Speaker 1: 0:00

Felix and Winston and a bunch of crazy cats here, and this market is about to take a turn. I believe we've uncovered how this government is going to ensure and manufacture a tremendous rally, while there was a lot of madness going on here, literally knocking things over the mad ones. Winston looks appalled, doesn't he? And it all starts with the job data that just came out. Then understanding of, well, what's within the power of the government, when are we going to get rate cuts and how big they are, and while all of this money is going to pump into the market and I think it creates probably the sweetest setup for us since post-COVID. Seriously, that's the way I'm looking at this. I'm very, very, very bullish on a lot of things here, but selectively bullish. I always want to make that clear. And if you really want to understand who's going to benefit from this the most, it's the people who understand precisely which part of the market will benefit at what moment, and those people are normally the guys on Wall Street and my very noisy cats precisely which part of the market will benefit at what moment. And those people are normally the guys on Wall Street and my very noisy cats, but also anybody who just understands the basic rules of the market. And if you want to learn those basic rules of the market, come and join me, literally Saturday, just after your 4th of July holiday. You'll just be ready for some serious financial freedom not just freedom from the pesky Brits you kicked out. If you want to join me over there at fredericksfriendsorg slash seminar, it is entirely free. I can't promise it'll be quiet because there are a lot of cats running around here, but let me walk you through precisely what we've got going on here this morning, because it's a big one. If you want to understand how to make some serious money this year, then, um, put a one in the chat and I know that this will be useful for you. They're literally about to knock over my lights, the little blighters.

Speaker 1: 1:58

So, first things first, we just got job data out, and this is important because guess what? The unemployment rate fell. More jobs were created than expected. Where is non-farm payroll? And you see that line here non-farm payroll. Appreciate all the ones there, guys, the non-farm payroll data here. Look at that column. And what was the estimate number? Can you see that? It might be a little small on your screen? The estimate number was so. The estimate was 100,000 jobs created. How many did the US economy even create? 147,000. Staggering stuff, right? So more jobs created than we expected, just like we have more kittens making a racket than expected. And well, if the job market is strong, we're not going to get those rate cuts. That's what you think, that's what most people think. The pre-market looking all right, looking pretty decent, more green than red here for sure Not a disaster, not as problematic as all those kittens who clearly need some exercise.

Speaker 1: 3:09

I didn't play with them just before. I normally play with them about half an hour before this and then a little bit quieter, and now they're making an absolute song and dance and riot in there to remind me never to do that again. Can you hear the kittens? If you can hear the kittens put a K for kitten in the chat, winston certainly seems a little fed up with them, don't you Winston? No, actually he loves them, he likes playing with them, but okay, all cats are in the French Foreign Legion. You can hear the cats? Yeah, me too. It's a total madhouse. I try to do something about it, but usually that makes it worse.

Speaker 1: 3:51

Oh good God, what are we going to do? We're going to talk about delinquency and interest rates, and all we've got is cats, cats everywhere. I'll try to fetch one for you, and that way it might be a little bit less noisy, because this is getting out of control, isn't it? Look at that. Look at that, winston. He's suffering greatly. Give me a sec. I've reunited the mother with her five kittens. That might buy us a few minutes. I wouldn't hold my breath too long, though.

Speaker 1: 4:34

Okay, let me walk you through this quickly, because this matters and you might want to take screenshots. You might want to write this down. Uh, this is going to be information dense. Um office delinquency rates are at their highest level, basically, in 24 years. We're higher than the 2008 global financial crisis, and that just means the office market is toast and all the banks who are lending, you know, have the mortgages on their books. They're going to be really, really, really, really in trouble Unless bear this in mind. Right, a few more bits of information to cut together, no-transcript.

Speaker 1: 5:48

This is how the market gets sustained, and I believe El Presidente Trump has a plan, and we're going to like it, and one thing is they're actually destroying some jobs, very, very intentionally. Elon had something to do with that. This little red line here is the continuing jobless claims. So these are people who are actually unemployed, right, and that number is now back up to 2021. And why is that good news? It's not good news for the people who got laid off, for obvious reasons.

Speaker 1: 6:22

But where are these jobs actually being lost? And I appreciate I'm running you through this quickly because I want to compress all of this information into one thought, okay, so bear all of this in mind, take screenshots if you want to get back to this. Where are most of the jobs being lost? In Washington D DC, in Virginia and in Maryland. I don't know what the acronym is for Maryland Mary L. Why? Government jobs. So Doge has actually achieved something. It has sacked quite a lot of government employees. So what's the benefit with that? Well, put that together with the impact of AI and, yeah, that's really starting to destroy jobs.

Speaker 1: 7:04

Microsoft is laying off 9,000 people. You're going to see all the big tech companies, all the big software companies, all the companies with lots of developers. They're all going to thank you for the MDs. I learned something there today MD for Maryland. All of the companies with loads of developers are laying off people. Why? Because AI makes their best developers more efficient, so they can get rid of the developers, who are not the greatest. It's tremendous what we can do with AI now Absolutely insane.

Speaker 1: 7:35

This is another example of AI. This is low-skilled jobs, amazon facilities, packing boxes right, if you go back to 2015, one Amazon employee would get about 175 jobs shipments out per year. That's a shipment every other day. Now that is 3,870, which is about more than 10 shipments a day. So that's tremendous, and the number of employees at facilities at the same time is coming down. So you're going to see that. You're going to see that in warehousing and delivery anything that's manual, anything that's repetitive robots are replacing people. Now you know all of that and you then see well, there'll be rate cuts.

Speaker 1: 8:35

Maybe this is September rate cuts right Now. The job data today looks better than expected, so maybe some people will think it's therefore going to go back from September to October. It's entirely possible. Is there a meeting in October or is it in November? These cats, really, are they hungry? I think they might be hungry. What's an incessant noise, albert? Hey, where was I? Yes, rate cuts. So maybe they'll come in a little bit later. I tell you what. It does not bloody matter why not.

Speaker 1: 9:13

Morgan Stanley just said that they expect the Fed is going to give us seven rate cuts in 2026. Seven that is about as many cats as I have in here, as you can probably tell. Now, if we get seven rate cuts, even if we only get one or two this year, what does it mean? Well, it means interest rates will go back down to 1 point something percent. That was a long explanation to get to this point right. How are they going to do that? Well, they're going to replace the Fed president. They're going to keep laying off government employees if possible, and they're essentially manufacturing a stock market rally.

Speaker 1: 10:01

A stock market rally Because lower interest rates this much lower will give us probably a 20 to 30% rally. But the rally will not be equal, it will not be fair, it will not be kind. It will apply to certain sectors and to certain stocks within those sectors. So most people all the ETF crowd out there and everybody else they're going to miss out on most of it. Just like in 2021, there was very, very few stocks that actually went up. This year so far, it's actually very, very few stocks that are actually going up, and that narrowness of the market creates tremendous opportunities for people who know what to look for and disappointment for everybody else.

Speaker 1: 10:37

So if you want to know what to look for, I will teach you on Saturday, which is after your beautiful holiday in the US. So you should be nice and refreshed and ready for some financial freedom. It is completely free of charge. It'll be about an hour and a half or so. It'll be a blast.

Speaker 1: 10:55

Felixfriendsorg slash seminar is where you sign up for that. A noisy cat will be sent to you as soon as you do. I'm going to have to go and get that guy. He's doing my bloody head in. Right, have a word. Everyone tell Albert what you make of this noise and this incessant racket that he continues to make. Albert, we talked about this. It's just not ideal at this time of the day to make that kind of racket. Fed check can't be replaced, yeah, but he's out of office next year anyway.

Speaker 1: 11:35

So it's all a question of expectation. You see, if the market expects seven rate cuts next year, it doesn't matter that it isn't happening right now. What really matters is that we have that expectation and therefore the market's forward look and remember that right. So all we need is that expectation. Morgan Stanley just put it out there Wall Street is intertwined with the White House. Half the guys in the White House come from Wall Street, so all you got to do is create this dynamic where everybody's believing that there are going to be loads of rate cuts and you're basically Bob's your uncle. It's literally that. So all we got to then do is pick the right stocks Now, generally speaking, the higher risk stuff, the fintech stocks.

Speaker 1: 12:23

They'll benefit the big beautiful bill if it passes. It probably won't pass this week, but when it does eventually pass, will also provide tremendous rate cuts sorry, tax cuts, tax breaks for the biggest stocks out there. This is a wrestler. You are a little wrestler, aren't you? So you know your Metas, your Microsofts, your Amazons, your Oracles. They're going to benefit tremendously from this.