The Stock Market is About to…

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The stock market is set to explode upward we are set up to have an unbelievable bull market and i want to explain you guys i want to go into depth today on exactly why i am so bullish for the remainder of the year now it’s hard to make short-term predictions i’m usually like looking long term out but what i just look at the short term what’s gonna go on over the

Course of the next let’s say six to nine months i am very very bullish i’m gonna kind of go through three different things with you guys stay and you’ll kind of see why i am so bullish on the stock market overall and kind of why i see it going up so hey by the way make sure you follow me on instagram and snapchat links down there in the description all the cool

People out there follow me on there so make sure you follow me all right first up here guys one of the first things i like to look at when i’m thinking about like the overall stock market and where i see stocks going and whatnot i like to look at the forward p/e ratio this is one of the biggest factors for me by far ok forward p/e ratio the 4pu very chill basically

What that means that that means you know looking at stocks from the perspective of how much that company is gonna earn over the next 12 months versus where that stock prices at ok times when the market is really elevated you’ll see a lot of forward p/e s over 20 ok when you’re in a more of a fair market valuation you’ll see a lot of forward peas around 15 when

You’re in super undervalued you’ll kind of see you know 12 and under alright and basically it just kind of shows you you know where the stock market is valued right now kind of going into the next year ok where are these stocks valued and what do they see out there right now as i see them i see the biggest amount of companies i’ve seen a long time that have four

P’s of 12 or under right now when i look at stocks right now if you go through the dow you go through the s&p 500 i see a massive amount of stocks that had four p/e ratios under 12 right now a lot of them even under 10 guys a lot of companies okay and this goes from a situation where you know wasn’t that long ago where i was looking at for p/e ratios and it was

Like hard to find ones that were under 20 now it is super easy to find ones under 15 and pretty easy to find ones under 12 right now so we’re in a market position we’re on a forward p/e basis the stock market looked very undervalue now is it every single stock is undervalued no okay there’s still some stocks that are very you know overvalued let’s say or you know

Maybe our fair value but when i just look at the massive list of companies i see so many right now that have four p’s of 12 or under just go through just go through the s&p 500 just go through the dow just look at those stocks tell me what the four peers are you’re gonna see a lot of them that are under 12 right now guys that’s a that’s a very bullish sign to

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Me because when you’re up here well where’s your room to grow well where’s your room to go it will grow when you’re at you know a 4 p of 20 plus on stocks you don’t have much room to grow your the the stocks are already you know value so high you know in a 15 this situation where most stocks are 15 plus you’re kind of in a fair valuation i’m seeing tons of stocks

Right now that are 12 and under guys so i mean we got companies like facebook right now that have tons of growth ahead of them right over the coming years that are gonna grow much bigger than they are now we have companies like that that are that are at ford piece of like 17 18 those companies should be you know 25 30 plus you know so there’s a lot of stocks like

That so 4p is a first part the second part on why i think you know stocks are set up in a position where they can explode for the remainder of the year and whatnot it is when i look at taxes okay taxes is a huge you know effect on the stock market taxes there you know if there are less taxes on people they have more money to do other things they can spend that

Money they can invest that money so when we think about it from an individual standpoint okay you and me just individuals you know taxes going down from just about every single individual out there it just means more money probably going into that 401k or things like that okay so let’s say a person makes an extra you know hundred dollars a month because of taxes

You know because their taxes dropped a bit you know maybe like $50 that goes into let’s say you know their stock market accounts or 401ks another $50 just goes into their pocket and things like that well it’s more money for them to spend but at the same time it’s more money going into the stock market you might say oh it’s only $50 here and there well when you

Think about it times millions or tens of millions of people that’s a lot of money too deep to be deployed out there in the stock market guys so it’s a very big factor so that individuals then also taxes we got to think about it from a corporation standpoint corporate taxes it’s got lowered the most laws certainly in my lifetime but maybe ever okay corporate tax

Rates just went from thirty five percent to around twenty one percent that’s unbelievably low and what corporations do well will they add some more jobs yeah well some of them add some more factories and do things like that yeah will some of them up dividends yeah but a lot of that money guys a lot of that money is gonna end up being used for share repurchases okay

For share buybacks a lot of that money’s gonna be used for share buybacks so when their money’s deployed for share buybacks what happens is that puts a for under a lot of stocks where you know the company is buying so many shares back that it’s all it’s hard for that stock to go down much right apples a great example of this apple is buying shares back on such a


Massive scale for the last few years that’s hard to really even even in times where you know all made apple’s iphone sales might not be good it’s hard for that stock to really go down in a massive way it’s hard to get that stock down in a massive way because apples one of the big shareholder one of the companies that’s buying the most amount of shares look at the

Amount of money apple is spending on share buybacks right now okay also those share buybacks when once they purchased the shares those shares go bye-bye it makes eps look even better guys as long as they can keep that net income the same or even make it look higher yeah just that’s just as a phenomenal phenomenal thing guys so corporations have more money they’re

Gonna be spending a lot of that money on share buybacks for purchasing their shares and then individuals are gonna have more money it’s just more money to go out there in the market and deploy and be invested okay and then when i kind of think about the third thing i kind of think about the worries okay we’ll just say worry which is a lot of what’s held the stock

Market back recently okay when we you know i’ll topped out around 27,000 now we’re in the twenty three twenty four thousand range right it’s mainly because of wars it’s not because of economic you know downturn or anything like that like that economy’s fine things like that the economy should actually heat up in the back half of the year and that could kind of

Be like reason number four i won’t even mention is the economy expect to get even stronger if toward the back half of the year but the worries guys so right now you know the thing is like oh we’re gonna be in a trade war we’re in a trade war this and that’s a worry right now right anything that comes out trump’s mouth it is just like the market jumps all over it

Right now what ends up happening every single time is eventually the market starts to forget about that situation okay they were that whatever you know trump start saying it starts mattering less unless unless that’s just what happens with the market happens every single time north korea situation right well when you know that was like what was that last year kim

Jong-un will you know say he’s you know do some propaganda video he’s you know send nuclear you know warheads over the us or whatever and you know trump would fire back at them and call them rocket man at first i got the markets to go down oh my gosh we have a nuclear war blah blah blah and then would end up having as as they may threat still in the it matter less

In less to a market and a threat could get made and the market wouldn’t even go down that day the market would still go up and it would just be you know another normal day that’s what ends up happening as time goes on the worries start to not be as scary and the market starts to forget about them okay and so that’s a big factor and then you have on top of that

Economic growth should pick up in the back half of the year earnings should be very strong in the back half of the year meaning that last likely you know let’s say six to seven months a year and so we’re set up in a position right now well we could have a very strong bull market you know who knows it might not happen all i can tell you is as long as the economy

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Stays strong and if the market stays worth at guess what’s gonna come down even more these forward peas they’re gonna come down even more and make things look even more undervalued so net debt it’s regardless of which way the market goes i’m in a win-win situation if it goes lower i buy more stocks and i’m gonna make a ton of money over the future years if it goes

Up i’m gonna make a ton of money on the positions i already own so i’m in a win-win situation are you in a win-win situation i hope you are guys the only people that usually aren’t in a win-win situation are people that are judging things off short-term basis and people that are in a situation where they’re a hundred percent in the market and they have no new money

To funnel in that’s not a position you ever want to be and you always want to have some money on the sidelines so you’re ready to put some money in you always want to be a funnel of money in every single month into your accounts and things like that that way you’re always in a win-win city i can’t lose in the stock market like i get a little can’t lose because oh

Wait stocks go down great i’m gonna buy them i’ll make a crap ton of money on them over the long term am i gonna make money on every single stock i ever buy no am i gonna make money on 95 plus percent of the stocks i buy yes i’m gonna win overtime okay and then you know if stocks go up i already own a ton of stocks so i’m just gonna make a bunch of money i’m in

Literally in a win-win situation that’s the situation you want to put yourself in okay don’t put yourself in a lose-lose situation where you’re all in on the market all at once you don’t have any new money to funnel in because then you’re stuck in the market has to go up or you’re screwed the market has to go up in the short term you’re screwed and then when you

The market starts going down you start panicking you start selling you start worrying oh my gosh i got all my money invested already i don’t have any new money to funnel in that’s not a situation you guys want to be in so but anyways we’re set up to have a really strong back half of the year and i’m really excited but we’ll see what happens you know it’s possible

The stock market doesn’t go up it doesn’t go anywhere well you just have to see how over time guys anyways i want to hear your opinion on this what do you guys think about this i would love to hear your opinion in that comment section once again make sure you follow me on instagram snapchat links down there in the description thank you for watching and have a great day

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The Stock Market is About to… By Financial Education

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