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Well you must be flipping my flapjacks look at that stock market today dow jones industrial average down 962 points here today s p 500 down 4.15 and that’s not the worst of the bunch okay the worst index of the buns it’s the nasdaq look at the nasdaq down 5.61 down 675 points as i’ve taken the screenshot right now absolutely incredible downward move for the
Stock market here today vixx has gone sky high vix is up 33.72 percent here today which basically the vix is volatility and how it measures volatility in the market and generally speaking when you see the vix go sky high like that that means it’s a bad day for the market or a bad time for the market in general we have market strategists saying things like this
The markets are facing a potential minsky moment collapse we’ll talk about that okay the stock market is flashing a warning sign look at this guys the hot stocks this is like the third day in a row right i think all these stocks are down the hot stocks right zoom tesla miesla slack apple shopify all these stocks have been very very hot with obviously kind of
Tesla and zoom being the poster child of this hot market we’ve been in and these stocks that just seem to roar higher and every time people think oh that’s going to finally go down it’s been going up and up and up right but here we are this is what three straight days these type of stocks have fallen and look at the moves down here today tesla my esl down 9.6
Zoomy down ten percent here today apple look at apple down eight percent it’s not very often you see apple stock down nearly eight percent but it’s down eight percent here today big tech across the board down down down obviously we just spoke about apple right the fb’s down microsoft down look at how the fb is down less than everything else so microsoft down 6.6
Percent here today amazing is on down 5.6 percent google mcdougall down 5.75 big tech just getting absolutely destroyed you have some guy out there saying talking about stock market bubble when he put out this video like 18 hours ago and it’s the six worst out of his last 10 videos how is that possible i mean man i guess no one no one got to see that one oh well
And then lastly just to fry everybody’s brain on this horrible day for the market horrible day for so many stocks we have royal caribbean norwegian cruise line and carnival cruise line all up today okay just to fry everybody’s brain a little bit more if everybody wasn’t confused enough about this whole situation absolutely unbelievable okay what is going on in
The market okay what are people saying will this downtrend continue what we’re obviously seeing today and what we’ve seen in some of these hut stocks the past several days right and uh what’s my opinion on it do i like what’s going on do i not like what’s going on i’m gonna share my full opinion as well okay so hope you guys enjoyed today’s video as always if you
Don’t mind smash that thumbs up button that helps other people see the videos and uh you know yesterday i come out with that video is the stock market a bubble the stock market crash coming or the anybody ends up watching that i’m like what the heck is going on man uh that’s a video i feel like should have gotten a lot more views let’s just put it that way okay
So uh thank you i appreciate all you guys that help out the youtube channel okay asset prices could be on the cusp of a sharp collapse known as the minsky moment and may retest lows last seen in march according to ron william a market strategist and founder of rw advisory markets have experienced a broad bullish period in recent months as we all know okay as
Investors bet on further stimulus from governments and central banks and the prospect of a roni rhona vaccine a minsky moment named after economist hyman minsky refers to a sudden market collapse following an unsustainable bull run which in this case could be fueled by the quote easy credit environment created as a result of the unprecedented fiscal and monetary
Stimulus measures wow this is actually a market strategist that kind of is making some sense okay speaking of cnbc squawk box europe on thursday williams cited a number of factors as potentially driving this crash the first of which was the narrow nature of the recent market gains which much of the positive price action in the us is driven by tech giants right
We’ve talked about this this is an ongoing story of the tech street wall street and main street all diverging he said if we look at the equal weighted index of the s p 500 it has barely broken above its june peak and has actually been flattening ever since so we can see the fangtastic divergence as i call it etf exchange traded funds flows on the s p 500 is at
A new record low and if we take a look at the vix a real-time index of market volatility expectations that has also been interestingly a typical spike up as markets go up suggesting potential hedging for downside risk he said and i’ve even thought about hedging some positions a bit and i’ve actually thought about buying put options very recently as recent as a
Few days ago i was even thinking about buying some put options on a tesla stock just to hedge my position i ended up not doing it but dang i should have because i would already be on those put options i would easily be up 100 plus percent right now in a matter of like just the past three days like absolutely crazy okay the minsky moment stated by william could
See assets fall by 20 to 30 percent or more okay now we’re talking some pretty big numbers 20 to 30 or more he said causing the current v-shaped recovery to lead to a rolling w retest of the march crash lows the s p 500 obviously fell in march to 2200 and uh recently it was like what 35 30 600 very recently but even more troubling than that is why are some people
Starting to do this with their facial hair why are some people starting to shave half of it off and keep the other half i’ve seen a few people do this now like what is this is this some type of like new like quarantined roney rona situation going on like i don’t get that that’s really troubling to me okay but anyways in yesterday’s video on financial education
Too that no one saw okay basically i showed a ton of charts out there that that showed a lot of different things okay and what were these things it showed that most growth stocks are rip off right now just flat out a rip off it showed that most big tech stocks are ripoffs right now okay it showed that most large caps are rip-offs right now it did show that
There are some opportunities in the stock market actually right now when it comes to value stocks and dividend stocks but the problem is those type of stocks aren’t what a lot of investors have been you know let’s say fancy to lately everybody wants those super high growth companies and big tech that’s where everybody wants to be and those companies have gotten
So overextended and so unbelievably overvalued a lot of those stocks we don’t know if they’ll ever be able to justify the valuations they have now okay and if they do it’s going to take a lot of these companies five years plus to justify valuations that a lot of those stocks have on them they’re just let’s just be honest they’re rip-offs we saw it in the charts
Yesterday in that video and i even had to call out one of my own stocks which hurts me to do okay tesla myesta i even had to call that out a couple days ago okay two days 21 hours ago i put a video out on financial education too and i said the uptrend is about to end in tesla stock and uh actually you know i didn’t know it was going to be that actual day that was
Literally the top for tesla stock and ever since then it’s been down down and down and i hate making short-term stock price predictions like that i really do it’s very few and far between that i make short-term stock price predictions but at the flat out tesla stock the way it was going up was completely unsustainable where that market cap was going day after day
After day was was ridiculous and as somebody that’s a shareholder of the company and you know speaks on evaluation of tesla all the time you know i just tell you guys it was starting to get into a position where it was pricing in well over five years well over five years of growth i mean we’re talking maybe even seven years of growth to try to you know justify
That valuation it was getting insane and now that stock is starting to come down i mean since that video came out the stock’s already down what 20 roughly somewhere around there and you know that that’s healthy okay that’s a good thing it’s not easy to go against a grain like that i can tell you guys just flat out okay when a stock’s going up and up and up like
That so easy to pile on and say it’s just going to keep going up no different than when i put out that video when the stock market will bottom i put out that video and i said the stock market would bottom within the next 30 days little did i know like within a few days of that the stock market literally bought them but that was a really tough thing to say at that
Time and it’s really tough thing to come out publicly and say i believe the stock market is about to bottom because at that time the stock market was in complete freefall i mean it was just down down and down people thought we were going way lower than where we’re at for me to come out and say you know publicly to 157 000 people that watch that video the stock
Market’s gonna bottom soon you know and it did and it is what it is but it’s hard to go against the grain like that a lot of people are like you know they they couldn’t believe that that ended up happening and it’s not fun for me to come out against the markets or for me to come out against my own stock like a tesla stock but sometimes i have to do it regardless
If i have three hundred thousand dollars in that stock or not i gotta call it the way i see it and the flat out honest truth was tesla stock was completely unsustainable and that ridiculous uptrend couldn’t continue forever otherwise it was just gonna it was gonna cause ridiculous problems let’s just put it that way okay and so when you look at the markets on
A day like today just getting absolutely trashed we need this guys let me be just flat out we need this in the worst way when it comes to those hut stocks all going down we need this okay we absolutely need this the stock market is like me okay the stock market is like me let me explain this okay i was sending you know messages out this is a pretty normal uh
Night if we can call it a night okay send in messages to team members at 3 23 a.m at 1 40 a.m okay i’m doing portfolio reviews last night for the group members on loom at 2 a.m okay and i’m doing all this stuff super late at night but eventually eventually jeremy has to crash okay eventually jeremy has to take a breather and he has to get some sleep okay and for
The next seven to eight hours it’s pure darkness okay it’s pure darkness until i hear a little homeschooling going on and uh music class right by my door and so next thing you know i have to wake up it’s like 11 a.m might be noon time and i’m like oh okay okay okay i’ve been asleep for a while let me go ahead and wake up and guess what the nasdaq needs some dang
Sleep okay the nasdaq has been awake for a long time the nasdaq has been working so dang hard and this it just needs some sleep guys can we just let it sleep a little bit the nasdaq has been wide awake for five months straight now okay five months straight it seems like almost every day the nasdaq is wide awake going up going up going up i mean that’s how you’ve
Gotten the nasdaq to go from what did it bottom at 6 600 something like that to what was it yesterday it was trading over 12 000 almost a double up in five months i mean by any metric that’s ridiculous right i mean even the nasdaq which should always outperform what should you get in the nasdaq per year maybe 10 12 percent i mean almost a double up in five months
Okay yeah the nasdaq probably needs some sleep and you know what else needed some sleep tesla stock okay tesla stock needs some sleep i mean that stock on a split adjusted basis went from 68 to it was trading at almost 500 in a matter of what five six months less than six months it went like that tesla stock it needs some sleep this is healthy okay i mean that’s
Uh that’s completely unsustainable this is completely unsustainable it needs some sleep let the stock sleep for a bit let it get recharged and re-energized okay that’s not healthy okay let me just put it that way zoom stock went from 120 to 470 dollars in a six month span let’s let zoom stock get some dang sleep okay let’s let it take a little breather and rest
This is normal we need this no different than my teslas need to get charged up once in a while right they can’t just drive all the time because if you drive it all the time and you never charge it guess what happens the car is not going to go anymore okay it’s going to stop it’s going to shut down bada boom bada bang you’re done you need to get towed or you need
To have like the i don’t know a tesla charger coming like i don’t know a truck like come charge your car up and so those vehicles need to be recharged sometimes they need to take a break they need to take a breather and we need this guys we need this i want to tell you what i don’t want to see okay i’ll tell you exactly what we don’t want right now okay the last
Thing we want is this dip this huge dip in the nasdaq they have what was a five percent or so uh to basically have happen and then we just start going straight up in a straight line again next thing you know we’re a nasdaq 13 000 14 000 15 000 16 000 boom boom boom over the next several months that would be worst case scenario let me be very clear with that it
Would be much better if we saw a 10 20 even a 30 correction the nasdaq rather than that nasdaq just keeps flying up and the valuations keep going sky high like they have been doing that let me be very clear that would create a bubble like we had in 1999 and 2000 and the dot-com bubble that would create that sort of bubble in the market and you don’t ever want
That guys that will create you know a decade of a blob market and last thing you want to be who wants to be in a stock market where for a decade is blah it doesn’t do much and if you look at the nasdaq it was actually well over a decade it didn’t do anything no one wants to see that sort of situation right no one wants to see that that’s just why we need this
Guys okay this is why we need this in the worst way no one wants to see that i mean the good thing is if you’re an individual stock picker even in a down market or a market that’s not doing much you can still pick some good stocks that will likely outperform but for the most part gains will be minimal i mean if the stock market doesn’t do anything or down trends
For a decade because you went so sky high with valuations i’m just going to tell you guys it’s going to be a lot harder to get gains than if you’re in a good market overall for a decade okay we also another big thing is we also need decent buying opportunities and grow stocks and big tech stocks and large caps and i can tell you we haven’t been very recently we
Haven’t gotten those type of opportunities i mean the valuations on growth stocks especially any of the popular ones they’re ridiculous they’re preposterous okay big tech same exact thing okay big tech great companies apple microsoft amazon uh you know the fb google mcdougall these are great companies they’ll continue to grow in the future but the fact is that the
Valuations a lot of those companies have gone to are just ridiculous i mean they don’t they don’t usually trade like that and they shouldn’t be trading like that but they are trading like that and in yesterday’s video on financial education too the stock market bubble video we went into all this i showed you guys the charts across the board it’s just it’s just crazy
Okay what does scare me let me be honest what’s scaring me really bad right now is the fact that i mean this was reported back in late june right that there was about five trillion dollars parked in money market accounts okay this scares me let me tell you why essentially okay some of these individuals have seen the market go up and up and up and up right and
Some of them i feel like on any dip they’re going to be a buyer regardless and they’re going to try to plow money in the market because they’re just desperate okay they’re just desperate they’re on the ground they’re like oh my money’s being devalued every day i gotta get in the market and i feel like there’s a lot of individuals out there funds different things
Like that that they will buy any dip on this market anything i mean the market can go down half a percent they’re like oh my gosh i got to plow my money in the market right now because oh my gosh the stocks have just been going up like crazy i can’t miss out on this again and so they will buy any dip and that really scares because that desperate trillions of
Dollars can come pouring in the market and put these valuations up to even more sky-high levels like we like we looked at man the valuations on big tech the valuations on growth stocks the valuations on large caps russell 2000 growth stocks they’re sky high man and we’re talking forward ps we’re not talking about looking in the past we’re talking about forward
Ps on these companies are ridiculous and if desperate trillions of dollars come pouring in the market’s just going to go up and up and up and up and that’s not healthy guys let’s let this babies get some sleep okay this baby needs some sleep telling you if we if we if we don’t let this puppy get a little sleep it’s gonna end really bad and really bad for a long
Time okay not like a few days not like a few months i’m talking years okay let this baby get some dang sleep and the number one frustration i get from like you know people in my private group that i always hear it’s like basically over the past several months they’ll buy a stock and right away it goes up 5 10 15 20 they can’t even get positions built i feel the
Same way it’s really hard for me to get positions built because as soon as i get a position built boom boom boom it’s up it’s up it’s up and it’s like usually when you buy into a stock and the way i kind of teach it this is like the healthy way of doing it because usually the market the nasdaq doesn’t double every five months i mean that’s just very unnatural but
The way to buy stocks is you buy a little chunk then you buy a little more then you buy a little more and you you build out a position over you know one month three months six months you sometimes you can bail out a position over a year or two span and continue to buy and if it dips you know you’re able to get better opportunities in that stock but the fact is so
Many people have been trying to build positions and as soon as they start building it it’s up and up up and away that’s so so ridiculous and that’s so unnatural it causes so much frustration from investors causes you know frustration for me to see you know oh i just bought the stock and it’s already up 10 20 it’s like what the heck man and also think about it from
People that are on the side then they look at this and like yeah i don’t think i want to get involved with that market right now because just everything’s just going up like crazy okay so let’s just bury the nasdaq for a little bit okay let’s bury the nasdaq let’s let the nasdaq rest in peace for a minute okay and don’t worry just like the undertaker the nasdaq
Will wake up out of its grave okay it will come popping out don’t worry about that okay trust me the nasdaq always comes popping back but let’s just let us sleep for a while i don’t want to have to be paul bearer and be you know shocked and surprised because the nasdaq comes popping back and also it’s at 13 14 15 16 000. that’s the last thing i want to do the
Nasdaq will come back to life the hot stocks will come back to life but let’s just please let them sleep for a bit let’s let them get their energy back okay that’s all i got to say about that so anyways i hope you guys enjoyed today’s video as always if you don’t mind i smash that thumbs up helps out the youtube channel in a massive way and let me know if the
Stocks continue to downtrend let me know what stocks you’re thinking about buying them i’d love to hear from you guys in that comment section as always also if you want to know how to create a low risk high reward stock market portfolio from scratch i created a video for you it’s down linked in the description along with some other resources so definitely check
Out the description if you have a moment help you out big time thank you for watching and have a great day
Transcribed from video
The Stock Market Is falling Massively! What is Going On?! By Financial Education