🥛 Uh oh, I went ‘full prepper’ 🥴

GM. That is Milk Street, the crypto publication that teaches you tips on how to surf earlier than the financial waves hit.

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Prices as of 2:00 p.m. ET. Trade today with Milk Road Swap.

**PREPARING FOR THE FUTURE ECONOMIC SH*T SHOW** 🫣

So, I had a little bit of a ‘come to Jesus’ second at the moment…

And it was all because of 4 converging components that hit over the past 24hrs:

The S&P 500 hit new all-time highs.
Client sentiment reached 10yr lows.
Raoul Pal laid out his ‘Financial Singularity’ thesis on our pod.
Amazon simply laid off 16,000 company workers as a consequence of “rising competitors over AI”.

Right here’s the way it went down, and the ‘fire-under-my-a**’ realization that it triggered:

1. The S&P 500 hit new all-time highs

Constructive earnings from ~80% of the businesses that reported This autumn earnings yesterday, resulted on this:

Source: TradingView

Which, on the floor, doesn’t really feel all that loopy – new S&P highs appear to be hitting each different week within the present local weather.

However the disconnect hit when I discovered this. 👇

2. Client sentiment simply reached 10yr lows

That is a decade-low (decrease than COVID!) in how common folks really feel in regards to the financial system, whereas asset costs are printing recent data.

For years, markets and shopper sentiment moved roughly collectively.

When folks felt good, they spent and invested → once they felt unhealthy, markets mirrored that nervousness.

That’s now not the case.

The common shopper is getting squeezed by persistent inflation and excessive charges, all whereas they watch asset markets rip from the sidelines!

This creates a two-tier financial system the place asset house owners win and everybody else falls behind.

Source: Conference Board

And the subsequent two occasions solely pushed the snowball additional down the hill. 👇

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**PREPARING FOR THE FUTURE ECONOMIC SH*T SHOW (P2)** 🫣

The ultimate two nails within the ‘oh sh*t, I want to organize’ coffin regarded one thing like this…

3. Raoul Pal laid out his ‘Financial Singularity’ thesis on our pod

ICYM yesterday’s edition, right here’s a quick recap on the thesis:

Raoul believes all of us have till roughly 2030-2032 to construct life-changing wealth.

After that, we hit the ‘Financial Singularity’ – aka: a degree at which AI turns into the ‘apex species’ of the financial world…

Robots are in all places, brokers are constructing merchandise for different brokers, and the normal approach of earning money (e.g. promoting your time or labor) might effectively break.

You may take heed to the complete episode right here if you wish to dive deeper. 👇

Source: Milk Road

4. Amazon simply laid off 16,000 company workers as a consequence of “rising competitors over AI”

Wait, what!? Even the corpos aren’t secure??

This actually drove the purpose house: whether or not it is ‘competitors in AI’ or AI itself taking jobs – these sorts of layoffs are going to proceed to occur throughout the board.

The bizarre half is: as an alternative of wounding asset costs, it can assist them.

As a result of firms will be capable of decrease headcount (prices) whereas rising effectivity (income).

Source: @MilkRoad

And it’s all of this that led to my ‘come to Jesus’ realization:

Asset possession is now not a ‘good to have’.

Anybody that wishes to guard towards the mixture of financial debasement, rising price of dwelling, and AI job alternative that can all assist outline the ‘Financial Singularity’ must:

Develop their earnings by any means attainable.
Protect that wealth by holding sturdy property.

And I know, I know – I sound like an alarmist prepper proper now (that’s not misplaced on me).

However right here’s how I have a look at it:

Both approach, this path results in a win.

If the ‘Financial Singularity’ is all simply scorching air and I spend the subsequent 4-6 years rising my asset holdings – I find yourself with a pleasant little nest egg.

If the worst occurs and the singularity hits – I’m protected.

Ideas?

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