The Stock Market Is Doing This! Do This Now!
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Today we chat about the stock market and what I think people should be doing in the stock market right now from my perspective. The stock market has been going up like crazy, but I want investors to keep things in context and not let this stock market get the best of them.
Keep some gas around, be wary of big tech and be wary of the super-popular growth stocks that everyone knows about already. LMK if you see any good stocks to buy out there or at least stocks to watch!
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Well, well Well, why don’t we have a little look at the stock market here today? Oh, NASDAQ right around an all time high s&p 500 right around an all time high. Dow Jones Industrial Average approaching an all time high, beautiful green market.
Meanwhile, we have so much that is about to go down. And so much that is happening right now. It’s almost on a scale, like I maybe haven’t seen in my 12 years being in the stock market. We got a presidential election that is about to take off, right? Yeah, this is gonna it’s gonna be crazy one.
Okay, we have stimulus, we don’t know what’s going to happen with stimulus there’s talk about the could be round to talk about there might not be round two, we’re gonna have to see that’s kind of important, right? We have an unemployment rate that is in the double digits.
Yes, it has come down, but it is in the double digits still. And we’ll have to see how does all this get worked through as the economy continues to open back hopefully more and more over the course of the next several months, if not the next year or so. Right?
unemployment went from $600 to now it’s about $400. Now at the time about $300. And like unemployment situation is quite messy along with the mortgage forbearance and they’re in forbearance and all those different things like how is all this going to work out over the next 369 months?
It’s going to be very interesting, right? We have the Federal Reserve that has actually backed off a little bit in terms of their adding to the balance sheet for the Federal Reserve. This is quite interesting. Right. So So how is this gonna work out?
Are they going to start increasing again? Are they going to continue to kind of decrease? What’s going to happen there? Okay, we have Roni Rona, still going on. The good news is and the US and these numbers are coming down.
They’re not as bad as they were a month ago, a month and a half ago. That’s very good news for us. But they’re still really high. Okay, about 25,000 news yesterday, you know, it’s that’s still a very, you know, very large number.
Let’s be honest, especially for a time period, when it’s summertime, when supposedly wasn’t supposed to be that bad in summer and the fall in the winter, it was a spike back up, we’ll see what happens with that. Obviously, that’s a big situation, right?
worldwide, the numbers are still continuing to climb. I mean, they’re almost at record highs, in terms of worldwide numbers very recently, the numbers are really high on a worldwide basis. And those are just some of the bigger things we have going on out there.
Meanwhile, the stock markets hope they’re sipping tea saying that’s none of my business. That’s not my business. I’m not paying attention to that whenever I’m going up right now. Okay. And this is kind of what we have going on the stock market and with a lot of stocks in general.
Okay, I thought that was the best little like, kind of meme I could find for this type of situation. Okay. So question is, what do you do in a market like we are in right now with, you know, you know, possibly more uncertainty than we’ve seen, at least in recent times?
Probably, since the great financial crisis is the most uncertainty, what do you do in a market like this? So that’s what I want to answer for you guys here. Today, I want to go in depth about this.
I mean, give you guys several pieces of information. So you can kind of make judgments out there and kind of tell you what I’m doing and what I’m paying attention to the type of stocks I’m looking at in the market where I’m seeing opportunities, and where I’m seeing rip offs in the market, which there are definitely, you know, some some not so good deals out there in the market right now.
So hope you guys enjoyed today’s video. As always, if you don’t mind smashing that thumbs up button that helps out the YouTube channel in a massive way. And I appreciate the thumbs up gang, I definitely appreciate you guys, you help out the channel tremendously.
And also, I’m super pumped because we just finally, after all these years, we finally have an About section for the team and kind of give you a little more information on the team that helps support me. And so we got that set up.
That’s a second link in the description down there. If you want to check out that we still got a lot more team members to add on to that page over time. Okay, so let’s get rolling with this. Let’s be honest, guys, this market is agree as an mF, okay, that’s how you know I don’t want to get demonetised this market is very greedy, very greedy market.
A matter of fact, I will go out there and I will say this is the most greedy stock market. I have been in since I’ve been in the stock market the last 12 years. This is the most greedy Okay, no question about it at all. Let me just show you some huge examples of the levels of greed that are going on in the stock market right now. Okay, let’s pull up Apple stock.
Apple stock here today up another 5% today, another 5% Apple stock, almost $500 a share here today hit absolutely insane. And this is basically on the fact that they’re going to split the stock. Okay, let’s be honest.
And it’s just ridiculous that this stock continues to roar higher and higher and higher tepees in price to sales ratios and every ratio pretty much out there that the stock hasn’t seen in the longest, longest time the valuations gone insane. Okay, look at this.
Just in the past four or five months, this company has had $1 trillion of market cap okay. $1 trillion. That is beyond ridiculous and a matter of four and five months. What is changed for Apple in the past four or five months?
Almost nothing has Apple launched a game changing product or services that no one knew about, you know, lately? No. Has anything happened for Apple that we didn’t already know. No, maybe numbers are a little stronger than we thought they were going to be. They beat analysts expectation.
That’s great. That’s it. Does that justify a 1 trillion plus dollar valuation move up for apple? No. Okay. This is pure greed, pure greed. In the end, it is just the valuations just gotten insane on the stock on the back of nothing other than the company had a really good earnings report.
Other than that, and I would say with an earnings report like Apple had the stock deserve to go up but did to deserve to add over $1 trillion of valuation. Absolutely not. Okay, that’s just preposterous.
That’s just ridiculous. Okay. This is the greed that is going on in the stock market. Okay. Let’s talk about tests on my so let’s talk about stock I own okay. This is greed on greed on greed going on right now. Okay, this screenshot I had the screenshot here is from October 23 2019.
Okay, back when Tesla was $254 a share, okay. Now, after that test, someone on a massive run over the next several months, okay, and the market cap three acts in about four months span, okay, the three or four months, maybe five months span, if 3x Plus, and I thought that will you know, to $809 a share. I thought that was justify the reason being is the company was growing massively.
I thought Wall Street had disrespected the stock for too long, it was held down for too long. And it made sense for that company to have its valuation increased quite dramatically, which that’s a you know, a lot of people said back then the stock was a bubble.
I felt like that was justified. Okay. Now the difference comes in, in recently the move up from 1000 to 2000. Let’s go to this slide. Okay. I do not feel like this is justified. I feel like this is greed on greed, on greed on greed.
Okay, the company is at a $200 billion of market cap in less than two months on the back of nothing. Okay? I mean, absolutely nothing. Everything has been known that Tesla has out there, there’s been no game changing product or service launch from Tesla, everything is exactly the same as it was before. It’s just pure speculation and pure greed.
Look at the move up since July, okay, from 1000 to now 2000 plus dollars a share in a matter of less than two months. And the green part I have circled there, I thought that was healthy when stocks started to pull back sort of evened out around 14 $100, a share even a little under 1400.
I thought, Okay, this is healthy as a long term investor in this company. I like what is going on there. Okay. And then as soon as a company announces, they’re going to do a stock split, the stock goes from below 13 $100 to above $2,000. On the back of because they’re going to do a stock split.
This is pure greed. This is not fundamentals based. Okay, this isn’t people that are bullish on the company long term that are pushing up the stock, this is massive funds front running this and saying there’s gonna be a lot of retail investors that get involved and buy all the shares because there’s a stock split.
Common and will sell out before they sell out and we’ll make money in though you know, probably lose money, okay. And then because those folks will get shaken out. Let’s talk in general and I hate this stuff.
Kay, as a long term investor in companies, I hate when you know, short term people come in funds, individuals, hedge funds, anything like that, and come play with the stock for a little short term, like it’s a little puppet.
And that’s exactly what is going on with Tesla stock right now. And that’s why I think, you know, if they want to puppet play us, okay, as puppet playing back, raise money, okay, let’s raise money, right now, whether its valuation is absolutely massive and why it’s gone up, you know, crazy, because look at this.
Now, we’re sitting at a stock that has a $382 billion valuation on this, it’s going to take Tesla’s so many years this come from, you know, somebody that’s insanely bullish on the stock and runs numbers on this company all the time, it’s going to take us a ridiculous amount of years to fill into this current valuation of almost $400 billion.
And it’s just a frustrating This is pure greed that’s going on the stock market. Amazon, if Amazon came out next week, and announces they’re going to do a 10 to one stock split, that stocks going to $4,000.
Okay, because simply the funds that hedge funds, the in, you know, investment funds in general, the retail investors that are going to pile in that stock left and right, because oh my gosh, you’re going to do a stock split.
So it’s just going to go up. It’s like the self fulfilling prophecy that Oh, because it’s going to go up I got to buy in, and it’s going to go more and I got to buy in more. And it’s just ridiculous. That stock will go to $4,000 a share in a matter of a few weeks.
If they came out and announced we’re going to do a 10 to one stock split. That is silly. Okay, no, it there’s no other way to put it. That is silly. That is pure greed. That’s it. Okay. We’ll leave it there.
Okay, let’s talk a little bit about valuations for this market we’re in right now and you’re gonna see more great Okay, is that a Yardeni research here today? Okay, we’re gonna look at some peg ratios when I look a lot of forward p e ratios, which is looking at the next several quarters, next four quarters, okay, not backwards looking.
Not you know, all those Ronnie rownum periods when a lot of these businesses were shut down is actually looking at the next four quarters, okay, and we’ll look at some current PS as well. Okay, we start out here we’re looking at the four p for the s&p 500 large cap, okay, and what we’re going to find is The End the four peas for s&p 500 large cap are just off the charts.
They’re just ridiculously high. They’re in greed territory right now. Flat Out, simply put, okay, look at that. There’s no time period in recent history that’s even remotely close to this K. It’s definitely greed on greed on greed right now, let’s look at s&p 400.
Mid caps K, the good news is what this it’s not as greedy, okay, it’s not as frothy, the large caps are actually where the most greed is right now in the market. The mid caps are like, yeah, they have some greed, but it’s not out of control greed, like actually, the large caps have, okay, s&p 600, small caps, greedy as well.
But the good news is not quite as greedy as the large caps, which this is quite interesting. This kind of shows you how much greed is really out there. For large cap companies in terms of people thinking those stocks will just continue to go up and up and up and up. And I got to get in, I got to get in. And as such as people, like I said, these are big funds that are doing this as well.
And then from the other perspective, it’s also from a safety perspective of Oh, I’ll hide out in these big large cap s&p 500 companies in case the market goes down big. So it’s really a two prong approach where one part safety the other parts, Hey, man, these stocks just continue to go up. So I got to get in these.
Okay, let’s look at this one. This is s&p 500, large caps for PE ratios. Okay. And this shows you on a weekly basis. I mean, look at that, guys, this chart goes all the way back to the tech bubble. And you really have to go back to the tech bubble to see numbers like this. It’s scary. Okay. s&p 400 mid caps, okay, on a weekly basis.
This one obviously really high, you have to go all the way back to the tech bubble to see numbers like we’re seeing here. That’s that’s extreme. Okay, now let’s go ahead and look at for PE ratios for the Russell 2000. My goodness, guys, look at the Russell 2000 growth, forward PE on believably off the charts, I mean, look at how high that is that I have circled there.
It’s you. There’s nothing there’s no year you can even compare this to. And once again, this is forward looking. This is forward looking up backwards, looking at the Roni Roni quarters. This is forward looking.
You know, we’re just literally off the charts right now. That is that’s unbelievable. That’s the most shocking chart to me personally, when I see that chart right there. That’s just like, like, Are you kidding me? You gotta be flipping my flapjacks. That’s ridiculous.
Okay, you want to see another ridiculous chart? Look at this one. This is for P e ratios for us small caps k, this looks at the Russell 2000. Look at that. I mean, we’re just, we’re in uncharted territory you look at all those years in the past, and none can even compare to where the market is trading at right now. Okay.
And it’s it’s just thing after thing, we can just keep going through the slides. Look at the peg ratio, okay. Peg ratio for s&p valuation peg ratios. Okay. This is price to earnings growth. Like look at that, you know, it’s come down a little bit recently. That’s good. But we’re still ridiculously high. I mean, absolutely ridiculously high based upon any historical standard.
You can’t even go back to tech bubble days to find it this high. I mean, that’s, that’s extreme, you want to look at something like a trailing P. Obviously, anytime in recent history, we have by far and away the highest trailing p, I think trailing P is much less important than Ford p i just for p much more heavily.
But if any of you guys out there want to see the trailing p Yes, we are the highest trailing p we’ve been at any point in the last decade and it’s by four in a way. Okay, what can we basically make a judgment on the market by going through all those sides? The market is bubbly, okay, flat out the market is really bubbly.
It’s really frothy. It’s really frothy for a lot of companies out there and a lot of specific industries and types of companies keyword is types of companies. Just a bubbly, bubbly whole situation. Okay. I want to give you guys a lot of pieces of advice here.
Okay, number one, okay. Be very careful of growth stocks right now, especially popular growth stocks. I’m talking about the type of growth stocks that you hear, you know, me talk about all the time or other people in general or, or the big financial networks, any of those super popular growth stocks that you hear talked about every single day on CNBC or, or whatever you go on.
Okay, be careful of those ones, because everybody knows about those growth stocks. And it seems like, you know, almost all the funds are already in those stocks. And in terms of retail investors, the average Joe, a lot of them are already in the stocks. Okay.
So I would just say Be very careful of growth stocks, especially the popular growth stocks that are talked about all the time. Okay, that’s my first piece of advice. My second piece of advice is be careful of big tech. Great now, okay.
And this is kind of weird to say, to be safe, you know, be careful, a big tech, but my goodness, guys, all the big funds are already hiding out in these stocks, okay. They’re all hiding out. Every single big fund out there is hiding out in them.
You know, all the index funds are obviously heavily invested in stocks. You know, all the retail investors even for the most part are already in the stocks as well because they’re big tech and they’re looked at as, you know, just no matter what they go up over time.
So there’s just crazy amounts of money that’s been pumped in the stock. We saw Apple, what was it about a trillion dollars plus in valuation added in what a four or five months span? You know, what is Apple done to justify that? Nothing? Okay. They beat an earnings report. Wow. Okay.
Does that justify a trillion plus dollar increase in valuation? Of course not. Everything is known about that business model that was known a year ago. iPhones, okay, services, and all the other products. It’s all known. There’s nothing like that huge Ellison came out.
I was like, Whoa, no, no, that’s just ridiculous case. So be careful. And by the way, the stocks and talking about Apple and Microsoft, Amazon, Google, even stock I own Facebook pay. Like I said, I’m not afraid to give it to stocks I own as well.
You know, like Facebook, TAs all I will say, you know, Facebook, if I’m buying one with something in big tech, I’m buying Facebook over the others. But regardless, all those stocks, all the funds already in the stocks, man, they are okay, especially Apple, okay, they already jumped in these, they’re all hiding out in those particular stocks.
And eventually, money will rotate out of those stocks into other sectors, either because it’s forced money, it has to be rotated, or because just these funds are gonna look at it, and they’re gonna say, dang these valuations, these, even these big tech companies have to grow into this for several years out.
And that’s tough. And by the way, just because I’m saying this, it doesn’t mean the stocks can’t, you know, continue to go up, because maybe these big funds continue to buy in, you know, eventually the money’s gonna run out the more money to buy in with, but you know, hey, you know.
It doesn’t mean they’re, they’ll stop going up today, they could continue to rise, those valuations could continue to rise a four P’s and price to sales ratios could continue to rise. All that means is they’re getting more and more overvalued. And then that’s all that means. Okay?
advice. Number three, have a give you Be on the lookout for beat down non popular value stocks keyword is non popular, okay. I’m not talking about Coca Cola. I’m not talking about Pepsi. I’m not talking about Procter and Gamble. I’m not talking about Johnson and Johnson.
I’m not talking about the popular value stocks, every big fund knows about it, and every investor knows about these companies. Okay, I’m talking about the non popular value stocks out there that are a little kind of more hidden gems that are still.
You know, good sized companies, billion dollar market cap, you know, 2 billion 3 billion $5 billion market cap, but they’re not talked about all the time. And they’re not the type of songs that people instantly think of when they think of a value stock, like they do, you know, Coke and Pepsi and all those other stocks, okay, and McDonald’s, okay.
And I can tell you, me personally, that’s where I’m seeing the biggest opportunities in the market right now, the biggest opportunities I’m seeing in the market right now are not around big tech, okay? They’re not around these super popular growth stocks.
The biggest opportunities I see for an ROI over the next several years are actually these non popular value stocks. There’s a tremendous amount of those actually out there in this market right now.
If you’re looking for some actual good deals, there’s, you know, somebody in the discord chat, send me one last night. And I was like, I love this already. I gotta continue to look into this stock further.
But I’m like, this is like another one of those perfect, you know, way under the radar, non popular value stocks out there that I love. And I will say right now, as of recording this video here date, there’s at least five to 10 underground value stocks that I love right now.
Okay, at least five to 10. So that’s just kind of shows you where I think the value is in the market. It’s what these underground value stocks, okay, once again, not in big tech, not in the super popular growth stocks that everybody knows about. Everybody knows about Tesla. Everybody knows about zoom.
Everybody knows about Shopify doesn’t mean those stocks won’t continue to go up. But I’m just saying everybody already knows about those. Okay, and everybody’s already playing in those. And so I’m thinking about, you know, risk reward. It’s not as attractive in those stocks.
I love holding some of those stocks, and whatnot. But I can tell you, if you’re just thinking about the next several years, it’s actually in those underground value stocks. Okay. That’s something I covered actually, in that video I released yesterday with super in depth video, the gvd 123 strategy.
I talked about growth, investing, value investing, dividend investing, and this is why it’s so important because a market like we’re in right now, the big tech, the growth stocks, they’re so frothy, and everybody is playing those band.
So you got to look for other opportunities and man you can see you can definitely find some value stocks out there right now guys, that’s all I have to say about that. Okay, advice number four I would give to you guys is buy a Tesla Okay, buy a Tesla because think about this take the Tesla can drive you around.
And while it’s driving you around, you can actually research stocks, right? You can you know, have your laptop, your phone, and you could actually be looking into stocks while that okay, I’m just kidding. Okay. Advice number five again, okay. Oh my god, you guys, you might thought I was being serious.
Their advice number five. cash. cash. Cash is extremely important right now, in my personal opinion, okay. Now, always, regardless of the market you’re in, whether you’re in a frothy market and undervalued market, you should always be keeping 10 to 30% of your portfolio in cash. Essentially, you don’t have to actually keep the money in your portfolio.
You keep it in a savings account or something like that, but you always have that 10 to 30% So let’s say you have $100,000 worth of stocks, then in my personal opinion, you should always have 10,000 to $30,000 in that brokerage or in a savings account or something like that, that’s ready to go in case you want to pump some money in the market never be cashless.
And what I find right now with how hot the markets been lately, and some of these growth stocks is people feeling like they have to buy everything in sight. And they have to be 100% invested in this market because stocks just been going up so fast.
And oh my gosh, you buying the stock and then it’s up 10% 20% 30% and I gotta get everything in. Just don’t. I’ve been in that situation before with you guys. Okay, I gotten that definitely a bit in the end of 2014 and 2015.
You guys had been a really hot market for a few years. And it kind of just felt like oh my gosh, man, I just have to be invested into all these stocks possible because the market has been really good. My returns have been insane. And so the less money I have invested in means the worse off I am.
No Okay. Always keep 10 to 30% of cash around. It’s like me if I go for a Lacroix and there’s only like one or two Lacroix left in the fridge. I feel like I got to get that Lacroix right now because oh my gosh, I mean it could just run out somebody could get it before I get in and if I don’t get it, oh my gosh.
Okay, don’t FOMO Okay, don’t FOMO around the Lacroix’s and don’t FOMO around the stocks. Okay. And I can tell you right now on this market, there’s a lot of FOMO going on a lot of fear of missing out specially in big tech and those growth stocks Okay.
A lot of that going on out there right now where people just feel like you got to get in any price it doesn’t matter what price you buy in man, you just got to buy in that’s perfectly fair to say if you’re in a big dip situation in the market with the markets dipped big right?
Or you’re in a situation where stock hasn’t really moved much and you’re trying to wobble around a one or 2% or 4% or you know number something like that. That’s fair to say but when you’re looking at some of the stocks that have climbed 100% if not hundreds of percent over the last several months, that’s a little different.
Okay, so you got to run out there and buy some of the stocks have just you know, have gone up like insane, it just doesn’t make sense. Okay, keep some cash around. Okay, believe me, the market doesn’t go up in a straight line forever.
You will get some dips and some great stocks you love you will get some dips in the market in general and unless there’s some stock out there that you have to buy tomorrow, you know, you can definitely hold off on it. Okay.
But like I said, Man, guys, underground value stocks. That’s where that’s where it’s at right now. Okay, so hope you guys enjoyed this. As always, if you don’t mind smash that thumbs up button that helps out the YouTube channel in a massive, massive way.
And once again, if you want to check out that about team section, I’m so pumped for that. We have a lot more team members to add in there, but I’m super excited for the ones we’ve already added. Thank you for watching and have a great day.