Hey this is tom, and let me tell you a little story as a dad. The temptation to give my kids a piece of candy bar just to leave me alone is often overwhelming. I'm not gon na lie to you. I've engaged in this behavior before and i'm sure that those of you who are parents have done the same now you do it every once in a while, but for the most part you got to be the responsible adult you know, make them eat vegetables and healthy Stuff, i mean you can't feed your kids candy bar it's going to be a disaster now.

The reason i'm using this example and i've used this before is an analogy to what's going on with the market. Right now we have the responsible adult the guardian, the parent, whatever you want to call them, which is jerome powell and the other hand. We have the kids really irrational, crazy bastards that want chocolate all day and if they don't get chocolate, they get cranky and there's a tantrum pretty much and the word tantrum is actually very fitting, because this is exactly what this market has become a completely manic depressive Kid that has gotten hooked on chocolate and can't process any sort of other food. So basically why the market went up after the pile speech just two days ago.

Then it went up a little bit more the next morning and then it crashed down simple. If you ever seen a kid coming down from a sugar rush, exactly how it looks zero to a hundred immediately, all the way to the top of the everest and then crashing down like a stone poof, pretty much. No energy lackluster completely passive, falling asleep, pretty much joe biden now jokes aside, john powell actually went on tv and didn't do the right thing. As the responsible adult he was supposed to raise interest more aggressively and completely stop asset purchases, and yet he chose the easy way out, basically kicking the can down the road he pretty much gave the kids, in this case the stock market, a piece of candy bar Now the kids went crazy, like whoa all the way up to the everest, as i mentioned earlier, but the crash as always comes very very quickly.

Just a day later after an amazing morning, everything came crashing down. Why well here's the answer for you since his speech? Basically told everybody hey: the party is going to keep going like crazy next year, we're going to have very slight interest rates, but even the long term goals is two and a half percent interest. Now, for me, that is insane. If you're, looking at a 10 percent inflation by the end of this year, probably q1 a two and a half interest, it's kind of you know moronic, but you know the market love this news, but then two things happen: number one people with some brains started explaining This is just a bluff.

They're gon na have to raise interest much more aggressively they're. Just doing this, you know to make you go away. Here's two and a half percent leave me alone. Let me drink my coffee pretty much, and the other piece of news came from europe and rest of the world, essentially letting us know that omicron might actually be a big deal after all, despite not being as deadly, it seems it's quite effective, and you know people Are freaking out about it, whether you believe it's actually more dangerous or not, that doesn't really matter the only thing that matters is how the market perceives it and the market perceived.

The news from europe is very alarming. Now you couple that, with the inflationary happiness that came from the power speech - and you get exactly the recipe for the perfect storm that we saw yesterday, everything crashing down in the later part of the day. Now you also have to consider the fact that a lot of people are selling towards the end of the year to capture losses. If you think the stock market is going to be pretty much stationary for the next few months and you can get away from the worst sale room, so you can sell stay out for 30 days and come back in and basically get the loss.

You're probably good to sell right now in 2021 and capture this loss this year. So a lot of people are assuming the market isn't going to go up in the next 30 days, they're selling now to capture the lost position and then they're going to jump back in after the war sale rule within 30 days. So those three factors are contributing to this later push we saw in the second half of the day pushing the stocks down. Now the question is: what am i doing with it? What's my strategy? What's my plan because i know fairly, people have been asking me well tom what to do we're seeing this play out in front of us, but we don't know what to do so.

I can't tell you what to do, because this is just my opinion might be. Inaccurate might be wrong, might be the complete ramblings of a madman, as you should know, and i'm not a financial advisor, i'm just a dude on the internet. I can share with you my own opinion and my own strategy for myself, i'm basically looking at this and eating popcorn and enjoying what's going on right now, not participating in this madness pandemonium. Essentially, it's like hunger games, the first scene when everybody rushes towards the center and there's like a huge bloodbath, i'm gon na hang back and see what happens so i actually have a theory.

While this whole thing is going on right now is basically just a preview. Once the fed actually comes out and admits that they were wrong again, like they did with the transitory thing, and they let everybody know that. There's a bigger interest high coming towards three three and a half four percent. Then the market would really crash, because if somebody comes out and says four percent long-term interest rate whoo, then you'll see the real crash and then i'm going to be buying in.

So my strategy is just patience and wait for the fed to basically come out and said that whatever they said a few days ago, would just that is gon na be the bigger crash. Then i'm going to actually start deploying my money for the you know buying the dip so to speak. Now i do want to talk about the two additional tweets that i missed. Yesterday yesterday i covered elizabeth warren, basically getting scissored milan by elon musk on twitter.

Coming out and saying: well, the millionaire freeloaders have to start paying tax. What was more, even kind of unprofessional of her, because she should have known he's about to pay 13 billion dollars in tax this year, which is pretty much the highest tax bill in history. That is kind of unprofessional that she didn't know that, and i don't know which option is worse. If she didn't know it or she knew it and despite it all, she went for the cheap brownie points from the floor uh.

It's such a butterfitting thing to do. In any case, this is 2021 when you say stupid on social media you get called out, which is exactly what happened to her, but after ellen called her out on the you know on the factuals, basically saying well, look at my tax bill. He basically said. Well, you know, you know he did the whole here's 12 billion.

You know scruff. Let me do my thing. He actually went to the offensive and it was nothing short of hysterical, didn't see it yesterday. That's why i didn't react to it in one tweet.

He basically said stop projecting, which i think is beautiful ballisimo, because essentially, the biggest freeloaders in society is the rich millionaire politicians and them calling the guy who's. Dedicating his life to solving humanity's biggest problems and paying the biggest tax bill in history is kind of ironic. Now the second was even funnier, he basically said well. Are you going to call the manager on me senator karen, which i thought was well done? Elon well done now.

I do want to talk about rivien. The q3 numbers came out and we had some interesting numbers. So 350 deliveries 350 vehicles, not thousands. A total of 1 million in revenue, yeah 1 billion in loss and a market cap of 100 billion in the stock market seems okay to me.

In fact, this valuation is so detached from reality. It's even worse than my grandpa. When he gets about these mind, reading satellites, which happens quite often, this valuation is even crazier. Now to be honest, region is a good company.

They have probably the best chance of actually competing in this industry. I think much better than lucid, for example, or companies like arrival or a lot of this eevee initiatives. Let's call them hanging around to get the cloud i think riven is a good company. I think there will be a significant player in the market um.

I don't think they're going to be the leaders, but i think it's a great company, especially with amazon, especially with amazon, money, the resources and the pre-orders which are real by the way so completely good company. The problem is, as i mentioned, before, they're captive of their own valuation when you get a 100 billion price tag and you come out with q3 losses like that, a billion loss in the million of revenue. You know it creates an opportunity for jokes like this. Now truth be said: that's the financials are pretty normal when you're starting ramping up in the first few years, a lot of capex expenses, a lot of money going out for very few cars coming in it's kind of what scalability looks like it's very hard.

Now we wouldn't have said a word about it if the valuation was 10 billion, which i think it should be instead of 100 billion, so when riven gets to about 10 15 billion, probably i'll buy a few shares at 100, there's no way no at all. Now i do want to talk about what just happened with elon: he just sold more stock. I'm not going to go into why. I explained this in a whole different video about how he's doing it for tax purposes.

That's not the point of this video he's already at 75 of his designated 10 sale, and that means there's probably about a week left for him to complete his sales. Now, if you're getting into tesla or you're considering getting into tesla, i think a good time would be to wait for that week to pass and then get in, because every time he sells the price pushes down not as much as other companies, because the tesla community Has brains and understand what's going on, but still when you have so much supply price does go down. So if you're, considering increasing dcaa, increasing your position getting a new position, tesla, whatever i think in the week, it's going to be a little bit cheaper and then once he's finished, selling or probably you know a few days before - would be a good idea to get In just my two cents about it and as always a huge shout out to the channel members and the patrons you guys are awesome. Thank you.

So much speaking of tesla there's a whole video. I did explaining why tesla will be probably one of the best stocks to hold during inflation. It's going to be right here, go check it out if you haven't yet, and we have a christmas special, you can subscribe right here for free for the channel. Hey.

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