So how is good news? bad news? Uh, one of the things that I wanted to ask you even before we start. Today's video is one of the big concerns that I have with up and coming, not just interest rate hikes, right? The Federal Reserve already announced that they're going to be slowing down in the way that they raise interest rates that shouldn't be very concerning. We've seen inflation come down from 9.1 percent now to 6.5 The concern that I have is we haven't really seen the Federal Reserve reduce the balance sheet and I don't really think that a lot of you understand how significant that is. One of the things that I was asking my learn plan profit Group is: what do you guys like me to make a video that I can post here on YouTube explaining how the reduction of balance sheets right or how the reduction of the balance sheet through the Federal Reserve affects the market, especially interest rates Because we all know that's why the market began to really sell off right? because it was more expensive to borrow money.

So if you guys would like to see that video, let me know. Down in the comment section, get this video to over 2 000 likes and yet it just comes down to how bad you guys want me to make that video. But without further Ado Let's go ahead and provide ready with a quick little market update. The market is uh, up.

trending for no apparent reason. Higher highs, higher lows. It's literally struggling to pull on back. Uh, not that it's no apparent reason.

Uh. We had a series of economic reports that were released today from the personal income. Again, those didn't affect the market too too much. The ones that I want to talk about is pending home sales pending home sales which doesn't come to me as a surprise.

Uh, One of the one of the things that my business partner Nick Paladino told me is that he has seen more activity now than really in the past three to four months and this report was based off of December. The expectation was that pending home sales meaning properties under contract would be down one percent. but we actually saw an increase of 2.5 percent meaning that more properties are under contract than what was expected, right? We actually saw an increase from month over month and this is great for the economy. But let me explain to you why it's not the best for the Federal Reserve Then we had the Michigan Consumer Sentiment Report.

This kit pretty much came in as expected. The expectation was 64.6 came in a little bit higher than expected 64.9 Again, that one doesn't really matter to me now. Why is good news bad news right now? So all we all we all know that you know. Originally the Federal Reserve wanted the economy to feel the pressure, right? They were raising interest rates.

They wanted the economy to slow down. So bad news was really uh or good news was bad news And bad news was good news right? Because if we saw slowdowns of the economy, we wanted the Federal Reserve to slow down. Now the Federal Reserve announced that they're going to be slowing down. But now the question is now that we know that they're slowing down right from the 0.75 interest rate hikes, there's going to be an interest rate hike early February right? It's expected to be around 0.25 so you know one-third of what the other ones have been, so that's a Slowdown What's the concern now? Well, by seeing that we have a stronger economy now and inflation has come down to 6.5 percent, I mean let's give a round of applause, right? Because the credit needs to be given words due and rightfully so, right? We've seen an amazing month for the month of January of 2023, and I know that I feel a lot better about the overall economy now than I did last year.

But one thing that has not happened all of last year they tried it I think in the month of August and it affected the market too much. The Federal Reserve needs the economy to be somewhat strong right before they begin to reduce balances because if the Market's already at 52 week loads, uh, 52-week lows. and then they begin to reduce the balance sheet. I mean that's just going to add more fuel to the fire, right? So now because interest rates have been dropping, I'm sorry because inflation has been dropping.

still has interest rates directly. Uh, because of that as well, right? Markets began to recover. If you look at Tesla I mean from Tesla on January 6th if I'm not mistaken, let me go ahead and pull it up. Uh Tesla from Gen Oh my God it's up another 9.5 percent.

Tesla from January 6 it was at 101. it has gained 70 percent in just 20. What is it? 21 days of trading, 73. It's had a huge rally and rightfully so, but so has the market right If we look at the overall.

NASDAQ Market From 52-week lows, which is right around that general area to where we're at right now 13 Tqq Three times that nearly 40. Congratulations Right now that we're going to transition into February So I think that the Market's going to Rally all up until the end of January I Think we're going to finish very, very strong just because they want to finish the months wrong. Great When they begin to raise interest rates, pay attention to the Federal Reserve and how much they begin to reduce the balance sheet and how that affects the market. That's going to be the next hurdle we've seen month over month.

I Talked to my Learn Plan Profit Group about this in today's live session. We've seen month over month from 9.1 percent to like 8.9 and then 8.5 and then 8.3 and then 7.9 right? We've consistently dropped month over month We've seen inflation actually drop. This is where I I Believe that when they begin to reduce the balance sheet and interest rates begin to pick back up again, meaning it's more expensive to borrow money. Um, this is where I believe that we will see those inconsistencies where we will no longer see month after month inflation dropping.

How do you think the Market's going to react? That's what I want you to take into consideration. Um, this shouldn't scare you. it should just encourage you to prepare and to learn more. That's all no one knows.

No one can predict the future, right? They're going to have to reduce the balance sheet. They know they did. They've been announcing it. It's not rocket science or it's not a secret, so what can you do? Don't complain.

Don't point the finger at other people of how you could have better prepared in advance. Begin to learn more, right? I'm going to work on a video. Get this video to over 2000 likes I'll work on the video for you guys and explaining how the Federal Reserve the Federal Reserve reducing the balance sheet affects the overall stock market. I Hope that you know I Like to keep things very simple I like to explain things in a very simple way, but the economy is now strong enough where it can now tolerate a hit and I think that's exactly what we're preparing for just to take a little bit of a hit is are we going to go back to 52-week lows? I Really hope not, right? Um, but I don't know.

We haven't really seen the Federal Reserve reduce the balance sheet and we have yet to see how the market reacts so I'm excited to follow up. Um again. get this video to over 2000 likes and again if you have any questions on how you can work with me on a closer basis, it's the second link down below. You guys know I work with them every single day.

It's my learn plan profit group and they are the only team that get to work with me on a closer basis. So you can either join us and or just stay subscribed here on YouTube and I Guess I'll keep you up to date with some of these videos. so if you have any other questions, feel free to message me via Instagram or Discord And that's the first or third link in the description down below. And do not forget about our Apple watch giveaway and that's the fourth Link in the description.

I'm using the Weeble trading application and if you want to use it, make sure that you use my link and deposit 100 and by using my link you will earn up to 12 free shares. I will earn one free share. So it's a win-win but you have to use my link and that's that fifth link down below. It is a free trading application available in the US So appreciate your time like always.

let's make sure that we're in the year on a green note. And don't forget Happy! Friday.