The Banks just Warned The Stock Market | The Coming Collapse

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Smokers folks do we have a lot to talk about in today’s video i got to show you what’s going on in the banking sector on wall street some news got announced today that kind of in my opinion went on the dl and no one’s really understands kind of how to view this news and i want to show you exactly what happened here and why this is such a huge deal and what it really

Means for the overall stock market so this is going to be a very action-packed video we got a lot to get into so let’s just get straight into it hope you guys enjoyed as always thanks so much for joining me first thing i want to look at here is s p 500 heat map for the a trading day here today a lot of red out there today a lot of red not like a viciously red day

Where it’s like end of the world type pricing action but a lot of red except for a few sectors it was definitely a flight to safety today or what is seen as safety at least look at the healthcare stocks healthcare plans look at insurance stocks look at utilities here today and the one thing that no one wants to see bright green other than maybe if you own these

Type of stocks is the energy sector oil in gas stocks bright green no one wants to see that right now once again other than if you own those type of stocks and basically how it’s been working at least in the market the past month or so these babies bright green everything else goes red that’s just kind of how it works uh at least recently and if this goes red then

The market turns green and why why are all the energy and you know gas stocks up today well all the oil and gas stocks are up because oil is having a good day natural gas having a good day we have two main factors that are going on oil prices edge higher ahead of g7 talks on new russian sanctions that’s obviously pushing price up the second thing is guess what’s

Coming up july 4th weekend huge travel holiday you know should be very very busy out there on the roads obviously a lot of people flying around you know energy should be you would assume at least hot for the next week or two and we’ll see after that right but it’s in terms of like bullish catalyst for the short term between july 4th weekend and these new russian

Sanctions potentially here you know obviously it’s going to be uh very bullish in the short term for oil and gas prices but you know you’ve got to remember when it comes to these these things is they’re very short-term moves right you know everybody’s getting excited about july 4th holiday and what that’s going to do to obviously demand on the demand side well you

Know once july 4th weekend passes then it’s like what happens after that so you know this is just how these markets work they get very caught up into the short term and what’s going on there right you look at all the oil and gas stocks here today that i have on my watch list valero devon energy winning marathon phillips eog apa which is old apache i don’t know if

How many of you guys been in stock mark for a long long time but this used to be apache now they’re called apa corporation exxon mobil occidental chevron shell chesapeake bp how chesapeake never went bankrupt is still beyond me anybody’s been in the market for a long time you know what how much debt they had at one point conoco phillips all these babies super green

Today obviously valero and devin being the big dogs of the bunch in terms of the greenness eight percent for valero here today devon energy seven and a half percent move there and you know what this makes me think seeing the market start out red here this week it brings me back to something that happened this weekend and um by the way big tech everything’s just red

Red red across the board here today like you know except apple apple just remained unchanged but that big thing is this remember i brought this to you guys attention jp morgan sees portfolio rebalancing lifting us stocks seven percent this week well shoot this is like you know when you start out a race and you’re in like last place and you need to try to catch up

To everybody because we just started the weak red all these stocks red red red red red right red dead redemption out there so here we are jp morgan um now we’re going to need to play a lot of ketchup so these next four days if we want a chance you know because right now the markets aren’t cutting the mustard wait a minute wait a minute that was too much okay that

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Got in the stock brokerage space now sam has denied that they’re trying to uh buy out robin hood so we’ll see what happens with that i don’t have any information on that whole situation if you’re wondering i don’t know uh that’s a whole up in the air thing but uh yeah ftx get up to a hundred dollars in free crypto and use referral code holy smoke is when you set

Up your account and make sure you take advantage of that once again get free crypto and every trade over ten dollars and i’m really excited for what they’re going to do in the stock brokers space over time as well now i want to bring you guys to your guys attention fintech and how far these stocks have dropped in such a short amount of time i don’t know how

Many people are really caught up on the fintechs square stock for instance block is down over 75 in the past 10 months over 75 in 10 months in these aren’t like small companies either even after this massive drop square is still a 40 billion dollar market cap and it’s in you know we have never seen drops like this in recent history other than two times we saw

This happen in the great financial crisis some of these stocks get hit you know 60 70 plus percent and we saw this in the tech bubble but outside those two times we haven’t seen any time in you know past 30 40 years stocks drop like this right paypal look at this stock 74 down in nine months and it’s a 87 billion dollar mark cap at the one point it was several

Hundred billion dollars of market cap i mean this is the same amount of time it takes to make a baby man uh you know 74 come on you got to be flipping my flapjacks a firm oh my gosh eight months the stock is down 86.5 this is a buy now pay later company a direct play on that i mean wow wow so far eight months this stock is down 74 i actually kind of like so far i

Don’t personally own the stock but i gotta say i’ve been impressed by their conference calls and their clients and everything like that but my gosh guys seventy four percent eight months down for so far upstart the last eight months the stock is down almost 89 and eight months for upstart oh coin coin 84 down in the past eight months oh my gosh coinbase by the

Way they just got downgraded but goldman sachs here today so that’s why stock was down another 10 here date basically goldman saying that uh obviously because coin makes a ton of money off of you know people trading crypto crypto market is has not been in a very good place as we all know right and so volumes likely just aren’t going to be there at least for this

Past quarter and at least probably for the rest of this year and so therefore coin’s not in the best position obviously 84 down there coin hood 10 months stock down 87 and that the worst part is this stock was up 14 today on the whole rumors that uh you know ftx might try to buy robin hood so it was up 14 today and still the stock is down 87 percent in the last

10 months like it’s very rare you see a stock down 87 and it was up 14 on a day like oh my gosh man but the fin the fintech devastation has just been awful awful to be honest you know what hasn’t been awful and this is good to see commodities somewhat coming back to earth and starting to move in the right direction oak futures down again today love to see this

Okay and obviously for all oatly shareholders we need to see oats continue to come down and down and down corn was down here today wheat was down here today you know and when it comes these commodities something very important to understand about these commodities market is when it comes to commodities it’s in like many things in the financial markets it’s not

Just as simple as supply and demand you also have a lot of people that are trying to place bets that this commodity is going to go up or this commodity is going to go down similar to stocks right and so sometimes these these markets can work perfectly in terms of like oh the supply is going up so the price has to drop and you know demand’s going down so the price

The price has good like sometimes it works perfectly like that but many times it does not and many times how these markets work is on speculation and oh i think oats are going to go up so let me try to buy up oats right and so that’s just it’s it’s you know and they do have all types of instruments on on how these things work and so there’s something important to

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Always remember is the commodities market has no perfect supply and demand game it’s very much just like the stock market a game based upon speculation and belief that this thing’s going to go up or down in the short term here okay so i do like to see that we need to see commodities continue to come down if commodities continue to come down and hopefully we can

Get oil and gas down after the you know the july 4th holiday if things like that happen it’s going to help the inflation numbers get a lot better it’s going to obviously help the economy because you know the more expensive oil is the more expensive gas prices are the more expensive all these commodities like oats and corn and wheat and all this stuff is the more

Expensive food is so that’s not obviously an ideal situation it makes inflation numbers look worse and it takes money out of people’s pockets at the end of the day because that loaf of bread is more expensive you know that’s just the way it works so let’s hope things continue to go down there okay some good news for the chef shareholders uh this just came out a

Few hours ago the chef is going to be added to the russell indexes okay the russell micro cap index so yeah excited about that and that’s good news a lot of these 2020 2021 companies that went public in either 2020 or 22.1 are going to be added to different indexes over the next few years and so step in the right direction man just the first of many as far as

Travel stocks went all these babies red dead redemption today why well simple oil price up oil price up these stocks down it’s almost as simple as that and that’s just if you follow a correlation between these travel stocks last few months and oil price that’s just the way it works oil prices go up these stocks go down oil price goes down these stocks go up it’s

Literally it’s pretty much as simple as that the last few months and you can find the trajectories it’s almost identical right and yeah i mean a lot of these talks have just been hammered a few of these stocks came back pretty strong last week so you know like ccl was down like eight you know now it’s up to ten so i came back pretty strong but they’re still down

Massively okay now this is huge news and and i want to explain why this is such huge news and what this exactly means okay so this came out of jp morgan today jpmorgan chase’s board of director intends to maintain the quarterly common stock dividend of one dollar per share in the third quarter of 2022 in light of higher future capital requirements the firm’s quarterly

Common stock dividends are subject to approval of the board of directors at customary times that the dividends are declared uh there’s so much more than that meets the eye there okay jamie dimon chairman ceo jp morgan the federal reserve’s 2022 ccar stress test once again shows that banks are able to source uh to be a source of strength in the broader economy while

Withstanding extreme market shocks we continue to maintain a fortress balance sheet including the including robust governance and controls strong revenue growth and profit margins and we remain committed to serving our clients and customers we will continue to use our capital to invest in grow our market leading businesses pay a substantial or sustainable dividend

Not substantial dividend a sustainable dividend and retain capital to fully satisfy our future regulatory requirements okay now the reason this is huge what i just read to you there essentially is you know city jp morgan they decided to not raise their dividends essentially okay and several of the other banks did very very small raises of the dividend now why

Would you not raise your dividend if you’re somebody like a jp morgan well a big factor could be potentially you see some storm clouds on the horizon dare i say a hurricane and so therefore if you see a potential weakening economy and you’re starting to get worried about that it would be prudent of you to not raise your dividend right and to maybe a best case

Scenario just keep the current dividend you’re paying out because you’re not very confident if jp morgan was very confident you know maybe they could have raised their dividend and so this is a situation we’re looking at here where this shows you that i think the banks are a little worried and a little concerned about what’s going to happen in overall economy and

What that could mean for potential defaults on loans and things like that and is there any sort of systemic problems and so i think this is jp morgan playing it as safe as possible right now jb morgan can’t go out there and cut their dividend right now if they were to cut their dividend that would send a signal of like oh my gosh like what’s going on jp morgan’s

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Cutting their dividend are they really that scared that would almost cause like you know borderline panic in the market but in my opinion looking at this and viewing this that they’re not raising their dividend i think it’s a pretty big deal now the only the only one that really raised their dividend a big number was goldman sachs goldman sachs decided to raise

Their dividend by 25 so you might see that and you say okay well some of these banks yeah they’re you know most of the banks are either not raising their dividend or slightly raising him but but goldman sachs goes out there and raises 25 so that means all clear right goldman sachs knows everything goldman sachs is really really smart so the they’re they’re they’re

Raising big time well a lot more you got to dig into these things man you got to dig into these things and it’s very important and this is why if you’ve been in the market for a long time you kind of know what’s been going on for a long time here okay here’s the deal goldman sachs in 2009 had net earnings of 13.3 billion dollars okay there was in a dramatic

Crazy market they had arguably the best year in the company’s history or certainly one of the best years okay and you say well wait a minute so goldman sachs is raising their their dividend they feel pretty confident that they can make money don’t matter what happens here right and if we dig a little deeper here pulled up their 2009 annual report look at the

Difference between 2008 and 2009 okay so 2008 the company does like nine billion dollars in trading and principal investments however 2009 34 billion dollars in trading and principal investments okay and so in a messy market goldman sachs can still make really good money like really good money and potentially have the best year they ever had right and this was

A lot of bets paying off and you never really get to dive deep into these bets because i even was reading through that annual report and it it’s so funny how goldman sachs doesn’t really speak too directly on what exactly generated them 34 billion dollars in trading and principal investments but we know it happened and it’s a massive number but they don’t really

Get into the details of like oh we made you know 2.6 billion dollars from this trade and we had this derivative that brought us in five billion dollars and we had this thing because the fact is goldman sachs can make bank from a volatile market and this was something that caused a lot of people to be very very frustrated because they saw all this money right net

Earnings of over 13 billion dollars this is something that helped prompt you i don’t know if you guys remember this uh back in the day but it was like this whole like um you know people are even like standing with signs outside of wall street and whatnot they’re very very upset at wall street because wall street got bailout money and then next thing you know they

Were making all this money then also they found out about how wall street was basically you know how these different programs for like bundling mortgages and things like that and how much of a mess that caused in the market and the the collateral the collateral debt obligations and everything that was happening there and this caused a lot of frustration and then

To add insult to injury was goldman sachs making so much money coming out of that situation right well most people were you know we had unemployment near 10 percent we had the economy in a mess and then goldman sachs was like oh yeah we just made 13 billion dollars of net earnings and everybody’s like uh what what okay and so you know you can’t get too confident

I guess you can say about seeing goldman sachs you know raising their dividend 25 because this is a company that they’re very confident that even if the market went crazy bad whatever they would still be able to make bank because they’ve done it before and they’ve proved that before that’s goldman sachs at the end of the day okay and so you know this is going to

Be a very very interesting week in my opinion for the markets because you know we have this going on everybody’s looking at this and like okay where’s our seven percent this week we started out the week red and uh it’s going to be a busy week man guys there’s going to be a lot going on and uh we’re going to see how it all plays out so hope you guys enjoyed this as

Always thank you so much for joining me i appreciate you make sure you check out ftx us that will be the first link in the description i’ll speak can comment down there and get you a free crypto and don’t forget to use referral code holy smokes much love and have a great day

Transcribed from video
The Banks just Warned The Stock Market | The Coming Collapse By Financial Education

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