Name: Easy Money Coming SOON… Do Not Make These 5 Mistakes
Uploaded: 2025-07-25T18:51:18.000Z
Duration: 11 min 7 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Donald Trump has reshaped the entire structure of the global economy by moving the focus of the United States from free trade into isolation policies.

Adverbs of degree

This is something that the US did not experience in almost around a hundred years.

Basic passive voice

In fact, Donald Trump was inspired by William McKinley.

William McKinley built his entire political brand on raising the tariffs to protect American jobs, wages, and industries, so that foreigners cannot come to the United States and take out the industries from US manufacturers, so that we can bring the jobs, raise the wages, and make America great again.

I mean, no offense, Donald Trump has himself multiple times mentioned that his favorite word on the vocabulary is tariffs, and he was inspired by William McKinley, and he does not understand why other presidents did not follow this strategy.

Trump's tariffs shook the entire global economy, because the entire focus of the United States since 1940s was that we have to reduce the tariffs as much as we can, and we also have to convince other countries so that they could also reduce their tariffs and free trade will dominate the entire world.

There were times where tariffs were the main source of government's revenue back in the And if you think that we can get rid of the income tax and replace it with tariffs, then you are delusional.

America imports around 3.2 trillion dollars worth of goods alone, if we impose on average around 20% tariffs on them, then the government can earn around 650 billion dollars.

That sounds like a huge number in the beginning, but it will quickly shrink over time and dry up the government's budget.

Because as exporting to the United States will become less profitable because there is a 20% tariff, that 3.2 trillion dollars will quickly go to 2 trillion dollars, 1.5 trillion dollars, eventually 1 trillion dollars, and so on and so forth.

So the government's revenue is going to dry up.

On the other side, when you have 160 million taxpayers who consistently pay income tax and payroll tax, that's much more sustainable for the US budget.

On top of that, there is nothing that can be fully produced domestically in the United States.

Screens are often produced in South Korea, rare earth minerals are being imported from China, and a lot of chips are being manufactured in Taiwan.

So good luck producing anything fully domestically in the United States.

And that's why the entire market crashed so much.

But the real question is that, why is the market growing again?

China has confirmed Trump's announcement that they have came with a trade agreement with China.

Even though that we still don't know the details of this agreement, at least as of the time of this recording, by looking at the history of Trump's deals, we can assume that it's not going to be very different.

You see, this is not the first trade war that Donald Trump has started against China.

The first one was back in 2017 or 2018, and it lasted for much longer.

The accusations against China were pretty similar, that China does not buy enough from the United States, and they are not protecting US intellectual property.

China agreed to buy 200 billion dollars more of US goods in over 2 years, and also strengthen intellectual property to protect American companies and their rights in China, and allow American companies to deeply integrate into China, especially the financial services.

The problem with the first trade agreement was that, it was not like a formal agreement, it was simply commitment from China.

Nothing exactly was signed, so China wasn't obligated to do that, unless they would actually simply honor their word.

Secondly, China was already the largest trading partner of the United States, and as Chinese economy began to grow, they kept buying more from the United States.

At the end of the day, they did not fill this commitment, and secondly, yes, they actually bought slightly more from the United States.

But that was already the trend of China buying from the United States, that every single year they would slightly buy a bit more from the US than they did from previous years.

So even if Trump did not start this trade war against China, even if he did not impose those high tariffs, China would have done that anyways.

Secondly, many analysts believe that the Fed is about to cut the interest rates, even though that it seems not like that entirely.

You see, the Fed has a very long history of sending mixed signals to the market, because the Fed understands its power, it knows that the market is going to react accordingly, so it wants to send those mixed signals.

On one side, people think that the Fed will cut the rates, on the other side, people are not, do not understand what the Fed is planning to do.

And that confusion in the market leads to unexpected decisions by the Fed.

Back in 2020, when everybody thought that inflation got out of hand, the Fed did not hike the interest rates.

And throughout the entire 2021, as everybody was thinking that inflation is getting out of hand, when the Fed will hike the rates, it only happened in the first half of 2022.

The same thing happened back in 2024, nobody thought that in 2024 that the Fed will lower interest rates.

And then suddenly, at the end of 2024, on 18th of December, the Fed lowered the rates by 25 basis.

And right now, as if everybody expects that the Fed will keep the rates high in order to tackle inflation and wait for more clarity from the White House policies, maybe suddenly, it might be in July, it might be in September or October.

And because we know the history of the Fed, the market overall has this positive reaction that cut rates are coming for a fact and that will create a lot of easy money for the market, which has the potential to boost the stock market, and investors are simply preparing themselves to capitalize on this opportunity.

But here is the biggest mistake that most people usually make.

When prices begin to rise, that will attract a lot of people, because it creates this kind of an environment that people start believing that the market will continue to grow.

It's very difficult to sit and watch how everybody is making money while you are not in the market, so you jump in and you want to start investing as well.

Now, media coverage does its role as well, because it creates this sentiment in the market that everything will continue to grow, and as more people begin to buy more stocks in the stock market, it will create this self-fulfilling prophecy of keeping the markets to grow.

But there are professional investors in the market, they know how things work.

The moment it hits the top, it is going to crash, because those investors who know how and it's time to sell their stocks, and the market crashes.

Now, the exact opposite effect will happen here again.

People will start cutting their losses, they will instantly sell their stocks.

That will be followed by the negative media coverage that will keep threatening people that the stock market could crash further.

And to minimize your losses and be on the safe side, you start selling your stocks.

Selling stocks will create the self-fulfilling prophecy of crashing the market further.

The best example I can give you is bitcoin.

Every time everyone is excited about bitcoin, the bitcoin price starts growing dramatically, and then when it grows by 300%, 500%, then the people who bought bitcoin initially, or the people who know how the market works, they start massively selling.

Then everybody else who is not very good at the stock market or at investing in anything, they will start selling as well and the market crashes.

I am not saying that you should avoid the stock market and you should not start investing now, but these are some of the best lessons that I have learned over the 10 years that I have been in the stock market and carefully watching some of the best investors out there.

Number one, fortunes are made when the market crashes.

Fortunes are never made when the stock market is growing.

Yes, when the market is growing and you hear the news that some people made a fortune.

But they made it because they took action when the market crashed, not when the market is growing.

The market is growing is simply a result of what they did when the market is crushed.

Yes, you can still invest and you can still make some money if you are smart about it, but you are not going to make a fortune out of it.

Secondly, prepare yourself for the next opportunity.

And if you look at the history of the market, it consistently fluctuates.

There are huge market crashes and then there are like small market crashes.

Over time, over a long period of time, the trajectory is very clear that the market keeps growing.

So the best time to start buying is when the market crashes and not right now when the market is growing.

But here is one thing that you have to keep in mind.

And this is the third thing that you have to keep in mind.

If you are dollar cost averaging, then stick to your own strategy.

Dollar cost averaging is consistently buying the exact same stocks that you plan to do over a long period of time.

Let's say every single month you drop a thousand dollars or 500 bucks on the S&P 500.

Yes, you're not going to buy the stock when it's at its lowest point every single time.

And you're not going to buy the stocks or you will buy the stocks sometimes when it's at its peak.

And historically, we know that you can make anything between 8 to 10% anyways.

And timing the market is impossible anyways.

However, it doesn't mean that you should not buy stocks when the market crashed and the market is presenting you really great stocks at a huge discount.

So as we're entering this period where the market keeps growing due to the reasons that I have explained in this video, I want you to be very careful.

And if you haven't made your first hundred thousand dollars in the stock market yet, then make sure to check the first link in the description of this video.

That's it for today, thanks guys for watching and I will see you in the next one.