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Why the stock market is crashing –

Why the stock market is crashing –

Epic's one of them is involved in a current event that relates to the stock market where the stock market is and why it's crashing a lot of you have been watching where the market has been on this massive tumble let me see if I can actually pull up a graph let me see the Dow Jones Industrial Average which is one of the great indicators of stock market performance today as has been really taking a hit and I as your friendly neighborhood finance professor I think it would behoove all of us for us to talk about this a little bit so you can figure out what to do with your own portfolio now what I'm gonna do is show you this chart so you can see on this chart here that when you look at the Dow Jones Industrial Average which is one of the leading indicators of how the stock market is doing any given point in time you see that today it's it's it's dropped quite a bit it's dropped well it looks like a about five hundred points five hundred points you know that's enough to you know cause a couple of cold sweats and not not so much that it makes anybody want to go jump off a building or anything but it's uh made some people nervous there's some people who lost a lot of money as a result of that let's see dunk dunk says hey uncle boys huh what's going on I'm glad to be your uncle I'm proud too so so remembered it did me and your mom about you in this world boy we take you out anyway so let me get refocuses so I'm gonna show you what the five-day average looks like so you can see here that over the last five days you've had a lot of volatility a lot of ups and downs ups and downs ups and downs in the market a lot of this relates to your president Donald Trump who has been you know he's been you know the kind of president that he is he he gets out there on Twitter he has a lot to say he's pretty active and and it's interesting we're actually going to kind of analyze some of this before we jump into the lecture presentation for the students they're in the black business school that are in the private session where you guys can actually ask questions stuff like that if you're not sort of part of these conversations that we have in the black business school you really don't know what you're missing it's really an opportunity for you to get a leg up on everyone else when it comes to understanding money money is one of the most important things in the world to a lot of people and if you want to really get ahead in America it's very very important that you understand where money comes from how to get it how to keep how to grow it those are the people that end up on the good side of the wealth gap the wealth gap is basically this bridge that's being that's been sort of created it's a it's a gap that's widening those who choose to stand on the poor side of the gap are going to struggle those who choose to stand on the better side of the gap are going to do well never let anybody make you believe that you have no choice and which side of that gap you want to be on because there are study there's study after study after study this shows that your economic choices and your economic intelligence and your choice to obtain economic and challenges or to not obtain economic intelligence will play a direct role and which side of the gap that you end up on these this is not complicated this is not rocket science this is not a new discovery this is something that me and other financial scientists have known for the last hundred years this is not anything any magic secret this is not any sort of secret information that that poor people aren't allowed to have this is information that's available to everybody and that's why I'm making it available to you so you haven't jumped into some of the curricula that we have in the black business school we have hundreds and hundreds of hours of curricula that it's designed to be better than what you get on the college campus you can actually take our free class if you haven't taken the free class yet you can go to financial Juneteenth university commerce financial Juneteenth university comm that's a class that has a one thousand dollar value it was a thousand dollars to get a lifetime membership to that program we're offering this to the public absolutely free free of charge financial Juneteenth university comm sign up bring your children bring everybody and again this is not as good as college remember this is better than college because College will only teach you how to go into debt they will only teach you how to get a job they will only teach you how to work for somebody else we teach you how to stay out of debt we teach you how to create a job we teach you how to become a boss that's what we do in the black business school and that's my little two cents on why we exist and why we do what we do so let's keep looking at this stock market pattern here now I want you guys to kind of take a look at this let me share my screen again so we can kind of see what's happening here so you see over the course of the week that the markets kind of gone up and down up and down up and down the last five days the last month you've seen kind of a general downward trend on here you see it a twenty five thousand three thirty five here you see kindly drop it down to the 23,000 three months you see it when as high as twenty six six and you've kind of had a bad you know three months with the stock market you know a bad three months in terms of you know the invest in returns they just haven't been what what they what they used to be give me a second here I gotta hit a button because something's wrong with my something's going wrong with my Wi-Fi here give me a second guys hold on let me see if I can fix this and make this right let me see here hold on while I do that get familiar with the interface so you know where everything is located and all that good stuff hold on let me see if this works okay let me try it now all right okay good okay so so you look here now let's look at the one year projection and look at this now look at how you know you can lose the forest if you're only looking at the trees you see here's here's a secret on wealth that they don't talk to you much about as I've told you guys before Warren Buffett talks about this all the time basically America is a stupid country the economically Americans are trained to be economically stupid I and I did there's no better way for me to say it I'm not calling anybody stupid I'm not making fun of anybody but it's really a you know a fundamental fact that Americans are trained to be as economically ignorant as possible because if you're economically ignorant then you you know it's kind of for the same reasons that you know nobody wants a prostitute to go to college right nobody wants to prostitute to have high self-esteem to be self-aware and to understand you know what his or her rights are everybody wants to prostitute to be stupid they want the prostitute to be drunk they wants to know they want the prostitute to not you know sort of be paying attention to the details um in America one of the you know consequences severe consequences of economic ignorance that sort of being spread mainly due mainstream media through hip-hop you know things like that is that it allows them easy opportunities to basically come in Rob you it allows them to get you to spend your life being the consumer and to never be the producer to always be the person who giving wealth away to never be the person who actually receives any of the wealth from other people they want you to be on the bad side of the wealth transfer process and that's just a fundamental fact that's just true so one of the ways that you're kept economically ignorant is that when people react to the stock market when they talk about what's happening in the market people tend to focus on all the wrong stuff you know so right now you've probably got some people who are feeling good about the fact that they avoid the stock market because they're like look at this you know dr. Boyce is out here telling everybody to get into the stock market and that's just you know we as you can see right now money's being lost in the market and this is you know such a bad decision and blah blah blah blah and this proves it well you know those are people who are just short-sighted as warren buffett you know makes it very clear one of the richest men in the world that typically you know that wealth the wealth gaps and wealth transfers and investing is is a transfer of wealth from the those who are not financially educated to those who are extremely financially educated it's a transfer of wealth from those who are patient or impatient to those who are patient those who need instant gratification to those who can delay the gratification so basically those who are short-sighted are going to give their wealth to people who have a longer term vision so when you look at these charts now by the way if you're on Facebook and you're watching I'm going to share a link where you guys can join us in zoom if you want to come in because right now the Facebook the internet connections acting really weird so I want you guys to just know that then I'm gonna give you guys a chance to come in let me see here and if you want to see a lot of this other these other discussions we literally have over 100 hours of great content and and I encourage you to make sure you sign up at the black business school start with our free class and then if you want to grow into the black stock market program you can we now have a certification process we can actually get a certificate or you know to basically show that you have been certified by me and the black business school when it comes to stock market investing also we have we have kids we have certifications for kids as well so we have a lot of good stuff going on but anyway so let's keep talking about the stock market here so anybody who you know doesn't understand the market dynamics and how the market works you can easily look at what's been going on this past week or so and see that as justification for why they should never invest in the market scared money doesn't make money you know people that are scared don't usually make much money because people who are scared don't take any chances those who don't take any chances don't build any wealth because if you look at the market even if you're looking at this sort of downward trend here on the on the graph and I'll go back and share my screen again I had Wi-Fi problems so I keep I keep on sharing cuz I'm trying to figure this out you see that even though you've had this sort of period of strange volatility these crazy things happening you have you know you go back a year the market is trading 20,000 and then it hit as high as 26 now even now when it's dipping it's still a 23-6 go back five years you were able to get into the market for as low as fourteen thousand five fifty six right so if you look at this you know anybody who was just consistent who didn't get all panicked because of you know short-term volatility or short-term fluctuations did pretty well was able to make quite a bit of money you know was able to really get a hit and so ultimately you know when I talk to you about why the markets crashing I'm not talking to you about it even though to kind of say okay you got to change your whole life philosophy now you got to do something totally different get out good you got to get out I'm not saying that what I'm saying to you is you know like this is how the market works this is my way of explaining market dynamics this is my way of explaining how investing works this is my way of explaining how the wealth building process works how the market mechanics work is really it's really just sort of an intellectual exercise it's not me saying to you that oh this is why it's smart to avoid the stock market or or this is why you should change your whole investing strategy none of that you know so anyway let's let's talk about this a little bit so why is the stock market crashing right now well a lot of the market movement that's occurring right now relates to your president Donald Trump who basically you know it's kind of doing some stuff this causes some volatility now I'm gonna just warn you in advance I don't get all caught up in the emotion of whether I hate her don't hate Donald Trump do I think he's cut out to be president no probably not um but do I really sit around and obsess over the fact that I think he doesn't like me because I'm black no I don't like him either I don't you know I don't dislike him because he's white I just don't like because I think he's an idiot but that doesn't he doesn't care if I like him or not I don't care if he likes me or not I don't consider myself to be inferior to him or under his sort of magical power or control I'm just building wealth for my family and making my moves the same way I would have made moves if Barack Obama were in the White House there's no differential in terms of how I conduct my life based on who the president of the United States is and what I encourage you to kind of consider is the idea of having that sort of sovereignty in your own life where you're not sort of feeling that you've got to have these pin pin drop knee-jerk reactions to whoever's in the White House and whether they like you or not it doesn't matter if they like you or not if you're broken nobody in America don't really like you that much if your community struggling in a and has no wealth and no resources no power nobody's gonna like you you will have no friends in America if you don't have any economic power and you will have no freedom in America if you have no economic power so get power and then you'll have all the friends that you want everybody will come and kiss your butt and tell you wonderful things about you you know when I was when I started doing well financially I could have I could have any friend I want anytime I wanted because they knew that if they came and worked with me I was gonna help them to succeed economically right so ultimately that's what you want to process that's what you want to think about you don't want to get caught up in all the emotionality of it all because the emotional people are also the broke people pay attention watch just watch the people that are sitting around screaming and yelling about this this and this and just look at how broke they are because then they're screaming and yelling about how broke they are what really they should have been having meetings on how they could actually construct your productive economic plans for the families and for their communities so they could get out of that mess so spend less time yelling and more time planning and more time strategizing and you're gonna get a hit so let's strategize this is what I do this is what we do in this space that's why you'll never see as many people in here as you'll see in some sort of these yelling sessions I see on the internet where you complain about white supremacy I know white supremacy is out there that's why I want to be powerful so there white supremacy can't control me so anyway let's let's dig into this let's figure out what's going on with with with Donald Trump and white trumps words have caused the markets to move remember I told you guys in the black stock market program that the primary factors that move a stock price are pretty much you know information and risk those are a couple of things or other factors as well but information and risk are huge information comes from all different sources a lot of it can come from what your politicians say for example they if the head of the Federal Reserve you know says you know I think I might raise interest rates this year I don't know if I will or not just the mere fact that the head of the Federal Reserve even says that they might raise it just rates that right there what could cause the markets to rock right because the mark is I hold my god she might raise the interest rate since we're in big trouble now listen let's make a move let's sell sell sell buy buy buy right so ultimately information is huge even if the information isn't real you see information and news are connected but they're not always the same thing because sometimes information can actually be related to speculation and even fake news fake news can move the stock market just like real news can withstand market because much of what drives stock prices is perception you know so the perception of risk can have as much of an impact on the economic system as actual risk so so ultimately what Donald Trump does that either pushes the markets forward or can cause the markets to rock is that he is a bold very risky very big mouth threat unconventional sort of president you know he likes to say things on Twitter he likes to get out there and and and and attack people you know things like that now the funny thing is that sometimes these attacks cause the prices to drop like today for example what's caused the prices to drop has been mainly his attacks on or potential trade war with China he's been pretty bold in terms of you know going after China going after NAFTA ie bills uh you know that China the Chinese have been kind of screwing the Americans on the trade deals he feels that the Mexicans have gotten a really good deal on NAFTA also he feels that Amazon is getting away with paying very little taxes now what that has done is this caused the market to drop quite a bit Amazon was one of the biggest it took one of the biggest hits on the market because of what Trump has been saying because when the president is saying he doesn't like you then that makes your investor say whoa then that means you might be under attack people are going to come you so just the same way like last week when you have Facebook being attacked by Congress that rocked Facebook's price because people said oh my god the information that I'm processing now is that Facebook may become under attack from the federal government which can affect their cash flow which can which should make their value drop as a company it's no different from dope dealers who say to other drug dealers like let's stop all this killing because we're gonna get attention from the police and when the police come through because of all the killing then we're gonna all lose money right so right now Facebook is saying yo let's lay low let's be quiet and chill because when we're drawing attention from the feds the feds may come through and when the feds come through everybody's losing money so you didn't just see a decline in the price of facebook you saw a decline in the entire tech sector you didn't just see Amazon drop you saw a drop in the entire market because Amazon is one of the big whales in in the economic ocean when the big whale gets pulled down a little bit it kind of pulls everything down now how much of that is that justified I don't know like a lot of people don't know because nobody really knows exactly what Trump is gonna do so far all Trump has done is talk all he's done is talk right now the question is you know is that talk gonna be backed by action is the government now gonna go and do some sort of you know are they gonna have some sort of hearings you know on Amazon to determine if they are paying their fair share of taxes is Amazon is Amazon am are they violating the antitrust laws well a lot of the legal experts say that they're not that they're not really a um that they're not a monopoly Trump called them a monopoly but the experts would say that Amazon really isn't a monopoly but that really comes down to how that particular administration interprets what a monopoly is the Trump administration let's just be clear again push all the emotionality to the side in terms of how you feel about Trump this I'm not I don't care about any of that the Trump administration is primarily a business friendly administration listen so so so one of the things that that is must be made abundantly clear is that you know if you go back to this chart that I showed you a minute ago let me pull this back up if you look at this this chart let me share my screen again so you guys can look at this with me hold on let's look at this chart right now okay um be the stock market did extremely well in during the Obama presidency extremely well but it did really really well under the trump presidency you know Obama Obama pushed the market up because all presidents are gonna push the stock market up all presidents pretty much every president in the White House is a fan of corporate America presidents can't really get elected without getting the support of corporate America because the government has become heavily corporate eyes so Obama made sure that the stock market did well but Trump is very very Pro stock market very very pro-business so what happened was that the market shot up maybe let's say when a 5,000 points during the whole Obama presidency well it went up 5,000 points I think in the first year of the Trump presidency right so literally it went up more in the first year of the Trump presidency than it did in the whole eight years of the Obama presidency and it went up a lot during the Obama presidency I mean Obama was very Wall Street friendly which was really interesting that you had the perception that Wall Street hated Obama when really he was really a good friend to corporate America I mean pay attention back in 2007 2008 when all you when all that chaos happened in the market there were some people with Wall Street firms and with you know New York banks they should have been indicted they should have gone to prison Obama didn't prosecute any of those people he didn't touch not a one of those people on Wall Street that caused the new collapse of the entire economy now this is not a complaint this is just the fact so Trump the same thing is true with Trump Trump and Obama are both very very pro-business presidents Trump more so than Obama so that's why you saw the market kind of take off because Trump is is that he doesn't like regulation on business because he's a businessman that's what he's into he doesn't you know what he says about the trade deals what's interesting about the trade deals is that there are a lot of experts who actually agree with him they feel that NAFTA was not a good deal for especially for the American worker as you couldn't join for example if you can join that with what's happened to American worker wages over the last 25 years NAFTA did not help the American worker every single story that you see about the wealth gap in America where they're not the 1% are getting richer and everybody else is poor well the workers their wages have remained pretty flat since before NAFTA you know and if when NAFTA was being passed the workers and the unions were very much against it they fought Clinton tooth and nail and so again if you take out the fact that Trump is saying these things if Trump that Trump is saying these things about you know stop bringing the drugs over but using accidents to bring in the drugs right it sounds crazy coming from him but again there's there's an article you can actually look at this article it's on um look it up it's um it's on The Huffington Post and it's called blitz by Ryan Grimm and it's called NAFTA and the drug cartels a deal made in narco heaven and this was written in 2009 and what this article is saying is that NAFTA was a dream come true for drug exporters who were exporting drugs to the United States because what happened was Clinton opened the borders so that so that millions of trucks would come through the borders and almost none of those trucks would be searched so the the original drug trade had to go through the Caribbean and bring the drugs through Miami now they could just bring them easily across the border and what they found was that the Year NAFTA passed that there was a spike in the number of people admitted to the hospital for overdoses on meth and heroin there was a spike in heroin and cocaine seizures so there was a spike in and all in all the drugs being brought into the country and this is a fact this is proven this is so so so what's interesting to me is that um you know when you look at what Trump is saying to China what he's saying to Mexico lookyou he's basically saying look in these trade deals you guys are really making a lot of money off this country I think that there are some people who might argue that the American workers are not benefiting from these deals you certainly can't argue that the American worker is better off now than they were 25 years ago cuz they they weren't they weren't so maybe you can say okay NAFTA had nothing to do with it it would have happened regardless of NAFTA that's possible but something happened something happened that caused American workers wages to not go up and so what you're seeing right now in this country is you've seen this massive growth in the wealth gap between the 99 percent and everyone else and what I'm really trying to sort of communicate to you is that what's really kind of happened in my opinion is that there's been a shift in terms of how he's made how the most money's being made and the most money in America is not being made through working anymore that's why you know I've asked you guys to reconsider the old-school model of success which was you know work hard go to go to a good university and get a good job because it's rare that people get a chance to become wealthy by working for someone it's rare that people are able to borrow you know fifty thousand dollars in college and get out of debt the average black college graduate is is deep in debt half of them have defaulted on their student loans because there's too much to repay the average college graduate in America has thirty seven thousand dollars in student loan debt and the average college graduate in America only makes about fifty nine thousand dollars five years after graduation so think about this you're making fifty nine thousand dollars a year and you're being asked to repay thirty seven thousand dollars if you make fifty nine thousand a year you only bring it home about maybe 35 or 40 per year and but you're being asked to repay 37 thousand dollars in debt so you're paying a mortgage on this invisible house and the thing is that black students actually have to borrow more because they have less wealth to begin with so effectively something has transformed and so what I really kind of think is happening is that the gap is gonna continue to grow it's never gonna change they're gonna be people who are gonna ship their strategy they're gonna get on the other side of the gap and then they're gonna be the masses of people who either refuse to change or no one tells them or you know because I'm in my video a lot of the conversations I have a wide open to the public doesn't cost that much money till I learn from people like I say in the black business for whatever but a lot of people aren't going to hear that so they're gonna end up stuck in that same old situation and what's gonna happen is you're gonna see a for a large segment of the black community black wealth is going to go backwards so you're gonna really see sort of two Americas you're gonna see two black Americas you're gonna see the black Americans that are doing well that are that are fine they don't know anything about any of these statistics about black wealth dropping because their wealth is going to go up every generation then you're going to have the other families that are going to see their wealth actually dropped black wealth for black college graduates their family wealth has actually declined so college is a an automatic increase er in black wealth is it's a myth it's just not true anymore there is connection anymore between going to college and increasing family wealth so so make sure that you just kind of understand that as you put together your college planning strategy in fact what I'm going to do with you guys in the black business school is I'm going to actually put together a special lecture where I'm gonna break down these factors and break down ways that you can still go to college except keep the debt down and reshape the way you make that investment and then to handle the other side of the equation which is to make more money after you're done with college so because basically what's happened is that the debt is here and the income is here so in order to make it work for you you need the debt to go down to here and the income to go up to here so there's strategies for that but it's not something that you're gonna be taught sort of on as you know as a standard in high school or middle school or college or anything like that it's something you have to learn you know somewhere else so anyway so basically Trumpets is complaining a lot about nap days complain a lot about China I from the data I've seen China does have a trade surplus with the United States China is a very aggressive trading partner they they are very tough negotiator economically they're not as open and as fair and as free as the United States we give a lot of weight to a lot of other countries and the Chinese taking full advantage of that there are open parts of our economy that the Chinese will not open for example you know we will let pretty much anybody come in new business and to own all kinds of stuff the Chinese they don't let they didn't they didn't let Facebook into their country um they didn't let Google into their country they didn't let over into their country they are very very proprietary they're very protectionist the Chinese would actually love reading books like power dynamics because the way the Chinese government operates is a very power Nam –ax oriented kind of strategy so you know so ultimately I encourage you just kind of have an open mind in terms of how you interpret us like you can still dislike Donald Trump if you want to you can say what you want about my don't care about any of that but really kind of see for what it is and don't let anybody sort of tell you what you're supposed to think because everybody has their own agenda and so anyway the other thing too is the other factor that is driving the movement in the markets as I mentioned to you earlier the Amazon is kind of under attack from President Trump you know and again he's being bombastic he's doing things that are you know unpresidential you know yelling it on Twitter and it is causing real losses and economic value he's behavioral I like a reality star a lot more like a reality star than the president we can see that now his question about whether or not Amazon pays taxes when I saw that I didn't say Oh Trump is acting crazy again we know the xes crazy every day that's a given my thought was well does Amazon does Amazon pay taxes because the thing is I know for a fact that these companies do have a lot of loopholes they're very sophisticated in their tax strategy and because you know open trade open trade really benefits corporations NAFTA benefits corporations that's why I went in Trump attack NAFTA it dropped stock prices because corporations do lose the question has always been do American workers benefit from NAFTA and I just don't believe that they do I haven't seen a lot of evidence to say that the average American worker benefits from these wide-open borders and wide open trade where factories can just be moved to Mexico you know I've seen cities like Gary Indiana and Milwaukee and Toledo Ohio get decimated because because everything's being manufactured in another country so I'm not gonna say tell you how you should feel about that but don't don't just sort of buy into this idea that NAFTA was good for everybody NAFTA was good for America as a whole right it's like this it's like let's say we have a family and they're five of us in the family the mama the daddy and the three kids and and and and somebody and let's say that all of us are receiving an income of a hundred dollars a week everybody gets the same amount of money and then somebody it's less five hundred dollars a week that the family gets so let's say somebody comes in and says I want to make a deal with the dad I'm gonna pay the dad ten thousand dollars a month and and everyone else will get whatever amount of money the dad decides he wants to share so let's say the dad is a jerk my dad doesn't want to share his money and so the baby they're paying $10,000 to the dad a week so the dads bought the dad's doing extremely well and the dad can say look at us our family income has gone up twenty fold because we made this business deal but nobody's asking the old how is that income being distributed is the dad sharing the money and because if nobody's making him share the money then you have to question whether or not the deal was good for everyone right so basically in America because you've got a tax structure that's built in such a way that everything is really in biased in favor of investors owners and wealth builders and and and and people that run companies you know what happens is that you don't have that trickle down so you're saying you know as a country America's overall wealth went up dramatically when NAFTA took place free trade does benefit countries on you know if you look at just total income for that country the problem is that the income goes to the people who own things the income goes to the people who run companies who own assets who make investment who invest in those companies the income does not trickle down to the worker the worker is a lot like the child or the you know that or the spouse in the household the worker is not like the guy the dad is corporate America so the dad isn't the 99% that have seen their wealth increased Sevenfold in the last 20 25 years the workers are like the children who've seen their incomes go down because there's not an appropriate distribution of resources now the question you asked at that point is well what's going to happen is America gonna just change its its way doing business you know are we gonna one day wake up and decide that we want to take care of the workers the way we take care of the corporations I don't have a lot of faith in that ideology because I see a Congress they fight so much that they can't even get along well enough to keep the government functioning they can't even figure out how to you know pass the budget so that they can function you know and and pay you know pay the salaries of government workers I see them fighting so much that they can't even make an agreement that is going to stop basically this very slow very painful you know sort of very very slow deliberate so adrift where the ship is going over the waterfall the ship is the federal government the ship is going over this waterfall very slowly and everybody sees it happening but nobody can stop it so economically speaking our country's going through that right now economically speaking our country is kind of drifting over an economic waterfall and nobody's really stopping it but everyone's just blaming everyone else for what's happening right now so basically the debt of the US government is unsustainable it's at a level that they can never repay is that a level that eventually would eventually be the foundation's going to crack it's at a level that it has worried economists for the longest time but nobody's doing anything about it so what I've been saying to you black people is you got to get your own lifeboat you know you've gotta if you if there's ever a time for black people to learn the value of what's independent thinking it is now you if you follow the crowd then you will burn crash and burn like the rest of America then you must pay attention to the writing on the wall but you must engage in independent thinking and an independent strategy that will help you to avoid the coming collapse that is definitely going to occur for the United States of the whole and for the American worker so so ultimately you know the strategies that we talk about are sort of the basic ideas that allow you to get on the other side of that wealth gap um you know most people that I know who who are invested in the stock market on a regular basis the reason they're doing better economically is because when you're a consistent investor your economic success is aligned with the people who are winning it's like it's like me time my fate to LeBron James or to Steph Curry in the NBA you know he's a winner he's you know these guys are gonna win championships so if I get money every time Steph Curry wins a championship or every time Steph wins a basketball game I'm gonna do better because Steph is doing burn better I've hitched my wagon onto him so when you are invested in the stock market you're hitching your wagon on to corporate America and we know the government's going to take care of corporate America the other things you want to do is you want to learn the basics of real estate so you can buy a home as soon as you can you also want to learn the basics of entrepreneurship so you can create multiple streams of revenue for yourself all right so what I want to do is I'm going to do a a lecture for you guys real quick on on the on the mechanics of the market as well as securities laws and regulations for those of you are in the black stock market program and in the black Business School who came out to this conversation I just wanted to start off with some current events you can kind of know what's going on in the world and don't forget guys if you haven't signed up for the free class you can sign up at financial Juneteenth University commerce financial Juneteenth university comm so even if you're a member of the black business school you can get in the free classes $1000 value totally free to get you started you want to join the black stock market program you can get the first month totally free there's over a hundred hours of content in there it's extraordinary stuff you can actually go to beat black style market program calm this new black market program calm now these slides that I'm about to show you these are the slides this is the first of three lectures that will prepare you for the level three certification for the black stock market program the lectures that you would go through to prepare for the level one and the level two certifications it's right there in your material you can actually go to the bottom and look up the certifications and basically the lecture and the slide for every level certification is already in there so you can look at you can do level one and watch just watch the videos take notes kind of study it for a little bit and then take the test if you pass the exam paying the certificate is sent to you and you have a certificate that you can put on your wall to show you've been certified by the black business school in this area that's one of the directions that we're going you know if these white universities can create degrees and their own certifications then we can have one for a black economic system as well this is not a certification that will get you a job in Walmart or Best Buy this is a certification that will get you acknowledgment within the black economic system the same way a degree from the University of Delaware would get you acknowledgement within the white economic system and the reason we want to do this is because all of this has to start from somewhere and then number two we want to do this because we want to encourage you to think outside the box to create economic opportunities for yourselves by developing economies where black people are doing business with each other as opposed to us being upset because other people won't do business with us they don't want you they don't want to invite you to the party well you take your basketball and you go home or you get with your friends and you start a separate game and that's basically what we're doing we're doing it successfully and that's what the direction that we're going also in case you didn't know if you want to know about the tour dr. klahn Ennis and I are going to some different cities in the next few which is going to Chicago st. Louis Atlanta and a few in Dallas and a few other places so you can actually learn more by visiting financial Juneteenth parinama XCOM that's financial Juneteenth parinama comm so feel free to check that out if you want to meet us in person alright so let me let me go and share my powerpoints with you guys now so we can we can get into the nitty-gritty so today we're gonna talk about securities laws and regulations now you know this is important to understand you you know because here's the thing look securities laws and investor protections are something that doesn't seem like it's a big deal on the surface but it's the structure the structure of you know the way the economic system in America works it's that structure that gives it value is in the structure without that structure you wouldn't have American stock markets being the most valuable markets on earth the reason that the New York Stock Exchange and the Nasdaq are worth so much more than nearly a pretty much every market on the planet is because they have been able to reduce risk in that market by having the equivalent of what I call the financial police which is the Securities and Exchange Commission the Securities Act of 1933 1934 1940 and all the sarbanes-oxley Act of 2002 etc they have these regulations in place where basically what they're doing is they're saying to anybody who's thinking about investing this thing this is common sense this is not complicated stuff I'm sharing with you stuff you've already known your whole life they're saying to potential investors are saying look invest your money here because your money will be safe nobody's gonna rob you nobody's gonna lie to you nobody's going to tell you that their company's worth a lot of money and not be able to back it up nobody's gonna collect your money and run right Bill Gates just went to Nigeria and gave a really hard speech to the Nigerian government where he basically said you know you're killing yourself economically because we can't invest here because we don't trust you we don't trust you know all the corruption is a problem you're not investing in educating your people you're not investing in the health of your people you're not investing and making sure that the businesses from outside of Nigeria are gonna feel safe putting their money here and what that does is that drops the overall value of your institutions to the rest of the world so securities laws and protections are designed to solve that very important problem of making sure that you know people that you don't want to give you their money feel safe doing that and this is one of the things I was talking to Jay Morrison about this morning because Jay and I are actually gonna partner on something that he has established called the Tulsa find ways it's got an SEC approval and everything else I'm gonna be one of the partners and fun he's got to work out the details and and one of the things I liked about the way Jay structured everything is he avoided a problem we've had in the black community which is due to a lack of trust deriving from a lack of transparency you know you've seen people raise money without any sort of accountability to the community you've seen people raise money and say I'm not telling you anything about where your money went you have no right to know where your money went and if I took your money and spent it on whatever then that's none of your damn business well you can't do business like that you can't build an economic system like that think about this do you feel comfortable investing your money with somebody who tells you that you have no right to know where your money went no you don't it maybe it would upset you you'd be a sucker if you did right so ultimately when I when I talked to Jake about and I'd had this conversation with Minister Farrakhan about it but Farrakhan really gets it as well I said on an economic Advisory Council with the Minister a few years ago but he already understood all this Farrakhan two wise men you've been around a long time and basically what they understood very well is that you cannot take money without having protections in place to make sure the investor feels safe when the investors get nervous they either they pull their money back or they invest less money or you have to give them a higher return on investment to get them to consider to take a chance with you right so ultimately the US markets have a high value because they've got they spent so much time on the bureaucracy on all the little protections and laws and everything else to say look if a company comes alive to you don't worry we'll go get them if somebody cheats in the market and they do insider trading we'll go lock them up if somebody appeal puts out a you know a public call to raise funds and they don't want to tell you what they did with your money over go go get those suckers and that makes investors feel safe so that's why these laws matter because they have a direct translation into the overall market value that exists on the market as a whole so anyway let me keep going first a lot of securities laws exist as alleged by the government designed to protect investors and those who wish to deceive them there are a lot of protections in place to ensure fair and orderly markets you have to have fair markets fair means that if I'm the little old lady in Iowa trying to trade I'm not going to get duped by some sophisticated investing shark on the East Coast who takes advantage of little old ladies right now sometimes that still happens we saw what happened with the banksters which was a problem with the markets right but for the most part American markets are actually the safest in the world for you know relatively speaking now there are places in China that you can invest for example where you might invest in a company and the company may not even exist all the documents were faked all the financial reports were faked we don't that doesn't happen in the United States not all companies that are publicly traded on the New York Stock Exchange or the Nasdaq um to provide provide transparency and liquidity transparency means I can see through the system I and there's no wall blocking me from knowing what's going on with my money if I ask you a question about my money that I have a right to come to the shareholders meeting I have a right to report you to the Securities and Exchange Commission if I think that you're ripping me off right so transparency means I can look through when I make investments in my business anybody ask me they come to me they say hey Doc we want you to invest in this thing that we're doing the first thing I asked for is transparency I say well I need to know that my accountant can come into that system and look and see how much money was made that day I don't want you telling me how much money was made I need us to be able to verify this because transparency reduces risk risk is one of the biggest factors that moves the price of an asset high risk assets can still be sold but they get sold at a lower price then then low risk assets if everything else is equal the quiddity means that you know if you have a good market liquidity means that you can just sell and buy and buy and sell and you don't have to take big concessions on the price because they bring everybody together and there's always a buyer if there's a seller you see one of the biggest things that the black economy needs as they need more markets we need more markets where if I've got something I'm trying to sell I'm trying to sell myself home trying to sell my services or I'm trying to you know sell you know notepads that I said I make or ink pens that I custom make in my house I can find a market where there are people there needing pens and that way we can have we can do business we have transactions so those markets function the same way that a nightclub functions a nightclub is nothing more than a market the you know the guys are selling their sex appeal and the women are selling their sex appeal and they and when you got a bunch of guys and a bunch of girls you have a bunch of buyers and a bunch of sellers or what you might call a bunch of traders right and so ultimately that's kind of how a stock market works you got people that want to buy shares of a company those who want to sell those shares and when they can be brought together in the same system then everybody wins value goes up happiness and utility goes up the community does better when you bring people together so let's keep going to make sure companies are giving you honest accurate and timely information one of the big problems they used to have it in stock markets back in the day was that everybody would lie everybody would just make stuff up they would put out shares and stock then they've done Lewis they just go and print but you know 10,000 extra shares and and and next thing you know your shares have no value you know they did a lot of really dirty corrupt illegal things and that's why these securities laws were put into place now mind you most of these laws actually came into existence around the Great Depression the Great Depression why do these laws come into existence around the time of the Great Depression think about this so roaring 20s everybody's happy everybody's party and everybody thinks money grows on trees right people literally are expecting that if I invest in the stock market now my money's gonna double within six months so it's the roaring 20s everybody's happy everybody's liquored up everybody's just partying it's great then BOOM you have the crash the market crashes next thing you know this guy thought he was a millionaire now he's broke he's jumping out the window you know some other person is is isn't the soup line now when he used to have a mansion and a fancy car right everybody sort of traumatized and devastated now black folks you know we weren't devastated because number one we're tougher than everybody else so we're used to agony but then too we were already poor even when everyone else was doing well so like my grandma said she said in the Great Depression we didn't even know that there was a depression because we were always poor right but for the rest of America it's devastating and when you're traumatized your your sensitivity to risk goes way up it's like when I was in a car crash in 2005 I almost I was driving down the road and I hit a patch of black ice and my car spun around on the freeway two times and wood flew off the road I once I got out of that car I was very very sensitive to how risky it is to drive like I was very sensitive to how dangerous the road was so I remember I was in the car and I was in shock because I almost died and I'm riding in this freaking taxi and there's no seatbelt and the guy's going super fast and I remember being scared to death right so basically that was the financial version of how I felt after my car crash so instead of a car crash you had a market crash every investor is highly sensitive to risk they're scared to death they're thinking there's nothing there's nothing real we can't depend on this economy I'm gonna keep my money they're going to the banks everybody's taking the money out of the banks when everybody's taking their money on the banks the banks crash you can't build anything when everybody's scared of each other that's why the black community has trouble in some sectors of our community building things because they're my scared you thereby scared again result right that's why building trust is important so what FDR did which was brilliant was he came in and said let's restore trust in the mark let's help investors to feel safe and secure by putting their money back in the markets by putting their money back in the banks so we're gonna pass a bunch of laws that will let you know that we've got your back so what they did was they passed a string of laws Securities Exchange Act of 1933 1934 there wasn't stuff done 30s the early forties is settled which we'll talk about in a second and all these laws were designed to basically help investors feel safe so everything was really emotional because it wasn't so much just about what the actual risks were it was also about the perceived risk it doesn't matter if I bring you in to the safest place in the world if you still feel unsafe then you're still gonna not want to be there right so ultimately that's what these laws were designed for and it was a great move it restored investor confidence the market started going up because everyone wanted to buy these shares of stock now and and it sort of continued up until this day which is why the US markets are so strong in first place so sometimes that tragedy can actually be an opportunity to build something stable strong and better right so so anyway let's keep going but the last piece to ensure that you're well aware of the risk of investing before you get involved so the other reason that they create these laws was to make sure that investors were not you know sort of led to believe that investing was risk free or that it was all going to work out and that they were definitely gonna make money that's a problem that I've run into as well when I talk to people about things they invest in you know I tell them I say look make sure you understand that investing doesn't always work out it's like basketball you could be the best player in the world but you're still gonna miss some shots right so with investing it's very important now that those who are seeking to raise money from the public ensure that the public is aware that investing comes with risks anybody who invest who isn't prepared to possibly lose some money should not be an investor so one of the things that they did was they define criteria for people to become qualified investors that means that basically that you are ready that you're really about that life that you're really ready for the risks that you're about to incur because a lot of people say they're about it and they're ready but the minute they start losing money they start freaking out and going crazy and feeling like they were duped alright and that happens all the time you know that's you know in fact when Ephraim Taylor a guy who's actually in jail right securities fraud when Ephraim Taylor would go to churches and he would get people to invest in his company which the best defined them to be a Ponzi scheme um you know but when he did that you know the other double whammy he from was running into as he was running into a lot of first-time investors so what really put the spotlight on he from was when the investments didn't pay off the way that he had promised when the market crashed and what that did was that caused a lot of investors to get nervous and want to get their money back so I don't know if each room had a kansai scheme or not that's what the feds say and and I guess that's that might be true I don't know he's in jail court right now but even if he didn't have a Ponzi scheme even if he'd had a legitimate investment you know in place uh he still would have had to deal with investors who would have freaked out because things just didn't work out and 2008 things didn't work out but that doesn't mean investing is a bad strategy it just means that that particular year things didn't work out so let me keep going all right so the Securities Act of 1933 this is what they call the truth and securities laws this is basically just a law created during the Great Depression that where you know everybody was scared nobody wanted to invest anymore everybody wanted to run away from the stock market so it was designed for a couple of purposes a couple key reasons one to make sure that investors receive adequate information about their investments you have to give information remember I told you that one of the key factors in investing one of the most important variables in wealth building overall is information people who have information win Negroes who read books are going to do better that those who refuse to read books so ladies if you marry a man and he says well I don't read books I watch TV then get rid of him and go find you a man who will read a damn book because the keys to damn near everything that you ever want to know in the universe are in a book so the same thing translates into financial theory information is power those who have the information first usually win those who have the most accurate information usually win those who have the most information usually win so it's so basically this law was designed to make sure that investors have adequate information about anything that they invested when you don't have information that you are a victim of what is called information asymmetry asymmetry is basically the opposite of information symmetry symmetry is bound that means balanced and equal right you know like slice down the middle 5050 right asymmetry means that you have a lot of information I have very little information which means ultimately if anybody gets screwed it's probably going to be me because you know more than I know about this investment and that's a serious problem and so uh in fact uh it makes me think about a time where I invested in this then this movie I was working on with this guy and we got into a big fight this might mean that long ago y'all know I still like to fight with people they make me mad so I was fighting with this guy because every time I'd ask a question to get transparency on my investment he'd say well don't you worry about that I mean well let me talk to the editor of the film I need to ask him some questions well don't you know don't you worry about talking to the editor also who is the editor well no don't worry about that I got that taken care of no no no no no no no right now you're victimizing me because you're giving me a lack of transparency which makes me not want to invest anymore and you're not and you're you're victimizing me with information asymmetry which means you know all the moving pieces you know where the money's at you know who's doing what and you're not sharing that information with me so so if you want to think about that you know another real-life example is when you know even in relationships if if you're asking your partner all these questions about you know the finances and and they're like no I don't worry about that I don't worry about it baby I'm not going to tell you that I'll you know I'll tell you later or whatever but they're being sort of they're withholding information and that is that's a risk factor for you because a lot of people get screwed in their marriages because of information asymmetry they get screwed because they say well I didn't know what was going to finances because my husband handles all the money well no you should be able to at least look over his shoulder so you have some type of transparency but then also the relationship will work primarily if there's trust so if you don't have trust then what's going to happen though is that that lack of trust will deteriorate from your ability to build together because you'll be sort of taken away and challenged in every single decision and and panic and every time something goes wrong so ultimately trust and asymmetry are really important aspects to any sort of economic relationship so here let me keep going the second reason that the law was created was to eliminate there were lots and lots of companies that were pretty much screwing over people remember I told you that in America wealth tends to transfer from those who have who are financially ignorant to those who are financially intelligent from those who are disciplined disciplined to those who are more disciplined from those who have a short term view to those who have a long term view and then it also trans trans it transmits from those who have less information to those who have more information so basically a lot of the the companies that these founders of these companies would take advantage of people who just didn't have any financial intelligence who didn't have any information about the company and in fact in America to this day the people that are taking advantage of the most typically they tend to be senior citizens senior citizens will get you know a phone call from somebody tone this investments gonna be the greatest thing in the world and there's something about being a senior citizen that makes them a little more gullible a little more vulnerable and next thing you know these said the senior citizens are being ripped off well fortunately we have securities laws in place they go after most of these people but it still doesn't catch everybody so anyway moving on the Securities Act of 1933 sort of required basically that all publicly traded companies have to give the following information one they have to describe the company's business and properties you got to tell your investors everything that's a rule in wealth in my opinion that should be applied to everything if it's your money you have a right to know if you made an investment if you are a part owner you have a right to know the properties the business the the way things are being done the market rate all of that a description of the Securities being offered for sale you know what kind of security is a stock or a bond how do I get paid how does how does this work how its laid out information about the management of the company who's running this company right who's running this company you know if you have you know money if somebody's asking me to make an investment one of the first thing I want to know is what was the management team so if you come to me and you say oh I've got this board here are the BIOS of all the people on the board that are gonna be making key decisions then that gives me more confidence when I make the investment but if you just say all boys just give me the money and I'll take care of the rest it's gonna be all right I have to have a lot of trust in you to make that kind of investment also financial statements certified by independent public accountants that's really important because it's very easy to fake the financial statements what was interesting was even during the Enron scandal in the mm so are you old enough to remember that the financial statements were actually certified by CPAs CPAs actually signed off on this thing was author Anderson signed off on these statements and but Enron was still lying and Enron was really cool in a fast one and so a lot of people got in trouble in the Enron scandal because well basically Enron was doing was they were pretending to be doing well when they weren't doing well and remember false information can prop up a stock price but it's like a balloon as soon as the real information gets out there just pops the balloon so as soon as people found out that Enron really wasn't worth what they said they were worth the stock price plummeted to almost nothing because the company kind of descended into bankruptcy and what you saw unfortunately was a lot of people lost their retirement savings as a result of that now the interesting thing about Enron dome is that those who lost everything as a result of the inrun scandal had made one of the most fundamental mistakes in investing which is due to a lack of diversification you know you never put all your money in one basket you never do that and a lot of you who are becoming entrepreneurs just know that once your company starts to succeed and you start making money a lot of your wealth is gonna be tied up in that one business what you want to do at that place you want to spread your money out and diversify so that your money is in a multiple places because believe me you will get hit you are gonna have something that you invested heavily and that isn't going to work out and you got to always be thinking about that Plan B Plan C plan D you never want to just focus on plan a as the plan that's gonna get you through everything right when you do you end up like a lot of these celebrities who are doing really well because they got a high they got a great job and they're making a lot of money and then they lose that job and they have nothing you don't want to be in that position all right so let's keep going exemptions exemptions for registration companies that don't have to register with the Securities and Exchange Commission are private offerings to a limited number of persons or institutions so if I'm gonna sell stock in its a private group then I may or may not have to register with the Securities and Exchange Commission because I'm not doing sort of a public outcry I'm not sort of calling out to the public and saying hey I got these shares for sale anybody want to buy it don't ever do that if you ever want to race you know get investors for your company never like get on Facebook and say hey everybody I'm raising money you know for my company you want to be an investor that can get you in trouble with the Securities and Exchange Commission so if you want to be exempt from registering one way to be exempt is to make it a private offering to if the offering is of a limited size my believe is about five million dollars a year so if you're not raising that much money that's another thing that can can exempt you so if you're not raising much money and it's private then you can stay off the radar of the Securities and Exchange Commission also interest state offerings where you're just offering the Securities to people that are in that state what happens is you avoid what are called blue sky laws that exist in multiple states one of the biggest challenges for raising money in the traditional way in the stock market or getting becoming publicly traded is that every single state kind of had its own regulations to protect its investors in that state so if you're raising money for people all throughout the United States and you got to worry about whether net your compliance in Alaska are you compliance in Texas are you compliance in Delaware so the blue sky laws kind of complicated things but there were federal laws that were designed to kind of Trump over the blue sky laws and also President Obama one of the great things that he did was he actually made a little bit easier to raise money through some axes I'll tell you about in a second also securities of municipal state and federal governments they're kind of exempt from this registration so they don't have to follow the rules in the previous page these are four categories of securities that can kind of avoid all these issues that we brought up before now the Securities Exchange or the Securities Act of 1934 this led to the creation of the Securities and Exchange Commission which is one of the most recognized regulatory bodies for stock trading the SEC serves a good purpose I believe in the markets in the sense that they just they monitor everything they monitor all the traders and make sure nobody's cheating they're the ones who set more of the Stewart to prison because Martha Stewart was trading on information that's not available to the general public so they're pretty good they actually do a decent job the SEC basically was given its power within this act to regulate and oversee brokerage firms transfer agents transfer agents are we'll talk about that a little bit later but transfer agents are the companies that keep up with who owns your stock so if you own a thousand shares and you sell them to me well the transfer agent is the company that keeps track of all that like who actually owns the stock you know based on the last transaction in agencies that they clear all the transactions that are between the buyers and the sellers and self regulatory agencies like of the you know they're the regular tape that can deregulate the New York Stock Exchange the Nasdaq the the Chicago Board of Options Exchange the financial institution regulatory authority etc so they kind of sort of oversee all those markets basically that's kind of what it's saying it's sort of like look if you're on the NY I see you do something crooked you might get a call from the SEC now which publicly traded companies have to comply with the public with the reporting requirements well basically any company that's publicly traded that has more than ten million dollars in assets and has more than 500 investors these companies have to file annual reports with the Securities Exchange Commission and you can find these reports publicly in what they call the Edgar database so you can actually go in and look at any company's annual report encourage better I encourage you to do that like I encourage you one day you just say okay I want to look at Disney's annual report or a Disney's report to shareholders if you own stock like on your apps like stash acorns and Robin Hood which I told all you guys to obtain to get at least one of those apps and start investing everybody who comes to my class should be investing a little bit in the stock market I don't give you invest in ten cents a week I need you to invest because that's just just as it on GP like being an investor we raise investors and owners and bosses in here I don't want anybody hanging on to that that's the slave talk I'm just gonna wait for my paycheck and that's gonna be here I don't care if you can only invest five dollars a week just do it just so you can know what it feels like to be an owner of stock okay so if you're not an owner stock yet get one of those three apps acorn stash or Robin Hood so you can kind of just be a part of that process and once you get in there you just slowly increase over times whatever the amount of money you might spend on fast food going to the movies or anything like that make that a part of your culture investing should be a part of your day-to-day week-to-week habits it shouldn't be something that you do on special occasions or just once a year you should do it as regularly as you get your hair done or as regularly as you go out to eat or regularly as you go to the movies right you should never do you know go to the movies more than you put money in your stock portfolio okay so just make sure that you're balanced out in those two things okay so let's keep going so also the other areas regulated by the SEC from the Securities Exchange Act of 1934 are proxy solicitations of what are proxy solicitations these are basically times where you're getting your shareholders to vote on stuff right one of the things that happens when you are an owner in a company as you have bolts you have the right to vote on what the company is going to do next you have a right to vote on you know what happens with the Board of Directors you know things like that and the SEC monitors these proxy solicitations so basically they have to approve the information that you're sending out to your shareholders so they're like look we don't want you lying to your shareholders we want you running a game on them you need to get that approved by us before you can send it out okay so that's really important they monitor corporate takeovers there was a time this was back when Donald Trump's heyday actually when he was one of the big captains of Wall Street back in the 80s hostile takeovers were everywhere where people would just go buy up other people's companies without permission and it became this crazy game this really big thing and so effectively you know they just said okay this is too much like the wild wild west you know investors are are mad because people are coming in and just buying up you know all the shares in the company and taking the company and chop it into pieces the workers are being screwed because there might be a corporate you know some sort of corporate pirate who sees that you know look at this company on the market it's worth a billion but if I chop it up and sell all the pieces I can make 1.5 billion so they would go and do a leveraged buyout which means basically they go borrow a billion dollars by the company selling your four billion sell it for 1.5 billion and pay off the loan and then pocket the other half billion dollars there are a lot of people that made their money like that if you want to see examples of that go watch on movies like Wall Street we had you know characters like Gordon Gekko Charlie shames and Michael Douglas's in it you know that's all about that whole corporate takeover era barbarians at the gate is another interesting book written in the 1980s all about that era and how these buyouts used to take place well the SEC stepped in and basically made rules that said look if you require more than 5% of a company shares you've got to report that information you cannot do it in secret and so that kind of killed a lot of the whole corporate takeover activity where basically now you can't sneak up and buy a whole company once you get five percent you have to let the public know that you're doing that and one of the tricks Donald Trump used to use back in the day was Trump would go and start buying up a lot of shares of the company and whenever he would start buying up a lot of shares people would say oh it's reported that Donald Trump is buying all these shares and so the price would go up because people will say oh it looks like he's planning to do a buyout and when companies would get bought out they would have to usually pay a premium which would push the price up so basically the price of the stock will go up like let's say it's 50 dollars a share might go up to 75 because now everyone's anticipating based on this information that you know Trump is gonna make a takeover bid on this company so the price will go up and then Trump will go sell his shares so Trump was kind of one of the original pump-and-dump type people but the thing was it was all illegal because he was it wasn't like he was you know telling everyone like oh the price is gonna go up or go buy these he didn't say that he just bought the shares and everyone would they would push the price up because he was buying it and then he would go sell at a profit because everyone would see the value as being higher than what it was because they thought he was gonna make a takeover bid so it was kind of a pump and dump um that's not the illegal kind that was actually quite legal the illegal kind is the kind that like on the rapper 50 cent it were 50 cent bought a penny stock and then he went on his Instagram and he told everybody to go buy the penny stock and the stock price went up and then 50 cent allegedly according to the accusations then went sorry selling he shares to make money from the fact that everybody wanted to buy it because he owned it right so that kind of thing you can't do that you can't do that at all um so anyway let me keep going um in case uh in case you guys don't know make sure that you just sort of write this down some of you asked about this yeah if you want to know about the events dr. claw Dennis and I are doing in Chicago and st. Louis in Dallas you can go to dr. Boyce Chicago dr. Boyce st. Louis dr. Boyce Dallas we're also going to Atlanta and some other cities and you can get a pair anomic certification right there on the spot right from dr. Anderson you can also meet me in person we have up the stock market class we're showing three of our movies we have three movies that we're releasing through walkins films one is really just off the chain good it's actually all of them are very good but what the one I'm most excited about is called the melanin code directed by Marcus small it's a really good movie pricing in the trailer line another one is democracy a black American Horror Story we spend two years making this film it's an awesome film about the legacy of American politics and what that's doing to black people and then the last one is it's called raising a black scholar which is all about home schooling and how black people can take over the educational process for their children you know we complain about the public schools and what the schools are doing wrong I'm not a believer in complaining I'm a believer in fixing it and doing something about it so one of the things we've done this year is we've invested heavily in supporting black and African center school all across the country we just wrote a $5,000 check to the freedom home Academy in Chicago Marcus Klein is going to use that money to start building a school in Atlanta and we're gonna actually talk to Marcus about helping them expand all throughout the country we want to have our own school systems and I know that we can do this that's our vision and we're going to implement this we're going to make this happen and so what we need is we need you to kind of see what we're doing and decide how you want to buy into this if you want to be a part of this and I want you to consider putting your child in a black school because they will give your child a superior education and they will also give your child the most important ingredient which is love and they will also train children to be strong members of the black community we're not training children to integrate into another community we're training to be strong in black and to do business with other communities but not so much try to water themselves down by hoping that somehow if they turn the lights out no one will notice that they're black so those are some of the things we have going on that's want to make sure you guys know that we're not sitting around twiddling our thumbs we're working on behalf of you every penny that you're spending on your classes is going right back into reinvesting in the black community we're getting a sign in the lease our office in Philadelphia we're gonna have a campus there whenever campuses and Atlanta and Louisville in Chicago in Los Angeles in London all around the world and so you know when you invest when you join the black business school that's what you're supporting that's what you're a part of and and what we ask is we're not asking you for the same amount of money that you put into that white university that did they gave you that may or may not be worth anything or the school that gave you a bunch of debt we won't give you any debt we'll give you a superior education and we're all it's all done at a fraction of the cost the one thing that we don't do is we don't we're not here to teach you how to go you know get a job you know there are people out there that can teach you how to go work for Best Buy or Starbucks or chick-fil-a or you know IBM what we do is we teach you how to invest so you can own stocks and bonds we teach you how to invest in real estate so you can own property we teach you how to start businesses so you can run corporations we teach you how to do business with black people we teach you how to educate your own children we are our own economic system and we're doing this very very well we have about 60,000 students now in the black Business School we're going to be in a hundred thousand students by the end of the summer and and that's what we're all about that's what we do and I want to make sure you guys know that as you decide you know how to invest also last but not least we're the only black business school in the world we have the only Bible School in the world for children our black millionaires of tomorrow program is designed to Train eight-year-olds like their college students if we trained you know a million eight-year-olds to be as financially intelligent as college students that's the game changer for black people that's how black America moves ahead in the game imagine if your child gets to the age of 18 and they have more economic until they've been they've been you know educated by you they've been educated by black people they've been taught black history they've been taught black economics highest levels and they've been given college level training on investing or real estate on entrepreneurship there is no way that child will be a victim there's no way that child ends up in the unemployment line there's no way that child feels that they're not able to compete in this world what happens if that child becomes an owner that child becomes a boss that job becomes an economic mover and shaker so with the black millionaires of tomorrow program that's what it's designed to do we have several modules broken up into pieces all of our campuses are going to have entire sectors develop or focus solely on educating the entire family on wealth so what we're going to have in Philly for example is going to have the parents come in and with their kids and the parents will be in one room being trained at the highest levels the children will be in the other one will be a trade of highest levels and then they can go home in economically strata as a family and in this and this is I know this works because this is what our family does and that's what I want you for your families as well this is the game changer this is how we're going to win this is why you don't see me sit around worried about affirmative action or or the Democratic Party and also the stuff because this is the strategy to put us ahead of the pack so anyway let me keep going alright so inside of training another thing that they regulate is insider trading you know what we know what happens when you have an investor who has more information than another investor where you have that information asymmetry sort of pop up well the insiders clearly have an advantage so if I am the vice president of a company I'm clearly gonna have more information than a regular investor who's out on the street well these SEC makes me register my trades it makes me tell them when I decide I want to buy and sell shares of my own company stock and I have to explain why and also when companies have insiders that make those trades they're not illegal but what they do is they they usually make an announcement you know like if Mark Zuckerberg unloads a billion dollars with the Facebook stock but Zuckerberg is gonna tell the public why he made that trade because if he doesn't release the information then the public will infer what they think betrayed means and that may not work out so well for Zuckerberg so Zuckerberg might actually impact negatively impact the price of his stock by not you know leading people or helping people understand you know why he made the trade he may have sold the billion dollars worth of stock just for what they call liquidity purposes he may have just sold a billion in stock just because he didn't want to be overly you know overly invested in one place you know so in that and that's a legitimate reason but if he doesn't tell anybody then no one will know so ultimately the Securities and Exchange Act of 1934 regulates how insiders are allowed to unload their shares when they can unload them what they have to tell the public all the good stuff so some other actually should know about are the trust indenture Act of 1939 which applies to the bond markets the Investment Company Act of 1940 which regulates mutual funds the investment advisors Act of 1940 which regulates those who give advice now pants in 1939 1940 1940 and then and then you have this 60-year gap oh you know where there isn't much significant regulation or that 60-year period but all the way up to the sarbanes-oxley Act of 2002 and so it's interesting what I want you to think about is this pay attention the these all these other acts sort of popped up right during the Great Depression right after the crash right when everybody's panicked why well because regulators when something happens and the public gets scared they start making laws well sarbanes-oxley is 2002 so what happened around that time well you had a 911 that scared the hell out of people right the market just plummeted in 9/11 but smart investors went in and bought a bunch of shares on 9/11 right um on which I mean I'm not saying you should profit from death I'm not saying that at all but if you're just thinking about you know the financial moves investing around 9/11 was a pretty good idea right also around that time is when you have the inner on scandal so the sarbanes-oxley Act look at that it regulates the public accounting information and and so this occurred right after Enron because they said my god what's going on these companies that we trust you'll be these accounting firms that we believe in have been lying to us so basically they said we need to regulate them a little bit more so regulation is interesting regulation is you know it's kind of like um you know like a teenager getting rules from their parents you know like like the parents are gonna make more rules when there's a tragedy like if you wreck the family car then chances are you're gonna get grounded and they're gonna set brown rules on what time you have to come into the house but if you get too many rules it can kind of bog you down right so that's kind of what the wave regulation EPS and flows when when things are going really well and everybody's happy and the markets are taking off there aren't that you'll reg the regulators like okay we're gonna sleeve along with your little party you know keep going but then when there's a crash when something bad happens the public starts demanding you know accountability and they demand these protections and next thing you know they start making laws so the consistent debate that happens in Congress is you know are these regulations good or bad if you ask the Donald Trump's of the world and you ask the fat cats who make a lot of money on Wall Street they're gonna say regulations socks regulations bad we don't need regulation we have too many laws right that's what the Republicans say that's what the Trump's say that's what the billionaires say and sometimes they're right sometimes they're wrong because here's the interesting thing so while they're certainly asking for a lack of government intervention when things are going well what happens when they get out of control and the entire economy is about to crash well these same Republicans who just a year ago were saying we don't want any government intervention they're showing up to the government saying sir we need you we need government intervention to bail us out can you please cook there less now please please and that and that's what they call heads I win tails you lose that is what I also another example when I refer to many times in class as economic immaturity economic immaturity is when you want to get all the credit for the good things you do but you don't want to take credit for the bad things you do it's like a teenager who says I'm a grown-ass man and he's living in his mama's basement but it refuses to pay rent but he's supposed to be grown so he wants to be treated like an adult who's paying rent well really he's not mature enough to be able to pay his own bills so in our house the rule was you know you'll be a grown man when you're paying bills like a grown man so maybe y'all got grown-ass kids living in your house that ain't no bills you need to tell them that no you're not a man you're not a grown-ass woman until you learn how to pay your bills because grown-ups can pay their own bills and they take responsibility the other thing too is you know you when you got that teenager who says I want to do what I want leave me alone stop bothering me and tell me what to do but then when they go do what they want to do when it goes bad you know they get there they end up in jail or whatever because they want to do what they want to do they can't you know you can't call home and call mama or daddy and say you know I need I need your help I need you to save me know you didn't ask me to save me when everything was going well so don't ask me to save you when things are bad so there are people of that school of thought when it comes to the regulation of financial markets there are people that look at these banks and they say look you know you guys were saying you didn't want any regulation and you don't want any federal intervention you don't want anybody bothering you when you were making billions of dollars money hand-over-fist but now that you have brought the American economy to the brink of ABB's you're suddenly showing up with your hand down you're you're a bunch of big gigantic big fat welfare recipients who want us to come up with a trillion dollar package to bid to save you and the hard part about it though the problem is that they are able to kind of emotionally kidnap and hijack the American people because what happens is they get to the point well I've ever heard started too big to fail too big to fail means that they're at a point where they're like yeah I know we know that we did say we didn't want government intervention but you know you don't have to save us but if you don't save us we're gonna collapse and when we collapse the hold economy is going down with us the whole economy is going down with us so then you stuck it over to the rock and a hard place you gotta save you know AIG for example angie was a company like that that was considered too big to fail they were like AIG was incredibly irresponsible AIG wanted to live the wild and crazy' life when the money was flowing they AIG wanted to do what they want to do when they were doing well but now AIG is asking us to bail them out and we have to do it because they're so big that if we let this company fail it's going to further unravel the entire economic system in the United States so the time for appropriate regulation the time they have these conversations is not in the middle of a calamity in the middle of a tragedy the time they have conversations about regulation is before things go bad you know when things are actually when things actually seem to be going well you know it's almost like you're a child like imagine if you have a child who argues with you tooth and nail and wants to do what they want to do and then when they're there in you know they're in some horrible situation like the old $5,000 to a dope dealer who's gonna show up at the house and kill everybody with an ak-47 you know you can't at that point make new rules or talk about you know like what what they coulda woulda shoulda did because now it's too late now you have to give them the money or somebody's gonna die right right but but before when you were telling them be careful stop running with those dope dealers stop getting yourself in these situations they didn't want to listen right so ultimately that's kind of the example that's sort of what AIG did to the American economy they were being warned consistently about their practices and they didn't listen until the the theater right so anyway let me let me keep going so these security laws securities laws are supposed to be theoretically designed to protect the American people from the ridiculousness that kind of happens on Wall Street the chaos you know that it soothes when the economy is going well it's never going to change that culture is never going to change then Wall Street will never be tamed right now they're paying you know billions of dollars in bonuses there they're living the fancy-free life on you know at the expense of the American taxpayer that is never going to change so what I'm saying to you black people is you can't really change it in my opinion it's gonna be hard to change it let me say I might say you can't anything's possible I I met I got into a debate with a guy from black agenda report who was telling me that he was going to end capitalism I was like well good luck with that bro I don't know I don't think that's possible right I didn't I saw what he was coming from but I just don't see us being possible but here's the thing you probably have an easier time sort of adjusting to it then you have changing it right so what I'm saying to you is that if you see that the American government is putting resources into supporting what's happening on Wall Street then what you want to do is you want to try to align your economic interests with Wall Street you know I'm a believer that you know when I invest in the stock market yeah I'm still gonna get screwed like everybody else when Wall Street engages in chaos and stupid stuff but when these companies are out you know free willing and making money hand over fist by being a shareholder in those companies by my family being shareholders in those companies you know we're doing well too we're making money hand over fist you know when Disney uses you know a lot of it's really sneaky marketing tactics to play with the minds of black folks to get everybody excited about going to see the Black Panther I wasn't offended by that because I had shares in Disney so you know it Disney does well and they make money that I'm gonna make money too right so that's what's what I think is a good strategy in terms of understand the economic system because the economic system is levered heavily in favor those who own property the Reagan era is when they started changing the tax laws to the point where workers will pay a lot more in taxes than investors workers pay 35 40 45 percent as much or whatever in taxes they pay a lot of money their money in taxes investors pay like fifteen percent or whatever I think it's a look at the capital gains tax rate one stays 15 maybe 18 percent I got a look at her but anyway they the people that pay capital gains taxes the investors their tax rate is lower than the tax rate of workers also the extent of write-offs available to an investor are far greater than the extent of write-offs available to a worker a workers main write-off is his house the interest that he pays on his mortgage that's it and so you know when I grew up without much you know financial literacy training I was always told make sure you get a house so you can get the write-off make sure you can ask it right off when I did my research I said my god the write-off I get from owning a home is it would be nice but no the right house I get from owning a business are insane I do business with my family so that means that when I go see my brother in Colombia I can write off the dinners I can write off the flight I can wrap up the hotels I can write all that off as long as we're doing business this is awesome right so ultimately what you do is you know don't don't follow the traditional model of believing that being black means that you're supposed to sit in the corner and cry that is not a productive model that will lead to black success the sit back and cry and wait for the Democrats model does not work the model that works is to say okay this is the game that's being played I showed up with a football but everybody's playing basketball so I'm gonna go trade in my football and get a basketball and learn how to shoot some jump shots and in our house we're gonna talk about basketball because American the American economic system is playing basketball and they got you playing football in tiddlywinks and no matter how good you are at that game it's gonna be hardly to win a basketball game when you are playing football so let me keep going let me let me keep digging into this okay so the financial is Dushan regulatory authority what is that well you know it's FINRA for short let me okay here we go it's a nonprofit agency it's not technically part of the government but it's important in terms of regulation its overseen by the SEC it was created I want to say in the 1970s the the National Association of Securities Dealers and another organization came together to create it it basically regulates all the brokers and dealers in the United States so basically you need the brokers and dealers to kind of facilitate transactions facilitate trade of stock and they're regulated by the financial institutions Regulatory Authority a couple more actions you know as the dodd-frank Wall Street Reform and Consumer Protection Act of 2010 President Obama signed that because again remember I told you whenever there's a big crash the regulations tend to come point out sarbanes-oxley in 2002 came out right after 9/11 right after you add you know some of that economic chaos from Enron the all those other axes the Securities Act of 1933 and 34 in 1940 etc all came out sort of around the Great Depression so around the 2007-2008 period when Obama came in and the economy was crashing that was where a lot of regulations came into place or or a lot of lawmakers started making laws or you know new laws or whatever and the dodd-frank bill comes along and that's just like this massive you know thing that nobody understands really but it basically it's good I mean the intentions are good it regulates credit ratings financial products corporate governance and transparency I argue that the dodd-frank Wall Street Reform Act was kind of built around protecting the consumer a lot of consumers felt duped by which they rightly should have felt you know as a result of what happened with the market crash 2007-2008 there are a lot of people who thought they were doing really well who had a lot of value and they're you locked up in their homes and their home values crashed because basically you had the wrong incentives in the system you had people that were approving home loans with where people literally showed up with no job and no income and they can still get a home you know get a $500,000 house why why would I do that why would I allow somebody if I'm a banker or if I'm a loan officer why in the world what I say it's okay for you to get a $500,000 loan when you have job and no income well the only way I would approve that is if the incentives are misaligned the only way I want to prove that is if I is if I'm not paying that money back I'm not gonna loan you my money if I know you have no income and no job but I'll certainly loan you his money especially it's all I'm worried about is getting a loan origination fee you see so if I know I'm gonna get a feed by getting loans approved I don't care if you pay the loan back that's his problem right so everybody's passing the buck and everybody who's an aspiring entrepreneur I'm gonna give you a little tip on how to run your business when you have businesses and you have people to work for you you must have each person accountable for one clear thing so and not have dual accountability like don't make two people responsible for something because there's a saying that says if everybody is accountable then nobody's accountable and what that is so where that played out in the economic crash of 2007-2008 is that know everybody was kind of accountable for making sure that the loans were good and the money will be repaid but really nobody was accountable because all I'm thinking about is is my feet right if you ever want to understand why people do things follow the money figure out what did they get compensated for for example college football coaches make millions of dollars a year when their players can't even halfway read is somebody schooled and so you said well why would they do that why would they let their players go through college um you know and not learn how to read my god he could throw the football and he knows the difference between the West Coast offense and then East Coast he knows what a nickel defense package is he knows how to run need to memorize play books this thing but the boy can't read well all you've got to do to understand why this happens is look at their contracts look at the incentives look at the economic incentives of of a coaches contract it'll say if you win the national championship you get a three million dollar bonus if you win the conference championship you get a 1 million dollar bonus and if you're if you win if you have a winning season you get a half million dollar bonus but if your graduation rate is above 80% you get $50,000 we'll give you 50 will give you a nice little extra little prize if you if your kids are smart but we're gonna give you the big bonus and you want a championship so what do you think the coaches are gonna do well they're gonna try to win championships and I gotta try to win so then I got trying to teach anybody read because there's no economic incentive for doing that so basically with the crash of 2007-2008 what happened was this the incentives were all off the loan officers had no incentive to make sure you could repay the loan their only economic incentive was to get you to sign on that dotted line they did not give a rat's ass if you were ever gonna repay that loan so that was the buck was being passed from person a to person B person B passing the person C person C passed on to the American taxpayer that's why you had to have this trillion dollar bailout because all these bad loans were originated because there was no accountability now one of the things that's interesting though is that anybody who had basic economic intelligence could tell something was wrong I had a friend and this was my professionally this friend was actually really good with finances but I remember when the market was going really well and the boom was happening I remember what he and his wife used to do which really tripped me out was they would go buy a house for like $700,000 and borrow $700,000 you know it did buy another house for like another seven hundred thousand dollars where they're barely able to pay the interest they wouldn't even pay the mortgage or the principal now because they don't have the money in principle they paid the interest on these loans and they would pay the interest on these two seven hundred thousand dollar houses and they would just wait three years for the values of the homes to go up to a million dollars and then they would sell the homes for a million pocket the six hundred thousand dollar profit and pay off the loan that was their scheme that was their plan that was how they operated and it worked really well until the crash until the home value started to plummet but the thing is that when it was working that was one of the things that was pushing up the values of these homes was this the fact that anybody and their mama could go borrow half a million dollars to go buy a house right and so if I can borrow any amount of money then that's gonna push up the price the price of the commodity is pretty much defined by the highest price to anyone's willing to pay for you know so for example by if I'm in a room and I option off the candy bar and I say how much of you guys willing to pay for this candy bar because the doors are going to be for three hours and I know some of you are hungry somebody else says 50 cents somebody is you know another person says I'll bid a dollar 50 another person says oh I'll bid 350 right well when when somebody bids 350 then officially according to financial theory the value of that candy bar is now three dollars and fifty cents the value of a commodity is defined by the highest price someone's willing to pay for that come on right just like on your job so if you go to your boss and you say well you only pay me 60 K and I'm worth 90 K well the only way you can prove that you're truly worth 90 K is to go out and find a company that will offer you 90 K and then you come in and you slam the offer letter down on the desk and you say I'm worth 90 K so you gotta pay me 90 K that's gonna have a lot more credibility than you Hammond and hon and saying oh I'm worth 90 cave but you only pay me 60 but nighty-night it's like Monique when Monique was negotiating with Netflix and she says I'm worth 10 million dollars you know whatever and she thinks she thought she was worth well the best way she could prove the shoes worth 10 million is to show up and say Sony just offered me 10 million but when you can't get someone to offer you what you think you're worth then some would say that proves that you're not really worth it because if you were worth it somebody would pay it do you follow me so that's why so this is a little relationship tip if you ever get mad in a relationship and your boyfriend ain't respecting you and you like you know what a whole lot of men would love to be with a woman who can cook and and who can who you know get the good loving like me and who looks as good as me all right you can yell and him and all day if he's ignoring you he's probably ignoring you because you're not presenting a credible threat the best way to get him to pay attention to you is you find another guy who offers you a makes a better offer to you and you say you know what I'm not even mad at you but I found somebody I think I might want to date because he appreciates me for what I bring to the table watch how quickly his hate his behavior changes watch how quickly he says oh wait a minute I did you're really you really are worth that much I didn't know that well now that you've proven your point that he's gonna be more responsive but if you're just talking there's only talking so at the end of the day so let's go back to the example with the Snickers bar so I'm auctioning off the Snickers bar unless saying that I have a rule that says look you can't bid more than the amount of money in your pocket so that means that the price of the Snickers which is defined by the highest price anyone's willing to bid for it is solely defined by the maximum amount of money that somebody can pull out of their pocket and pay for that Snickers bar in that particular moment right so somebody says I paid 350 no person says I'd be at four dollars so as thick as far as officials work four dollars now let's say this let's think about this now let's say that I make a new rule that says we have a lending program in in this classroom where you can borrow up to $1,000 if you need to to buy the Snickers bar what's gonna happen then and then I said there's no credit requirements anybody can borrow as much as they want you know as long as you promise to pay back and sign on the dotted line well then somebody else you know that wanted the Snickers bar but didn't have any money is gonna say well I bid $5.00 for it and somebody also say I've been $8.00 and the fat kid who had no monies and say I'd be twelve dollars so now the price of that Snickers bar has gone up theoretically because now someone's willing to pay $12 for this Snickers bar when before when there was no credit market people only willing to pay 350 or four dollars so effectively that's what happens in the when it comes to the values of homes and that's what happens when it comes to the back the cost of Education when there's an unlimited amount of money that people can borrow to increase their bid then the market price of the commodity goes up and up and up so the reason that it cost you fifty thousand dollars a year to go to college is because they make an infinite on seemingly infinite amount of money available for you to borrow to pay to go to college so you know so somebody who might have you know only spent ten thousand dollars to go to Harvard is now willing to pay seventy thousand because all they gotta do is sign on the dotted line right so ultimately you know it's same thing with the house you know when they started giving loans yeah I need about 15 minutes the missus is telling me that it's time to go eat dinner and y'all know if you're smart black man you listen when the black woman in your life tells you what you do so uh so I'm gonna have to make this quick but we're gonna do this for about 10 15 more minutes so I hope this is helping you gasp um so so ultimately the same thing with home when loans are available to any and everybody you know to borrow whatever they want and they don't have to prove that they can actually repay the loan then that's gonna push the values up even further because people are gonna say oh I really want that house I really want the house and those who have less economic maturity those who have less economic intelligence those who are who are more short-sighted in their thinking will borrow seemingly any amount of money to fulfill their desire right so that's what happens with college that's why you now you have a situation where half of all black college graduates have defaulted on their student loans because you were taught as from childhood that you must go to college to be successful that there is no way for you to succeed without you going to college so College in your mind became what economists refer to as an inelastic commodity you had to have it for any price no matter what because nobody talked to you about all the different ways you could be successful without necessarily having to go to college so you got there and they were like well you know the tuition used to be twenty thousand when your mama went to school here but now it's sixty thousand all but all you got to do is sign on the dotted line and we'll loan you whatever amount you need you sign on the dotted line and then the consequences came a-callin later on down the road right so effectively what happens with with all the student loan debt crisis which is a bubble that is going to burst eventually is going to cost the American taxpayers about 1.5 trillion to fix that issue because the default rates keep going up every year there's nothing slowing it down the only incentives are all misalign it's as much of a problem as the original 2007-2008 mortgage crisis same dynamics same phenomenon same issue same outcomes so effectively what I want to encourage you to do is to try to find ways to understand the entire economic picture people who were economically smart like Robert Shiller who just won the Nobel Prize because he understands housing bubbles so well Robert Shiller for years was saying this is going to be a problem this is going to lead to a crash the values are going way up because you've got all this debt available to people who are never going to repay that debt and here's the thing when it comes to repaying debt there are people I know who will promise you a billion dollars if you ask for but they're never gonna reap they're never gonna pay him back you know they did they'll show up and if they think a girl's pretty and that she's gonna you know give him what give him what he wants on that particular day he'll promise her the universe and if you believe it then he did you know he'll promise you whatever you want because he's never intended upon repainting so with debt and understanding of debt that is a good thing most of the time it's a powerful thing in many cases it can be a valuable tool for the building of wealth but debt without economic intelligence economic integrity economic discipline or accountability is a is is a disaster waiting to happen it's just like a bunch of guys running around proposing marriage to a bunch of women when they never intend on marry and anybody who they're gonna get divorced the first week after the wedding takes place what good is a marriage if the person never planned on being married to you in the first place or you're right so so anyway let me keep going let me let me keep on let me let me finish up these slides here so we can finish up our conversation for today don't forget you have assigned if you haven't checked out the black stock market program again if you're not in there yet you can get the first month free and the black stock market program com this neat black stock market program com there's a ton of content like this what I want you to really do is I want you to bring your kids I need your kids to know this stuff early please I'm begging you get your kids exposed to financial intelligence this will make all the difference for them because a lot of these kids today are gonna be screwed financially because they're gonna follow that same path their parents gave them they're gonna go borrow $80,000 go to school they're gonna die in debt black college graduates are seeing their generational wealth decline and if you keep doing the same thing you're gonna get the same result so it declines a little bit this generation a little bit more the next generation a little bit more the next generation you have to have a different strategy so let's keep going all right so let's take a couple more action should know about the jump start our businesses act in 2012 great touchdown for President Obama basically what he did was he kind of got rid of all the regulations and all the red tape and made it easier for small businesses to raise capital I thought that was a great move I think that the economy benefited a great deal if you would have asked me what I thought was the best move of the Obama presidency the best moves I saw from Obama was one I think he handled the financial crisis light light light like like a G he did great job you know he came through he saved the economy he deserves credit for that and then to to the 2012 jumpstart our businesses act was a huge operat opportunity a huge opening for small businesses to get off the ground those are the two things I that I love about the Obama presidency everything else I'm well I got you know you know with the Libya killed Qaddafi I'm you know I didn't like that so much right don't be going on Africa killing black leaders who are trying to create economic independence on the African continent come on man that ain't cool right you know so so honestly you know but then again I'm probably a skeptic I don't think any of these politicians really have the best interests of the American people that are I believe that you have to have the best interests of your family at heart doesn't matter who's in the White House so let's keep going so what a transfer agents just the last quick point on that transfer agents of people that kind of keep up with who owns a company stock so when companies shares trade hands transfer agents keep up with this information some companies service their own transfer agent transfer agents basically issue and cancel stock certificates they engage in transactions for the company like when the company wants to pay dividends or issue more shares during a merger or they also help shareholders I deal with lost result or stolen stock certificates so basically what I'm going to end with is kind of some guidance on what's next some things you can do next if you want to dig deeper into your stock market understanding I'm a big fan of economic intelligence that made a huge difference in my life so I recommend that for you guys to these slides this is the first of three lectures we're going to do that will prepare you for the level 3 certification the black stock market program the materials in the lectures for the level 1 certification and the level 2 certification are already in your curriculum at me black stock market program calm you can go in you can take the exam whenever you want it's automated you can sign up take it at 2 o'clock in the morning on a Saturday night and if you pass that test and you get 80% of the questions correct you will get to skip the email – you get four tries to take the test there's a minimal fee I can't remember what it's something at $69 or something like that but if you pass the test then you get the certificate sent to you and you'll be among the first to be certified in the black stock market program which then allows you the ability to do little things like to become a community facilitator you know in your own family or in your own munity to help others around you to learn invest in learning vesting principles you know things like that there are five levels to the certification which is designing one for children as well I want children to be certified in basic economics I want them certified in investing and stop in the stock market I want them certified in real estate and with them certified in personal financial planning I want them certified in entrepreneurship you will be amazed at what happens to the competence of an eight year old when the eight year old said the ATO puts on a suit and tie and says I have been certified in six different levels of investing to the point where that eight year old knows financial concepts that most college graduates don't know I'm telling you it is such a change what you're gonna see is you're gonna see that son who doesn't want to do anything who's the sin around board the reason he's Boris because he hates school he can't relate to the white lady that's teaching him from the suburbs he will relate to me he will relate to what we do you're gonna see that child we gain an extreme interest in making money these kids all want money all the rappers tell them they want money you want money more money so they want this this is gonna make them excited this is gonna lead them to become more engaged this is gonna lead them to become more active and you won't have to tell them to do it you know when I was a kid if I had had somebody put me in a position where I could make more money by learning more I would have read every single book I could get my hand on the reason I didn't care about school was because I didn't understand what school could do for me so what we want to do is connect education to the psyches and to the inspiration of children so that our kids are hungry for knowledge hungry to learn how to make more money hungry to learn how to become their own bosses hungry to be free once they get a taste of freedom they're not gonna go back to example his journey Prewitt journey Pruett is a young one of our black millionaires tomorrow she was a company called black butterfly beautiful you check it out his black butterfly beautiful calm journey 17 about to go to college journey makes more money than most adults already before she goes to college and she's on her own boss and she only works about four or five hours a week when she wants to and she makes more money than most people make by going to work for 40 hours a week she's gonna be hoping to pay a significant portion of her college expenses another one is Ethan Ethan I cameras last name Ethan came to the all blind national convention he started a clothing line that made $3,000 in one hour $3,000 in an hour Ethan's 13 years old so basically what I'm trying to say is that you know to deal with the student loan crisis which is really what it is for black students it's a student loan crisis but yet and half of all black college graduates have default journalists student loans most of them have a negative net worth most of them have bad credit mostly we're gonna die in debt most of them are going to see a drop in their family wealth as a result of them going to college they were the answer to this crisis is twofold one you must reduce the amount of debt that you need in order to go to school that means cheap picking lower cost schools it means investing in things like tutoring programs so you can get scholarships it means sort of thinking about how much debt you take on them – it means increasing your income so that whatever debt you incur you can repay that income well the only thing better than having one good income stream it's to have three or in the only thing better than having three is to have four and so by learning the basics of entrepreneurship and investing in real estate things like that you go from having a mindset that says I'm gonna have one stream of income in my life just saying I'm gonna have three four five six seven eight you know I'm a 1 2 3 4 5 6 7 8 it was it wasn't m's in my bank account whatever that song is these rappers rapping about money half these rappers are broke camp these rappers don't have any money but they love rapping about money but they don't need them they know nothing about it make sure your kids when they're rapping about money they're rapping about what they know about money and it'll show up in their bank account so let's keep going the lectures for the levels 1 and level 2 certification can be found you go to the black stock market program calm and use your login you can find the lectures for the levels 1 it's levels level 2 certifications the rest of the lectures for the level 3 I'm gonna do I'm gonna make an announcement to you guys we're going to do that also you can look into the certifications for our kids by checking out black millionaires of tomorrow calm that's black millionaires or tomorrow calm we actually converted that a little bit well first it was a sort of a one-time fee you had to pay and so in order to make it more affordable for more parents what we did was we broke it down into a monthly component where you can pay monthly if you want which a rate that's about one-third of what the what this standard fee would be for the entire program so that way you can pay it in pieces if you want and it doesn't cost you more than say going to get your hair done and going to take your family out to see the Black Panther so but the difference is that it'll make a difference for the rest of you like literally the stuff that you teach your kids when they're young is the kind of stuff that your kids are gonna remember when they're 40 when I was 33 years old and I went on a cruise and and I was on this cruise ship in the middle you know midnight New Year's Eve like 2004 and I remember I that was the night that was the moment when I realized that everything my mother had nagged me about was actually good for me you know when I thought about all the friends I had growing up you know who whose parents raised them different and I made me feel bad made my mother feel bad because she pushed me so hard you know I thought about how many of them ended up in jail made them ended up on drugs made them are not happy made them hate their jobs manda made their lives and many of them look at my life now and then they say well you really made it how did you do it you know and then I think I thought about it I said my god my mother who gave birth to me as a young teen mother in the projects she didn't just get lucky she had one son there was a professor a daughter that's a now and MD and another son who went to an Ivy League school and it's interesting because you know you don't get those results by accident you know you don't get those results my look it was because my mother when I was a kid she put us in all these programs and she would talk to us about delayed gratification and she would say things to me like yeah they call them nerds when they're nine but they call a millionaire's when they're thirty she would say little things like that and my grandmother would talk to us about investing and managing your money and being financially intelligent things like that and all those lessons kind of folded into what I do right now so I want to encourage you to give your children those lessons so that your kids don't end up growing up feeling like economic victims victimhood in a lot of cases really is a choice it really is a choice and people get mad when I say it but I gotta tell you the truth it really can be a choice you know so maybe help them make the choice of avoiding victimhood as opposed to choosing victim when so that's why we offer what we do today so whatever you do whatever you learn and bring your kids bring your family share it with everybody because this is this is what's gonna make the difference for black people this is the plan this is the solution this is what will pull us ahead so I'm gonna hang up guys I gotta go I've been called a together so let me go and and do what I'm supposed to do so it was real talking to you guys I loved every single one of you if you haven't signed up for the free class at least make sure you sign up for the free class at financial Juneteenth University comm that's the nature Juneteenth university comm also if you want to learn more about me at dr. claudia insane coming to Chicago and st. Louis stuff like that you can go to financial Juneteenth parinama comm that's financial Juneteenth parinama comm so take care guys I'm out of here have a wonderful day ah Cecil

Reader Comments

  1. Dr. Watkins what you're describing in terms of returns and the stock market rise from Obama Presidency vs the first year of Trump Pres. is just not true. Under Obama's presidency which starts with the Great recession the Dow was at 6547 pts. In a 10 mth period the Dow rose 61 percent to Trums 35 percent in 1 year. When Obama left office the Dow was at 19,827.

    Trump inherited a growing economy.. and yes the hype about this very corporate friendly presidency did help grow the Stock Market quickly, as business were looking forward to the tax cuts and loosening of regulations. But there's no need to use hyperbole where Trump is concerened. Trump inherited an almost 20,000 pt DOW and it shot up to 26,000.. but now the stock market is correcting..down to 23 – 24,000 pts.

  2. We are beyond fundamentals imo, the robo trades, predictive ai, fibre optic vs retail buyers and mega houses can control the market tight. Best you can do is ride the coat tails and jump off before they do. Much more casino than blue chip these days.

  3. This discussion sounds like a wind up to an investment opportunity that Watkins is going to cosign. Given Watkins has no investment record I'd be really concerned.

  4. Unfortunately Dr. Boyce seems like he doesn't know the ETF creation and redemption process. To keep it short when the market goes down there are folks who need to sell to avoid massive losses. Unfortunately The individual stocks black folks like are all the stocks which need to be sold. This is what Dr. Watkins needs to discuss.

  5. I lose more than $1-3 million on these difficult days unless I catch a short correctly. I wouldn't worry about the down days if you are young. In fact you should wish for them. If you find yourself bragging about how well you are doing sell. You know who you are. Also something the good doctor doesn't talk about instead of talking about the derivative market — BE the derivative market. Its a great way to make money.

  6. Glad you brought up the point about Gates telling the Nigerian Market that no one is going to trust investments there because of lack of transparency, security of securities or governmental oversight backed up by law enforcement. Nigeria and other African nations seemed to never have structural plans to combat the image of being the ultimate definition of scam and expect everyone to overlook it. This needs to be vital in moving forward in the financial growth

  7. To ppl who are new to it…apps like betterment and m1finance you can invest $5 dollars a day. (I think stash and acorn too ..never used them) robinhood is more of doing your hw and just buying stocks (even tho i think they're working on it) i use betterment and robinhood ….oyeah and read up on pattern day trade …i almost got caught outthere 😂😂

  8. Based on my analysis… rising Bond yields have pretty much wrapped it up for this equity market cycle ,and once the ten year treasury yield climbs beyond 3% into 3.25% that will be all she wrote… especially with the Yuan oil futures contract channeling demand away from US sovereign debt instruments. What says you?


  10. Not selling anything, but if you have any questions regarding the stock market or want to watch what a professional is doing during these times: twitter: @rwalton22, blog:

    (IMO [not financial advice], I'd hold back on any investments over the next 1-2 years. if you've been gambling in the stock market the past few years and have been lucky, I say take your chips and walk away now).

  11. I'm here trying to learn something. someome plz post these studies that say your economic choices are whats makes you poor/wealthy. Because Ive been googling for 10 mins and I cant find anything that says that…all I find are studies that say race/gender/your parents educational attainment and your personality are the main factors that will determine if you gain wealth. I'll post just one example of the dozens of studies I'm seeing that says this. Please post some studies that say race is NOT a factor in obtaining wealth. No words plz..just post the link(s)

  12. Wouldn't it be wise to start investing now since the stock market prices are dropping? Be patient, buy low and eventually sell high when the stock market improves?

  13. Do you think its going to go back up?? I own n buy stock in the company i work for and i saw our stock price drop from 210 three months ago to 167 now and i am worried

  14. The stock market is totally manipulated by The FED. And Wall Street. Its overweighted with derivatives the jig is up and fed is shrinking its balance sheets and selling stock and not reinvesting..IT'S GOING DOWN !!!

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