What Happens during a Bull Market? Pure Insanity!

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Good day subscribers thank you so much for joining me today i am jeremy and this is a financial education channel and today we’re talking about what happens during a bull market i’m gonna talk to you guys about the six things that really happen during a bull market a bull market meaning the type of stock market that just seems to go up and go up and go up and hit

All-time highs and all-time highs in the type of stock market that you’re like man when was the last time the mark even went down it just seems like almost every day the stock market goes up if it goes down it’s like a rare occurrence oh my gosh the stock market went down 30 points today wow that’s like hasn’t happened in so long that’s the type of bull market that

I’m talking about i’ve been involved in many of these bull markets because i started investing in in about 2009 i started looking into stocks in 2008 and ever since then the stock market has just gone up and up and up and up and about because i started investing the stock where here was that like 7,000 8,000 something ridiculous like that now it’s approaching 20,000

Guys so i’ve been part of many bull markets and i’ve also seen a bear market but today we’re just focusing on the bull market what happens what really it happens guys leave this video a thumbs up if you enjoy it and leave any comments if you have any comments and relate it to this video i would love to hear them guys so number one thing that happens is balance sheets

Or forgotten i preach balance sheets i preach you know paying attention to balance sheets investing companies that have strong balance sheets don’t invest in companies have really weak balance sheets because when the recession comes those companies are gonna get it gonna get hammered but in a bull market everybody forgets about balance sheets because everything just

Seems so great and you know everybody’s revenue is pretty much going up and everybody’s profits going up and margins are getting better and you know macroeconomics are good all those kinds of things guys so everybody stops paying attention to balance sheets me i don’t stop paying attention to balance sheets ever but you got to understand that the companies that

Have really strong balance sheets they’re not gonna get nearly as much respect as when there is fear times when there’s fear times and you know when there’s talk about going into recession or you know realistic possibility we could go in a recession or we do go in a recession companies with really strong balance sheets they get a ton of respect and their stocks

Don’t drop nearly as much but the companies have strong balance sheets during a bull market it means nothing guys it means absolutely nothing i i always saying strong balancing companies no matter what because i want that company to be able to survive if they if they run upon some troubles in their company or if we go to a bigger recession guys i always want to

Feel comfortable and be able to sleep well at night and but at the same time my companies don’t get any really better valuation by having a strong balance sheet during a bull market so that’s number one and that’s just pure insanity in my opinion because the balance sheet is just about as important of an investing factor as anything out there guys absolutely so so

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Vital so important so number two guys everything becomes short-sighted everything becomes fast money let’s make fast money fast money you know because everybody’s just getting gains everybody’s seen everybody else’s gains you’re like all dammit he made 20 percent in the last month i need to trying to make 20 percent this month cuz i only make 10 percent this month

So i’m slack and everybody becomes short-sighted and just looking at things in a very short term you know over the next couple months or even the next couple of weeks everybody just seems to begin to get so short-sighted and it’s kind of natural guys because if the monies are flowing out there and it’s just coming as just coming you know everybody starts to get

A little greedy and try say you know become a little little you know more greedy i guess you could say they just want to make more money in a short term in short term and you know a long long term investors are kind of forgotten because then it’s like a long term not quite as important you know it’s all about making money right now it’s shortsightedness just goes

Insane during a bull market guys everybody becomes short-sighted they just want to make as much money as fast as possible number three thing that happens is beating or missing analysts numbers becomes like the most important factor during a bull market you know if that company beats earnings and beats eps and all those kinds of things in revenue and their guidance

Is good then those stocks go generally go up on time and if a company misses then it gets hammered in the short term and then it becomes almost like the only thing that’s important during a bull market i don’t know why that is it just it happens guys i see a time after time with these companies that are reporting the ones that report great guidance and in great

Numbers they they get their stocks go up insane amounts just like wow that shock really went up that much how you know that yeah they be their numbers a little bit but it’s not that much of a beat that the stock should go up 2030 percent and the same thing with stocks that you know might miss numbers just by a few cents sometimes are start to go down 20 percent

I’m like that makes no sense how does that stock go down 20 percent because i beat the missed numbers by two cents you know it makes no sense but that’s what happens during a bull market it becomes all short-term it becomes all about did you beat your numbers as your guidance gonna beat next quarter if it is what your stock goes up and if you did and your stock

Gets hit crapped on big-time the good thing is though even those stocks that get crapped on in a bull market the market is generally going up so even though i might get killed in the short term it may still bounce back there and strong just because the whole markets going up so that’s that’s the one good thing about bull market as far as that goes if you’re in

A stock that barely misses numbers and those kinds of things guys number four the investment community as a whole gets lazier when a bull market happens and money’s just seems like it’s so easy it’s coming at you and you could pretty much invest in any company it’s like shooting fish in a barrel everybody starts to get a little lazier they stop deep diving into

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Companies and really looking into the details really looking into the balance sheets like we talked about and really looking into okay how did they get this type of game here they stopped really diving deep everybody just starts to get a little lazier because it just seems so easy to make the money guys it’s no different than you know okay seventeen-year-old comes

In they start working at mcdonald’s right that first dave inferred maybe even the second day they’re gonna care so much about like how they place that if they’re making a big mac how do they put that little burger patty on that burger so perfect and let’s put the piece of cheese so perfect and then let’s put the lettuce by the time they hit two or three months

They’re like it’s so damn easy you know the money’s gonna come to me no matter what just throw that burger patty on there and the cheese goes on there and the lettuce and here you go put in the bag you know they stopped caring as much because they realize this is just a pretty easy job and the money’s gonna come to me no matter what it’s human nature guys and the

Same thing happens with the stock market everybody’s just making gains everybody’s just making ten percent a month or whatever they’re making five percent and they’re like oh this is so easy you know i don’t even need to look into it you know they start feeling like god liam i can just do it and it’s just so easy the money just comes to me that happens too bull

Market guys the investment community becomes to get lazier it’s really happens guys don’t you get lazy though we never try to get lazy we always want deep dives we always wanna look into things for when the dark days do come or for when our companies struggle guys so never stop deep diving number five big fund managers begin to chase games and begin to put the push

The stock market even up these big fund managers that manage hundreds of millions of dollars billions of dollars guys they see their their buddy fund manager over there and he’s got a higher percent gain and then this guy’s got because this guy wasn’t as heavily invested so what he does is like i need to make gains or i’m gonna lose my customers to that as a big

Fund manager over there because he’s got a ten percent game i got a seven percent game so i need to push some money up toward these stocks so then hopefully i can get a better game so i can try to catch up to him so he goes ahead and pushes a ton of money out there towards stocks that pushes the stock market up even higher and when you got ten twenty thirty fund

Managers all doing the same thing chasing big gains then it’s just a funnel effect you just push the market to push the market up and everybody’s trying to catch up to these gains guys because they don’t want to be outdone by their other fund manager because they don’t want to lose customers to them guys so big fund managers begin to chase the market which ends up

Pushing up the market even more because it’s so much money coming into these stocks that it just pushes things up higher and higher then retail investors have to pay even higher prices then the other fund managers have to pay even higher prices and they push it up even further so it’s a compounding effect that’s just kind of like a melt up saying that it may be the

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Thing that happens when the start mark is going down you know everybody’s selling positions and it’s like a meltdown and the stocks just go down and down and down same thing happens when it goes higher and higher it’s just a melt up guys and things just melt up because these big fund managers push money push money in any stocks guys so that’s the number five thing

That happens during a bull market number six and lastly here guys big in small investors they begin to margin out you know big funds and even smaller investors and whatnot they all start to end up trading margin accounts if they don’t already have a margin account or margining out money so basically taking on debt to invest more money because the games just seem

So easy and it seems like a no-brainer to start margining out putting debt and starting an investor you can make even more money than what you really have so you can start investing $2 for every $1 you actually have so that way these gains you can get are gonna be so much bigger and the next game is gonna be even bigger and bigger and bigger because you’re you’re

Investing money that’s not even yours and who cares about paying interest rate because you know that less less than what the markets going up at that time so that begins to happen guys big funds being a marginal small investors the in the margin out the medium sized investor big in the margin out and people just start taking out debt just to push the market up

Even higher and then the there’s even a lot of debt money out there in the markets and whenever things do come correct crashing down it comes really fast because all those margin counts started to get margin calls which is a lot of what happened in the great recession which is why stocks dropped so drastically because so many margin calls began to come then then

Big funds and even small investors they have sell their positions and and that force of stocks even down further and they gotta sell their position bull market though it just forces everything to go up higher and higher and higher guys so those are the six things that happen during a bull market guys it’s just pure insanity that happens during a bull market guys

I want to share that with you so you can kind of understand it a lot of it’s just human nature stuff that people do it’s not that they’re bad people it’s just sometimes you just you just made a certain way as a human that when you see things are easy you might get a little lazy you might want to be greedy and get more and get more and those things just happen guys

If you come across this video on this your first time watching the channel you may want to subscribe i talked about personal finance in the channel we talked entrepreneurship on the channel and we talked the stock market the most on this channel leave this video a thumbs up if you enjoyed leave me any comments if you have comments on this guy’s i would love to

Hear them thank you for watching guys and have a great day

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What Happens during a Bull Market? Pure Insanity! By Financial Education

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