Stock Market CRASH just started

So is this the beginning of the stock market crash? That's the subject of today's video and I noticed some patterns in the market today which I wanna go over to you and we gotta talk about it. First, tech stocks are down. Inflation is sticking around and companies, they're trying their best to stay positive in this environment with this crazy tariff stuff that Trump is up to. Trump and his people keep all saying, hey guys, you're all gonna be rich, it's all gonna be awesome and they act like the tariffs are big money making, scheme for you but it's really for them because you're the ones paying for it. Just wanna make that clear. When you look at the chart of what's going on, you can actually just see it. Basically, tech got walloped today. Oracle is down, Nvidia was down, Tesla's down, you can see right there. Some of the big movers today was Marvell was down, what, 18%, Dell was down about 9% and when you look at it all together, you actually see a pattern. So what is it? Both Marvell and Dell, they were meeting Wall Street expectations in terms of like your revenue, these kind of things but when it boiled down to what Wall Street didn't like and why the stocks are basically crashing is their data center growth is slowing. This is both for Marvell and for Dell which is obviously connected because I've told you guys this before, there's gonna come a point when companies are like, you know what, I want return on my money. You told me the AI is gonna be awesome and I guess we're all gonna be making money on chat GPT. You then invest in all this stuff and you build whatever data centers that you need and you realize, oh my God, I need power and there's a problem there, of course but there's gonna come a point when you can't invest as much as you did before. You've already built said things, you just don't need any more and you're already not making money on the investment that you made. So what's crazy about this thing and we can talk about Marvell, I think they said, we're hoping things will be better in quarter four but maybe data center revenue is not gonna be great, it's just gonna be kind of flat and then Dell was like, I think last quarter they had like 12 billion of data center sales or service centers, I think that's what they call it and then this quarter it was like 6 billion so it's halved than it was before. There's still money coming in but the growth isn't there and that's what Wall Street always wants all the time is grow, grow, grow, they want infinite growth. So herein lies the problem and it gets really interesting. If you look at the Trump people, you look at the GDP numbers, et cetera, the Trump people are always bragging about, hey guys, look at all of this capital expenditure, look at all these companies investing in America, et cetera. That's sort of what they're bragging about but much of this investment is in data centers for reals and in fact, it has gotten such as a crazy point to where like this construction of all these data centers is more than office construction and you can actually see this chart in the New York Times. It's pretty insane and it reads, AI infrastructure has overtaken office construction. Now, to be fair, a lot of people are working at home so maybe you don't need to build so many more offices but it just shows kind of where the growth is. So if the growth in our economy is data centers and if there's a possibility, which I was seeing articles about this that data centers is gonna be a larger portion of our GDP than consumer shopping, like something doesn't add up. So like it just doesn't make sense and then I see the Trump people bragging about, hey guys, look at how awesome our GDP growth is, look at all these companies investing in America but it's like you're investing in data centers, you're investing in AI, you're investing in crypto, you're investing in things that the basic end game is to replace human workers. Like it doesn't make sense and I always have to point this stuff out to you guys. Now it is true and this is going just from an investment perspective, it is true there'll be some people who make money off this stuff. If you believe that the AI is real, right? This is what you have to believe and you believe that this'll help company margins and we can save money by firing all said people but I just don't think this is sustainable. This is my opinion on this stuff. I think there is a future for data centers, AI and cloud can be this kind of stuff but how big is that future gonna be and what if companies end up not getting any return on their money and that stuff and what if Trump sends us to a crazy recession, are you still gonna see more investment? And again, in replacing people, that's how I see that. On top of that, if you ask consumers, consumer sentiment is down, it's like a three month low. Basically people see that inflation's gonna be higher in the future, that's sort of what they're predicting. So when consumer sentiment falls, it basically means I'm nervous about the future and I just don't wanna make big purchases, right? I'm concerned about my job, these kinds of things and in any of these situations, right? When the Trump people say, hey guys, our GDP is awesome. The GDP numbers that came out this morning are impressive. The US economy grew at 3.3% and you look at the numbers, well, it's because you're all invested in data centers and that's like propping up our economy. I mean, it just doesn't add up and so what I always tell you is you will know your own situation. Don't let me tell you, don't let Trump tell you, you know how much stuff costs at the grocery store, you know how much your insurance bill is, you know the rent in your neighborhood, you know your fuel costs, you know all of these things. Just in terms of like the numbers that I see, when consumer sentiment is down and our economy is being propped up by data center investment, I just think there's a real problem and then this is sort of where I mentioned like in the beginning of the video, would this be the market crash? If more and more companies come out in their earnings reports and basically say the same thing of like, hey, our data center growth investments and our data center sales are slowing, we got a real problem because that's where sort of supposedly all the growth in Wall Street is, it's like it's this massive bubble and then it's even more crazy, they were bragging about today, it was like Lutnick was saying, hey everyone, we released our GDP numbers on the blockchain. The Commerce Department, together with the President of the United States of America have now put these record GDP numbers on the blockchain. So we've got that crypto president with the greatest $30 trillion economy in the world putting out those numbers on the blockchain. This is how the golden age. And I'm just like, okay, so why am I excited about that? So, and then they'll go on and on and say, well, but Trump's the crypto president and we're all gonna be rich on Trump coins and crypto. I'm just like, okay, why am I excited about that? And this is sort of why it's hard to talk about stuff because there's so much hype out there and when people are making money off the hype, because you can make money in a bubble, you totally can, right? If you bought at the bottom and it rose up the next couple of years and people just keep buying it, right? Because essentially what this ends up being is I make money as long as other people buy the thing that I bought before, right? It's a hard word to say. It's like a greater fool theory. I'm a fool for buying a bubble asset, but as long as I can find more fools to buy the bubble asset, hey, everything's jolly. Now, to be fair, and I always say this, there are certainly companies who are gonna profit off of stuff. There are certainly companies who make money, but this is where it's gonna get interesting where I mentioned in the last video, it was just reported in the Financial Times and other places that China really wants to get into the chip making, the data center world, et cetera. And if their costs, right, come in much, much less than the USA, if they can do it more power efficient, if they have more of the rare earth materials and sort of the stuff they need to make said things, it's gonna be really, really tough for the USA. And I was thinking about this, Trump, they recently made a big investment in Intel, or, well, that's not right to say it. They said they're taking a 10% stake in Intel and they're talking about possibly, is the government gonna take stake in Lockheed Martin, defense contractors, et cetera. And now just talking out loud, I wonder if they're gonna start talking about other types of companies because today there's more warning signs in the market. It was Spirit Airlines. The headline was like, hey, we just declared bankruptcy for the second time in a year. And I'm just like, how's that even possible? I've never flown Spirit, so I don't really have much opinion in that other than I know it's a low cost carrier. And every time I turn to the news, there's always Spirit people sitting in line and they're always angry, et cetera. And I'm always like, I'm never gonna fly with Spirit. And I think a lot of other people probably saw the same news that you saw and I saw and they're like, yep, I'm definitely never gonna fly for Spirit. So therefore, declaring the second bankruptcy in a year. It could be for all we know, there's like, hey, what if we can declare six just like Donald Trump? Donald Trump would really like this. And they'll buy up said company. So yeah, you never know, you never know. And full disclosure, the airline situation is always an interesting one because it actually, and this is where it gets tricky, I do want a free market, right? I want the best companies to survive. I don't want to say governments to pick winners and losers. But in some cases, you actually do need the government to subsidize some industries because it does help all of us. So you could certainly make the case that airlines are infrastructure. And if the government invests in better infrastructure, you can vitalize business all around the world. You can make it better so that better airports attracts more international people to come in for tourism, et cetera. So I'm not against necessarily government investments or subsidies, I know it gets tricky, but outright taking control, then installing your person in or insider trading of like, hey, my buddy's got an airport or airline that needs help, can you help out Mr. Trump? It sets us up for a whole crazy situation which I don't want to get into. And that's why I said that the stuff gets this complicated. But the main thing I want you guys to get out of this is to just understand sort of why things move and when they move. And I know people often ask that. There's another thing going on also, the tariffs. I just saw it flash in the news and I'll make a separate video on that because I literally just saw it right before recording. It looks like the tariffs have been struck down in court. I think it's a lower court. This will probably go to the Supreme Court because the whole thing is all about, does Trump have the power to just do tariffs whenever he wants? I'm going to say, no, he doesn't. But that's why it's going to go to the court. It's all based on Trump saying, hey, it's all an emergency. We've got to put tariffs on everything. But then the end game and sort of the results just don't make sense because Trump says, I'm going to put tariffs on everything to attract all this investment stuff, et cetera. And then the investment ends up just being a bunch of data centers that props up a bunch of numbers in our economy. But it doesn't make sense because if the Americans are consumer-based economy and we're talking about replacing consumers and workers with data centers and AI or whatever, like nothing adds up. And so I just don't see this ending well. That's my opinion on this stuff. And so if you just want to talk about money in general, if you want to put money in the market, your safest bet is an index fund. If you want to be more safer, you can get like a balance fund where it's part bonds, part stocks. Pay off your debts. Make sure your work is secure. Make sure you're always got your feelers out there. At the moment, everything I see in the news, it looks like companies aren't hiring, but they're not necessarily mass firing either. That's what I've been seeing. But I mean, that could change anytime. So this is sort of, we're watching all this stuff together. I try my best to just tell you guys what's going on. And one thing I'll just say, you can't trust much of what comes out from the Trump people. I mean, this is honest. And ultimately the markets do pick up on this stuff, be it the bond market, be it individual company earnings. And it's hard to hide all of this stuff forever. So if indeed everything's popped up by data centers and that stuff is slowing, man, I'll just tell you, look out below. So that's my thoughts on this. I wanna hear yours. And I'll catch y'all in the next video.