Stock Market Crash Coming June 2020?!
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Today we discuss if a stock market crash is coming in June 2020 or not. We know the stock market has just been going up and up and up with so much bad news… but stock finally due to drop?! Let’s Talk.
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Hey guys, today in this video we talk about if a June 2020 stock market crash is coming now that we are on June 1, as of recording this video, do we have a stock market crash coming or not? And let me just first start out by addressing the elephant in the room.
Which is the stock process that this is going to be impossible to get the stock market to crash or collapse or do anything like remotely negative. Okay, what we have seen from the NASDAQ is it just go up and up and up.
Meanwhile, an onslaught of bad data, bad news across the board like you, you could, you couldn’t find like one out of every 100 good things to say about the stock market or economy over the past couple months other than it just keeps going up and up and up.
So I can fully understand some folks out there losing like faith that the stock market going to go down because all we have done is seen it go up and up and up. And it honestly doesn’t make much sense. We’ll get into some of that.
In this video. The s&p 500 is now what 300 points away from an all time high in the s&p 500. This is incredible. NASDAQ like we just looked at was literally pushing up against all time highs. Okay, this is an extraordinary situation.
It’s not like we’re in a down and out stock market that’s reflecting all of the bad news that’s going on out there. No, we’re in the furthest thing from that. Okay. In May, everything was bad, except the only real positive you could find in the month of May was some businesses did open some business started to open their doors across the US and also.
You know, other parts of the world as well. And so that gave us some glimmer of good news. And honestly, that’s about the only good news you could possibly find out there in the stock market just kept going up, and up and up. Okay.
And let me tell you about a stock market trick. Stocks just keep going one way, and it starts making you forget that they can even go the other way. Okay, I’ve seen this happen. You know, I’ve been in the stock market for 12 years, and I’ve seen this happen so many times to investors on the downside or the upside, where essentially.
The market just keeps going up, and up and up and up and up and up and up. And you just start thinking, Oh, this is all the stock market does this was all stocks do, they just go up and up and up? I’m just you know, it’s just awesome.
You know, and that’s what you start to think about. And you start even like, you can’t even like think about the possibility of the stock market falling 10% or 15%, or 20%. Like, it can’t even enter your thought process just because you’re so used to and psychologically you’ve been trained, and you’re so used to just seeing the stock market go up time after time after time.
Don’t matter what negative news comes out, it goes up. And that’s the type market and I’ve seen on the other side, okay, I’ve seen it with a stock market downtrends for months and months on end.
And I’ve watched investors just basically start to think like the stock market only is gonna go down from here, doesn’t matter all I just bought this stock, and it just went down to the 5% about this stock just went down to the temperature and people start thinking like the stock market only goes down and then it starts to reverse.
Okay. And so this is a stock market trick. It happens all the time. So let me just tell you, I fully understand if you believe that, you know, it’s impossible that the stock market is not going to crash or have any type of negative thing.
Okay, what are we looking at? What is the truth? What are we actually looking at? Well, we’re looking at Roni Roni, that continues to get worse. Ronnie Rona hasn’t just gone away. I know it hasn’t been in the media attention with you know, obviously the George Floyd death in the protests and everything like that, like that’s all on the media attention right now.
So it’s kind of went away from Ronnie rownum and it’s went over to George Floyd and so Ronnie Rona. But meanwhile, like Ronnie Brown is still going on like do people like not know there’s like Ronnie Ron is still going on.
There’s 120 3000 something new cases, just the United States here today. And cases are continuing to climb like Ronnie Ron is still a real thing. Okay, this hasn’t like gone away. And it’s like, oh, that no, this is still really going on.
It’s still affecting the economy very negatively. Meanwhile, speaking about the George Floyd protests, like we have some craziness going on. Let’s be let’s be honest, this was probably the craziest.
We’ve seen the United States of America in a long time. And it’s not just in Minnesota. It’s not just in Minnesota. It’s everywhere. I mean, every big city has some dramatic stuff going on from you know, in Minnesota.
You can go to Chicago and New York City, Los Angeles. You know, it’s going everywhere. Honestly, this is this is unbelievable. It’s every major city. I mean, look at these pictures and you know, see the pictures speak 1000 words as they say right, a place that I never ever thought would ever get touched in my life as far as something like this.
Scottsdale fashion Square Mall. Are you kidding me? Okay, are you kidding me? It’s like the nicest mall in Arizona I’ve been there many times and usually when I go to visit Arizona I’d love to go there which by the way could I should have actually been in Arizona this weekend.
It’s kind of weird that I wasn’t but I ended up happening to not go in there. You know there has Scottsdale fashion square this place was looted and vandalized and everything like just completely destroyed and that’s not okay. That’s just nuts.
And by the way, they just opened an apple store a couple of years ago I remember going in and just after it opened I was like, this is a sick as Apple Store I’ve ever been in it was a beautiful and Oh gosh.
Oh youtuber Jay Paul scene among those looting crowds of Scottsdale fashion Square Mall like Jake Paul and like the Paul brothers man. Oh gosh, they just have to you have to try to give us youtubers a bad name like seriously man.
Oh, it’s so frustrating like what what was he doing there man? Like Jake Paul, what were you doing there man like you’re just and now just everybody you know hating on youtubers again. It’s just ridiculous.
But it is what it is downtown Summerlin I was there just a few hours ago and I got to see downtown Summerlin It was like they were closing it was so weird. And then they just found out like they completely barricaded downtown Summerlin up I posted back at 454 was there I didn’t realize they kind of like closed and I was driving around there.
Past the time they closed I guess they closed at like four. And I’m like, Why are all the stores closing? Like This is so weird. Like everywhere is closed. I like I literally don’t get it. And literally it’s because they closed it down.
And you know, who knows what’s going to happen there tonight. But it’s just a mess around the United States. Okay, let’s just put it that way. We haven’t seen something this crazy in quite some time.
And you can’t really compare any of the protests over the past five or six years to this one. I feel like this one’s way bigger, way bigger and way more serious than anything we’ve seen in the in the past.
Okay, let’s just put it that way. Okay. So here are the facts. As of June 1, these are facts. These are not opinions. Okay. American cities are in major unrest, probably, you know, probably the biggest major unrest we’ve had in a considerable amount of time.
Okay. I mean, I don’t know when you have to go back to this much unrest. But it hasn’t been any time in like recent history has put that way. So American cities are major unrest. Roni, Rona is still going strong. Okay.
The numbers are still going up quite dramatically day in and day out. And we’re gonna still have to see as the economy reopens. What happens to those Roni running numbers? Do they? Do they go up to you know, 50k day again? Or 100k? Like, what happens if that happens?
Is it going to come down in summertime and then really ramp back up and fall time in wintertime? This still remains to be seen, okay. We just don’t know. But we do know, the numbers are getting bigger and bigger as the days go on. Corporate profits are awful right now.
We just saw every public company report over the past month or two in their their profits aren’t all pretty much down considerably, considerably from what was expected. I mean, it’s awful. It’s pretty much the worst time for corporate profits.
And long, long time. Let’s put it that way. Okay. Number four corporate balance sheets have been devastated the past three months, debt has risen considerably. Lot of these companies have had to take out junk bonds, cash levels have come down quite considerably for a lot of these companies, because they need the cash, just basically to fund the business through these hard times right now.
I mean, almost every single public company in the world literally almost every single one, their balance sheet has gotten quite worse over the past three months is for every one company that’s had an improved balance sheet in the past three months, there’s 1000 public companies that have had their balance sheets get quite a bit worse over the past three months.
We’ve seen GDP clients that are pretty much the worst ever. And we tell us next quarter numbers come out. It’s going to be bad when it comes to gross domestic product and how bad that declines will be there.
Number six, a lot of folks that are 60 years and older are scared to go out or refuse to go out. Okay, I went to restaurant couple nights in a row that is usually jam packed with like 60 year olds, other restaurants right near like, you know, age restricted communities, like really large age restricted communities.
So naturally, that restaurant, their customer base is usually like people, you know, 55 Plus, and most of folks are 60 years old and older that go in there. Like usually when I go in there, I’m 30 I’m usually always the youngest customer and they’re amazing food at this place.
And it was just completely empty on a Friday night and Saturday and I went back to back nights. That’s how you know the food was good over there. Okay, back to back nights over there. In the place was like a ghost town.
I was like, Oh my gosh, like it wasn’t like this three or four months ago. But just the fact is like a lot of folks that are, you know, around that 60 year old or older, they just don’t want to go out. Remember I said I was going to go to Arizona and end up not going well, before when I was going to go I talked to my parents.
I said, Hey, you guys want to go out to dinner? You know, I could take us all out to dinner. We can go have dinner somewhere. They were like, No, we don’t want to go anywhere. Okay, both my parents are around 60 years old.
Neither one of them wanted to go anywhere. They’re just not interested. And they’re the type of people that love to go out, go have some food somewhere, go have some beers, and have a good time.
And they’re like, no, they refuse to go out right now, until this whole, you know, situation with the Roni Rhona’s figured out that you have going on number seven, people with serious health conditions are scared to go out.
So this is people that aren’t you know, 60 Plus, but you know, just have some serious health conditions. A lot of them are like, not so sure about going out, right. Number eight, some companies are thriving during this time. But remember, for every one public company that is seeing an increase in their revenues, compared to what it should have been.
You got 100 companies that business is much worse. Okay. Let’s be very clear about that. You have very few public companies out there that are doing much better because of everything that’s going on, then are doing worse. Okay.
It’s few and far between and we just need to like make that point because I don’t think that’s getting through enough emphasis. Just head it’s like some people are like, well, there’s a lot of companies benefiting from this. No, there’s not okay. Most companies would be far better, far better if we had not had the ronnie route.
Let’s just put it that way. Okay, number nine on the good news front, the economy has started to reopen in the past three weeks, and that is good. And I’ve seen some stores with some encouraging signs, they’re actually really busy. Okay, and I’m not just talking about Walmart, and Lowe’s and Home Depot, I’m not talking about those places that have been open all the time.
I’m talking about some of the stores that have been closed, I’ve done a lot of driving around. And also in the discord chat, we have folks from all over the world that have been posting pictures of, you know, restaurants they might go to, or just you know, retail stores.
And I’ve seen definitely some encouraging signs from some places, as far as people are actually going there and willing to spend money and things like that. But at the same time now, some of these places are obviously having a closed because now we have the protests and how’s all that gonna work out?
We still don’t know like the you know, this is still is all play out. Okay, number 10. Mortgage forbearance is going away very soon, right? A lot of people have been that mortgage forbearance for the last several months that will be going away, and some even in like, kind of like a rent forbearance situation.
And that’s likely to go away very, very soon. Okay, number 11, China and us tensions are picking up again, we thought, oh, maybe the US and China they’re gonna start getting along. And now tensions are picking up again, in both these countries honestly very much need each other economically.
Without China, a lot of these public companies you invest in their numbers would not be what they are without China. Okay. And at the same token, China in general would just not have nearly as strong of an economy if it wasn’t for the United States.
So both these countries really need each other. And I can promise you any of the most of these big companies that you might be investing in these top 20, top 50 biggest companies out there, a lot of them get considerable considerable amounts of their revenues, and profits from China.
Some of them 10%, some of them 20%, some of them 30% Plus, and so this is something very important to pay attention to it. Also, in terms of these companies growth story, a lot of it has to you know, hinge on China, right?
You think about a big company like Starbucks, right? One of the most bullish thesis is if you’re investing in Starbucks is the expansion around China. What if that was to slow down? Right? You think about one of my stocks Tesla, right, one of the biggest bullish thesis is, is the fact that Tesla could ramp heavy in China over the next 510 years, right.
And if you think about these tensions rising and rising, who knows what’s going to happen, though, that’s just not a good look for the stock market. At the end of the day, it’s just not both countries need each other. It’ll seems like it’s getting worse rather than getting better.
Number 12. We’re about to have the ugliest presidential election coming. Okay, this one’s more opinion than facts. But I will 100% standing with this one, I think we’re about to have the ugliest presidential election that we’ve ever seen.
I think regardless, whether Trump wins, or Trump loses, people are going to lose their minds. Okay, so just get ready, we’re gonna see that there’s gonna be no presidential election in modern times, where you’re going to have seen anything, like what will be the aftermath from this upcoming presidential election, in my personal opinion.
It’s going to be ugly, not just prior to the election, but after, okay, it’s gonna be ugly, because we know the people that love Trump, like, they can’t even imagine him not being in office, right. And a lot of them believe Oh, my gosh, it’s already like the media is against him, and all these sorts of things.
And on the flip side, you have people on the other side that, you know, didn’t want Trump in the first place. And they, you know, they had trouble dealing with the fact that they would have to deal with four years of them if they have to deal with another four years.
Just trust me, it’s gonna be the ugliest presidential election, because he is such a divisive figure on both sides where people either super love him or super hate him. I mean, it’s way more than any president we’ve we’ve had in modern history has put that way. So get ready for a crazy presidential election.
Let’s put that way. Okay. Number 13. The Fed balance sheet is now $7 trillion. And counting is increased from under 4 trillion just a few months ago to now over 7 trillion and it’s continuing to rise and who knows how high can go, can I go to 10 trillion 15 trillion 20 trillion?
Like we don’t know, like, it’s just going up. That’s something we do know, unemployment rates, probably right around 20%. Right now, you know, some of these numbers we’ve seen recently about 14 15%. That’s backwards looking data.
As you know, it really we’re probably over 20% realistically right now, when it comes to unemployment rate. And the fact is, that stock market, I mean, we just went through a crazy amount of data, right?
He will look at that stock market. It’s not reflecting reality, let’s be honest. I mean, there’s no way you can say the stock market is reflecting reality right now, even for looking reality, even if you’re thinking about six months.
12 months out with all the craziness, like how can you see this is a healthy stock market when we’re near all time highs with the massive gauntlet of real bad news that’s going on it’s not healthy. That’s just flat out honest truth.
And I don’t want to hear this excuse. Well, the NASDAQ’s very heavily weighted towards certain companies. Are you kidding me? Okay. Do you think most of these companies that are that are heavily weighted are benefiting way more because of the ronnie router than if they were not? Not really okay.
Microsoft might be benefiting a little bit more than if there wasn’t running running, but it’s a little bit okay. Apple, their business isn’t even close to being as strong as it would be if Roni Rona had never came yet.
Apple stock is trading right around an all time high. How does that make any sense? Okay, there’s no way you can like look at apples numbers, the numbers are just far worse than if Roni road never existed. Okay?
Amazon, Amazon seen a slight uptick in business. There’s no doubt about that. But it’s a slight uptick, okay, their revenue growth this past quarter was pretty much right in line with what a lot of folks expected it was maybe a little stronger, but it wasn’t like Amazon.
Oh my gosh, Amazon just suddenly grew revenues 50% No, it was just a little stronger than what it would have been so they want a company that is benefiting but it’s not like it’s a huge margin compared to how much of the declines these other companies seen the FB Yes, sure.
Their usage is up huge. Can’t remember, you know, FBA, I think is my biggest investment, a second biggest investment. So I’m gonna have to talk down for a second. But the flat out honest truth is despite FB having way more usage, and rates are down massively right now.
And I mean, absolutely massively right now, because tons of businesses have what stopped advertising because think about if you’ve been closed, why are you going to advertise, right? What are you going to advertise if your business out there?
If there’s no point if you’re closed? Right? It just doesn’t make sense to be advertising. Google has seen ad rates fall considerably. Google McDougal has talked about, you know, hiring freezes for most of their departments. This is Google McDougal.
Do you think their business is way stronger because of Ronnie Ronan know, the flat out honest truth is Google’s business is way worse off with Ronnie Rona going around the economy being shut down they would have would have been if everything just stayed copacetic.
And everything was just great and great. Okay, so his whole argument about well, these guys are they’re killing it because they’re running running. No, they’re not. They’re just not okay. Their valuations are getting more and more out of whack.
That’s all that’s going on here. Okay. The stock market is trending as high as valuation. 18 years, 18 years. And I could tell you, since that came out, it’s gotten worse stock market’s gone up a bunch more since this article was actually written, okay.
Valuations are the highest they’ve been in a long, long time in the stock market, okay. And the flat out honest truth is if the stock market keeps going up, it’s just getting more overvalued. And I think that’s something you just have to come to grips with.
Okay? And it doesn’t mean every single stock in the stock market is overvalued. I want to be very clear about that. Because remember, when you’re talking about the stock market, you’re talking about 1000s upon 1000s of stocks.
Okay, I’ll be very clear does not mean every single stock even you can still find a good deal here and there. But I can tell you, there are few and far between and at this market keeps going up. It’s just getting more and more overvalued. Now.
Just because it’s getting more and more overvalued doesn’t mean necessarily, we can have a stock market crash because it could just get to ridiculous levels. I mean, look back at the tech bubble. It was just stupid. Like it was a stupid, right?
You know, we could we could go there. If this market just wants to keep going. There we go hit all time highs, okay, let’s just go super, super overvalued that, okay, what will it take for the stock market to crash in June of 2020.
This is what it will take in order for us to see an actual stock market crash this month in June of 2020. We need stock market reality to finally hit OK. I don’t know if this is gonna happen or not.
But if it finally hits in the stock market finally wakes up out of its I don’t know coma it’s in right now. Where it just doesn’t want to look at anything negative and just wants to look at the one out of 100 positives right now in push us market up to all time highs.
If stock market reality finally hits this, okay, we’ll finally start to get a sell off. And we’ll finally start to get some folks saying I’m going to profit take k where there’s people that have held positions for years, or where there’s people that bought in you know, heavy and in that fall in March.
You know, remember when the stock market got really rough in the month of March, a lot of people went ahead and bought in a lot of investors bought him and great if you bought you know anywhere along the dip.
You probably green on a lot of your shares in substantially green despite most of these companies, what their business has been horrible to compared to what their businesses used to be. Okay. So if the sell off sign that finally starts.
We’ll start to finally see some profit taking if we start to finally see some profit taken, then guess what’s going to happen some stop losses are going to start being hit. So basically what you have in the stock market, many funds do this and many individual investors do this, they will put in a stop loss on their shares.
So those shares get sold don’t matter what if they hit a certain price, let’s say an investor bought shares at you know, for you know, XYZ stock at $7 a share and now it’s going up to $10 a share. They’re like man I’m up huge on this.
I’m gonna put in a stoploss and at $9. So I can guarantee myself $2 per share of profit and that’s what a ton of funds do and a ton of investors out there and they love to do that. I don’t personally do it. But a ton of people do that.
It’s just facts, okay, and so if those shares ever hit $9 don’t matter what those shares are getting sold, okay, those shares are getting sold. And then most investors are funds if for some reason it jumps below that without being able to get sold at that price.
They’ll just go in and manually sell it because they’re like I didn’t hit nine, it went straight to add Five, I need to just get out of this and they’ll just straight up sell. So stop loss to start getting hit, what’s going to end up happening is it’s going to cause more selling in more stop losses to get hit.
And this is how you can get the stock market to go down so fast when the market actually gets into a downtrending situation, right? We obviously saw this in March, right? I mean, the more the march fall was the fastest we’ve ever seen in the history of the stock market.
Think about that, with you know, the Fed and the economic system we have in place and all that and we still saw in 22 trading days, the stock market fell 35%, the most in history, the fastest in history, okay?
Something to take into account, that’s absolutely extraordinary. Okay. And more this, this will end up happening, if we go into a situation people start taking profit stop loss to start getting hit, it’s just going to breed more and more stop losses, and selling and selling.
And what you have is, you know, selling just compounds more selling, okay, you have FOMO on the upside, right? Where you know, stocks keep going up and people start getting, you know, getting that fear of missing out, oh, gosh, you just got to buy the stock.
Who cares to kind of buy just gotta buy, you know, that happens on the upside, the downside, it’s all about those stop losses getting hit and and more and more selling breeds more more selling, then you have silent money start to get scared.
Because basically, some sideline money will start coming in in the fall. But a lot of sideline money if they see the market continue to go down 2% 3% 4%, week after week after week, a lot of folks will say, Ah, I got my 100 bucks over here, do I want to print the market yet? Maybe not yet. Maybe I gotta wait for you know, things to calm down or something like that.
And that happens with a lot of sideline money. And so you know, right now, a lot of sideline money has gotten FOMO over the last couple of weeks, because they just in the market continue to go up and up and up.
And then they got you know, you have the thing on top of that, which was the economy is going to be reopening. And that’s so much excitement. And so you’ve had a lot of silent money, say, heck, I’m just going to bind this market.
And we’ve seen it, look at the numbers and stock market, it’s just gone pretty much up and up and up. A lot of folks saying I just kind of get him in, I just gotta get in, get, you know, here, take my money stocks, I just, I just got to get in this K.
So silo money will start to get scared. And then you’ll have a real big flush, finally, okay, you’ll have a real big flush. And we’ll end up having an overshoot to the downside. This is usually what happens in the stock market.
To the upside right now we’ve had a way big overshoot to the upside, my personal opinion is based upon the facts like this upside, you know, we’re we way overshot to the upside, there was no problem with the stock market starting to bounce back a little bit.
Maybe the Dow goes from 18k to 20k. Maybe the NASDAQ goes from where to bottom at 6600 to 7000 or 7500. That would have been normal. But to go to pretty much almost all time highs with a NASDAQ’s pushing up against s&p 500 that doesn’t just we’ve way overshot to the upside, we’ve gotten way too excited, way too much hope out there of what’s really going on.
And so if we get this, we’re gonna get a real big flush, and we’ll get an overshoot to the downside. Now those overshoots to the downside, that’s when the major money can be made. Okay, when you get that type of situation, which you know, who knows if we’ll get it because we don’t know, stock market might not reflect reality.
Their stock market might continue to go up and everything continue to be bad and just doesn’t make any sense in stock markets had periods where does that it just doesn’t reflect any reality right? stock market had a time when it was pushing up, you know, the NASDAQ to what 5000 and then it took, well, how long did it take 15 years or something for the NASDAQ to hit 5000.
Again, you know, they like the stock market can act really ridiculous sometimes, you know, but eventually reality does have to hit and if it hits, we’ll probably end up overshooting to the downside and that’s where a lot of money will end up being made.
But don’t don’t let that discourage you from looking into stocks because there are some deals still out there. It’s few and far between I can promise you as few and far between. I think this is one of the worst times in my personal opinion to you know, in June just be putting money in index funds with the stock market getting close to all time highs when reality is just awful right now.
You know, I think it’s I think, you know, index funds in my personal opinion very dangerous at the moment. Most of the time index funds can make a lot of sense, especially if you don’t want to pick individual stocks.
But I think in an environment like this where NASDAQ is pushing up against all time highs I think in an environment like this you’ve got to really be an individual stock picking you got to really be trying to spot the deals out there rather than just like you know.
I’m just gonna stick my money in index fund that’s my personal opinion. Obviously you guys make your own decisions out there but it should be an interesting June will the stock market finally reflect reality? Or will it just keep wandering around like it has been doing just keep going up? We shall see.
Okay, hope you guys enjoyed today’s video. As always, I hope I laid out a lot of you know interesting things for you guys. Make sure to smash thumbs up if you enjoyed this video. As always, thank you for watching. Have a great day.