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If you had tendees today and got wiped out because of what happened to apple. Here's why what happened to apple. Today is actually good news and that's what we're going to talk about but first in case. You haven't heard about what's going on with apple let's go ahead and give it to you apple has officially joined the companies that are planning to slow hiring this obviously follows other companies that we've also seen announced slowing hiring or potentially.

Even announcing a warning of layoffs like mark zuck. Who suggested layoffs at least two or three times so far this year over at facebook meta uh tesla laying off obviously 10 of their workforce their their white collar workforce not their factory workers google amazon slowing hiring snapchat vimeo just announcing today is slowing and hiring uh amongst obviously a host of other companies whether they're real estate companies banks laying off mortgage departments. Lots of layoffs and and uh job losses are coming now still at the same time. We somehow gained 370 000.

Jobs last month and unemployment claims while they're ticking up. They're actually not really exploding. So it's kind of weird. But in case you're wondering why your attendees went away today.

It is because of apple because they're warning uh. You know these these kind of leaks come from sources that aren't supposed to be talking on this. But it's been confirmed by multiple folks now. According to bloomberg multiple leaks that talk to bloomberg are confirming that apple is planning on slowering uh hiring and spending at least on certain teams because of a potential economic slowdown and uncertainty now the company's apparently still reportedly uh planning on releasing their major product roadmap including their vr headset in 2023 apple's down 16 this year in line with the s p 500.

But a lot of folks are wondering is this potentially just the start are companies starting to actually see real slides and sales and are companies. Realizing that uh. Oh yeah we're not gonna meet next quarter guide and we're certainly not going to meet full year guide and i think that's what's creating a little bit of fear in markets right now that uh next quarter. Not only are we going to see that 8 billion supply chain hit that apple had warned us about but possibly also other misses on top of that so that's creating some uncertainty and of course.

When apple moves. The market moves and so the broader market is is just becoming a little bit more shaky and fearful about okay yeah. We're probably going to go into an earnings recession and a growth recession. If not a full blown recession now before i talk about why this is actually good.

I just want to define those really quickly. Remember the differences. A real recession is generally two negative quarters of gdp and then you got to get a bunch of economists together to actually define it as a recession. Which just happens like many many months after the actual recession.

Which is kind of annoying and stupid. A growth recession is just when you have growth declining and an earnings recession is when you have earnings declining. But you're not necessarily in an actual gdp recession right so your country can be in recession. Companies can be in recession.

Company growth could be in recession. So many different kinds. The point is things are slowing down right and this all comes. After tim cook.

Already said. They're seeing inflation. They're fighting inflation with higher freight spending uh and this is kind of a rare thing for apple apple generally doesn't take the foot off the gas you know they did in 2019. When iphone sales were slowing down.

They did a little bit in retail stores in april. But i think the broader implications. Here and this is in addition to now breaking news. That it looks like there's going to be another lawsuit over antitrust violations against apple.

We'll talk about that in just a moment uh. But uh there's some broad implications of this and i want to talk about those because they really affect all of the companies that we're looking at and investing in of course uh. No video would be complete though without reminding you about that fifty percent of coupon code that expires soon and i'm on my way over to munich so uh. If you're in munich uh.

Say something in the comments uh shout out to you germans. I was just in freyden and dusseldorf and gronau and uh gesha. So if you're in any of these places howdy okay so uh broader implications that we want to take away from this one over hiring look companies just straight up overhired during the pandemic. It is what it is there was essentially employee hoarding going on there was such a massive shortage for employees.

That folks overhired just to have employees because it would be better to over hire and then thin later as necessary than to not have the staff you need to launch. This is actually a very common business strategy. It's focused on growth growth growth growth growth growth and when you need to you can always trim you can always trim. It's just really really really difficult to grow a business.

If you don't have enough talent or you don't have enough resources. Yeah. You could always i hate to say it. But you can always fire people and and that's that's an impression that companies tend to have and it's very sad.

But it's just the reality of a capitalistic world you want to attract as much talent as you can uh and and you want to grow into using that talent you want to expand beyond needing that talent to where where now you need to hire more talent uh and then if a recession comes sorry labor is a variable cost economics 101 okay fixed costs that's like the lease or the mortgage on your house or your building that you're working out of or whatever but uh in terms of variable costs for uh for employees your variable cost. Which is very similar to an airplane. An airplane is a fixed cost gas and the fuel for that airplane is a variable cost you don't fly you don't spend money on gas. So you want to save money maybe don't fly as much you want to spend less money on your company have less employees and then what can we actually finally start doing finally we can start increasing productivity and this is where the positive comes into my opinion.

Now. We're gonna go for a walk cause. It's getting really hot here. So you're gonna get a little close up here for a second by the way quick mention how many of you have actually seen this check this out single flavored haribo bags you just pick the flavor.

You want and and you can buy them here in germany. These are also much better because they're made with real fruit juices rather than all the fake stuff. I like them so much more so much better so much tastier. But anyway uh so why is increasing productivity.

So important well here's the thing and i've been saying this actually since the pandemic one of the great things about recessions is they allow us to go into great companies and basically weed them out you could go in and get rid of all the slush all the people who aren't really working hard who aren't motivated who don't really want to be there who are kind of just there collecting a paycheck investing. That's actually a strategy. It's like get into google. And just let your stock options vest and chill.

Don't shake the bush. Don't do anything crazy. Just. Let your stock options vest and get rich.

Because that's actually what a lot of people do and a lot of companies do is they'll get job offers for like 200 000 salaries. But then they'll get these option bonuses of like 500 grand over the next three years. It's insane. This is why like if you could get into tech in these kind of worlds in terms of being an employee.

Oh. There's so much freaking money in it like take it right uh oh my gosh there are actually tesla chargers. There how cool i'm gonna walk over the tesla chargers. This is the first time i've actually seen tesla chargers.

In germany. This is really cool uh on my way to munich. But anyway so walk over there but uh this productivity. Waiting that we're able to do this is a very good thing so the covet pandemic allowed the first set of weeding everybody got laid off well i shouldn't say everybody got laid off.

But a bunch of people got laid off and the idea was don't worry. This is temporary we'll hire you back when uh when the pandemic's over the companies come on let's be real they only hire back the people that they need and the good people right well then demand went through the roof. And so they had to over hire so you get one weeding round. The first weeding round lets you get rid of you know.

20 of your employees. That are just slush that you don't want then you hire a bunch of new employees and then you get to go through the weeding process again and you cut 10 to 20 percent of the jobs now we will look back at this i hope i remember to go back to this video in the future. There are the tesla chargers. Oh.

Cool german tesla. I should be the thumbnail right there. I hope i look back at this in 10 years. And i think it's so critical.

If you're a long term investor right now the companies that you want to invest in are the companies that are doing the layoffs. They are the companies that are slowing down. What apple and tesla are doing smart. It is smart to lay off i hate to say that but if we go into uncertain times.

The best thing you can do as we are clearly the best thing you can do is take advantage of your second round of weeding and now in five to ten years. We are going to be looking at some of the most efficient companies ever to exist and america. I think will be the front runner of the most productive and efficient companies in the world. So personally when i saw this news about apple slowing spend on hiring.

I was excited. But it's not just because of the productivity and i want to talk about the lawsuit briefly it's also because we know that the federal reserve is literally trying to get joblessness to happen because what they want they want these layoffs because if they have these layoffs then those people have to go get another job when those people go get another job. What do they do they reduce job. Openings then all of a sudden we in instead of having 19.

Job openings per uh unemployed person we end up getting closer to equilibrium. Which would be one job opening per one unemployed person right that's what the fed told us they want to get to so they can crimp down inflation by doing that bingo then then that's the goal and that's what they're accomplishing so these headlines about slowing housing about uh layoffs are exactly what the fed want and the more we see these headlines. The less likely. We actually are to get paul volkard and this is why inflation expectations are coming down so across the board.

This is great news. Now what's this news about these uh this new lawsuit. So okay in europe. There was a lawsuit against apple for apple pay because uh a certain payment processors thought.

It was not fair that apple basically prioritizes apple pay over as a payment as a method of payment. No matter. What the credit card is that's being used over like paypal or venmo. Right like if you double click on the side of your phone.

All your apple pay credit cards show up which could be the apple credit card or could be another credit card. But it's not paypal or venmo or the other things and so in europe. There were these antitrust claims that basically apple should allow you to double click on the right side. And maybe.

You set the default to paypal or something else well it looks. Like now. Card issuers are filing an anti trust lawsuit against apple in the united states. I don't know yet what the details of this are but i'm going to guess.

These are going to be uh companies like i mean quite frankly it could be companies like affirm paypal venmo maybe even visa. Mastercard. I don't have all the details yet but let me see if they load here the complaint was just filed san jose california and the iphone maker exercises its market power in the device markets by requiring that customers of its mobile devices also acquire its mobile wallet apple pay well that's not necessarily true and prevents customers from using competing mobile wallets capable of offering competing tap to pay solutions uh. Okay uh.

The according to the complaint by affinity credit union. Yeah. I mean that's kind of the argument. Again that you can't like tap to pay with paypal as easily by double clicking the button.

You have to actually go into the app right long term is this a big deal for apple. No uh worst case scenario they have to put a little button in if they lose. But they'll just fight it to the end in the meantime again overall. I'm actually bullish on apple uh you know if i could pick some of it up at 135 again bring it on it's at 149 right now i sold mine at like 180.

Which i was happy about but also not really happy about because i love apple is one of the first stocks that i bought ever in like 2008 and nine which was pretty epic. Didn't have a lot of money to buy with back then. But i did buy apple which is great and i kind of just dc8 over time but uh anyway. I gotta go kids are getting mad at me thanks for watching 50 off coupon code is expiring soon and the price goes up again so join those programs on building your wealth and join me in the private live streams get the lowest proposed benefits get all of my insights on real estate.

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