The Stock Market Just Crashed Buy The Dip

The stock market just finished one of its worst weeks of the year and everybody's focused in on which stocks are falling but the part that most investors are overlooking has nothing to do with stocks and has everything to do with the bond market. Why? Because for the first time in 2026 investors are now pricing in a more than 50 percent chance, a 52 percent probability that the Federal Reserve Bank will have to raise interest rates not cut interest rates in 2026. Now if you've been subscribed to this channel that's probably not too surprising for you because we've been talking about this potentially happening but now because investors are concerned about the Federal Reserve Bank having to raise interest rates more in 2026 it has the stock market hurting because of that. Why? Because oil prices keep going higher, because inflation keeps getting revised higher while at the same time the economy continues to slow down and this is where investors have concerns as to what's going to be coming next. So in this video I want to talk about what this means for your money, your investments, your retirement but also what this means for things like your mortgage rate. So let's break this down one by one. When the United States attacked Iran the first thing that happened was oil prices shot up. Now the reason why is because the Middle East is not only a big supplier and producer of oil but also they're a big controller of the global supply and shipping of oil because Iran controls something called the Strait of Hormuz which is where 20 percent of the world's oil flows through which means it has become significantly more difficult to get oil from one part of the world to the other which is why oil is more expensive. Why does that matter? High oil prices mean high gas prices, it means higher diesel prices, it means shipping costs, it means higher airfare costs and that means groceries become more expensive because of higher oil. Why does that matter? Because we've already been concerned about inflation even before the United States attacked Iran because we were getting the reports that inflation was going up not down in 2026 before these attacks started. Now that the attacks have started and oil prices have gone up the concerns are that inflation is going to get even worse. Why does that matter? Because the Federal Reserve Bank is the central bank here in the United States and what that means is their job is to control our money system. Their job is to monitor money and really they have two rules. Number one is to control inflation but also number two is to keep the economy strong. Well normally when you have concerns about inflation when there's high inflation what the Federal Reserve Bank normally does is they raise interest rates. That's what we saw happen between 2022 and 2025. After we had this huge inflation crisis from the pandemic the Federal Reserve Bank raised interest rates aggressively which is why mortgage rates went up, car loan rates went up and when they raised interest rates that was there to try to cool down inflation. When you have a slow economy you have a recession like we saw happen during the pandemic in 2020 that's when the Federal Reserve Bank cuts interest rates that way you can stimulate the economy. Cutting interest rates mean it's cheaper to borrow money, more people get a mortgage, more people buy cars and that means the economy is growing and so in 2020 the pandemic hit the economy was shut down and interest rates were brought down to the lowest levels that we have seen in history which stimulated the economy but the consequence to cutting interest rates is high potential inflation. That's what we saw happen. In 2020 interest rates were cut, the economy was then stimulated and then inflation became a problem. In 2022 inflation became a problem and that's when the Federal Reserve Bank started raising interest rates. They continued to raise interest rates to 2024-2025 and now they've been cutting interest rates. They've been cutting interest rates because we've been seeing a slowing job market we've been seeing a slowing economy and now we're in a tough situation where on one hand the economy is slowing. Our most recent data show that our economy has still been growing but not as fast as it was before while at the same time the job market is severely slowing down while at the same time inflation is picking up. You can start to see the problem. High inflation means we need higher interest rates. Slowing economy means we need lower interest rates. Well the Fed can't cut interest rates and raise interest rates at the exact same time so they have to pick what they're going to do and the decision that they make is going to impact somebody negatively but that also creates potential investment opportunities and that's where I want to dig a little bit deeper. By the way we have been covering all of this in Market Briefs. Again Market Briefs is my free financial newsletter for investors where every day we're working to break down what's happening with things like the economy, housing, stocks, crypto and global markets into a fun witty and easy to read newsletter. You can read it in less than five minutes every morning and it's completely free so if you have not joined Market Briefs yet I invite you to join because it's free and if you don't love it you can unsubscribe at any time and I have the link for you down in the description below. And this is where the Federal Reserve Bank now has to make a decision on what they are going to do. Up until essentially now the Federal Reserve Bank had said time and time again that we're going to cut interest rates in 2026 because we want to stimulate the economy, we want to stimulate the job market because the job market is not so good and we want to encourage the economy to grow. Well now investors for the first time in years are saying I don't know if that's true. It seems like we're going to have to raise interest rates and I've told the story a few times I'm going to say it again because while history doesn't exactly repeat itself it does rhyme. The last time we've seen something like this happen was the early 1970s. In the early 1970s we faced an inflation problem because in 1971 then President Richard Nixon took the United States dollar off of the gold standard which meant now the government could spend an unlimited amount of money, the central bank, the Federal Reserve Bank could print an unlimited amount of money and that boosted the economy. But the consequence was all that money printing caused inflation. So in the early 1970s we had an inflation problem because of all the money printing that happened. After the inflation problem from the money printing we then saw an oil crisis around 1973-1974 because the United States got involved in a conflict in the Middle East which caused oil prices to spike. So now we had an inflation problem coupled with high oil prices which made the inflation problem worse and that was when in response the third thing happened which was the Federal Reserve Bank had to fight the inflation problem and the way that the Fed fought the inflation problem then was they raised interest rates but it wasn't a slow gradual raising of interest rates it was a drastic raising of interest rates to fight inflation and to save the dollar because the concern was all this inflation all this money printing could destroy the dollar it could cause hyperinflation and so the Federal Reserve Bank raised interest rates all the way up to about 20 percent now to translate what that means that meant if you wanted to get a 30-year mortgage you were not going to get a six percent mortgage or a seven percent mortgage you were paying 18 a year on your mortgage that caused a economic slowdown it caused a deep recession it caused a lot of job losses but it saved the dollar now the question and the concern is are we going to see something like that happen again because that in the 70s was a stagflation problem stagflation is where you have high inflation and a slowing economy we've already kind of been seeing that happen inflation has been going up it's been a problem since the pandemic why because of all the money printing that happened and so what happened between 2020 to 2026 is wages went up but the cost of living went up even more you got a raise but your rent and your car prices and your groceries got more expensive than your raise so the average person is effectively poorer today than they were before the pandemic statistically well now couple that with the oil crisis that we're seeing because the middle east higher oil prices are going to make the inflation problem worse and now this is why investors are saying we might have to raise interest rates in 2026 president trump has been hoping for lower interest rates even until very recently he's been saying we need lower interest rates but the federal reserve bank is actually not federal it says so on the website that means separate from what the president says because their job is to protect money not to protect the president and so when you have the situation where you have high inflation and a slowing economy that's called stagflation it is the worst case scenario because that means the prices of things are going up but people don't have jobs and that's the concern and in that situation the federal reserve bank has to decide are we going to save the economy or are we going save the dollar we know how to protect ourselves against a recession we've seen that happen again and again and again we have had 16 recessions over the last 100 years but a currency crisis is much worse because that means now that the dollar has problems and when you have a currency crisis that's not so easy to fix and so while the recession is painful what's even more painful is a currency crisis and that's the concern that the federal reserve bank will have to protect themselves against which is protecting the united states dollar and this is where the question you probably have is what does this mean because the mistake that a lot of people make is when they hear this type of news about the stock market falling they see their 401ks down they see their robin hood account down and they say oh my god i want to sell before it gets worse because when you look at all the headlines they keep talking about how markets are falling it's the worst week for markets in 2026 how oil prices are going to keep going up the war might last longer than expected people panic and they freak out and what do they do then they sell and when you sell that's when you lose money well this is where you have to understand the game the reality is markets go up and markets go down you only make money when you sell you only lose money when you sell and the problem that a lot of people make is they tend to sell when markets go down instead of buying and this is where it really helps to study some of the best investors because what warren buffett likes to say is be greedy when others are fearful be fearful when others are greedy when markets go down and create some of the biggest and best buying opportunities because it allows you to come in and buy good investments at a discounted price and this is where everybody in the internet says just breathe are you out of your mind it's going to get so much worse markets are going to collapse we're going to see pain in the dollar we're going to see this and that happen well so what are you saying that the economy is not going to exist in 10 years are you saying the economy is not going to be bigger than it is from now in 10 years are you saying that none of us are ever going to have a job again if the answer is no we think that the economy is going to exist and the economy is going to be bigger in 10 years then you want to be buying good investments when the markets go down i call it abb always be buying by when markets go down by when markets go up by when markets are sideways you just have to know what your strategy is when you're buying because if you just find broad pieces of the market great automate buying those etfs of the s&p 500 automate buying the etfs of the total stock market automate buying your dividend paying etfs and whether the market is up or down you just keep buying the only time you change it maybe when it's down you buy even more now i get it i can't tell you what to do because i'm just a random guy on youtube okay investing has risks you are never guaranteed to make money when you invest in fact you will lose money at some point so make sure you always own do your own due diligence i never blindly trust a random guy on youtube but the reality is market downturns create some of the biggest and best buying opportunities of all time because they allow you to buy more with less dollars you just can't be a traitor and expect to make your money back in two days and so when you see downturns use them as buying opportunities but be patient what i like to talk about is when markets go down buy in phases on the way down no one knows how much further is going to go down something could happen over the weekend the war ends over the weekend markets rally on monday there's a chance that the war gets worse and markets go down even more your job is not to predict what's going to happen your job is just to keep owning and acquiring more and when markets go down you buy more period when markets go down further buy more aggressively now the other side is you can be more of an active investor which is another great option and becoming more of a necessary option for many people when i say active investor i don't mean trader i mean investing your money into specific industries or sectors or stocks based off of where you think money is moving doing the research to identify where opportunities are because there are some industries that are going to benefit more when there's conflict there's some industries that are going to benefit less when there's conflict and what you want to understand is where is the moving and if you can identify where money is moving and it doesn't have to be because of a conflict it could be because of where the economy is moving that can be a great buying opportunity for example we know that ai is going to need more energy we know that there's a lot of money going into ai and ai is going to be a big thing five years from now we know that there's going to be more money going into robotics we know that there's all these innovations happening well if those things that you believe in now i'm not telling you what to buy but if those things that you believe in are going down because of things happening in the broad economy that can create a good buying opportunity that's the way you want to think identify what is your investing strategy find what it is what you want to buy in and when that thing that you want to buy goes on sale buy more of it when it's on sale it's kind of funny when cyber monday happens black friday happens people got a whole list of all the things they want to buy and then when it's on sale they will stand in line wait there quit work do whatever you got to do to buy that thing that's on sale but when it comes time for your investments in your wealth the researching goes out the window one of my teammates was just telling me that the average investor spends more time picking toothpaste than they do picking which stocks they want to invest in crazy but it's true and you got to decide which side do you want to be on do you want to be on the side that's panicking and freaking out and investing in stocks the way you pick toothpaste or even less research than that or do you want to be the person that's actually analyzing what it is that you want to invest in and then use a downturn as an opportunity to buy more of that thing again i can't tell you what to purchase but my goal is to show you how to think like an investor because that's what wall street does that's why they get rich and you don't and i want you to be the one that's building wealth because well we need more good people with money again if you want to stay up to date on what's happening market briefs is a free resource that i put together my team is breaking out what's happening in the markets every single day it's super fun to read it's easy to understand i have the link 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 a fellow investor that way we can continue to spread this type of financial education thank you president trump just confirmed that he wants to get rid of your income tax take a listen i believe the tariffs paid for by foreign countries will like in the past substantially replace the modern day system of income tax taking a great financial burden off the people that i love