Larry McDonald: Investors Fleeing U.S. Markets - Where the Smart Money Is Going | Part II

Awe that is so terrible

Absolutely thrilled with the tariffs. Keep it up President Trump! Love it!

I am sure they diversifying!!! If we left it up to idiots like the US would go down the drain! Remember the people knew and voted for this!!!

SWIFT system and Russia was maybe one of the stupidest policy decisions in US history.

I've been making a lot of losses trying to make profit trading. I thought trading on a demo account is just like trading the real market. Can anyone help me out or at least advise me on what to do?

Larry I don't know why the markets were so in favor of Trump winning the election. Markets like surety, certainty, reliability, Trump is nothing but uncertainty unreliability and insecurity. No one including himself knows what he is going to do from day to day. He has no ideology no philosophy no strategy he is just a self-centered self-absorbed egotistical narcissist living in a world of his own delusion who has the geopolitical mentality of a grape. He has a North Korean style propaganda machine called Fox News which lies about the truth misconstrues the truth slants the truth and hides the truth. With Biden/Harris you had a guaranteed Keynesian style economic development that was creating an income driven economy in which everyone knew where to invest. There was even talk of a Chips and Science Act II again letting everyone know where to invest. With Trump no one knows including himself what's going to happen from day to day.

Larry Europe/Germany will outperform the U.S. within two years or less. Investing in their military industrial complex as well as their infrastructure will have a LARGE multiplier effect throughout their entire economy at the very same time the U.S. is cutting the very thing that was the foundation of their growth, Infrastructure Bill, Chips and Science Act, Inflation Reduction Act, and the spending in the U.S. military industrial complex to support Ukraine in its war to maintain this freedom and democracy from a blood thirsty dictator in Moscow. Personally, I would divest from the U.S. and move into European/German equities. Europe/Germany will outperform the U.S. within two years or less. If Europe stays on this course, they will grow their way out of debt. The U.S. has chosen not to stay on the course we were on so the debt will not go away the debt is going to grow as the actions of the current administration and doge will simply push the U.S. economy into a recession which will be very large severe and long-term raising the deficit/debt even more. Expanded and strengthened European militaries will be able to offer the House of Saud and the UAE the security they want and in return Europe will get reliable affordable energy they need.

Larry I have been calling this since Mid February. Recession Mid-February

We are currently in a recession but it will not become official until July at the end of the second quarter. Inflation will rise by Fall of this year. I don’t see the economy recovering rapidly the recession/Stagflation will be long term severe and deep.

Slow Economic Growth:

A.) Tariffs creating uncertainty in investment and hiring:

The uncertainty of “who’s going to get a tariff today” how long the tariffs will last and what retaliatory tariffs will be imposed is causing a decrease in investment and hiring. The 25% tariffs reimpose on Canada and Mexico. Is NAFTA dead??? If NAFTA/USMCA is dead that will be the end of the Texas economy. what countries will retaliate against the 25% tariff on steel and aluminum?? What will the effects of the reciprocal tariffs be??? What will Canada and Mexico’s response be. We see elements of this uncertainty with the ISM below 50.

B.) DOGE removing 2 million+ from the workforce in an income consumption driven economy.

You cannot remove that quantity of workers from an income consumption driven economy without there being negative economic consequences. Further those who keep their jobs have a since of uncertainty and a desire to tighten their pockets and reduce their spending because of uncertainty, creating a negative multiplier in consumption.

C.) Ending the war reducing the amount of spending in the U.S. military defense industry.

The spending to support Ukraine in its war to maintain its independence from a tyrant. Is actually money being pumped into the U.S. military defense industry creating jobs and economic activity in the U.S. economy. Ending this support is ending investment into the U.S. economy.

D.) Slowing down/ending the spending in Infrastructure Bill, Chips and Science Act, Inflation Reduction Act.

The driving force/foundation of the U.S. economy in 2023, 2024 preventing the economy from going into a recession and providing strong robust growth (as I told everyone at the time). was the Infrastructure Bill, Chips and Science Act, Inflation Reduction Act. With the decrease in spending in these programs and the very unlikely hood that the current administration will not renew or increase the spending in these programs, the foundation of the Strong economic growth over the past few years will be removed.

E.) Removing immigrant labor thus reducing demand:

Removing a million or more of immigrant labor from the demand side in an income consumption driven economy will have a negative economic impact in terms of demand.

F.) The rise in private debt:

Private debt is far more troubling for an economy than public debt. Private debt is reaching unprecedented levels and if unaddressed will lead to a balance sheet recession. The solution is a debt jubilee for anyone earning less than $200,000.00 in earned income.

G.) Market over valued Market Adjustment:

The market has been over valued because of the AI bubble and is heading for a market adjustment down even without the above issues the market is still overvalued and would still have a downward adjustment however, the downward adjustment will be more severe because of the above issues. With 50% of consumption the driving force behind the U.S. economy being done by the wealthiest 10% of society, with much of their wealth tied up in asset wealth, the downward adjustment of ma the market the asset wealth of the wealthiest 10% will be affected downward and this will decrease the consumption level of the wealthiest 10%.

Inflation:


A.) Tariffs:


The cost of these tariffs from, as of now, 25% on steel and aluminum, 20% on products from China, and reciprocal tariffs from everyone else will be passed on to the consumer. Domestic importers WILL NOT eat the cost of these tariffs but will pass a large portion or perhaps all of the increase cost onto the consumer. This will be more than a onetime increase as retaliatory tariffs are imposed and counter retaliatory tariffs are put in place to counter the retaliatory tariffs. The counter tariff, tariff war will cause importers to pass this cost on to consumers each time the tariffs are increased. Domestic producers with higher prices due to imports will be able to raise their prices as well each time the tariff war gets passed onto consumers.


B.) Mark Up Inflation:


There were four causes to the inflation we experienced after covid. One of the main legitimate causes was China staying in lock down for around 3 years leading to supply chain shortages and an increased cost in cheap consumer goods. The other two causes were the time lag for domestic supply to catch up to domestic demand when the economy came back online after covid and the removal of Russian energy and Ukrainian and Russian food products from the world market after the invasion of Ukraine. On top of all three of these legitimate causes of inflation corporations and business piled on top and marked prices up even more to increase their earnings it was very obvious in their earnings call. This was the largest contributor to the covid inflation. There is no reason to believe that the current tariffs leading to higher prices that corporations and business would not pile on top again and use this as an excuse to increase prices even more to increase their earnings.


C.) Removal of immigrant labor:


Removal from the labor force of one million plus workers from the labor supply especially in industries like construction, agricultural harvesting, meat packing industry and the poultry industry will lead to higher labor cost in these sectors that will be passed on to the consumer in higher prices.


The result of all of this will be Stagflation or at the very least slow anemic growth by the end of this year or by this time next year.


Construction will take a large hit as they will be affected not only by the tariffs in steel and aluminum but also by the reduction in the labor supply leading to higher labor cost.

I don’t see the Federal Reserve playing a dominant role or even much of a role in the economy in the near future. With the uncertainty of everything that is mentioned above, does the Federal reserve react to counter the slowing economy or does the Federal Reserve act to counter the growing inflation. Second the negative view the current president has towards the Federal Reserve and Jerome Powel. The current president has indicated that he would like to have a seat on the FOMC and has indicated his desire to remove Jerome Powel. Given the political uncertainty and the negative current presidents view of the Federal Reserve and Jerome Powel in particular the Federal Reserve will probably try to keep its head down be slow and weak to react and try not to draw the dire of the current president. We could potentially see as many as 6 rate cuts this year in an attempt to counter the recession and because the Fed knows this is what the President wants and also in the back of the Feds mind will be the fact that rising inflation will help to lower government debt.

Johnathan What low interest rates under Biden are you referring too??? Interest rates were high and only started to come down during his last year.

Johnathan wasting money on the Infrastructure Bill, Chips and Science Act, Inflation Reduction Act, and spending in the U.S. Military industrial complex to aid Ukraine in its war to maintain its freedom and independence from a blood thirsty dictator in Moscow all of which created consistent 3% to 7% quarterly GDP growth over the past three years, if this is wasting money I'll take that waste. For nearly three years the U.S. had DECLINING debt to GDP. Does anyone know what Trumps plan is????? I dont think he knows.

Funny thing is there’s nowhere to flee to…the rest of the world is worse, far worse😊

This guy is a MAGAt grifter. Unsubscribed

tick, tick,tick,tick...............

Once the Fed starts cutting aggressively, gold miners are "gonna rip".

EU is literally a communist union. They are not into the free market and competitive workforce!

🤟 I enjoyed this informative video. Your information is excellent. However, to learn everything about investing, the most important thing is to know how to invest in different sources of income independently of the government. Especially in the current global economic crisis. It's always a good time to invest in different stocks like gold, silver, and digital currencies. Thanks to Benjamin cohen's for the training📊🚀.

Exeter pyramid. Where dies bitcoin fit 😂

This hasn’t aged well and it’s only a few days old. Oil being destroyed, recession.

The last 2 plunges are perhaps caused by foreigners escaping the US market? We know China orders its investors to stop further investment in the US, and France's Macron is calling for the same thing. Other countries may be doing the same secretly in order to shore up their own currency. If the tarrifs don't reverse, this market drop could be permanent, so those still waiting for a v-shape recovery like before would be disappointed.

Oil is going down dude😂

I'm new to the market world and investing as a whole , and l've lost a good sum trying out strategies I found in online tutorials. I would sincerely appreciate any recommendations you have.