Maximizing Opportunities in Volatile Markets

Speaker 1 0:00

Felix Hill and welcome to this pre-market live stream , or shall we say , therapy session , for today , markets are doing its thing and I want to make sure that you are the best informed investor out there . I want you to understand what's actually causing this sell-off . I want to separate facts from mainstream media fiction , give you a word of caution and that's important but I also want to show you how you can maximize this opportunity . But first smash the like button . And I asked you a question in the live stream here . I asked you why do you think people struggle with investing ? You haven't done the poll yet , or even if you have just answer it in the chat , why do you think public people struggle with investing ? Is it A ? Is it lack of opportunities ? You think there is not enough opportunities out there in the market ? That's why people struggle with it ? If you think it's that , put an A in the chat . Or do you think it's because people haven't learned how to maximize the opportunities out there ? Do you think it is that ? If you think people haven't learned how to do it , then put B in the chat , or yes , so A if you think it's a lack of opportunities , b if you think we haven't been taught which one ? And let me know which one you think it is James , mike , carl , you're saying B , b , b , b . People struggle because they haven't found Winston yet . That's true , okay , mostly Bs , mostly Bs , okay , almost . Actually , everybody's putting B in there , right , and you know what ? I think you're right . People haven't learned , and one of the reasons people are afraid to learn I mean , we can talk about the scandal of why , you know , wall Street essentially pays politicians to make sure you don't learn and all that , but that isn't actually going to get us anywhere , right , we can always lament and point at people who are , like you know , holding us back in a sense , but the real reason I think people are afraid to learn is this Fund managers underperformed the market massively and I had a little chart here for that somewhere .

Speaker 1 2:17

Where did my chart go ? Here it is . This is fund managers , fund managers in 2024 , 36% of them outperformed the market . That means 74% failed . Right , should be fired , strung up , thrown off a ledge . And people look at that and they go . Well , if the fund managers can't beat the market , what hope do I have in making my money work for me ? Well , I should just leave the professionals to it because they have a 74% failure rate . But what very few people understand is this and this is very important . I mean you might literally want to write this down . It is the following Fund managers , big funds , have a problem , and what's the problem ?

Speaker 1 3:19

They have too much money . Why is that a problem ? When I spot an opportunity of a stock and I shared some just in our stock trading community , or I had a brokerage open here just now , this is a really small portfolio I'm running and I want to show people how they can make money . We're up 36% so far on this just buying a couple of stocks , one a week or something like that . Right , this opportunity here , foa , which is up 228% ? Right , they can't buy that opportunity , and I'll tell you why . If they did , they'd make the stock move too much because they have too much money . They'd have to put billions into it and the stock's only worth a couple of billion the whole company . So when they sell , they would crash the market . So they can't take advantage of these opportunities .

Speaker 1 4:08

So we retail investors , we have a massive , massive , massive . Is it 64% ? There you go . You see , bankers and maths . You see You're quite right , thank you .

Speaker 1 4:21

We as retail investors , though , in all seriousness , have a massive advantage over funds because we can take advantage of so many opportunities out there . We know how to do it that Wall Street just can't touch . If you have a big , massive fund , you're basically stuck to buying the magnificent seven stocks , because you can put a billion into Apple and it won't move the stock very much . You put a billion into anything else and the stock goes up 100% , and then you sell and it goes to zero , right ? So you just can't do it . So you have this unique setup that actually makes your job much , much easier than the job of fund managers . It's really hard as a fund manager to beat the market as an individual you and me I think it's surprisingly easy , really surprisingly easy . So you might want to do something about that . So what are you going to do about that ? Well , if you want to learn how I do it , if you want to learn what I learned and I learned this from my mentors over the last 20 years then three rules how we spot the breakouts , and we spotted a couple today . I bought one yesterday as well , and all you got to do is what you got to sit down for a little while , watch my free masterclass , take some notes and actually take it seriously and invest a little bit in yourself in terms of time , right , the masterclass is free . So who's going to do that ? Who's going to watch the masterclass ? If you're going to watch the masterclass , put a smiley in the chat and if you are not going to watch it I don't know buzz off . I suppose I can't help you . Foxgaming , thanks very much for posting the link there as well in the chat , which he just did . I'll pin it to the top of the chat as well . It's also in the description down below , if you can find it there .

Speaker 1 6:09

Let's look at what's driving the market today , because a lot of people are feeling fearful right now , and I understand that . I want to do something about that . This is pre-market . By the way , it's not that bad . Nvidia is recovering a little bit . Microsoft's green , google , apple , tesla down a little bit , but we're not seeing any cataclysmic drops off here . So lots of smileys . And if you've watched it a few times already , then that's also very good . And Raptor , my friend , you're practicing that demo account . Brilliant , keep doing that , keep doing that . Bravo .

Speaker 1 6:47

What did I spot today ? Let me show you . Actually , I'll share it with you . I actually haven't posted in the community yet , so sometimes you guys get it here first , not usually . Where did it go ? Where did it go ? Here we go . It is KMDA . Kmda is the ticker here , that one there , kmda , and I only nibbled a little bit at it . I think I'll nibble some more today , but it doesn't mean you should buy it . But if you understand what I'm talking about , you can judge yourself . Kmda , it's an Israeli stock , whether you like that sort of thing or not .

Speaker 1 7:23

Now let me explain to you why the market is wobbling the way it is . I mean , the Trump speech yesterday was interesting and I think a lot of people are like oh my God , who's this madman ? You spot on a lot of things there . The Greenland thing makes a heck of a lot of sense , but okay , this is what the market is freaking out about . So we have in red and green here can we get a green pen ? In red and green ? We have the 10-year yield of the 10-year bonds . That's basically the interest rate okay , interest rate , and that's gone up from not a lot in 2021 , but basically zero to now 4.7% . That's pretty high .

Speaker 1 8:11

The last time we were at such levels pre this cycle was when it was here . It was in 2008 . Now , what happened in 2008 to the market ? I have to zoom in a little bit here for you to see that this is the NASDAQ down here . This is Q , q and Q , and the market dropped 50% minus 50% when we hit that 5% approximately interest rate . When we hit that 5% approximately interest rate . So that's what the market is freaking out about Now . You'd have to be an idiot not to remember that in 2008 , the US housing market collapsed because it was a great act of corruption on the part of the rating agencies that made that happen . So the NASDAQ has ignored these high rates , really right there and there it has continued to soar . So people are worried it's going to undo that . That's ultimately what this is about . It's about these interest rates , a bunch of factors that feed into those interest rates

Navigating Economic Trends for Investment

Speaker 1 9:15

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Speaker 1 9:15

We don't need to really understand it in that much detail . A lot of government debt is a problem , so people are thinking that Donald is going to add a lot more debt . I think , yes , tax cuts will do that , but the real question is can they deliver on the spending cuts ? That's going to be the real test of this . And people are worried about inflation , I'm worried about deflation , but that's a whole other story . So this is the main story .

Speaker 1 9:44

Now . There is nonsense and noise out there Yesterday and this is actually really important and I totally get it . If you look at this and you think all this economic data it sounds complicated , then you'd be right . It is somewhat complicated . Do you need to understand all these nuances to make money ? No , actually you don't . You just need to understand how to read charts . That's really the most simplistic way of making money , but I enjoy this kind of thing and I think it gives me a little bit of extra information to time my stuff a little bit better . So I want to explain it to you as an old economist here .

Speaker 1 10:20

So we got yesterday job opening data out and we were expecting there to be about 7.8 million jobs . This was the expectation . So , yeah , 7.7 rather , that was the expectation and we got 8.1 million basically . So we got more jobs openings and you might think it's not a wonderful thing all these jobs being created . Look how strong the economy is . Well , yes and no , because what it means is that we get less rate cuts , because the Fed is not under so much pressure to cut interest rates if the economy is doing really well . So in a weird world , we actually want the economy to slow down so we get more interest rate cuts , which means the stock market does better . It's a really weird world , isn't it ? Does that make some sense to you ? Is that a little bit clear ? If that's a little bit clear to you , put a one in the chat so I can get some feedback whether I'm just talking to myself or whether this actually helps . Now , the data we just got out this morning , like less than an hour ago .