Hey this is tom and we're on the brink of a massive policy change by the federal reserve. That's going to completely change the way we look at the stock market. You absolutely don't want to miss this video. A major shift, as you say, is underway.

The fed that amounts to the beginning of the end of this massive pandemic easing policies - hey this is tom, and some of you have commented and noticed i am losing weight, but i am not. The only one growth sector is pretty much in the toilet. Every single growth stock you can think of is pretty much close to its one-year lows. It looks like we're getting at least a little bit of a tech reset, if not a correction in this video i'll, tell you what needs to happen in order for the reversal of this trend.

Now, if you bought it at 65 000 - and you woke up saturday morning - and you started at 42 000. - i mean that's. Those are big moves and this is not only about growth stocks. A lot of sectors have been taking a massive beating.

Bitcoin is one, for example: they went from 67.5 000 per bitcoin all the way down to 44 grand over the course of 30 days. Now it's slightly recovered back to 48 000, but it's still in a very low position. It seems that the whole market changed narratives. Instead of fomo fear of missing out, everybody is now obsessing about fosse fear of staying in and things are not looking better now.

According to reports, the federal reserve is about to do a full 180. In fact, increasing the more hawkish approach, jerome powell actually presented just a week ago in his testimony, check this out and steve. So much of what i read over the weekend was this 180. That people think the fed has done at this point and and trying to get their heads around that yeah.

Now they've done the 180 becky they're not going to be traveling in that direction. Listen to these pearls of wisdom, 180 means we're going in an opposite direction. Can't blame these guys they have to wake up before they have to do the show they absolutely have to fill air time with this nonsense. Galileo and then you've also got the variant this new omicron variant that we just don't know a lot about yet yeah.

Look at steve he's absolutely lost like what the becky. What am i supposed to say about the virus? I don't know the fed not only likely to speed up the tape or the december meeting, but could begin discussions at this meeting and in subsequent ones about a series of steps to remove accommodation, perhaps earlier than the market has priced in. If the fed goes to a tapered pace of 30 billion dollars a month double the current rate, it could be in a position of hike rates as soon as the mid-march or early early may meeting. So gaming out options would need to begin soon.

St louis president, jim bullard, said friday that he wants to get to live meetings for possible rate hikes as soon as possible. Now, on a serious note, what they're talking about is actually very important now, when you look at the data coming out about inflation, there's a big difference between looking at where it's going and where it's at right. Now, if you look at cpi, you look at the bond yields. Basically, you get a good indication of where inflation is at right.

Now, like a thermometer right, you look at the thermometer. You see the temperature, you know well, unless it's in celsius, then none of your from the u.s actually knows what it means, but that's a whole different discussion. Now, here's the point: we need a weatherman somebody to tell us what's coming next and the good one, not one of those. You know local, cable weathermen that don't have any idea what it's about and just like a comic relief.

We need an accurate weatherman, an actual projection to know, what's going to happen with inflation, and the best way is not to obsess about what inflation is going to do. The best way is to obsess about what the federal reserve would do. It's not about the effect. It's about the cost check this out.

I've been saying this for a while: the federal reserve and its behavior towards inflation. That's the only thing we need to know because it almost like the interpretation is making the reality here now. Basically, i did the video in august telling you all exactly what's going to happen. Nobody, nobody was agreeing with me everybody's, seeing inflation.

However, you can easily manipulate cpi data, you can easily manipulate job data and that's exactly what jp was doing in this conversation. He was basically saying well, look. Employment rates are not great inflation, isn't that high it's just transitory transitory. Back in august, i said: well, jerome powell is going to be pumping.

This narrative, basically saying it's transitory. Everything is fine, just massaging you like it's all gucci once he gets renominated he's going to basically press the pedal and say whoa hold on hold on hold on. This is getting out of hand. We have to stop this and i called it.

I said this february. Look at my video, i said february is where they're going to start hiking interest. So basically jp is saying: well, i honestly don't have a choice. I have to somehow pull through until february and make people believe that that's okay and now, lo and behold, we started with june and may just a few weeks ago now, everybody's finally talking about february and look what just happened last week, powell actually did the first Move, he basically said: well, it's no longer transitory.

We have to stop 15 billion per month, we're going to cut it back all the way until june next year and then we're going to start raising interest rates. And now, just a few days later, james bullard, the st louis federal reserve president comes out and says: well, i think it should be 30 so that we're ready to go with interest rates by the end of q1 next year, which is pretty much march. So in the week we went from transitory to june to march and i believe we're going to end up in february. Exactly like i said back in august and what happens next is actually very exciting because i believe we're in the beginning of a quasi-2000 bubble burst with a complete rebirth of all these amazing companies.

We got out of the first bubble. What the hell am i talking about? Well, in 2000, the internet bubble blew up 99 of these companies. Pets.Com com went under, but a few emerge and they've changed the way we live the way we do business. The way we cut car the way we car.

What the is the way we go, the way we do e-commerce, pretty much change everything we know about the world now. 2021 2022 is where we're gon na have a second revolution. All of these growth companies are going to go and the fuel will emerge and it's not going to happen fast. It's not going to be like this amazing bounce back that we saw in march 20 april 2020.

It's going to take a long time. It's like losing weight when you're gaining weight, which is essentially what just happened with the stock market. It's really easy. You just eat a bunch of burgers, a bunch of pizza.

You gain weight like this. When you lose weight, if you want to do it healthy, you got to take it slow now, as i mentioned before, i know i just did it so. The same thing happening with gross talks, they're all going to go crashing down and the ones that are able to climb up the ladder slowly but surely will emerge as victorious in their own sector simple, as that, the only question is which companies will come out victorious And here's where i come in, so here's the trick on how to identify the potential companies that will come out of this bigger than ever. First of all, is this truly a disruptive company? Are they able to completely disrupt the industry they're working on or are the second and third? In this case, we can use tesla as a prime example or a patentee as a prime example.

Also can they scale quite cheaply? Tesla is a good example. Already have two extra factories: don't need to put a single dollar for another million cars easily or palantir, for example, provision of services. Any sas business will really do well in this also, do they have positive cash flow? What's their fcf free cash flow? I told you: valencia, just did 200 million almost 200 million last quarter. They seem to be headed to profitability.

Now they're, not there yet, but eventually a growth company that will come out of this alive will have to become profitable. Getting to profitability is key. All these companies are going to be stuck at growth without being able to get to profitability are in deep, do do they don't come out of this alive now. Pilot here is really close.

If you look at their balance sheets and their income statements, you'll see that they're, basically very very close they're on the verge, but there's other companies that can do the same. You have to look at their business model, i mean: what's the total market, can they raise prices without losing demand because everything is going to get more expensive now? This is a prime example of a company that can raise prices same from valentia strong clan base. They can, and another thing you have to look at is what's going to happen with that that will become more expensive over the next few years. As interest rates go up, the weighted average cost of capital will also go up.

So is this company that heavy or cash rich now a tesla, for example, is a good example of a company that's been cutting instead and increasing its cash base same thing for palantir, but again there's other examples, and if you want to watch the full video where I explain why tesla meets every single one of these parameters. The video is going to be right here, go and check it out and just for christmas, even though i never asked this there's a subscribe button right here. If you want to subscribe for christmas, go right ahead, i'll see you tomorrow.