[Music] Because that was one of those companies Especially during the pandemic that we Traded on and did pretty well on but Obviously it's pulled back I think like Right now I'm looking at that 60 it Traded at well it closed at 65.94 today which is Far Cry from where It was at but the cloud space right most People think cloud computing but datadog Is really liking that cloud monitoring They were talking about and I was Reading a few articles about it It's a it's an interesting space because There's so many companies that are doing It but there is like how do you Differentiate who's doing who's better Right like because Amazon is in a space They have an Amazon Cloud watch and I'm Sure Microsoft with Azure has a cloud Service so it's like do we try to find These makeshifts not even makeshift but These newer companies that are in the Space which makes it even cloudier all Pun intended or do we look for a company Like datadog or or uh Dyna dance or Something like that where it's got to go With the original I ask the latest Ladies you want Drake you won't fit Drake Puerto Rican poppy may get it done for One weekend in the Bahamas but you want OVO drink right fake Drake He got banned yeah they banned him
Tough I swear if y'all thanks for Everyone too dated dog for the streets Let it go let it go okay I would trade It to the downside I was shorter but I Would not invest in a long term I mean I Keep saying Um American exceptional and one day Maybe we should have a talk about Capitalism and how it has failed and Bankrupted the country but We cannot name 25 exceptional companies in the United States of America Right we're just going off gross revenue Um kudos to the staff and management Team at data dog nothing personal just Right now as a stock is not something I Would want to invest in and my framework Is always what I put my life on the line For my child's life on the line no if That's the case It go it goes back to that competitive Mode right when you when I was looking At it I'm just thinking of like from a Competitive what separates them or keeps Them away from their their closest Competitor in that new space and I'm not I can't really find the answer There's nothing there and there's other Companies just that are low-hanging Fruit like PepsiCo that are better Because you're not competing against Sector you're competing against the Entire field right um like cardi made
Her statements on inflation and I told People a year ago Carter get get mad and Do a little invest in a second boy It's gonna be tough like everyone is Your competition Um so no I wouldn't touch the dog I will Leave them alone and if the company Isn't like top can overall and Definitely number one in their space Right now I wouldn't touch it even if You're trading as well because you may Get a great pop and I know there's some Stocks that are low float right now We'll talk about Bed Bath and Beyond Later But if a company's value is too low the Probability of it going out of business It's too high and you don't want to be Caught Um with your calling your broker and Saying hey can I get my money out of This I can't liquidate it's not worth it It's not worth it it's really not Um It's really not All right let's go into this one when is A clear signal that the recession is Over and the stock market should see a Bull market or a stock market will turn Both when when's the recession going to Be when's the signal for the recession That is over and what's the signal that We're going to see bull market yeah That's a great question
Um number one when the Federal Reserve Stops hiking rates So even if they pause that's not a good Enough reason they have to stop raising Rates number two whatever that yield Curve stops inverting so everyone I want Everyone to put in chat in real time to Do the homework what is the most Important yield curve In the bond market to measure if we have A recession Because I want to make this more Interactive this year Um And if you pair two of them together That's why I say if you trade stocks and Bonds together or talked about it on Episode 70 you will know exactly where The market is going the funny part is Now when the yield curve inverted this Time the bond market fell apart with it At the same time which normally does not Happen which leads me to the lessons That you have to always do your own Research and do in any conventional Wisdom Does not work when there's a Black Swan Of it So you have to be prepared like even Indexes if all indexes fail at one time And the entire biomarker fell in Texas What would you do You have to prepare for the worst case Scenario for me I was short author and I
Would never open up my TD Ameritrade and Look at my long term until the Carnage Was over right Um but yield curve converting interest Rates Um and then once again I'm keeping my Eyes peeled to see when China will boom I know they're reclassifying some of the Coveted deaths To kind of play with the numbers but If I see like K Webb and Alibaba start To go up and we have a monsters run for Like a quarter or two Um and I don't know that the recession Is over maybe we will have a short live Recession because there's some politics Behind the scenes that are stopping them From announcing it Um maybe it will be short-lived but The FED has to stop raising interest Rates and that yield curve has to stop Inverting and then we'll be clear yeah We spoke and if you're not familiar with The language of inverted yield curves And bond markets when we sat down with Steve leesman maybe two or three months Ago I mean he gave uh absolute Master Class exactly how that works Um but when we spoke to one of the Things he said about when they were Going to stop raising rates and Everybody had estimated that March would Be the time and it probably get up to About 4.9 percent and now I think
They've changed that maybe at maybe 5.2 Five and a quarter percent so we'll We'll see within the first quarter if That is true and indeed we will see uh Into the raising of the rates so all Right so Should people be buying stocks right now Yes they should be buying stocks two Tech two in the first buy index funds For those who don't know and I've said It before indexes are an All-Star team They put the best companies on the Planet inside of one basket Set in forget it what I don't want us to Do this year is over analyze and not Take enough action Because if the net worth isn't Increasing year over year the share Count is an increasing year-over-year All the information in the world does Not mean anything Um now we are back to bully ball in the Market like I was 1994 95 96 99 0105 0708 2013 to 2014. the companies That are really great are amazing and The ones that are in the middle of the Road or just flounding around aren't Getting destroyed so You can only invest in quality and we See inflation and for the favorite book On investor money Master the game please Go read it I know it's thick but man It's tons of gems in there During every 10 or 15 year period you're
Going to have an increase in inflation You cannot outrun inflation even for my Entrepreneurs yes you can make a lot of Money for a five or ten year period but At some point you're going to have to Learn how to replicate yourself and one Of the best things that entrepreneurs Can do is to put their capital from Their business into companies that are Better than them ran by better Management so you can then not have to Hire as many people Um and if you don't invest inflation is Going to continue to creep up and kick Your ass on the backhand so if inflation Continues to be six seven eight percent And you're going to get 10 to 12 out of Index fund at the prices in which I call You have to have your money working for You please put it in chat your the job Of your money is to have your money Working for you to make you more money Babies so people should be currently Investing even though the stock market Is probably going to go down It's just it's the best time to buy Everyone wants to buy it at the top and That's the wrong time to buy Invest in invest in index funds For the long term should they be Investing in ETFs After quality it's their quality I'm Vanguard biased but it's QQQ a quality ETF
Yes but you're going to have more Drawdown with QQQ yes because it's Tech Heavy Tech heavy yes it's xly equality ETF Yes but I don't like Um a lot of the The spiders are okay I like Vanguard Just because of how much control they Have in the market Foreign If I can ask you like would you invest In the Let me keep it clean if you can invest In some of the founding families and Founding companies of the United States Of America would you do so everyone who Usually says yes if so then I would Focus on Vanguard the spiders are good Um xly solid but I'm v-o-v-t-i vgt which Is the tech Um index That's all you need sometimes we make This so complicated it doesn't have to Be Um and of course when you're in the Middle of the storm it feels like Sunshine is never going to come when It's raining on you like crazy But for those of us that have been Through 2007 and eight Um and if you missed any other crashes Before then two years later you're Always like damn I should have put Everything into the market it's scary
While it's happening but yes you should Invest in a long-term minimum Five-year-old and and Um even when you when you're down put More money dollar cost down Dollar course down if you're down 20 on Your portfolio on the S P 500 Put more in And then you will be down maybe 10 15 But the whole idea is to hold it for a Long period of time 30 years ideally and Then also too if you're buying at the Right prices you shouldn't be down That much um there could can be some Bleeding but if you're waiting for the Right prices especially like these Decade level kind of lows that we've had You shouldn't be down 40 50 25 Um but nonetheless the number of shares Plus the length of time invested And it's going to give you a lot more Freedom and I know it's scary and I know Some days you don't look at your Portfolio But this the one thing I want to tell Every entrepreneur And everyone that wants to be rich the Person that sticks to the plan the Longest usually wins the most Everyone can have a hot you know Year or hot three months Um and this is why I mean we've been Talking about it behind the scenes like Even with the show like I never laid
Based on what whatever the topic was I Always went based off principle because That was the case like last year would Have been all about nfts and crypto and A year before that would have been all Options like when you go study the Entire history of an asset class private Equity is going to get banged up this Year Pretty bad but if you invest in private Equity and hosts and Quality Companies Um SpaceX like encoded for a few years You'll be A-Okay this is a game that Goes to those that are patient and that Can hold for half of a decade or a Decade or longer and it's not fun but When you get freedom And you're able to provide for your Family without thinking about it it is a Hell of a Feeling Please everyone put in chat I'm here for The long term to get rich we can't talk About generational wealth and we're Scared to hold for four or five years It's impossible it is impossible [Music]
