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Guys i am scared for stock market investors out there i am scared for stock market investors i want to tell you three reasons that are really worrying me out there that i am seeing okay now my opinion on this is dramatically different than anybody else’s opinion my opinion here i’m gonna give you today is so far different than what the average retail investor is
Thinking right now and so much different than what the average talking head on cnbc or bloomberg is talking about right now look what is scaring me right now is so much different than the average person right now and i just want to kind of get into all this and just kind of share my take on what is really going on and i’m seeing this activity over the past few
Weeks and i’m seeing this over the past month and it’s getting more and more worrisome for me and i’m just looking at this and i’m like really really this is this is going on right now this is going on guys so i hope you enjoy this hit a thumbs up if you enjoy me sharing this with you here today okay so starting out here at number one the first point what do these
Numbers represent 21 18 point six eighteen point four what do these numbers right here represent they represent the forward p’s of coca cola procter & gamble and pepsico 21 eighteen point six and eighteen point four these are seen as the save stocks and i’ve seen people start to sell off other stocks and try to flood money into the safety stocks this safe
Haven stocks let me just tell you guys something about coca-cola procter & gamble and pepsico okay those companies have virtually no growth i mean you can make an argument that those companies are literally starting to go backwards okay and if you look at their numbers there’s getting weaker and weaker these type of companies should not be seen as the safe
Stocks let me sell off all these stocks and going to these at these type of valuations if these were at let’s say a 10 or 12 for pe or somewhere around there then we can make an argument that okay maybe they are safe havens you can flood some money in them and you know even if a recession came or even if we had hard times or something yeah people would still be
By coca-cola and tissues and things like that right but right now guys it does not make sense to put money in stocks that literally have no growth at all these stocks are an absolute joke okay coca-cola pays out the majority of its money and dividends like they hardly have any money left over after and their net income it’s insane guys and this is these are the
Stocks people are flooding money into right now and i’m looking at him like i would if you had told me i could invest in those stocks or i could put the money under my mattress i would put the money under my mattress in a hot second okay i do not want any piece of coca-cola and procter gamble and pepsico because there are those safe stocks and they’re trading at
These type of forward peas okay these are type of forward peas that if you’re a company that trades at these type of forward peas you should have some pretty strong growth behind you these companies are literally on the verge of going backwards with their businesses okay so that’s the first part is i’m just seeing people say these are safe havens let’s put money
In those stocks and i’m looking at i’m like really like like whoa okay the second reason okay the second reason let me start out this by explaining there are two different types of growth stocks out there okay growth stocks meaning stocks that are growing very fast you know growing revenues at a 20% plus clip there are two different categories of growth stocks
One category is growth stocks that have negative net income that literally lose money all the time that literally burn cash okay the other side of growth stocks are companies that are growing revenues 20 30 40 plus percent and they actually are making money on their bottom line and are growing that very fast as well okay and have a diversified business those are
Two different kinds of growth stocks what i’m seeing out there is is it would laugh my ass off this is what i’m seeing i’m seeing people sell off great growth companies right now in the face of lotty’s growth companies are down 30 40 50 60 % already and no people are deciding oh let me sell off these growth stocks okay let me tell you about a good old-fashioned
Shakedown what a good old fashioned shakedown is when things have already been damaged and you sew up a great piece of something to somebody else and they say thank you for that i’ll have fun with that okay and that’s exactly what’s going on right now people have seen their growth stocks that you go down and down and they sell them off regardless of what pose is
Going on with that company you could make an argument that maybe it makes sense to sell if growth stocks that aren’t making any money on the bottom line that are burning cash that might make sense okay but when you are selling off growth stocks that have unbelievable bottom lines facebook’s alibaba’s these type of companies the google the world when you’re selling
Off those type of stocks that literally regardless of what happens in the economy they’ll still be growing phenomenally okay it doesn’t matter what happens in china alibaba is still gonna be a growth piece it doesn’t matter what happens the united states facebook will still be growing google will be growing and if those companies aren’t growing and literally we’re
All just being like food lines like getting bread for ourselves okay so they’re being literally no hope out there okay those are type of companies that people are selling off and there’s the best part some of those companies are trading at lower pease right now than these jokers there’s no way you can tell me that procter & gamble is a safer business model than
Google there is no way possible you can make that argument okay no way possible okay anybody can make at issue i could buy any box of tissues out there okay google and youtube and all these things that google has in the google cloud that so many companies rely on those things are not going anywhere okay that’s the fact of the matter so you have a situation where
People are selling off some of the best growth companies we have in the world right now that have unbelievable bottom lines that have unbelievable cash on their balance sheets very low debt if no debt at all you have people just selling them off in saying oh just because i’m down in this position or it’s gone down a bunch i want to get out now and then remember
Every time you sell a share there’s someone on that opposite side that is buying those shares that same thank you very much thank you very much for selling me facebook shares that 145 in the worst part of this number – the worst part this is the worst part is when these ones come back they come back so fast that the retail investors don’t ever even have a chance
To buy them because it happened at such a fast rate the way these talks go up a perfect example is tesla this past week tesla going into this week was like $257 on monday okay by the end of the week it was 330 dollars and that was even in a very bad week for the market it went from 250 to 330 in a week’s time okay and this is a type of stuff that happens with gross
Stock was low in all sudden they get hot and the retail investors they sell out their shares at bottom basement prices and then all sudden things go up so fast and then all sudden they’re like oh my gosh it went up 30% 40% 50% 60% so fast maybe now we’ll get back in they get it back in it’s so late in the game guys it’s a good old-fashioned shakedown and i’m seeing
It out there in is so sad to see you guys it is so sad to see people selling off great growth companies just because of flight off they get scared okay warren buffett would tell you to sell a great company just because it went down is one of the dumbest decisions you can make okay that’s coming from warren buffett not from me okay that’s his words not mine you want
To go against warren buffett go get warren buffett you’ll lose that every single time okay the third point the third point that i am seeing out there from stock market investors right now is i’m seeing some stock market investors think that because the markets have had volatility lately and this and that and all my gosh was these worries out there that it would be
A good idea to sell all their stocks and go into gold and i can just tell you that is one of the worst decisions you can ever possibly make okay gold has gone nowhere in 10 years look at the ten-year chart on gold it’s pathetic okay gold if you’re bidding if you bought gold like six or seven years ago you’re probably down massively on gold right now literally ten
Years gold has gone nowhere okay ten years ago gold was at somewhere around nine hundred dollars an ounce it’s basically gotten nowhere you could have made more money putting your money on cd accounts they’re putting your money in gold that’s how bad we are talking guys literally you could have put your money in a cd account guaranteed money and made more money
Than had you invested in gold it’s a horrible horrible decision to say ooo because the markets are getting rough let me put let me put my money in gold gold goes nowhere and it’s basically counting on p a lot of people being scared and trying to flood their money into gold and it literally makes no sense guys it serves no utility out there all it’s not like an
Underlying business an actual business that serves a purpose what are you gonna do with your gold bar and i don’t i’m not the only one with this opinion once again warren buffett has the same exact opinion on gold you can look it up watching youtube videos here on youtube okay what are you gonna do with the gold bar shine it up all that my gold bar looks so nice
It literally serves no utility it doesn’t even pack money anymore doesn’t even back money it’s completely worthless unless you’re a rapper who wants a gold ring or something like that like give me a break guys and people are thinking let me put money in gold and ask that literally has done nothing for you for a decade now a decade it has done absolutely nothing
For you okay and these three things i’m seeing going on and it just scares me because i’m like i’m seeing people sell off their great growth companies that have unbelievable futures for the next three to ten years and they’re selling them off like are like oh let me just get out of this talk let me just get out of this talk because it’s going down let me just get
Out without looking at the underlying business which is phenomenal most these companies are or have revenues growing up 30 40 50 percent where the profits are exploding their balance sheets are unbelievable okay these some of these companies could literally go for 20 years and with no net income and still be okay because they have that much money on the balance
Sheet okay and people are flooding money into these stocks like procter and gamble and coca-cola and pepsi and i’m like oh seriously you’re putting money in businesses that are dying it’s like some of the worst decisions you can make out there guys these three things are really scary to me out there and it’s much different than what’s scaring the average person
I’m just watching this i’m just sitting back watching this and i’m just i’m just laughing because it’s gonna be it’s gonna be quite fun it’s not gonna be fun it’s not gonna be fun it’s gonna be interesting to see how all these investors get screwed over so bad by selling off these great growth names and then all sudden everything’s going to die down another three
Six twelve months and you know things get back to normal in stock skyrocketing in in the retail investors all miss out on this the bad fund managers all miss out on this it’s the same story over and over again i’ve been this game for a decade now and it’s the same rigmarole i see every single time it’s just it’s it’s sad to see guys it’s so sad to see but it’ll
Go on it’ll happen again next year i’ll happen the year after hopin the year after the year after it’s gonna continue to happen for all of time and it will never stop so anyways hope you guys enjoyed this as always thank you for watching and have a great day
Transcribed from video
I'M SO SCARED FOR STOCK MARKET INVESTORS By Financial Education