# THE NEXT 42 DAYS WILL CREATE “LIFE CHANGING” WEALTH **Channel:** InvestingWithBrandon **Source:** https://www.youtube.com/watch?v=aAZrFwp-TG0 **Transcript page:** https://www.withtranscript.ai/video/aAZrFwp-TG0 ## Chapters - 0:00 — Why the Market Dip Looks Temporary - 3:11 — Energy, Geopolitics, and Inflation - 5:46 — Earnings Growth and Market Valuation - 11:39 — Best Stocks, Trades, and Final Thesis ## Transcript **[0:00]:** Right now, there are some major catalysts that are brewing for the market that are likely going to make this little dip that we got the last couple weeks. One of those things where you're going to wish that you maybe bought some more. We're going to talk about companies and option trades and why the market dipped and why the market is likely going to rebound by looking at the cold hard data, the data that anybody could understand, the data that is not debatable. It's just the data. And by exiting this video, you're likely going to have a pretty solid thesis of what to buy, why to buy it, and what in the heck is going on in a very simple way, right? Let's start off right here on my brokerage account. The all-time high for this brokerage account was somewhere around 1. Upper 1.6 range, lower 1.7s. **[0:41]:** I am down a little bit from all-time highs, but to be very clear, I am down less than the Nasdaq on a percentage basis because I allocate the good companies at good prices and do options in a responsible, reasonable way with ratios always in check. So yes, you're probably experiencing volatility in your portfolio too, but take a look at your beta, your volatility factor, and understand, hey, if the Nasdaq is down 15%, which that's roughly what it's down right now, how much are you down? If you're down like 40%, you got to fix your portfolio. I'm down less than the Nasdaq right now on a percentage basis. And again, to be clear, when the market was up here at all-time highs, the market was simply a little bit hot, right? That is justified. That is normal for the market to pull back a little bit because very quickly, if I plot the earnings per share growth line, this is roughly where the EPS growth line is at for the Nasdaq. **[1:29]:** So you could see that this is the fundamental value-ish for the Nasdaq. When the market goes below it, returns going forward look good. When the market goes above it, returns going forward look bad because the market is expensive here, the market is cheap here, and the market is also a little bit undervalued right now. But think about it really quick. The sentiment here is the worst. The sentiment here is the worst. The ROI usually looks best going forward from when sentiment is bad. And when sentiment is very good up here when like, euphoric and what color Lamborghini are you going to get, it's kind of the worst possible time to invest. Okay. Let's talk about a couple catalysts that are brewing for the market on the bullish side right now. Now, the first thing I want to look at is this, and I get it. **[2:14]:** We look at this literally every single video. I get it, but just roll with me on this really quick. We are now post midterms. We're just about seven days-ish post midterms. We're somewhere in this category right here on the right side of this vertical black line. Look at the red line. This is the midterm line. We are in the midterm year, right? Notice how after midterms, the market doesn't usually do anything until 42 days after midterms. It hasn't been 42 days. So maybe we should expect the rest of November, maybe December as bumpy, as opportunity to get our portfolios allocated to these opportunistic setups. And then hey, if the chart pans out like it usually does since 1970, every single time this is the average right here, we should have a good 2027, at least a good start of 2027. Based on the data that we're going to go through too, I think that's actually going to pan out to be true. **[3:07]:** So expect volatility, but that volatility is likely going to be opportunity. **[3:11]:** Okay. Take a look at this headline right here, and this is actually true. I don't just go read headlines and say, oh yeah, this is what's happening. I'm just going to blindly say that that's right. I double checked this out. Russia and Ukraine are holding talks right now, literally right now, as I'm recording this video. What does that mean if we get a deal with Russia and Ukraine? It's actually bigger than what most people think. And if we go take a look at this thing right here, this is energy. This is oil. Let me get myself out of the way. We are seeing oil in the last few days or weeks dropping like a rock. Why is that? Well, maybe we get a deal with Iran. Maybe we get a deal with Russia and Ukraine. Oil is now down about 20%. Why do we care about that? **[3:51]:** Because oil is like the main thing that's driving inflation right now. And why do we care about inflation? Well, if oil falls, inflation falls, and then interest rates could fall. And then usually when rates are lower, the stock market does good. So that's kind of how it trickles through. Now the reason why the Russia-Ukraine war matters so much is because there's a lot of oil refineries in Russia and Ukraine. I'm not getting into the weeds. This is big needle mover stuff. There's refineries. And when refineries get blown up or destroyed, it takes months if not years to bring them back online. So if we could get the Russia-Ukraine thing to settle down or at least get a ceasefire, energy prices are likely going to continue to drop. On top of that, we have US and Iran negotiating, potentially getting closer to a deal. And there are now rumors that Iran is willing to make concessions on their nuclear program, which seems to be the main reason why this whole war even started from the get go, right? **[4:46]:** So if we could simultaneously or similarly time frame here get a deal with Iran and get a deal with Russia and Ukraine, energy prices are likely going to drop like a rock, like potentially lower than what they were before. And when and if that happens, that's likely going to be very very bullish for the stock market. Now just to prove this very very quickly, we just got CPI inflation data that came out. You can see this line right here, energy prices. Now to be clear, this year over year column, it's not here just because there was a government shutdown a year ago. So there's no year over year comparison. Point is energy prices have big numbers in the last couple months of going up. When inflation takes a chill pill because energy prices go down, again it's likely going to be bullish for the stock market. **[5:31]:** I just want to show you that there really quickly though. K. Next data. We look at this every week. And by the way, I moved from Las Vegas to North Carolina last week. So that's why I didn't make a Friday video. I did it on Wednesday, but I'll be better and more consistent going forward and we'll cover this every Friday. **[5:46]:** But this this was a report that just came out a few days ago, k? So if we take a look at Q3 of 2026, how the earnings are coming in, you're going to start to see there's going to be some catalyst that are maybe stacking right now. We got a potential deal here and here. We have this chart. We know how it kind of pans out, right? But look at this. 88% of the S&P 500 has reported earnings so far. 88% Of that 88% 84% beat earnings per share expectations and 74% has beat revenue expectations. So we're beating expectations. That's good. But how is the expectation? How is the actual growth? Right here, next line down. Year-over-year growth is 31.4% year-over-year. The average is, you know, 8 to 10%. So do you see the catalyst? Really good growth. Midterm cycle that is potentially going to be bullish. **[6:39]:** Potential deals right here and potential fear in the market that is driving people nuts right now. There's so much capitulation and freaking out and fear, which we're going to go into the companies. I'll show you this. But there's a lot of fear, especially with Nvidia. And that is just building a coiled spring in the market in my opinion. So things are building right now. Things are brewing, we could say. All right. What about the market? Is it a bubble? Michael Burry told me Brandon on X it was a bubble. Okay. We could just look at this for ourselves and we could just draw our own conclusions about it. The forward 12-month P/E ratio for the S&P is 17.7. The 10-year average is 19. We're lower than a 10-year average and we also at the same time have much better growth and a solid economy and we just have these overhanging catalysts and inflation too that are just making the market a little bit **[7:30]:** nervous, making people a little bit freaked out about what does this mean? I cannot invest until this then gets behind us. But that in my opinion is a giant mistake because when there is fear in the market that is when we want to be bullish, right? And looking at the 125 day moving average, we're still below it. It's still a decent time to invest. We're going to look at the stock sheet some trades in just a second. But I'm telling you that this is one of those events where maybe the next couple months is going to be bumpy, right? But if you zoom out and quit looking at your feet and quit stressing and refreshing your portfolio 45 times a day and just think about if I buy a good business at a good price and do options in a way that makes sense, all long-duration options, and you be patient with it and filter out the garbage noise that most people talk about all day online, you're likely going to do great from here. **[8:17]:** This is an opportunistic setup right now. Okay, fine. So, good growth, good valuation, good economy. Take a look at this chart. This is something that we have been following on this YouTube channel from day one since I started making videos, and it's a very very important chart for sure. Okay, check this out. This is a 10-year chart. The lighter line, the more bumpy line is the S&P. The darker line, the more smooth one is the actual earnings per share growth. Just by looking at this very very quickly, how many times could we say the earnings per share has fallen in this 10-year period of time? We could say once right here ever so slightly and once right here. Two times in 10 years did the market genuinely have a problem under the hood. Here and here. Think about all of the wiggles and volatility. Look at all the jagginess of the chart right here of the S&P. **[9:09]:** Only two of those times the market was justified to potentially go lower. Of course, valuations come into play too cuz maybe hey, market was hot here, came back down to fair value. Market was hot here, came back down to fair value. Market again was hot this year, came back down to fair value, even undervalued right now. My point is the headlines will scare many people. There's a lot of things to react to in this 10-year period of time, but really only here and here and maybe here for Liberation Day tariffs was really the only time that the fundamentals actually started to deteriorate a little bit. Three times, maybe two three times in 10 years, okay? Now, how could we use this chart to our advantage and simply make money because of it? Well, every single time that the market was below the earnings per share growth line, which that's what this is right here on the bottom for a 12-month EPS, every time the market went below it, the market had good **[10:03]:** returns going forward from there. 2022, market was below. Great ROI, right? Liberation Day tariffs, great ROI. Iran did basically touched fair value-ish, great ROI. Do you see where we are at right now? I know it's kind of hard to see. Let me zoom in so you can see it. We are below the earnings per share growth line. So what does that potentially imply for the stock market? Well, we have a good economy, good growth, potential Iran deal coming, potential Russia-Ukraine deal coming. Of course, nothing is guaranteed, but a lot of negativity is still priced into that stuff in my opinion. We have fundamentals that are solid, good earnings per share growth. Yes, Jensen did whatever he did and cheated on his wife and Nvidia stock is this and then what happened with China with the deal with that? Look, I'm not saying that's okay. Of course not. **[10:49]:** But Jeff Bezos kind of did the same thing. Bill Gates kind of did the same thing. And where are those stocks right now, right? Does it really matter that much? In my opinion, no. And that's also because the fundamental value of some of these companies are so cheap that all of that is kind of priced in in my opinion, which we'll talk about in just a second. Point of this chart is when EPS goes up into the right like this, if it does continue, expect the stock market to follow it, too. I'm not promising you anything. I am just saying the market is starting to get compelling in my opinion. And yes, there will be bumpiness in the short term. Yes, you will not make money every single day. Yes, next few months might be bumpy and red. But if you zoom out and have a couple year time horizon, you will likely do very well and crush 95% of people in the stock market if you could just quit stressing and focusing on every little stupid headline. **[11:39]:** Okay, let's take a look at the stock sheet. There's been some pretty big changes that happened since we looked at this last. And that's because the market's been bouncing around, right? Towards the top, these are the companies I'm most bullish on. The higher the score here, the more bullish I am. And of course, the more bullish I am, the more allocation that I will do on something. So if I'm bullish, I'll buy shares. If I'm super bullish, I'll sell puts. And if I'm max bullish, I will buy calls. That is the hierarchy of allocating in a bullish way in my opinion because buying shares is the easiest. There's no expiration date. Selling puts, you could go to strike price or even below the strike price and still make money. Buying calls, you need the share price to go up and go up fast to make money. **[12:20]:** So buying calls is the hardest, buying shares is the easiest, and selling puts is in the middle. course, of my expiration dates are one or two years out because nobody knows what is going to happen to the market in the short term. And if somebody claims they do, they're either getting lucky or they're lying to you. And just look at what Warren Buffett does. There's a reason why he doesn't day trade or swing trade because nobody knows what the market's going to do in the short term. Okay. Towards the top, Nvidia I'm bullish on. I get it what happened with this wife. I get it, the whole story. I understand the story. I think it's blown out of proportion. I think Nvidia is going to be okay. I think where Nvidia is at fundamentally and the percent of intrinsic value that it's trading at Nvidia stock is essentially 41% undervalued right here. **[13:05]:** TSM TSM stock is essentially 15% undervalued right here. So there's some deals in the AI trade, but at the same time, you don't want to over allocate to one single sector because what if something does blow up in the AI sector or what if China does invade Taiwan? You don't want to have your portfolio all in on Nvidia and TSM and Triple Q and Micron and Broadcom and ASML and, you know, stuff like that. You don't want to be too heavy in one sector. And that's what I talk about meaning keeping ratios in check. So these companies are compelling, but of course, keep your ratios in check so that you're not too heavy in one single company or sector. In my course, which 10 Days Stocks and Options Transformation Training below, I cover all that stuff, you know, step by step, but that's beside the point right now. **[13:48]:** Um S&P 500 essentially is at fair value. So I mean, think about that. That big bad drop that everybody has been panicking and freaking out about right here. It took the market down to fair value, especially on Triple Q too was more overvalued. It's now essentially at fair value. So what we're seeing is just a healthy little dip in the market to get things closer to fair value. So don't, you know, freak out and panic about every little headline about, oh man, the crashing, and bubble is popping. The bubble did crash on some or the bubble did pop on some companies, but it was deserved to pop like an Intel, Marvel, you know stuff like that. Those companies were super expensive. Okay. We talked about the Q's, RSP's, equal weight S&P essentially fair value. Micron is basically undervalued, but it's a harder company to analyze because of the cyclicality nature of earnings per share growth. **[14:35]:** I don't have an allocation to Micron. I do have an allocation to DRAM which is um a memory ETF that has Micron within it. Broadcom I think is cheap. ASML is getting closer to fair. Um Seagate is getting more compelling. Morgan Stanley, Meta, Google. So the list goes on and anything above a 75 is potentially a buy in my opinion and there's a lot more 75s on this list versus what there normally is. So the simple thesis is this. If you zoom out and you take a breather and you think about the fundamentals of your portfolio and you think about how there's a lot of things that are potentially brewing right now, bullish catalyst, Iran deal, Ukraine Russia deal, energy prices falling, inflation falling, potentially interest rates falling, good earnings per share growth, good economy, AI efficiency starting to come into play in 2027. I think it's setting up for a solid next couple years in the market. **[15:32]:** To be extremely clear, I cannot be more blunt than this. The volatility will continue. Just because the market falls today or tomorrow or the next day, it doesn't mean the thesis is broken. It just means that the market is confused and there's a lot for the market to try to price in to figure out what the heck is going on, right? So that is a video. If you got value, like, subscribe, hype, drop a comment below. It helps out a lot. And if you want to learn more about my options system, get access to my stock sheet, to me, my portfolio, my trades, everything in real time, ask me questions personally. 10 Day Stocks and Options Transformation Training below. It will blow you away a hundred and hundreds of five star reviews. If you don't do that just yet, that's okay. Check out this video right here more about how I do my options system and I'll see you guys in the next video. **[16:14]:** Keep your pants on, keep your ratios in check. The patient level headed long-term investor is likely going to be rewarded. I'll see you.