Interested in seeing my full portfolio with explanations along with buy and sell alerts? Join our Patreon community here: https://www.patreon.com/casgains
In this video, I cover how Warren Buffett and his right-hand man, Charlie Munger, recently spoke about whether the stock market is worth investing in right now and what consequences are ahead.
Source: https://www.youtube.com/watch?v=gx-OzwHpM9k
Join our free discord here: https://discord.gg/xUWB2ExVcr
My Second Channel:
https://www.youtube.com/channel/UCPkDot_lMk7HB_c68HubbUg
Twitter: https://twitter.com/casgains
Instagram: https://www.instagram.com/casgainsacademy/
Soundtracks provided by LCS, Nanobyte, Emphermal, Defyant, and Lakey Inspired
Copyright Disclaimer Under Section 107 of the Copyright Act 1976: All rights belong to their respective owners
In this video, I cover how Warren Buffett and his right-hand man, Charlie Munger, recently spoke about whether the stock market is worth investing in right now and what consequences are ahead.
Source: https://www.youtube.com/watch?v=gx-OzwHpM9k
Join our free discord here: https://discord.gg/xUWB2ExVcr
My Second Channel:
https://www.youtube.com/channel/UCPkDot_lMk7HB_c68HubbUg
Twitter: https://twitter.com/casgains
Instagram: https://www.instagram.com/casgainsacademy/
Soundtracks provided by LCS, Nanobyte, Emphermal, Defyant, and Lakey Inspired
Copyright Disclaimer Under Section 107 of the Copyright Act 1976: All rights belong to their respective owners
Over the past 12 months, the stock market has risen by a substantial amount, with this uptrend we've seen plenty of changes in the market climate that could potentially hurt both new and experienced investors, most recently at berkshire, hathaway's 2021 annual meeting warren buffett and his right-hand man, Charlie munger discussed their thoughts on whether the current stock market is worth investing in at this moment and what red flags they are seeing in this video. I will cover their thoughts on the future of the stock market and the u.s economy as a whole. Welcome to cass games academy if you're new to the channel, please consider subscribing for more content like this and let's get right into it. Although the stock market has risen by significant amount, lately, buffett actually thinks that the valuations are justified.
This is because the main driver behind the stock market's massive move upwards, created in environments where such valuations are warranted and by that i'm talking about the fiscal policy from congress and the monetary policy from the federal reserve. The fed's policy for zero interest rates in particular, has made it so that bonds are not attractive at all. A common metric that is often used to compare stocks with bonds is the earnings yield versus the 10-year treasury bond yield. The earnings yield is the percentage of earnings that stocks return for investors and the bond yield is the annual return that bonds return by comparing these two statistics, investors can see whether bonds are more attractive than stocks, and vice versa, as you can see in this graph, The bond yield is significantly lower than the current s.
P 500 forward earnings yield from 1980 to the early 2000s. The bond yield is comparable to the earnings yield. Stocks are incredibly undervalued even at the current valuations, and these numbers show this. If you invest in treasury bonds, your returns will be practically zero, given how low interest rates are.
On the other hand, if you invest in companies, you'll get earnings, which is certainly a lot better than getting basically nothing from treasury bonds. We all have to invest our money somewhere, whether it be in the us dollar stocks, real estate, bonds, commodities or crypto. When you compare stocks with the other asset classes like bonds, then stocks are clearly a no-brainer in berkshire's meeting buffet talked about how there's a direct relationship between interest rates and acid prices. The relationship is so strong that it is similar to how gravity relates to matter.
Gravity is the universal force of attraction for matter, and he uses this as a hyperbole for how strong the relationship between interest rates and assets is. If interest rates are this low, then asset prices must go up. Buffett then proceeded to show how there was a four week treasury bill sold by the government's treasury department at zero percent interest. This is clearly unprecedented and practically justifies the current asset prices. What's your mindset when you see so many of these high flyers, not the gme or meme stocks, but more like the big tech growth stocks gaining 50 percent, 100, 200, etc in a matter of a year or less? I know you eventually bought apple in 2016 because of the quality of their businesses and their management. How do you assess if these high flyers are worthy of your investment, given this crazy high valuations that muddy the waters? Well, we don't think they're crazy. They uh, but we don't at least i i'm charlie. I i feel uh that i understand apple in its future, with consumers around the world better than i understand some of the others, but i don't regard prices and that gets back uh.
Well, it gets it. It gets back to something fundamental in investments i mean uh interest rates. You know basically are to uh to uh the value of assets. What gravity is to matter you know essentially and and uh on the way out here uh, i tried a little clipping from the wall street journal yesterday, probably the only one that read it so small and having trouble finding it.
It says average average price 100.00, zero, zero, zero, zero, six zeros and essentially people were giving 40 some billion dollars to the registry and they offered to give 130 billion or something whatever the amount entered and the treasury received the money at zero, uh and janet yellen Has talked a couple of times about the reduced carrying cost of the debt. If, if i could reduce gravity, it's poll by about 80, i mean i'd, be in the tokyo olympics jumping and essentially, if interest rates were 10 valuations are much so you've had this incredible uh change in the valuation of everything that produces money, because the risk-free rate Produces, if really short enough right now, nothing now, while free money sounds fantastic, the party must end and there has to be consequences. The fed's zero percent interest rates in quantitative easing may have been necessary, but there will definitely be some consequences, whether it be a small or large degree. It's a fascinating time.
We've never really seen what shoveling money in on the basis that we're doing it on a on a a fiscal basis, while following a monetary policy of something close to zero interest rates, and it is enormously pleasant, but in economics, there's one thing always to remember: you Could you can never do one thing you always have to say and then what and we're sending out huge sums? I mean president said it on wednesday: 85 of the people we're gon na get a fourteen hundred dollar check, yeah we're about uh eighty-five percent, and a couple of years ago we were saying 40 of the people couldn't never could come up with 400 of cash. So we've got 85 of the people getting those sums and so far we've had no unpleasant consequences from it. I mean people feel better. The people who get the money feel better and and people are lending money, don't feel very good, but it causes stocks to go up. It causes business to flourish. It causes an electorate to be happy and uh, we'll see if it causes anything else and if it doesn't cause anything else, you can count on it continuing in a very big way, but there are consequences to everything in economics now, while zero interest rates are certainly A major movement in the economy and have huge implications, there's something that could be as profound occurring, which is the rise of the reddit subreddit wall street bets also known as the robin hood investors. Warren buffett thinks that robin hood and other platforms are taking advantage of people by allowing gamblers to bet on short-term options. In particular, robin hood is accentuating the prominence of the casino aspect of the stock market, which is very dangerous.
Going forward. Charlie munger also called this movement from wall street bets as a quote: unquote waving a red flag for the bulls, which definitely hints at his opinion, about an upcoming stock market correction, whether it happens in the next few days or the next few years. He then proceeded to call robin hood's actions, deeply wrong and awful. You know it's become a very significant part of the casino aspect of the casino group enter to those gambling ships.
When people have money in their pocket for the first time - and you tell them - they can make 30 or 40 or 50 trades a day and you're not charging them any commission, but you're selling your order flow or whatever it. I hope we don't have more of it. I'll put it that way, and i will be interested in reading the prospectus, charlie. That is really waving the red flag of the bull.
I i think it's just god-awful that something like that would draw investment from civilized men and decent citizens. It's it's deeply wrong. We don't want to make our money selling things that are bad for people, but we've got the states doing it with the lottery. You know.
I know, but that's bad too yeah and i understand very quickly once you very very that's one of the things that's wrong with it. It's getting respectable to be to do these things. The states are just as bad as robin hood. Well, in a sense they're.
Worse, i mean they're they're really taxing. I know it's basically. I know i know yeah they're taxing hope not only that and they don't get much taxes for bear truck than they do about the states in america. Charlie mungu clearly believes that the rise of these types of investments is a warning sign for the entire stock market.
As some of you may already know, warren buffett and charlie munger are both heavily against bitcoin and the rise of cryptocurrencies in general. When asked about cryptocurrencies buffer was scared of answering the question and admitted that he was going to dodge it. On the other hand, mongrel was not and essentially spoke up about berkshire's overall opinion on crypto manga reiterated his stance that the rise of bitcoin is another red flag for the stock market and of course, he hates bitcoin. Now that the crypto market overall is valued at two trillion dollars, do you still consider kryptos as worthless artificial gold? I knew there'd be a question on bitcoin or i had, and i thought to myself. Well, i've watched these politicians dodge questions all the time you know and and and uh. I always find it kind of disgusting when they do it, but the truth is i'm going to dodge that question because the we probably got hundreds of thousands of people watching this. That own bitcoin and we've probably got two people that are short, so we got a choice of making 400 000 people mad at us and unhappy and or making two people happy and that's just a dumb equation. So i those who know me well are just waving the red flag of the bull.
Of course i hate the bitcoin success and i don't welcome a currency, that's so useful and to kidnappers and extortionists and so forth. Nor do i like just shuffling out a few extra billions and billions and billions of dollars to somebody who just invented a new financial product out of thin air. So i think i should say modestly that i think the whole damn development is disgusting and contrary to the interests of civilization and i'll, let leave the criticism to others. Given the controversy.
I'm sure many of you disagree with monger on this subject, and some of you may agree either way. One thing is for sure the financial market is changing drastically, whether it be for good or for bad. The new generation is implementing digital technologies at the financial sector, and it's not a surprise that those from the older generations, like buffett and munger, are not a fan of it. On one side, you can argue that the old always looked down on the young and buffett and monger's advice shouldn't matter, since they aren't competent in this new digital wave.
On the other side, some may say, given buffet and manga's experience, we should be listening to them since they've been through so many technological transformations and market climates. Let me know which side you believe in the comment section below. If you enjoyed this video, please hit the like button and don't forget to subscribe and i'll see you in the next.
Look up☝☝
It was like a drama to me after everything that has happened to me I never believe that they’re legit people Unitil I meet her up and help me with $16,350 bitcoin
the profit in Ms Felicia investment shows how selfless and reliable she is.
I make 85% profit of every of my investment with her. indeed Ms Felicia has proved to me through her platform that they are still God fearing brokers online..
the profit in Ms Felicia investment shows how selfless and reliable she is.
I make 85% profit of every of my investment with her. indeed Ms Felicia has proved to me through her platform that they are still God fearing brokers online..
The US Dollar and other fiat currencies like the Euro are much more useful to kidnappers, extortionists and so forth because it is much more difficult to trace. The head of the ECB Christine Lagard was convicted of fraud and making hundreds of millions in illicit payments while heading the IMF. She served no prison time. Instead, the Europeans hired her to head the ECB the central bank for the Euro currency where she is remarkably saying the same thing about Bitcoin and crypto. This either shows the ignorance of these two old fuddy-duddies or that they have vested interests elsewhere or don't want to upset the bankers and central bankers.
<I must say. Bitcoin’s price action has been fluctuating throughout the past few days and weeks, with bulls and bears both reaching a clear impasse, the aggregated cryptocurrency market has been following in Btcoin’s lead and is struggling to garner any decisive momentum. One analyst is now noting that BTC has been holding above a key macro level throughout the past few months. He believes that the recent consolidation above this level bodes well for its near-term outlook and could indicate that significantly further upside is imminent in the weeks and months ahead. Tips like this are why it’s advisable for investors and newbies to trade with the help of pro traders like mr Chen lawrence. He is always one step ahead of other traders, he fully monitored all my trades to avoid me making mistakes and losing my money. My earnings have increased drastically from 1.01 BTC to 9.700 BTC in just 4 weeks using his strategy. You can easily get hold of him for a profitable system on TE LE GRAM (@ chentradingi.
<< This current run looks a mix of the previous two. Currently the PI indicator is about to indicate a Bitcoin top. According to bitcoin halving cycles, there should be at least other 4 months in this bull run, so, if the PI indicator (and Bitcoin) might repeat a similar bull run to 2013. That would mean a local top relatively close in time and then another top to end the bull run towards mid year.I was able to grasp the knowledge of tradlng crypt0 assets early enough, but I was still limited due to my lack of technical understanding of how to analyze the digital market, all this changed when I encountered Felix 's service., although I have been into numerous services but Felix is t0p Notch with experienced expertise in the field. I must confess it wasn't an easy task learning the routes on trading but with her assistance I earned a lot, @Felixtrades0 on lG
I don't trust Buffet at all he is a greedy 1% and doesn't care about anyone else but himself.He will lie and manipulate the market.
Criticizing Bitcoin, a transparent, public persistent ledger for potential use in illicit activity, while turning a blind eye to Fiat paper currency’s secret love affair with illicit dealings and anonymity is hypocritical at best, and at worst displays an alarming lack of understanding regarding the topic.
The fact of the matter is that Buffett and Munger have a very deep financial incentive to see the current system of Fiat oligarchy and centralization continue. Berkshire has been deeply invested in Bank of America, Wells Fargo, and many other financial firms. It is not in their interest to see a secure, decentralized and control resistant monetary network gain global acceptance.
But it probably is in your interest.
Retired, receiving about 87k in dividends. I have been in the market about 30 years. Am I worried? Of course. Am I selling? Absolutely not. I have purchased stock a little at a time over the past few weeks. I am going to sit back and observe how this all plays out, adding a little at a time. I am not going to panic. my investment strategy actually calm me down. It is difficult not to make emotional decisions in times like these. Eye on the prize, stay the course!
Nice video! I was able to build a big income stream during the covid19 pandemic investing with a professional broker, Mrs. Richard Evenly
I don't know who needs to hear this, you've got to stop saving money, invest some part of it, if you really want financial freedom
You misinterpreted the "raising a red flag at the bull" he didn't say bulls, plural, he said it singular and meaning asking for trouble as a gambler.
I started talking about these red flags last month. If you apply the fundamentals and use technical analysis on the market charts you see where things are going. Then apply real world variables eg: HFTs coded to pull out during crash and the recent inflation reports. There is so many red flags so the 2 I named is a drop in the bucket.
The net amount made from crypto currency is always less than zero on aggregate. The only way one person makes money is from some other person putting money in. Absolutely no value is created. It is in effect a Ponzi scheme. For everyone who takes more money out than they put in there must be others who put money in that they cannot ever get back.
I bought 20 Tesla and loaded the boat on nio and xpeng.
I’m ignoring people who are saying crash is coming, (including Cathie Wood)
We have to tell ourselves we are investors not traders… and in 5 years things will look a lot brighter, I’m ignoring all this FUD on Bloomberg, and CCBN…
Buffet is famous for his "value"-investing. crypto currencies teach us that values are relative. See Doge coin – does it has value? Buffet would say 'zero'!
But a coin known by everybody and being a meme – it has some intrinsic value because it becomes part of our thinking/culture/life.
I like how he says “something that’s been created out of thin air” without having any clue of what blockchain technology is. So… how exactly fiat currencies were created again??? Not backed by anything!!! Old fart ruining his legacy with one stupid statement…
Lol, Warren Buffet is just upset because his company is losing money to emerging technology investments. Robinhood has given the average person access to a financial system that has only been available to the rich in the past.
Did you just say these guys aren't competent? There isn't a single crypto coin that actually does all or any of what it claims it will be able to do. It's a fluctuating currency. There's nothing backing it other than the us dollar and so it's potentially worth less than the US dollar because if it drops and inflation continues like it will its value could be depleted at a higher rate.
I say listen but just like with musk or anyone else don’t follow everything they do and say make our own choices with what info we have within reason.
Munger: "We don't want to make money selling things that are bad for people"… sitting behind his diabetes, obesity, and CHD fueling sugar products. Coke. Sees.
Agreed, Crypto currency is a greed currency like all pyramid schemes relying on many to lose money so that a few can make money out of nothing.
They want us to put money into the stocks they own so they can continue to stay on top and relevant . Being that we as a community have invested before the older generation into the future of currency, disturbs them to the max.
regardless of what's going on with all of this fiat currency…make your money in that and buy precious metals or you'll be sorry…
Given how governments around the world have printed currency with abandon, it was a certainty someone would create a private alternative that could not be devalued by creating an infinite amount of it. Bitcoin will become common currency at some point just because politicians and bankers have zero self control.
NOBODY BECOMES A MILLIONAIRE OR A BILLIONAIRE BY WORKING FOR OTHERS OR DEPENDING ON THEM, GOOD INVESTMENT BRING MILLION OF DOLLARS, AND CONSISTENCY BRING BILLIONS, THE MARKET IS ALL ABOUT BTC AT THE MOMENT NOW.
I don't know how Mrs Tracy walker does it, all I know is that she knows the forex market like it's her own farm. Working with her has yield fruitful results, made $20,000 in a week with her trading strategies
If you listened to warren buffet you would’ve underperformed the S&P500 for the past 15 years. Why are we still listening to this 150yo guy?
Poor mindset immediately sees a surplus as an opportunity for consumption. Rich mindset seeks to spend their time, Resources, And energy on work that continues to pay off long after the effort has been invested.
Forex investment controls a huge part of my passive income, I invest big and my profits are even bigger, courtesy of my broker Mrs Juana Dirix
You know what? F*ck these dinosaurs. They did exactly the same damn thing 60 years ago. Dropped hundreds of thousands of dollars in fairly risky assets and won HUGE… Here they are today, BILLIONAIRES… F those dinosaurs.
My life got much more better when I started crypto trade and mining. I’ve Been following crypto for a while now and I’m looking for when to shoot my shot until I came across Mr. Eric. I will remain thankful and keep spreading your good tactics of making profit all over the world.
I have respect for Warren buffet but Charlie ? Lol
These 2 folks are becoming a joke not allowing BH’s cliental adapt to innovative trading
T
With all respect for Buffet I have to say that regarding Bitcoin they have no clue at all.
What a stupid answer from Munger that he hates a currency that helps criminals.
Does he prefer if they are paid in USD or EUR? Criminals have existed before Bitcoin and they will exist if Bitvcoin is gone.
Six figure socialist sells mobile homes and is in the used car business, to get ahead you have to take advantage, ain't that right the buffer.