Should You Buy Stocks Right Now or Just Wait? Stock Market April 2020
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The popular question in the stock market right now is should you be buying stocks or should you just wait if you have sideline money. Many folks are getting that stimulus check in right now and thinking. Maybe I should invest in the stock market and buy some stocks. How to outperform the stock market in 2020 and every year free article I wrote
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Well guys here today we’re gonna talk about the most popular question I am getting in relation to the stock market right now in stocks in general, it’s a question of should you be buying stocks right now? Or should you just wait on the sidelines with their money?
Let’s be very clear for a moment. Not everybody is being hurt economically in this whole situation, right? If you work at let’s say, Costco, like, you probably haven’t seen a dip in your pay, if anything, you probably get more hours than ever, you probably getting bonuses pick, you might even see a pay increase rate.
If you work in an online business, you’re probably doing just fine, right? If you work for a big company, and you’re important to that big company, and they can’t cut your salary, they really can’t cut your you’re probably working on line, you’re probably making good money, you’re probably doing just fine, right?
If you’re somebody who put options, and you know, before the market saying big time, you probably made a lot of money and have a lot of money on the sideline right now, if you’re somebody that’s getting a stimulus check, but you honestly don’t really need the stimulus check. Right?
There’s something there’s definitely some people like that, you’re probably like gonna want to invest that money or just keep that money on the sidelines, you might not need to pay bills with that money, right? Just because you’re getting a stimulus check doesn’t mean you necessarily you really need it.
That’s the type of audience I’m speaking to in this video. There’s some of you guys out there that have money on the sideline, and are thinking about possibly buying some stocks. I’m talking to you guys, okay. And if you don’t have any money on the sideline, you don’t have any money to invest right now.
I think you’ll still learn a lot from this video, I think you’ll still enjoy it, make sure you smash the thumbs up And as always, okay. It’s a weird time. It is a weird time economically. It’s a weird time. From a society standpoint is a it’s a weird time in the stock market. Right? And then for this video, we’re talking about the economy side.
And we’re talking about the stock market side and it even dips into society a bit. Okay? And look at the look at the Dow Jones Industrial Average, we had the biggest fastest drop ever 22 days, the Dow goes from what the Dow Jones Industrial Average goes from 29, five to 18 five, that’s just it was ridiculous, right? And here we are in the past one month, actually really like the past three weeks, and the stock market has almost been up in a straight line.
It went from where it bottomed 18 five or 18, three wherever it was to now it’s 23. Three. This is incredible. This is weird economically. Meanwhile, here’s what’s really weird. Okay, not just weird from that those insane, you know, jumps. here’s here’s what’s really weird.
Okay, the roadie Ron is still going up. And this is still going on, right. And cases, for the most part is still getting worse, right? And there’s some hope that you know, things are going to come down, and then we can start opening up businesses in May or June.
And that’s awesome. But the fact is, the Rooney Rule is still going on. Okay. Worldwide economies are still shut down, including the most important economy to the world wide economy, which is United States of America, right? These economies are still shut down worldwide.
You look at it. Here’s a list of countries by GDP. Almost every single one of these countries is shut down. The US shut down right now. China, you know, they’ve kind of brought it back. Okay. Japan shut down Germany shut down India. You know, India is crazy. Sometimes.
We don’t know what’s going on in the UK. UK shut down. France shut down Italy’s You know, that’s a whole other separate situation there. Alright. Brazil. You know, I know the I believe the President in Brazil, he wanted to keep the country open.
They’re shut down. Now. Canada shut down. All the big dogs. All the big dogs are shut down right now. So something we haven’t seen in modern times ever. This is incredible. Okay. Keep in mind, meanwhile, there’s no vaccine for Roni. Roni right now.
There’s no vaccine for it. Right? There’s hope that there couldn’t be maybe a year from now, maybe two years from now, but there’s nothing as of right now. There’s just hope that eventually evacs will come and hopefully that does happen but it’s going to be a while it’s not like it’s happening tomorrow. Right?
That’s something to keep in mind right? Meanwhile, we have unemployment skyrocketing worldwide. We’re seeing unemployment rates jump to levels we’ve pretty much never seen in modern history. The amount of jobless claims are unparalleled unparalleled right and that’s what happens when you force you know most businesses to essentially shut their doors and not do business what’s gonna end up happening unemployment rates are gonna skyrocket like.
You’ve never seen in the history of mankind it’s it’s incredible I can show you you know, countless charts that just show you like the volume of how big things have have gotten how bad things have gotten very in such a short amount of time right?
We’re seeing GDP declines that are the worst ever but not just the worst ever the worst by far ever. What’s going to be reported for this past quarter and this upcoming quarter it’s going to be it’s going to be on a level you know, we’ve never seen just flat out it’s going to be incredibly high numbers.
This is all going on. Okay. Meanwhile, that keep in mind I’m I’m what they call a perma bull. Okay. And I’m speaking a lot of pessimism. Skies. I’m speaking a lot of pessimism, but we this is real stuff. Debt nations are taking on more debt than ever. Okay.
I just wanted to throw that home. thing about me Bernie being kind of like a perma bull out there because you know if you if you come across this video and never watched my channel before Believe me I’m Mr. Positive okay. I usually you know.
I’m optimistic I’m positive, you know, I’m excited I’m that type of person but I can just tell you we got real we got real crap to deal with right now. Okay, I got to call it the way I see it and we got some real stuff going on okay, but like I said detonations are taking on more debt than ever.
Okay. They’re talking about the This was back in March, they were talking about this kid, the bill for saving the world economy is $7 trillion and rising, okay, those back in March, the when the when the all the numbers are counted. At the end of the day, it’s probably going to be you know, 10s of trillions of dollars.
It’s going to be an amount like that makes like the Great Recession. And what happened there just looked like a joke. It was a complete joke. Like, that was nothing. That was nothing. Okay? This is incredible. And meanwhile, here’s where it gets just stupid for me. Okay, here’s where it’s like that’s, that’s, that’s the only term I can use to describe the situation.
With all that ridiculous amount of real uncertainty. And real bad crap, that’s going to take months probably, you know, more likely years to work through the NASDAQ Composite Index is up 11% of past five days, year to date, the NASDAQ is down 8.7%.
Is it some kind of sick joke 8.7% decline for the NASDAQ year to date a year where the markets were already priced, kind of like perfection for a perfect 2020. And we’re getting literally the worst case scenario, like pretty much going into this year, no one could have envisioned how bad this year would be economically, whether you’re talking about GDP unemployment, you know, company earnings and the stock market stocks overall, in terms of what their revenue numbers will be like.
No one could have forecast this in the markets Dhoni point 7% when it comes to NASDAQ, that’s got to be a silly joke. I mean, really, really, there’s there’s been many times in my past 11 or 12 years where I’ve been in the stock market, right.
I got started in the Great Recession, there’s been many times, we’ve been what I call food talk out there, and it’s just like, oh, let’s talk about something. Bla bla bla, no, this isn’t one of those times, this is real, bad stuff that we’re going to have to work through.
It’s going to take a while to do people really think you no longer this is gone. And the more I realize kind of the devastation here. Do people really think like the local restaurant that if they make it through this, which hopefully they do, right?
If that company does make it through that restaurant? Do people think it’s going to be just as busy when they open back up? Do people really think that it’s it’s not going to happen, I can promise you that they’re not going to be just as busy, the business is still going to be down significantly, when they’re allowed to open back up, you know, and the biggest question is, are his business down? 30%
From where it was, you know, back in the wintertime? Is it down? 50%? Is it down? 70%? Is it down? 90%? I think that’s the biggest question. But if anybody thinks business is going to be even remotely close to similar where it was, no, it’s probably gonna take years to get back there.
Yeah, I mean, if people think everybody’s just gonna run back to Disneyland. I mean, disneyland is a magical place. And I know some people love Disneyland. I can promise you that Disneyland is not going to be doing the same numbers. It was before.
If you guys know a lot about me, you know, I live in Las Vegas, right? And the cool kids they would say Las Vegas is so turnt up, right? Okay. Las Vegas, amazing place amazing city, people from all over the world love to come to Vegas to party have a good time, you know, escape from reality, whatever it is, okay, live out fantasies, whatever they want to do they do here.
Okay. It’s Vegas. It’s gonna take Vegas years to get back. Do I have full faith that my city will come back and get back to the numbers we were already doing in the past? If not grow? 100%. But is it happening this year? Or next year? Or maybe even 2022? I don’t think so. I’m gonna be straight up with you guys.
I don’t think so. I don’t think people are gonna run out and book you know, like, like, you know, in all the hotels are gonna be at 80% 90% capacity, you know, overnight. I just don’t think that’s going to happen. Okay. Why won’t everything get back to normal right away?
I think that’s the biggest question a lot of people are asking, right? Well, why? Why want to be back to normal ones. Once these, you know, businesses are once a strip opens back up. Why can’t it be just as busy once the local restaurant? Why can’t it be just as busy?
Okay. There are three core reasons. And this gets into the society perspective. And this gets into obviously a healthcare scenario, and it gets into the economic pocketbooks of Americans k one, some are going to be scared of Roni, right? The Roni is someone who’s gonna be scared of it just flat out right.
You have some that are scared of it just because they don’t want to deal with it. Also, some people can’t deal with it. Right. A lot of the you know, obviously the CDC doesn’t really want anybody over the age of 60 going out right now. That’s a huge percentage of the population.
That’s a huge percentage of people that spend money out there. Things like that, right? So right off the bat, you have a lot of people that just aren’t once the business to open that back up, they’re not going out just because they’re like, I don’t want to get the brownie.
I don’t want to get the Rona, there’s no Vax for it yet. And even once there is a Vax, you know, there still will be some folks, that will still be a little freaked out, right? Number two, some folks are gonna have no money. I mean, just flat out like, like some people, obviously are losing their jobs right now, some people have no incomes right now.
And they’re going to be counting on those stimulus checks. And that’s a large part of the population. You know, a lot of the population even in the United States of America, for the most part, you know, prosperous nation in the world, right?
Even a lot of our population, probably over half of it, they live paycheck to paycheck. And when you also cut off the paycheck, immediately, these folks have to file for unemployment, immediately, these folks have to look for, you know, government to support them, until hopefully a business hires them. And that’s just facts.
So some folks are just not going to have the money to go to Disneyland to go to Vegas, and to go to the local restaurant and go to the local mall and things like that, you got that to deal with. Okay. And number three, somerby going to be scared to spend economically, when the devastation finally kind of hits people.
I think a lot of people are gonna get a little scared economically, and they’re gonna say, Yeah, I don’t know if I want to go that restaurant tonight. Even even if they’re not scared of getting the Roni, right. They’re gonna just look at it, they’re gonna be like, I don’t know, if I want to go spend 150 bucks at that restaurant tonight.
Maybe I won’t go this week. Maybe they’ll go next week. And maybe we’ll spend 75 bucks instead of 150. Like we used to spend, right? I think you have that whole situation? Or do people got to just go don’t want to go to movies right away, and sporting events and things like that.
These are all questions, some are going to be scared to spend economically. That’s just that’s what happens in a recession scenario. Some some folks, you know, say you know what, I’m not I’m not going to spend right now. That is something that happens.
Okay. So with all that being said, with all that we just went through buy stocks now are just saying, nah, let me let me wait a little bit. Okay. And in my personal opinion, somebody that’s a perma bowl, I’m gonna say 95% of stocks, if not more than 95% of stocks.
Don’t buy them. I’m just being honest. Not right now. Not right now. I mean, not in April of 20. Oh, April 13 2020. In my personal opinion, 95% plus of stocks are no go right now. No, go. Okay. Unless, unless there’s some type of specific situation, that you feel like there’s a company that has such huge upside, that you just have to be in that company. Okay.
Let’s put a slide of a couple stocks, right? These are a couple stocks that a lot of people believe in, especially that top one Tesla stock, right? You have some folks out there that believe this is going to be a 2000 3000 $5,000 stock in five, seven years from now, if you feel that way, obviously buying at a 650 is not that bad, right? If you feel that way, and you’re very confident that that company is going to get there.
But that’s a big question. Uber, a lot of folks figure that’s going to be a 50 $60 stock within five years from now. And if you feel that way, 27 $28 isn’t that bad, right? If you’re feel very confident in that situation, it’s just not that bad at the end of the day, right?
If you feel like the F be at 174 is a deal and a half. And that’s going to be a three or $400 stock in a few years from now. 174 is pretty cheap. So if there’s that big of an opportunity with some of the stocks, I can understand buying them. But the facts are, most companies aren’t like this, okay?
This is not one of those shooting that the fish in the barrel type times, right, there’s certain times I call it shooting fish in a barrel, where it’s just it’s so easy to make money in the stock market stocks are down so much. And there’s just countless good deals out there that you can almost put your money in any stock, and you’ll make money, right?
Almost any stock in those. There’s some situations like that. I don’t feel like we’re in that situation, although the markets are down the NASDAQ down 9% or whatever, even actually less than 9% year to date that right? I don’t feel like we’re in one of those times where it’s just like throw money at any stock.
And man, you’re gonna make a lot of money. I really don’t feel like this is shooting fish in a barrel. Most of the stocks in the stock market don’t have incredible upside opportunities. Mostly stocks in the stock market don’t really have the opportunity to expand revenues and net income to 3x over the next few years.
Right. There’s some special situations with some stocks that they do. They have those type of opportunities, you research it, you understand the business. And regardless if there’s a recession, and a slow climb out there certain companies that will grow regardless of what’s going on the economic environment, they’re just that dominant companies.
But most companies, they don’t fit that bill. I’m just being honest with you guys, in a lot of these companies that are actually doing pretty decent right now. The costcos the Kroger’s, the Walmart, some of those names. Keep in mind those stocks have already risen a lot. Okay, a lot of those stocks have already risen a lot.
They’ve a lot of these stocks have already priced in that the business should be very strong this year. And so if you’re trying to if you’re thinking well, these companies are doing really good right now, let me jump in them. There are they’re already kind of priced. Perfection.
A lot of those type of companies aren’t super big growth companies and they already kind of praise, you know, perfection. This is not a shooting the fish in the barrel type scenario, right? It’s got to be you’ve if you’re putting money in stock right now, it’s got to be that Amazon type opportunity, that massive opportunity that you feel like, just It doesn’t matter if you’re if you’re paying a certain price.
It doesn’t matter if that stock goes down short term, just because there’s that huge of an opportunity, right? Amazon stock back in 2011 was 182 bucks a share is, you know, nearly 2200 today, right? In 2011. If you were worried about something which keep in mind, we have way more serious worries right now than they had in 2011.
I could tell you I was in the market in 2011. I wasn’t scared at all. I can tell you right now there’s a lot to be scared of in real scared, okay. But in 2011, if you’re looking at Amazon stock 182 bucks, and you believe this was going to be $1,000 stock in the future to them the dollar stock.
Who cares if you were paying 182 bucks for it? It was a deal and a half in the long run, right? And there’s certain opportunities like that, Amazon 2006, let’s say right before the Great Recession happened, right? You buy the year before the Great Recession happens, which happens in 2007.
Right? You’d like shoot I bought right before everything went south, it was 37 bucks. Amazon stock was 37 bucks before the Great Recession happened is $2,168 today, it doesn’t flippin matter. Okay, it doesn’t matter, you could have bought Amazon at 37 137 1037 It doesn’t matter because the opportunity there with Amazon was so immense, that it just didn’t matter.
I’m gonna be honest with you guys. Okay, look, look at the stock price you made money don’t matter what and there’s certain times there’s certain companies that have those sorts of opportunities. And the only way you’re gonna find those companies is researching, okay, this is a time where you need to say I need to do less buying I need to do more research.
These are you know, this is the type of time when you need to take advantage of research and especially a lot of you guys that are spending a ton of time at home right now. Like Like, you don’t get these types of opportunities ever right this is like a once in 100 year event going on right now.
If you’re at home and you spend a ton of time you need to be researching companies researching stocks, taking advantage of your time off and your your time you get to spend at home and things like that, researching companies This is not you know, this is not one of those opportunities that you can just let pass yourself and be like, Ah, now let me just watch you know, Netflix for the next eight hours.
This is one of those times you need to be on your computer, on your phone, on your tablet, doing whatever researching companies and figuring out where the next Amazon is where the next Tesla’s Okay, where the next Apple is where the next Google is those sorts of opportunities you need to be looking for in researching fully right now.
It will be Mr. Less buying more research that is the market we are in right now. And let’s see how everything plays out. Okay, because I think one I think there’s a high probability that once people figure out things aren’t coming back right away and it’s going to take maybe years to climb out of this and companies earnings are going to be you know, trash for a while.
I think once that start to figure out and analysts start coming down with their s&p 500 earnings numbers for this year next year maybe even 2022 I think at that moment the market is going to probably start dipping again in your actually get some of those opportunities that are like shooting fish in a barrel.
But we’re not there yet. And so just just research right now just be researching companies straight up that’s the best advice I can give to you out there. And unless it’s a massive opportunity, don’t buy it. Just don’t do it right now. Okay, guys.
So anyways, speaking about opportunities guys, we’re gonna have a huge deal April 17, through the 19th on the private stock group, so many guys that have been trying to take advantage of the curriculum in the stock group which is a hundreds of videos to learn from as well as be part of the discord chat, as well as you know, be able to see all the stocks on buying and selling in the public count all those sorts of things.
You want to take advantage that we’re gonna have a huge sale, the pinned comment down there essentially being the link to sign up for the email list. So if you want to get on there and we’ll shoot you the deal as soon as it drops on April 17. So as many of you guys are able to take advantage of that as possible. It’s a semi annual sale once again, the link is pinned down there. Thank you for watching and have a great day.