Name: Most People Have No Idea What’s About To Happen To The Stock Market
Uploaded: 2026-01-15T18:21:41.000Z
Duration: 11 min 16 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...

2025 was a great year for the stock market.

The S&P 500 alone has grown by 18%, which is double than the historical average.

In fact, the moment Trump became the president, he crushed the entire market.

But if you purchase the S&P 500 at the bottom, you would be up today by at least 40%.

But it doesn't matter what happened last year.

What is important is what is going to happen in 2026.

Should you sell your stocks or should you hold?

So give this video a thumbs up and let's get right into it.

The US Economy is becoming a state driven economy.

The US government has been distributing stimulus checks and right now the economy is being entirely driven by the US Government.

On one side you have the free trade, which means that you simply allow the economy to do its thing.

The free trade is going to fix the economy, is going to fix the market.

On the other side you have the Keynesian school of economics which suggests that the government should intervene and fix the economic problems.

So if there are trade imbalances, the government should step in and fix that trade imbalance.

And guess what has been happening with the US Economy recently?

Donald Trump wants to fix the trade imbalance with China, India, European Union and the rest of the world by imposing tariffs and devaluing the dollar.

The US Government has also been buying massively stocks in the market.

All that demand, all that intervention by the US Government is fueling stock prices.

And there is no reason to believe that is going to stop in 2026.

The US government has also purchased a lot of stocks in companies that are extracting rare earth minerals.

Donald Trump even mentioned that he is going to boost the military's budget to $1.5 trillion.

Remember, any government spending is always inflationary, which means that asset prices have to adjust to that high inflation.

But that also means that that extra 5 to $600 billion that will be spent on the military one way or another is going to boost demand across the economy, shooting asset prices higher and higher.

So you can expect the markets to continue growing.

Secondly, there are major geopolitical changes and are creating a new world order which is forcing capital from across the globe the to come to the United States and be invested.

He first kicked China out of Panama, now he is making Venezuela a great ally of the United States.

And now the United States essentially has full access to the largest oil reserves in the world.

He's also threatening to take over Greenland, and he's very serious with that.

And now he's trying to also change the regime in Iran.

Now, Venezuela and Iran has been the biggest supplier of oil to China.

And by changing the regimes there, that is going to give a huge advantage to the United States.

The US Again will have full control over oil across the globe.

The Arctic route is becoming the most important route in the world.

And by taking over Greenland, the United States will control that route.

And that also means that the US Will no longer be relying on China for rare earth minerals, because Venezuela has by far the largest resources when it comes to rare earth minerals.

So on one side, the government is spending so much money buying stakes in companies that are extracting these rare earth minerals.

On the other side, now it has full control over Venezuela.

And that means massive government spending which is going to drive asset prices higher.

Nobody for a fact knows how the New World Order is going to look like.

And there are hundreds of trillions of dollars worth of wealth all across the globe.

None of these investors want to lose those investments.

So a lot of that money is going to come back to the United States.

Until there is going to be clarity on how the New World Order is going to look like, there are at least $261 trillion worth of wealth of a lot of that money right now is in the European Union, the uk, Asian countries.

But what if, in this New World Order, the United States is going to be the only winner?

And since the dollar is a safe haven, a lot of that money is coming back to the United States.

Either the bond market, where a lot of that money is going to go, certainly.

But you can't be making much money out of the bond market.

Last year, the average return was anything between 3.5 to 3.8%.

So a big chunk of that money is going to go to the stock market, which last year resulted in at least 18%.

That is going to lead to higher demand, which is going to lead to higher stock prices.

All the seats in the House will be contested, plus 33 seats in the Senate and and about 40 governorships.

That means that Republicans, who are right now having a very slim majority, most likely are going to lose those seats because usually the ruling party always loses the midterm elections.

So Donald Trump most likely will try his best not to shock the entire economy and create a dynamic where the economy is growing, the markets is growing so that people will have this positive vibe and they will most likely vote for the Republicans if the economy will do a terrible job.

If the markets are crushing, people most likely aren't going to vote for Donald Trump, which is why you can expect markets to continue growing.

But even if the Republicans are going to lose their Congress, that's great news for investors, because investors always like when there is a balance of power.

If Republicans are controlling the presidency and Democrats are controlling the Senate or the House, that means that there is a balance of power and there won't be any major shocks to the economy.

Another reason to be optimistic is that stock buybacks are not going to stop.

A stock buyback is when the company is earning money.

But instead of distributing that cash to investors, the company is spending that money to buy back its stocks from the stock market.

So what drives stock prices usually is supply and demand.

So if the demand stays the same while you use your money to buy back your stocks, which means that you're decreasing the supply of your stocks in the market, naturally, based on the lows of demand and supply, your stock price should rise.

And because CEOs are usually compensated based on the stock price, they have all the motivation to continue growing the stock price.

Tesla announced a trillion dollar package for Elon Musk.

If Tesla is going to cross a 10 trillion market cap, that means that Tesla is now interested to use all that cash to buy back its stocks.

In 2020, stock buybacks reached $519 billion.

Next year, that number crossed $881 billion.

By 2022, we reached a new record of a trillion dollars.

Even though that since then, stock buybacks slightly slowed down.

Last year they hit another record of $1.2 trillion.

So I don't see a single reason for stock buybacks to slow down this year.

In fact, there is a good probability that investors or companies will see a best investment to make is to buy back their own stocks because they know the real value of their stocks.

Especially take the companies that are investing heavily in AI.

If they think that by investing in AI their profit margins are going to boost dramatically over the next couple of years.

That means that their stock prices are being traded right now at a lower price than its real value, which means that buying back our own stocks is the best investment we can make as a business.

And finally, dollar will continue weakening.

One of the major agendas that Donald Trump put in front of himself is to Fix the trade balance.

And you cannot possibly do that if you have a very strong currency.

You need to devalue your currency so that your exports become cheaper, so that you fix your trade balances with other nations.

And over the last year, the dollar lost about 10% of its value against major other currencies.

If you take it specifically for example, against euro, then it's about 12%.

There is no reason to believe that Trump is going to abandon his agenda because and he won't continue weakening the dollar.

And you can weaken the dollar by massively increasing the supply of your currency.

Either you will lower down interest rates, which means that now the cost of capital went down, there is going to be more access to capital, companies, people, everybody will simply start borrowing more money, spending more money, which is going first of all to result in higher spending.

Another major way to weaken the currency is through quantitative easing.

Now, it's basically a fancy word for printing money.

In December of last year, the Federal Reserve has stopped quantitative tightening and started quantitative easing by injecting at least $40 billion into the economy.

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Most People Have No Idea What’s About To Happen To The Stock Market

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