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How’s it going everybody this is peter bush after a few months of scaring myself i’m finally starting to buy stocks again and today i’m going to explain why this video is brought to you by weeble to support this channel just sign up for this and you can get two free shares of stock just for depositing a hundred dollars check out my referral link down in the
Video description below if you guys have been following my channel you guys probably know that right now i hold a bunch of gold about 100k worth of it not physical gold though i hold an asset called gld i bought it at 165 and i’m not gonna belabor this because i talked about this way too much it just keeps on attaining all-time highs the underlying asset which
Is gold has reached two thousand dollars per ounce and i still think there’s a little room to go however the recent increases of gold prices have me concerned a little bit because it’s accelerating in its ramp up it kind of looks almost like in bubble territory i’ll explain this a little bit more further in the video the other asset i decided to buy into is bank
Of america at 25 this little bit of increase after i bought it is pretty much inconsequential now you guys know i bought a bunch of assets early on in the pandemic saying that i’m gonna keep it for a while which is bac irm a t and i just got kind of scared and i sold out of it at the time i sold out of bank of america at around 24 so you know you could say i lost
Out on one dollar worth of it maybe about four percent and also possibly some dividends that they gave out along the way i feel a little bit more comfortable investing in the stock market knowing that it’s not going to rapidly deteriorate because there’s so much support going on however i am still remaining very very cautious with investing i am not 100 asset in
Right now just a small fraction of this right now i even anticipate that bank of america could drop by 20 percent on top of this and i would be ready to keep on holding it and even buy more if needed even with infection rates at all-time highs it’s staying pretty high i don’t see it going down without a vaccine right now it’s around 60 000 people infected per day
Masks are just the new normal and perhaps if every single person follows these rules maybe the infection rate just could stay around where it is right now and possibly not cause another shutdown which would really really deteriorate the stock prices for me personally i like to go out into the world to take a temperature reading of what it’s like outside so i
Went to have some pizza at a restaurant recently you cannot go inside to eat but then they have outdoor seating i feel pretty comfortable eating there however this was on a saturday afternoon and there were only a few patrons over there so this is very concerning that the business is so slow for such a popular area the 600 additional support for unemployment has
Ran out as of july 31st and right now there’s still a gridlock on getting the next stimulus package passed there’s nothing approved yet however if this drags on for another week or two and this expires and people start defaulting this could result in a rapid deterioration of the stock market prices my opinion on this is that the government is trying to approve
Something except they’re kind of playing a game of chicken right to see who’s gonna give in first someone’s gonna give in first because they’re gonna see the economy it’s gonna freak out and then they’re gonna go oh my gosh we have to pass something so i feel like yes this 600 stimulus is going to expire and then when something slightly starts to happen then
The government’s gonna start to freak out and then some new law is gonna pass and the anticipated amount of the next stimulus package is probably around two to four trillion dollars the last stimulus package with the twelve hundred dollars comes out to a total of two trillion dollars now the current u.s national debt is right now around 26.6 trillion dollars
So if you add on another two to four trillion on top of this this is another 10 in inflating the u.s national debt now here’s my simplistic reasoning for why i’m holding on to gold if they’re pumping money into the economy like this eventually it’s gonna get out there it’s gonna dilute our money we see our money diluted already in terms of inflation because now
When you buy online groceries they charge a delivery fee sometimes even when you do take out they do some sort of safety fee everything the prices of everything just sort of seems to trickle up a little bit even though you’re supposed to be paying a little bit less for takeout and if you hold on to gold and inflation goes up well the gold is just going to get
Dragged up with it just think of it this way 26 trillion dollars of total money and then they add on another 2.6 trillion let’s just say it’s around there right another 10 so technically you would think that gold is going to go up another 10 percent so this is my reasoning for how much it is at right now that is going to go up another 10 from here and i think
People are going to freak out about this people are going to overshoot and over anticipate this inflation rate and it’s going to overshoot twice as much the first stimulus package is 10 inflation already anticipated inflation not real inflation just yet but the second stimulus package is going to inflate it yet another 10 so 20 total for the gold prices if you
Look back in let’s say january you tack on 20 on this and then you take on another 10 for over reaction and i think gold is going to land between 2 100 and 2 300 before i’m gonna say hey this gold is just you know running ahead of itself and it’s time to sell so it’s very very close before i’m thinking about selling gold right now i’m even looking at it just
Being very careful about it and just kind of keeping an eye on it and i might pull the trigger on selling my gold soon because it does seem like it’s running ahead of itself i’ve already netted about fourteen percent gain in uh a short six weeks or so i forget when i bought it uh june 22nd so it’s only been six weeks or so fourteen percent gain this is ridiculous
For gold now back to bank of america one of the things i like to look at is the robin hood popularity list this is the robin hood app that people like to trade on a lot of millennials like to trade on this app the thing i like to look at is you don’t actually have to have this app to look at the popularity list you can just search for it online here is what it
Looks like you can see how many users buy a certain asset so they tallied all this up and then they have a popularity list the first one interestingly is ford 925 000 users hold ford this is more like an underdog thing robin hood users for me it seems like they like to bet on things that went down a lot like carnival like ford tesla is at number eight simply
Because it’s kind of like a bubble type of thing they’re a great company i like the car but they’re number eight 537 000 users holds on to tesla now i want to talk about bac which is bank of america they’re at number 15 355 000 users which is very very popular one-third the popularity of their most popular which is ford and i think robin hood users typically is
A warren buffett fan they follow him and they watch every single move that warren buffett does they’re all into tesla and ford is just an underdog they like to purchase into underdogs i like to use this robinhood list as a proxy of how popular things are or how much of a bubble certain asset is this is a way for me to gauge if things are in a bubble that’s why
I’m watching this in relation to bank of america so if bank of america starts trickling up this list which right now i think it is already it’s it’s climbing up this list quite a bit then this is an indicator for me to sell right now i just bought into it so i’m just gonna hold on to it and see what happens bank stocks tends to not move very fast you have to
Hold on to it for maybe a year or two before it can recover so the fact that it’s 25 right now i feel short term it could very well drop by 20 so i would not be surprised if it hits twenty dollars at all and i would be ready to buy you know maybe double down on it or something because i bought a small amount of bank of america i anticipate bank of america could
Very well reach thirty dollars thirty two dollars within a year uh so technically you know a twenty percent gain this is a good deal for me you also have the backing of warren buffett so this says something right with berkshire hathaway stocks down all the way to like 1.0 book value it might be a good time if you still believe in the guy if you still believe that
He is a very very good investor in terms of long term people like to laugh at him short term right just like hey you’re underperforming right now but most the time over his entire lifetime he got the last laugh so you might you know this might say something for maybe a year or two into this pandemic or you know when this blows over he might get the last laugh
And have like a really really strong portfolio coming out of this if you guys are interested in signing up for your own robin hood account you are guaranteed one free share and you get a 1 in 200 chance of winning a share of visa microsoft or johnson and johnson and these stocks are valued at over 200 so you’re definitely gonna get some share of stock and then
There’s a chance to win a very expensive stock check out my referral link down in the video description below thanks for watching everybody don’t forget to give me a like comment down below let me know what you think of the stock market are you buying into it a little bit right now being very cautious or whatnot and as always don’t forget to push that subscribe
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Transcribed from video
Back In the Stock Market By BeatTheBush