The Stock Market has Me So Angry! Here is why!

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The stock market has me so mad i am so angry at the stock market okay public account today was up four thousand seven hundred and thirty two dollars i made five figures today five figures okay and we wanna say i’m mad i say i’m really mad okay when i saw the stock market today that was my exact face i feel like i’ve had my flapjacks flipped like 50 times by this

Market okay let me explain in this video why this market has me so upset right now okay i’m really mad let me explain this okay before i say that just thank you subscribers okay holy smokes we’re gonna hit a half million subscribers here over the next few weeks i just want to say thank you for being subscribed okay nasdaq let’s look at the nasdaq you know bottomed

Out right around 6600 back what was that about two months ago now right and it goes on this crazy climb i mean it’s absolutely parabolic nutso climb to over 92 hundredths as of just a few days ago right nasdaq as a few days ago was up over 20% on a one-year chart twenty flippin okay okay let’s go ahead and look at this let’s just take a peek okay this is now looking

At a one-month chart for the nasdaq composite look at the climate went on and it was finally starting your market was finally starting to go down what do you know oh my goodness it was finally starting to dip a bit it was finally doing it was they’re down to about eighty seven hundred or so and then today things start out red and then it goes up and up and up and

Up and the mysterious buyer that nobody knows who it is just buys up the market and buys it up and every time that market tries to dip the mysterious buyer that mysterious organization is just buying and buying and buying kay new claims for unemployment insurance came out today almost three million in the last week almost 3 million economists expected 2.7 million

So it was worse than everybody expected which 3 million is a disaster ok and it was worse than everybody expected and somehow mysteriously the nasdaq climbs through out the day how does that how does that make any sense guys what in the world is going on look at this chart you want to see one of the most startling charts you’ll ever see in economics and your entire

Life look at this chart here this is initial claims since march ok look at the great recession on this chart it barely shows up i mean literally the great recession looks completely irrelevant compared to what is going on now completely completely completely irrelevant it’s not even close look at that i mean oh the great recession it was so bad oh my gosh remember

How many people were unemployed oh man that really sucked and then you go ahead and look at a chart and it’s just a small blip it’s a baby compared to what’s going on right now when it comes to initial jobless claims and unemployment insurance claims it’s it’s extraordinary let’s be very clear 36 and a half million over the past eight weeks that number is it’s

Just mind-blowing simply mind-blowing and i know what if somebody is super super bullish and super super optimistic on this whole scenario and of course you’re gonna say well as things open back up those numbers should come down and they should come down but just because they start to come down doesn’t mean they’re not incredibly high still and ridiculously high

Okay the government knows they have to continue to support things the government is very worried that when things do open back up over the next few months it’s not gonna be the way it was i mean let’s be very clear about that the white house just came out news is breaking within the last like 30 minutes the white house would likely support a new round of stimulus

Checks have already had a ton of stimulus checks sent out there the white house wants to send more stimulus checks you know the dems they just announced yesterday they want a three trillion-dollar deal and that one included a bunch more stimulus checks moneyto state and local governments and you just look at this it’s pretty clear on both sides of the party they

They realize we need it we need to pump more money out there what we’ve done and the numbers have been you know just startling the numbers out there that the government has put out there for trying to support the system right yeah they still feel like it’s not even close to being enough we’re gonna need trillions more pumped into this that’s extraordinary okay

Meanwhile as of today the nasdaq is up over 13 percent in the past one year up over 13 percent in the past one year or you kidding me you must be hitting me okay the sp500 is break-even in the past one year you’re telling me that that you know 12 months ago things were the same as they are today in valuation should be the same as you know basically 12 months ago

How how what reality does that make sense literally what reality does it make sense for the stock market to be the same exact as it was twelve months ago i would love to hear an explanation for that because that makes absolutely zero sense and never mind the fact that the s&p 500 was actually up over 4% in the past 12 months as a friday that was a hole that

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Was like how how does that make sense okay let’s just run through a small list of the bad news i couldn’t write it all out it would have taken me you know a half an hour to do that okay he was just some of the bad news unemployment sky-high literally the highest since the great depression and i believe that unemployment will probably be above 10 percent for probably

About a year if not longer than a year okay but the fact is unemployment sky-high right now number two company earnings are down massively we just had the first earnings season that was only you know it was kind of affected by roni roni right which was the month of march and we just had those earnings almost every single company reported you know pretty decently

Down earnings year-over-year unless they were very very select stock that somehow benefited and those were few and far between and never mind that there’s a coming quarter it’s gonna be way worse i mean get ready for the real ugly earnings this next corner oh my goodness okay well you know the the real ugly earnings are coming okay number three roni rona’s not

Stopping this hasn’t ended it’s not over it’s not like whoo we won against roni ronan oh it’s still going on every day the numbers keep going higher and higher and higher okay number four bankruptcies you know even though the feds trying to backstop everything they’re still gonna be a lot of small business bankruptcies midsize business bankruptcies and even some

Big companies that go under yeah i mean you even even with all the back stops you still can’t support it all number five balance sheets of every single corporation pretty much out there has gotten worse over the past year than what it was and there might be one out of every 20 stocks that actually has a better balance sheet now than they had 12 months ago but i

Can tell you almost every single sp500 company out there their balance sheet has gotten worse they’ve had a take out a bunch of debt they had a you know drawdown on credit facilities they’ve had to do whatever it takes so they could make it through this big roni roni mess which relates to number six we don’t even have a fax for roni roni yet and once again this

Is still going on we haven’t you know found the cure for roni rona or anything that will help with it that’s just you know we’re still in the same scenario we’re in months ago number seven the us oil and gas industry is home you know it’s on the it’s on the verge of being completely done most of these oil companies that were drilling on the ship they’re done

And they might never come back because even if oil prices get back to fuel $40 $50 the us players still wouldn’t really make any money at those prices and even if oil goes to 60 or 70 which is where you know the us players would kind of need if they’re gonna actually make some money a lot of the banks are they really gonna loan money to those u.s. you know oil

Players that’s a that’s a big industry and how many jobs are created adjacent to that industry you know it’s hard to see anything in this industry surviving okay then industry is pretty much done number eight huge industries need bailouts okay what’s wrong i mean think about the airline’s industry the airline’s industry i mean it went from you know it airlines

Are awesome and they’re doing so good – literally pretty much every single us airline would be bankrupt right now all their stocks would be at zero today zero like robert deniro back when he was in last action hero if it was not for the fact that the government literally bailed these guys out think about that so plus would probably be zero today american airlines

Probably zero today and all the rest of them as well and if they weren’t zero already they were going to be zero the government had to bail them out think about that and that’s not the only industry there was a ton of other industries okay can keep in mind by the way the banks are basically government banks now okay even though they’re they’re like oh yeah we’re a

Private bank now pretty much know your government bank now okay number nine gdp declines are like something we’ve never seen before pretty much in modern history and throughout history like wait till this next quarter comes out the gdp numbers are gonna be it’s gonna be the worst we’ve ever seen let’s just put it that way and definitely in modern history is gonna

Make everything else look like a complete joke a third of the population can’t even go out because of age you know obviously if you’re afraid of getting brony ronin it’s an age-related thing as well as if you have some underlying conditions there so a third of the population they can’t even go out man even if they wanted to go out and do stuff they really can’t so

You know that’s some other things factoring you know people think well some people are gonna go out and they’re gonna do stuff sure some people are but what happens when a huge segment economy can’t still these are things to think about in by the way i could have wrote down another 10 20 30 bad news things are just some of the biggest that come to my mind academia

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Include things like in fact that a lot of these corporations aren’t even matching 401 k’s anymore a lot of them have halted pension plans and you know oh my goodness we could go through so many things okay and what do we have for the good news what is it an actual good news what is stimulus checks are going out hopefully people go out and spend that money i don’t

Know maybe they’re just spending that money on the robin hood app i don’t really know but the good news is stimulus checks have gone out and that’s that’s you know money has been credited into people’s bank accounts number two the fed is trying to buy everything in sight it doesn’t matter what it is the fed is trying to buy it right now in number three government

Wants to keep pumping out money and this is on both sides of party they’re both very confident it’s just you know how much money they put out there what it’s money but at the end of the day you just they just want to put money money money get it out there get it to people get to businesses who cares where it goes we just need money in the system okay and so when you

See the bad news case and you see the good news case tell me once again why does the sp500 deserve to be breakeven over the past 12 months because it just doesn’t make sense to be quite frank it just doesn’t i mean it it’s ridiculous and i know some investors are saying well you know the nasdaq’s not at an all-time high right now it hit like ninety eight hundred

Back before roni rona took off okay so we’re not there yeah yeah we were up to like ninety two hundred approaching 90 300 but anywhere not about 9800 okay keep in mind when it hit 9800 it did that for like a week okay for like literally one week and things were dramatically different than and dramatically different in a good way not a bad way the world has changed

In a massive way so the fact that it’s saying well it’s not quite up to all-time high yet i think that’s just a ridiculous completely ridiculous way of looking at it and who is buying this market this is what really really makes me mad i’m like who is buying this because the fact is the majority of big investors are not putting money in this market right now we

Know this through sec filings we can see this so can somebody tell me who is buying apple stock at a twenty six forward p/e apple stock never trades at a twenty six for p i mean never it not even any more time in remote history has apple traded anywhere close to a twenty six forward p/e and you know it’s trading at a twenty six ford p and somebody out there is

Mysteriously buying up apple stock to push it up push it up who’s doing this literally who’s doing it cuz it’s not buffett and i can tell you it’s not the leap a down the street who’s just bought one apple share today on is robin hood account okay it’s not him who’s buying apple stock at a twenty six ford p that’s what i really want to know i don’t know seriously

I really want to get to the bottom s who the hell is buy apple stock at 26 ford p i would loved i would love i would live in the love to find out that answer i really would who oh who is buying shopify stock out of five thousand forward who’s doing it okay i know i’m really really got but really really really really really i really want to figure this out who is

Buying shopify stock at a 5,000 ford p can someone point him out to me because i really i just want it i just want to talk to them and i just want to just want to understand why they’re buying a shopify a seven hundred and fifty four dollars this year please who gm’s getting a bid now gm’s getting a bid why don’t we just buy every stock ever in creation in the

Stock market who cares about valuation who cares what the worries are about the business model long term and who cares what for pia trades that let’s just buy everything gm gm’s up four percent today gm’s getting a bid gm general motors they’re getting a bid who is buying all this guys the fact is we have so much good news now priced in for the second half of 2020

Just so much good news we need you know the world to get back on track like it like it never stopped we need businesses to open back up and business to be robust and continue to build into the fall time into the winter time we need corporate earnings to get right back to where basically they were because of markets have climbed almost back to where they were right

Sp 500 breakeven over the last 12 months nasdaq sup 13 14 % in the past 12 months we need basically corporate earnings to get right back to where they were right back and really really quick and when you’re in that type of market you have priced in so much good news then it’s hard to actually impress some marketing to get the market to go up past that the fact is

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The market should be discounting that the fact that oh my gosh things might not go as planned oh my gosh corporate earnings might not get right back it might take a while and yet the market has no patience right now the fact that i was up four thousand seven hundred and thirty two dollars in a public account and you know i easily made five figures plus today i

Think it’s ridiculous i’ll be completely honest i think it’s ridiculous i think in this type of market this shouldn’t be happening i just don’t ok this market has no patience right now let’s be very clear the stock market right now has no patience and the stock market right now is fist sheets and i mean fishy i mean it smells like a big blood sushi pot that’s how

Fishy the stock market is okay it must be very clear you know and i want to go on conspiracy theories but let’s just be very clear everyone wants the stock market higher right everyone does right the president he tweets about it all the time he definitely wants to stock market higher there’s much higher probability the the president united states gets reelected

If the stock market’s high right the real estate market they all want to stock market higher right if you keep in mind if there’s confidence in the stock market it’s going up and assets are increasing and people’s you know stock market accounts are going up they’re much more likely to go ahead and buy real estate you feel confident about making a big purchasing

Decision we’ll keep in mind real estate from most folks that’s their biggest purchase so if you want to keep the real estate market strong also keep the stock market strong they can go hand in hand and if the stock markets down dramatically then people are gonna feel much less confident and they’re also gonna be more poor they’re gonna have less assets and if they

Have less assets then they’re less likely to be able to buy a house right so real estate market they need a high stock market we retirees we have the baby boomer generation all retiring right now or getting very close to retiring all those folks and a lot of those folks are guess what they’re the folks that have vote these politicians in office right i mean let’s

Be honest most people in their 20s and 30s those aren’t the people that are voting people in and out of office they’re really not well you know they get they you know they don’t do that for the most part it’s the retirees they’re the ones that are the die-hard voters for their parties and things like that and all these people they’re all retired or they’re all

Going to retire and a ton of them have money invest in the stock market they all want a high stock market they all want a high stock part they don’t want they don’t want the nasdaq to be six thousand five thousand they don’t want the dow to be 18,000 15,000 because guess what they live off that money they don’t want that none of those individuals want that okay and

They’re not the only ones okay none of them care about valuation and that’s what just gets me really mad okay all they care about is high they just want it all high good who wouldn’t if think about if you’re retired right now or you’re about to retire what do you want you want your you want your stock market account to be as high as possible right that’s what you

Want if you’re sitting in office right now you want the stock market to be as high as possible you don’t want low stock market and everybody in between they all want a high stock market they don’t care about valuation just pump it up pump it up pump it up we just want high high high and at the end of the day that’s why i’m really mad i look at the stock market and

The valuations are just ridiculous considering the risks we actually have out there there’s no patience all it is it’s just it’s just pump out of nowhere with no identity of who’s actually really buying out there in a major way and that is the most frustrating thing to me and that’s why i’m mad because all it is it’s just let’s just get this stock market as high

As possible who cares about valuation evaluation doesn’t matter and those are the type of stock markets that are that are very very scary and you know i know it’s driven some people seeing this to short positions that i put up just saying things like that i can’t do it because just because i’m mad about it it doesn’t mean it can’t keep going up it doesn’t it who

Knows maybe maybe apples gonna go to a 34 p and it will still be getting a bid maybe it goes to a 44 p you never know when the stuff ends it could end in a week from now can end in a few months from now could end in a year from now and right now the market doesn’t care about valuations the market doesn’t care about risk the market doesn’t care about all the real

Negative things going on out there it doesn’t care about any of that all he cares about is thank you for watching and have a great day

Transcribed from video
The Stock Market has Me So Angry! Here is why! By Financial Education

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