How to Invest in 2026_ Don’t Fight the Fed

In today's video, let's talk about how to invest in 2026. So I read my comments and I see a lot of people asking me the same questions and they're good questions. For example, will the stock market keep going up in 2026? Are gold and silver already too expensive? Did we miss the opportunity? So today, I want to walk you through how I'm thinking about investing in 2026 and more Listen, the simple reality is that the Federal Reserve is making money cheaper, not more expensive. And when they make money cheaper, asset prices tend to go up. We're talking about stocks, gold, silver, just real assets in general. So that is not speculation. That's how the system is designed to function. Now, before we go any further, we have to talk about the concept of liquidity. So I want to break this down for you in plain English. Liquidity simply means how much money is available in the system and how easy it is to access. So when you have a situation where liquidity is tight, then borrowing is going to become more expensive, lending is going to slow down, and asset prices are going to struggle. But on the flip side, when you have a situation where the liquidity is plentiful, then borrowing is going to be cheap, money flows much more freely, and then asset prices are going to tend to rise. So I'll talk to you like this. So think of liquidity like water in a pool. And when the water level rises, everything floats higher. And when the water drains out, everything sinks. So right now the water level is rising again. So this is where a lot of people get confused. They're going to look around and they're going to say, and rightfully so, that prices are too high, people feel stressed out, especially financially and economically, and the economy doesn't feel strong. But I want to tell you that that's not how the financial markets work. What's more important is access to money. When liquidity increases, money's not going to just stand still. It's going to move around. It's going to seek a return. And it's going to flow into stocks, ETFs, gold, silver, precious metals, and anything perceived as a store of value. So this is why markets can continue going up when there's plentiful liquidity, even if the economy is not booming. And now I want to highlight this for you, the whole situation about interest rates. So the Federal Reserve controls short-term interest rates. And when the Federal Reserve raises rates, then borrowing becomes more expensive. And when the Federal Reserve cuts interest rates, then borrowing becomes cheaper. And cheaper money changes behavior across the entire economy. And we're talking about companies will refinance debts. Investors will take on more risk. Cash is going to earn less. It's going to yield less. So people are going to search for returns elsewhere. And valuations, they're going to rise because future profits are going to be So this is why rate-cutting cycles matter so much. And here's the key point for 2026. We are no longer in a tightening cycle. We're in an easing cycle which supports higher asset prices. Now let me tell you about the money printing. The Federal Reserve has restarted balance sheet expansion. So they're calling it reserve management. But at the end of the day, they're just printing money. That's all that's going on. So they're starting with 40 billion dollars per month. And that already started December 12th. So the Federal Reserve, they're going to tell you that, oh this is this whole money printing, it's technical, it's temporary, this is not QE, a quantitative easing. But I'll tell you that markets don't care what it's called. The markets care about what it does. And what it does is inject money into the financial system. And if you have more money, there's going to be more liquidity and higher asset prices. So the chain is simple and it's consistent. And you know what? I'll tell you this right here right now that this money printing is not a one-time event. Because some people are going to say that this money printing is not going to last long, they're going to stop pretty soon. But I'll tell you, here's the problem with that argument. The system requires liquidity. The U.S. government runs large deficits. Banks need reserves. Markets depend on stable funding conditions. So once the Federal Reserve opens up that liquidity spigot, then if they're going to try to shut it down quickly, then that's going to risk that something else breaks. So that's why liquidity cycles tend to last longer than people expect. So this is why balance sheet expansion usually comes in phases, not in short bursts. And you also have to think about the U.S. dollar, the consequences. When interest rates fall and money supply increases, then the dollar often weakens. Why? Because if interest rates fall, then you get paid less interest for holding dollars, right? And if you have more dollars in existence, then that means that your purchasing power for every dollar that you have is going to decrease. And a weaker dollar is going to help to push up prices for U.S. stocks, gold, silver, precious metals, and commodities. So for example, gold and silver, if you have them priced in dollars, then if you have the situation where the dollar weakens, then it's going to take more dollars to buy the same ounce of that metal. But listen, I just want to point this out, that if you have the price of gold or silver going up, the value of that gold or silver is not going up. If you have one ounce of gold or one ounce of silver, the price goes up, you still have one ounce of gold or one ounce of silver. What's going on is that the price is going up because the dollar is weakening. That's all that's happening. So this is one of the reasons precious metals tend to perform well during easing cycles. So this isn't ideology, this is simple math. And I'll tell you this, and this is not a surprise, everybody knows this, that the current administration does not want a strong U.S. dollar. Here's why. A very strong dollar is going to hurt exports, it's going to tighten global financial conditions, increase stress on the debt markets, and it's going to slow down economic activity, it's going to slow down GDP. But if you have a situation where you have a moderately weaker dollar, in that situation, that's going to support growth, it's going to help manage large debt loads, and make financial conditions easier. So dollar weakness is not an accident, it's a, you could call it like a release valve. Now I want to talk about something that every investor needs to understand. If the stock market falls sharply, then what do you think is going to happen? It's my guess that the Federal Reserve is going to step in, because we've seen this repeatedly. 2008, the financial crisis, 2020, the pandemic crisis, and whenever you have banking stress episodes. So that's commonly referred to as a Fed put, when the Federal Reserve comes to the rescue with their monetary policy. You know, lowering interest rates and printing even more money. Now why does a Fed put happen? Like why are they on standby to rescue the markets? It's because a market crash doesn't just stay in the markets, it spreads to credit markets, to employment, housing, consumer confidence, even government finances. And then at that point, the cost of not intervening becomes even higher than if they intervene. So when stress becomes severe, the Federal Reserve, they're going to respond with rate cuts, with liquidity injections, emergency programs, and of course, balance sheet expansion. So this is what people mean when they say the Fed puts. It doesn't mean that markets cannot fall. It just means that if there are major declines, they're going to be met with policy support. So a very good question is why is the Federal Reserve trapped into supporting the markets? And the answer is because the system today is more sensitive to liquidity than ever before. But why is that? So I just want you to think about it. Just look at the debt levels. The debt levels are higher than ever before. The markets are more interconnected than ever before. So in that type of environment, when you have financial stress in the system, it's going to spread much faster than before. So that means policy responses are going to have to be faster and even larger. Now looking ahead, I don't want you to overlook this, and this is going to happen relatively soon. In May of 2026, there's going to be a new Federal Reserve Chair. And of course, I can't tell you who it's going to be, but what matters is that this new leadership usually brings a shift in tone and priorities. And the shift is going to be towards an easier monetary policy, definitely not a tighter one. And they're going to want to run it hot. The economy, the markets, even inflation. They're going to want to boost the economic activity and asset prices going into the midterm elections. So let's connect the dots. In a world where rates are falling, liquidity is increasing, the dollar is weakening, and the Federal Reserve stands ready to intervene. Investments, asset prices, they're going to stand to benefit. This doesn't mean that investments are going to go straight up. You're going to see pullbacks. You're going to see volatility. But in liquidity-rich environments, dips tend to be bought. So I want to share with you my high-level overview of what I'm going to do in 2026 in terms of my investments. Because of these major tailwinds that have been set in motion, I'm going to stay invested. As you know, and because a lot of people have followed, I've made a lot of money in my investments in 2025. But I'm not going to take money off the table and lose to inflation in 2026. And I'm not going to wait on the sidelines hoping for a crash in this type of setup, in this type of environment. If there's going to be any dips, then I'm going to buy the dips. But listen, I understand the fear of buying at the top. Whether you're talking about stocks or gold or silver, you may ask, and it's a good question, how much higher can these markets go up? And I'm going to answer by asking you, well, how much more money can the government print? And are they going to stop anytime soon? I don't think so. And if they don't stop printing, then why should the markets come down? And listen, if you want to join my investing journey and see what I'm investing in, as well as receive additional investing content, then please, I encourage you to join my Patreon. 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