Why I STOPPED Trusting Assets In 2024

It's true, But why is that? Well, the truth behind these new market highs might actually shock you now real quick, if you knew the channel. My name is Mark Moss. I've been studying analyzing macroeconomic landscape. I've been helping thousands

of investors navigate them for about a decade. I speak of some of the largest financial conferences in the world, and so the comments that I see five thousand comments a week, the one hundreds of people I talk to at these events, they all ask a very similar question or they tell me the same similar problem. But the good news is once you understand this, you can fix it, because yes, you can build well faster, but only once

you understand what I'm going to break down. So in this video, we're going to break down why do market highs not actually translate to actual wealth, health increases, which assets are actually outperforming and which ones are just faking it, and most importantly, how you can adjust your strategy for actual financial growth. So stay tuned, because what you think

you know about your investments is about to change. It's about to be turned upside down, and by the end of this video you're going to have the insights and strategies you need to secure your financial future. So let's go all right, So we're going to talk about the illusion of wealth, because there's something that looks like it's there, but it's not. What am I talking about. Let's say hypothetically that I'm hiking, I'm climbing maybe the tallest mountain

in the world. Maybe I'm climbing Mount Everest, and I'm climbing, and I'm climbing and climbing, and I think the top is right there, and I finally get to where I taught I think the top is in heavy clouds, and I get to up the top and I realize that I'm not at the peak. As a matter of fact, I still got a long way to go. You see, not everything is always as it seems, And so as these assets continue to show us this new peak. A lot of times we're being faked out. Let me break

this down for you. So we see all assets at all time highs right now at the same time. Now, this is not supposed to happen. So stock indexes are at all time highs, golds at all time highs. Real estate just made a new all time high, bitcoins back into all time high territory. And again that's not supposed to happen at the same time. So what is going on. Well, we have to understand what's really happening. I've put out some tweets by the way, for now follow me on Twitter,

check me out at one Mark Moss. But I talked about that maybe the asset bubble isn't an asset bubble. Maybe the bubble is not in the asset itself, the bubble is in the denominator. Let me show you what I'm talking about. I got a bunch of charts. Let's run through this as quick as we can. Here. So here we have the Consumer Price Index CPI, and of course it keeps going higher and high and higher. Gas goes up, food goes up, travel goes up. Everything's going higher.

But as prices go higher. What's really happening is your purchasing power is going dead. So you already know this. I don't need to go deep into this. But it's not that things are getting more expensive. It's that the purchasing power of your dollar, your currency units have gone down. You can see how they work in perfect unison. Now you have to understand that. If you want to understand, you're investing in building wealth. Now, why is it doing this?

Why are those purchasing power units going down? Well, it's because the government continues to increase their debt and look at this trend line growth difference. As a matter of fact, it took a few hundred years to get to one trillion in debt and now we're adding it about every quarter. And so as they print these more currency units, they buy you less and less, so they go down, but the price goes up. Now, once you understand that, you

can start to understand a couple other things. For example, why does it feel like you're actually getting more poor when you think on paper, you're getting more wealthy. I make more money than I've ever made before, right, my assets are worth more than they've ever been. So why is it that I feel poor. And the reason why is because in purchasing power you're actually going down. I'm going to show you exactly at which rate and how

this mechanic works. But this is why, over time, your purchasing power is going down, and so as your pursuing power is going down, your rent is going up. This is exactly what's happening. And if you want to understand why, or more importantly mechanically, how, this is the chart you

want to look at. So when the governments print more money, deficit spending, borrow more, et cetera, it increases the money supply in the world what we might call liquidity, the liquidity in the system in order to keep the system moving. And this is a chart of the S and P five hundred and global liquidity. And what we can see is that the S and P five hundred moves almost exactly with global liquidity, as a matter of fact, about

ninety five percent correlation. So what does this mean. It means it's not really the S and P five hundred going up into a bubble. It's the bubble in the money supply that's pushing it up, you see. So if it's only going up at the rate of money growth, you're not actually getting ahead. And this is the problem. That's what's really driving prices and so the difference of

assets and wages. So what we're seeing is assets, the S and P five hundred, the real estate in the United States, et cetera, are going up at the rate of money inflation monetary increase. And what is that, Well, it's about eight or nine percent. But your wages go up with the rate of growth of GDP growth, which is right now about one point six. So your wages are going up at one point six but the prices of everything are going up at eight or nine percent.

That's why you're feeling this divide. Okay, but there are some golden tickets in here. Okay. Not everything moves up the same. Obviously you understand this. Why did TVs and computers get cheaper while gasoline and state got more expensive, et cetera. Right, So not everything moves up the same. Let's run through some different charts now just to illustrate this.

Let's just take a look at this. So in two thousand and eight, when QE quantitative easing started, you can see the Fed's balance sheet, the liquidity, the money they printed put the liquid in the system. It increased massively, So at this point in time, two thousand and eight is when everything started taking off. Now again, the S and P five hundred basically is just like a proxy for inflation. It basically represents the money supply increases. So

that's not where you're going to make any money. And unfortunately for most people, they're just passively investing. As a matter of fact, the rise of passive investing has only gotten bigger and bigger and bigger. My money goes from my paycheck into my mutual funds, my four oh one K, and they just put it into the S and P five hundred index. That's why you're not making any money. Let's take a look at some of this. If I look at the S and P five hundred, and I

divide it by the increase in the money supply. So what I can see is there was a peak right here back in two thousand and it's never reclaimed its high. So since two thousand, your S and P five hundred index that you're probably invest into has never reclaimed its high. I mean, it's gone up and down, up and down, but it's basically flat. Look how flat it's been right here now? If we look at the S and P

five hundred priced and other things. So, for example, the S and P five hundred is an asset, just like gold or your house or your food is an asset. So we can look at your house. How many US dollars is your house worth, how many ounces of gold is your house worth? How many barrels of oil is your house worth? How many bitcoins is your house worse? We can look at it price to different things. Now, I say this all the time. We don't want money.

We want the things, the goods and services money buys us. We need commodities, we need real things. We need gas, we need energy for our house. Right, and so if we take a look at the S and P five hundred priced in commodities things that we really need, we can see that again it's down. So this is why, even though your index says it's that new all time highs, you feel more poor than ever, because in terms of real things that you really need, it's actually losing money.

You're actually going broke. Now, let's look at it a couple other ways. As I said, the case Shiller index the United States housing market just hit a new all time high last week. Well, did it really, because what we can see right here, since the year two thousand, I'm sorry, two thousand and eight, homes have never recovered

their high. Now on paper, yes, my home has never been worth more, but when you adjust it for the money supply, for the increase in the money, it's actually down forty eight percent since two thousand and six, not two thousand and So since two thousand and six, my home has actually lost forty eight percent of value compared to the increase in the money supply. Let's look at some other assets though. So the S and P. Five hundred is not a good place to be. Real estate

is not a good place to be. But let me say this, first of all, real estate works. First of all, real estate would be a horrible investment for us if we had to pay cash for homes, but we don't. We use leverage, and so that leverage allows us to make a higher return. We also get what we call inflation debt destruction, so that we can lock in thirty year loans. In America, other countries not so lucky that inflation destroys that. And then if it's a rental property,

I let someone else pay it off for me. So real estate works and also tax efficiency as well. So real estate works because of those four other factors. But if I had to pay cash, as I showed you, it'd be a horrible investment. But not everything is lost. Don't worry, because there's golden tickets. So for example, gold, gold is up forty eight percent even in the face of all the money printing. So not only has gold been able to overcome the loss of the money printing,

it's up forty eight percent. Sounds pretty good. And then what we really have going on is a tech narrative, and so the NASDAK, not the SNP five hundred, The NASDAK represents most of the tech stocks, and we can see since twenty twenty right here, it's up ninety percent when adjusted for the money supply, so it's overcome the debatement of the money and it's gone up ninety percent

in real terms. Pretty good, we're getting warmer. What else, well, again, following that tech narrative, we can see Bitcoin is up since twenty twenty nine hundred undred percent, so it's overcome the debasement and it's gone up nine hundred percent just since twenty twenty. Then we have in Nvidia, which is the most incredible company we've ever seen in the whole history of the world. Makes no sense, but here we are driven by the tech ai narrative. Since twenty twenty,

it's up eighteen hundred percent, overcoming the debasement. Now, if we look at this, remember I was talking about how liquidity is the most important thing to watch and understand, and I showed you how liquidity basically moves the S and P five hundred up in exact perfect terms. But if we take a basket of monetary hedges, which is basically gold and bitcoin, we can see that there's only an eighty percent correlation. So times like this it's overperformed, overperformed, overperformed,

and yes it underperforms as well. What this basically tells us that for every ten percent increase in global liquidity, the sensitivity ratio for gold is one point four, which means it goes up by about fourteen percent. The sensitivity ratio to biccoin is eight point ninety five, which means bitcoin goes up by about ninety percent. So every ten percent increase in liquidity, we see bitcoin go up by

ninety percent. That's exactly what you're seeing here. So again this is why you're not feeling it if you don't understand this, all right, So what we're really seeing is that purchasing power is what we have to look at things in, not the value, not the nominal value, not that my S and P five hundred index has never been higher or my house never been higher, but the

purchasing power of that. So, for example, in two thousand and eight, we saw gold come down with stocks, but even though gold came down in US dollar terms, it could still buy me more things. So even though the US dollar valuing down, the purchasing power went up. So we have to retrain our brain to look at things differently. Now, like I said, we're seeing assets basically move up at the rate of the money supply increase, which is eight or nine percent, but wages go up with GDP. Now, GDP,

as you can see right here, is way down. Now. This is since twenty twenty one. Ish. Twenty twenty one, we had a seven percent GDP back here in twenty t one five percent, six percent, seven percent. Now we're at one and a half ish who knows what the real numbers are, And you can see we've been pretty flatlined for the last several years at the two percent range. So while everything's going up by ten percent fifteen percent,

your wages are not keeping up. So the important thing to understand is that we want to look at the purchasing power. And when we're looking at our assets, if we're only looking at them in the currency, whether that's euro, yen, dollars, et cetera, you're being faked out. All these paper gains are not real. So knowing this, what's the strategy. Well, the strategy is number one, you need to understand that you can't just use the unit of account, being that

via currency dollar, y in euro, et cetera. You need to look at these assets in relation to other assets, a basket of assets, so again how many ounces of how many bitcoin, how many barrels of oil, and then you can start to understand the purchasing power of those things. You have to understand that we need to keep an eye on the money supply, of the liquidity, and not the inflation. So the government's like CPI CPI CPI inflation, inflation, inflation,

that's not what's really driving prices. So again, back when everybody thought the market was going to crash down, homes were going to crash. Stocks were going to crash. If you remember back to late twenty twenty two, early twenty twenty three, I was making videos say no, they're not going to crash. Why because I was watching the money supply.

The next strategy is diversification. Now, diversification is something that you've been taught by the likes of Ray Dalio and of course your mutual fund and your four one ky advisor. The problem is that doesn't work. It's not working right now. Warren Buffett would tell you to put all your eggs in one basket and watch the heck out of that basket.

And so diversification is really diversification right now, with the stage that we're in with rapid monetary based increasing, we want to go into assets that will hedge against that. And that's specifically this tech narrative again, AI crypto narrative with some gold, and so we want you to concentrate into that. It's not the time to diversify across the broad index of vestment P. Five hundred because the s and P. Five hundred ain't going up all right, So

we don't want to diversify. That's to diversify. We want to concentrate then, as I said, we want to ride the tech trend AI and bitcoin. It's why I have a bitcoin fund. We invest across the entire bitcoin industry, all the businesses that are building on and around bitcoin, and we're also using AI and a lot of the businesses. And then also you can think non traditionally. Obviously I've already made the case traditional investments, the S and P five hundred it ain't working for you. So we want

to think non traditionally. So that might be peer to peer lending for example, peer to peer businesses. Obviously, yes, invest into your own business is going to be the highest investment in the you can make. Investing into yourself for sure, if you need that. Private equity has been outperforming the S and P five hundred by several hundred times. Venture capital. Again, I have a bitcoin fund, so we

invest into that side as well. And then yes, as I said yourself, the thing is with investing into yourself is no matter what happens to the market, you can't take away the improvements you've put into yourself. So anyway, hopefully this makes sense. This is why you're being faked out. The gains you're seeing on paper are not real. And if you don't learn to see this differently and learn how to measure it differently, you're never going to get ahead.

If you continue to diversify against the basket of things that are losing value, you're going to keep losing value. But if you concentrate into the trends, you're going to get ahead. Let me know what you think about this. Are you ready to diversify across the basket or are you going to concentrate. Let me know diverse fi or concentrate in the comments down below. Of course, as always, if you like this video, give me thumbs up, and

if you don't, you can give me thumbs down. That's okay, but at least tell me why in the comments, and don't forget to subscribe while you're here. That's what I got to your success. I'm out