If you're sitting there and you're thinking man, i really don't like this insider training, but at least it can't get worse. Well, sorry to ruin your parade, but it can get worse and i have a little bit of a story to share with you there and that will most likely put a frown on your face. But don't you worry, we're gon na turn that frown upside down and talk about melvin capital. We just got the results for q1 of 2022 and apparently they sucked ass i'll.

Let you know the details about that. We also will be getting into the overall market and what the fed said today and make sure you stick around until the end, because we have a little piece of bonus. Content related to our boy, jim cramer, and over the past couple days, he's getting pretty flippant and a lot of people are trying to call him out and saying dude. What are you possibly on so with all that being said, let's hop right into it.

So for me to properly tell this story: we're gon na have to take a little bit of a walk down memory lane. Please pay attention to the dates as we go on this stroll together december 15, 2021 house. Speaker, nancy pelosi opposes banning congress, members from owning individual stocks, we're a free market economy. It doesn't matter that we're privy to very important timely information that has global and market impacts.

It's a free market. Let us trade, that's why i wanted to run for office anyway. It's so i could make more money. I want to line my pockets well, as for whatever reason certain things go viral in this world and when this particular clip went viral people, not that happy 76 of voters disagree with pelosi.

Think members of congress have an unfair advantage in trading stocks, unfair advantage. That's it's the free market. Let us trade it's, but we want the money. Well, it's okay, pelosi.

She knows how to read polls. This was on january 7th and then a little bit later, she's like ah january 25th. You know what i like suckling at the t of taxpayer dollars, give me more money, i'm gon na run for re-election, but then, when she looked at that previous poll she's like uh - oh that's not good, so she has to backtrack. Congress moves to ban members from trading stocks as pelosi drops opposition, and this was on february 9th all right.

Well, that seems a little bit reasonable. Of course, we can never trust any politician on anything they're going to do whatever they can to get any vote. They're. Just literally pandering to the polls, so that makes sense, but whatever whatever reason things are, maybe it'll lead to something good, that's on february 9th, and is it stopping her? No and when i say her, i also mean her husband, paul pelosi.

Nancy pelosi had disclosed her husband's new batch of investments, which includes 2.9 million worth of apple disney paypal and amex shares. Well, that's interesting, but honestly, it's not even my favorite fast forward till the end really mid-march, but it was reported at the end. Nancy pelosi's husband just bought 2.2 million worth of tesla. Why is this your favorite one matt? That is a great question.

Thank you so much for asking! Well, let's check this out. He paul pelosi ended up buying the 2.2 million worth of tesla on the 17th of march. Well, since then, tesla's currently up 26 and at one point it was up 40 and based on the rules for politician and their significant others, their spouses or kids. We don't know where he did get out if he did get out, but overall he's up half a million dollars, not a bad job.

For about two weeks of trading. Three weeks of trading making 10x the average income in america not a bad deal and once again this is all a month past. Her saying: hey, i'm not gon na oppose that anymore. So please keep that in mind, but where does it really get wild? Well? This is a piece of news that broke today, president biden preparing to announce pair of sec nominees.

Well. Why is that interesting at all? What's going on and remember, the sec is the organization that is charged with keeping our markets fair for everyone participating in said markets. The white house is expected to nominate a republican and a democrat to serve on the sec according to people familiar with the matter, i would love to be a person familiar with the matter one of these days, but whatever a boy can dream filling the remaining vacancies At the market regulator, president biden plans to tap jamie lisaraga to fill a democratic seat. Well, why is that so interesting? Why am i bringing this up? Why am i dedicating my time and your viewership time to talking about this? This is where it just gets.

Downright hilarious, mr lizarraga is his senior advisor to house speaker nancy pelosi and has worked for the california democrat for more than 14 years and, if you're wondering over those 14 years, how much money have the pelosi's made in the market a lot more than you even Want to look up because it's gon na make you scream. You know at first i thought about this and i was angry. I was like that just on a topical level seems so in the face of just the average constituent citizen of the u.s, the average person who wants a free and fair market. But then i try to spend it in my own head because if not my blood pressure is going to go way too high.

And my doctors warned me about that one. But what? If they tapped him? Because he might be the wealth of knowledge of how people pull off the they shouldn't be pulling off. What? If they're like, we need him because he's the inside man and he'll be able to fight true corruption. So who knows? But this is a little piece of a development that came out today and it's just absolutely insane and it's just the way it is on a superficial level to the average person in the us it's just so so bad and the worst part is.

It just seems like they don't get it they're like we just want to trade. What's the big issue with that, like the the lens through which it's presented to us, there's just no trust, there's absolutely zero trust on both the political landscape and also currently on the market regulation, landscape and the fact that they're taking the most measly steps to maybe Improve it that it's almost so much more worse than what they're doing, because they think the average person is so stupid that we can't even possibly see or understand what they're doing when they're all absolutely full of anyway. That's what's putting the frown on your face. I'm here to now turn that upside down, gabe plotkin's melvin capital ends first quarter with a 20.6 loss, which is a lot uh.

So our boy gabe here, if you don't know about him, he made himself a name when he was on the wrong end of the gme insane crazy movement in january 2021 to the point that he had to get bailed out by his buddies ken griffin at citadel And steve cohen, at point 72, it was another rough start to the year for investor in gabe, plotkin's, melbourne, capital management with the hedge fund tumbling 20.6, in the first quarter, according to people familiar with the matter. Once again, how do i become a person familiar with any matter? Is there like a sign up list? I don't so. Let me know in a comment below the fun fell. 3.8 in march marking the third straight month of declines.

They are getting. Their teeth kicked in the losses, follow a tumultuous 2021 when the new york-based melvin capital ended the year down 39. And if you look at like the short term of what happened in early 2021, it was even worse, a spokesman for melvin capital, which ran 10 billion. As of march 1st declined to comment, i mean i would be, i wouldn't want to comment either i mean they're losing money hand over fist.

So, just to give you a recap of what happened a little over a year ago, melvin lost 53 in january, hurt by gamestop and other bets uh. They were at 12.5 billion, got cut all the way down to eight and they got a cash injection from ken griffin and steve cohen. But now this is leading to the scenario where they're even pulling the rip cord citadel to redeem about 500 million from melvin capital and then on top of that steve cohen's 0.72 to redeem 750 million from hedge fund melvin. So they got him through the craziness of early 2021 and when they thought people were gon na, stop paying attention and stop fighting for market transparency and fairness they're slowly trying to like exit stage left but melvin is just like.

I said it's not having a good performance, speaking of not having a good performance in terms of the overall market. It was a funky funky day and let's just quickly bring up what actually happened here, so we traded down all day yesterday april 5th and then pre-market to the day, the sixth, not good, and then all of a sudden around two things got crazy, volatile and got Crazy crazy wonky. Well, at 2 pm we ended up getting the fed meeting notes, which is just a little bit more details of the most recent fed meeting and remember that's the group of people charged with creating our monetary policy they're the people who basically print money like a drunken Sailor and push it higher and higher and higher, and then when inflation is through the roof, they're like don't worry about it, it's transitory and they basically just do a good job. At gaslighting, the entire public tech stocks drop bond yields climb as investors study fed minutes.

Not the best title, like i mean you saw the volatility there, it's just more of like it was just insanely going up and down just ripping one direction in the other. So here's the key details that you need to know the fed raised interest rates in march for the first time since 2018.. They raised this last month. It was 0.25 percent, so we're not even at a full percent.

Just so you know that's where we're currently. At minutes from the meeting showed that the central bank officials last month had considered raising rates by half a percentage point but decided on a quarter-point increase in light of the uncertainty surrounding russia's invasion of ukraine, many participants noted that one or more half percentage point increases In the target range could be appropriate at future meanings, particularly if inflation pressures remained elevated or intensified great, but what in the hell does that mean here's the tldr version? Basically, the fed pushed a lot of money into our economy during the pandemic era. To keep things going and their idea was price stability and keep unemployment low. Well, now that that is situation's, pretty much resolved, i mean the most recent unemployment report came in at 3.6, which is very, very low.

The economy is looking good, but we're now in this scenario, where the economy is looking good, inflation is sky high everyone's saying you got ta fix this problem, inflation's too high. What are you doing? The economy is in terms of its gauges, its tools, its data signals, things are looking good, you got ta fight it and, most recently they did a little bit of hawkishness by a 0.25 percent increase. But it's just not enough and people are calling out policy, or is it not enough a little bit too late and over the past? I guess yesterday, if you're watching this on april, 6th things were very, very weak and it all related to this and now we're starting to see a very obvious pattern. Fed's brainard sees balance sheet reduction soon and at a rapid pace.

So there are a couple tools at the fed's disposal to fight inflation, but the name of the game is when they use any of them. It creates a less accommodative environment for the overall stock market, and then we see people kind of going a little bit more risk off and we see stocks fall, crypto fall and especially the higher risk ones such as meme stocks, such as crypto. In a general sense. It's just you see money coming out and you also see a little bit more of a bias towards safe haven type of stuff anywho.

We're now seeing this pattern. Where think about. What's happened over the past six months before there's any big announcement or release, i feel like the fed is setting us up in more of an extreme direction. So today, with the notes, there was nothing that crazy there really really wasn't.

But yesterday, when brainerd was talking bullard and when daley, they all came in super hawkish they're like hey, we're considering 0.5 we're talking about a balance sheet reduction as soon as may. We're also thinking about. Maybe the fact that, like maybe we're a little bit off - and maybe we need to do everything we possibly can, because this in fighting inflation, is paramount. So i've been noticing this obvious trend where a day or two before any big announcement or anything like that, the fed is coming in way.

More harsh and it's interesting because, like i guess, they're prepping people and then when the thing that needs to be announced is actually announced, it's kind of like actually more of a calm reaction, but anyway. So this was yesterday before we got the notes from today, and it was just the commentary from yesterday. In my opinion, was much much more hawkish, so obviously you could raise interest rates and then even more hawkish is normalizing. The balance sheet, a balance sheet, runoff, whatever you want to call it, but on top of that she's like we're going to do it at a rapid pace.

So, overall, when you're looking at the craziness and equities, especially in the past couple days with a little bit of bearishness, why is that? It's because of the fed they're making a less accommodative environment for the stock market? Money is becoming more expensive and you're, seeing an exodus from some of these higher risk higher reward type of bets, that's what's going on with the fed and now for a little bit of your bonus content, our boy, jim cramer, his mind is all over the place. I wonder if anyone has checked in on him. Jim cramer says the bear market is over and this was on friday march 25th just a handful days ago. So if you want to make money, you could probably assume that the bear market is in fact not over, but why do i think this is odd? I mean any day you could pull out random comments from jim cramer and you could be left scratching your head, but from the 25th until now check out his recent tweet working hard on trying to explain how to sell some and not other positions and gearing up To rebuild after raising cash to its highest level since the pandemic began and one of our highest since the start of our charitable trust, whoa whoa.

What in the world jimmy boy, gymster jimbo? What happened from march 25th when you said the bear market's over which has the i guess indication that maybe we should be going long and buying and not being going as heavy as we can on cash and how to sell some? Where do you talk? What is it man is the bear market over, or are you loading up on cash and waiting for a bigger dip? I think your viewers and all the people who pay for that cnbc pro investing or whatever the hell that is, i think, they'd appreciate a little bit of clarity. That's it's definitely going to be leaving us all scratching our head anyway. I just want to leave you on a classic note of confusion. That's how you should really be ending any video, it's just a cliffhanger for the next one.

Speaking of that, if you enjoyed this video, it would be awesome if you could help me out by hitting that like button and don't forget to join up by hitting the subscribe button. I appreciate your time i'll catch you in the next video have a beautiful day.