The stock market has done some things recently that has made investors new to stocks and experienced say what the heck. When I look at the stock market I see a stock market that is most vicious ever. People in the stock market are look at all these stocks to buy now and wondering when stocks will stop hitting 52 week lows. We must discuss all this plus stocks to watch now.
Well folks last week i said it i said this was the nastiest stock market i’ve ever been in the 14 years i’ve been in the stock market in terms of just the devastation that has been happening in stocks and folks trying to wrap their heads around it in this video here today i want to share exactly what is going on in the market because there’s a lot of different
Theories on what is going on in the market right now there’s a theories that only small cap stocks are falling right now or only speculative stocks are only non-profitable stocks and so what i want to take you through here today is the truth on what is really going on in the stock market and then we’re going to get into in the back half of this video some crazy crazy
Stuff nonetheless and uh if you’re thinking about like when do these stocks ever bottom right like a lot that’s a lot of people’s like thought process right now like when does it ever happen because you see these stocks hitting 52-week low after 52-week low after 52-week low and it’s like like do all these stocks go to a dollar is the stock market gonna be finally
A good when all stocks are down 99 like what is the situation here so yeah this is a value pack video hope you guys enjoy this as always make sure to subscribe the channel if you’re not already because this is drama time baby we got so much drama going on so i wanted to start this video here today i want to start this looking at the russell okay so first off the
Russell really hasn’t gone anywhere in the past year but if we look the russell’s obviously fallen from 2431 to today it’s at 2154 and that’s in a matter of about two months right as of today i’m recording this on january 10th 2021 on no on november 4th 2021 or excuse me 2022 i’m recording this and i haven’t uh fast forwarded the year yet okay but back in uh you
Know november of 2021 the russell was at 2 400. so we’ve dropped about 300 points roughly on the russell which is a pretty good amount but keep in mind the russell and i explained this last week the russell unfortunately like many indexes has one massive flaw that massive flaw like the s p 500 like the nasdaq 100 is is weighted toward the biggest stocks so the
Biggest of the big stocks in the russell which many of them are way over a five billion dollar market cap right when when you think about russell stocks you usually think about under five billion dollar mark caps many of these stocks are over five billion dollar mark caps and some of those have held up well meaning essentially it’s made the index look better than it
Really has been just like the s p 500 just like the nasdaq 100 right and so it’s a fatal flaw in the russell and so really what folks are feeling in this market right now is that the markets that the russell’s down way more than 300 points in the last two months right i mean a lot of us are feeling it like it was down a thousand points in the past uh you know two
Months because the biggest of the big stocks have had held together everything like the glue right in terms of the index and the way it looks it’s so much worse than what the index is really showing you okay next slide i want to start the second part i want to start out with here is very interesting stock called oatley okay otly this is a newest stock i’ve just
Started buying here okay and i want to show you this stock because it’s it’s so important on so many levels okay in this sort of market right now this is a stock that here today hits a new 52-week low seven dollars and 18 cents this company is expected to do about a billion dollars if not over a billion dollars of revenue in 2022 which puts it at a basically a
2022 price of sales ratio of about four right now about four on an extremely healthy gross margin business in a business that has like you know a decade plus of just crazy runway if you’ve done any research into this company right 52 as far as the one-year price target on this one right 15 plus which is over you know basically a double up from here over a double
Up from the stock price from here as far as what analysts have for this stock and there’s many analysts that cover the stock but in this sort of market right like it doesn’t matter it doesn’t matter your growth story it doesn’t matter your long-term growth story it doesn’t matter what your net income is going to be down the road it doesn’t matter that you’re a
52-week low after 52 week low it doesn’t matter that your one year price target analysts have on average just keep in mind this is the average right there’s over a double up from here over the next 52 weeks think about that for a moment none of that matters in this sort of market it doesn’t make any sense why it doesn’t matter because these things should always
Matter but right now it doesn’t matter no some folks might say well right now they lose money on the bottom line so who cares what their gross margin is because they lose money on the bottom line right now right that that’s that’s a flaw in itself like you you can’t just view the market like that you’re gonna miss crazy opportunities over the coming years and
We know the best opportunities in the stock market are always the stocks that have the biggest revenue growth over a five ten year span that is something we do know that’s been proven scientifically in the stock market time and time and time again over the last 14 years i’ve been the stock market in before i was in the stock market as well okay and so the stock
Market can throw all these sorts of stocks out right now but like long term that just doesn’t make any dang sense but this is the prototypical stock in the market right now where people say okay great growth story great uh you know long-term profit projections in in in revenue projections and all sorts of things yeah analysts are bullish on that over the long term
And over the short term but the market doesn’t want it but i i show you this stock at the start here because you’re going to find that that is not the truth okay that is not the truth in terms of thinking about it like these are the only sorts of stocks that are in the market that are getting thrown out right now look at something like a teledoc right well this
Doesn’t fall into the small cap category right it’s a 13 plus billion dollar market cap so it’s not a small cap stock so right off the bat if we want to just think like it’s only small caps that are falling in this market false look at a teledoc all right now look at the 52-week range on this stock from 308 to 76 dollars it hits today a new 52-week low now you’re
Probably wondering why do i have kathy here okay why is kathy’s name there kathy wood arkhan fast why is her name there well you know i’m not gonna say she was necessarily buying this afternoon because none of us know that right but i mean based upon that movement up there it’s you know i wonder if kathy wood was out there acquiring shares of teledoc here today
Because that’s a really really strong move and we know teledoc’s usually her second or third biggest position in the art fund so i’m wondering if kathy wood was buying there look at teledoc you know based upon where the lows were at today it’s basically a double up from here over the next year and that’s that once again that’s the analyst average for the stock and
So this is this goes to show you it’s not just small cap stocks it’s not just the one billion two billion three billion four billion dollar type market caps okay here we are with teledog 13 billion plus dollar company as far as the smart cap goes great long term growth story in front of it none of that matters right now right and you might say well they do fall
In the category of yeah they’re a high growth company but they’re a money loser all right okay interesting and we’ll see in this video if it’s only money loser companies that are that are basically having their stocks fall right but there’s good old teledoc look at the arc fund here today i think this was important to pay attention to 52-week low for the arc fund
Hit today now it did come back strongly and it does make you think for a second hmm why did why did a lot of these come back so strong throughout the trading day here today right but look at look at the arc fund i mean it’s just it’s been devastating right i mean it’s not very often you see an etf like this down 50 percent from its 52-week high and that’s exactly
What happened 52-week high for arcs right around 160 and i hit 80 today okay if my math serves me correctly that’s about a 50 fall there nonetheless in in the arc fun and i have a website called kathywoodstocks.com and it basically updates on a daily basis uh ark’s top 25 holdings and what their weight is the market value things like that if that’s you might want
To save that on your desktop if you care about kathy wood stocks okay and basically what this shows you is all these stocks that kathy woods in almost i don’t say all of them hit 52 week lows today but the high majority of them that are in her top 10 hit 52 we glows today or very dang close to 52 week lows and almost all these are massively off 52-week highs okay
Tesla’s really the only one in the portfolio holding things together but keep in mind you might think tesla’s like some massive weight no it’s only eight percent roughly of her fun right zoom teledoc roku coinbase like look at all these stock prices here today and you’re going to find almost all of them are at or near 52 week lows and like a lot of these stocks
Have great long-term growth stories that’s the thing it’s not like these are all garbage stocks that like no one cares about or they’re all going to do bad in the future years almost all these having tremendous long-term growth stories but right now it has just been selling selling selling now kathy wood also blames a lot of this on algorithm trading that’s going
On in the market that’s a whole that’s a whole rabbit hole i don’t even want to get into in terms of the algos in what they’re looking at and like the algorithms just you know the thing about the algorithms is you know they don’t look at anything um you know in my opinion the the most intelligent way possible the algorithm just reads data and it’s like sell
Right and it’s just it’s it’s a lagging indicator many times and it’s just it’s being kind of naive in terms of like the algorithms can’t really you know run projections on where companies going over the coming years or really understand human psychology on why so many folks are going to want to invest in certain stocks in the back half of this year and into the
Next year next year next year it doesn’t you know they don’t really know that right and so here’s something we’re seeing obviously zoom her what is it third second biggest investment in the art fund right look at this one here today this one hits a new 52-week low again again now here’s what’s really important around zoom stock the most important thing you can
Take from this one is when you’re thinking about this right we already dispelled the thing like oh it’s only small caps no it’s also more than small caps that are falling right look at zoom it’s a 50 billion mark cap but here’s the most important thing there’s also a you know a rumor out there that it’s only companies that are non-profitable well here’s the thing
About zoom this company is profitable now and quite profitable and they’re likely going to get even more profitable in 22 right and so you can throw out the whole thing like it’s only unprofitable company because a company like zoom look at this stock i mean it’s literally like a new 52-week low every single day for the stock and here this company is that’s actually
A very very profitable company a company that’s expected to get more profitable in future years okay so yeah not just small caps not just unprofitable companies it’s many stocks outside i look at that you know from 451 to 164 here today i mean just a stock that’s just been absolutely obliterated in zoom stock okay now let’s get rid of another one of these theories
Another one of these theories in the market is it’s only high p names it’s like well it was only small caps no well it’s only you know companies that aren’t profitable no um well it’s only companies that maybe are higher ps no corsair gaming’s at a 17 pe a 13 something forward pe analyst have for the stock right and look at this one it hit a new 52-week low today
1974 another 52-week low for corsair gaming crsr so we just dispelled every single theory in the stock market that people have had it’s only small caps it’s only on profitable companies it’s only high p e names like no it’s just it’s a it’s a it’s the majority of stocks in the stock market and that’s why you see you know we looked at data recently where was
Something like two-thirds of stocks in the uh i think it was a nasdaq if we we looked at recently are at 52 we glows and that was as a few days ago i can almost guarantee you it’s more than two-thirds of stocks now or at 52-week close and i pull up that in a video recently i wish i would have brought that up for you guys too as well in this video but it’s just
It’s just interesting right it’s like 52 week low after 52 week low after 52 week low and people are like when does this end okay and also what stocks was i buying today because you know i was out there buying some stocks here today right look at paypal this gets rid of the last one of these people like well it’s more speculative companies no like the paypal
Is literally the exact opposite of everything you could possibly think about in relation to like folks thinking stocks are going down because they’re certain groups or whatever no it’s a multi-hundred billion dollar mark cap hit a new 52-week low here a day of 177 right approaching almost a 50 percent downside from his 52-week high of 310 it’s not a super high
Ford p it’s like a 4p on the stock is like maybe 35 33 something like that right great growth story amazing company like one of the best business models in the world one of the most compelling growth stories of large cap you’ll find out there and here this company is at another 52-week low it hit here today right and so it’s literally the opposite of everything
You think about now i want to show you a stock that’s even more interesting than paypal okay that stock is square stock sq now named block right look at this stock another 52 week low here today a 60 billion dollar mark cap on this company right and no one wants a piece of square stock right now i mean it’s just it’s it’s amazing really did i mean from 289 to 133
Obese that is square with the revenue growth this company’s head the the you know a lot of folks look at this as one of the most exciting stocks in the stock market in terms of long-term growth stories behind it their own cash app which is usually the number one uh most popular finance app in in all of the united states of america like think about that for a moment
Like when you own the number one most popular financial related app in all of the united states of america that’s that’s pretty darn powerful right that’s pretty darn powerful by the way paypal which we just looked at owns a number two and number three because usually paypal and venmo are the number two and number three most popular financial related apps in the
World remember venmo’s got that big deal going through this year in 22 with uh basically amazon think about these for for a moment like think about how big that is where you can actually start buying stuff on amazon through venmo if you want i mean my gosh does a lot of this stuff get bigger than this right but yet this stock just continues to get pushed down to
52 week low after 52 week low but do look at this okay this is something you’ve got to keep in mind look at the look at the the change right it reached a 52-week low today of 133. look at the stock now 11 a share bounce back there if there’s not some bouncing activity i don’t know what is like what a move up there right i mean you don’t just like get moves like
That very often let’s just put it that way like that’s an extraordinary move and especially for a bigger company like a square look at also volume here today and i keep in mind i took this this screenshot before the market was even closed 14.5 million shares trading the hands here today average volume of 8 million interesting okay now you know so there’s a video
I put out and there’s an important video i think this is one of the most important videos i put out in all of 2021 and i posted this video almost exactly one year ago i posted this video on january 13 2021 and it says going all in stocks in the stock market in 2021 not and i talked about in that video i went through essentially what was going on in the market the
Activity i saw and um like the euphoria that was in the market at that time and i spoke up on it and i i spoke in a i would call it a more bearish more bearish tone right and during that time i was uh actually somewhat bearish on the market and i was actually very very fearful and if you go back to december of 2020 and into january a lot of the stocks i was buying
Very boring stocks jp morgan um you know walgreens i built into a million dollar position throughout the month of december of 2020 right and um like like you know for me those are super super boring stocks let’s be quite honest but that’s the only place i really saw some opportunity in the market because it was just you know there was just stocks were trained had
Ridiculous valuations there was way too much euphoria in the market it was way too much moon action i call it and so i had to speak up on that right and as the year went on in 2021 i got more bullish as these stocks fell more and more and now here we are january 10th of 2022 and i am at a moment where i am ultra bullish on the market no no no not ultra bullish
Ultra ultra ultra ultra bullish on many of these stocks i’m investing in right now like to ridiculous levels like where i am the exact opposite the the feeling i had going through my body when i recorded this video one year ago could not be more opposite of what i am feeling right now because right now i feel like there’s way too much desperation in the market
Way too much fear in the market when i’m looking at these stocks trading at ridiculously low valuations based upon where i think these companies are going over the next three five seven years and i’ve been doing this for a long time so it’s not like i’m some new guy in the market and i’m like trying to figure all this out like i know where these stock prices are
Likely going over the coming years and it’s going to take miracles to get some of these stocks to not perform extremely well over the next three five seven years and so the feeling i have today recording this january 10th 2022 is literally oh you know a 180 a 180 from where i felt when i was recording that video there literally almost one year ago today and it
Does make me think at least i do wonder like you know is this kind of a sign that we’re like you know upon the bottom because when i recorded that video there when i recorded that video there that was a moment where the euphoria in the market was literally at its peak and very shortly after i record that video the euphoria left the market and what happened all
These stocks started to fall fall fall they started bounce back and then they fell more and as we know throughout 2021 it just got worse and worse and worse and into the beginning part of this year okay and so i look at this in a situation now where i’m looking at this and i’m like you know could this be a moment in time when we’re about to flip the other way
Now no one knows if it’s tomorrow or this week who knows maybe today was a low i don’t know you know square look at square today it hit a low of 133 and it bounces back that strong 144 that was you know that’s just something some folks will look at as maybe an indicator right uh look at what happened with art today look at the reversal and teledoc so i’m not going
To predict this is the bottom for many of these stocks because that’s a losing game just flat out like like you know trying to predict like this is the bottom or this is about like it’s just a losing game it’s too hard to call but it’s just it’s very interesting that i feel the exact opposite of how i felt when i recorded that video on january 13 2021 and like i
Said right after i recorded that video the euphoria levels just started going down and down and down and down and here we are in this moment where euphoria levels are pretty much at all time lows and i think it’s just it’s a it’s a matter of time before we start flipping the other way and we start getting some enthusiasm back in the market and keep in mind when
You’re coming out of these sorts of markets right very very important to keep in mind is when you start getting some rallies in these stocks people don’t even believe them right so look at a square today from 133 to 144 right a lot of people think that’s a fake rally it’s going to be right back down to 133 it’s going to invade a new 52 week low of 120 110 that’s
The way people start thinking and it could be accurate but just many times when people get that bearish things usually flip the other way right now i i was buying a lot of stocks here a day i’m gonna likely do a video on financial education three maybe in a few hours going into all the stocks i was buying today which was a whole lot much love as always guys hope
You enjoyed today’s video make sure you subscribe and have a great day
Transcribed from video
THE STOCK MARKET JUST DID THE UNTHINKABLE – GET READY for THIS NEXT! By Financial Education