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The stock market is absolutely annoying me i’m at a very big frustration level with the stock market right now and i want to kind of go into detail why the stock market has me kind of in this annoyed mood at the moment guys and i’m sure a lot of you are feeling the same way as i am so i think it’s good to kind of discuss these emotions every once in a while and
Kind of go over some numbers with you guys all right now first i want to take a look at what the stock market is doing today what particular stocks are doing stock market is a rough day out there the dow’s down around 350 points then the sp500 standing around 40 points that nasdaq is was down around two and a half percent all right now in terms of shares i either
Own or i track let’s look at some of these that are down big today facebook we have down nearly three percent today we have alibaba down around four percent today rough day there we have tesla shares down five and a half percentage it’s almost at its lows that a hit when the holy on must situation came out and you is down over three percent here today we have
Google mcdougald down nearly four percent today rough day there for google we have a line technology down over five percent we have roku down nearly eight percent today rough day therefore roku wynn resorts is down over three percent nvidia down over three percent snapchat down over five percent but that’s just a normal day for snapchat shares by do the google of
China is down over three percent today we have a excellus tech down nearly six percent today shopify down over seven percent today it is a rough day for a lot of stocks out there amazon down over two and a half percent today nearly $50 per share amd down over three percent today we have twitter down over three percent today activision blizzard down over three
And a half percent today we have netflix down over four percent today okay so some rough it’s just a rough rough day out there for the stock market for anyone who owns equities out there it’s certainly not the fifth day in the world all right no here we go so this is kind of gets into the start of it here so just this past week we had the new gdp numbers come
Out and it was a 4.2 percent gain the fastest rise in nearly four years all right nearly four years is a very strong number there all right so right off the bat we can see that the economy is very strong right now gdp is very strong some of the strongest we’ve had in years and they’re talking about in the back half we could hit numbers that maybe we haven’t hit
In decades okay that that’s like crazy to think about okay so let’s keep that in mind the yield on the benchmark ten-year treasury note could reach as high as three and a half percent if friday september’s jobs data shows worker wages continue to rise according to wall street’s jim paulson we probably put wages over three percent then you’re probably looking at
Somewhere between three and a quarter percent and three and a half percent on the 10-year yield he says the bureau of labor statistics reported last month that the average hourly earnings rose by an annualized rate of two point nine percent in august the highest number in since 2009 so nearly a decade all right and then this news just came out here today factory
Orders up 2.3 percent in august versus 2.1 percent was expected therefore factory orders so some things who who could take new account here’s you know they’re talking about treasury yields you may be yielding somewhere around three and a half percent at some point toward the end of this year or going into next year first thing my thoughts around that okay is if
An individual out there and i’m gonna take money out of the stock market and put it in tea bills i really have to be getting at least like six percent of plus at that point in time okay still at a three percent of three and a half percent if you if you say the stock market on average goes up around eight percent per year right around eight percent per year you
Ought to get somewhere close to that tea bills are pretty much guaranteed but at the same time like i need to get some type of return that’s pretty close to what an average stock market return can be right so so that’s my opinion there but we know the economy’s booming okay so what do we know what are the facts what are the facts and then what is a situation that
Has been so annoyed with where we’re at with the stock market right now the factual things we know we know gdp is booming all right like we just talked about we’re hitting the strongest numbers we’ve had in years and we have the possibility of hitting some of the strongest numbers we have had in decades okay now that is like you know we’re in a very good economic
Situation okay unemployment is extremely low it’s arguably almost as low as you can possibly get it well while still having you know some people that are out of the workforce there are always be some individuals out of the workforce you know for a certain amount of time just because you know the company has layoffs or maybe they dropped out of the workforce now
They want to get back in so they’re searching for a job something like that okay so there’s there’s like you know they say you really can never drop below like a three percent number a three and a half percent number and that’s probably factual but we know unemployment is extremely low right now all right we know company profits are a booming company profits i’ve
Just skyrocketed this year part of it is definitely the the whole you know tax cuts on corporations that’s definitely a big piece of it but another piece of it is just most big businesses out there have expended their companies huge this year and we have seen profits rise substantially revenues rise substantially for almost every single company out there like if
Your profits aren’t booming your revenue is not booming this year then then and i don’t know what your you could do good in honestly so company profits are booming and we see wages increasing all right we see wages increasing that’s part of the reason why they think you know the t bills are gonna go up wages increasing is a very good thing for the economy and my
Personal opinion you say well that hurts company profits a little bit here and there yeah but at the same time you can say well if people have more money in their pocket they’re making more money they’re likely to go out and spend that money okay so which helps companies profits in the end so it’s kind of a whole system that works together alright so there’s a
Factual information we know that’s a factual information the economy is unbelievably strong right now i have no reason to believe that’s not true all right now the situation that has me really annoyed with where the stock market is at as the stock market right now is acting like sometimes numbers don’t matters this is kind of like numbers don’t matter sometimes
Whatever company’s doing it’s just kind of looking the other way and it’s like we don’t care about care about that situation okay the face of this the face of this in my opinion is one of the stocks i own and then we could go through a thousand examples of different stocks that that would fit the same criteria is i’m gonna go through with this particular stock
This stock is named toll brothers okay this is one of the nine or ten stocks i own and this one is the face of wall street looking at and saying numbers don’t matter for stock we don’t care what they do okay this company has great current numbers this is the companies you know most recent numbers we’re phenomenal the company’s guidance was a very very strong okay
So the company’s previous numbers are are great the company what they’re expected in the upcoming quarter is great okay they have a very very low valuation on that company in the economy is in a perfect situation for this company to thrive right cuz you got a thing about toll brothers a homebuilder well if everybody’s unemployed and everybody’s wages are going down
And no one feels confident about the economy and gdp is horrible those are usually pretty bad things for the housing market right because who wants to go out there and buy a house especially a high on a high-end house if they’re not feeling good about their economic situation if they’re unemployed if people around them are unemployed if their wages are going down
If their hours are going down all those type of things okay so right now if you look at this company named toll brothers it’s the face of kind of this this annoying thing that’s going on in the stock market right now where wall street will look at a company and if even if their company are great even if their valuation is low even if their guidance is great even if
The whole system around that is in a strong position it will look at that it’ll just like penalize it and put it into this box if we don’t want to buy that stock for whatever reason out there and that’s the kind of situation that toll brothers is that once again we could go through a million different stock setter in these exact situations i’m talking about has a
Fairly low valuation has a situation where the current numbers are great the guidance is great right which the numbers is what’s supposed to dictate where a stock goes over time right you know how strong are those numbers how weak of those numbers things like that and where’s that company valued at and the economy strong and so you look at this right now and the
Stock market is in a really annoying place where it’s just it wants to give it wants to give its opinion on where stocks might go right now but it’s not taking into account any of the economic numbers any of the numbers behind these companies i’m just seeing it from come after company out there there are a few companies that the numbers are great right now in the
Company the stocks being rewarded there are a few stocks like that apple is one of them that comes to mind that’s the stock that you know has amazing numbers right now in the stock has been rewarded but when i look out that just kind of stocks in general there are countless stocks right now that have great earnings great guidance great things going for the company
And yet their stocks being down like it’s a trash company and they’re never going to grow again it’s just like a garbage company at the end of the day and so i’m seeing that countless times across the stock market right now and so here in the short term we’re just kind of in this annoying period now i’ve been buying stocks unbelievably heavy the last three six
Months i prolly i’ve probably deployed around six figures just in the past three six months into stocks i’m talking new money – okay not old money new money into stocks in just the past three six months so it’s good from a buying perspective when i look at things but at the same time it’s frustrating when i see all these companies at my other i own or others own
And they’re they’re right on about the bullish cases on these some of these companies and yet their stocks are absolutely torn up okay and you’ve gotta you’ve got to always judge a certain amount off the numbers kids just be uh well there’s something could happen that company someday it’s like like you know you could look at jcpenney stock right jcpenney stock is a
Stock dead the numbers are horrible i think that company is pretty much done they’re going bankrupt but you could go on the contrary side and say whoa jc penney’s maybe though they’ll turn it around so let me buy jcpenney stock or something like that right you could say that you would go with that but then you’ve got look at the numbers and say why would you ever
Want to do something like that right so you know the stock market is in an annoying place it’s frustrating it’s frustrating for me not just with my positions but to see others you know and make really good investment decisions but here in the short term they’re just being absolutely destroyed by some of these stocks despite you know that company having great numbers
Beating on earnings beating on revenues beating on you know what the company’s guidance is and all those type of things and you know they have a low valuation already and it’s like what do you know what can we do to pick some money out there so it’s a hard time to actually make some money in the stock market right now it’s not the the best time in terms of uh you
Know well in terms of what companies are reporting versus where actual stock prices are going generally speaking of companies are you know our boom in the earnings are phenomenal you’re gonna see the dow and s&p just flying up and right now we’re just kind of stuck in this this twenty four thousand a twenty six five number in the dow right now and i feel like
We’ve been kind of stuck here since basically february and we just like like like it’s just an annoying little stock market right now does it doesn’t want to make up his mind it doesn’t want to explode higher i think a lot of people right now we’re scared that you know maybe this is a top maybe we can’t grow the economy anymore maybe company’s profits have topped
Here we’re only gonna go down from here you know a lot of people are scared like that we’ll see what happens over time you know there’s really no limit to how good things can get how bad things can get you know and by the way a lot of times people when the economy goes south is funny because people don’t ever put a bottom on things people say oh yeah it’s got to
Get a lot worse oh yeah we’re going to go to you know depression and whatnot i heard that a lot when we’re going through the great recession and you know when things are bad if people put no limits on how bad we can go but yeah when things are good people say oh it’s not gonna get any better than this this is as good as it’s gonna get it’s like why put a top on
Things but yeah you don’t put a bottom on things it doesn’t make sense so anyways i want to know your guy’s opinion down there in that comment section are you frustrated with the stock market here in the short term are you taking advantage of buying some great companies out there i would love to hear from you guys in that comment section thank you for watching and have a great day
Transcribed from video
THE STOCK MARKET IS SO ANNOYING RIGHT NOW By Financial Education