It Has Begun and Nobody's Talking About It

It sounds like the economy is booming. Corporate profits are at record highs and the stock market keeps going up. But when you dig a little bit deeper, you start to see the cracks forming. Turns out it's not the entire stock market that's booming, it's the handful of companies that are carrying the rest of the stock market. But that's not all. The average American is slowly becoming poorer as the prices of things keep going up because of inflation and the job market continues to go down because of AI. The reason why you want to pay attention to this is because history shows us that when the markets are being held up by a few giants, a small crack can turn into big problems. So in this video, I want to show you what's happening in the economy and how you can not only protect yourself, but find investment opportunities that others might be overlooking. So stick with me until the end. The news keeps talking about how corporations are seeing record profits, which is helping the stock market break new record highs. But we're actually seeing a divergence here, where a few select companies are carrying the market while the rest of the stock market is actually slowing down. More specifically, these seven stocks known as the Magnificent Seven, Meta, Alphabet, Amazon, Apple, Microsoft, Nvidia, and Tesla have grown by around 14.9% in terms of earnings in Q3 of 2025. So you can compare that 14.9% to the other 493 companies in the S&P 500. This is a group of the 500 largest companies in the stock market. So the other 493 stocks have grown by around 6.7% profits in Q3 2025. Why does that matter? Because over the last 10 years, the average historical quarterly growth rate is 9.2%, which means these seven stocks are growing significantly faster than the average, while these 493 companies are growing slower than the average. But the real reason why this is so important isn't just that some companies are growing faster than others, because that always happens. It's also because certain companies are making up a much bigger percentage of the overall S&P 500. These seven companies by themselves make up around 33% of the entire value of the S&P 500. So seven stocks are making up a third of this 500 company valuation. And this is where things start to become risky, because if one of these seven companies doesn't do good, not only is it bad for that company and those employees, but now it could break down the entire stock market because it has such a big weight relative to the general stock market. And this is where some people get concerned that are we in a stock market bubble because some companies are carrying the entire stock market and they have these huge valuations that just don't make sense. But we're actually now starting to inflate this bubble rather than deflate this bubble. Because on one hand, normally when you raise interest rates, that's what pop bubbles, because when you raise interest rates, it makes borrowing more expensive and investors have to be more cautious as to where they invest their money. You want to be less speculative when it's higher interest rates. But right now, the Federal Reserve Bank is not raising interest rates, they're cutting interest rates. Cheaper interest rates mean it's cheaper to borrow money, I can make more speculative investments, I can make more growth-tiered investments. So generally, lower interest rates don't pop bubbles, they inflate bubbles. On top of that, the Federal Reserve Bank is also ending quantitative tightening. They ended quantitative tightening on December 1st, which means the Federal Reserve Bank is working to make money more loose, to encourage banks to lend more, to encourage people to borrow more, as a way to continue fueling the markets, as a way to continue fueling this system that we have right now. Which ultimately means that these seven companies have to keep growing like crazy. Because investors that are buying these companies are paying premiums, meaning they're paying high valuations, high multiples to invest in these companies. And the reason why investors are paying these high multiples is because they believe that these seven companies are essentially going to take over the world, that they're going to keep growing very fast. Well, if these companies don't hit that mark, if maybe AI doesn't grow as fast as some people might expect, if these companies don't grow as fast as investors would expect, that could trigger a sell-off. And if that sell-off happens, not only is it bad for that company, but because these companies have such a high weight in the overall stock market, it could bring down the entire stock market. And this is where investors have concerns. Now, again, it is very important for you to be an investor, and it's important for you to know how to analyze your investments, which is why, again, I'll put together a free investing masterclass for you, where I'll walk you through how you can get started as an investor and find hidden investment opportunities before everybody else. I'll show you the exact framework that my firm and I use to research investment opportunities before they hit the headlines. It's a completely free masterclass. There's a ton of value in there. And when you register for the masterclass, you're also going to get access to market briefs, which is my newsletter for investors, completely free. So if you want to get the investing masterclass and market briefs all for free, all you have to do is register. And I have that link for you down in the description below. But there's one more big reason that you want to pay attention to. When you invest your money in the stock market, you have two options. You can invest your money into an individual company, like I can go onto my stock brokerage and buy one share of Apple, or I can invest into a fund. And a fund is essentially a basket of stocks. And one of the most popular funds in the United States today is investing into a S&P 500 fund. That's investing into the largest 500 companies in the stock market. And a couple of the most common and popular ETFs to do this are investing in something like SPY, SPY, VOO, which personally I'm invested in as a disclaimer. These are just a couple of the many, many, many ways that you can invest into the Why does that matter? Because when you invest into any one of these companies, you're investing into these 500 companies. But the $100 that you invest into this fund isn't going to be distributed evenly across these 500 companies, it's going to go into some companies more than others. And you want to know which companies are going to get the most money? These ones right here. And the concerns that many investors have is what happens if people are buying these stocks at an inflated value. For example, at the time of recording this video, the average PE ratio in the S&P 500 is about 29. What that means is investors are paying 29 times earnings to buy a share of a company. So if I start a company and I made $1,000 of profit, and I wanted to sell my company, this company would be worth 29 times $1,000 of profit that I make over a year, which is $29,000. $1,000 of profit is worth $29,000. This is what the S&P 500 is trading at right now. You can compare that to the average, where the average is about 20 times earnings, which means, yes, stocks are trading for a pretty hefty premium over the average right now. Now, the reason why many investors will say that the markets are not overvalued, this is just a normal part of our cycle, is because partially due to AI. Artificial intelligence is changing our economy. So investors are saying, no, you're actually not paying this earnings. What you're paying is for the future growth that we're going to see in 2026, 2027, and 2028, because AI is going to help the economy boom so much that these companies are going to see even bigger profits, even bigger revenues, because they're going to be able to amplify everything that they're doing with this new technology. And that's why investors are willing to pay such high valuations, such high multiples, such expensive values for certain companies, assuming that they're going to be able to produce these blockbuster results because of this new technology. Again, it's a lot of hope and speculation. The concern is, what if it doesn't pan out the way that some investors might like? If we see good results, not amazing results, that could mean bad news, and that could bring one of these stocks down. And if one of these stocks go down, yes, it's bad for the stock, but that's what can then bring down the value of the And the reason why I keep emphasizing this is because a lot of investors are emotional. If we were to see a, let's just say, 10% pullback in the stock market, really not that big of a deal, but if we were to see a 10% pullback in the stock market, well, we have more retail traders in the stock market now than ever before. And a retail trader oftentimes doesn't have the best psychology of knowing what to do when markets go down, what to do when markets pull back. Now, a lot of times, institutional investors don't know either, but the reason why I say this is because if markets start to go down, it could trigger people to get worried. And sometimes that market pulldown can actually lead to that actual effect that people are scared about, which is a market crash, because if markets start to go down, people might say, oh my god, the market's about to crash. I need to pull out before the market crashes, and then that pullout actually causes the market crash. And the reason why I say this specifically here is because people have amazingly high expectations. And if these expectations get cooled down, because right now it's higher, higher, higher expectations, but if these expectations start to cool down, that's where people can say, oh, maybe AI isn't as powerful as we thought. Maybe this technology isn't as good as we thought. Maybe these companies aren't going to be as successful as we thought. We need to get out while we can. And not only would that pull out these companies, but that would pull down the general markets. And then if people get scared, and then they start to sell, that could cause the markets to go down even further. Now, what does this mean for you? Does this mean that you shouldn't buy? Does this mean that you need to wait to invest? No. This means you got to be aware, because the reality is markets go up, markets go down. Just because markets could be in a bubble doesn't mean that there's money to be made. And this is where you have to have the right strategy for you. And the right strategy is going to depend on what your interests are and how much time you have to invest, but you got to understand the different types of investing and understand the different opportunities depending on what stage of the market cycle that you're in, because markets go up and markets go down. If you are investing into passively invested funds, things like the S&P 500, great. Then you need a strategy that allows you to win when markets go up and down. And what I like to teach, again, I can't tell you what to do because I'm just a random guy on YouTube. Investing has risks. You're never guaranteed to make money when you invest. In fact, you will lose money at some point. So make sure you always do your own due diligence and never blindly trust a random guy on YouTube. But the way you win as a passive investor is by following a strategy I call ABB, always be buying, period. So if you're going to be investing into these passive funds, set up a system where it's every week, every two weeks, or every month, money gets pulled out of a check-ins account, and it's automatically deposited into these funds. And it should keep happening while the markets are booming, while the markets are crashing, while the markets are sideways. The only time you change it is when markets are crashing, you use that as an opportunity to potentially buy even more. That way, when markets go down, you use it as an opportunity to buy more shares of the fund because the reality is we know that over the long term, markets go up. And what this tells us is we can expect more volatility, not that our economy is going to break, not that the stock market is not going to exist in 20 years, but that we're going to see more volatility because we know that, hey, these are strong companies that have big profits, but investors are speculating a lot. And when investors speculate, they start to get greedy. And when they get greedy, they start to invest money that they can't afford to lose. So when markets start to go down, who do you think is the first to sell? It's the people that get a little bit too greedy. It's the people that start to get burned. It's the people that have too much debt in the game that shouldn't be investing money. And when they start to pull out, that can cause markets to go down, and that can again create investment opportunity. So if you're a passive investor, you don't need to wait on the sidelines, always be buying. Buy when markets are up and down, and it's proven that if you do that for long enough, you are going to win and build wealth in the system. Option number two, which I recommend everybody do some of this as well. You don't have to do this for your entire portfolio, but also be partially an active investor. Even if it's just 20% of your investment portfolio, and active investing is not trading, but this is investing in individual companies. Now, this takes more work, more time, more risk, but it also has more potential upside. And the reason why I recommend everybody do at least a little bit of active investing is because, well, if you really want to build more wealth, you need to have better returns on your money. And you're not going to get any higher returns unless you're taking on at least a little bit more risk. And this is where if you are investing in your own research and you're studying investments instead of just copying what's on Reddit and CNBC, but if you're actually investing in your research and you're learning where money is moving, it can give you a better shot to beat the markets. And this is where now you're studying, well, where is money moving? And now if you can it can help you grow your portfolio by thousands of dollars, more tens of thousands of dollars, more hundreds of thousands of dollars more over the course of your investing career, just because you got a little bit better return on your money. So active investing, you're investing in individual companies, more work, more time, more risk, for more potential gain. Passive investing, always be buying. And this is less risk, but understand that when markets go down, because they will go down at some point, nobody knows when, you use it as an opportunity to buy even more. Again, even with active investing, when markets go down, you should be buying more of that then too. But the idea is, understand this is what creates bubbles, speculation, debt, hype. When people get greedy and they start buying things without knowing what they're buying, because they just hope that it's going to keep going up, that's what creates bubbles. Eventually the bubble's going to pop. When is it going to happen? Well, we don't know. The Federal Reserve Bank is cutting interest rates, not raising interest rates. Cutting interest doesn't generally pop bubbles, that generally inflates bubbles. The Federal Reserve Bank is also ending, has ended, quantitative tightening. That generally helps inflate bubbles. So we know that the Fed is working to continue inflate markets. Does that guarantee the markets are going to keep going up in 2026? Well, no, not necessarily, but we know that they're working to keep inflating markets. So instead of just waiting on the sidelines, understand what's happening and when markets go down, because there's a lot of things that can trigger a market sell-off. It could be a bad earnings report. It could be a bad job market. It could be something going on with the money system. All of these things could trigger a sell-off and when that happens, be ready to purchase more because that creates an investment opportunity for you to come in and buy when most people are selling. And if you can find a good investment on sale, well, that allows you to grow your wealth even faster because now you bought a good investment at 30% off. Again, if you want some more resources, I have my free investing masterclass for you down in the description. And if you got value out of this video, the best thank you is a referral. So if you could, please share this video with a friend, family member, colleague, or fellow investor. That way we can continue to spread this type of financial education. Thank you. The Fed just announced that they're going to end quantitative tightening come December 1st. In plain English, that means that the Federal Reserve Bank wants to start printing money and boosting markets again as we go into 2026 as a way to stimulate the economy. This economic shift is going to affect everybody. It affects the stock market, it affects the...