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Ladies and gentlemen the stock market is aligned to you it is 100% lying to you and the stock market has always been a horrible liar today i want to expose exactly how the stock market is lying to you i want to expose kind of why the best for companies the biggest for companies in the world are outperforming and i want to talk about where money is going to rotate
Next okay we’re talking about all three of those subjects first let’s get into this first part on how the stock market is lying to you so if you were just an average person out there what an average person looks at they look at the dow jones sp the nasdaq and some of the biggest stocks out there and they make judgments off of where the stock market’s at where it’s
Going based upon where the stock market is currently so the dow jones right now is right at pretty much all time highs in the history of the index all right the s&p 500 same exact thing right near all-time highs ever in history nasdaq absolutely same thing so if you just look at those three indexes or three main indexes out there the dow the s&p 500 and
The nasdaq just as a casual person out there you look at that and you say it’s boom times in the stock market all right and then to confirm this even more you’re going to look at some of the biggest companies in the world the fourth it gives companies in the world who are they apple apple rate near all-time highs history of its stock amazon same exact deal well
You know near a trillion dollar market cap right now the highest it’s ever been ever alphabet google mcdougal same exact thing microsoft saying the exact thing right near all-time highs so if you’re just looking at the stock market overall and you’re looking at the four biggest companies in the world by just looking at that you’re gonna say the stock market is in
Boom times right now it is absolutely amazing to be in the stock market right now you are making money hand over fist when in reality a lot of times these indexes move up big or down big based upon where the biggest stocks go okay apple has a huge weight out there so depending on where apple stock goes and especially google in in amazon stock and microsoft stocks
Since they’re the four biggest if they go up a lot it makes all the indexes look like they’re going up a ton okay however if those ones go down a ton hertz the entire market all right but in reality a lot of stocks it’s not boom time a lot of stocks are not at 52-week highs right now or all-time highs and actually have struggled alright let’s go over a long list of
Stocks here that are also pretty decent sized companies that have struggled alibaba down 16 percent in the past six months a 10 cent down over 30% in the past six months jd calm down nearly 40% in the past six months and baidu down over 16% in the past six months okay those are the four main chinese companies chinese stocks you’re gonna look at out there okay i do
Alibaba 10 set and jd those are first that come into people’s mind those are the biggest ones those are the you know some of the biggest companies out of china that’s what everybody’s gonna look at when they judge how chinese stocks are doing all had performed absolutely horribly the past six months so it’s certainly not boom time with chinese stocks alright but
What about some other stocks that maybe aren’t chinese stocks okay we’re gonna look at a company like skyworks solutions right a great semiconductor company that has grown phenomenally over the years and should continue to for years and years to come especially as 5g comes out last six months the stock is down 23% it’s certainly not boomed times there based upon
Where that stock price has gone right micron technology this company is executed a you know an unbelievably high level for the last two or three years and this one in the past six months is down 26 plus percent all right we can look at even a stock that was hut stock money i like to call it okay that were a lot of people were flooding a lot of money into which was
Tesla tesla’s down 18 percent in the past six months it certainly doesn’t look like boom times with that stock right a risky one but a huge potential out there we could look at the home builders all right all these home builders some of the biggest home builders out there polti kb home toll brothers all down massively all right so we’re looking at these stocks and
We see you know it’s not boom time for all stocks certainly for the fair for the very top ones apple amazon google microsoft the four big dogs it is boom time so those are all-time highs the stock market is at an all-time highs now something very interesting let’s just let’s just figure this out for here for a second okay apple amazon microsoft google mcdougal
Is there anything that has happened in the past six to 12 months with those companies that have fundamentally changed those companies and just made everybody want to put money in those stocks all of a sudden absolutely not amazon has on has been on a tear for years and years okay this is nothing new all right so the fact that so much money has flooded in that stock
And push this market cap up so high it’s not just because amazon all of a sudden started doing good they’ve been doing good for a long time apple apple has been knocking numbers out of the ballpark for a long long time google macdougall’s same thing microsoft same thing but so much money has flooded into those stocks all of a sudden in the past six to twelve
Months and it’s like why if it’s all sudden so much money coming in these stocks and push them to all-time highs why has this happened all right well the reason this has happened in my personal opinion is because what i call rotation money all right so sometimes you’re gonna have money rotate toward safety stocks stocks that fund managers feel like are safe that
They’re probably not going to lose much value in okay and the stock says people view those you know really safe stocks as they view it as apple amazon google mcdougal in microsoft those are the safe stocks at least have fund managers okay i’m talking about hedge fund managers mutual fund managers the ones that you know manage billions and billions of dollars that
Can really push the stock market up or down certain stocks up or down based upon their buys or sells they have flooded money into the safety stocks as of right now okay the ones they feel safe in are you know their money is gonna be okay all right and why is this a lot of this has to do with the tariffs the trade war people don’t know if chinese economy is gonna
Crash now because of all the tariffs that have come on things like that it has people freaked out okay which you’ve seen a lot of money go out of the chinese stocks because all of a sudden those are seen as risky okay you’ve seen a lot of money flood out of the semiconductor stocks you’ve seen a lot of that happen okay so money has flooded into the for big dawg so
For biggest american companies that people view right now as the safe stocks all right but what is gonna end up happening is money will end up rotating back over to more of the risky stocks which you know it’s so ridiculous to call some of these companies risky company so many of them are so well run have great management teams have great futures but for whatever
Reason right now fund managers look at those stocks and they say those are the risky stocks okay it’s risk-on risk-off and so they flood this money into the big dog stocks the big american corporations that you know have been doing well for a long time like like like apple should have already been up a lot you know over the past few years the fact that two years ago
Apple shares were under $100 was ridiculous okay but at that time all sudden people were like view and app was maybe that was a risky stock all right amazon you know we could make an argument that amazon might be overvalued google should have been you know up near this range many years ago same thing with microsoft like microsoft just all set in the past quarter
Or two quarters is also you know turned around their business to great they’ve been in a huge turnaround with that company for several years in sasha-ann adela came in okay so what will end up happening is money will start to rotate to some of the other stocks we don’t know when that is we don’t know when money will start to actually rotate out of apple and amazon
Some of these other stocks does it mean those stocks are going to also crash or something overnight it just means that eventually they’re gonna hit a number and they will start to underperform where the stock market goes and all of a sudden some of these other stocks that are much smaller also start to you know rise out a very rapid clip and you had a remember here
With a lot of these stocks apple amazon google microsoft there has to be a lot of money flooding in those stocks to really get those to move up in a big way which all those stocks have moved up in a big way right so think about it when those stocks sell-off just a bit right that’s a massive amount of money of free money out there that’s available to put into some
Of the smaller cap companies so also some of these smaller cap companies that are seen as the riskier players which once again they’re not that risky if you’re a super profitable company have a great management team and have great vision like what is what is risky about that just because you have a twenty billion dollar market cap instead of a trillion dollar
Market cap it doesn’t make you more risky or less risky at them in the day but what will end up happening is a lot of these smaller companies that you know have great visions will often you have a lot of money come into them and those stocks will fly up at a very rapid clip and also in the apples and amazon’s will also maybe underperform the market or just kind
Of perform in line they won’t you know over perform like they have been doing those kind of perform okay for a year or two and money will flood into the other companies they’ll push them up we don’t know when this is going to happen we don’t know it could be a few weeks from now it could be a month from now it could be six months from now a year from now we don’t
Know when the rotation of money will happen but it always happens it always happens that the stock market will go from risk on to risk off as it’s called okay and you’ll have a lot of money flood into the big stocks the the main stocks out there that have seen the safe ones and then all sudden some of that money sells off it goes into the riskier stocks and then
Everybody and their friends wants to jump into some of those stocks they start getting pushed up there the hutt stocks and that’s what we call rotation money the stock market has been lying to us okay if you think it’s boomed unless you own you know some of the biggest companies like other than that like a lot of stocks right now it’s not boom times over a lot of
These companies they earn up massively the stock market has been lying it gives us impression that you know everything’s boom times in the stock market when really it is and there are ton of stocks that are unbelievable values right now that are smaller companies that are in that 50 billion dollar market cap the twenty billion dollar market cap maybe even under ten
Billion dollar market cap there are tons of deals in the stock market right now some of the most deals i’ve seen in quite a while in stock market are available right now so it’s a beautiful thing it’s frustrating sometimes when you see stocks you know that are aren’t moving that are performing unbelievably as far as their underlying business that can be annoying
Sometimes but at the same time it produces some amazing values out there because if everything which is fairly valued right there would be no advantage for us buying in right there would be no advantage so anyways let me know what you think about this down there in that comment section i would love to hear your guy’s opinion on this if you love to keep up with
Stock market news make sure you follow me on instagram i post those ton of stock market news on my instagram story especially during the week thank you for watching and have a great day
Transcribed from video
THE STOCK MARKET IS 100% LYING TO YOU By Financial Education