The Stock Market Just Did a 1987! DO THIS ASAP!
Application form to apply & try and get in my Private Stock Group/Financial Fortress
Today we talk about how the stock market just had its best quarterly performance since 1987! Stocks have done amazing the past 3 months… but the state of the stock market is much closer to overvalued than undervalued! There are a few deals out there in the stock market but you have to know where to look.
There are also some stocks that you might want to consider taking your big profits in… LMK in the comments some stocks to buy now or stocks to watch during this massive recession in the economy with job losses everywhere and corporate profits bad.
Want to join our free STOCKHUB discord chat? Here is the link
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!
*My Instagram is : FinancialEducationJeremy
This is a Jeremy Lefebvre Production
Created by Jeremy Lefebvre
What is a stock market just did something it hasn’t done since 1987. Before I was born guys, this is absolutely extraordinary today in this video here, I’m going to tell you exactly what is going on what just happened the stock market that hasn’t happened since 87. Okay, we’re going to talk about what is the current state of the stock market.
I’m going to take you through a ton of very insightful graphs and charts to show you exactly where we’re at with the stock market over overvalued in the stock market. Are we undervalued or fairly valued? I’m gonna show you a lot of data that I haven’t really even really covered in videos in the past in this video, so I hope you enjoy that.
And then we’re gonna talk about what should you be doing with your money now, should you be buying certain stocks out there? Should you be selling certain stocks? Should you just be holding I’ll give you my perspective on that in this video as well.
So this is going to be a video packed with values. Hope you guys enjoyed as always 1987 we’re talking about 1987 here today. Okay, so let’s try to hit 1987 thumbs up in the first three hours of this video. That’s a number we’ve never hit before.
Let’s go for it. Okay, so hope you guys enjoy this is getting into the Dow rallies more than 200 points to close out. It’s the best quarter since 1987. Best quarter since 1987. That’s extraordinary. Okay, the 30 stock dow ended the second quarter with a 17.8% gain.
That’s the average his biggest quarterly rally since the first quarter of 1987 when it pops 21.6% now that last sentence is very key. We’re going to come back to this Okay, remember first quarter 87 pop 21.6% remember those numbers? Okay, we’re gonna come back to that the s&p 500 had his biggest one quarter surge since the fourth quarter of 1998.
Sorry, nearly 20%. Meanwhile, the NASDAQ composite jumped 30.6% for the quarter combat in that 30% gain in a quarter. Its best quarterly performance since all I don’t like to I don’t like whenever the NASDAQ is put with this year, which is 1999 I never want to hear anything in relation to NASDAQ 1999. That just scares me. Okay, that’s just flat out. scares me.
Look at the charts. Okay, look at this. I mean it literally just throughout the quarter, just Up, up up in a way for the NASDAQ s&p 500 in Dow Jones Industrial Average. Absolutely amazing. just crazy. just crazy. When you think about how much bad news really came out during the quarter.
Let’s just be honest, there was a lot more bad news in this most recent quarter than there was good news, okay, the bad news out there significantly outweighed the good news. But yet the markets went up. You know, a lot of people are blaming on different things.
We’re not going to get into that in this video. Some are saying it’s the Fed summer saying, Well, people are getting too optimistic about the stock market. Some people are saying, well, they’re not getting any returns on savings accounts where people are just moving that money in the stock market, many different theories out there.
But the fact is, we have a lot more bad news and good news and the market had literally the best quarter since 87. Extraordinary. Okay, so now let’s talk about what is the current state of the stock market? And what do you do now with your money? Okay.
Remember, I told you guys, let’s come back to that sentence. Okay. That’s the average his biggest quarterly rally since the first quarter of 1987, when the stock market went up, 21.6%. Okay, so you must be thinking, Okay, in the first quarter of 87, it went up, the market went up.
21% Plus, the yearly return for 87 must have been extraordinary. In the first quarter alone, it popped 21%, right, wrong. Okay, in 1987. Look at this, the percent return was only 5.2% and 87, which means for the remainder of the year, there was actually a really bad year in the stock market.
87 this kind of tells us well, if you just expect like the rest of year to be amazing, the stock market that is not gonna always correspond, like look at this, like a 21% gain in the first quarter. And then the market went negative for the rest of the year and only finished up 5% that’s extraordinary.
What else happened in 1987? nice, neat this year 1987. Like there’s something else famous that happened in the stock market. It’s just there’s something out there. Okay. What was it? Well, if you type into Google the worst day in stock market history, what pops up? Oh, a Monday in 1987, the worst in stock market history.
Look at that, and not just the worst day in stock market history, by far and away the worst day in stock market history also happened later on in 1987. Okay, when on October 19 1987, the stock market went down 22.61% in one day.
Can you imagine that? Imagine waking up one day and you go to check your Robin Hood account or fidelity or TD Ameritrade and the stock market is down 20 2.6% in a day, imagine how many stocks that day were down 30% 40% 50% imagine that imagine you have a million dollars in your account, you wake up and you know your account only says 800k or 700k 600k. Like that.
Like that’s absolutely extraordinary. Okay, now, are you ready for something really creepy? Okay, I’m going to share something with you a real creepy. Okay. Guess what? In 1987 My dad was 30 years old. Okay. He actually turned 30 on that exact day. 30 years old. Guess how old I am right now.
30 years old. Oh my goodness, guys. So if the next worst day ever in the history of the stock market comes this year. Don’t be surprised. Okay. Just some creepy stuff going on out there. Okay, so let’s go ahead and look at the NASDAQ over the past 10 years.
What we’re going to find is the NASDAQ has had an extraordinary past decade. I mean, extraordinary. We’re looking at you know, you go back 910 years ago, the NASDAQ in the 2000 range. And it has gone all the way up to you know, approaching 10,000.
Now, over the past 10 years, it’s been extraordinary. And there’s been several small dips in the NASDAQ throughout the years, but it also included two massive dips, right? The late 2018 dip which was huge. And you know, if you’re buying like I was in late 2018, you got some extraordinary buying opportunities.
And then obviously the most recent one the Roni Rhona massive dip. So we’ve had two massive dips, plenty of smaller dips in the NASDAQ over that, you know, decade essentially where the markets just gone up and up and up specifically looking at the NASDAQ right now at the end of the pie look where the markets at.
It’s just, you know, an extraordinary level. Keep in mind here, it has been driven by the biggest of the big dogs. Let’s be very clear about that. 45% 45% of the NASDAQ weighting is in five stocks literally think about that.
Five stocks control almost half the market when it comes to the NASDAQ. So if those five stocks are doing great, the Nast is doing great if those five stocks doing terrible, the NASDAQ’s likely doing terrible, right.
Apple, Microsoft, Amazon, Facebook, Google, they control 45% of the weighting of the NASDAQ 100. That’s extraordinary. Okay, absolutely extraordinary. This next chart I want to look at shows you the s&p 500 p e ratio, this is very important. This looks at the latest 12 quarters and what was the E PS for those companies versus the stock prices of those stocks.
Okay. And right now we’re looking at s&p 500 p e ratio, that doesn’t look that super high. Okay. We’re not looking at a nine year by the way, we’re just looking at the last 10 years. It doesn’t look crazy. Okay, let’s be honest.
I mean, it looks a little elevated. But it doesn’t look anything that like that crazy when it comes to this looking at s&p 500 p e ratio, where things get a little crazy is when you go ahead and look at the forward p e of the s&p 500.
And although it’s come down a little bit recently, we are still massively higher valued when it comes to forward peas for the s&p 500 than we have been any time in recent history. I mean, any time in recent history look at look at that.
I mean, I drew that line for you guys there just to show you how much higher we are valued right now for p wise, and this is looking at the next 12 months of earnings versus stock prices. I mean, literally, it’s nowhere anywhere in relation to the last you know, 14 years.
Let’s say that we’re even close to being on par with where we’re at right now for PE so when you look at this chart, this is this is the most troubling chart I can look at right now as an investor in the stock market.
This is the most troubling, literally, just because that is that’s really dang high. The valuations are quite high, and sp 500. And across all the markets, the NASDAQ, the Dow 30. Everything across the board. This is why you’ve heard me say it’s hard to find deals several times, right.
I’ve been you know, over the last few months, this is a way it’s been it’s been very hard to find deals out there, you have to look really hard just to find a decent deal. This is not one of those times the stock market where you can buy any stock and you’re going to make money over the next year or two.
It’s just not very now currently, we’re in a market where you’ve got to search hard to find good values in the market very, very hard. Okay. Let’s look at this. This shows you volatility Okay, in the last 10 years, and what we will see in the current state of the stock market, we have had an insanely volatile stock market recently.
As a matter of fact, it’s the most volatile stock market we’ve had in the last 10 years. The closest you’ve had to this is 2011 Okay, and by the way, 2011 we got some extraordinary opportunities. I bought a lot of stocks in 2011 that ended up producing me some unbelievable gains in 2012 2013 and 2014.
I capitalize on that volatility. And I’ve also been able to capitalize in this most recent volatility in buying some stocks over the last few months that are already performing phenomenal I think over the next few years will continue to perform phenomenal.
So volatility in the market is actually the biggest buying opportunities you can ever get in the stock market. If you’re somebody that is focused on long term investing, which if you’re watching this channel, You probably are.
And if you’re focused on building stakes in companies over the next 357 10 years, you’ve got to almost wish for volatility because volatility creates the best buying opportunities you will ever get in the stock market. And those end up producing you some phenomenal gains in future years.
The last time volatility was really like it has been this year, you have to go all the way back to the Great Recession volatility was actually even more insane during that time. But needless to say, volatility has been crazy recently. This is an interesting chart I don’t think I’ve ever I don’t know for sure I haven’t ever shown this in any video ever.
This shows you the NASDAQ to Dow Jones ratio is an interactive chart showing you the ratio of the NASDAQ Composite Index to the Dow Jones Industrial Average a high ratio tends to mark periods of extreme bullishness as high momentum technology stocks attract far more investor funds than more traditional industrial companies, as reflected in the DJ i a okay and look at this.
It’s gone through the roof, the NASDAQ, the Dow Jones just in the past 10 years, we haven’t seen it this high. I mean, it’s just gone up in almost a straight line, especially over the past year or two. And it probably has something to do with the fact that Amazon, Apple, Microsoft, Google and Facebook have just seen more and more interest.
And those companies have grown bigger and bigger and bigger and grown out bigger, more massive companies out of them because this is just absolutely extraordinary. And keep in mind, the majority of those big tech stocks actually aren’t in the Dow Jones Industrial Average, believe it or not, which is quite interesting. Okay.
Now, if we back it up a bit, this does get a bit scary. Okay, if we back this up a bit to look at like the last 25 to 30 years, for instance, NASDAQ to dow, we’re gonna find we’re approaching levels not seen since the tech bubble. Okay, since 1999.
That is a little worrisome. Okay. Now, keep in mind shortly after that, the NASDAQ two dow actually fell to the lowest level it’s ever been basically in its history. Look at that, right around 2001 2002. It was literally the lowest it had ever been.
And keep in mind, when did also fall to the lowest level had been in a long time, during the Great Recession 2008 2009. That number also fell substantially. But as of right now, literally, we’re looking at the highest NASDAQ, the Dow, we’ve seen pretty much ever I mean, outside of literally the tech bubble. So that is quite interesting here. Okay.
Now, I know I talk a lot about the American markets, obviously, the majority of folks that watch my youtube channel are interested in the, you know, American markets, let’s put it that way. The Dow, s&p 500, NASDAQ, and most people, even if you live internationally, and you watch my channel, a lot of you guys still buy us stocks.
Okay, what we’re looking at now is China stock market, we’re looking at the Shanghai Composite Index. And what we’re gonna actually find is a market hasn’t really gone anywhere in terms of the Shanghai Composite Index, since like 2007 is extraordinary.
You think about the the, you know, the 13 years, a lot of growth in China, not a great companies and things like that. And look at that, literally, that the Chinese stock market hasn’t gone anywhere in such a long time.
And this does make me think, Hmm, maybe it might be interesting to potentially buy something that like an index fund, that is essentially invest in the Shanghai Composite Index, I feel like that stock market over the next you know, if you really have a 10 2030 year.
Outlook will probably perform a lot better over the next 10 2030 years, then it’s performed in the past, we know the Chinese historically, like to save money, just literally save money or buy real estate. I think that investor psyche will start to change over the next decade, two decades.
And I think more and more money will come into a lot of those public companies in Shanghai, in China in general. And I think ultimately, that stock market will probably thrive over the next decade or two. So just looking at that makes me think might actually be some opportunity there for an international market.
Okay, so let’s talk about this and then we’ll talk I’ll give you my perspective on what you should be doing with your money right now in relation to the stock market. This is what we call Jeremy’s current line chart. Okay.
And what we have here is we have a you know, basically a scale on one side, the left hand side, you see, that’s like insane undervalued Okay, then we have our midpoint and on the right hand side, we have insane, overvalued market.
And if I was to price the American markets right now, I would put us somewhere kind of in between the midpoint and insane overvalued, okay, maybe a little closer to midpoint than in St. overvalued, but certainly closer to the overvalued side than the undervalued side.
How do I know this? Well, the fact is, it’s really hard to find great deals out there. And markets like this where it’s really really hard to find good deals. That means you’re definitely leaning more toward an overvalued market than an undervalued market.
You can also look at four P’s that gives you some context as well. So in my opinion, that is where we are at right now in the stock market. Okay, now, what Do you do now with your money? Okay, should you be buying the market selling the market holding market? What should you be doing? Okay? So in my perspective, first one is if you hold some B stocks, hold on, okay?
In my opinion, like, like, think about this, okay. And when I talk B stocks, this is what I’m talking about. I’m talking about companies that will grow revenues, despite whatever’s going on in the economy. 10% plus per year, okay, those type of BS companies that they’re just kind of continue to thrive over the next five to 10 years.
Regardless what happens if the economy’s great if the economy is good, the economy’s bad, okay, anything across the board, there are certain companies out there that will grow regardless, and if you hold those type of stocks, you just got to continue to hold them.
Regardless of what type of market we’re in. Regardless of Roni Rhona numbers or anything like that the beast stocks you just hold them and just put them in the filing cabinet and you know, they’re going to be volatile and if any major dips happen to them, what do you do you buy them in those type of stocks you never panic sell those stocks because they’re just too dang good.
Okay, next thing your cash some profits, in my opinion on some of these overvalued Roni run a place in we don’t have to mention names, but there are plenty of those stocks out there that were like the whole like, oh, they’re working from home.
And so those business models have seen their market capitalizations, double, triple, quadruple 5x literally just in the past few months and love those companies already had extremely rich valuations on they just gone to parabolic ranges of valuations.
Now, if you hold some of those stocks, in my opinion, you got to at least consider cashing some profits doesn’t mean you have to sell all your shares. You can always sell half your shares. Let’s say you tripled up your money on one of these stocks. That was a Roni Rona play.
There’s nothing wrong with saying you know what, I’m going to sell half my shares or I’m going to sell two thirds of my shares cachette put that money into some other stocks that maybe haven’t seen their stock price go crazy like some of those plays app or just hold cash for now and be prepared for when you find that next great stock there’s nothing wrong with that guys.
There’s nothing wrong with cashing out when some of these stocks are insanely overvalued. And keep in mind like I said, a lot of those stocks were overvalued going into Roni road they really were they had extremely rich valuations and a lot of them have seen their their mark cap positions 2x 3x 4x 5x just off.
The hype of Roni Rona and how it was going to help those particular business models sometimes just got to catch some profits and say I’m good on those Okay, and the next thing you got to do you got to continue to look for deals out there you got to find the needles in the haystack stocks let’s call them that okay.
Never heard that expression you find a needle in the haystack yet gotta be looking for those there are still opportunities in this market you know, regard I’ve been the stock market for now like 12 years and regardless of what market I’ve ever been in undervalued market fairly value market overvalued market.
There’s always been a few stocks out there to buy in although I’ll definitely say we’re closer to overvalued and undervalued there are actually a few needle in the haystack stocks that you can find out there and actually go ahead and invest some money in and you’re probably going to get some phenomenal gains over the coming years.
I don’t want to make any promises but I actually might be recording a three stocks on pine July edition, okay, that actually might be coming this week. And I haven’t been able to do that in a while because there haven’t been three stocks all at once that I’m interested in buying.
But actually as of today at least is a dividend stock that interests me of value stock that interests me in a growth stock that all interests me right now that I’m actually putting money in so there might potentially potentially keywords potentially be three stocks.
I’m buying July video and that’s the first time in a while but I’ve had a look you know very far into that haystack to find any deals and I think I actually have three stocks in the market right now that I actually like that.
I’m willing to actually continue to buy so I hope you guys enjoyed today’s video as always let me know down there in that comment section what you are doing the market are you buying are you holding? Are you selling any particular names out there you’re making moves with I would love to hear from you guys in the comment section.
As always, also first link in the description I have a new video I put together for you guys how to create a low risk, high reward stock portfolio from scratch. You wanna check out that that’s the first link in the description. Thank you for watching and have a great day.