“Stocks HAMMERED…Is This a Trump Plan?” (Uncut) 03-11-2025

“Stocks HAMMERED…Is This a Trump Plan?” What About Gold?

Look out below! The stock market is falling and there’s no bottom in sight. All three major indices are breaking records to the downside and it is an absolute bloodbath. In this video I am going to tell you just how bad it is, why it might be happening, and what you can do to protect yourself from the carnage.

So let’s get started. A headline from yesterday, stocks get clobbered as NASDAQ plunges 4%. The NASDAQ fell 4% in its worst day since 2022, while the benchmark S&P fell almost 3%.

The MAG-7 are down over $800 billion in market cap today. This was yesterday during trading. Can we make it a cool trillion dollars? A trillion dollars! So I’m not sure if the MAG-7 actually ended up off a full trillion dollars, but it was pretty bad either way.

Another headline, the Trump-based euphoria has evaporated from the stock market. So why is all this happening? Just how bad is it? Well, if you remember back on election day, the stock market actually had the best single day following an election that it ever had. Look at this, the post-election day for history books, the S&P 500 posts its best post-election session ever.

Look at this, it was up over 2%, it’s never been that good ever. Of course, plenty of down days following an election, but the markets were really excited about Trump initially. However, if we look at what has happened, all those gains have been erased.

So if we look at the S&P 500, go back to election day, closed around $57.82. You can see now we are significantly below that. So in the four months since the election, stocks are down. Why such a dramatic turnaround? Everyone was excited about Trump, stocks boomed, now they’re tanking.

It’s not just the S&P, we can take a look at the NASDAQ, it’s the same story. We go to election day, we were around $18,439, now we’re down in the 17s. Significant, significant decline.

Same with the Dow, again, we go to election day, $42,221, we’re down in the 41s, got a 41 handle there. It’s not looking good, but there is one asset that is up. I think you know what that is, gold.

Gold is up since election day, it was $27.40, now we’re up at $28.93. So a significant gain, about 5.5% in four months. So gold is on pace to do about 17% in a year, whereas all the major stock indices are on pace to do zero or negative. So not looking good.

The difference is night and day. And also what happened in the markets yesterday? A critical break. The NASDAQ is already well below its 200-day moving average.

This is a huge, huge shift. The tech and consumer discretionary sectors appear to be driving the decline, but I expect the other parts of the market to follow suit. Just look how bad this chart is.

This is the S&P 500. You can see that it has been above its 200-day moving average pretty comfortably, boom, until yesterday, we’re below it. We’re breaking through.

This is not a good sign for a long-term shift in the stock market. And yes, after the markets closed yesterday, we got this headline, stocks tumble the most this year with recession warnings blaring. The S&P 500 officially snaps its 200-day moving average streak that started in 2023.

It went 336 trading sessions above its support line until yesterday. So look at this, a pretty nice increase, one of the largest on record, and now we’re back to zero, right? This is like, we’ve gone this many days without a workplace accident. Well, erase the board, start over at zero.

We just had a major accident. Things are not looking good. So why is this happening? We have recession warnings blaring.

Well, there are a lot of rumors floating around that Trump might be trying to push the US into a recession. This sounds weird, but there’s some logic to it if you see things through his eyes. So on zero hedge, one month ago, when we first realized just how much fat Elon Musk’s doge was slashing from the government money laundering apparatus, we made a controversial observation.

So much deep state laundered money was about to come out of the economy, the US would enter a recession, first in Washington, DC, and then across the US. So a tweet here, here’s the bigger play at hand, and here’s why there is only token pushback to doge. If you cut enough spending, right, even if it’s all grift and fraud, doesn’t really matter what it is, you eventually get a recession guaranteed.

That’s just how it happens. So effectively, this is the economy healing, it has to go through a period of pain in order to build back better, as they say. So this is a chart from that same article.

This is really when it got out of control. We look at debt and we look at GDP, what happened? Well, GDP is the green line, which was rising faster than debt. And then it all changed in the COVID era.

And the red line surpassed the green line, debt got out of control. And the previous administration probably should have addressed this. I mean, this is absolutely an emergency level of a nightmare.

And they didn’t. So I think Trump and his team are recognizing that this is absolutely unsustainable, they have to address it. And the sooner they do it, the more likely they can blame it on the previous administration.

You know, that’s politics for you. So the Treasury Secretary Scott Besant said, look, there is going to be a natural adjustment as we move away from public spending to private spending. The market and the economy have become hooked, become addicted to excessive government spending, and there’s going to be a detox period.

So he’s sort of priming the markets to expect a recession, some kind of correction in the stock market, possibly a bear market, obviously. And I think Trump and his team want to blame it on the Biden administration, whether it’s justified or not. I think it goes back way before that.

And interestingly, at this time, stock market sentiment is at crisis levels of negativity, negativity. So you can see here, this erratic blue line is market sentiment in the stock market. And when it’s down, sentiment on stocks is really low.

And historically, that happens after the S&P has already had a period of bearish activity, declining prices, and then market sentiment bottoms and the index bottoms, it turns around into a bull market. And that’s normally what happens. So after a little bear market, sentiment is low, and the index turns around.

And that happened again, a third time over here after a bear market, sentiment bottomed, and the index turned around. However, right now, we’re getting crisis levels of negative sentiment towards stocks. But we haven’t just endured a bear market in stocks.

So we may have just lost a, quote, bottoming signal. That’s what’s going on here. It seems like there’s a state change in the system, right? This is like boiling liquid water, it turns into gas.

Your model for how that liquid used to behave has to be thrown out of the window. And now you have to use a model for how gases behave. Things are completely different now.

Things are boiling. What else do we have here? We have S&P 500 forward PE ratios and subsequent 10-year returns. Okay.

What we’re looking at here is the forward PE ratios across the bottom here. And the expected returns you would get over the next 10 years based on those PE ratios. That’s the vertical axis.

Where we are now is up near 23. So that’s this gray bar here. So what would we expect the S&P to return over the next 10 years based on this forward PE ratio that we have now? Something in this cluster right here.

And you can see that this cluster of points is right around zero. Zero. So based on the current PE ratios, we would expect the S&P to return about zero per year for the next 10 years.

Is that something you want? Do you want to return zero per year for the next 10 years? I don’t think so. And that is why people are rotating out of stocks into a safe haven like gold. We have seen this before.

The Dow gold ratio. The Dow, of course, being a proxy for stocks. If we did the S&P gold ratio, it would look very similar.

We just have a longer history here. And as you can see, the Dow outperforms when this line goes up and then gold outperforms when the line comes down. And this repeats.

The asset classes take turns over decades. The Dow outperforms and then it’s gold and then it’s the Dow and then it’s gold again and then it’s Dow and now it’s gold again. And actually, this chart should be updated.

This line should be should be down here below this line, down around 14 and a half, well below the 15 line. So it seems like stocks have had their day in the sun. The market is tanking.

Gold is booming. Capital is rotating out of stocks into gold. The longer you wait, the worse it’s going to be for you.

I want to end here in the spirit of daylight savings time, which we had over the weekend from rep Thomas Massey. Don’t forget to set your debt clocks ahead $200 million. That’s how much we go into debt each hour.

Ouch. Thank you guys for watching. See you in the next video.