Warning : The Stock Market is in DISTRACTION MODE
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Well Holy Smokas this really Ain’t No Jokas! What a week it has been for the stock market! Stocks have been soaring high for no reason while others have gone down without reason. What is really happening in the stock market right now?
In this video I will talk about why I believe the stock market is in full DISTRACTION MODE right now! I will show you guys numbers surrounding the stock market and why it is so important to understand these numbers. There is a lot of new investors in the stock market right now and they do not understand what is happening.
I hope you enjoy this video where I go in-depth about the stock market and what is happening right now. Leave me your opinion in the comment section. What are your thoughts on this stock market? Are you worried about the stock market or are you riding the rally train?
Also let me know if there is a stock to buy now or a stock to watch now. Want to join our free STOCKHUB discord chat? Here is the link https://discord.gg/SVWd2qq
This is where you can chat for free with other investors in the stock market about individual stocks or things going on in the market. Enjoy!
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Well folks, welcome into hailing a Vegas what a week. It was weather wise here this week. Hey, my son wakes me up this morning says Dad, it’s hail and now we saw rain. We saw snow we saw hail. Well, anything crazier than the weather in Vegas this week is the stock market.
And let me be very clear, the stock market is in full distraction mode right now. Okay, full distraction mode. You’ve probably never heard of the stock market being in full distraction mode. But I can tell you right now, it is okay.
Everybody, look over here. You see that GameStop stock. Oh my gosh, everybody’s talking about it. You see AMC stock. Oh my gosh, everybody’s talking about it right now. Robin Hood, Wall Street bets. AMC GameStop. Everybody’s talking about these stocks right now.
The whole world’s attention is on this right now. Meanwhile, something’s going on right now that nobody’s really looking at the Dow just fell 620 points here today. The Nasdaq was down 2%. The Dow Jones Industrial Average has now fallen 1100 points in a matter of a few days without anybody even talking about it or noticing.
Everybody’s so caught up in GameStop and AMC and Robin Hood and Wall Street bets that no one even saw the Dow just fell 1100 points. Usually this is stuff that’d be talked about but no one’s even looking at that right now. Okay, meanwhile, we have somebody like Jeremy Grantham Okay, and now it’s not me Okay, um, Jeremy Lefebvre.
Okay, the other Jeremy the younger version of Jeremy. Okay. He’s out there saying we got a crash that’s about to come very, very soon. He’s talking like, like, ASAP like within the next couple months.
Okay. He’s not talking about like down the road. He’s talking within a couple months. He said it’s gonna rival 1929 in the 2000 stock crashes. Okay. I think that was very important to just kind of like hear his viewpoint at a time like right now.
Meanwhile, the stock market’s over here doing tricks, and it’s like, Hey, don’t worry about what’s going on here with the Dow, who cares it was down 1100 GameStop. AMC to see what happened in Robin Hood. Alright guys, in this video here. Today, we’re gonna talk about what is really going on right now.
For real Okay, we’re gonna talk about what to do about it. We’re going to talk about will this trick continue and we’ll talk about where the opportunities are in this market. Okay, so I hope you guys enjoy this video as always, at all. So never forget to smash it is very, very important if you want to join stock hubs absolutely free to do so as a best and biggest free discord chat in the world. I’ll have that linked in the description for you guys down there who want to try to apply from my private stock group. I’ll have that linked in the description as well.
Okay, so we’re even start with a video like this. We have so much to talk about, okay. Why not start with good old Tesla, my Tesla, okay. Look at Tesla stock tells the stock, let’s be very clear. That stock is the face of the stock market. Okay. It’s not the biggest company, but it is the face of the stock market. Okay. And that stock just fell over $100 a share since Monday.
Okay, just this trading week over $100 a share that stock fell. And keep in mind when it comes to Tesla. They actually reported a decent revenue beat they missed on APS, but they reported decent revenue. And you know, their guidance was strong.
And yet that stock just fell $100 Plus, it’s Monday. Okay. Apple stock. Look at Apple stock. It was $144 on Monday, it’s $131. And they reported earnings this week that were the sickest earnings. Let me be very clear. This was the sickest earnings in Tim Cook’s error. Okay, these were unbelievable numbers out of Apple, they had really high expectations, and they blew those numbers out of the water.
Okay. EP s came in at $1 68 versus $1 41 was expected massive beat The beat revenue by over $8 billion. That is you can’t even like wrap your head around that when a company beats their revenue expectations by over $8 billion.
That’s just like in a three month span. Literally that’s just ridiculous. Okay, iPhone revenues up 17% year over year, services revenues up 24% year over year, other products category was up 29% year over year that covers products like air pods and Apple watches and things like that. Okay. Mac revenue up 21% year over year, iPad revenue up 41% year over year, and gross margin came in at almost 40% compared to 38% was expected.
I mean, look at that. It’s beats everywhere you could possibly imagine and huge ones. And once again, that stock fell, the stock fell. That’s That’s ridiculous. Okay. Mr. Softee, Microsoft k is a company that’s usually the second or third biggest stock in the entire stock market. Okay.
Comes in with huge beats as well, okay $2.03 they came in up versus $1 64 was expected revenue came in at 43.0 8 billion versus 40.1 8 billion was expected massive beat on revenue. I mean, just incredible numbers out of Microsoft, you would have thought that stock would have been up huge this week on the back of those earnings and reported, the stock hardly went up, hardly went up. It was to 28. And it went to like 231.
Okay, what about the FB? Okay, Facebook, the giant itself, the advertising behemoth, the blue numbers out of the water as well. Okay, earnings came in at $3.88 versus $3.22. We’re expected as far as APS revenue came in at over 28 billion when 26.44 was expected daily active users beat expectations, monthly active users beat expectations, and average revenue per user beat expectations, all for that stock to go from $200 back on Monday to $258 by the end of the week, on the back of those on real earnings. Okay. And then we get to the sickest earnings beat I’ve seen in the stock market in a long, long time. Okay.
This was beyond ridiculous. Okay, Sky work solutions. They reported EPA sF $3.36 versus $2.08 was expected. Okay, revenue $1.51 billion dollars versus $1.06 billion amazing guidance, the revenue beat was almost 50% for this company. I don’t know if I’ve seen that in modern times for a company that literally is doing over a billion dollars a quarter to beat your expectation by almost 50%. Like, I can’t even wrap my head around that. Okay.
And you would have thought that stock would be up 20 plus percent today, like huge day, right? The stock goes up 5% 5% on the sickest earnings beat I’ve seen in I don’t know maybe in my life 5% this is what is going on in the stock market right now. T
he facts are the stock market is burnt out right now. It is a burnt out stock market we are in the stock market is kind of like a dog you play fetch with Okay, and you throw the ball to the dog and it runs after it runs after it. And if you do it for long enough, eventually that dog starts to kind of not really want to go after that ball. And it’s kind of like, that’s all right now.
I’m good. I’m good. I’ll think I’ll just chill here. But you owner, I’m not gonna go run after that ball. That’s what ends up starting to happen over time. Okay. And that’s the stock market right now. It’s seeing these shocking earnings.
I mean, just huge beats, even after high expectations were out there. And yet, nothing a lot of these stocks went down or did nothing. Isn’t that incredible? Okay, that’s a burnt out stock market. And that’s what we’re in right now. Okay, now everybody’s distracted by everything else that’s going on. Let’s look at some numbers.
Okay. always like to look at Yardeni research for some numbers around four P’s, kind of where we’re trading out for the market in general. Okay. s&p 500. Large caps. Trading very rich right now. And I mean, extremely rich, we’re trading at about 22.5. A normal a normal situation is 12 to 17. Okay, and I know let’s talk about well, interest rates are super low.
So we should be trading higher, blah, blah, blah, dude, interest rates have been low for like the past 15 years, I don’t know where people have been like, it’s not like interest rates just started becoming low or something like that. money has been pumped out there. I mean, like, this is pretty normal, like this environment we’re in.
And even in that environment. 12 to 17 is what you should usually expect for s&p 500. Large caps were 22.5, which just shows you how richly valued the stock market is right now. And this is why even after those unbelievable earnings out of a company like apple, the stock went down this week down because it is simply risen too dang much. Okay. s&p 400 mid caps trading over 20 that usually trades at 14 to 18. range. We’re rich there. Okay.
No doubt about it. s&p 600 small caps trading at 20.9. Usually we’re trading at 14 to 19. We’re rich there as well. Okay. It was just like any of these metrics you look at, were very rich. Look at this cape, s&p 500, large caps. This shows you all the way back to 99. Okay, this is why some folks talk about this time period, as we’re like in a tech bubble type stage. Okay.
Because the fact is the last time you could find four peas looking like this, you had to go back to the tech bubble. This is a stage we’re at right now. Okay? And this is why there’s one big distraction game going on right now. Okay, we’re certainly not in a time period where we’re undervalued, we’re surely not in a time period that we’re at fair value.
The fact is, we’re in very overvalued slash, almost a bubble ish territory right now in the stock market. Okay. Once again, you know, there there are certain stuff To the stock market right now that you know that are there straight up bubbles, okay? And just the market in general is kind of trading in bubble territory. Okay?
This is why I say you guys be extremely selective with your stock picking this year. Okay, you know, back when the market had crashed in March and April and going into summertime and you go to throw money in a lot of different stocks and made money, okay, it was like kind of like, you know, easy pickings, and there’s certain times the stock markets like that it’s not right now, okay, this is a time period where you better be, you better know what you’re doing, you better be extremely selective, okay. And then we hear things about a $2,000 stimulus check tape.
And so then the question comes, and you know, my younger version of Jeremy, though, did that interview, okay, he even brought this up, and he said, You know, it will just inflate the bubble more, okay. And that’s all it will do, it will be one last gasp for the bubble to go up. And then to come down and even more of a vicious fashion.
And I can tell you, if the $2,000 stimulus checks out there, a lot of that money is going to make its way to the stock market, and probably even inflate some of these big corporations earnings a little bit. And, you know, it will just make the whole bubble situation even worse. Okay. And then on top of that, you have a big overhang on the stock market, okay.
And this is something big money’s looking at, okay. Big money is looking at this. Now they’re saying, Hmm, okay, we’re trading extremely rich, and we have this going on? I don’t know. Okay. The danger for business under the Biden administration is corporate taxes. Okay.
Biden has said he’s in favor of increasing corporate taxes to 28% from right now they’re at 21%. Okay, that’s gonna be an overhang on the stock market for a while, because I just showed you the stock market is extremely overvalued right now, as it is okay.
Then you can add on, if corporate taxes have to go up, his corporations have to pay much more of their net income toward basically the government. Okay, now, we’re talking about a situation where the stock market’s even more overvalued in an even, uglier situation.
Okay. And if you’re asking, Is this a possibility, like a realistic possibility that, you know, this could go through in corporate taxes could go to 28%? It is okay. Democrats control the senate right now. Okay, Democrats control the house, and they control the White House.
Okay. So as far as this whole, you know, tax situation is going to be an overhang and is very, very possible this could go through, and then all sudden, in a year from now, corporations have to pay 28% versus 21%. Before then, then obviously, that’s a bad overhang, the market got a big jump in 16 to 17. Basically on the backup, you know, the possibility that corporate taxes were going to go from 35% down to 21%.
Now we have the opposite effect working okay. And so distraction mode, which is what we’re in right now, keep in mind, like this can go on for a little while, and no one will notice, okay? Like it doesn’t mean this is gonna end tomorrow. Or you know, even next week like this can happen for quite a while without no one noticing. Okay.
And this earnings season, it just happened this is exactly why you don’t play earnings. I saw a lot of people and I got a lot of comments about people playing call options going into this earnings season. And you know, investing super heavy into some socks. They’re like, Oh, this company’s gonna be this man guys.
I’ve tried to play that game before cave there’s a no hidden game because look what we just looked at K countless companies that report it unbelievable beats across the board. You know, so many companies triple beating were the beating on revenue they’re beating at UPS and they’re beating on guidance in their stocks go down Okay, that’s why you don’t play those earnings because it sometimes man even when everything’s going great, the stocks still go down.
And that’s what happened here. Okay, now greed is at the highest I’ve seen in my 13 years or so have been in the market. No doubt about it. No doubt about it. The ignorance level and the arrogance level right now is at an all time high at the moment. People are so dang confident that this stocks gonna pump to the sky and blah blah, like, man, now I’m talking these people don’t even have any experience doing this. Okay.
I mean, greed, ignorance, arrogance, the whole thing it is by far and away the highest literally right now here today as I record this video for you, that I’ve ever seen it by a mile by a mile. Okay, as simple as that, okay. And you know, this quote, it gets put out there so often that it almost becomes corny because so many people talk about all the time, but I actually feel like you know, there’s certain times in the market where I’ve been like, you know, people throw out that quote, and I’m like, and whatever.
Okay, right now, I actually think this quote should be taken seriously. Okay. The whole be fearful when others are greedy, be greedy when others are fearful. I actually feel that right now. Okay, because I am watching greed at parabolic ranges right now.
And I feel like that quote is so dang true. And speaking about Warren Buffett Let’s talk about Warren Buffett for a moment. Okay. Warren Buffett. Where’s he been? Where’s he been? Where’s he been? Okay. Now, people that are newer to the stock market, you probably in your first year to investing, you’re probably like, what’s the big deal with Warren Buffett?
He maybe has done interviews for a while. Warren Buffett always does interviews, okay. I mean, it’s rare that you’ll go a few months without hearing from Buffett and he’ll go on one of these publications do a big interview, okay? He’d been absent.
And it’s not like, well, he can’t get in person because there’s Ronnie Ronnie does do zoom meetings, all those sorts of things like Buffett’s like one of the richest people in the world, you could easily have people set that all up for him and do one of those K. Buffett’s been real quiet. We haven’t seen anything out of him for the longest time. anything substantial around where the markets trading at valuations. You know why?
Because I don’t think Warren Buffett really wants to tell people what it is. I don’t think Warren Buffett really wants to get out there right now and have to be in a position where he has to talk down the market. I really don’t, I don’t think he wants to be that guy.
Warren Buffett loves to, you know, come out there and give us faith when the markets being beaten down. You know, Warren Buffett was phenomenal in 2008 2009 2010. As far as like, you know, having confidence in America, having confidence in the stock market over the long term, getting people focus, giving people hope, and those sorts of things.
And he’s the man when it comes to that. But I don’t think Warren Buffett really wants to come out there and say, dude, we got bubbles all over the stock market right now. And it’s rampant and valuations are overvalued on countless stocks. And we’re in a messy situation. I don’t think Warren Buffett really wants to do that.
And I think that’s why Warren Buffett is truly, really quiet right now. Because believe me, everybody wants to do work. I wouldn’t be surprised if CNBC doesn’t ask him every day for an interview, okay, in all these different publications, and he’s just, he’s just really harsh right now. It’s incredible. I’ve never seen it like that. Okay. That speaks volumes.
But who is talking right now? Who is talking? Well, he’s some of the people I saw talking within the past 24 hours about stocks. Okay. These are the people. We’ve seen Jake Paul. I watched him talk about some kryptos. I watched him on Instagram. He’s got a picture of him and the Robin Hood CEO Kay Logan. Paul, you know, they were talking about GameStop stock keum aletha.
She was talking about the barstool guy. He’s talking about stocks. I see makeup, youtubers talking about stocks, tick talkers, talking about stocks. And the people that do means are all talking about stocks right now. That’s who talking. That’s who’s talking right now.
That’s the market we’re in. Right now. It’s happening. This is reality. today. It’s not Warren Buffett talking. These people are talking. This is who represents the stock market at the moment. And when you look at this, you say to yourself, huh, huh, huh?
Wonder what’s going on here. I wonder what is going on here. Okay. I talk to you guys. I did a video 16 days ago, and I talked to you guys about going all in the stock market in 2021. not okay. I said in that video, like cash is super important. We got so much speculative craziness going on. And it’s just gotten worse since that time that since that video came out 16 days ago, I said, be extremely selective with your stock picks, and make sure you know what the heck you’re doing in this market. If you’ve got lucky, then you just happen to throw some money around.
Okay. And you got into some stocks at the right time after the market had crashed and things like that. Good for you, man. But I can tell you that’s not a sustainable strategy over the long term. You better know what you’re doing everybody talking about, oh, fundamentals don’t matter anymore. That’s all I got to say about that. Okay, you got a rude awakening come for you.
Like I said, ignorance. And arrogance is at an all time high right now. And now’s the time when these sorts of things are at an all time high. This is a type of time you spend studying, researching, understanding how the markets work, how stocks work, how successful stocks work, and I’m not talking about mean stocks. I’m not talking about pump and dumps. Okay, talking about real corporations that you see rise over the long term.
Okay, all the sides, all the sideshow stuff, that happens a million times that have been for years in the tech bubble. That was just like something that went on for a long time. Okay, this is nothing new. What’s going on right now? Nothing new. Absolutely nothing new. The way it’s done is different because it’s going through different mediums.
This stuff’s been going on since like the 1920s man, like pump and dump schemes, all these sorts of things like these been going on since the 20s. Now I’m talking 1920s, not 2020s. Okay. be extremely selective. Know what you’re doing in the market. Now’s the time to focus on that. Now’s not the time to focus on what is the next pump and dump play. Okay, I can promise you that everybody else is focused on that area.
Nobody else has got their distraction over there for you. If you really want to be a player in this long term, keep your head on straight and understand what to actually look for in great stocks over time, how to run portfolios, those sorts of things. Okay? Don’t be in distraction mode, it’s entertaining. And hopefully it takes the time of your Netflix time. Are you playing video games time, okay. And that’s about it.
Outside of that, that’s about it. Okay, and just like you never want to forget to be in distraction mode, you never want to forget to smash the thumbs up. Hope you guys enjoy this video. As always, if you’re looking to try to apply for my private stock group,
I’ll have that linked in the description down there that goes into all the strategies I use when I’m investing in stocks, exactly how I run portfolios, new stocks, I’m looking into all those sorts of things. So if you want to try to apply for that, that will be linked in the description as well. Thank you for watching and have a great day.