why the stock market is going down…

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Looks like the markets are gonna be down another three to four hundred points today and i thought today’s the perfect day to talk about why the stock markets are really going down why are they really going down and we’re gonna kind of look into history okay the time since i’ve been in the stock market all the things that have happened that have kind of pushed the

Markets down in a major way okay we’re gonna discuss that and then it’s all gonna make sense to you on why the markets are going down right now okay it’s all gonna make sense so my first full year in the stock market was 2009 actually got in the stock market in 2008 started investing in 2008 but it was toward the end of the year and whatnot so my first full year was

In 2009 now 2009 there was a ton of fluctuations in the stock market there was 10 times you know the market would go down and whatnot why was this was mostly because we’re on a bad economy at the time okay we had a really rough economy the economy was a mess okay so there was a ton of fluctuation as a stock market up down all over the place and that was because we

Were in a really bad economy and then some people thought we were kind of coming out of that bad economy and whatnot and it was just cause crazy fluctuations at 2009-2010 okay where we officially come out of the you know recession and everything like that and we kind of have this flash crash that happens okay there’s this flash crash that happens and this is situation

Where everybody starts worrying that like the computers are taking over okay and it’s just a bad situation and there’s no control in the stock market anymore and just everybody’s so worried about that right and the other thing is double-dip recession oh my gosh if i had a dollar for every time i heard double-dip recession on tv i could buy so many double-dipped ice

Cream cones it’s ridiculous that’s all they talked about it seemed every single day i’m turn on the tv and watch cnbc and and they would talk about double-dip recession and somebody would be like oh yeah we’re gonna have a double-dip recession and it would cause the markets to go down and there was so much fluctuation between the flash crash and the computers are

Taken over and the double-dip recession oh my gosh we’re going to go back in there with recession scenario again it was just ridiculous guys and it was consistent okay so 2011 comes along and also you know what what happens in 2011 in a major way that caused the markets to go down well it was a us credit dot downgrade at the us credit rating hadn’t been downgraded

In such a such amount of years and the us credit rating got downgraded and everybody freaked out everybody freaked out all my gosh the us credits been downgraded what are we gonna do with ourselves into the markets you know tank and it was so much volatility in the markets at that time the us credit got downgraded and that was just what happened there guys 2012 it

Was oh my gosh obama’s gonna be reelected we haven’t had much growth you know since obama has been elected and whatnot we’re gonna be stuck in kind of a very slow growth or no growth environment oh my gosh is gonna be so bad blah blah blah that was the worry there in 2012 and that cause of markets to go down actually the day that i remember the day well i remember

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The day obama was elected yeah i think the market went down five and a half percent now i was way back then and then when he was reelected i think the market was down like two and a half to three percent it was a really bad day that day everybody was like one on what romney at that time and maybe he could be pro-growth and whatnot and yeah that was a situation

There 2013 was all about the fed might stop the stimulus the fed might stop the stimulus and if the stimulus stops the whole market is going to go in crash and whatnot and we’re just gonna be in a bad situation and the fed was just talked about all the time is a fed gonna stop you know qe whatever we were on at that time two or three or whatever is a fed gonna stop

This stimulus and whatnot oh my gosh where markets are gonna crash that was the big worry in 2013 that would look up so much media time it was insane 2014 was a year when analysts expectations got too high and never in my time of being in the stock market do i remember a specific time of year when there was so there were such high expectations for companies and

Companies kept missing those expectations it was insane guys especially in the summer time into the fall time there were so many companies missing x you know expectations and then people were like oh my gosh what’s going on is there an earnings drought or this and that then we had ebola do you remember ebola oh my gosh that costs the markets to tank that caused

So much volatility in the market it was insane ebola everybody’s gotta metrically get ebola or something that was causing the markets to go down then that was the fed in the news again oh my gosh what’s the fed gonna do are they gonna start raising rates or is are they done with the stimulus blah blah blah the fed was always talking about that was 2014 2015 was

A year of oh my gosh china their growth is slowing they can’t grow a seven eight nine percent anymore they might only be able to grow at six percent which is still insane five or six percent when china’s growth is slowing and you know everybody was so worried about that that was in the news and then oil oil crashed in 2015 it was just a ugly ugly situation and

Everybody was just you know flooding out of energy stocks and people were worried and likewise oil going down well really is because supply and demand got out of whack we had way too much supply coming out of the united states that hadn’t been factored in fracking started coming out and you know around 2008 it should and whatnot started really picking up and we

Started producing mass amounts of oil here in the united states and that completely changed the market obviously and the price needed to come down it was way too elevated those particular times and that just cost a lot of market volatility a lot of drama 2016 comes around and it’s like oh my gosh who’s gonna be elected hillary trump oh my gosh what’s gonna happen

Here so much volatility around that right and then there was a good old it’s we’re in that 70 year it’s up seven eight year timeframe now every seven to eight years there’s a recession that happens that’s like the talk you know historically every seven to eight years the recession happens we’re due to have a recession this year it would cause market volatility

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The election would cause market volatility and it was just you know a mumbo-jumbo then to those as 17 comes along last year right and what’s the thing that got the market’s goal you know down in in 2017 well ulsan you know kim jeong-hoon would say something and it’s like oh my gosh are we gonna have a nuclear war what’s gonna happen here and the markets you know

We moved down and overall what happened in 2017 the markets moved up now as far as 2018 goes what’s happened so far is this year the worry is all about trade okay and there’s gonna be a trade war between the united states and in china and that’s going to cause a huge you know situation and oh my gosh what’s is gonna do that is a talk right now trade war so if we

Look at all these things and remember i only covered the big stuff there was also a lot of micro stuff that happen in all these years that caused more market volatility i just in covering the big stuff that i remember if i think about a year like i remember that was a big thing right what are all these things have in common all these things they’re all massively

Different right but they all have one common thread and what that is is every single one of everything that happened in these years it caused market uncertainty the markets don’t like market uncertainty the markets meaning people people get scared when they hear such a such situation oh my gosh ebola oh my gosh she was credit-rating oh my gosh albama oh my gosh

Trump oh my gosh nuclear war trade war blah blah blah the people get scared and they make decisions short-term decisions based upon their fears and they sell or they buy and this just based upon short-term stuff right and it happens time and time again and 2018 it’ll be something new and in 2019 there’ll be something new in 2020 and 2021 and 2022 it’s always going

To be something that causes a market to have volatility in the short-term but what ends up happening over time 2009 the the market was you know the dow jones was 7,000 points in 2009 right 2018 what are we at 23,000 2020 4000 points on the dow right now look at that guys look at that all that stuff that you could have been worried about all that mumbo-jumbo crap

That you could have been focused on meanwhile there were stocks that were doubling tripling quadrupling up a thousand percent ten thousand percent in this time frame that much guys you could have became a millionaire or someone that’s got you know hundreds of thousands of dollars in the bank if you were focused more on looking into company specific events looking

Into companies researching companies rather than focus on macroeconomic type mumbo jumbo political stuff because all this was all this was and all it is is a bunch of distraction that’s all it is unless there’s really something that’s going down like the whole economy is really going down like unless we’re in that type of situation the markets just going up and

Up and up and we’ll continue to be little mumbo-jumbo trade war nuclear war oh my gosh ebola oh my gosh the fed what’s a fed gonna do they gonna raise rates are they gonna lower rates bah-bah-bah there’s so much crap out there to distract you from what is really important and that’s looking into company’s fundamentals investing in those companies and getting those


Gains over time guys get them think about that guys it was a 7,000 point market and so much stuff so much stuff if we go if we went into all the micro stuff i would need like 14 whiteboards to write all the micro stuff down write all that mumbo jumbo and look where we are in the markets okay look where we are so and it’s gonna continue to be like that like there’s

No to be no time when there’s no volatility there’s gonna be no time when there’s nothing happening as far as some drama out there there’s gonna continue to be drama okay the – i like i’m saying 2019 there will be drama 2020 there’s gonna be drama 2021 all the years into the future there’s gonna be drama along the way what do i try to do i try to focus on looking

Into companies i try to focus on what’s gonna actually make me money not the mumbo-jumbo you know hullabaloo that you know the media is talking about out there and whatever you know i you know and obviously investment banks they love this right they love the volatility i own goldman sachs a big part of goldman sachs business is trading so when you have more

Volatility in the market what do you have more trading so that you can make an extra couple hundred million dollars in profit and if not a couple billion dollars in profit and it’s awesome for an investment banks right but overall does it mean much in the end it really doesn’t it really doesn’t okay look at all the things you could in 2014 and 2014 nvidia was or

Was the 2013/2014 in video was like a sixteen dollar stock right all this craziness happened right nvidia now in 2018 so out of 240 $250 stock okay so i’m just saying that that’s just one stock out of a million that i’ve gone massively over time and you know where could hear you could have been focused on all this or you could have been looking into nvidia stock or

Netflix stock or whatever stock it is you know pretty much across the board you probably would have been upright the majority of them out there so it’s up to you guys what’s your your where your focus wants to be but i’m just telling you the one that actually makes money it’s focusing on companies focusing on all the geopolitical nonsense all the drama that’s not

Gonna ever make you money that’s not ever gonna make you a dime trust me on that so especially over the long term but anyways hope you guys really enjoyed this today just kind of a little history lesson and kind of explaining why the markets going down right now right now the hud thing is the trade war we’re gonna have a trade war oh my gosh and after the trade

War situation is over guess what it’s gonna be something else and there’s gonna be something that’s always gonna be something that causes the markets to go down in the short term and overall they end up going up in the under long term guys so i hope you enjoyed this once again let me know in the comments which your guy’s opinion is on this i would love to hear from

You guys thank you for watching and have a great day make sure you follow me on instagram linked in the description

Transcribed from video
why the stock market is going down… By Financial Education

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