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Nov. 4, 2023 - Stew Peters Show
33:50
Scriptures And Wallstreet: Prepare for 2024
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Thank you.
Thank you.
Currently, as I record this video, the average 30-year mortgage rate in America stands at 7.5%.
This rate marks the highest point since December 2000, which was approximately 23 years ago.
Now what makes this situation particularly striking is that individuals venturing into the housing market today have likely never experienced or even been aware of interest rates at this magnitude and it's entirely plausible that their parents never did either.
We are witnessing a generational high in mortgage rates which has had an obvious and profound impact on the real estate market.
Now to add fuel to this massive fire, the situation has gotten exponentially worse when we factor in the recent trajectory of housing prices over the past three years.
This deadly combination of rising interest rates and escalating prices has created a ticking time bomb, one that is just minutes away from a flash that engulfs the entire house of cards.
With rates appearing to edge towards 8%, many are starting to wonder if this could be the knockout blow that people have been anticipating, the catalyst that finally burst the massive global housing bubble.
With reports of slowdowns in various hotspots throughout the United States, the fear is growing by the minute and now we look at the newest data to find out if these rumors are true.
Is the ground finally starting to shake and is the mega bubble finally popping?
On January 7th, 2021, the average 30-year mortgage in the United States was 2.65%.
This was the lowest reading in recent history, stretching back to 1971.
But with a little bit of digging, I found out that although the data may be murky in the years prior to 1971, this is very likely the lowest reading in American history.
From this point, rates would begin to do something nobody could ever imagine.
Month by month, they accelerated, pushing up at a pace that has never been seen before, nearly tripling in less than three years.
Now, at the same exact time this was happening, the average American home also began a rapid acceleration to the upside in price.
In that same exact time frame, the Case-Shiller, the index for tracking typical home prices in the US, jumped up 32%.
What this resulted in was simple, arguably the most expensive market in history.
According to the latest Redfin report, which doesn't even take into account this week's bump in rates, the typical American mortgage is now $2,600 a month.
Just to give you some perspective on this number, it wasn't long ago that it was $1,300.
This means in the same timeframe we talked about earlier, mortgage payments have nearly doubled.
Just from the perspective of affordability, there is simply no way new buyers can continually prop up this bizarre market long term.
To shed some light on just how bad things have gotten, look no further than the number one personal finance guru in the world, Dave Ramsey.
Ramsey's home affordability rule is conserved by many to be the golden standard for calculating how much house you should really buy.
And what it calls for is a 20% down payment on a 15-year mortgage, followed by spending no more than 25% of your take-home pay for the mortgage, taxes, insurance, etc.
included.
Now, applying this rule in the current real world would mean that to afford a $300,000 house, one would have to make around $182,000 as a household.
That means to afford a typical average home in the standard average American city, a household needs to make more money than 90% of families in the U.S. In summary, one needs to be very well off in order to afford a modest house in this country under these wild conditions, and given how much housing drives this economy, that simply isn't enough of a share to keep this home market afloat.
For 30 plus years, we had an unprecedented era where rates were continually being pushed down.
Take a look at any chart of the 30-year mortgage for the last 50 years, and you'll see quickly that this is a story of the real estate century.
Rates have been falling for an entire generation, and because of this, prices naturally moved up.
As Warren Buffet once put it, interest is like gravity in the finance world.
The higher it is, the less likely the price of everything will move up.
For 30 years now, we've had very low gravity on homes, which caused prices to float higher and higher.
This chart explained everything.
It wasn't surprising for economists to see this type of behavior because it was naturally explained by this.
But now, with this sharp increase, this no longer makes sense and it's only a matter of time before market forces naturally take corrective action. this no longer makes sense and it's only a matter It's an interesting one.
We are living in some interesting times.
From anything from bank failures, to market manipulations, to bear market rallies, high interest rates.
People can't afford food.
People can't afford just to live.
So what gives?
I mean, something is going to have to give.
And more importantly, the debt that we have as a country is not getting any better.
I wanted to talk about how high interest rates can mess up some things for you, but also benefit you.
I want to make sure that you're armored with solutions.
Everything on this podcast is...
For educational purposes only and should not be construed as investment advice.
If you would like advice on your portfolio, give us a call.
813-448-3446 Or you can head to CortezWM.com and book an appointment online and just get a second opinion on what's going on.
But what I will say is...
We cater everything towards values.
So what are you not willing to invest in for a profit?
What do you want to stay away from?
We'll customize a portfolio around you on the safe money side, on the tactical money management side.
So that way this portfolio is honoring you, your family, your convictions, and obviously the cross.
Value-based investing is going to be huge.
Even woke people are waking up to this because they too don't want to support anything that goes against their values.
And so it's going to be a big thing.
People are going to start asking questions.
And I'm happy I'm in the forefront of it all.
But look, high interest rates.
Terrible for credit card owners.
We understand this.
As a matter of fact, as you guys know, more than ever, our country has accumulated more credit card debt in the history of the United States of America than we ever have.
And that is due to the part of the high inflation, right?
Our wages are not keeping up with inflation needs.
And so people are doing max 401k withdrawals.
So they're losing 10% if they're under 59 and a half.
Then they're paying federal taxes.
Then they're paying state taxes.
And then they have market risk.
And so depending on when you bought it and sold it, you could have all four of those things negated out of your account.
So credit card issues, all-time high.
Mortgages, big, big issue right now.
People are not wanting to get a mortgage.
Banks are getting tighter.
Home values are set to decline.
Even Wells Fargo is saying that we're going to have a 1980 housing crisis.
Wells Fargo is saying that right now.
It's scary what's out there.
Just the same thing I've been warning you guys about is those commercial real estate loans expiring by the end of this year, $400 billion.
That's just commercial real estate loans.
There's a lot of other things that are coming down the pipe.
Businesses, so debt services is terrible for high interest rates.
So imagine if you owned a business and you had a credit line and you were on a budget for that credit line.
All of a sudden, half of that credit line has been margined off and you can't do payroll.
You can't even pay your loans.
You can't even pay your necessities to run your business, to have the equipment to do that particular job.
So a lot of the debt services right now are being very tight.
They're not loose on the monies.
All that to reduce consumer spending.
And when we have a reduction of consumer spending, typically our GDP goes down.
And so I don't want you guys to get all faked out.
Oh yeah, the GDP 4.9 last quarter.
Or annualized.
That was actually reported by the Fed.
But, hello, we have so much debt right now.
We have foreclosures starting to go up.
Home values are dropping.
Banks are failing.
$400 billion in unpaid commercial real estate that needs to be matured.
Guys, we have some serious issues.
And so, all I can say is that more market manipulation is coming.
More market manipulation is coming.
Check this out.
You guys know the market is...
I mean, there's a lot of evidence that it will go down.
Technical aspect of it.
Check out what Yahoo News is saying about crude oil that is going to go up.
But based on my sources and some traders that can see things before it even happens...
Check out this harmonic pattern and it literally shows us that oil is going down.
Possibly to a new level.
Let me look at it real quick.
Possibly at $82.21 to $81.27.
So $82 on crude oil.
We're going to have a correction here.
Also, the media is saying that crude oil is going to skyrocket.
They're all in bed with each other, man.
The media, the government, the investment banks, the traders.
It is all rigged.
It is all rigged.
But yet...
We come victim of it because the stock market's going down.
Well, you shouldn't be in a stock market.
You shouldn't have all your eggs and 401ks and mutual funds because markets go down.
And we're part of that cycle.
We've been in a bull run for the past 13, 14, 15 years.
It is going to go down.
It is time to protect yourself, guys.
So be very careful out there.
We want to give you solutions.
I'm protecting your principal.
And we have the color of money process.
We have the covenant process.
For those of you that have IRAs, too much money in IRAs, and you're also subject to stocks and the vulnerability of losing money in your IRAs and 401Ks, A, you need to control it, obviously with the standard deviations, but more importantly, we should take a portion of that and convert it into a tax-free bucket using our Never Tax Me strategy, the American First retirement plan.
If you're interested in converting those IRAs because of the problem, The problem is, the reason why I want to do this podcast is because we have high interest rates, consumer spending, market manipulation, banks are going belly up, and then the icing on a cake, you call it?
Check out this website on basically usdebt.org.
And if we scroll over here, this is the debt clock.
We have $211 trillion in unfunded liabilities.
And 95% of unfunded liabilities goes on the backs of Medicare and Social Security.
They're the ones responsible for unfunded liabilities.
How on earth are we going to fund $211 trillion?
Guys, what I'm getting at is, yes, the national deficit is at $33 trillion, but that's not what we're...
We're pretty much bankrupt as a country when you consider the unfunded liabilities.
So when you have this pressure of the banks, high interest rates, market manipulations, bear market rallies, This is a lot of strain, guys.
Add illegal immigration, fentanyl crisis, and pension crisis.
It's time to get real, y'all.
It's time to get real.
We have to start protecting your principal.
I'm not liking a lot of clients just sitting around being in the market.
So if that's you, and what if you have a 401k?
And maybe you can't get out of a 401k.
I understand that.
401khelpusa.com.
We can help you fill out your information.
We can give you advice on your 401k.
Obviously for a small percentage.
And then we give you quarterly updates.
And you don't have to use a rollover option.
You can stay where you're at.
You don't have to change your job.
We just want to give you advice on your 401k.
That way you can make better decisions as we go into this 2024 environment.
Election year.
Yeah, so I've never seen anything like this, guys.
And then the market keeps going up, and then we have high interest rates, we have market manipulation, quote-unquote soft landing, Yellen Powell saying, we are resilient, sound and resilient.
Give me a freaking break when we've seen how many charts of monies leaving the banks, how many charts of housing prices and mortgages That banks are responsible for.
The same bank that holds your everyday spending checking account.
Yeah.
It's time to wake up.
It's time to be proactive.
Don't let it be a problem.
Because once a bank goes belly up, you're in the FDIC line.
And good luck with that.
So, you don't want to have all your monies in the banks.
Obviously, the FDIC, in my opinion, is not the best.
I like state charter banks.
That way, you can get in and out, no problem.
They're liquid.
You can pay your bills.
But they're also not really exposed like they are at the federal level.
So, if that's you, just look up state charter banks in your area.
But what I'm really, really concerned about is right now with all the debt and the rising interest rates is that they're pretty much guaranteeing a higher taxation for retirees, for baby boomers.
That's what I'm getting at.
So the 401Ks and IRAs.
Because Social Security, Medicare, they're responsible for the unfunded liabilities.
They can keep on changing Social Security laws so that you're taxing even more.
So there's something called an earnings test.
And this earnings test, it changes every single year.
But if you have a 401k and IRA and you pull it out before your full retirement age of 66 or 67, you will pay a 50% penalty of any amounts this year was $21,000.
So in 2023, you made over $21,000 and you're taking Social Security before the age of your full retirement age.
Anything that you pull out from your IRAs and 401ks is considered ordinary income and you will be penalized for any amounts over $21,000.
Sometimes this does include pensions too.
If you have military, that could be concluded as well.
But mainly it's 401k, IRA withdrawals, 457s.
If you're older, I'm sorry, at least 55 you can take from your 457.
But the whole point of all this is what I'm saying is that they control when and how you're going to take your money out when you have an IRA. An IRA, or I'm sorry, a 401k, you are a participant.
You're not an account owner.
And it doesn't even feel like account owner with the IRA because there's so many rules and regulations on it, especially as it pertains to Social Security.
And as this unfunded liabilities keeps on ticking, they're just going to attack your retirement even more.
This is why I know that Social Security will be solvent eventually.
And everybody living right now will get their Social Security.
It's just the millennials, younger people, under 40, hey, don't count on Social Security.
You need to start putting money away right now.
Right now.
Especially after this market is taking a dip.
This is the time that you start systematically saving and building wealth.
However, for those of you that are in your 50s and 60s, it may be time to have a conversation.
If you have over half a million dollars in the IRA, you want to look at converting that over into a tax-free bucket.
And you don't do all of it all at once.
You carve it out.
A third of it.
And then a little bit of that third in one year.
And then a second year.
And third year and fourth year.
And once you've completed that third of the IRA, you work on another third of your IRA three to four years down the road.
What you're doing is...
You're taking advantage of the taxes now and we're able to possibly borrow against an insurance contract to pay the taxes depending on your net worth and your health.
You have to qualify for that.
We're utilizing death benefits of insurance carriers to pay the taxes on your conversion.
Typically, after five to ten years, you have a whole pot of money that will protect your principal.
The government can't touch it.
If you want to buy a car, you can borrow against it, loan against it.
You are your own privatized bank at that point.
And it's a great strategy for someone that wants to grow tax-free, have the ability to borrow against it at any times.
And even if there is a variable rate on it, that rate goes to you.
So the interest goes to you and your account.
If you're interested in something like that, then give us a call at 813-448-3446.
The IRA conversion strategy is not meant for everybody.
Like I said, you have to qualify for it.
It's typically good if you have over half a million bucks, anywhere from $450 to half a million.
That's when it really works effectively.
But I just wanted to let you guys know that you do have options.
You do have options.
You don't have to be victim of this financial Armageddon that's happening.
You don't have to be victim of the lies in the media and the printing of the money and the printing of the money.
There's ways to protect your money.
Also, if you believe precious metals is one way, We do too.
888-747-3309.
We love these guys over there for a portion of your money.
They are a Christian-based company and they can even put scriptures on your silver.
So, pretty amazing stuff.
They deliver it right to your door.
Cornerstone Asset Metals.
Let them know that I sent you.
And that way you can get the best price possible for your precious metals.
I just wanted simply just to talk about that it is a lot worse than what people are saying.
Kamala is smiling and saying, hey, Joe's alive.
I don't know if you guys saw that recently.
But she was smiling, acting like, yeah, we're going to win.
We're going to win 2024.
So they already know that the fix is in.
Election fraud is in.
They already have their team.
So whoever it is, right, whoever it is fighting against the cabal, I have a feeling that they're going to smarten up and they're going to get a lot of these people exposed.
But we'll see.
We will see.
I don't even care because my ruler is not in the White House.
God has plans for us, plans to prosper us.
He has His hand on us.
We serve a master, and that master is Jesus, and He controls, He governs everything, all the chaos.
He governs everything.
And He's painting the skies like a little paintbrush.
He knows every chapter.
He knows every hair on your head, every grain on a beach.
I'm not worried about this election My goal is to look at the charts See all the facts, right?
All the trillions of dollars that were in debt, the printing, the disgusting amount of printing money, unfundled liabilities, credit card maxing out, 401k withdrawal maxes out, retirement slash wages are not keeping up with inflation.
There's reduced consumer spending even though there's a GDP that's positive.
So the American employee or the American worker is resilient.
They will get whatever they need to get and they will work to get it.
So that does show.
However, the banks, they already know the market manipulation.
They already know who's going to be next.
And I'm saying right now is that if you have precious metals in your safe depository box, that is not a safe place.
That bank could take the money out.
If you have money just hanging out in the bank, that's not safe either because you're losing to inflation.
And if a bank ever gets shut down, you're the first one to go.
So be diligent in your diversification efforts.
We can help you.
Book an appointment with us.
The court says W1M.com.
But this U.S. debt clock, basically what I wanted to just really stress is the more...
The debt that we have, the more they're going to attack your IRAs and 401ks.
That's just the bottom line.
The 401ks and IRAs, it's just a tax bomb.
They are banking.
They are banking.
Hear my words.
They are counting on your retirement to help fund a lot of this debt.
Free aid to other countries and other things that we don't even agree on.
So we have to start converting IRAs and 401ks.
You have to at least be proactive and that's what I want to make sure you guys understand that we have strategies to help you protect your IRA from the taxation because even if you convert it Into a gold IRA or silver IRA or real estate IRA or whatever, a Bitcoin IRA. It doesn't matter.
It's still an IRA. Like, you're signing off the provisions to the ERISA-based plans of the government for your IRAs.
It doesn't matter what it's in.
So I wanted to make that clear to you guys.
That...
Just protect yourself.
And it can be scary out there if you don't know what you're doing.
I just pray that God gives you wisdom.
That you're not chasing returns.
That right now is the time just to be grateful for what you have.
And move to the sidelines.
Just get out of dodge.
I mean, just this week alone, we have the Fed announcement.
We have job numbers coming out.
It's going to be a volatile week.
I had to record this early this week because I'm going to be volunteering to Rise Up Kings event for pastors.
So I'm going to be volunteering my time.
My father is actually participating in it.
I'll be sure to take a bunch of pictures.
About the refinery process of men that just want to go through a three-day transformational experience so that they can come home better equipped for their wives, for God, and for their family, and for their business, and for their own health.
But yeah, give us a call.
Safe money is going to be key right now.
Safe money are contracts, green money contracts that you can put your money in an account Where most banks don't have access to this.
You have it insured.
Your money grows when the index.
But the index is a smart, day-to-day, AI-based, day-trading-based index that can move to commodities, S&P, NASDAQ, and treasuries all in the same day.
Every single day.
So, the volatility is not as bad and they can take advantage of downward and sideways markets.
We have access to those tools.
We're very, very proud.
We also have a new money manager that we're bringing on.
I can't say their name, but they are Christian-based, and I'm really, really excited about our new partnership with them.
We're going to be able to build portfolios outside of Disney and Pfizer and BlackRock and really keep your money safe.
Now, even market money, we can keep it safer because a lot of these companies are not exposed to the everyday media risks.
If you have the FAANG stocks or the Magnificent Seven like Tesla, Amazon, Google, Nvidia, those companies, Anytime the market goes up and down, you're going to see a high, high correlation, high beta on those particular investments because of the vulnerability and the risk that they're so popular in high demand.
But as we're finding out that smaller companies are not at as risk...
And honestly, the non-woke companies are not being advertised and they're the ones with the profitable sheets.
But they're not being advertised.
You have to contact us and we'll tell you what model is best for you.
But we have some amazing tools.
Obviously, we have the ability to look at markets, scan them, and let you know, hey, it's headed up, headed down, get out of the way.
Does your advisor have this potential?
Do they have this attribute where you can basically call shots?
You also need to find someone that aligns with your values, such as your Christ-centered values, your political values, your investment values, Your medical values and your economical and political values.
You have to be on the same page these days.
You just can't go to these woke companies and expect that guy to think like you do.
That's not going to work.
It just doesn't work that way.
You need to find someone that aligns with your beliefs and more than just your beliefs but your values.
I have a Earlier this morning when I was reading my scriptures, I have a pic I wanted to share of my devotion.
I'll just read it real quick.
And it was Luke 8, 43.
So this is a commentary Bible.
So it talks about a verse and then it breaks it down.
So Luke 8, 43.
And a woman having an issue of her blood, 12 years, which has spent all her living upon physicians, neither could be healed of any.
So this was the girl that Jesus went to go see.
And obviously he healed her, but...
During that agony, and so the commentary is, I find this contrast very interesting.
Because some of you have spent the last 12 years in joy and delight.
But difficulty and tragedy will strike every one of us at some point because it rains on the just and the unjust.
Matthew 5.45 Because no temptation comes to us but which is common to all men.
1 Corinthians 10.13 Because to this world, we are promised to have tribulation.
John 16, 33.
If you're in good season, rejoice, but be prepared.
Now it's time more than ever to be in the Word, to be worshiping the Lord.
I just thought that was really cool because it's time to prepare, you guys.
It's time to prepare.
There's no more...
I don't know how many of these I can do and sound alarm.
It is time to prepare.
It's urgent that we need to get our house in order financially and spiritually.
So I just wanted to share that message because it actually inspired me about what are some threats to our economy that people need to worry about and the high interest rates, the market manipulations, the banks, the U.S. debt situation.
The overexposure to 401ks and IRAs, if you have those, you do not control the taxation on it.
And as you guys know, in order for our country to be even solvent, they've got to tax you to hell in a handbasket.
And so it's biblical to basically just get prepared.
Anyways, I'm going to be sharing some pictures next podcast when I get back from Dallas.
I just wanted to say God bless you guys.
I love all the comments, the likes, and subscribes.
Also, if you have any questions about anything, just email me at info at corteswm.com.
And for my Canadian listeners, we've got a lot of emails from Canada.
Just email me from time to time.
There are ways that we can work with you.
It's just it won't be in certain programs, but there are some programs we can offer you.
All you got to do is just email us, info at corteswm.com, and I will be able to answer those very, very quick because they go right to my phone.
Anyways, God bless you guys.
I'm out of here.
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