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How’s it going everybody this is beat the bush today i’m going to talk about the stock market and obviously the past few weeks it has not been doing very well however you might think that some companies will actually increase in stock price during this time because they’re getting more business right now before i begin to have to give the proper disclaimer that i
Am not a financial adviser that these stocks i’m gonna talk about they may go up or down in value this is not a recommendation to buy or sell these assets if you guys are interested in investing yourself check on my weeble referral link down in the video description below or if you sign up you can get a free stock if you deposit $100 you can get yet another free
Stock now the first one i want to talk about is 3m 3m makes n95 masks they’re one of the very few producers that makes these masks so in the beginning of this situation you might go oh 3m they make these mess therefore i should just run to this stock and just load up on them but i did not buy into 3m because i have my past experience of buying in a sony because i
Thought oh ps3s are great i should just invest in the stock but it turns out that sony is a really large company they make a whole bunch of other goods such as high-definition tvs they make mp3 players at the time and a whole bunch of other stuff so just because 3m mix and 95 mask does not mean you should buy into the company because this is not their only product
They make a whole bunch of other stuff they make adhesives double-sided tape a lot of different products so i think if you’re looking for a pure n95 type mask play you might look for apt this is alpha protect however i have to warn you guys against this stock because it’s so extremely volatile every single day you might see it go up and down 15% so to me the stock
Has ran up so much since the need for these n95 masks that it becomes a really risky thing so this is not an endorsement to buy this stock or anything i’m just pointing it out because well if you want to be really really leveraged right you only want to do like a n95 mask play that might be something that you might consider costco is another one i looked into
Because at the beginning of this write a lot of people are just lining about costco they want to stock up on food as well as a lot of different grocery stores and grocery store that delivers after the initial surge of people buying people are actually locking themselves down and they go oh well you know you have enough supplies already they don’t actually have to
Keep on loading up and going every single day so after everyone got their supplies the traffic at these stores is actually going down now at first you might think oh costco is gonna skyrocket because everyone’s going there to buy their stuff if you look at the chart of costco over here the stock price actually just kind of kept its value it didn’t actually go up
Or anything so the idea of investing in something just because it suddenly got very popular you have to watch out if this is gonna be popular for a long duration rather than just a short surge pizza hut is another one that i’m looking at now you would think when people are seeing at home they’re gonna order out right so they’re gonna order pizza pizza it tends to
Be like a type of comfort food and the people that don’t like to cook or doesn’t want to cook they’re gonna order pizza however pizza hut still dropped and i think it’s because of the massive unemployment numbers when people are unemployed they cannot afford to buy as much pizza so they’re just gonna cut back a little bit and if you have like 10% of the entire
Economy cutting back on ordering pizza even things that are popular are we gonna go down in value in terms of the stock price so far we have 3.3 million unemployment claims just last week this week we have 6.6 million just for reference we have 330 million people in the entire united states 155 million are employed in 2018 it is estimated that we’re gonna reach
About 40 million unemployment numbers in the next few weeks or so this translates to about 25 percent of unemployed people and if you have unemployed people they’re not gonna buy pizza another one that crossed my mind is nintendo nintendo makes a game console the nintendo switch for nintendo these are basically the only thing they sell so and you think people are
Gonna lock themselves up they’re gonna buy a nintendo switch they’re gonna buy that fitness exercise game so this is great and all but it seems like any company that has a recent search due to this lockdown all that happens with their stock price is that it just kind of stays flat rather than drop like 20% 50% like most other companies so if you happen to be one
Of these companies or you owned them well okay you’re not gonna lose all that much money this is great but it’s not to say that you should go ahead and buy into these companies because if you did and you bought it at the beginning of this downturn right at the end of february or what not for most of these stocks i’m talking about today you think that they’re gonna
Go up ten percent or something but instead they went down a little bit just a few percent instead so buying into these things that appears to be very popular it turns out it’s not a great investment after all if let’s say this infection just keeps on going on we’re gonna get more unemployment numbers the whole economy is gonna sink so even if you have some of these
Companies that are doing pretty well they tend to drag down these companies as well so maybe these stocks is not gonna get hammered they’re gonna just stay relatively flat so it’s not actually a very good investment opportunity for most stocks out there some people might think oh you should invest in netflix right now because if you’re shut-in people tend to watch a
Lot more netflix and yes the traffic has gone up a lot so much so that over in europe they actually have to change the high-definition streaming all the way down to standard definition so they’re not using as much bandwidth over there now have you asked me if they switch my high-definition netflix all the way down to a standard definition i kind of want to pay standard
Definition price for this right but anyway at the beginning of this lockdown if you thought oh everyone’s gonna go buy netflix they might just start to sign up for this even if they never had netflix and then they may stay with this subscription and if you think so yeah maybe that might be true but you may lose more subscribers due to the unemployment numbers so in
The end if you bought netflix at the beginning of this infection you probably didn’t make all that much money now another one is amazon you think that when people are staying home people are gonna order a lot more stuff maybe they get bored they’re gonna go online shopping one of the things that is in super high demand is the online groceries segment of the market
Amazon has something like this however it’s like they are very very limited on how much they can deliver they can deliver as much as they can and their delivery people limited if you think amazon’s gonna go up well people keep on getting infected at their warehouses so if this is going to limit the amount of throughput that they can just send those packages out of
So again it seems like many many businesses are affected even amazon warehouses so then they can’t ship out those things as much as full capacity so other than this point you can imagine if there’s a lot of unemployment numbers and it goes down the economy goes down people are not gonna order as much stuff so amazon is not immune to this infection either another
One i want to talk about which is counterintuitive which is gold you don’t actually have to buy the physical gold if you just want to like buy a fun you can buy gld and coming up to this infection you can see gold increasing in price however during the massive scare sometimes gold does go down you would think that if there are massive scares and people think that
Economy is gonna go down that the gold would just keep on going up but no sometimes it goes down as well and i think this is because sometimes if it’s really really bad people need liquidity they look at their gold holdings they go oh we i need some cash so they sell some of that in order to i guess remain solvent right if they have a whole bunch of rent do their
Stocks went down and they need cash maybe they’re trying to raise cash to buy more equities so i thought this was a very interesting thing that the gold price actually dropped so much sometimes when you go into this infection type thing you have certain conceptions about where the stock market is gonna go if something is gonna be really really popular maybe even
Short term you think of investing into it in hindsight after looking at all these stocks it is kind of not a really good idea to invest in the costco because it went down anyway amazon went down anyway a lot of these things that became very popular netflix for one as well they didn’t really earn you all that much money if you bought it at the beginning of march so
What probably would make you a lot of money is if you had the foresight of saying well one of the worst things that’s going to happen is airlines and cruise lines right then if you happen to know this with some clairvoyance or whatnot then you woulda shorted those stocks and then you would have been ingenious investor for me personally i kind of look at all this
As a learning experience i take all of this and i just kind of digest it because when something like this happened next time i can go ok just because it surges in popularity does not mean that the stock price is gonna go up you need a constant surge and you need this surge to last for a really long time not just because the infection is here because the infection
Could go away one day and all of a sudden that demand is is gonna disappear now i also need to talk about zm zoom okay this is the video conferencing app this video conferencing thing i would have to say i have never used it myself but i do know that a lot of work places like to use it and with a lot of people working from home people are gonna use this thing but
Although they’re probably gonna get a lot of people subscribing to it the companies are gonna pay more because they have a lot more users or whatnot i can see what happening is that the entire economy might get dragged down then the company is gonna lay off people let’s say they lay off half their force then they’re not gonna need to buy this zoom subscription for
Half of their employees that they used to need to buy before so even though this product might be very popular now and a lot of people are jumping on it if the entire economy goes down i can see this stock being dragged down as well this is the same idea across all these stocks that i’ve talked about in this video so thanks for watching this video don’t forget to
Give me a like comment down below let me know if you thought of the same thing on these stocks or did you buy into these thinking that they’re gonna go up comment down below let me know and as always push that subscribe button and ring that bell icon thanks for watching
Transcribed from video
Why 3M Costco and Pizza Hut Didn't Go Up By BeatTheBush