Hey guys it's sasha, and now it is official. We are in a stock market crash. The s p 500 was already down 18.7 at the close of trading on friday and this morning on pre-market trading. It is down another 2.3, so we are now down 20.4 percent from the peak at the beginning of january, which takes us over the 20 line, and most people will consider 5 to be a typical market, wobble 10 to be a correction, and once you go over That 20 mark you have a market crash.

We haven't got a name for this one. Yet just like the dot com crash in 2000 or the financial crash in 2008, i'm sure there will be one coming any minute now, if you have a good name idea, please stick it down in the comments below. If you are invested in the stock market, you will be seeing your portfolio smash the pieces so far this year, especially if you're invested in any kind of growth or earlier stage, companies that got sold off way way harder than the market average. So far, and this market crash could get a heck of a lot worse, we are only down by 20.

I know it seems like it's been a long time coming, but back in the financial crash. The s p 500 went down by 58 from peak to bottom and then the dot-com crash. It went down by 51 if this crash decides to go and do something similar, we are not even halfway down if you thought this was bad. You just wait because this time around, we have some seriously nasty catalyst that we did not have in the previous market crashes.

If this russian invasion of ukraine continues and gets worse, we could easily have the biggest energy crisis we have seen with oil and gas prices. Already off the charts in the last few days, a war of wars has erupted between china and the united states about taiwan, and if we were to have any kind of military conflict result from there, that would dwarf the ukraine situation, because china and taiwan just happen To produce pretty much everything that the world consumes in terms of electronics and many other consumer goods, many of the biggest companies in the s p 500 are entirely or very largely reliant on china and taiwan for their production, and then we have the fastest rising inflation. In history, that is already sitting at 8.6 as of last week and the threat that it now is going to go and get out of hand, because the fed and other central banks around the world are still sitting around scratching their ass. Instead of taking any meaningful action - and we have the threat of a huge recession where consumers will stop spending altogether and the global economy will go into a downward spiral, we just had data come out this morning confirming that the uk economy has shrunk by 0.3.

In april, after already shrinking by 0.1 percent in march, the us economy shrank in q1 this year against all expectations, and although people are expecting a bounce back, it may well not come so. There are plenty of reasons for investors to be concerned. The mood out there is sour stocks keep dipping week after week after week, even the almighty hedge against the big bad fiat economy. Bitcoin is down nine percent in the last 24 hours down 20 in the last week and is now trading lower than back in december 2020..

How peculiar that the deflationary asset that is not reliant on central banks, not reliant on governments completely immune from the woes of the rest of the economy, seems to be massively affected and directly impacted by the actions of central banks, the actions of governments and the broader Economy anyway, i actually have a very important point that i want to make. So please listen up, because this is really really crucial. We are now in a market crash, and market crashes do not come around all too often, especially big bad ones. That last excluding the two flash crashes in 1987 and in march 2020.

This is only the fifth major stock market crash in the last 50 years. If you are watching this - and you are in your 20s, 30s or 40s, this is the single biggest investing opportunity. You might have in your life let that sink in, because the vast majority of investors will not take advantage of this opportunity. They will choose to not take advantage of this opportunity.

I know this because exactly the same thing happens every single time and it will happen again because people have emotions and most people, let their emotions affect their decision making when the market is crashing and all the stocks are down 20 on average, some down 70 or Even 80, most investors decide to do one of two things. One sell stocks before it gets worse because what's the point of holding stocks, if they are continuously falling, what if they fall down to 50 percent, even though they're only 20 down, surely it makes perfect sense to go and sell now before it goes all the way Down and then go and buy them back at the very bottom. When everything around you spells doom and gloom, this is a perfectly natural feeling, it seems logical, it seems obvious and there will be plenty of people all over the news, all over social media absolutely everywhere. Telling you to do exactly this, there will be people in the comments section of this very video telling you to do this exact thing.

In fact, you will see a lot of people that will tell you how they perfectly timed and sold back out in december and are now waiting patiently to perfectly time the bottom they haven't bought back in. Yet it is amazing how many of these people magically appear out of absolutely nowhere at times like these and they're, very, very strange that these same people seem to not be around very much sharing this wonderful hindsight back in december, and the second thing that investors do Is they stop investing? It is the classic issue where investors were lining up in their droves to buy their favorite stocks at peak prices just a few months back, but absolutely do not want to go and buy the same exact stocks of the same exact companies with the same exact projections. In some cases, better projections, when the price has fallen by fifty percent, nobody wants to catch a falling knife. You go and buy a stock, and next week it's five percent or ten percent down much better to wait and then buy when it falls all the way down even further.

Unfortunately, the power of hindsight is not as great when you're trying to predict the future and the overwhelming likelihood for every investor trying to perfectly time the market is that you will go ahead and lose a colossal amount of money instead. I know it is very disappointing that we're not all perfect fortune tellers, and i know that the voices of the few who tell the exact opposite ring much louder in your ears. But it's just a fact, and i'm not here to sugarcoat it or sell you a magic pill that will make everything better. You can go and read any foundational economic study that you want.

The outcome is the same: if you go and sell your stocks after you're, already 40 or 50 or 80 down or whatever, and you then go and try to time the bottom on average. The overwhelming likelihood is that you are going to lose money compared to doing nothing at all. I know i know sasha. The boring perma bear is too scared to make board moves.

I am going to be poor for the rest of my life and i suck because i can't perfectly predict every single market movement using tea leaf patterns or tarot cards, and if you are holding cash waiting for the perfect time to enter the market, the mathematical likelihood Is again that you will lose a lot of money compared to just dollar cost averaging each and every month, each and every week as and when you happen to have money to invest in the stock market? In fact, a market crash makes this point way more relevant. You are staring at a stock market where everything is on sale, pretty much the stock that you wanted to buy for a hundred dollars very recently now costs fifty dollars, and you are sitting there wondering what, if i can wait and buy it for just forty dollars. Surely that would be an amazing idea, because then i would be able to write it all the way back up from forty to fifty dollars and hey presto, i've made a huge amount of money and you know what the reason is for why you're sitting there thinking That thought it's greed! When you see stocks going up on price, you want to buy right now, whatever the price is it's kind of irrelevant, because you are greedy, you want to get that growth that you keep seeing every other week. You are seeing everyone else benefits.

So you want to get a piece of the pie as well. You see stocks going down in price and you suddenly do not want to buy them at all because they might fall even more. It is amazing how greed can rapidly shift your perspective and completely change. How we approach some of the most important decisions in life, a stock market crash and the potential of recession, will mean that a lot of companies that were valued in pure hype will die.

Companies that have weak balance sheets with piles of unsustainable debt will also die. Companies that are loss, making with no path to making a profit will die, and everyone invested in those types of companies is going to lose their money. This has happened before this will also happen again, but there will be plenty of other companies that do have robust businesses that actually do make profits or have sustainable, robust, realistic paths to making profits. There are companies that aren't going to suffocate because their debt repayments will skyrocket as interest rates go up.

There are companies that will grow and deliver value even during a recession. Just like it's inevitable that the stock market will crash every now and then it is also extremely likely that it is going to go back up and hit all-time new highs at some point in the future, because people are enterprising. People tend to create value over time. That is how the global economy works.

As an investor, you only have so many times in your life when the stock market lets you invest at a massive discount money. You invest during a downturn will yield a much greater returns than the money you invest at all other times. If you want to get that 9 or 10 return per year that the stock market gets on average, you have to invest during a stock market crash. If you do not invest through a market crash and instead you choose to wait, you will not get your 9 or 10 return, because this is where the money is being made.

In fact, if you only invest when the market is going up and then sell in a panic, when your stocks are 40 down, you will end up losing a ton of money on average over the long period of time not just get a lower return. You will literally be losing your money you'd be much better off just keeping your piles of dollars under your mattress instead and like almost every other finance youtuber out there. I don't happen to know when the bottom is going to be: i'm not an idiot who has perfectly predicted two bottoms already. We might be a year away, it could be sometime in december.

It could be next week at the peak of fear. What i do know is that this is not the moment to sit around sucking my thumb. This is not the moment to watch passively from the sidelines. This is the moment to act because it might take another 10 or 15 years until the next market crash comes around and presents yet another opportunity and the money invested during this one will have 10 or 15 years to work before i might have another opportunity to Go and shop in the sales aisle, so i'm going to be going to the stock market shop every single time i happen to have spare cash and i'm going to keep buying my favorite stock, so the big fat yellow discount stickers on them, while most other investors Sit around waiting for the sale to end so that they can have the opportunity to start buying them again at full price.

You.