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In this week’s news, Taylor Kenney addresses the ongoing volatility in the financial markets, highlighting the cracks in the economic foundation caused by excess leverage, debt, and manipulation. As well as, how recent layoffs in the tech industry and misleading economic reports are signs of much deeper issues.

TRANSCRIPT:

Hi everyone. Thank you for being here. After a volatile week, you might be wondering, was that the worst of it? Unfortunately, the answer is no. And I’m going to explain why we can expect to see more volatility, not less. The simple truth is that the system is broken. Excess leverage, spending, and debt have created a manufactured, propped-up financial system controlled by intense speculation.

This intense speculation is partly what led to last week’s crash. Now we know it was initiated by trillions of dollars leaving the system, thanks to an interest rate increase in Japan. But it was really spurred forward by these fears that the United States was in a recession. Hello. Because of a July jobs report showing that new job creation had come to a screeching halt and unemployment rates had risen to 4.3%.

What’s happening is that these reports and this data that we’ve been getting have been manipulated to show that we are winning, to show that the economy is strong, which is in direct contrast to the reality that most of us are living. So what’s going to happen is that as the cracks in the foundation continue to appear, these reports will take more and more doctoring, and eventually, the truth is going to seep out, which is exactly what we saw happen last week.

I mean, ask anyone out there right now who’s looking for a job how that search is going, and I think we both know what their answer will be. In fact, I saw an article this past week that really made my blood boil from Business Insider. America’s hiring boom is officially over. The job market is tumbling. How did everyone miss the warning signs?

How did everyone miss the warning signs? Are you kidding me? Give me a break. I have been saying this for months. The warning signs have been there all along, flashing red. And you know what else isn’t going to help that 4.3% unemployment? The growing number of layoffs happening, which again, the mainstream media conveniently fails to report on. And if you don’t believe me about how many layoffs are happening right now, do me a favor and just search the term layoffs.

You will see for yourself. Your entire page will be flooded with company after company who are making cuts every single day. It’s a new list of companies, and I saw an article in particular that also grabbed my interest because it pertains to what’s going on in the stock market and what is to come. Layoffs at Dell and possibly Cisco raise concerns about the job market and A.I.

Now, remember, the majority of growth in the stock market is dominated by what? By tech. So why is this so important? Why am I particularly concerned about AI and tech layoffs? Well, any time we have concentration, a greater concentration, we have a greater risk. Now, people are happy to ignore risk as long as they’re making a profit.

But the second that they’re not making a profit anymore and things go south, that’s when the blame game starts. Oh, should have known better. It was risky all along. Now, what I’m referring to again is the fact that there are only a handful of companies that are accounting for the majority of movement. We have the Magnificent Seven, which is Amazon, Meta, Nvidia.

These tech companies, these AI companies that I think last year in 2023 accounted for over half of the S&P gains. Just those seven companies. So we have a situation here where we have this small collection, this consolidated group of companies accounting for the majority of gains.

And yet in AI and in tech, we’re starting to see more layoffs, which is raising concerns of what I’ve been saying all along that these companies could be overvalued.

I mean, what do you think? Do you think these companies are overvalued? I know my answer, but it doesn’t matter. What really matters is that none of this looks like a healthy, thriving economy. For far too long, people have gotten used to calm. They have become complacent. But again, I am here to remind you that volatility can be the new normal, that we will expect because we are sitting on a razor’s edge.

This intense speculation I talked about earlier, looking at every data, every report, every tiny piece of information and one small whiff of trouble, one jobs report, one unemployment report with a slight move and suddenly, oh my gosh, panic, pandemonium.

We are living in a time that is unsustainable because we’ve had too much manipulation. Just this week, Daniela had Bubba Horowitz on ITM, and he was talking about how what we’re really witnessing is the death of capitalism.

And what he means by that is that there is too much intervention. We don’t have a free market. Every chance something is going right or wrong, there’s someone manipulating it. There’s someone pulling the strings. We have government intervention. We have the Fed manipulating rates. I mean, ultimately what happened this last week, people were screaming for an emergency rate cut.

The second there was a concern, people ran to Daddy Powell and said, what can you do for me? How are you going to get me out of this? That is the world that we live in. That is what we have become accustomed to. The foundation is crumbling, the economy is contracting, and we are in a place where we know that time is limited.

Because as the truth comes out in a situation where a whiff of bad news causes such violent swings, we again can expect to see volatility as our new norm, and what we don’t want to do is wait until we’re in a crisis, until there’s chaos to make a decision that’s based on panic versus one that’s based on sound advice.

We had Danielle DiMartino Booth also on the channel this week, and she had an amazing video. If you haven’t watched it, check it out. Talking about preparing before the Fed’s decision in September.

So I know there’s a lot of, again, speculation around whether the Fed will or won’t cut rates. Most people are assuming they will, but regardless, no one should be looking at that as some kind of lifeboat because any time there’s been some kind of change, there again, is volatility.

All we can really expect is more volatility, which is why the time to prepare is now, not later. I don’t like to be the one to talk about this, but the reason I do is because it’s so important. It’s never been more crucial to understand what’s really going on right now and what we can expect in the future.

So as always, I appreciate you all for being here. If you have any questions, if you have any thoughts on this, let me know in the comments below. I love reading everything that you say. I’m Taylor Kenney with ITM Trading, your trusted source for all things gold, silver, and lifelong wealth protection. Until next time.

SOURCES:

https://www.businessinsider.com/jobs-report-labor-market-hiring-layoffs-quits-recession-sahm-rule-2024-8

https://www.cfo.com/news/layoffs-at-dell-and-possibly-cisco-raise-concerns-about-job-market-and-ai/723839

https://markets.businessinsider.com/news/stocks/tech-stocks-magnificent-7-dot-com-1999-bubble-inflation-recession-2024-2

https://www.cnbc.com/2024/08/05/asia-markets.html

https://www.businessinsider.com/fed-rate-cuts-recession-outlook-economy-job-market-interest-rates-2024-8#:~:text=Traders%20are%20increasingly%20pinning%20their,next%20week%2C%20according%20to%20Bloomberg