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The 2 Best Holiday Gifts You Can Give Your Kids!

Let’s begin with the bottom line.

As parents, our reason for being here on planet Earth is to pass on to our children the life skills they’ll need to succeed. Everyone talks about leaving a better planet for our children; why don’t we try to leave better children for our planet? I submit to you that two of the most important gifts you can offer them are:

Giving them the gift of your time — one-on-one.Helping them cultivate a financial mindset and money-wise toolkit to ensure their long-term success.

As children, money management may not seem to be an interesting subject for them, unless you make it so. Someday — sooner or later — these financial skills will become a necessity in their lives. Success means a plethora of different things to different people, but 99% of those definitions must be built on a solid financial foundation. Money literacy leads to future financial freedom, which in turn leads to success in life. What follows are a few thoughts, suggestions, and routines that I encourage you to embrace this Holiday Season — indeed all year-round.

It’s stating the obvious, but parents are critical role models. It’s realistic to assume that children will mimic their parents’ money habits. Act accordingly.Make conversations about money and finances a part of regular routines with your family — be it on a daily, weekly, or monthly basis.Openly discuss your own money mistakes — past or present. There’s a bonding effect that results from those kinds of upfront discussions, not to mention the learning that goes on. Be honest about the consequences of that cryptocurrency trade that didn’t go so well!Fact: children are fast learners — much more so than adults. The time you spend with them has immense leverage.Keep it simple. You don’t have to jump into explaining Index Funds, ETFs or equities. Start with the basic financial issues such as discussing saving their allowance, explaining credit cards, interest rates and the dangers of debt. My favorite: give them some examples that illustrate the magic of compounding. Then, just for fun, toss in a chat about taxes and our beloved IRS.Actions speak louder than words. Help your children open a bank account, or brokerage account depending on their age. Give them a sense of ownership when their monthly account statement arrives in the mail.Teach them to listen to money matters, financial topics, and investing ideas. Simple awareness of such topics will have a lasting and positive effect.Discuss and explore their saving and spending habits. Talk about how these relate to their “wants” versus their “needs.” Be creative. Make it fun. Be sensitive that it’s different for every person. Most importantly, don’t make it a chore or let it become a stressful issue.Finally, you can do what I did — write an investment book with your kid! It’s a stupendous learning experience. I’m being facetious, of course, but books, videos and websites such as StockCharts.com provide an astounding array of interesting topics to share and discuss.

So, I return to the bottom line. Regular one-on-one conversations with your children about money and investing will empower them with essential financial skills and tools and thereby have a positive effect on their future lives.

In closing, I have to say this: don’t expect your children’s teachers or professors to take on this responsibility. It’s all up to you, Mom and Dad!

Trade well; trade with discipline!

— Gatis Roze

BONUS: A gift to you this Holiday Season. Being immersed in Black Friday and Cyber Monday sales, I thought it only reasonable to extend to you my own December Deals.

Our Blu-Ray had been steeply discounted for those of you who might prefer to watch DVDs versus reading our book — The 10 Essential Stages of Stock Market Mastery.

The Asset Allocation DVD that Grayson and I produced is also steeply discounted. This is another great stocking stuffer for parents endeavoring to boost the financial IQ of the younger generation.

Wishing you great investing success in 2024!

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Extreme Breadth Readings Say Short-Term Bearish, Long-Term Bullish

By late October, the market conditions were dire indeed. The S&P 500 had broken below its 200-day moving average for the first time since March. Only 10% of S&P 500 members remained above their 50-day moving average, meaning a full 90% were below this key short-term barometer.

What a change we’ve seen in the last six weeks!

We finished this week with around 88% of SPX names now above their 50-day moving average, after briefly touching the 90% level on Wednesday. The S&P 500 has now made another new high for the year, ending the week just above 4700. That’s right, we’re only about 2% below all-time highs!

So are the excessively positive breadth readings in mid-December a good thing or a bad thing for stocks? The reality is a little of both.

Short-Term Upside Seems Limited

Reviewing the percent of stocks above their 50-day moving average, it seems clear that have reached an upside extreme. This indicator rarely touches the 90% level, but it has actually done so three other times in the last 18 months.

The last time we saw this extreme bullish reading was in July, as the SPX was testing the 4600 level. The next three months saw a steady decline for stocks, ending in the late October low around 4100.

Back in late November 2022, the indicator pushed above 90% as the S&P 500 experienced its initial upward swing after the October 2022 low. The benchmark pulled back for about four weeks before continuing to a new swing high in February.

The third time we witnessed this level of positive breadth was back in August 2022, as the S&P was testing its 200-day moving average from below. This was during the meat of the 2022 bear market phase, so this extremely positive reading was quite unusual. Sure enough, we had about an eight-week decline into the October low soon after.

These three declines, of 10%, 8%, and 17%, respectively, show that breadth is extremely bullish, the short-term picture actually becomes bearish. It’s all about the market adjusting lower before continuing the previous trend.

But remember, these were all short-term declines of around four to 12 weeks. What about the long-term implications for these overbought patterns?

Long-Term Picture Remains Positive

It turns out that the returns 6-12 months after these signals are actually quite constructive. So, while the short-term implications are that a pullback is imminent, the long-term indication is more that the uptrend is alive and well.

We’re now bringing in twenty years of daily data, with the bottom panel showing the percent of S&P 500 stocks above their 50-day moving average. I’ve highlighted in pink any time this indicator has pushed above the key 90% level, and have also included dashed vertical lines for each indication.

You’ll notice that what we discussed above about short-term implications generally holds true over multiple cycles. We often see a pullback soon after the 90% level is reached, or, at the very least, a pause in the uptrend.

But now look at what happens about 6-12 months after these signals have occurred. In pretty much every instance, you’ll see that the market has fully recovered after the pullback, often reaching new highs within a year.

Now to be clear, a six-month decline is no small issue. Some would say those can be “career-busting declines” if you’re on the wrong side of them! But it should be reassuring as you review this period in market history that these signals have eventually had a very happy ending for equity investors.

What to Expect in Q1 2024

We are currently in the seasonally strongest part of the year, with November and December often experiencing strong returns for stocks. And in a pre-election year like 2023, that seasonal tendency certainly appears to be holding true.

Just this week, we saw additional economic data suggesting that the Fed’s efforts to taper inflation appear to have been working. Fed Chair Powell’s comments on Wednesday led to the latest up move in this bullish fourth quarter, as investors price in the likelihood that a “soft landing” is more and more a likely outcome.

There remain plenty of risks for equities into Q1 2024, including interest rates pushing back to the upside, volatility popping higher, and the US Dollar returning to its former role as a “wrecking ball for risk assets,” as we saw in 2022. But given the strong market breadth readings in mid-December, I would say that the long-term picture for stocks appears to be as strong as ever.

RR#6,

Dave

P.S. Ready to upgrade your investment process? Check out my free behavioral investing course!

David Keller, CMT

Chief Market Strategist

StockCharts.com

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

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MrBeast’s food delivery service partner denies ‘disparaging’ allegations in new legal filing

Virtual Dining Concepts, a brand that partnered with YouTube star MrBeast in 2020, is continuing to push back against claims he made in a July lawsuit about their burger venture, according to a new legal filing. 

The Florida-based “virtual dining” brand partnered with MrBeast, whose real name is Jimmy Donaldson, to sell branded burger-and-fries combos through restaurants and commercial kitchens across the nation. The delivery-only fast-food provider enabled customers to order MrBeast-branded meals from nearby restaurants via food delivery apps or its website.

But in July, Donaldson, who has 218 million subscribers on YouTube, filed a lawsuit in New York federal court against the company alleging that it damaged his reputation by serving customers “low quality” and, occasionally, “inedible” food.

A week later, VDC and its subsidiary, Celebrity Virtual Dining, LLC, asserted in its own lawsuit — filed in New York state court — that Donaldson and his company, Beast Investments, failed to keep contractual obligations and sued over intentional tortious interference. Donaldson then dropped his federal lawsuit and refiled in state court.

In a new filing Monday, VDC responded to Donaldson’s lawsuit with an amended answer and counterclaims. It asked that the court dismiss Donaldson’s claims, grant damages to VDC and CVD, and grant the company further relief as the court deems fit. 

“Among other claims, the filing seeks to recover losses plus interest for breaches of contract and the implied covenant of good faith and fair dealing,” a spokesperson for VDC wrote in a statement, “as well as an injunction precluding Donaldson from further disparaging MrBeast Burger and VDC.”

An attorney for Donaldson declined to comment on Tuesday. 

The legal battle is unfolding as ghost kitchens — online food service businesses that offer exclusively delivery and pickup — have risen in popularity in recent years. VDC’s other ventures, from “Mariah’s Cookies” with Mariah Carey to “Buddy V’s Cake Slice” with “Cake Boss” reality star Buddy Valastro, have built a business enmeshing this pandemic-era boom in food delivery with growing celebrity and influencer fan culture.

VDC’s lawsuit and counterclaim both state that Donaldson leveraged his massive social media presence to make “disparaging comments” about the company. 

In his suit, Donaldson, famous for his expensive stunts and viral charity projects, cited social media posts in which customers called the burgers “disgusting,” “revolting” and “inedible.”

VDC stated in Monday’s filing that it could not verify the accuracy of the “thousands of negative reviews, articles, and comments” from customers who expressed disappointment in MrBeast Burger that were cited by Donaldson. 

It also addressed each of the specific claims made by Donaldson in his lawsuit. The company denied the majority of his accusations — including that the company marketed his name and image online without permission, registered MrBeast-related trademarks without his consent, and that Donaldson has “not received a dime” from the venture despite MrBeast Burger having generated “millions of dollars.”

This post appeared first on NBC NEWS
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Coca-Cola recalled 2,000 cases of drinks due to potential contamination

Coca-Cola is recalling cans of Diet Coke, Sprite, and Fanta Orange that were distributed in Alabama, Mississippi and Florida, saying the cans may contain ‘foreign material.’

The Food and Drug Administration disclosed the recall in a filing and said it began on Nov. 6. It encompasses 1,557 cases of 12-ounce cans of Sprite, 417 cases of Diet Coke, and 14 cases of Fanta Orange.

The FDA filing shows the recall started Nov. 6, and it was made by United Packers, based in Alabama.

In an email to NBC News, Coca-Cola Co. said the recall is complete and there are no more affected cans on the market.

This post appeared first on NBC NEWS
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Costco sold more than $100 million in gold bars last quarter

Costco has found a new hit with online shoppers — gold.

The retail warehousing giant sold more than $100 million of the precious metal in its first quarter, which ended Nov. 26, Costco CFO Richard Galanti told analysts during the company’s earnings call Thursday.

The 1-ounce bars typically sellout within a few hours after they are loaded to Costco’s website, Galanti said back in September. The PAMP Suisse Lady Fortuna Veriscan series appeared to be unavailable Friday.

Gold enthusiasts on Reddit said the bars were going for slightly more than $2,000 as recently as last week. Customers are limited to two bars per Costco membership, which would make it difficult to build a real position in the precious metal.

Members generally seemed satisfied with their purchase though, with a 4.9 star rating on Costco’s website with nearly 800 reviews. Some customers did complain about stiff state sales taxes.

Spot gold prices have jumped about 12% this year. JPMorgan is forecasting a breakout rally for the precious metal in 2024 with a peak of $2,300 an ounce as interest rates are expected to fall, according to the bank’s commodities outlook published earlier this month.

The investment bank said gold could retreat to $1,900 an ounce in the coming months, but that would set investors up to position themselves for the midyear rally.

Gold is on pace for a weekly gain on a weaker U.S. dollar and lower Treasury yields after the Federal Reserve on Wednesday signaled three rate cuts are in store for 2024. The precious metal was trading at $2,036.19 an ounce Friday morning.

One important note on Costco’s gold bars: They are non-refundable.

This post appeared first on NBC NEWS
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Federal Reserve again keeps interest rates steady as inflation cools

The Federal Reserve again kept interest rates steady in final meeting of the year on Wednesday.

The U.S. central bank left its benchmark rate at of 5.25% to 5.50%, where it has been since late July. That marked the third consecutive meeting in which the Fed has left rates unchanged after it raised them at a historically rapid pace beginning in March 2022.

Annual inflation was at about 8% when the Fed started raising rates last year. In June it peaked at 9.1%. As of November, inflation was down to a more manageable level of 3.1%.

“Inflation has eased over the past year but remains elevated,’ the Fed said in a statement. ‘Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation.’

Experts and investors are growing convinced that the Fed is probably done raising interest rates for the foreseeable future. They’re now turning their attention to when the Fed might start reducing rates.

‘We think that the hiking cycle is done, though the committee will reserve the right to hike if necessary,’ a group of Bank of America economists wrote in a research note published on Friday.

A shopper carries several bags in the Magnificent Mile shopping district of Chicago on Dec. 2, 2023.Taylor Glascock / Bloomberg via Getty Images

Based on futures market data, CME Group’s FedWatch Tool says the odds are above 90% that the Fed will also leaves rates unchanged at its next meeting in late January.

After that, futures market data shows that market participants think there’s a strong chance the Fed will start cutting rates and almost no chance it will raise them further.

Documents the Fed released on Wednesday show that on average, its policy decision makers expect to cut interest rates by about 75 basis points next year. That’s what investors were already anticipating.

“This is a significant change from September when the Fed expected one more hike, and then just two rate cuts from that elevated level in 2024,” wrote Greg McBride, chief financial analyst for Bankrate. “Collectively, the Fed expects rates to be one-half percentage point lower at the end of next year than was the case just 3 months ago.”

That’s led to a decline in long-term Treasury bond yields and in interest rates on mortgages and other loans. The yield on the 10-year Treasury note peaked at nearly 5% in mid-October, and it’s now down to about 4.09%.

According to the government-backed lender Freddie Mac, the interest rate on a 30-year fixed rate mortgage is down to about 7% as of Wednesday, after reaching 23-year highs of 8% in early October. That’s prompted more people to put their homes on the market, and it’s welcome news for buyers because it means the numbers of available homes are rising as borrowing gets slightly easier.

This post appeared first on NBC NEWS
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Love him or hate him, it’s time to enjoy this NFL legend while you can

The most iconic moment of Al Michaels’ broadcast career is obvious. We all know it. Do you believe in miracles. Why yes. Yes, I do. But to me, what Michaels has been is more than that moment. For old school NFL heads like me, Michaels is one of the greatest football voices to ever do it.

Late in his career, Michaels has become almost a caricature. He rambles. He continues to make too many goofball gambling references. He tells awkward stories. I mean, really awkward stories. He’s a tad low energy, sometimes sounding like he’s broadcasting from a beach while holding a fruity drink and considering what time to play shuffleboard.

But Michaels, for those of you who don’t know, was a God. In the history of NFL broadcasting, no one was a better storyteller and captivator of the game or moment. And I mean no one. I’d be covering a game, listening to Michaels broadcasting it on my headphones, and get lost in what he was saying, and I was actually there, watching the action he was describing. His call of the game was better than what I was seeing with my own eyes. He was one of the few broadcasters that understood the deep nuances of the sport and you could tell he worked at it.

Now, it’s possible we are seeing in real time his career coming to an end. Michaels is part of Amazon Prime’s ‘Thursday Night Football.’ He was scheduled to broadcast NBC’s playoff games as well. But that won’t happen. How did he find out that won’t happen? Apparently from a New York Post reporter. It’s never a good sign when you learn about your future from someone in the media.

He has one more year left on his contract with Amazon, the Post reported. Certainly, there’s a chance he could continue his career for several more years, but it truly seems we are seeing the beginning of the end of it. Some would argue we’ve been seeing that for years.

NFL STATS CENTRAL: The latest NFL scores, schedules, odds, stats and more.

Michaels is a grown up and no one should feel sorry for someone who’s had such a staggeringly good career and is likely a millionaire many times over. But if we are seeing the near end of his broadcast career, I hope people realize exactly what will be happening. When Michaels retires, it’ll be like a great quarterback leaving the game.

Michaels is part of an era of when broadcasters were larger than life. They were, in some cases, as gigantic in stature as the players they covered. John Madden was one of those voices. He was so galactic one of the most popular video games ever is named after him. His partner, Pat Summerall, was the same.

One of the key parts of NFL history was the 1980s and 1990s. The game was at the beginnings of what would become a massive growth spurt. Television was the warp core of this rise and trusted voices like Michaels were key in keeping viewers entertained. You cannot write the history of the NFL without chronicling its narrators like Michaels.

Broadcasting over the decades has had its issues. It was (and still is) mostly unwelcoming to women and people of color. Oh, sure, there’s exceptions like Mike Tirico, but it’s still a mostly white and male broadcasting universe.

When his broadcast partner, Kirk Herbstreit, was asked recently about the various criticisms of Michaels, the former quarterback defended him.

‘He hears the noise. I don’t think he’s like, ‘I’ll show them. I’m gonna really bring it this week.’ He’s definitely not doing that,’ Herbstreit said on the ‘Pardon My Take’ podcast. ‘He has more of an eff-you attitude about it, than ‘I’m going to show them.’ He thinks it’s a bunch of bulls–t. I think it’s a bunch of bulls–t. And I think it’s just a narrative that social media’s kind of running with.’

That of course isn’t true. It’s not a narrative. The criticism is accurate.

Michaels recently defended himself, telling the Post: “I don’t think I’m a lot different than I have been through the years. And if people you know want to say that, ‘Al doesn’t sound as excited.’ Hold on a second, folks. I’m doing the same game I’ve always done.”

Michaels is 79 and while his age doesn’t matter if he can still do the job, at some point he must be thinking: I’m too old for this crap. Also, to be blunt, Michaels at 50 percent is still better than most broadcasters at 110.

Just remember what you’re seeing as you watch Michaels. Maybe he’s not the same as he was. Neither am I. You aren’t either.

But at his best, no one was greater.

This post appeared first on USA TODAY
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Dodgers not done: LA acquiring star pitcher to bolster rotation

The Los Angeles Dodgers, sick of their postseason struggles, are taking out their frustrations with a vengeance.

The Dodgers agreed to acquire Tampa Bay Rays starter Tyler Glasnow and outfielder Manuel Margot on Thursday for pitcher Ryan Pepiot and outfielder Jonny Deluca, but the deal is contingent upon Glasnow agreeing to a contract extension, a person with direct knowledge of the negotiations told USA TODAY Sports.

The person spoke on the condition of anonymity since the deal has not yet been finalized.

The trade, its parameters agreed to on the same day the Dodgers introduced two-way superstar Shohei Ohtani, is the latest blockbuster move for the Dodgers – and perhaps not their last.

After signing Ohtani to a historic 10-year, $700 million contract, they also are hoping to sign 25-year-old Japanese pitching sensation Yoshinobu Yamamoto, who has won three consecutive Sawamura Awards (Japan’s version of the Cy Young).

HOT STOVE UPDATES: MLB free agency: Ranking and tracking the top players available.

Yamamoto, who visited with Dodger officials on Tuesday, is expected to command at least a $300 million contract, MLB executives say. The New York Yankees are the favorites to sign Yamamoto, but the Dodgers are one of the finalists, hoping to one day have Yamamoto and Ohtani lead their rotation once Ohtani recovers in 2025 from his elbow surgery.

The Dodgers, who have dominated the National League West, winning 10 division titles with 11 consecutive playoff berths, have won just one playoff game the past two postseasons, and their lone World Series title in that stretch was during the COVID-shortened 2020 season.

They brought in Ohtani for his worldwide brand, while also being the game’s premier DH, but their biggest need is pitching.

They went into the offseason searching for at least two front-line starters, and with the pending acquisition of Glasnow, they’ve got one of them. He will lead a rotation with Walker Buehler, Bobby Miller, Emmet Sheehan and perhaps Clayton Kershaw, who’s a free agent. Dustin May and Tony Gonsolin underwent elbow surgeries last season and are not expected to return in 2024.

Glasnow, who’s a free agent after the 2024 season, earns $25 million while Margot will earn $10 million next year – with a $12 million club option or $2 million buyout for 2025. But Glasnow is eligible for free agency after the 2024 season, which is why the Dodgers are insisting the deal is contingent upon a contract extension.

The Rays are also sending the Dodgers $4 million in the deal.

While Glasnow, 30, is an elite pitcher, averaging 11.5 strikeouts per nine innings, he’s never pitched more than 120 innings or made more than 21 starts in a single season. He has been sidelined by Tommy John surgery, forearm strains, and an oblique strain in recent years.

He went 10-7 with a 3.53 ERA, striking out 162 batters in 120 innings last season after missing the first two months. Margot, a defensive specialist, likely would be used as a fourth outfielder or could platoon in right field with Jason Heyward. He hit .264 with four homers, 38 RBI and a .686 OPS in 99 games last season.

This is the latest money-dump for the Rays, who are shedding more than $30 million. They now will have five years of control for Pepiot, 26, who went 2-1 with a 2.14 ERA in his last eight games last season after missing the first four months with an oblique strain. DeLuca, 25, made his major-league debut last season, hitting .262 with two homers, six RBI and a .740 OPS in 45 plate appearances. He hit .294 with 17 homers and a .959 OPS in 73 games at Class AA and Triple-A last season.

While the Rays are worried about pinching pennies, the Dodgers aren’t letting money stand in their way. Their payroll soars to more than $240 million, eclipsing the $237 million competitive balance tax. They now have four players earning at least $25 million a year (for luxury tax purposes) in Ohtani, Mookie Betts, Freddie Freeman and Glasnow.

So, you think they care if they spend a couple of extra million for a World Series parade?

This post appeared first on USA TODAY
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Messi news: Inter Miami heads to Japan; Apple TV announces docuseries

After playing Cristiano Ronaldo in Saudi Arabia, Messi and Inter Miami will visit Japan, rounding out a tour of Asia in early February.

Inter Miami will play the J1 League champions, Vissel Kobe, at the Japan National Stadium Feb. 7 in what has become a jam-packed preseason schedule for Messi.

“Tokyo is an inspiring destination with a fervent fútbol community that we’re looking forward to getting acquainted with. We’re thrilled to visit Japan as one of our stops as we continue to bring joy to our global fanbase,” Inter Miami Chief Business Officer Xavier Asensi said in a statement.

“Our aspiration remains to make our fans’ dreams come true, and we believe this match will be a fantastic occasion for them to look forward to, and a wonderful moment for our players.”

Apple TV+ announces new Messi documentary

Messi’s run at the 2022 World Cup with Argentina will be showcased in a four-part series by Apple TV+, which was announced Friday.

“Messi’s World Cup: The Rise of a Legend” will be a four-part documentary where “Messi tells the definitive story of his incredible career with the Argentina national football team, providing an intimate and unprecedented look at his quest for a legacy-defining World Cup victory,” Apple TV+ said in a press release.  

The series is set to premiere globally Feb. 21, 2024.

Inter Miami has five international preseason matches in 2024

Inter Miami will be ready for a variety of opponents before the 2024 MLS season, and likely jetlagged.

Messi and Inter Miami announced preseason games against:

∎ The El Salvador national team at the Estadio Cuscatlán in San Salvador on Friday, Jan. 19 at 8 p.m. ET

∎ Al-Hilal on Jan. 29 and Al-Nassr (Ronaldo’s Saudi-based team) on Feb. 1 in the Riyadh Season Cup in Saudi Arabia.

∎ A match in Hong Kong, where Inter Miami will face a collection of the best players from the Hong Kong First Division League Feb. 4.

∎ Vissel Kobe at the Japan National Stadium Feb. 7

Messi’s World Cup jerseys sell for $7.8 million

As Inter Miami hopes its international tour will further sales of Messi’s pink No. 10 jersey worldwide, Messi’s jerseys from his thrilling win at the Qatar World Cup last year lifted a heavy penny this week.

Six of Messi’s jerseys from the 2022 World Cup were sold at auction for $7.8 million at Sotheby, the auction house announced this week.

Messi is TIME’s 2023 Athlete of the Year

Messi, the eight-time Ballon d’Or winner and 2022 World Cup champion, added another honorable distinction to his resume earlier this month.

TIME has named Messi the 2023 Athlete of the Year, adding he is an “accelerant” to soccer’s growth in the United States, especially since Copa America in 2024, the FIFA Club World Cup in 2025, and the FIFA World Cup in 2026 will be hosted in the U.S.

This post appeared first on USA TODAY
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Jake Paul can’t see one of scariest things about his opponent. No one can.

So much for those bulging muscles. So much for the 10-1-1 record with five knockouts.

Andre August, who owns all of the above, has earned little visible respect from oddsmakers or Jake Paul heading into his boxing match against Paul Friday night in Orlando, Florida that will be livestreamed by DAZN. Of course, one of the scariest things about August is something you can’t see.

His past in Beaumont, Texas.

“Man, growing up in the streets, a young Black man, gang banging with a certain hood, fighting over territory,’’ August, 35, told USA TODAY Sports. “It was gun wars back in the days, as a youngster. I could have lost my life, and I thank God for the opportunity to be where I am today.’’

The next opportunity is a fight against Paul (7-1, 4 KO’s) at the cruiserweight division of 190 pounds scheduled for eight rounds. Though the fight will take place in Florida, here’s the geographical reality: the chances of August pulling off the upset against a multimillionaire YouTube star who grew up in suburban Cleveland, Ohio, likely are rooted in, you guessed it, Beaumont.

August’s trainer, Justin Deshone, said he grew up on the same streets as August, who now lives in Houston.

“We’ve literally come from like the bottom, bro,’’ Deshone said. “Jake Paul can have all the resources he wants. But he’ll never have the type of experience or the struggle of what it is to actually get from the bottom to the top.’’

Why is Jake Paul fighting Andre August?

Paul has not provided a convincing answer as to why he chose to fight a reformed gang banger with a Q rating clearly lower than any of his previous opponents.

“Look, the biggest criticisms are, fight a real boxer,’’ said Paul, who’s taken on MMA fighters in five of his seven bouts and also fought a YouTuber. “Fight someone more experienced than you. … It’s time to show up, put it on the line, take those risks.’’

That sounded persuasive. Until a few minutes later. When Paul said August has “sorry’’ footwork and predicted August wouldn’t land a punch.

Regardless, Paul said his fight with August is a logical step in his progression.

“I’ve generated $250 million in pay per view revenue,’’ he said. “So that’s cool. But money doesn’t create legacy. And for me this is my road to world championship.

“And it’s about getting the experience under the bright lights to actually be able to compete at the highest, highest level and to win and to do the unthinkable and to create one of the greatest sports stories in the history of sports. To go from Disney Channel to world champion in less than six years. That is why I’m here, that is why we’re doing this, and that’s what this is all about for me.’’

This post appeared first on USA TODAY
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