Hey guys, it's sasha, so yesterday, a very popular finance, youtuber, called chicken junior singapore released a video that offers some incredibly stupid and very dangerous advice, and i watched the video and was really taken aback, because chicken genius seems to be universally admired on youtube. Everyone seems to love him, his fans adore him and he has built up this persona that people seem to really take to. He is an honest guy. You see who shares killer trading tips and two months ago he quit youtube with all my heart.

This is my last piece of advice: don't trust easily most people fall for the trap of a good salesman. He made a whole video about quitting youtube and i think i was about the only finance youtuber who didn't make a sad reaction. Video. Now i don't have anything against ken personally, i also do not have anything against what ken chooses to do with his own money.

If he wants to play the options game, any other kind of gambling. That is completely up to him. I do not care one iota. What anyone does with their own money, but i do have a problem with extremely bad direct, specific financial advice being dished out to people on youtube, and this video yesterday comes on the back of a few short videos marking the miraculous return of ken after he quit.

I try my best not to get involved in youtube drama as much as possible, and i make very few videos like this, but unfortunately every now and then i see something so bad so disgusting that i really have to call it out - and this is one of Those videos, so i apologize in advance. We are going to have to call a spade a spade and we might have some slightly colorful language. So this is what ken said in his video yesterday buy the dip for every one dollar, the central banks injected the stock market went up one dollar if the fed removes one dollar, the stock market drops one dollar. Unfortunately, this point is complete and utter and has absolutely no substance whatsoever.

I will show you the numbers in a second, but let me play a bit more of chicken geniuses video first. This is the fat balance sheet notice. It has been going up since 0809 crash and the stock market goes up accordingly, the central banks, control money supply and right now, the fed plans to remove two trillion dollars. This means the stock market will drop a lot.

So the argument here is that the level of the fed's balance sheet increased since 2008, and the stock market also went up since 2008, so the two must be correlated and there must be a causal relationship. Unfortunately, this is a very common mistake in statistics made by people who don't understand, statistics just because two things have a similar trend means absolutely nothing for one causing the other or there being any kind of correlation whatsoever. The first problem here is that if you actually do overlay the two charts you can very quickly see there is extremely poor, actual correlation other than the fact that both of them kind of go up. Here i have overlaid the two charts with the y axis intentionally skewed to make them line up artificially, because that's how you do analysis, the stock market actually went down in 2008 when the balance sheet started.

Increasing and the stock market then had a big wobble in 2011, when there was no movement in the balance sheet whatsoever and the stock market actually dropped in 2018 and in 2020 without the balance sheet going down for whatever strange reason and in 2018 the fed already Ran a smaller quantitative tightening program and guess what the stock market went up, how bizarre the fed balance sheet is a very important macroeconomic variable that affects many things, but the effects are much much much more sophisticated than this junk piece of analysis. Oh and you can see on his own chart that the balance sheet went up by about eight trillion dollars since 2008 and he's comparing it to the s p. 500. So let's go and compare to the s p 500, which has gone up by 33 billion dollars.

Roughly in the same time frame, so i'm not sure exactly what it is that he does in terms of maths here, but there is definitely no one dollar for one dollar relationship whatsoever. I mean it makes absolutely zero sense anyway, logically, but it doesn't even match what he's saying, because, according to this theory, the stock market only goes up and down with increases or decreases in the balance sheet, and nothing else really matters. It's one dollar added to the balance sheet. Therefore, the market goes up at one dollar.

So, according to this stupid argument, there is absolutely zero productivity or any kind of organic growth in terms of overall market at all, which means you might as well stop investing in the stock market altogether, which incredibly, is exactly what ken decides to say in this video. Do not fight the central banks and until they stop removing money or the rumor, that they will stop removing money to slow inflation do not buy the dip. I mean it is not surprising because he has been saying the same thing a lot recently, and this is a massive problem, because there are no ifs, no buts. We have a finance youtuber, giving very exact, very specific, direct, investing advice, no qualifying statements or considerations or kind of pieces of thought.

There just plain instructions to not invest in the stock market, and i just showed you that the reason being given is a giant pile of horse. Ken has exactly zero idea where the stock market is going just like. I have no idea where the stock market is going and, just like you don't either nobody does. The interesting thing is uh.

You know. Obviously we have the faintest idea what the stock market is going to do when it opens on monday. We never have had, but there is this culture on youtube of pretending that you are the messiah. Who knows, because you have shown that one graph went up and another graph went up.

Therefore, proof i just went onto the website of the us department of agriculture and got some incredible data check this out here is a nifty table for the per capita consumption of cheese in the united states since 1995, and if you look very closely at mozzarella, you Will notice an incredible trend? I plotted this chart of how much mozzarella people eat in the united states, and the very concerning thing is that it seems to be even more predictive of the s p 500 than the fed's balance sheet, and there has been a worrying recent trend of people eating Less pizza, because it is, you know not all that healthy, so i guess we should definitely not invest in the stock market until pizza is back in fashion and people start eating more mozzarella again but wait. The problem here is actually a lot worse. It's not just tied to this video because i am sure there will be armies of ken's fans, leaving colorful comments below this video telling me that i am a donkey or something worse, because that is what ken likes to call other youtubers, because he is the righteous One and everyone else is an idiot, but i am guessing many of these fans. Don't really know much about ken's background, because ken makes a song and dance in his videos about being a successful entrepreneur and therefore his views on investing carry far more weight than everyone else's.

After all, he is not here for the youtube algorithm. He is not here to make money on youtube. He is not a grifter like every other finance youtuber. He doesn't try and sell people ridiculous courses with spurious claims, except that is exactly how ken has made his money.

That is how he does entrepreneurship. He has sold courses on trading options under many different brands. Just go on google and type in 1010 course, and here is the number one result learn how you can easily and safely generate two to three percent or more of passive income with as little time as 15 minutes per month. How handy here it says: hi there, i'm ken tang, the co-founder of this course, an entrepreneur owner of businesses, property blah, blah blah trust me a typical, very, very typical sales pitch.

He is financially independent, retired early, and you know what making a giant load of money. Just like him is super easy. It just takes 15 minutes a month and you can get returns of two to three percent per month, which is way way more than the stock market is just so easy by the way, this kind of advert would actually be illegal. In the uk in the united states, because promising high returns of investing and saying it is easy and safe literally, is moronic, i am not up to speed with what the laws are over in singapore.

Maybe they are more lacks, but this is disgusting. Unfortunately, i don't know exactly how much this course was because it is not available now, but it has all the classic fake guru, click funnel elements go and watch this little introductory video. Then i'm gon na go and sell you into the course. It is super easy.

It is quick, you don't have to be financially savvy trading options is really easy to understand. It's just a simple four-step system. It is also safer compared to other options, investing strategies, and yet there is no risk whatsoever. You make money, stocks go up.

You also make money stocks go sideways, you make money, stocks go down, you make money, whatever happens. What is not to like this is the disgusting grift that can use to earn his money. So when you see his portfolio that has some number of zeros, those zeros didn't come from some kind of genius investing moves over the long term. It appears that at least a fair chunk of it came from selling disgusting get-rich-quick courses through shilling, extremely high-risk, investing strategies in countries like the us and uk.

It is illegal to offer options trading to unsophisticated investors. There are literal laws, and this is why you would have to self-certify yourself as a professional investor, and you might have to show evidence in order to be able to trade options on most platforms. And the reason for it is because it is high risk. Yeah high risk not no risk, it is not easy and it loses a lot of people a lot of money and it will continue to lose a lot of people a lot of money.

According to ken, he invested just ten thousand dollars many years back and that ten thousand dollars without any other money being added, grew to 2 million. That sounds pretty great. I am guessing that he used the secret sauce strategy that he is now selling in this course to do it, so he must probably have already got the 2 to 3 per month as well, which is what he's using to base those numbers on. So, let's assume he got an average of 2.5 percent per month on average, and that is a nice 34 return per year, while the s p 500 gets 9 to 10 percent, and that is also way way way.

More than any famous fund manager has really ever achieved over the long term, which is fantastic news completely realistic as well. But the funny thing is that, even at that rate it would take 18 years to get from 10 000 to two million dollars. Assuming nothing happens along the way and you continue raking in those ridiculous returns every single month. So unfortunately, the bs numbers just don't stack up and are just the ad, is a textbook fake guru, sales pitch promising stupid levels of returns, on investment for doing no work needing no knowledge and carrying no risk.

If you are not sure this is his course, his face is on the pictures further down, don't you worry just above the obligatory testimonials of people, making twenty thousand dollar profits earning five bazillion percent returns. Just like the typical scam kind of comments, you're gon na see uh below my video as well, and i know this is going to irk people, because chicken genius is a really popular guy because he is honest, he speaks the truth and i don't have a problem With people trying to educate on youtube, i don't have a problem with people offering genuine educational courses on youtube, whether i think they're, good value or not. I don't have any issue with what people choose to do with their own money. I do have a problem, though, with people pretending that they are some kind of oracle, when the truth is that he is completely full of crap.

I also have a problem with people preying on the vulnerable and selling courses about getting rich, quick with no risk. And now this god's gift to investing is actively instructing people to not invest, because he knows exactly what the market is going to do exactly when it's going to do it based on analysis. That looks like a rotten pile of excrement. This is absolutely not okay.

How the do you look yourself in the mirror in the morning and not feel disgusted at selling this stuff seriously? What the actual i know, some people will cherry pick some of the tips that he gave and say that he is the true messiah because he apparently sold all his positions back in january or december and shorted the market. He is absolutely perfect, except here is the video from his channel from the end of january, where he gives some tips on what to do in this market crash and selling. Now just means one thing and i'm willing to take that bet. The people who sell their returns as an investor has historically underperformed indexes over the long term and a week later, at the end of february, he was absolutely confident there was going to be a sharp v-shaped recovery.

Look there's evidence he drew some random line, which proves that that was the absolute bottom i've predicted in a previous video. I drew this v-shape and so far so good, and here is why i'm confident this will happen. I really really hate grifters, who draw some random lines on the chart, pretending that they mean anything because technical analysis, bro and then in march he was also still strongly advocating that people go and buy the dip, because cash is trash, etc, etc. Inflation is an invisible tax on the society, because simply cash is trash.

Your buying power shrinks. The only solution is, invest. You got to buy cash, generating assets like stocks or real estate. That's proven over time.

Don't worry about everyday price movement a year from now. You will be looking back and telling the next generation of investors like a war veteran, and this is after the war started, the market fell even more. We already had oil at 120 a barrel, and apparently it was two months after he had decided to sell everything and absolutely perfectly timed the market, and now that the market overall is down 20 now compared to all those other months. You definitely should not be investing, because now the technical analysis you see shows the exact opposite for whatever reason, maybe because it is absolutely full of and is made up to suit.

Whatever narrative it is that you want to peddle. We have a very disturbing culture on youtube of people who will blazingly offer direct and specific investing advice based on dog people who will not bat. An eyelid selling get rich quick scams to vulnerable people in financial trouble. People who take advantage of the ability to say whatever the it is that they want no matter if it's illegal or morally obtuse, we need to cut this out.

This is really not okay.