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What is really going to happen when the stock market crashes what is really going to go on when the stock market actually crashes what a perfect video for today today was the worst day in the market in 2017 well i’m recording this as an hour and a half is still left in the market day it looks like you will for sure be the worst day in the stock market in 2017
So far guys were four or five months into the year so it’s a perfect perfect story to kind of talk about today in retrospect to what’s going on and the question is what really goes on during a stock market crash now i know the majority of people unfortunately that watch my channel have not been through a stock market crash have not participated yeah you know in
Coming out of the recession or anything like that that’s the majority of people that are going to watch this video right now so i’m going to kind of explain you guys and give you a history lesson what’s going to happen the next time we have a stock market crash of egg recession now a stock market crash is not the market going down five ten fifteen percent that’s
Not a stock market crash a stock market crash is a stock market going down 25 35 45 percent in a three to six month span that’s a stock market crash a 5-10 percent oly move that’s just a correction that’s just a correction guys and i’m actually welcoming a correction so the fact that the stock market dropped today i might keep going baby we got a long way to go we
All want another 10% down that would be nice to me that’s what i want but a correction and a stock market crash two total different things guys so let’s go ahead and give notice i got 7 points to give you guys today on what’s going to really happen what a stock market crash happens so you guys can be ready for that and know am i in this category or not number one
What’s the number one thing is going to happen is most retail investors are going to fly away they’re going to fly away they’re going to fly away from the stock market probably forever or maybe until the next bubble or something like that happens guys they’re going to fly away what happens is when the stock market is good a lot of people start getting in they start
Getting interested in things like that guys and when things get bad when things get ugly when the stock market begins to so often a major way when it’s a you know drops that 30% 40% in people are like they just can’t take the pain anymore which is the most retail investors they’re just going to get out there is going to sell out and the ones that probably got in
With the last year or two are going to think you know it’s a year or two in respect to you know when the recession happens now one thing i just want to say in 2017 as i’ve stated many times this channel i would say there’s like a 90 95 percent chance that there will not be a recession in 2017 in 2017 2018 i made my prediction yet but 2017 is a 90 95 percent chance
There will not be a recession so i just want to make that clear so i’m not like you know doing a doomsday video here because i don’t see doom and gloom at least in this year who knows in the future i can’t judge out that far i can’t judge out december 2018 it’s a year and a half from now who knows what what the you know a lot of things can change in the world in
That amount of time so but most retail investors will lead the market and that’s exactly what happened in 2008-2009 recession a lot of people got involved in 2006-2007 going in there and they got destroyed then i got absolutely destroyed a lot of their wealth got destroyed and many people got out of the market and have never come back and i’ve just been against
The market and some have come back in the last year or two which might be a little worrisome and i’m not saying you know anything is going to happen anytime soon but it’s just like it’s interesting to me that some of those people have come back to the market now when we’re way up here and it’s like why did you sell out when it was way low and now you’re buying
In when it’s way high so that’s the first thing guys a lot of retail investors will leave the stock market in droves they’ll lose a lot of money and they just won’t come back and just a lot of the weak minded individuals which a lot of retail investors are unfortunately i would say 80% of retail investors and it’s just painful brilliancy because a lot of people
On my channel fall into this category and i hate to you know boxty blinn but i’m telling you is a lot of people that are weak minded individuals that are just getting in stocks right now just because they’re at highs or something like that not because they’re genuinely interested in it a lot of people that are not genuinely interested in a stock more they’re just
Genuinely interested in how to make a bunk as quick as possible no different than if pokemon cards were selling real great right now there would be the ones trying to figure out how do i do have a pokemon card so i can try to flip it for a couple bucks so those people the weak minded ones the ones that weren’t really in this for the long haul those are the people
I’m talking about they’re leaving and maybe you’re in that situation and don’t hate me for that you know you can hit the thumbs down button if you don’t agree with me on that and yours you’re butthurt about it but i got to be truthful a lot of people on my channel that are all over this category of weak mind individuals that are just in it for the quick buck and
Because stock markets near all-time high and i think older i you know i saw my friend he made a thousand bucks last week i can make some money on this let me just jump in and throw some money in and those people are going to get killed and i don’t feel bad for them at all i really don’t number two stock market interest will go down drastically stock market interest
Will go down drastically like i just said when when stock market’s highest everybody’s trying to find out about the stock market everybody’s trying to learn about the stock market interest and the stock market goes way up i mean you know financial channels on tv they’re their views are generally highest when the markets doing the absolute best guy’s so interest in
The stock market goes to all-time high you see a lot of people talking about it all those kinds of things when stock market crash happened it’s like heart is like ah impossible to find someone to talk about it nobody wants to talk about the stock market when it’s been hammered i couldn’t find anybody to talk to in 2010 about the stock market 2009 when i was actually
Getting involved in a stock market 2000 i especially 2010 unless 2009 you know who didn’t want to talk about it people i want to just you know say how bad it was oh my gosh the stock market so bad was you know what a piece of crap in this and that 2010 i could million five people 2012 2011 2012 i couldn’t really find people 2013 i started to find people to them a 14
A little bit 2015 and now in the recent years obviously since i started this channel there’s a lot more people interested in stock markets but when the stock market crash happens whenever that the next one happens you guys the interest in our soft market as a whole is going to go down drastically which may leads me in point number three which will directly affect
Me what will happen is this channels view will go down substantially substantially this channels views will about not necessarily the videos i post every day but i’m talking about the the longtail content the videos i created six months ago twelve months ago that are videos that are for stock market for beginners those types of videos you know i have a stock market
For beginners video on this channel it brings in 500 to 700 views just not one video per day i bet you any money in a stock market crash that video will go down to getting about 50 views a day i can almost guarantee it i would bet any money on that you’ll go down to about 50 news a day and i’d be blessing those 50 people that are looking into at that time because
Those are going to be the real winners guys but yeah i can guarantee you that would happen use earnest channel go way down book sales this book and it would code a in a heartbeat because no one would be interested in stock market a lot of people are not interested when things are bad they’re just like oh man that’s a scam that’s bad i can lose money look at all my
Friends lost money my family members lost money everybody’s losing money i don’t want to even be anywhere near the stock market i mean if this book selling let’s say 50 to 100 units a week right now we probably go down to five units a week everyone i just know that like so views on this channel would get killed i would get affected by that book sales would go down
Drastically like the whole like stock market thing would go down a drastic amount guys it would because the weak minded individuals which make up a lot of the views and things like that the ones that just come on there like i talked about just trying to make a quick buck and try to get out they don’t really they’re not in it for a long game they’re not passionate
About the stock market those ones are going to be swept to the wayside and they’re not going to be interested in anymore at that point guys its facts number three are student will begin to learn about the stock market remember i said there will be the 50 people that are coming in to learn about or that time those are going to be the winners those are the ones that
Can uh you know when everybody saying don’t go that way they’re the brave one to say you know what i think this is the way to go they’re the ones that are the contrarian that are saying you know what everybody’s running from it right now now’s when i need to go learn about the stock market it’s at all-time lows or multi all-time lows obviously it’s impossible
Because we have to go to like one point and something like down the dow but at you know lowest they’ve been in two years or three years or five years or eight years or whatever this scenario is and they’ll see opportunity there i’d be like you know i got to learn what i got to learn about the stock market no different than i did when i was in 2009 when i was learning
About the stock market first started investing in stocks i bought my first stock in 2009 it was the depths of the recession it was the time no one wanted to be in the stock market it was like you know one of those western films when they’re walking through the town on a horse and there’s no one in the town like that’s how i felt when i was getting involved with
The stock market it was me and with me alone and no one else cared and if i told anybody else getting involved they said don’t do it jeremy don’t do it so strong minded people were getting be into getting up market and they’re going to be big winners and that guy’s number five over leveraged to heavy capital structure businesses will fail what happens is during
Good times a lot of companies take out a lot of debt okay and i’m not just talking about not necessarily talking about big huge companies like the ones we might invest in i’m talking about like mid-sized companies companies that might have 50 employees – 500 employees okay those are the type of companies i’m talking about that might take out a lot of debt might
Put their capital structure too high meaning they’re hiring in too many employees their costs are too high all those kinds of things but they’re getting away with it because the economy is good right the economy is good and making making you know do their things and whatever’s needed they can get it done right so that happens and then also you know a recession
Happens so stock market crash happens as all happens you know no the world’s just unraveling worlds in flames and also 50% of the customers are gone the 50% that are left or spending much less with them than what they were spending before and they have a ton of debt and they have way too heavy of a capital structure so they be in the club jobs like crazy it’s
A lot of them they just don’t cut the jobs fast enough they’re losing money too fast they can’t pay their debt and what happens a lot of them go out of business or they sell for a basement level price to some other big company who might have been on in a little better position at that time guys that happens that and that will happen number six a player a player
Entrepreneurs will start successful businesses every single time there’s a recession every single time you know stock market crash happens every time you know the whole economy goes down there’s some a player entrepreneurs that start successful business is about in that timeframe and they actually build them to be great big businesses it constantly happens guy’s a
Player entrepreneurs will come in and they’ll see opportunities where some of these businesses failed and they lost customers and they’re going to say okay well guess what economy is probably going to get that good because what else happens economy bounces back six months twelve months year and a half later those a player entrepreneurs are going to see opportunity
See customers that maybe used to be that old company’s customers they’re going to go after those they’re going to start a business that goes after those customers they’re going to win those customers and they’re going to win a whole lot more customers because they’re they’re going to be in a position of power and a lot of times if they’re starting a business might
Only be one person or two can be two people starting it so their capital structure is like wait out here compared to the one that was like way up here right so they’re coming in and they got the advantage they got the ball in their court because they can pivot they can do whatever they need to do quick and they don’t have to worry about all these hundreds of
Thousand dollars or millions and ten million tens of millions of dollars of cost each month so a level entrepreneurs they’re going to come in they’re going to make successful businesses in that time to act times to start a business because someone you don’t have a lot of people spending money so you’re going to know if you can make a successful in your first year
In a recession or a recession type environment then you’re ganache for sure should be good like when things get better right so you’re going to know right off the bat man i need a success of this in this type of economy give you a lot of confidence that you’re going to be able to succeed in a good economy right so that’s a big thing there guys and number seven
Last one is businesses that have always focused long term are going to arrive in this environment doesn’t mean they’re necessarily make record profits that’s not what it means at all that just means if they focus long term they’re going to do a lot better than their competitors they’re going to outperform their competitors where the competitors are made to go
Unprofitable whether in competitors might go bankrupt they’re the ones that may have been focusing more short-term making short-term decisions the the great long-term run company that’s going to be succeeding and that one’s still going to be profitable and they’re still going to find a ways to make money and they’re going to be finding ways to take the customers
They used to be with that company away because they’re in a better position financially guys it always always happens long-term winners are the one the ones that didn’t get over leveraged when things were great those are the ones that win because a recession is a horrible thing to waste and the companies that you know have some money on that balance sheet have
Some cash to spend those are ones that are going to succeed because they’re going to be able to buy assets at basement level prices right they’re going to be able to buy you know assets at this price whereas before other ones might have been buying assets at this price you know whether it’s land that they need whether it’s building whether it’s you know in more
Equipment whatever it is they pretty much want or need maybe there are some in stock price you know maybe it’s a public company they can buy that share so cheap at that time if it’s during a recession so those companies that are focused more long-term they’re going to be able to benefit more than anyone in a reception type environment and just kind of like closing
My thoughts on like a recession stock market crash and whatnot it’s good it’s healthy it’s good and it’s healthy it’s painful absolutely but you know what i look at it as like life white frame there’s you’re born and there’s new life to a new human and there’s death right and that’s always kind of painful but out of death comes some good things because it washes
Away the old and it brings in a whole new thing and hopefully as humanity goes on as people die off then get a little better and we get a little better and we fix things a little bit better so it’s just a natural progression of life and that’s what happens kind of during a stock market you know juster no economy in general i just view it as life and death you know
Things are great and things are coming up in life and death happens and then out of that death new life briefs form in a lot of companies die off right during those times and a bunch of new companies are born i mean look at the amount of companies that were built from 2000 let’s say 2000 we didn’t even go 2008 because that’s really when the recession happened or
Started happened right 2008 to 2010 look at how many companies were start in that amount of time a lot of them guys a lot of them and a lot of them are very successful now so hope you guys enjoyed this today just talking about what’s going to happen when the stock market crashes what’s going to happen when the next recession comes let me know what you guys think in
That comment section if you’ve actually been through it before like i have it’s an interesting time it’s a very interesting time in and i can’t say that i don’t look forward to it a little bit because i know i’m going to have so many opportunities out there to take advantage of so many different things that i’m just kind of salivating right now anyway and that’s
Kind of like a it’s funny if you watch gary vaynerchuk on his channel he preaches that a lot you know he’s always like i can’t wait for the world to burn and i’m kind of like i kind of agree a little bit with you mr. chary vaynerchuk there because it’s like you know there’s a lot of people that are these peacetime generals like he always says and you know are just
Kind of getting by right now because the economy is good and they can just float their boat right but when things when the hits the fan it’s a total different ballgame guys hope you enjoyed if you just came across this channel you may want to subscribe we talked personal finance we talked entrepreneurship i talked these stock markets and most of anything thank
You for watching guys and have a great day you
Transcribed from video
In the STOCK MARKET CRASH this will happen! By Financial Education