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Whoa holy smokers folks this ain’t no dang joke is this market wow everybody’s looking at this and like what is going on we’re going to talk about that what’s going on this market first off what’s going on who’s this guy hey he’s got a backwards head he got shaved oh my gosh what happened to this guy okay it’s uh rally jeremy in full effect uh dow having a huge
Day up today about 655 points as of right now nasdaq’s having a great day s p 500 is having a great day you know what’s having a better day than everything the russell here today 2.7 upward move for the russell that’s just a great day there so great day for the indexes everybody’s wondering what the heck’s happening in this market why also is a market going risk
On we’re going to talk about that there’s some very very very specific reasons why this is going on essentially if i pull up my watch list here on hungrybolt uh yeah there’s a lot of green some massive moves nordstrom 38 my gosh uh purple 14 is interesting i was just talking with b man uh last night and i was telling them how attractive the risk reward is in a
Purple right now and it’s just like ridiculous i mean the the risk reward in purple’s crazy right now um so that one’s having a great day 14 uh winning resorts if that one you see that one up nearly 10 you know it’s a risk risk-on day in the market because that’s generally if whenever makes a move like that people want to take a little more risk out there and
Uh just like they might take some risk at the win properties they’d like to take some risk in the win stock i love win great company uh it goes through some hot cycles for you know a year or two and then it just goes through some down cycles it’s consistently in a stock it’s a little more of a a swinging stock let’s call it that than a long-term play although
The company’s a great long-term company because they’re so negatively affected by anything that can happen macroeconomically look at uh once a hundred year pandemic comes out shuts them down in basically several different markets and uh obviously you know because they have big business in macau can you be very dependent upon what the chinese government does at
Particular times with crackdowns and things like that foot locker man is this one volatile right now almost a six percent upward move here today this one’s like dude it’s insane mexico technologies remains the the hottest stock uh pretty much in the market and uh as long as this russia situation continues to be crazy maxar should be uh continue to be just kind of
A hot short-term stock whenever that fades off i think maxar’s stock will have a little bit of troubles the company’s a great company it’s just right now they’re getting mass publicity all over the world literally because there’s satellite imaging technology and has taken pictures and those pictures are going on every big news publication out there right now um so
Everybody just wants to play the stock right now as it’s like the hot play in this sort of market and um when it comes to something like maxar yeah you know whenever this dies down i think uh the stock price in the short term will have trouble although i actually do like the company in the long term funko four percent upward move there pfizer four percent move
Upward there so far about three point seven percent move there after their earnings some were hoping for a better day than that but it is what it is you gotta take what you can get and some of the beating down dogs uh sam up three percent here today skyward solutions three percent if we pull up next one up avon brands three percent uh walgreens having a good day
Two percent there stitch fix two percent corsair two percent the chef continues upward and uh about two percent move there tesla you know surprisingly underperforming today only a half percent move so that was a little surprising to see tesla underperforming now the interesting thing is i was looking at this and i was like you know a lot of green but i looked
At my watch house and i was like there’s actually a lot of red and i’m talking viciously red and if i just started with like you know this red another thing today was a horrible day in the market look at this okay lemonade stock is this that stock doesn’t get hit enough a 7.4 percent downward today uh look at good rx man is that one getting hammered i got to see
What’s going on with good rx because that one just got hammered yesterday and hammered again today about a seven percent downward move there voyager digital down five percent here today beyond meat four point five percent downward move robin hood the hood’s down three and a half percent here today still excuse me the planet down three percent smile direct club
Uh down about three percent there teledoc down two and a half percent square down two and a half percent in palantir down about two and a half percent so you know on this great of a day in the market i’m actually uh surprised to see remember a lot of these are popular retail stocks i’m actually surprised to see those stocks down that much on this huge of a day for
The market because let’s let’s not mistake it okay that’s a huge day for the market so to see those stocks down like that is actually a little surprising all right now what’s going on here there’s very there’s several different reasons on why you’re getting such a massive risk on day in the market the first reason up here is federal reserve chairman jerome powell
Came out and spoke today he said jay powell said he sees interest rates hikes coming okay we all knew that okay but noted wednesday that the russia ukraine situation has injected uncertainty into this outlook okay so that gives the fed a little hmm let’s call it like a scapegoat out of this uh situation with uh you know raising rates that if they want to raise
A little less aggressively and i’ve been talking about this on the channel for like the past week they want to raise less aggressively now um they have their perfect scapegoat here oh there’s this russian situation going on we don’t maybe want to raise as quickly right now this is a most important thing with what he said very specifically powell said he sees a
Series of quarter percent point increases coming though he left the open the possibility of moving more aggressively should inflation persist now that is so darn key and the reason that is so darn key is the market was expecting at least a half point raise and including myself i was even expecting at least a half point raise in march like that you know right off
The bat do a half a half point raise um and so the fact that we’re talking only a series of quarter points means a fed is not going to be very aggressive at all when it comes to raising rates and so any fear that was really out there as far as the fed is going to go crazy half a point half a point for the whole year next thing you know also we’re at three four
Percent by the end of this year and what that would mean for the stock market is not good right because then savings accounts would likely all go up massively obviously housing could potentially drop if they raise that quickly uh you know loans could be affected very negatively as far as taking out loans because we’re gonna pay a much bigger interest rate when you
Thought about all that baked in horrible like scary stuff also now that’s basically being taken out because now we’re just talking about a series of quarter points that’s a very very small amount into the market and so now all those folks that were very very scared you don’t have to be very very scared about the feds gonna be a beast and like they’re really gonna go
After this and i had a lot of friends that were you know saying hey oh man wait to see how fast the fed’s gonna raise here they’re serious about taking down inflation uh and you know that’s just not the situation that’s just clearly not the situation at all and so yeah um you know inflation is going to continue to be a situation regardless if the fed raised or not
That’s the thing like i think people assume like that the fed raises a little faster like it’s going to kill inflation it’s not the way it works inflation’s going to remain high throughout the year what i expect and i’ve said this a million times recently and i’m going to continue to say is starting in two months from now i think the rate of increase in inflation is
Going to slow dramatically and as we go throughout the year the rate of increase of inflation is going to continue to slow and slow and slowly still going to be inflation don’t you know don’t uh think anything other than that but the rate of increase of inflation which is extremely important that is likely going to start to drop as starting two months from now the
Implications for the us economy are highly uncertain and we’ll be monitoring the situation closely said powell the near-term effects on the u.s economy of the invasion of ukraine the ongoing situation the sanctions and the events to come remain highly uncertainty added making appropriate monetary policy in this environment requires a recognition that the economy
Evolves in unexpected ways we will need to be nimble in responding to incoming data in evolving the outlook so basically he’s just leaving the door open there so if they have to raise more aggressively they can raise more aggressively if they aren’t going to raise as aggressively and let’s say they go one period without even raising rates uh because they got some
Data that was troubling or something like that they’re leaving the door open that that nothing certain here they could raise maybe a little more aggressively they could raise less aggressively um you know so i think that’s kind of a smart decision on his part because things change really rapidly in a six-month span nine-month span 12-month span a lot could change
In the underlying economy a lot can change obviously in the global economy and with situations like this right and so you kind of want to leave yourself a little wiggle room there let’s just call it that little wiggle room so you’re not like oh i have to do this certain thing because that’s just that’s just not the best decision right later he said the fed wants
It to get inflation under control but quote the bottom line is that we will proceed but we will proceed carefully as we learn more about the implications of the ukraine situation on the economy the observations come amid a 40-year high for inflation as the u.s basically complicated with the ukraine situations driven oil prices insane which if you’re thinking about
Inflation right well uh one of the bad things for inflation is oil going so insane it’s going to hurt gas prices going to hurt cpi consumer price increased 7.5 percent from a year ago in january in the fed’s preferred inflation gauge showed its strongest 12-month gain since 1983. inflation’s been going beast mode we know that and um it’s likely going to continue
To go to beast mode at least here in the short term that is something we do know okay so nonetheless a pal coming out and basically being a little um less aggressive the market takes out as a win market takes that as a risk on right mixing up here so last night if you didn’t know there was the the state of the union address which uh president does every you know
Pretty much every year um and it was interesting because i was looking at some data based upon how the stock market does the date after the state of the union which i thought was interesting and you know this was basically 2002 through 2019 that’s what the data market watch had here uh 11 11 days are green seven days are read after the state of the union so most of
The time the market is green after the state of the union and if you think about the state of the union usually it’s it’s uh you know supposed to be an exciting speech and it’s supposed to get everybody jacked up and so i guess it’s a little more natural that many times you’re gonna have a more green market given um you know uh there’s usually an optimistic tone
And we’re gonna stop this and we’re to go after this and those sorts of things so that’s interesting you should usually expect a green day after the story of the state of the union most of the time next thing up here that i think is turning this market to a little more risk on is this google tells employees in bay area and other u.s locations to return to office
By april now what’s interesting about this is how fast things are are really flipping here right where you know going from mask off to now employees returning to locations and things like that and you know obviously this is a this is there’s no other way of of of you know putting it other than this is a great thing for the overall economy and i was talking with
Somebody one day about you know them going back to the office and how much more money they’re going to spend by going back to the office versus that when they’re at home at work right and they’re going to eat you know obviously they’re going to eat lunch out instead of eating lunch at lunch at home usually um you know they’re going to they work for a big you know
Tech company out there um they’re gonna have to fly a lot of times from one location to another location um you know travel is gonna open back up for them hotel stays and i was just thinking about you know uber rides and like all the stuff that is is good for the overall economy that just doesn’t get to get seen when somebody’s just sitting at home for instance
And and working from home so ultimately it’s a good thing now some people want to get political about this and i know some people that say you know it’s the dems you know with midterms coming up coming up the dems want to essentially uh you know get get the economy back opened up as much as possible and so i’m not going to get into that whole game but that’s a
Thought process out there but yeah i mean when you see stuff like this it’s it’s obviously there’s no other way of putting it other than it’s bullish for the overall global economy okay uh you know i think nordstrom okay so norwich i’m having a huge uh upward move today 30 plus percent right you know when they came out with their earnings last night there’s no
Other way of putting it but that was um you know that was i think a big moment for the market and the reason being is nordstrom reported essentially numbers that were uh massively better than the market was expecting i actually think they might have low ball numbers a little bit and so when you’re talking about nordstrom they’re they’re uh you know their their
Department stores cater to the upper middle class and to even like the wealthy right their nordstrom rack stores can uh really compete in the middle class and so when you think about nordstrom um you think about an ultimate consumer play and if there was any worry about the underlying economy and like oh no one’s going out and spending money which i can tell you
It’s completely false like you out there in the real world people are spending money left and right um this is getting killed day after day you look at the target numbers right targets the you want to know you want to pay attention to middle class pay attention to target numbers literally like watch target numbers that’s going to show you how the middle class is
Doing because guess what the middle class that’s who shops at target i mean even more than the middle class but that’s who ultimately shops like target’s putting up their numbers because the middle class shop in a target right so target number’s extremely encouraging nordstrom numbers amazing and what we’re seeing is we’re seeing a market right now at least in the
Short term of the haves and have-nots right and this is what’s confusing a lot of people so as the economy is opening back up more and more as the world’s getting quote-unquote back to normal right you have certain companies like netflix like facebook like uh you know other is shopify other services that benefited massively from a two-year span where everybody was
Kind of forced to be home to now that’s going away and other businesses are prospering because of this while other businesses are being hurt right because they’re having to go against insane comps here every year and so it’s making them look like they’re not even that strong right facebook is still an incredibly strong company right the amazon’s still an incredibly
Strong company um you know all these companies that are reporting numbers but they’re they’re troubling guidance they’re being hurt because they’re having to comp these insane numbers year over year and it’s hard to comp when the world’s opened back up and so you’re having a divergence in the market where there was a misunderstanding about oh the economy must be
Bad because netflix is reporting bad numbers and it’s like you just start thinking about things logically and it’s like dude a year ago everybody was forced to be home so netflix pulled so much demand forward like what do they have to pull forward now and as the world economy opens back up there’s not as much of a demand like i have to sign up for netflix now right
Um facebook you know it’s just social media in general if people aren’t just sitting at home all day you know imagine all the kids that were out of school and whatnot right you’re just sitting home playing video games or on their phones or on social media and whatnot all those things benefit it massively if you’re going to force everybody to be at home but as the
World opens up more and more the numbers are going to be tough comps for all those type of businesses and meanwhile other certain businesses are just you know continuing to thrive in this sort of market think about companies like live nation and what they’re going to be able to do think about a lot of the hotel chains and how the numbers are gonna put up over the
Next year or two think about the airlines and numbers they’re gonna put up over the next year or two as the world economy opens back up right so there’s gonna be a divergence here between the companies that have these incredibly tough numbers to try to comp against right which is more the the at-home place and then the we’re opening back up the world economy plays
That are just in a really really strong position right now and it’s con it’s causing a lot of confusion out there in the market by the way i hope you guys enjoying this video as always i appreciate you guys joining me make sure you subscribe the channel if you’re not already subscribed okay now vixx is still running red hot it came down massively today but we’re
Still at 30 on vix and i think it’s important to remember that when the vix is this high it doesn’t happen very often most of the time the vix is in a 10 to 20 range so when you start talking about a 30 or 30 plus vix in this sort of market remember you’re still running hot when it comes to volatility and so i want to just leave off here with it with a few words
To everybody watching this right in this sort of market right now vixx is still crazy a lot of volatility in the market you can’t get too down in this market you can’t get too hyped in this market because the headlines are going to be different by the day in one minute it’s going to seem like great news and next minute it’s going to seem like bad news and so it’s
It’s entertaining to watch all this play out and kind of pay attention to it but at the end of the day don’t make your investment decisions based upon any of these headlines powell’s going to do this or make your investment decisions based upon if you see great deals in certain stocks over the next you know three years five years seven years and you think this is
A great stock to be in over the next you know several years make your decisions based upon that because if you’re making your decisions based upon the headlines i’m telling you in this sort of market it’s just not the the right way to do it because the next day all of a sudden you can get bad headlines the next thing you know you’re selling out of stocks because
You got some bad headlines out there and you just don’t want to do that in this sort of market you just kind of got to keep your head down you can see what’s going on out there but ultimately just focus on buying companies that you love for the next five years if you do that uh and you’re right about those companies you’re going to make a ton of money in this game
And trying to time out the bottom and like maybe we’ll drop back down tomorrow so maybe i’ll wait till tomorrow don’t play that game because you’re just going to start playing the short term trading game and that’s not a game to play guys that’s not a game to play at all so uh you know keep focused keep your head down don’t get too hyped on this market don’t get
Too down on this market uh make the buys you got to make throw those babies in the filing cabinet if they go down buy some dang more throw those babies in the filing cabinet and be a happy owner of those companies over the next you know you know five years or whatever so yeah hope you guys enjoyed this video as always i appreciate you guys joining me much love
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Transcribed from video
WHY THE MARKET JUST WENT INSANE By Financial Education