his money out of the market before it crashed. He was able to keep it. He held onto it, he kept it safe, and then he gobbled up all that opportunity. Warren Buffett did the same thing, the last great recession. He started buying up all these companies like American Express and all these different things. Apple, which by the way, he just sold off the half of his shares with Apple makes you wonder why he would do that. Maybe because the tech stops are a little bit too overvalued. Even Apple, which by the way, Dave Ramsey even said as that video I showed, he’s like, well, Barry, go buy Apple. Well, guess what? Apple may not be as good as what you thought because somebody who’s smarter than you, Warren Buffett said, I’m going to pull out half my position out of that company.
(15:30)
He’s stockpiling cash. He knows something is coming. Why aren’t we doing the same thing? And that leads to right now what is happening right now. Here are the charts that I watch. Here are the things that I look at. Alright, so here’s the first one. This one is the 10 year treasury minus the two year treasury. This is when you hear people talk about the negative yield, the negative yield spread. You hear about looking for recessionary indicators. What they look for is when does the 10 year treasury, which is usually higher, just like a 10 year cd, would pay you more interest than a two year CD or a five year CD would pay you more than a six month cd? Usually it’s a flip flop Now, and this is why usually the longer term, the higher they pay you, right? Because you keep your money locked up longer, they pay you more unless there’s signs of a recession.
(16:14)
Then it flip flops. Then all of a sudden they start trusting shorter term money over the longer term. Well, here’s what this is. See this big black line that’s zero whenever it dips below, usually recession follows notice right here you go back, this is showing 1970. Well, yeah, end of 78, right? It starts to dip below. It’s down there for a little while. The official recession didn’t really start until about 1980, right beginning 1980s when they said the recession started, so think about this. It was about almost a year and a half, and then the recession started in 1980 and it came back about the end of the year, said the recession was over, it started to come back again. Reagan got elected at that point. Yay, Reagan, and then of course it goes from there and then it dips below again. Now, this is of course when the interest rates were being driven up like crazy, kind of like now.
(17:05)
Well now you see there about September drops below again, and then what did we do? We hit another recession, right about August of 81, so just two years after the first negative yield. Now it does it again, so really that happened when we saw that, that was about a year later, we saw a recession. Notice it did it again. It dipped again right about 1989 just for a brief moment. Dipped for 1989 for a little bit, and then of course about a year and a half or so later, recession in 19 90, 19 91. Now we were pretty clear, but then of course, what do we see happening right there? We started going negative about February, 2000. February two guys, the stock market was still going up until March, but this started move into negative yield territory. Now, at this point, they started to figure out, wait a minute, we see a sign here when these things flip flop and this becomes the 10 year treasury becomes less than the two year treasury.
(18:04)
We have a problem. February, 2000 did that did for a little bit. It still came back up maybe like half or so year later, but guess what? We had a recession there. It shows it starting in March of 2001. By the way, the market had already dropped at this point. It had already been dropping before. It was an official recession. Now the thing is way higher, but it didn’t matter. The recession was still there for a good solid. In this case, it shows it for about almost a year, and then it goes down and then we’re pretty clear, but now it dips down again right here, about 2006, a little bit. It teased it and then it went down again end of 2006, but in the course into 2007, it started coming back up, but what happened, we started moving to recession right there about the end 2007, beginning of 2008, and we started it all over again and we were in that one for a good period of time.
(18:51)
It shows about a year and a half of official recession and notice the stock market sometimes can stay down for years. Even beyond that, it can go before recession and it can go down even after the recession’s over just depending on how people are reading it, but now we’ve had nothing. Now we got really close. Look at this right there. I remember I said in 2019, especially last week, we were talking about Dave Ramsey. I said, in 2019 we actually were heading to recession. We were already seeing signs that we were heading towards some of a recession. Started kind of getting a little bit of improvement, but still it was dipping below that line a little bit, and then it started to come back up, but then we had the course of March, 2020. They show this little mini recession, which is just bull, and then it came back up, but then watch 2022, right then, right about, let’s see, what was that?
(19:35)
Yeah, August, July, July of 22 is when it hit negative. I remember this happening. I mentioned this two years ago in our podcast. It went down and it has stayed down ever since. Guys, this is one of the longest periods. I mean, you notice this is like the 1980s, right? When we had the same thing, high interest rates starting to form at this point to try to help curb inflation, same kind of thing. We’re also experiencing now. Now remember the stock market, it does its own thing. It can go up or down just depending, because in the 1980s we had some interesting volatility. We, I mean, we had some good times, we had some bad times just depending on what you’re looking at, but again, the market kind of went up, but mostly that was just because of what was happening with trying to control the interest rates, and they did it fast.
(20:21)
They reacted very quickly. We don’t have that kind of benefit today where the feds are actually responding slowly, so the only reason the market kept going up is because reacted fast and moved it up fast, and they move it down fast. Here it’s been slow. They’ve been keeping the rates higher for longer, and now as a result, here we are, so this is one thing we’re looking at. Now, look, again, like I said, this was two years ago. We were in this. Usually it takes a year and a half to move into recession. Many are even saying we’re in a recession, but again, we’re not getting the true numbers reported. It’s almost like we’re China in a sense that we’re just reporting whatever numbers the government wants to have you here so they get reelected, right? Whether that’s true or not, doesn’t matter, guys, this is the reading that people look at.
(21:01)
This is the sign of there are hard times still ahead and we’re still here, and remember, a lot of times we’re moving to recessions just like you see here. Sometimes we’re already moving above the line, and then the recession hits after it goes above the line almost every time, almost every time, not every time, but in many cases, once it goes above the 0%, that’s when of course the recession hits, so we might be moving to something here that could also affect the stock market. Now, there’s one more chart I’ll show you here that I also look at. This is important because remember I talked about exchange creates wealth. This is a big one right here, this one, and by the way, if you want to see closer, this is also just the last few years or really this last year or so, showing that 10 year treasury.
(21:44)
I don’t pay for this kind of thing for that kind of chart, so that’s why I see that thing, but it does update for me daily when I look at it. Now, here’s what I do look at is also I look at the money supply. Now, I’m going to see if I can update it, see if they got July out yet, because as, nope, they still don’t. I’m recording this as of mid August, usually wait until the end of August before you get July’s numbers. This right here is the money supply. Now, the key is this. Now I’m looking at the max here. Over time, you can see that this is the money that’s been produced, printed, so to speak, right? This is the money being put into the market. Now, you’ll see here, of course, we have recessionary times. Usually money supply sometimes will beef up the money supply.
(22:21)
During those recessionary times, you can see the curve increases a little bit, and then in this case, in the eighties, it kept increasing, slowed down a little bit, but then they kind of leveled off, but they were still producing money. But notice what’s happening, especially post 2020. Look at that big, big jump. Now, remember the Fed said they’re going to start backing off. Now, we’ll see here after 2009, there’s a little spike again. They start pumping more money in because they’re trying to do the quantitative easing. You’ll see another one happen right here in 2011, it bumped up again, just stepped up. That’s the quantitative easing. We got a big one in 2020 20. That was huge, and then it kept going and going through 2021. This is the reason we had hyperinflation. It wasn’t just about people wanting to having extra cash. I mean they did, but where did the extra cash come from?
(23:11)
Because the government made it. This is the money supply. The more money supply there is being made, usually the more inflation we have. What’s fascinating guys, is all they started to back off in 2022 when they started backing off interest rates. Notice what they’ve done since 2023. Let me even zoom in on the five years, so you see it better. Well look at this. So it goes up, up and away right after 2020, but then it goes up, it hits the top, and then they were telling us, Hey, we’re going to back off. We’re going to ease it, and then they started to ease it slightly, so every month you see they’re doing a little bit less, but not drastic. Look what happens in 2023 even goes up, see it’s there at the 20 20 trillion mark. Then it’s going back up and up and up, and really it’s kind of flat, but then it started going up.
(23:56)
In recent months, they’ve been slowly increasing it again, so what does that all mean? Why am I looking at that? Because I’ll tell you, when you see the stock market going up, a lot of times it’s because there’s money being put out. This is also the money that goes to banks so that banks have more money to lend. This is the full money supply being rotated and exchanged throughout the country. When that money supply keeps going up, of course we’re going to have more inflation. So although they’re trying to say, oh, we’re fighting inflation at the same time, they’re also not fighting inflation. They’re keep printing more and more money. That’s the big thing you got to watch out for when you’re looking at this M two money supply. So I look at that because that’s kind of the sign to see, well, are they really fighting inflation?
(24:38)
Are they not? If there’s more money being pumped, watch out, right? It’ll keep driving prices up, but at what point do they keep pumping out money to the point where consumers can no longer afford it because we got to keep driving up wages. We kept doing all this stuff. Eventually, companies become less profitable. That’s what we’re seeing now. Companies aren’t profitable and families aren’t profitable, and if you don’t have the money to spend, you don’t spend with those companies. Guess what happens? We no longer have it. Now, the banks might have the money, but they’re not lending to you necessarily, and they don’t. When they do lend it out, it’s at a very expensive rate, which again costs you more money to have to service that debt even if you’re a business owner. So what used to be cheap money before when they would print more money and it was cheap, almost like zero, right?
(25:19)
It was easy to make money off that, but now it’s not so much. That is the thing I want you to be aware of. So I watch the M two money supply. I watch that treasury yield. I’m watching even just interest rates on a day-to-Day basis. I’m watching all these things. I’m watching also to see what’s happening to the consumer. Right now, we’ve got 1.14 trillion of credit card debt, and they’re trying to tell us that’s good. They’re saying, well, 50% of it’s paid off every month. I’m like, yeah, but 50% of it’s not, and even the average credit card balance is $6,000 because the higher interest rates, that 6,000 cost them more money every month, and when you have that and you have food costs going up, and now because wages going up, now retailers and restaurants are shutting down businesses left and right because they can’t afford to keep the cost of food down when cost of food are growing up and their labor costs are going up.
(26:03)
I mean, we’ve seen at the restaurants, they’re now doubling and what’s happening. Less people are spending money at restaurants and then they have to start shutting down because we don’t have the cash to buy it. Now, I say, I just mean in general Americans, right? Because everything’s being driven up on us with inflation. We think it’s politicians and they definitely have something to do with it, but guys, it starts even with the feds, the banks, everybody that’s doing this kind of crap, that’s what’s happening. My prediction is we are heading into another recession. We should have, and by some standards we might already be in it because on a personal level, when I’m seeing more and more savings have been drained, all the covid savings people had built up is gone. Credit card balances have run up, and they’re still running up month after month after month.
(26:49)
That being said, guys, if we keep seeing that trajectory, eventually you’re going to get to a point where you don’t have any more credit limit or you don’t have the ability to keep paying those payments. You start defaulting. I say, again, you as Americans, it may not be you specifically, but as us as Americans, we start defaulting auto loans. That’s why I look at auto loan defaults and things like that. I’m looking to see what are the signs that shows anything that says this is coming. We can’t call the shots perfectly. We can’t say to the month when this is going to happen, but we can tell just like when the seasons change, we start to notice that summers starting to cool off a slightly bit, right? It’s getting a little bit cooler. Not yet. It’s still summertime, but it’s cooling off. Pretty soon we start to see the leaves change.
(27:25)
We start to see some things happening. We say, you know what? Fall is coming. Same thing I’m seeing here is that we know once there’s fall, there’s winter, there’s always cycles, guys, and we’re starting to see those cycles. Everything’s coming to a head, and unless all of a sudden money gets pulled out of your butt or somehow people feel less, more free or available to spend more money or there’s more money in their pockets, if that doesn’t happen, then things collapse fast and that happens. That means your retirement accounts collapse fast because then where do people go? Even before they start saying they can’t pay off their credit cards, they start trying to dip into the retirement funds, and when money starts being pulled out of that, that’s what happens. Your retirement fund goes down in value too because it’s not based on the stocks, it’s based on the actual ticker of that mutual fund.
(28:08)
The mutual fund can go up or down, even if the stocks inside of it don’t go up or down. Understand that it has its own stock waves regardless of the stocks in it. Yes, the stocks are the main driver, but if somebody sells off has a lot of money in a particular mutual fund, they sell off or an index and they sell off, guess what? That affects your price too. That’s what you got to be scared of or aware of either way. So anyways, guys, this is the time to prepare what I’m doing. I’m building more cash. I’m holding more cash. I’m still investing it, but I’m not putting it in places that are overbought like the stock market. I’m not investing in places where everybody says, go buy here. I’m buying a place that people say, Ooh, I think that’s going to go down.
(28:47)
I think you’re going to lose money. Putting money in real estate. Yeah, really, it hasn’t happened yet, but thanks for the tip. Hasn’t happened yet. It doesn’t mean it can’t happen, but I’d much rather have a real tangible asset, especially if we already know that inflation’s still happening, even to this day. I’d rather have a tangible asset than something that’s intangible, something that has no real value other than what algorithms and really AI is giving it, right? Because that’s what’s really happening. We’re not even doing the trading as much anymore. It’s not manual trades. It’s literally computers doing the trading for the big institutions, and that’s what the big money is, and that’s where it affects your life day to day. Do not get caught with your pants down. Whereas Warren Buffets would say, you always know who swimming naked when the tie rolls out.
(29:29)
Don’t be the one that’s caught swimming naked. Be the one that’s prepared. We’ve got lots of tools to help you here on this podcast. Also, we have our other Money Ripples YouTube channel, and of course, if you want to know how you can actually make passive income create now with real assets backing it up, you should be reaching out to us. Go to money ripples.com. Try our passive income calculator, fill it out, see if you can actually get a decent number. If we can get at least 15,000 a year, we should be talking to see how we can actually help you accomplish that in real life, guys, make it a wonderful and prosperous week. See you later.
Speaker 2 (30:02):
Thank you. Yes. Hey,
Speaker 3 (30:11):
Visit us online@moneyripples.com for more resources to help you fix money leaks and get your money working harder for you. Now.