The Stock Market Is falling Massively! What is Going On?!
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Well you must be flipping my flapjacks look at that stock market today. Dow Jones Industrial Average down 962 points here today s&p 500 down 4.15% and that’s not the worst of the bunch. Okay. The worst index of the bonds is the NASDAQ. Look at the NASDAQ down 5.61% down 675 points as I’ve taken the screenshot right now.
Absolutely incredible downward move for the stock market here today. Vix Has Gone sky high VIX is up 33.72% here today, which is basically the VIX is volatility and how it measures volatility in the market.
And generally speaking when you see the VIX go sky high like that, that means it’s a bad day for the market or a bad time for the market in general we have market strategists saying things like this the markets are facing a potential Minsky moment collapse we’ll talk about that okay.
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The stock market is flashing a warning sign look at this guy’s the hot stocks This is like the third day in the row right? I think all these stocks are down the hot stocks right? zoom, Tesla, my Tesla, slack Apple Shopify all these stocks have been very very hot with obviously kind of Tesla and zoom being the poster child of this hot market.
We’ve been in in the stocks that just seem to roar higher and every time people think oh, there’s going to finally go down it’s been going up and up and up right? But here we are. This is what three straight days these type of stocks have fallen.
And look at the moves down here today. Test so my slow down 9.6% zoomy down 10% here day, Apple looking Apple down 8% there’s no very often you see Apple stock down near the 8% but it’s down 8% here today, big tech across the board. Down, Down Down. Obviously we just spoke about Apple right?
The FBI is down. Microsoft haven’t looked at how the FBI is down less than everything else. So Microsoft down 6.6% here day amazings on down 5.6% moving Google down 5.75% big tech just getting absolutely destroyed.
You have some guy out there say talking about stock market bubble when he put out this video like 18 hours ago, and it’s a six worst out of his last 10 videos. How is that possible? I mean, man, I guess no one no one got to see that one.
Oh, well. And then lastly, just to fry everybody’s brain on this horrible day for the market. horrible day for so many stocks. We have Royal Caribbean Norwegian Cruise Line and Carnival Cruise Line all up today. Okay, just to fry everybody’s brain a little bit more if everybody wasn’t confused enough about this whole situation.
Absolutely. Unbelievable. Okay, what is going on in the market? Okay, what are people saying? Will this downtrend continue what we’re obviously seeing today and what we’ve seen in some of these hot stocks the past several days right? And what’s my opinion on it? Do I like what’s going on?
Do I not like what’s going on? I’m gonna share my full opinion as well. Okay, so hope you guys enjoy today’s video as always, if you don’t mind smash that thumbs up button that helps other people see the videos and you know yesterday I come out with that video is the stock market a bubble, the stock market crash come in or the anybody ends up watching that.
I’m like, What the heck’s going on, man? That’s a video I feel like should have gotten a lot more views. Let’s just put it that way. Okay, so, thank you. I appreciate all you guys that help out the YouTube channel. Okay.
Asset prices could be on the cusp of a sharp collapse, known as the Minsky moment in May retest the lows last seen in March, according to Ron William, a market strategist and founder of our w advisory markets have experienced a broad bullish period in recent months as we all know.
Okay, as investors bet on further stimulus from governments and central banks and the prospect of a Roni Rona vaccine. A Minsky moment named after economist Hyman Minsky refers to a sudden market collapse following an unsustainable Bull Run.
Which in this case could be fueled by the quote, easy credit environment created as a result of the unprecedented fiscal and monetary stimulus measures. Wow, this is actually a market strategist that kinda is making some sense okay.
Speaking to CNBC Squawk Box Europe on Thursday, Williams cited a number of factors as potentially driving this crash. The first of which was the narrow nature of the recent market gains, which much of the positive price action in the US is driven by tech giants, right? We’ve talked about this.
This is an ongoing story of the tech Street, Wall Street and Main Street all diverging he said if we look at the equal weighted index of the s&p 500 it has barely broken above It’s June peak, and has actually been flattening ever since.
So we can see the thing tastic divergence as I call it, ETF exchange traded funds flows on the s&p 500 is at a new record low. And if we take a look at the VIX, a real time index of market volatility expectations that has also been interestingly a typical spike up as markets go up suggesting potential hedging for downside risk, he said and I’ve even thought about hedging.
Some positions have been I’ve actually thought about buying put options very recently, as recent as a few days ago, I was even thinking about buying some put options on Tesla stock just to hedge my position I end up not doing it but dang I should have because I would already be on those put options.
I would easily be up 100 plus percent right now in a matter of like just the past three days like absolutely crazy, okay? The Minsky moment stated by William could see assets fall by 20 to 30% or more. Okay, now we’re talking some pretty big numbers 20 to 30% or more, he said, causing the current V shaped recovery to lead to a rolling w retest of the march crash lows.
The s&p 500 obviously fell in March to 2200. And recently, it was like what 35 3600 very recently, but even more troubling than that is why are some people starting to do this with their facial hair? Why are some people starting to shave half of it off and keep the other half?
I’ve seen a few people do this now like what is this? This is some type of like new, like quarantine Roni Roni situation going on. Like, I don’t get that that’s really troubling to me. Okay. But anyways, in yesterday’s video on financial education to that no one saw okay.
Basically, I showed a ton of charts out there that showed a lot of different things. Okay. And what were these things that showed that most growth stocks are rip off right now just flat out a rip off? It showed that most big tech stocks are rip offs right now. Okay.
It showed that most large caps or rip offs right now, it did show that there are some opportunities in the stock market actually right now, when it comes to value stocks and dividend stocks. But the problem is, those type of stocks aren’t what a lot of investors have been, you know, let’s say fancy to lately.
Everybody wants those super high growth companies in big tech. That’s where everybody wants to be. And those companies have gotten so overextended and so unbelievably overvalued a lot of those stocks, we don’t know if they’ll ever be able to justify the valuations they have now, okay.
And if they do, it’s gonna take a lot of these companies five years plus, to justify valuations and a lot of those stocks have on them. They’re just listen, pianist, they’re ripoffs. We saw it in the charts yesterday in that video.
And I even had a call out one of my own stocks, which hurts me to do okay, Tesla, my si even had a call that out a couple days ago, okay, two days, 21 hours ago, I put a video out on financial education too. And I said the uptrend is about to end in Tesla stock.
And actually, you know, I didn’t know it was gonna be that actual day, that was literally the top for Tesla stock. And ever since then it’s been down, down and down. And I hate making short term stock price predictions like that.
I really do. I it’s very few and far between that I make short term stock price predictions, but the flat out Tesla stock, the way it was going up was completely unsustainable, where that market cap was going day after day after day was was ridiculous. And as somebody that’s a shareholder of the company, and as you know, speaks on the valuation of Tesla all the time.
You know, I just tell you guys, it was starting to get into a position where it was pricing in well over five years, well over five years of growth, I mean, we’re talking maybe even seven years of growth to try to do justify that valuation was getting insane.
And now let’s talk it’s starting to come down. I mean, since that video came out the stocks already down what 20% roughly somewhere around there, and you know, that’s, that’s healthy, okay, that’s a good thing. It’s not easy to go against the grain like that.
I can tell you guys just flat out okay, when stocks going up and up and up like that, so easy to pile on and say it’s just gonna keep going up, no different than when I put out that video when the stock market will bottom.
I put out that video, and I said the stock market would bottom within the next 30 days. Little did I know like within a few days of that the stock market literally bottom. But that was a really tough thing to say at that time.
And it’s really tough thing to come out publicly and say, I believe the stock market is about to bottom because at that time the stock market was in complete freefall, that I mean, it was just down down down, people thought we were going way lower than where we’re at for me to come out and say you know, publicly 257,000 people that watch that video.
The stock market’s going to bottom soon, you know when it did it is what it is, but it’s hard to go against the grain like that a lot of people are like, you know, they couldn’t believe that that ended up happening is not fun for me to come out against the markets or for me to come out against my own stock like a Tesla stock, but sometimes.
I have to do it regardless if I have $300,000 in stock or not. I gotta call it the way I see it and the flat out honest truth was Tesla stock was completely unsustainable in that ridiculous uptrend couldn’t continue forever. Otherwise, it was just gonna it was gonna cause ridiculous problems. Let’s just put it that way. Okay.
And so when you look at the markets on a day, like today, just getting absolutely trashed. We need this guy so maybe just flat out we need this in the worst way when it comes to those hot stocks all going down.
We need this Okay, we absolutely need this. The stock market is like me, okay. The stock market is like me, let me explain this. Okay. I was sending, you know, messages out. This is a pretty normal night if we can call it a night.
Okay, sending messages to team members at 3:23am at 1:40am. Okay, I’m doing portfolio reviews last night for the group members on loom at 2am. Okay, I’m doing all this stuff super late at night. But eventually, eventually Jeremy has to crash. Okay.
Eventually, Jeremy has to take a breather, and he has to get some sleep. Okay. And for the next seven, eight hours, it’s pure darkness. Okay, it’s pure darkness until I hear a little homeschooling going on. And music class right by my door.
So next thing you know, I have to wake up. It’s like 11am might be noon time. And I okay, okay. Okay. I’m going to sleep for a while. Let me go ahead and wake up. And guess what? The Nasdaq needs some dang sleep. Okay. The Nasdaq has been awake for a long time.
The Nasdaq has been working so dang hard. And this it just needs some sleep guys. Can we just let it sleep a little bit. The Nasdaq has been wide awake for five months straight now. Okay. Five months straight.
It seems like almost every day the NASDAQ is wide awake going up going up going up. I mean, that’s how you’ve gotten the NASDAQ to go from what it bought them at 6600, something like that to what was it yesterday?
It was trading over 12,000 almost a double up in five months? I mean, by any metric. That’s ridiculous, right? I mean, even the NASDAQ which should always outperform what do you what should you get in the NASDAQ per year?
Maybe 10 12%? I mean, almost a double up in five months. Okay. Yeah. Then the NASDAQ probably needs some sleep. And you know what else needed some sleep tests of stock? Okay, Texel stock needs some sleep. I mean, that stock? Yeah, on a split adjusted basis went from $68 to it was trading at almost $500 in a matter of what, five, six months, less than six months.
It went like that. Tesla stock, it needs some sleep. This is healthy. Okay. I mean, that’s, that’s completely unsustainable. This completely unsustainable, it needs some sleep, let the stock sleep for a bit, let it get recharged and re energized.
Okay, that’s not healthy. Okay, let me just put it that way. Zoom stock went from $120 to $470. In a six month span, let’s let zoom stock get some dang sleep. Okay, let’s let it take a little breather. And rest. This is normal.
We need this no different than my Tesla’s need to get charged up once in a while, right? They can’t just drive all the time. Because if you drive it all the time, and you never charge it, guess what happens? The car’s not going to go anymore, okay?
It’s going to stop, it’s going to shut down bada boom, Bada bang, you’re done, you need to get towed. Or you need to have like the I don’t know, a Tesla charger coming like that on a truck, like come charge your car.
And so those vehicles need to be recharged. Sometimes they need to take a break, they need to take a breather. And we need this guys, we need this. I want to tell you what I don’t want to see. Okay, I’ll tell you exactly what we don’t want right now. Okay, the last thing we want is this dip this huge dip in the NASDAQ they have what was it 5% or so to basically have happened.
And then we just start going straight up in a straight line again, next, you know, we’re a NASDAQ 13,000 14,000 15,000 16,000 boom, boom, boom over the next several months. That would be worst case scenario, let me be very clear with that.
It’d be much better if we saw a 1020 even a 30% correction the NASDAQ rather than than NASDAQ just keeps flying up and the valuations keep going sky high like they have been doing that. Let me be very clear, that would create a bubble like we had in 1999 and 2000, in the.com bubble that would create that sort of bubble in the market.
And you don’t ever want that guys that will create, you know, a decade of a blog market. And last thing you want to be who wants to be in a stock market, where for a decade is blah, it doesn’t do much.
And if you look at the NASDAQ was actually well over a decade, it didn’t do anything No one wants to see that sort of situation, right? No one wants to see that. That’s is why we need this guy’s okay.
This is why we need this in the worst way. No one wants to see that. I mean, the good thing is, if you’re an individual stock picker, even in a down market or market that’s not doing much, you can still pick some good stocks that will likely outperform, but for the most part gains will be minimal.
I mean, if the stock market doesn’t do anything or downtrends for a decade, because you went so sky high valuations, I’m just going to tell you guys, it’s going to be a lot harder to get gains than if you’re in a good market overall for a decade. Okay.
We also know that big things we also need decent buying opportunities and growth stocks and big tech stocks in large caps. And I can tell you, we haven’t been very recently we haven’t gotten those type of opportunities.
I mean, the valuations on growth stocks, especially any of the popular ones, they’re ridiculous, they’re preposterous, okay. Big tech, same exact thing. Okay. Big tech, great companies. Apple Microsoft, Amazon, you know, the FB Google McDougal, these are great companies, they’ll continue to grow in the future.
But the fact is the valuations a lot of those companies have gone to are just ridiculous. I mean, they don’t they don’t usually trade like that and they shouldn’t be trading like that. But they are trading like that. And in yesterday’s video on financial education to the stock market bubble video, we went into all this I showed you guys the charts across the board.
It’s just it’s just crazy. Okay, what does scare me? Let me be honest, what’s scaring me really bad right now? is the fact that I mean, this was reported back in late June, right? That there was about $5 trillion parked in money market accounts. Okay.
This scares me. Let me tell you why essentially, okay. Some of these individuals have seen the market go up and up and up and up, right. And some of them I feel like on any dip, they’re going to be a buyer regardless, and they’re going to try to plow money in the market because they’re just desperate.
Okay? They’re just desperate. There’s snow on the ground. They’re like, Oh, my money is being devalued every day. I’ve got to get in the market. And I feel like there’s a lot of individuals out there funds, different things like that, that they will buy any dip on this market anything.
I mean, the market can go down half a percent. They’re like, Oh my gosh, I gotta plow my money in the market right now. Because oh my gosh, the stocks have just been going up like crazy. I can’t miss out on this again and say we’ll buy any dip in that really scares because that desperate trillions of dollars.
Can come pouring in the market and put these valuations up to even more sky high levels like we’d like we looked at man, the valuations of big tech the valuations on growth stocks, the valuations on large caps, Russell 2000 growth stocks.
They’re sky high man and we’re talking four P’s, we’re not talking about looking on the past, we’re talking about forward peas on these companies are ridiculous. And of desperate trillions of dollars come pouring in the markets just gonna go up and up and up and up.
And that’s not healthy guys. Let’s let this babies get some sleep. Okay, his baby needs some sleep, telling you if we if we, if we don’t let this puppy get a little sleep, it’s gonna end really bad and really bad for a long time. Okay, not like a few days, not like a few months.
I’m talking years. Okay, lad, this baby gets some dang sleep. And the number one frustration I get from like, you know, people in my private group that I always hear, it’s like, basically over the past several months, they’ll buy a stock and right away, it goes up 510 15 20% they can’t even get positions built, I feel the same way.
It’s really hard for me to get positions built because as soon as I get a position built, boom, boom, boom, it’s up, it’s up, it’s up. And it’s like usually when you buy into a stock and the way I kind of teach it this is like the healthy way of doing it because usually the market the NASDAQ doesn’t double every five months.
I mean, that’s just very unnatural, but the way to buy stocks is you buy a little chunk, then you buy a little more and you buy a little more and you you build out a position over you know, one month three months six months you sometimes you can fill out a position over a year to span and continue to buy and if it dips you know you’re able to get better opportunities in that stock.
But the fact is, so many people have been trying to build positions and as soon as they start building it it’s up and up up in a way that’s so so ridiculous and that’s so unnatural it causes so much frustration from investors causes you know frustration for me to see you know all.
I just bought the stock and it’s already up 10% 20% it’s like what the heck man and also think about it from people that are on the side then they look at this and I’m like, huh yeah, I don’t think I want to get involved with that market right now because just everything’s just going up like crazy. Okay, so let’s just bury the NASDAQ for a little bit.
Okay, let’s vary the NASDAQ let’s let the NASDAQ rest in peace for a minute okay, and don’t worry just like the undertaker the NASDAQ will wake up out of his grave Okay, it will come popping out Don’t worry about that.
Okay, trust me the NASDAQ always comes popping back but let’s just let us sleep for a while I don’t want to have to be pulled there and be you know shocked and surprised because the NASDAQ comes popping back in Austin is at 13 1415 16,000 that’s the last thing.
I want to do the NASDAQ will come back to life the hot stocks will come back to life but let’s just please let them sleep for a bit let’s let them get their energy back. Okay, all I got to say about that. So anyways, hope you guys enjoyed today’s video as always, if you don’t mind smash that thumbs up helps out the YouTube channel in a massive way.
And let me know if the stocks continue to downtrend let me know what stocks you’re thinking about buying. I’d love to hear from you guys in that comment section. As always, also if you want to know how to create a low risk high reward stock market portfolio from scratch.
I created a video for you it’s down linked in the description along with some other resources. So definitely check out the description if you have a moment helps you out big time. Thank you for watching and have a great day.