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Well folks this is just awful okay what’s going on in the stock market what’s going on outside of the stock market i gotta show you something very interesting that i can almost guarantee you 99.9 percent of you guys did not see here today and this is in regards to the venture capital space and something a leaked document essentially is out there from one of the
Biggest you know vc related things in all of the world okay and this document that was leaked here today is downright scary and i’m going to show you that document we’re going to go through that together so you can kind of know what’s going on here but when you see things like that happening it really makes you say oh boy what in the world is going on here okay
So where i want to start today’s video is with tesla my oh boy okay tesla stock is in some some deep trouble you know the stock is now down uh 46 year-to-date and um you know the stock price has just been in a vicious decline for several months now right and the worst part for tesla is not just it’s in a very you know a near impossible market where the nasdaq’s
Down over 30 percent uh just year to date right but we also have this elon musk drama and i’m telling you this elon musk drama is is probably worse than i’ve ever seen and i’ve been in tesla stock for many many years and i’ve been through a lot of the elon musk drama with the sec and all those sorts of things okay but now he’s trying to go political with all this
There was a story at a business insider about him on a private jet and you know if you want to look into that whole situation you can i’m not even going to talk about that that’s uh you know a whole situation in itself okay so nonetheless you know this is not a good look for tesla stock you cannot in this sort of market you cannot have drama like this in this sort
Of market in a bull market it’s fine like you know it’s you know people kind of laugh it off in a bull markets like it’s elon just being elon but when you got all this sideshow in the twitter situation you can’t have that in this sort of market you have that your you know your stocks are going to be absolutely obliterated essentially okay and that’s essentially
Exactly what’s going on here and um you know as i see with tesla you know we all know about the long-term business model of tesla right and it’s in a great place but the thing i’ve consistently said is i’m worried about how order is coming in the back half this year and i continue to be worried about that and we’ll see um you know but the orders that come in the
Back half of this year is what sets up 2023 numbers and that’s what i’m very very concerned about and so we’ll see what happens but obviously tesla stock is just not in a good place right now now personally am i planning on buying tesla stock or selling any of my tesla shares given this move in the market right well for me i’m not planning on uh buying or selling
I’m just still planning on holding the tesla shares i have i have like uh i think like 500 shares left i’ve taken a lot of profits on tesla over the last year or two but um you have about 500 shares left now i’m not planning on buying i’m not planning on selling you know when it comes to me there’s just in my opinion a lot bigger better risk rewards out there in
The market than tesla miasla and um not to say tesla can’t be a money maker but i also think there’s also significant risk that comes with tesla especially if orders are weak going into um you know 2023 and those 2023 numbers are bad tesla could be you know 400 500 stock maybe below that you know um and so these are just some kind of things to keep in mind when
It comes to tesla okay now in terms of big tech you know everything was kind of getting hit for the most part today there was some short covering at the very end of the day before uh the market closed just because shorts don’t want to carry you know carry over the weekend essentially but um you know that that just is what it is that’s a little short covering uh
Kind of rally at the very end of the market but that’s about it but nonetheless you’re looking at these stocks here today apple just hit a new was that should be a new 52-week low for apple at 135 or somewhere right around there for apple microsoft’s getting pretty darn close to 52-week low now if that’s not a 52-week low nvidia is right there amd’s right there
Obviously tesla’s right there well tesla technically 52 week low if i recall is a little under 600 so it’s not quite there shopify is pretty darn close so basically everything in big tech is either super close to 52 way lows or have 52-week lows right now there’s just no strength in big tech at all right now and it’s like where did all the money go and there’s
Just no money in any of these stocks right now right so you’re looking at the markets in general and then as x now down 31 percent as of today over 31 percent and the big number happened folks it really happened today the s p 500 finally hit bear market officially which means over 20 percent down this is a huge moment for the market because we’ve been in bear
Market for a while on the russell which is small cap stocks we’ve been at a bear market for a while on the nasdaq but there the s p 500 was holding up right and like still out of bear market it’s like come on man just just hit the bear market already well and officially today it has hit bear market we’re now down over 20 percent at one point here today in regards
To sp 500 the dow’s getting pretty darn close i you know these have lagged the nasdaq big time that’s not that’s not normal usually there’s about a three to five percent difference uh three to five percentage points difference between the nasdaq and kind of the s p 500 the dow so essentially what that tells you is the s p 500 and the dow likely have some catching
Up to do or the nasdaq is going to make comeback one of those two is going to happen essentially um because you know you don’t get these sorts of spreads for very long so either the dow and the s p are going to fall considerably more over the next couple months or the nasdaq’s going to start coming back this is going to be one of those two scenarios essentially
Okay but it’s not a good situation right y combinator some of you guys might have heard of y combinator before some of you might not have but basically it’s a startup accelerator launched in 2005. they’ve invested in 3000 companies some of these companies include some of the biggest companies in the world stripe airbnb cruise pagerduty doordash coinbase instacart
Dropbox an investment of mine twitch reddit okay and that’s just some of the successful companies they’ve invested in over time and so y combinator is uh you know a huge deal and if you talk to anybody in the tech space and you say y combinator everybody knows what you’re talking about if you say y combinator in the vc space everybody knows exactly what you’re
Talking about essentially okay this isn’t like this is some under the radar thing this is the biggest the big deals right so y combinator this is a leaked email here okay why combinator just put out a um an email to their people okay and basically it says uh during this week we’ve done office hours with a large number of yc companies they’ve reached out to ask
Whether they should change plans around spending runway hiring funding rounds based on the current state of public markets now it goes through all this kind of advice i guess you can say that y combinator is giving but the first sentence is the most telling no one can predict how bad the economy will get but things don’t look good okay now that is scary when you
Hear y combinator say you know things don’t look good uh scary okay downright scary and so what’s gonna happen in the vc space and what’s already happening is money is drying up now this is a huge problem and the reason this is a huge problem is because so many companies are are funded on profitable companies that need the next round the next round to get money
To keep their businesses afloat right now in a lot of those businesses um you know aren’t going to be able to raise they’re not going to be able to raise so which means they’re going to have to either sell out to another company or they’re going to go under ultimately and never mind that if you’re any sort of um brand new startup good luck trying to raise money
Right now that’s not happening so this means essentially there’s gonna be a lot of jobs lost over the next six to twelve months in my opinion in the whole tech space a lot of developer jobs are gonna you know developers have been in a huge position of power for quite some time that’s about to end that’s all i’m gonna say the only reason developers have been in such
A position of power is because of the vc space and there’s been so much money sloshed around that you could basically have any idea for a company and be like hey i want to do this and it’s like oh yeah here’s 10 million dollars oh here’s 100 million dollars just you know build your build your thing here okay and so when you have that much competition developers oh
My gosh you like they can command any price essentially because they get all these offers from the big big tech companies plus on top of that you’ve got all these smaller companies but now some we’re hearing about big tech freezing hiring right simultaneously you’re going to have all these startups just be absolutely basically killed off essentially and so this
Is going to lead to actually a lot of jobs being lost in the tech space over the next 6-12 months in my opinion it’s going to be ugly okay that’s that’s a scary leaked email there okay now one of my favorite things to keep an eye on right now is the price of lumber you want to talk about uh an interesting thing to keep track of lumber now on a three-month basis
It’s down 43 percent 43 lumber holy smokers this ain’t no jokers pretty much they’re going to be giving away trees for free oh my gosh okay wow interesting okay no this is interesting the recession is likely the former sec chief economist said first off i didn’t even know the sec had a chief economist that’s news to me but basically they’re saying it’s very hard
To stop inflation without a recession now everybody’s talking about you know how you prepare for a recession and these sorts of things and i’m like oh my gosh man like they’re lagging big time on all this and i’m seeing all this stuff false on pop out now recently this month about like how to prepare for a recession and you know prepare for a recession things like
That and i’m like they’re they’re lagging man back in january i put out this video i said the recession’s already here i’m preparing for recession and in that video back in january i covered exactly you know basically why i was preparing for recession what i was doing i was kind of out in front of this whole thing the difference between i guess you say me and a
Lot of others when it comes to recessions is i invest during a recession most people pull back they don’t invest any money during a recession right like whenever the recession’s over in like over over then i’ll start investing again so for instance a lot of people did not invest in 2008 2009 in 2010 and 2011. a lot of people didn’t start to invest again until 2012
When they felt like okay we’re definitely out of it because even in like 2011 there was a lot of double dip recession fears right so a lot of people missed a massive opportunity from basically 2009 february 2009 through 2011 where the market went beast mode and countless stocks were up 50 100 200 300 a lot of people just end up missing that so with me i’ll prepare
For a recession i’ll make the moves i have to make so i can get through that but i invest during that entire thing and so i’m looking at this recession and i’m like i’m investing during this whole thing i’m going to continue to buy assets i love for the long term at significantly discount prices and that’s what i do and it’s just kind of been disappointing to see
How much everybody’s kind of lagged on like preparing for a recession because here’s the thing we’re likely already in recession so if you’re preparing now it’s too late like you had to be prepared for this stuff prior to this right and so anyways c c l i have not talked about this stock in a hundred years what am i about to say about ccl well this is actually
Interesting okay ccl so in terms of history with me with ccl i started buying ccl stock a couple months before rona started okay and this was something i lost i lost a lot of money on ccl like i don’t know probably tens of thousands of dollars i lost on ccl because i started buying this like a couple months it was like the worst timing in the world all of a sudden
I’m buying a stock buying the stock and ccl was a good company very well run big dividend payer profit machine cash flow machine and all of a sudden like couple months later they’re like oh yeah you know and we’re going to shut down the worldwide economy and there’s going to be no cruising for like the next two years oh gosh man uh it was a disaster but nonetheless
Ccl i gotta say it’s actually um getting to some pretty appealing prices thirteen dollars a share here today with ccl recession is not nearly as bad as what they’ve gone through this is a thing for us a lot of these travel companies there’s nothing worse than rona even if you get a recession a a recession still far better than uh you have to have your whole business
Closed and you can’t do any business right because at least his ccl can like discount some tickets and peop even in a recession people still do travel it’s not nearly like it is when there’s not a recession but people still do travel and so the the fact that they can still do cruises is like a big factor so for the travel companies the interesting thing is a lot of
People are valuing these stocks like this is worse for them but this is actually way better for them if you as a company would you rather have your hotels closed down and have zero revenue or be in a situation where you could have your hotels open your cruise lines open your your you know your airplanes open things like that every every single one would say yeah
We’d much rather have open than close because at least we get some day and cash flow going in this baby right and we can figure out how to make it work and we can figure out how to be profitable but we can’t figure out how to be profitable in a situation where travel is not allowed okay and so i look at a stock like ccl and i’m like dang man that’s gotten pretty
Darn appealing am i going to buy cco probably not probably not but uh the main reason is there’s just too many other deals in the market right now um that are significant discounts but i thought i would just draw that one to people’s attention another stock i think is really intriguing right now is uber uber stock this stock is down on a one-year basis 52 percent
Almost 53 you want to talk about another company that benefits from the fact that the world’s just been opening back up it’s uber and so you know this is this is one and also keep this in mind guys okay if we’re talking about a situation where the economy gets bad a lot of jobs are lost guess what this is going to make uber’s life a whole lot easier because uber’s
Had a lot of challenges getting drivers and things like that because everybody’s had all these good job opportunities and things like that if that goes away guess what all of a sudden you know there’s a lot more uber drivers out there right because if you fall in any sort of hard times and you can’t get a job uber starts looking pretty darn compelling right i’ll
Do uber eats i’ll do uber you know and so this is a whole situation that could actually end up benefiting uber right and the fact that once again travel’s open back up you know the bottom for uber’s business was was 2021 2022 is going to be better much better for uber than 2021 was 2023 is going to be much better and that’s regardless with the recession whether we
Have a mild medium or a big recession no matter what everything’s better with travel being opened than not okay you know this is interesting jp morgan just fell to another another low okay year to date the stock’s down 27 and a half percent but just fell to another low here today and the interesting thing about jp morgan and for a full disclosure i used i i not just
Use jp morgan but i also um i also invest in the company and my dividends only account okay it’s an investment of mine one thing i’ll say about jp morgan you know pretty much this goes for all the banks you know these babies could have big legs lower from here now a lot of this is going to depend on what happens in this whole recession situation once again is
It a mild medium or a big recession because we haven’t even got to credit fears yet we haven’t even got to the stage yet where people are worried about you know folks losing jobs not being able to pay credit card bills not being able to pay mortgages not being able to pay car loans things like that we haven’t gotten to that stage yet and so the banks have all been
Hit right without even that fear in there now if all of a sudden we get a situation where the credit we start getting real credit fears mortgage fears auto loan fears things like that jp morgan next thing you know that stocks could be at 80 90 stock maybe even below that and all the big banks would take a big leg lower from here okay we haven’t had that yet and so
That’s why the stock is still 100 plus dollars as long as we don’t have that the stock will be 100 plus dollar stock but if you have that get ready for a big drop way bigger than what you’ve seen and you know that would be a moment where the stock would go down 50 plus year to date if you can get some real credit fears out there oh boy and keep in mind there’s no
Spax happening and there’s no ipos happening right now initial public offerings none of that’s happening right now so that’s not benefiting jpmorgan and none of that’s going to happen anytime soon the stock market the ipo market at the earliest it could start getting going again in 2023 that’s at the earliest you could be looking at 2024 because a lot of these
Companies are not going to go public until the the public markets are in a much much much better place in order to feel like that you’ve got to see consistently for like a six-month span like oh the public markets are looking good let’s take our company public you know we’re we’re quite a way away from that situation right a firm just talked that year to date is
Down almost 74 percent this is one of those uh buy now pay later companies huge huge obviously in the space and square is very exposed to that space a firms very exposed that space paypal which is a stock i’ve been buying recently i was also exposed that space but they’re at a much uh to a much lower extent than somebody like a square and especially somebody like
In a firm but even when it comes to stock like a firm their last numbers were great got to be honest like that you know a firm’s last numbers were really phenomenal but when it comes to a firm this is a company that unfortunately could go considerably lower from here if you really start to get credit fears which once again we have not gotten those fears yet but
If all sudden you start to hear about unemployment going up if all of a sudden you start talking about job losses if all sudden you talk about those people that have been doing all this stuff this this buy now pay later not paying oh gosh you want to talk about a firm at 12 bucks 10 bucks eight bucks that’s when you get that sort of situation i mean look at how
Far the fall has been without those credit worries if you add on those credit warriors oh my gosh okay and so and in regards to anything banking related anything by now pay later unfortunately if you’ve got real credit worries those ones even have another leg lower so you know let’s hope that doesn’t happen but it’s definitely a possibility i saw this i just
Thought this was funny justin thomas by the way net worth of 55 million dollars says uh he’s blown away by high prices of beer and food at the 2022 pga championship man you know how expensive beer and food has to be at a at a golf tournament for a guy that’s worth 55 million dollars to say um this is too dang high holy smoke is okay inflation’s even got him oh
Man i thought that was just funny something funny i gotta share with you guys now you know i did this video two days ago and if you didn’t get the chance to watch it yet watch it i’m talking about massive layoffs coming and yeah i mean when i look at what’s happening in the vc space when i look what’s happening with the public companies valuations um the business
Climate it’s just hard to be bullish on employment and those sorts of things and i covered this also in a video recently that you know you could have the stock market actually moving up while there’s economic devastation going on we saw that in 2009 when the economy was in a horrible place 2009 2010 um in the stock market going absolute beast mode so that’s why
I continue to invest during a recession but you know i can say from the on from the employment side i don’t think it’s going to look pretty over the next six to 12 months i think we got a lot of pain ahead in terms of that and real estate is the next leg i did a video all about real estate last night in the channel if you can then check out that real estate video
I show some very important things that you know folks don’t even have access to so definitely check out that follow me on instagram uh it’ll be pinned comment down there send me a dm say hello and tell me how you’re getting through this market much love and have a great day
Transcribed from video
This is Awful | Stock Market Collapse + Tesla Collapse By Financial Education