Link to join StockHub free investing discord server: Want to join our free STOCKHUB discord chat? Here is the link
Welcome here today we gotta talk about the stock market oh my gosh what do you know what do you know oh my gosh we gotta talk about this guys we gotta talk about why the stock market is falling is actually quite a few reasons why the stock market is finally falling about two and a half thousand points we’ve lost in the dow just in the past couple weeks why is this
There’s actually a few different things going on that i want to explain to you guys what’s going on not a lot of people know okay and then we’re gonna talk about what do you do now what to do now with your money out there okay so here today dow jones industrial average down seven hundred and thirty points oh my goodness it’s finally happening okay the nasdaq down
Two and a half percent actually a little over two and a half percent sp500 down two point four two percent and the rumor is that if i shaved my head the stock market falls for every one hair follicle we shave out of my head the dow goes down one point because i think that’s what happened i mean all the sudden you know the shave the head that will drop seven hundred
And thirty points but no in all seriousness the markets been falling for the last couple weeks now let’s be very clear about this the market reached the top right around i think it was june not okay right around june 9th the dow actually closed that day over twenty seven thousand five hundred i think is twenty seven thousand six hundred somewhere real close to
That and the stock market just seemed to be getting way way too ahead of itself i mean we got a lot of real uncertainty out there still that we have to work through for the remainder of this year right now it’s just it seemed like it was just running to all-time highs nasdaq was well over ten thousand s&p 500 was getting close to an all-time high things were
Just running and here today we closed out a trade about twenty five thousand almost exactly so we’ve lost you know about two and a half thousand points if not a little over two and a half thousand points off the dow and literally just about a two-week span look at the stocks today everything’s down i mean tesla is a– the fb took a huge downward move here today
Skyworks was down winning resorts was losing resorts today down over six percent ccl was down that’s kind of a normal day for ccl revolve was even down today nit was down that’s usual okay and and so there was just a lot of stocks that were down okay so once again in this get into why this is going on several different reasons and what do you do now just so you
Guys know first link down there in the description i created a free video for you how to create a low-risk high-reward stock accounting for run check out that first link in the description don’t forget to smash that thumbs up button for the youtube algorithm alright guys so all the following are reasons why stocks are starting to fall all these matter ok just a
Little bit for each one ok first one up here wall street executives are bracing for potential biden win as trump fades in polls so we know in some polls in you know these polls you never know ok you never know who’s gonna actually win these elections in the end you know i remember the last election right they were saying you know certain individual was leading in
The polls huge and it was gonna be an easy win the other party ends up winning and so i would never put too much faith in these polls but wall street does like to look at them and they’re looking at this and they’re like they’re a little afraid of biden mainly because there’s a lot of rumors that biting could take corporate tax rates to 28% or all the way back to
Where corporate taxes were just a few years ago of 35 percent we know one of the changes the trump administration made was obviously they lower corporate taxes to 21 percent but i mean a obviously if they go to 28 percent or they go to go all the way back to 35 percent that’s gonna hurt profitability of s&p 500 companies and quite a substantial way so it remains
To be seen what happens there but wall street’s a little fearful when it comes to that and that’s part of the reasons why the market has fallen recently as more and more of these polls have come out and a lot of them have biden ahead especially in a lot of the swing states recently okay reason number two has to do with rhoni aronia okay the roni roni let’s talk
About roni brona this chart i’m showing you here is daily new cases around the world and look at it it’s pretty much at an all-time high right now the fact is rody rona is going just as strong as it ever has around the world worldwide later spreading in math still and in more than ever let’s just put it that way let’s just flat out daily new cases there’s literally
Looking at new cases every day and it’s just it’s in a massive massive way and then if we want to focus on just the united states for a moment and just say let’s forget looking at worldwide numbers the united states here today reached a number that was almost the record number ever for a day when it comes to roni roni in the united states i mean just look at how
Things have ticked back up as june has kind of gone along right it’s just it’s a clear this just a tick up day after day after day after day and there’s a lot of fears that within like literally the next week we could be at record numbers each and every day for cases i saw something like i think it was 9,000 new cases of roni rona in florida i believe and so the
Numbers are continuing to grow there’s obviously a lot of worries from the stock market looking at these numbers thinking maybe we have to close down the economy maybe things don’t open as strong as a lot of investors had hoped for we know the stock market has been running like everything like roni roni was just gonna disappear and everybody was just gonna go out
There and spend money like crazy and now you when you look at these numbers you start thinking to yourself if you’re an individual in the stock market you start thinking what happens if the stock i own closes again what happens if they can’t do business again or what happens if this is elongated there’s a fed gonna have to step in more or we’re gonna have to get
More unemployment breaks and things like that this is these are big questions and as we know in july july what happens in july well though $600 extra payments from the federal government go away for unemployment 10 of people are collecting have $600 that goes away in july a lot of questions on how things are gonna shake out are people gonna have jobs when that was
Unemployment extra benefits run out these are big questions and these are real things and when you look at roni your owners just continue to go up you have to really think about this i mean think about how many jobs just come from let’s say one football stadium during the fall time i mean imagine how many people are employed just by that football stadium okay and
Just think about if there’s no like football on this season and i’m just giving you one very specific example but just think about that thousands of jobs from now one stadium right and you think about that across the country but then you think about concert venue think about so many different things that we just don’t have right now and we may not have tell at least
2021 and it kind of makes you think ding you know these numbers are kind of important you asians number three okay evaluations i’ve been talking about this for a while this is another reason why i believe the stock market’s falling a lot of investors are looking at this chart here i’m showing you this shows you forward p of the s&p 500 and what do you see here
Okay as of just a few days ago literally we’re at record highs of any time in modern history for ford peas in it’s starting to fall it’s it hasn’t you know begun to get back to normalize levels but we’re starting to fall we’re starting to get closer so that is that was actually some good news but when you’re thinking about it from an investor’s standpoint a lot
Of investors haven’t want to put buying pressure on the market because they’re just looking at there like a lot of these stocks are overvalued and that’s the same exact way i felt recently you know i’ve started to employ a little bit of money in the market here today and i’ll deploy more if this market continues to fall but as of recently like i’ve just honestly
Felt like the markets overvalued like there’s too much good news baked in it’s hard to find deals and that’s how a lot of invest it’s not like i’m hole eve investor that feels that way believe me it’s the masses the masses that have been in this market for a long time really understand how to value companies on a high level everybody pretty much you know figures
Like stocks have been overvalued and they’re due to come down and we’re starting to get that because there’s just more selling pressure than buying pressure a lot of people saying let’s take some profits and let’s cash out some of some of these stocks that have pushed the market up big-time okay so it’s good news that starting to fall number four reason why the
Stock market’s starting to fall this is more of a confusing one to some because they’ve never really heard of this but there’s a basically a planned sell-off that’s kind of like going on right now i think actively and could continue into at least the next week and basically it has to do with pension funds big investment funds in general stocks that performed so
Well that a lot of these funds have to sell off portions of stocks and put that money into bonds essentially bonds of underperform stocks have overperformed and when it comes to a lot of these funds are supposed to have specific amounts of money in each some of them are like a 50/50 50% of the money is in stocks and 50% of the money is in bonds and if stocks have
Been going up and up and up then essentially your fun begins to get two stock heavy and what do you have to do you have to go ahead and sell off some stocks put some of that money into bonds so then you’re more even okay and so it’s not like necessarily these funds are like let’s go out and purposely try to take profits on stocks it’s just literally like if that’s
What the fund is supposed to do and they’re supposed to be 50/50 they got to be 50/50 or let’s say there’s 70 stocks 30% bonds but stocks have grown so much because stocks have gone up it’s now 8020 they have to sell off some stocks put that money over into bonds this is something that goes on in the stock market and this is why it is something in my opinion that
Helps the stock market keep more realistic valuations because these big funds they do have to sell out and cause some selling pressure on stocks it brings valuations down i’m actually in favor of but i actually love it okay so those are the main reasons why the stock market is falling there we just covered it okay so next question up here what do you do now what
Should you be doing with your money now in my personal opinion okay number one you really got to think about taking some if you own any of these type of super speculative companies i have seen their stock prices go crazy you gotta really consider it selling some of these stocks and taking profits you know i think i think this is one of the stocks that’s up there
We’re gonna mention a few others here but some of these stocks say just seeing their stock prices go crazy and if you only sepa stocks you got to really consider if you haven’t already taken profits in that man just taking those profits moving to cash or moving that money into some more stable companies that are likely not as big a question marks and don’t have
Insane valuations on them considering they have no business model nicholas sock for instance when i first spoke negative on that that particular day this the shares after-hours were trading at like $90 a share as of we just saw they like 63 today so they’re already down massively but it’s still like you know a ridiculous valuation the company consider they’re doing
Nothing and these type of stocks they they’ve been awesome they’ve treated people that wanted to try to make some quick short-term money they treated most of those folks really really well well unless you’re the person that was buying at $90 share because there were people that buy we’re buying in 90 there were people buying at 80 and there were people buying
A 70 the valuation has gotten so insane of stock like this i think you just got to consider potentially maybe taking some profits in that there’s nothing wrong with taking a sweet profit on a name like that it’s got in the same valuation space your virgin galactic this is another one of those that you know if you’ve made a cream the amount of money on that you
Gotta at least consider potentially taking some profits on this one i first called out this company’s valuation back when i was like $28 a share and i was like this looks you know insanely rich it was like twenty seven twenty eight dollars a share that was actually several months ago now obviously the stock has fallen you know forty percent roughly from when i did
Those videos but it’s definitely a stock you got to consider maybe maybe potentially you know take some profits unless you’re in it for the next ten years which you know respect if you are outside of that scenario i think you might want to take you know consider taking some profits cuz a lot of people made a lot of money in that one zoom ticker symbols iam on this
One this might be a profit time for zoom okay this one it’s not about oh well they’re gonna continue to expand business everybody in the world knows uns gonna continue to expand their business but the fact is their business is a really small business actually in their market capitalization is seventy two billion dollars this has been the play okay this has been
One of the main plays that investors have wanted to get into and the whole like you know work from home environment and everything like that when investors have piled into this one they have shot the valuation they have moved the valuation up like we’ve we’ve very rarely seen on a company like this where it was like a twenty billion dollar mark tab which already
Looked pretty rich so then a forty billion then sixty billion and here today well over seventy billion dollars if your own zoom stock i think you gotta at least consider the possibility of maybe taking profits on this one because a valuation has gotten absolutely ridiculous for this one just flat-out it’s not even about the whole you know work from home trade or
Move anymore now you just got to really think it fundamentally is this business justify a seventy two billion dollar valuation or will it justify in any upcoming years with seventy two billion dollar devaluation in my opinion absolutely not i’ve looked in this company and yes they’re gonna continue to grow revenues they’ll probably get profitable but i’m telling
You like it’s gonna take them i don’t know if they’ll ever grown in this valuation and if they do it’s gonna be like a decade from now it’s gotten that ridiculous with the stock leg zoom you got to consider maybe its profit time shopify stock another one you gotta at least consider maybe potentially taking some profits and shopify it’s well over nine hundred dollars
A share when market capitalization is 108 billion shopify will continue to grow its business but this is another one similar to zoom it’s going to take them a decade just to make this evaluation make any sense because the business is so fractionally small compared to the market capitalization we’re talking about a hundred plus billion dollar company like this is
Massive and so when you’re looking at some of these stocks you just got to consider maybe potentially taking some profits in them before you know any real weakness happens out there is nothing wrong with moving some of that money into some more stable companies because these ones have run a lot they’ve had some you know big trends behind them that’s everybody kind
Of super excited and when that happens guess what the trend ends up ending in these stocks usually mostly go down ok so i’m going to keep in mind there number two thing you got to do right now is you got to get the ammo ready man you got to get that money ammo ready ok the fact is we’re starting to get a few deals out there but if this market continues to weaken
A lot a lot a lot of deals will start emergent if this market can really weakened we could see a doubt 22k a doubt 20k it doesn’t even have to go to 18k like it hit in the marks close if we just get this market down to 22 k or 20 k there’s gonna be an enormous amount of companies that you’re gonna make a ton of money in over the next three to five years and so you
Definitely got to get the mo ready now a piece of advice i want to give you here ok don’t get greedy on the downside with these stocks i want to explain in detail exactly what i mean but i definitely am seeing some folks get a little greedy here and i want to give you an example of that and show you kind of what you’re missing out for potential opportunities in
Some of these stocks so this is something i’m seeing so often in the stock market right now i’ve seen it in my private group with a lot of members and the way kind of they’re talking i’ve seen in the comments section there’s nothing wrong with wanting a particular price or like i got this specific price for stock but i just want to make sure you guys don’t take
It too far and get too greedy because i know i have made this mistake several times on stocks in the past where i get too greedy around what specific price i want to stock at ok let me give you an example this so let’s say you you look in this company xyz company ok you love this company it’s $100 a share today and you’re extremely confident based upon what you
Looked in with evaluations the management team the business fundamentals everything across the board you’ve done your full research on this you’re very confident that over the next three years it’s going to go to $200 because the net income is gonna go to this amount and the valuation the company will command pe wise will be x amount okay so you’re saying it’s
A hundred today you think it’s going in two hundred over three years great that would be amazing you double up your money and in a three-year span but what i’m seeing definitely some firm you know from some folks out there and i’ve made this same mistake in the past planning at times okay including in the march lows hoping it goes even lower now somebody’s saying
Well i like it to go down another three percent i really want the stock for ninety seven before i buy okay and the problem with this is it doesn’t always go to that ninety seven okay it might go to ninety eight might go to ninety nine or it might start going up and when you don’t get that position belt and also it goes to 103 and then 105 and 110 and 120 all of a
Sudden you’re like dang i missed that one it all all said over the next three years it goes to 200 a share just like you had thought after all you had fully researched this company you had put in all the work you knew it’s probably gonna go to 200 over the next three years it does that but you never got a position in oh because you were worried about getting it
At 97 instead of getting it at 100 or 99 does it really matter does that three percent really matter not the company you believe is gonna double over the next three years it just doesn’t if you had some type of real real value stock you have to really be specific with pricing on it you really do with coca-cola stock for instance you have to be very specific with
Where you buy that stock at but some of these companies that are great companies that you think there’s a high probability it’s gonna double up or more than double up over the next three years because of all these different reasons you look at into it’s just silly to hope you know what goes out another percent 2% 3% even 5% because at the end of the day you can’t
Get too greedy with this you got to get your foot you the amount of stocks i’ve made this mistake with over time is a huge list i’ve been the stock marked for over a decade this is what i seriously do i look into stocks all the time and i’ve been doing that for over ten years now the amount of times i’ve made this cardinal sin let’s call it is ridiculous okay
Where i’ll be looking in a stock i’m like i know it is destined for great things over the coming years but i get so greedy a little short-term stock price and one in at this specific number and everything plays out exactly how i thought it was gonna play out in there i’m on the sidelines just looking i’m like wow so all because i wanted to go down another 2% or
4% i just missed a double up on my money i’ve made this mistake countless times and so make sure you guys don’t make this type of mistake when you see these these markets downtrending don’t get too greedy when it comes to pricing there’s nothing wrong with wanting to always pay a fair valuation but there’s a difference between paying fair valuations for stocks
That you believe are going to go up a lot over time and getting greedy with pricing it like i said i saw this in the marks lows there was no stock in that those marks lows that was low enough for some investors like it’s gonna go even lower and you know this stalking i wanted at this price and it’s like the stock would go that person then they’re like i want at
This price yeah that’s just pure greed and end no different than if the stocks going up like crazy people get greedy on that side and they’re like well it might even go up another 2% cuz look at it’s so hot then the day you just gotta look in you sense am i paying fair valuation or not if you’re paying fair valuation more than likely and that has huge potential
Upside over the coming years more likely it makes sense just buy and not get too greedy with that and as long as you always keeping cash in sidelines you’re always ready like if it goes down more great you can just lower cost basis and you get shares for even a better deal then you got before that absolutely nothing wrong to us well you always got to keep 10 to 30%
Of cash in my opinion so hope you guys enjoyed today’s video as always let me know your opinion down there in that comment section i love to hear from you guys and don’t forget first link down there if you want to learn how to build a low-risk high-reward portfolio that full videos down there it’s the first link in the description you’ll definitely enjoy that one
And don’t forget to smash thumbs up to the youtube algorithm thank you for watching and have a great week earn
Transcribed from video
The Stock Market is Finally Falling! Do This Now! By Financial Education