Investors must understand what just happened this week! My Big Buy!!

All right, back to our regularly scheduled Saturday news roundup videos. Today I'm even gonna tell you about a new stock that I just added that's deeply discounted, so let's get you filled in. Now earlier this week I put out a video explaining why I've been MIA for about a week and a half. I've never missed a full week without a post here on YouTube so it's been a frustrating week since it was out of my control. In the video I said that YouTube might be pushing my hand and they're making it very hard for me But guess what, YouTube? I'm dedicated to empowering you and to getting you this information that you can trust to help you where I can so I'm going to persevere. In future videos I will be putting a visual and audio disclaimer like this. And I made this channel to make investing simplified. Remember that all investing carries risks This is not financial advice and I'm not a financial advisor. So bear with me and we'll get right to the content. On the real though, I really don't blame YouTube for what they're trying to do. They're trying to make it safer for you, the viewer. And I love that. I want to protect you, I want to empower you, I want you to get nothing but results. And so if this weeds out the terrible bad content out there that's actually hurting people, I'm all for it. You told me, I think, a couple of weeks ago that 7,000 on the S&P by the end of the year was realistic. Do you still think that we could get another 5%? That's what it looks like. It's 5% between now and then. Do we have that in us? Scott, I mean, 5% is just an average fourth quarter from 1950 to 2024. But we have the Fed easing after an extended pause. So that's 1998 and 2024. So I think that 5% might be the base case. I bet you it's gonna end up being more like 7% or 8% or even possibly 10%. So I think 7,000 is the low of what we can end the year at. Wow. So let's get to the news. Right now with this crazy earnings season that's happening this week and that has just happened, tech earnings and investor reaction is for sure the first thing we need to talk about. Major tech firms like Meta and Microsoft reported results that stirred concern despite some strong numbers. For example, Meta's stock dropped about 11% or 12% after announcing large upcoming spending and a big debt raise. The broader market fell as well, the S&P 500 and the NASDAQ. The implication here is that even in strong earnings season, the quality of what companies are promising like heavy AI investment or higher costs matters a lot. This suggests market sentiment is shifting from growth at any cost toward more cautious growth expectations. Speaking of this one, I have a hot take and I made a new buy in my portfolio of a stock that I've never owned before. As soon as I saw the news and I saw this stock drop like a rock and then I really analyzed their actual earnings report, it was a no brainer to me. So right before I bought it, I told my Patreon group that I was making the buy and then I added it to my portfolio. This company is Meta and it's the most obvious buy in the stock market in my opinion right now. Meta reported about $51.2 billion in Q3 revenue which is up about 26% year over year. The daily active users and platform engagement continue to show strength, giving confidence in the core business's scale. The company also raised its 2025 capital expenditure forecast to about 70 to $72 billion. So if this company just showed 26% revenue growth year over year, why did it drop so much? There's a massive one-time tax slash charge. Meta recorded a large one-time hit of around $15.9 to $16 billion which drove its Q3 earnings per share down to about $1.05 per share, well below analyst expectation. Excluding the charge though, the adjusted earning per share would have been much higher, about $7.25 but investors focus on what's reported and what it signals. They also explained that they're going to be having huge costs and that their AI expenditure is gonna be going through the roof. Meta's aggressively ramping up the investment in AI and data centers, hiring expensive talent and increasing infrastructure costs. While long-term that may pay off, investors worry about near slash mid-term profits and cash flow. So since I'm investing for the long-term, I don't really care what happens quarter to quarter or even year to year to be honest. This is an obvious deal to me, just like the dip in April was an obvious deal and the reason why I was dipping was emotional and not because of the company's actual strength and so to me it made a lot of sense and so I bought in pretty heavy. The next thing to report this week that happened was the Fed meeting and the fact that they made another rate cut. The Fed cut interest rates by 25 basis points but its chair Jerome Powell emphasized that further cuts, like in December, are not necessarily a given. Markets had high expectation for more cuts so this not a given line cools enthusiasm a bit. Higher interest rate expectations tend to pressure equities, especially growth stocks, and benefit fixed income or higher yield sectors. The other thing that was said that was very interesting was that quantitative tightening will end as of December 1st. Looking forward to more information on that, that doesn't necessarily mean that quantitative easing is happening right away, but pretty clearly what it's going to look like is the rates are gonna come down, they're going to end the fact that it's so hard to borrow money and it costs so much to borrow money and then if the economy's still down and unemployment is still high, then what we're gonna see is probably some quantitative easing, and what that means is they are going to be pumping some money into the system. I'll have a more detailed and in-depth video on this coming out early next week, but you definitely should prepare for this and inflation should skyrocket in the next five years. The third big thing that happened this week was the whole US-China situation. While there was a meeting between the two presidents and some positive headlines, markets were disappointed that the results were modest. Trade tensions, rare earth export risks, and geopolitics still loomed. Markets often rally on these deal breakthroughs, and since there wasn't necessarily really a deal, more like just a standstill for a little while, that expectation fell short and so nothing really happened there. But this week's news definitely shows that the market seems to be pivoting from everything is going up to, okay, we need to see proof. Big tech results that scare about future spending, a Fed signaling less accommodation, and geopolitics that don't deliver surprises all raise caution flags. If I were to pick one big takeaway from this week, I would just say risk is definitely elevated. Good news may already be priced into the market, and it's actually priced to perfection in a lot of these sectors, and so if we just get okay news, that's what's dropping the market down because it didn't meet those expectations. Staying selective and watching for actual confirmed signals, not just hopes, is gonna be your best option moving forward, so I'll be sure to report on those as we see them. So what to keep an eye on specifically for the rest of November. November 7th, we have the employment nonfarm payrolls. Strong or weak could change rate cut expectations. November 13 is the CPI inflation. Any surprise here could move yields and risk premiums. Definitely be watching for developments in the US government shutdown. Trade slash trade policy announcements, especially with China. The retail and consumer data is something to take a very, very good eye on and watch especially November and December. Early holiday spending trends, consumer confidence, corporate guidance, and then also sector rotation signals. Watch if financials or value start outperforming growth or tech, or if defensives pick up. And again, in that video that's coming out next week, I'll definitely be hitting on that as well. Remember to watch either of these videos to keep you going strong in investing, and remember to keep investing simplified.