Stocks Explode To All Time Highs After Massive Breaking News (Do This Right Now)

All right, what's up everybody and welcome back to another Thursday here in the stock market. Well, I wanted to jump on and make a video for you all today because we are seeing the stock market having an outstanding performance this morning following the release of some inflation data just a couple hours ago. I mean, what you can see here is that the AI sector is up, entertainment's up, hyperscalers are up, the S&P 500 is now pushing a new all-time high with SPY at $779. And my own public portfolio is now up over $77.8,000, 8,000 which is a 20% gain year-over-year and over $103,000 all time. All as a result again of this inflation data that released just this morning. And so because this data was so impactful and important, what I wanted to do in today's video is just break down everything for you. We're first and foremost going to go over what this news was. Then we're going to talk about why the market itself is responding so dang on positively to this data from this morning. I'm then going to go into why I believe this is especially important for you high beta investors out there. So, those of you who invest into, you know, AI, AI plays, fintech plays, crypto, etc. And then we'll finish up by diving exactly into the moves that I'm making in my own portfolio as a result of this news. And my goal is that by the end of this video, you feel fully caught up. You have a full understanding of what this data was, why it's important, and you know, what sort of impact it could have on the market moving forward. So, we have a good bit to get into today, and I don't want to keep it too long on a Thursday, folks. So, let's go ahead and let's jump straight on in. So, first and foremost, what was the news? Well, the news came from inflation. As many of you know, yesterday we got CPI data and today we got PPI data. And if you don't know what that is, CPI data represents the inflation that is being of course experienced by the consumers here in the United States. PPI inflation or PPI data represents the inflation that is being experienced by producers here in the United States. And honestly, they came in pretty good. Now CPI came in about as we expected. 2.5% on core, 3.4% on headline year-over-year. This is what the market was expecting. This is what the market got. Now, it is worth noting that this is the coolest core year-over-year reading for C CPI data since 2021. I think that's I think that's well worth noting. And although the market was expecting it, I don't think the market's talking about it enough. Inflation is moving in the right direction clearly and the market doesn't really seem to pay attention to that quite yet. But nonetheless, that's what we got. Now, that was what the market was expecting. That's what the market got. The big thing happened this morning. The big thing happened this morning in which PPI data came in at a 0% growth month over month for headline inflation. While it was expected to come in at 02%. So, analysts and Wall Street was expecting PPI data to come in at 02% it came in at 0.0%. meaning it didn't grow month overmonth while they were expecting it to, which then of course goes and puts headline year-over-year at 4.7% down from 5.5%. Now, in all fairness, there was a bit of a readjustment from the previous month, but nonetheless, we are seeing headline data for PPI lower than analysts could have even imagined that it would be. And so, all in all, this is very important because what it says is that inflation is not only under control, but it's cooling. It is genuinely genuinely cooling. And naturally, if you're an investor, this is very important for you. It's very important that inflation is cooling because what happens with inflation is going to have a direct impact on your portfolio. I'm not talking about the stock market. I'm not talking about just the crypto market. I'm talking about basically every single asset that you hold in your portfolio will be impacted by what's happening with inflation. And the news that we got this morning was good. And that's why the market's responding as it is. And so now that you know what happened, let's talk a little bit more in depth about why this is so important because I think a lot of people get this wrong. Now before we continue with today's video, I did want to speak directly to those of you who watch my channel that are invested in or interested in investing into companies within the AI trade such as AMD, Micron, Nvidia, SKHEX, SanDisk, you know, those sort of companies, memory plays, semis, you get the point, right? And what I wanted to talk about really quickly was a bit of a problem that I'm seeing many of you having from my comments, from my DMs, which is the fact that there's just too much going on. You know, I'm seeing this comment all over the place, Tyler. There's too much going on. There's news literally every single day. Some of it's good, some of it's bad, one day Nvidia's up and Micron's crashing, one day they're all crashing. I can't stay on top of it. And I feel like I'm just constantly lost in the sauce when it comes to this whole AI thing. I'm seeing it everywhere. And most of you watching probably feel that. And because many of you are going through this, I wanted to take a second to show you our channel partner, Mumu. Now, if you've watched my channel before, you've seen me use their products and services basically every single day. But the reason why I use them so much and why I wanted to talk to you about them is because I believe they offer the best products to stay on top of everything that's going on with these sorts of companies such as a Micron for example. Because not only can you trade Micron on their platform, everybody knows that, right? 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So if some of you are looking to try to build up an Nvidia position or build up an SKH Highix position and you didn't know where to start, this could be a great place to start because not only are you going to get all those tools and products I told you about, you're going to get them through bonuses just for signing up and depositing, of course, with terms and conditions that apply. So I'll leave the link down below. Let me know if this is something that you all are interested in because I think it's absolutely fantastic. And of course, as always, shout out to Mumu for always being a great partner of the channel. So, the reason why this data is so dang on important for you and your portfolio is because the market believes, and it has believed over this entire year that the Fed was going to increase rates, that they were going to have to hike grades. The market has been under this perspect, you know, perspective that, hey, inflation's out of control. Kevin Worsh does seem to be a little bit hawkish and the Fed is going to have to raise rates. They're going to have to hike rates and the market's been feeling a little bit nervous about that. It's been feeling a little bit worried about that and it's been pricing that in. So, I know you may not believe it, right? Because we are seeing all-time highs and it feels as if the market's in a good spot. But I'm telling you, Wall Street is pricing in rate hikes. They don't believe that the environment that we are in right now is the most conducive for growth. And that's why you are seeing PE ratios and forward-looking PE ratios being contracted substantially in many of these more high beta sectors. The market is pricing in interest rate hikes. At one point, there was what a 75% chance that they hiked rates in September. That's what the market is expecting. It's also a part of the reason as to why some of these more rate dependent companies like SoFi have been taking a beating this year because that's what the market is expecting. Now, the reason why again the market's expecting that is because of the inflation problem. Inflation has been sticky. It's not coming down. It hasn't been falling. it's been a bit out of control again. And market says, well, look, Kevin Worsh has made it very clear that he's getting it to 2%. So, how could he not cut rates or how could he not raise rates? Sorry. Well, when you start to see this data, it makes you go, "Oh, maybe not." And it makes the market go, "Maybe not. Maybe the market, you know, maybe the the Fed won't have to hike interest rates. Maybe this inflation problem is going to take care of itself. Maybe we're going to see these rates continue to move in the right direction once this Iran conflict comes to an end." And maybe the Fed either doesn't have to hike rates or maybe they just do less. The market was pricing in two or three at one point. What if it's just one? What if it's none? It's starting to make the market second guess what it was expecting. And what it was expecting was a worse environment than what we may be entering into. And that is a good thing, especially when you consider the fact that the market believes that this Iran conflict will end soon. The market believes that it will end soon. And if you don't believe me, just go look at oil. Go look what's happening with oil. As you can see, ever since we saw oil's prices start spiking way back here, way back here, way back here, all the way back in March, it has been in a consistent downtrend. And although it has popped back up a little bit, it is still in a consistent downtrend. And it has been struggling to gain momentum and it is on downward trajectory. The reason why oil prices are on downward trajectory is because the market believes that this Iran conflict is going to come to an end soon. And when it does, it's going to hopefully um fix the supply demand issue that we're experiencing in oil right now and allow oil prices to come back down to where they were. Because dude, literally just a few weeks ago, earlier in July, we saw oil prices back down in the 60s per barrel for Brent crude oil. There's no reason as to why if we do see this Iran conflict come to an end, it's safe to assume it'll remain a little bit elevated, but that we can't come back to around the high 60s. Do I think we're going straight back into the 50s? No, probably not. because there will still be some sort of geopolitical tension there. But could we come back into the this the high60s? Yeah, absolutely. 100% we could. And under that circumstance, oil prices coming down brings down everything. Although, you know, some people will say, "Oh, core CPI is completely unrelated to oil." No, it's not. What happens with oil prices does have an impact on core CPI and core PPI as well. And I know that the data may say it doesn't. I'm telling you it does because you just have to look at the derivatives of those certain things that are within steel and core they are impacted by oil prices. Anything that has anything to do with gas which is everything is impacted by oil. And so my whole point here is that if this Iran conflict does come to an end soon based on what we're seeing right now with CPI and PPI, it's more than reasonable to assume that this whole inflation problem could just take care of itself. And the environment that we're in right now, this constrained environment that we're in right now with elevated interest rates could easily have enough downward pressure on inflation to pull down these rates and keep, you know, get inflation down to where the Fed wants to go to without them needing to put even more constraint on the market. And that's why people are so happy. And that is why the market is so excited because it's a clue. It's a massive clue that says, hm, maybe, just maybe, we've gotten this thing wrong. Maybe, just maybe, we've been assuming the worst thing would happen when realistically that might not be the case. And I think that's a huge reason, huge reason as to why you are seeing this market responding so dang positively to PPI data because at the end of the day, if there's less hiking, it means the market has to repric higher. It has to repric higher. I mean, think about it, and obviously time will tell, but you have to think about the setup. If the Fed either won't need to hike rates or hike them less, then the market will in many ways be forced to repric itself in to factor in a less constrained environment. Cheaper money, or at least the fear of expensive money coming off the table, places this market in a more risk mentality. And if you're someone who's invested into high beta plays, this is especially good for you because also think about the further setup. If that repricing does occur, this is going to be positive for things like SoFi, all your big AI names, crypto, and all of the stock companies that benefit from crypto. Because all of these more high beta plays are extremely liquidity dependent. And in an environment in which rates aren't being hiked up as much as the market was expecting, there's more liquidity in the market than the market was expecting, which is a much more positive catalyst for high beta investments, right? And so across the board, this is really, really good news. And look, I get it. I know some people are going to say, "Tyler, inflation data is skewed. Inflation data is delayed. Look at the way in which oil prices are climbing and dropping." And look, I get it. And I'm not saying that we're out of the woods yet. I'm not saying that inflation is for sure going to come back down. I'm not saying that oil prices are going to continue to fall. I'm not saying that. I'm saying when the time does come that eventually this Iran conflict comes to some sort of end and oil prices start coming down, there's a very real world that the Fed will not need to do anything and inflation will start taking care of itself. And when that time comes, all of the people who have been positioning for a hiked environment, a more constrained environment, are going to be preparing and pricing for an environment that is much more conducive for growth, especially in high beta plays. And this gives me so much more confidence to hold something like SoFi, right? It gives me so much more confidence to hold something like Robin Hood. It makes me so much more confident as a crypto investor because these are the exact sorts of companies that will be at a massive benefit when that time does come. And sure, this is a very volatile um environment. Geopolitically, there's still a ton of tension over in the Middle East and this could drop on a dime. I mean, Kevin Worsh could just come out and crush all of this theory at, you know, the the the next FOMC meeting. That is still very positively possible at least. But it doesn't change the fact that this is a massive clue for what the future could look like. And that sort of clue will be priced in by the market. And that sort of clue will lead to a day like today. And hopefully it does last because I'm not going to lie, folks, it feels really dangling good. public portfolio is up nearly four grand today. 5,000 on the week, 15,000 on the month, 3,000 on the or 15 25,000 on the quarter, 77,000 on the year, 100,000 all time. And I do believe that if we continue to see the Iran conflict maybe sizzling out a little bit, you know, relaxing a little bit, oil prices continuing to pull back and this inflation data coming in lighter than expected, there's a world in which we enter into an environment which is much more conducive for growth, which is hilarious considering the fact that we are at all-time highs. So that's where your real euphoric rally could come from. That's where your big pump could come from. And that could be the sort of thing that need, you know, Micron for example, Nvidia for example, AMD for example, what they need to get out of this, right? It's going to take a good big strong catalyst to get people excited about AI, about high beta and an environment in which we are moving into a or a situation in which we're moving into an environment that is much more conducive for growth based on inflation. Telling you, I'm telling you, it could be the thing that gets you out of here. So, we're going to keep an eye on it. I'll keep you updated on it. And what I don't want you to do is I don't want you to take this and run with it. I don't want you to I don't want you to say, "Okay, I need to go all in right now because reality is, listen, the Iran conflict, it can change just like that." And it's changed so many times. This could be good today and gone tomorrow, right? So, I don't want you to go all in as a result of this. But, I do want you to lean into this a little bit. I want you to pay attention to this a little bit because this is a real shift. This is a real change that is happening in the underlying foundation of this market that can be extremely impactful for every single asset in this asset class and you're going to want to pay attention to it. You're going to want to watch it very closely. You're going to want to stay uptodate on it. And that's what I'll try my best to do is keep you updated on what's going on, keep you updated on how it's playing out and where I think we go from here. So, in my own personal portfolio, I'm not using this as a reason to just go all in. No, I'm not just going to buy the S&P 500 or Robin Hood or SoFi or go in and start adding to the hyperscaler trade right now. I'm not really going to do those things right now because it doesn't particularly make sense. But what I will do is continue to use this as an opportunity to buy the dip. When we get dips, I will buy them because I think we are moving into an environment that is much better than people realize and that could produce even more gains. So, I'll keep you updated on how it plays out. This says a ton about SoFi, you know, and that's a whole another video. So, I'm probably going to make a full video about why this is so good. But man, I could see a world in which this starts to be, you know, one of the early catalysts that can maybe get so high up towards $20 something dollars, right? Like there's so much that could come as a result of this that people just don't seem to be talking about it enough. So, I'll keep you updated. All right. So, if you did enjoy today's video, if I did accomplish my goal of getting you updated on what happened and why it's important, please do let me know by liking the video and subscribing to the channel. I do have some links down below if you want to go check them out. But, make sure you go check out all mumu and get some of those bonuses I told you about earlier cuz they're really dang good. And I can't wait to see you all in the next one. Peace out everybody.