[Music] Well let's talk about some investing Stuff Ray dalio yeah he retired from Bridgewater which is the largest hedge Fund in the world I believe yes last Week um so what's the deal with that That was something that kind of caught People by surprise what does this mean For the overall Market what's your Thoughts on Ray dalio stepping down Um he's been planning this for nine or Ten years Um it's twofold so I told on one end People shouldn't Panic solely because he Chose to step away because he's been Planning this for a long time I've Actually lost count of the number of CEOs and chief investment officers that Have stepped down but I do truly believe Seeing the landscape that we were in He wanted to go out on a high horse and Didn't want to face the recession that We're well it hasn't been announced yet But the recession that we're in and Whatever's in between the recession and Depression I think we're going to hit That level sometimes next year I think He wanted to go out and be able to enjoy Parts of his life he sacrificed a lot Lost his son Um put a lot into Bridgewater gave up a Lot of time wrote two amazing books that I all recommend everyone go see I mean Go go read
Um huge loss for the investing Community I cannot lie and say well It doesn't have an impact on the market Because I think if he thought the market Was going to turn around in 23 and 24 he Probably would have stayed So it's no different if Buffett chooses To step down summer of next year That is going to have an impact on the Market so for the next 18 months or so Um I think it is a signal for how rough Things can be for the next year to 18 Months but he deserves to retire he has This in motion way before the 2020 Recession came about and even so now but I do think he wants to stay out of the Storm that is coming next year The fund itself is performing well but Like you said this is part this has been In the works right like this is if you Watch the show on HBO succession like This is the definition of a succession Plan right so like he steps down in 2017 As a CEO in 21 he steps down to sharing It and even now like he's transferred a Majority stake of the board but remains A meaningful owner in the fund right so Like he still has Equity inside of this Fund but he's also stepped down as a one Of the the three co-chief investment Office but he's going to remain as a Chief investment officer mentor and so Like obviously in that role I'm gonna You know I could just imagine him seeing
Who's going to be the next person or the Next couple of people a group of people Who'll be able to facilitate in his role And now he has a Hands-On relationship With them being able to Mentor them to Actually make sure that the funnel is in Good hands because at the end of the day It's always going to be attached to him So you always want to make sure that it Does well but it does free up some of His time to actually do things that he May want to pursue so yeah this is a Succession plan Is there something to be concerned about Yeah if it was like out of nowhere then It I I could see it like wait all right This is a little tricky right like they Keep saying it's going to be recession Well by definition it hasn't really been And then obviously we saw what Jamie Dunham said today if you didn't he says In uh what is it six to nine months yeah Six to nine months even though I guess The first time in history we need three Or four months three or four quarters of I mean yeah we've been in one we've been In a recession the definition has Changed but the I think the last like That Tipping Point is is the jobs report And so like when they start seeing the Jobs report or jobs being created or Unemployment rates like turning inverse Where the all the employment rate is Going up and jobs aren't being created I
Think they said the number it's probably Around like Like a hundred thousand if we only had a Hundred thousand jobs Um on a jobs report then it would be Like a sign like okay A recession might be here but uh Sessions are right here that there's no No I'm saying by definition it is but One of those indicators is like what's The unemployment rate how many jobs Would be created the fact that the job Support I think there was almost almost 300 000 jobs created uh and what's Between in September no was it August Maybe August last jobs report Um it still showed that it was it was Positive so once that starts becoming Negative then it's like full-on Recession by definition yes too but it's Really not though that's what I'm saying What I'm saying about two to three Quarters by definition that is that's The only that's the only definition yeah Two negative and always what are the Quality of the jobs because I feel as if As soon as they announced recession The most valuable companies are going to Skyrocket to the upside you're going to See them to deploy Capital so fast That the average person is not going to Have a chance to catch up and then buy In Yeah yeah we got it you know you just
Gotta go buy the the language a Recession is two negative quarters of GDP growth um so all of these new Indicators and No it's really not what it is and we've Been in a recession for the last two Three months so yeah I don't understand Why they just don't say it's a recession Now it is politics because the last two Quarters were negative it's just that Simple it's not even making this more Complicated it needs to be Um but you know I just feel that It's it's lagging a lot of these things Are lagging indicators as well by the Time they actually announced that we end Up recession we're gonna be coming out Of itself so like when even like if you Think about I think Josh Brown has said This but even if you think about the Time when that definition was created For those times the two negative Quarters were fit but these are Different times right so maybe having That and maybe that's part of the Language it's like all right let's let's Pull off on using the word because there Are different circumstances in this Economic climate but if it was Obama in Office it wouldn't be a different set of Circumstances maybe majority of the Hedge fund managers and bankers lean Left And they don't want
Biden to have the recession on his Presidential jacket and as Obama said uh Then the Biden gets shellacked when it's Time for re-election because if you have The recession fellas is like okay if You're broke and you have like negative 50 in your account you cannot say I'm Cash flow positive So like now the FED is playing Games with where we stand we've been Negative and if you actually look at it If you factor in covet and take out Quantitative easing we've technically Been broke since 2019. That's when all the PPP money came in All the business money came in the nft Market came in I reposted the you know Logan Paul and Jake Paul I forget which One bought a nft for 695 000 is worth 10 Bucks now I told you guys last year they were Going to push up the market and give Everyone one last chance to get money in 2021 For what's to come and now we're here I Agree with Rashad like two negative Quarters is two negative quarters if we Were leading the country and We didn't get Positive Growth we they Would say hey we let everyone in Market Mondays to a recession The dynamic doesn't get to change now And the jobs are not that high quality That they are producing and bringing it
Right now That's the other part that part well We'll see but speaking of recession what Are two stocks that are doing incredibly Well in this recession and um that we Should keep an eye that our eyes on Uh there are a couple that I like if you Look at irdm That is one you guys can add to your Watch list Um Another one is General Dynamics the Ticker symbol is g d And if you need an inverse I don't want You to hold this one forever or even for Longer than five days Um but sqq so that's the inverse ETF of the triple Cube so if the NASDAQ Goes down this stock goes up so in order Irdm number two General Dynamics and Then s QQQ and for my Traders you should look At the wheat future to trade that as Well on the upside if you're looking for Something that's been having positive Growth over the last three or four Months yeah yeah I I'll just add two Um and we kind of had a call about it And it was actually on um the other day When I was like look when we saw that OPEC news and I was like wait oh it was Going to get cut like two million Barrels a day obviously that's going to Take uh effect in November but if oil
Production is getting cut that means oil Prices are going to go up that means Companies that produce oil or in the oil Industry their price is going to Increase and so if you look at just the Energy sector uh Exxon Mobil this year Is up 42 percent Chronicle Phillips is Up 42 and the one we kind of was Speaking about and I actually text um You know bam about it but Marathon Oil Is one of those ones mro Um you should definitely that's a nice Home run yeah yeah he has a nice one We'll talk about that another time but Yeah that's up 37 for this year and so I Mean if you sometimes it's like yeah you Check out the news and it's like all Right do what you want with it but when You hear like global news like when They're saying hey we're going to meet In Vienna no we're not doing this on the Zoom call everybody needs to come to Vienna to meet and then you hear how the White House is has terrible like feeling About it they don't even want to come And they're disappointed in the news Before it even comes out right the Initial report was that they were going To pull back 500 000 barrels a day and So the hair go up to 2 million it's like Okay Well that that's going to increase uh The the amount that oil is going to cost Going forward so yeah those are those
Are those are solid places especially in A climate like this Yeah and remember sqq is not a long-term Hold it's an inverted ETF so you don't Want to yeah I will hold it for three to Four days maximum for the record Mike Can we clip that up yeah if you can clip That up yeah three to four days maximum Um and an inverted ETF It goes opposite the direction of the Market so if anybody that's new to Market Mondays and has never heard the Term before so that means when stocks go Up the inverted and they they go down When stocks go down the inverted ETFs go Up so yes yes that's what that is so QQQ With the technology ETF whereas Microsoft Apple Amazon all of those Technology companies in it so obviously The Dow Jones I mean the NASDAQ I think Hit a two-year low yeah since the Kobe First hit this is the lowest point since March of 2020 when covet first hit so The stock market has been getting Hammered but the technology Remember I said technology stocks were Inflated Yeah because they were yeah so it's like It's just like it's just a common thing Right like when when some when things go Up they must come down and when things Go up higher than everything else They're going to go down harder than Everything else and that's exactly what
Happened you see the NASDAQ now is What down 30 34 34 their General stock Market is down 20 something percent yeah That was down 20 s p down 23. and also When quantitative easing goes away And inflation goes up high I asked a Question for everyone like when does the Two Tech Two index Model start to roll Once you get past 15 you have to know Those key levers like that's one of the Things that at least been talked about a Lot if you don't know what moves the Markets number one is always going to be Quantitative easing whether we're going To hit recession inverted yield curve we Talked about that the first season of Market Mondays right so those are the Two things you have to look out for the Most but if the FED is not printing Money Everything is going to come back down to The normal levels in which it should be [Music]
