The Mother Of All Bubbles Is Here

Stocks, real estate, crypto, and gold have all been breaking record highs, which should feel amazing, but investors are getting nervous. Jamie Dimon, the CEO of JPMorgan Chase Bank, recently said that asset prices are getting overvalued, and even the Federal Reserve Bank recently came out and said that the stock market is fairly highly valued. And this is building what some people call the everything bubble, because in the past, bubbles only happened in one market, like housing in 2008, but this time, it's everything. Couple that with the trillions of dollars going into artificial intelligence, which not only could be building its own bubble, but the technology is also eliminating human jobs very quickly. And this combination of high asset prices mixed in with emotional exuberance that everything keeps going up, mixed in with AI saturation and so much money flowing into AI, is what's creating what some people call the mother of all bubbles. But that's not all. Bubbles happen. They're a part of our economy. We're always in some sort of bubble, and they get inflated by the amount of dollars and the amount of debt out there. And now we're entering a time of lowering interest rates, and generally, lowering interest rates don't pop bubbles, they make bubbles even bigger. So if you've been wondering, are asset prices getting too high? I encourage you to watch this video until the end, because there's two things that I want to talk about. Number one is the bubble, because we know that nothing can go straight up forever, and we have been seeing asset prices shoot up. And then number two is the pop. Like I said just a minute ago, we are entering a period of lowering interest rates, and generally, lowering interest rates don't pop bubbles, they inflate bubbles. So what does that mean for what's coming? Let's start by taking a look at how asset prices have grown over the last six years. Starting with the stock market in 2019, the S&P 500, which is one of the most popular indexes in the stock market, was at 3,200 points. And at the end of 2025, it's trading for around 6,700 points, which is a growth of around 110%. The median house in America was selling for around $320,000 in 2019. In 2015, that same house is selling for around $410,000, which is a growth of around 28%. And keep in mind, this does not include the growth in mortgage payments and mortgage costs, because interest rates have gone up quite a bit from 2019 to 2025. In 2019, Bitcoin was trading for around $4,000 a coin. Towards the end of 2025, Bitcoin is at above $100,000 a coin, we'll just call it $100,000 a coin. That is a growth of around 2,500%. And in 2019, gold was trading for around $1,300 an ounce. In 2025, gold broke $4,000 an ounce for the first time ever, which is a growth of around 200%, which means stock prices have grown by 110%. Real estate prices are up by 28%. Crypto prices are up by 2,500%. And gold prices are up by around 200%. But do you want to know the real kicker? The median household income in the United States in 2019 was around $68,000 a year. And in 2025, it's expected to be around $83,000 a year, which is a growth of around 22%, which means asset prices have boomed, but the average person's income has not kept up. And this is where most people say that's why we have a bubble. People's incomes are not keeping up with asset prices, but that's not true. And that's not the right way to look at it. You have to go a little bit deeper because the reality is this trend of incomes not keeping up with asset prices is not a new phenomenon. It did not start in 2019. It's been going on for a very long time. This is why it is so important for you to become an investor. So let's dig a little bit deeper. But if you are an investor or want to become an investor, I want to remind you that I've put together a brand new free investing masterclass where I'll walk you through how you can get started as an investor and find hidden investment opportunities before everybody else. Plus, I will show you the exact framework that my firm and I use to research investment opportunities and find opportunities before they hit the headlines. It's a completely free masterclass. There's a ton of value in there. And when you register for it, you're also going to get access to market briefs, which is my newsletter for investors, all for free. So if you want to get the investing masterclass and market briefs all for free, I will put the link for you down in the description below. Just because something becomes more expensive does not mean it becomes overvalued. You have to really look at the value of the asset itself. One way to assess how expensive a stock is, is by looking at its profit multiple, the PE ratio, which tells you how many times profits this stock is trading for. So if you start a company and it makes a $1,000 profit after 12 months, how much is your company worth? Is it worth 10 times profit, meaning $10,000? Is it worth 20 times profit, $20,000? This can start to give you an idea of how expensive your company is, depending on what multiple investors are willing to pay, because we can just look at history to see what the average has been. In 2019, the S&P 500 was trading at a 21.5 times multiple. Today, in 2025, the S&P 500 is trading for around a 27.5 times multiple. That means on average, stocks are trading for a 25% premium than they were back in 2019, because investors are paying 25% more based off of the same profits. The average historically in the S&P 500 over the last 100 years has been around a 20 times multiple. And to really put this in perspective, back during the 2008 crash, in the year 2009, we had the highest PE ratio for the S&P 500 in recorded history, when the S&P 500 was trading for around 100 times earnings. What this tells us is, number one, stocks are trading for a premium compared to where we were pre-pandemic. Number two, this tells us but stocks have been more premiumly priced in the past as well. The financials for the housing market look a little bit different, because we have to go beyond just the price of the house. We also have to look at the monthly cost of the house, because most people are buying houses with a mortgage. In 2019, remember, the median house was selling for $320,000. In 2025, that same median is selling for $410,000. But the difference isn't just the house price. In 2019, you can get a 30 year mortgage for around 4%. In 2025, you have to pay around 6% to get a 30 year fixed rate mortgage, which means not only are you borrowing more dollars, but you're paying more interest to borrow those dollars. Let's see what that looks like. This house in 2019 will be costing you a little bit over $1,000 a month to purchase. But in 2025, that exact same house is going to cost you around $2,000 a month to purchase, because again, you're borrowing more dollars at a higher interest rate. And then you have to pay a higher property tax because you purchased a more expensive property. And you have to pay for higher property insurances because you're also insuring a more valuable property. But that's not all as well. So we know the housing prices have gone up by a little bit under 30%. Your monthly payment has gone up by around 100%. But we also have to take a look at because the average person is paying now a bigger share of their income on this house in 2025 than they were in 2019 that a lot of people overlook. Let's assume in 2019, you were making $5,000 a month after taxes. If you're paying $1,079 a month, that means that your housing cost is roughly 22% of your take home pay. If over these six years, your median income grew by around 22%, which is what we've seen in the United States, that means now your take home pay is around $6,100 a month, which means hey, you're making more money. But because housing prices are more expensive, because mortgage rates are higher, because your mortgage cost is higher, you are now going to be paying about 33% of your take home pay in your housing cost. This is the real reason why people have concerns in the housing market because people are having to squeeze more and more of the incomes just to be able to afford a house, which means people have less money to invest in stocks, people have less money to invest in crypto or gold, and people have less money to buy groceries or go on a vacation, which is making it more difficult for people to spend money in the economy, which can obviously hurt spending for many different businesses. But let's keep going. I want to talk about crypto and gold together and I want to compare it to the growth that we've seen with stocks and real estate because what we've seen is over the last six years, gold prices and crypto prices have been far outpacing stocks and real estate, which is not normal. And the reason why is because especially gold, crypto is a little bit different, but gold is considered a hedge against inflation. It's considered more of a diversification play, a protectionary play, an inflationary play. And crypto is a little bit of that as well. But people also look at crypto as a technology play and as a way to kind of move your money into a new money. So a lot of different plays here, but the idea being these assets are not really producing value that you can use. When you buy gold, it sits there and looks back at you. It doesn't do you anything. It doesn't feed anybody. It doesn't provide housing to anybody. When you buy crypto, yeah, you're investing in a technology, but that technology isn't feeding you. It's not housing you. It's not producing a value. When you invest in a stock, in the stock market, like let's say Amazon or Nvidia, they're working to produce a product that's working to produce a profit, that's working to employ people, that's working to serve people. This is a form of money. These are assets. And when you see this money growing at a rate far past these asset prices, that means investors are concerned about something. And generally, that thing is the debasement of currency, which means the value of our dollars dropping. And we've been seeing a reason for that because ever since the pandemic, we have seen a lot of spending specifically by the United States government. I know it's been happening all around the world, but I'm going to focus on the United States. The United States government has been spending a lot of money that they don't have. And when you are spending money you don't have, you have to create that money from somewhere. They can borrow it from regular people like you and me. They can borrow it from foreign institutions like Japan and the United Kingdom and China. But there's not enough money being lent to the United States to fund all of that spending. And that's where the United States government then has to work with our central bank, the Federal Reserve Bank, to print this money, who then lends that money to the United States government, which means this money is being created out of thin air, which is lowering the value of the dollar. And so when you see the prices of these types of assets going up so much faster than these assets, that also creates concerns. If people are dumping more money into gold than they enter stocks, that means they're concerned about the value of the dollar dropping. Now, if that concern about the dollar goes away, if the concerns about the economy go away, then what we've seen happen in the past is that gold prices then fall and stock prices go up. We saw this happen to the 2008 crash. When the 2008 market crashed, people were freaking out and prices of gold were skyrocketing while the stock market was crashing because people were worried about the dollar. There was so much money printing happening with quantitative easing that people thought we were going to see hyperinflation. And so the gold value was going up, stock prices were going down, but then things flipped in 2012. In 2012, the economy had kind of recovered. It became clear that the dollar was not going to go into hyperinflation. And that was when gold prices began to crash in 2012. And gold prices continue to stay low until 2020. And 2020 was when, of course, the pandemic hit and the money printer was turned on again. And so we're starting to see that happen again. If the concerns about the dollar go down, if concerns about the inflation go down, well, then there's a chance that we could start to see a repeat of what happened then. But that's not happening just yet, because we are still creating money. We are still lowering interest rates to stimulate and inflate. So now that you understand the concerns about overvaluation with stocks, housing, crypto, and gold, let's flip the video a little bit and talk about, well, what causes the pop? The price of any asset is worth what somebody else is willing to pay for it. If we go back to 2020, the reason why stocks were crashing was because everybody was selling and not that many people were buying. And so as people were panic selling, they were selling their stocks for whatever price that they could get. During the 2008 crash, when people were being foreclosed on their houses, there was such a large supply of houses for sale because banks were foreclosing. They just needed to sell these houses and get them off their books as fast as possible. And not many people were buying. That caused housing prices to crash. And so when you look at the price of an asset, it's ultimately worth what somebody else is willing to pay for. And when somebody feels like an asset is too expensive, it's too rich, that's when people stop paying for it. And that's what generally causes values to go down. And we are starting to see shifts happen in the economy right now. We are seeing the job market slow down. And we've also gotten data saying that the job market earlier in 2025 was actually slower than we originally expected it to be. Part of the reason for this is concerns about a slower economy. And we've seen how people have to spend more money on things like their housing so they have less money to spend other places. But the other concern also has to do with changes in technology and artificial intelligence, which is changing the job market. It makes it so a lot of companies don't need to hire as many people. And entry-level jobs are harder to come by because, well, you don't need an entry-level analyst if AI could do it for you. And companies have also been laying people off because of AI. And this is where all roads lead back to the Federal Reserve Bank. This is a very important concept for you to understand because the Federal Reserve Bank is the central bank here in the United States. And although they're called the Federal Reserve Bank, they're actually not federal. It says so on their website. They're not a reserve because they're not sitting on any cash reserves. And they're not a bank because, well, you and I can't go there to deposit money. But they have the ability to help influence our economy by changing interest rates and printing money. That's the power that they have. So their job is to help monitor a money supply and to help monitor our economy. More specifically, they have two jobs. Number one is to manage inflation. And number two is to manage the job market. And so right now, what the Federal Reserve Bank is seeing is that the job market is slowing down. And generally, when you see a slowdown in the job market, the way that the Federal Reserve Bank wants to stimulate the economy is by either printing money or by cutting interest rates. Now, we know that printing money and stimulating can cause more inflation. We've been seeing that happen. And right now, we're entering a time where the Federal Reserve Bank is beginning to cut interest rates. Now, what do lower interest rates do? Lower interest rates make it cheaper for people and businesses to borrow money. So if, hypothetically, mortgage rates were to get cut in half tomorrow, there were a 4% mortgage tomorrow, more people would want to buy houses. More people would want to refinance out of their houses, do a cash out refinance. And that would create more spending. As people buy more houses, realtors make more money. Mortgage bankers make more money. Title agencies make more money. Banks make more money, which means now those realtors and bankers are going to be spending more money as well in other places. And so you can start to see how these lower interest rates can start to stimulate the economy in that way. But there's also a risk with those lower interest rates. And the risk is, of course, inflation. Because if you were to cut mortgage rates to 4% and more people start buying houses, well, that could make housing prices go up even more. And if housing prices go up even more, well, that could then make the inflation problem worse like we've been seeing happen because, well, housing is a big cost for many Americans and it's already expensive. And the reason why I'm hammering this point home is because there's one big difference that we're seeing today in 2025 entering 2026 that we have seen before the 2008 crash and the 2000 dotcom bubble bursting, which is before those two previous crashes, 2000 and 2008, there was concerns about inflation. There was concerns about asset prices getting a little overvalued. So what the Federal Reserve Bank did then was raise interest rates to cool down the economy, which popped the bubble. For example, leading up to the 2008 crash, the Federal Reserve Bank raised interest rates 17 times as a way to cool down the economy. Those raising of interest rates 17 times made mortgages more expensive, it made the adjustable rates more expensive, and that's what caused the housing market bubble to ultimately pop. That was the needle. It wasn't the cause of the bubble, but it was the needle that ultimately popped the bubble. We saw the same thing happen before the 2000 dotcom bubble bursting. We had internet companies at crazy high valuations, everyone was dumping their money into internet companies. And that was when the Fed started to get worried about asset prices and inflation. So the Federal Reserve Bank raised interest rates 10 times leading up to the 2000 dotcom bubble bursting, which ultimately was the needle, not the bubble, but the needle that bursted the bubble. Then after the bubble burst in 2000 and 2008, after all the hot air went out, that was when the Federal Reserve Bank began cutting interest rates to then stimulate the economy. And while it hurts to go through those recessions, those recessions were good in the sense that they got rid of a lot of the crappy companies. Like in the dotcom bubble, there was a lot of companies that were worth millions of dollars, sometimes hundreds of millions of dollars that had essentially no value proposition, no real path to profitability. And then those companies went bankrupt. During the 2008 crash, there was a lot of bad debt out there, a lot of people buying houses that shouldn't. And so when the hot air went out, it allowed the economy to then restart and kind of refresh. It was painful, but that's what happens when you allow all that hot air, all that debt to go in, especially when it's at valuations that don't really make sense. Now we're entering a time in 2025 where we are starting to see high valuations in pretty much every asset class already. And we are now entering a time of cutting interest rates as a way to stimulate the job market. And that now generally does not pop bubbles. That generally makes bubbles bigger. Now, of course, nobody can predict what's going to happen tomorrow, next year, or five years from now. Not an economist, not the Federal Reserve Bank, not a random guy on YouTube, but you want to pay attention to all these things and understand what causes valuations to go up and down. Because yes, lowering interest rates generally causes valuations to go up even more. But the X factor here that you really want to pay attention to is also artificial intelligence, because AI is going to reshift the economy. Yes, people have concerns about AI being a bubble in and of itself, but it's not only going to shift technology, it's also going to change the job market. And so if AI hurts the job market significantly to the point where now more people don't have the ability to continue supporting the economy, that's where these interest rates might not be able to combat those job losses from AI as quickly. Now, there are a lot of talks of that AI is going to create more jobs that it hurts because there's going to be a big shifting in the job market. But we don't know how long that shift is going to take as well. That's where there's a lot of factors you want to pay attention to. Pay attention to the bubble, which is the asset prices. Look at how expensive stocks are getting, how expensive real estate is getting, how expensive crypto and gold is getting, and understand what all these things mean. I'm not saying don't invest your money, I'm saying make sure you invest your money strategically and know what your strategy is, because there's ways to invest money when markets are going up and when markets are going down. And you want to know how to do that. Again, in my investing masterclass, I'll walk you through how you can start to build a framework as an investor. But then you also want to pay attention to, well, when is it that markets are getting a little bit too overvalued? And when is it do you want to make sure that you have some money on the sidelines that we can take advantage of opportunities if and when a bubble pops? And I say if and when because we know that recessions happen. I mean, they've happened every decade for the last century. We've seen 16 recessions over the last 100 years, 25 market crashes over the last 100 years. They happen. They're part of our economy. Most people freak out by the idea of it. But when you prepare for it, it actually creates opportunities because, well, market crashes and recessions create more millionaires than any other time because they allow smart investors to make good investments at a discounted price. And so when you have all these factors happening from the Federal Reserve Bank to ask prices to changes in technology, this then creates opportunity for the financially savvy, which is why I want you to pay attention to what's happening. And that's where we don't know what's going to happen next, but pay attention to the bubble and pay attention to things that can cause the pop because there's a lot of emotion out there and there's also a lot of debt out there. And when you understand those two things, well, that can create booms and busts. If you enjoyed this video, again, the best thank you as a referral. So if you could, please share this video with a friend, family member, colleague, or fellow investor. That way we can continue to spread this financial education. Thank you. Russia accused the United States of trying to devalue its $37 trillion of national debt without informing the American people. How? By using stable coins, crypto, and gold. So if you hold dollars or stable coins or have a retirement fund, you want to pay attention. Why does Russia care that the United States government has $37 trillion worth of national debt?