Hey this is tom. Welcome back! If this is your first time here, don't click, nothing, don't smash, nothing don't buy. Nothing. Wayne got nothing to sell.

So, according to what i'm hearing mid kevin sold out of the stock market selling pretty much 100 of his portfolio and making a lot of people upset, his fans are noticeably irritated about what happened, essentially with him saying that they should buy the dip just a week. Earlier and now him pretty much liquidating a what seems to be a 20 million dollar portfolio kevin's been on this path by the day by the dip by the dip, always by the dip right now. Kevin is changing direction and in this video i want to react to what happened, but if you're here for blood and drama, i'm not going to be saying that he's a douchebag or anything like this. This isn't what i'm going to do in this video.

I actually want to suggest an explanation to what happened and for disclosure i kind of like kevin and i'm not going to bash him in this video. But i want to kind of offer my theory about what happened, and this change of direction came suddenly uh. It actually came thursday night. I am worried that we really just at the lifeboat stage of the titanic, so it's kind of like the titanic hit the iceberg.

Maybe we hit the iceberg in december, it's like oh crap, the fed's actually going to respond to inflation, but we're now just getting on the lifeboats, we're not at the sinking phase yet and we're certainly not at the rescue phase. Yet so kevin is a lot of things. He's really good at grabbing. Attention he's good at creating an audience and honestly he's good on camera, and i really appreciate that with his channel and his content.

The one thing i think he's not, i don't think he's a liar, that's just my belief, and so i'm making a an outsized bet on this, but the most important bottom line out of all of this is, i expect more fear to get priced into this market Between january 25th and march 16th, so i don't think he did anything maliciously or intentionally, not the sort of guy that i've. You know i spoke to kevin before and i think we even did like a podcast little podcast together once so. I wouldn't bet on him lying to people to essentially buy the dip and him planning to sell out of the stock market. So i don't think this was intentional.

This isn't some sort of, at least for my opinion, doesn't seem like a you know, like an evil conspiracy sort of thing. However, there's two possibilities here that i think actually happened, possibility number one he might have gotten. You know paper hands which happens to a lot of people and there's nothing to be ashamed about. Sometimes you just freak out.

You know it's a big portfolio, 20 million dollars, based on what i understand it's about 50 of his net worth in the stock market, or something close to that. So you know he has kids his family. Has you know, responsibilities him freaking out? You know it's! Okay. I don't see anything morally flawed with this at all.

If you get freaked out, that's fine, and maybe he changed his mind within a week. He thought this was the bottom and it wasn't and he got panicked. It happens. A lot of people, you know, share the same kind of process, but they won't be on a youtube channel, basically showing that.

So it's not like he's the only one that that ever happened to. However, i don't think that this is necessarily what happened. I have a different theory and i want to ask him about it. I haven't spoken to him, yet i think he might have gotten margin called.

So i don't know exactly how his portfolio is structured because i've never spoke to dude, but he might have gone deep into margin to leverage his portfolio which something that a lot of people are doing. It's quite common actually and if he went into margin on a lot of these technological stocks, which i like just as much as he likes. The only reason is i'm not in trouble because i'm never going to margin. So if he went into margin and he spread it across the board and then, as you saw in the past week, it crashed so low, he might have gotten margin called and then everything got liquidated which is um.

You know something that can happen. That happened to the best of us, it happened to hedge funds and then big banks, and it's nothing out of the ordinary, and i think, if that's actually what happened here, he might be just saying: well, i'm going to make the best out of it. You know they forced me out of my positions by margin, calling me i'm just going to sit on the sideline, wait for the market to bottom down, and then i'm going to back basically go back in when it bottoms out, which is not necessarily a bad strategy. I spoke about it before because if you believe that the fed is going to have to raise interest rates beyond uh one or one and a half percent this year, or probably not at the bottom, so the moment the fed admits that they have.

You know miscalculated the amount of interest they would need to raise this year. You will see a bigger bottom and i think that's what he's kind of counting on and if that's the case, that's fine as well. If, if that is the case, i think the only i guess, criticism for me would be that he would have to say that this is exactly what happened if he got margin called and now he's basically making the best out of it. I think that needs to be disclosed.

He can't just present it as a you know. I'm selling out just to get back in because the one thing you have to understand is it's very hard for me to believe that he would say he's buying the dip and a week later, just sell out of everything immediately. That would have nothing drastic happened in this week, but then again i don't know i'm just speculating i'd love to chat with him about it and hear more. I'm gon na try to reach out.

In any case it's nothing evil. I don't think he did anything wrong. It's his money, it's his portfolio. He can do whatever the hell he wants.

I heard some people complaining that he shared the information prematurely with his close paid group like a day earlier. That's fine! What's the difference, how would you gain by knowing that the 20 million dollar amount is going to be pulled out of the market and 20 million in this market? It's uh it's pennies compared to the amount of action going on right now. So, even if you knew this a day in advance a week in advance, even if last week he didn't tell you to buy the dip, he told you he's selling out would it have made any difference. I don't think so.

I mean he's a good dude he's. Obviously knows his way around real estate, and i mean he made really smart bets on tesla pretty early on and i don't think it's fair to just classify him as somebody who wrote this bull market up which everybody did actually. But i don't think that was the source of his success. I think he made pretty big money off of tesla.

I think he's an early tesla investor way before the post pandemic. Bull run, so i wouldn't classify him as somebody who got lucky and a lot of people are now screaming that i just think they're coming out of the woodwork to go at him and i honestly don't think he cares. I mean i, i was not a close friend of mine, but every time i spoke to him it doesn't. I don't have the impression that he actually gives a what people think about him.

That's kind of the beauty of it um. The question is, though, the real question: what's gon na happen in the next three months, because march is right around the corner, which is the date he said he wants to buy back in and if the market actually bottoms out in march and shoots back up, and He times it to perfection, he's going to look like a genius and if he doesn't, i mean it's going to be a big problem for him. But let me tell you this: i mean yogi berra once said it's very tough to make predictions, especially about the future. So nobody knows what's going to happen, let's see, but in any case you know no hate for kevin uh.

I honestly wish this works out for him. I just wanted to offer you my explanation about what happened. I think this margin call theory. It makes a lot of sense for me, but i want to ask him about it.

In any case, i don't see him in in you know it's it's a little bit annoying to see your favorite youtuber, just basically selling out of everything and and losing conviction on the entire market um. I understand this with especially with a lot of people having long positions, but i mean it's: it's fair play for him and i i haven't sold out of anything my myself personally, even though i'm in the big loss, i've been very vocal about it. Just because you know i'm in it for the long term and i don't have the mental and physical energy of managing my positions in and out back and then and shorting and lo i i just invest for the long term. So i'm just gon na write it out.

I could probably optimize my portfolio by doing something like kevin does, but i'd rather spend time with a family and and enjoy life and not be preoccupied with managing my portfolio. But you know it's a personal choice to each his own and let me know what you guys think about kevin would love to hear your opinion comment below you know. Let me know:.