Hey guys, it's sasha sell all of your stocks. Right now is what one of the biggest financial youtubers in the world meet kevin recommended in his video yesterday, uh i've sold 99.15 of my stocks and my entire crypto portfolio of the cash that i have right now. I am five point: five, six percent short the market, and this is a big problem. A really big problem, because meet kevin has 1.8 million subscribers on youtube, with over 325 000 of them.

Having watched that video in the last 24 hours and he added to this argument on twitter by sending his 230 000 followers there, the very concise message saying sell. I am going to explain to you exactly what the problem with this approach is and why. I think people are right to be very angry at meet kevin right up until that video yesterday meet kevin was telling all of his followers to buy the dip religiously. It opens the door to the thought that, well maybe we should be building our stock portfolio in stocks that have maybe started hitting some bottoms in virtually every single video.

Since the tech stocks started to fall in november, kevin has recommended that people go and buy stocks and then did a complete u-turn saying he has changed his mind, miraculously the biggest red flag here is that his recommendation is extremely dangerous. This is going to screw over a lot of people really hard. There are a few things in investing that have worse expected outcomes than selling out of your position when you're already massively down during a downturn. This is exactly how a lot of people lose a lot of money in market crashes buying high when things are good and rosy and then selling low.

In a moment of temporary panic, i went and looked at me kevin's most recent portfolio update from the 8th of november and picked out his biggest positions from that. I am presuming that they remained roughly the same up until today. The biggest position in this portfolio is tesla. It's 44 of his total portfolio at the time and tesla is 19 down.

Since that portfolio update video, a firm is 65 down. End phase is 48 down, sc is 43 down, lemonade is 59 down, matterport is 54 down and redfin is 45 percent down. So the majority of meet kevin's, big positions in his portfolio are down 50 give or take, and this is the same across the board for growth stocks. My own portfolio is also down over the last two months, and some of my stocks are down over fifty percent too, but presumably people following kevin and especially those that value his opinion and trust.

His advice will have very similar positions themselves, so the recommendation from kevin is that those people should sell all of their stocks when they have already lost more than 50 percent of their value, and this is incredibly incredibly bad advice. It is incredibly pathetic that this is the sort of advice that all of these people are being given. Remember that kevin chose to send the tweet and publish this video only after the markets closed, he sold all of his positions when the markets were open, but only let other people know this immediately after now, not that his 20 million portfolio will have any impact whatsoever On the overall market, but he chose to front run his sales and only then tell his followers he's done it and in itself that's not necessarily that bad thing, but literally all the way up to this video. He was strongly advocating the people by literally three days before that video came out meet kevin said this.

This is a signal of the bottom, be careful with margin, but i am bullish on this market. I'm not going anywhere, i'm not fm leaving, and this is not just an inconsistency. This is a giant massive you to all the people who have placed their trust in you, because you tell them to go and do one thing and the day you are there, selling all your positions in the market. All of the people who trust you, who believe you are doing, the exact opposite and buying the stocks that you are selling.

I have been saying for a long time that talking about holding when the market turns, is a lot easier than actually doing it. It sounds like it should be easy, but it really isn't, because when the market turns red - and you can see your stocks tumbling panic sets in this is a very natural reaction and panic is the one thing that is even stronger in the range of human emotions Than greed, greed being the thing that normally drives us to buy and when people panic they make very irrational decisions, especially when they hear other people actively promoting and advocating that same exact, irrational decision. But wait. It gets worse.

So if you're a business owner or you own, your own home, you might consider requesting to expand your lines of credit with banks. Banks are generally quite interested in expanding lending right now. So, while not all banks may be accommodative, i believe you'll find one that will be accommodative. So what i would do is, i would ask for a home equity line of credit against your home or a business line of credit against your business income.

Home equity lines of credit are known as helocs and certain credit unions, not all the big banks will let you pull out up to 80 to 90 of the value against your property. If you find a a credit union that lets you go up to 90, this means if your home is worth 500 000 and you owe 300 000 on it, you could get a credit line while still maintaining your first for a hundred and sixty thousand dollars against Your home, that's amazing, meet kevin, is literally discussing and suggesting that people look into refinancing their home or taking out credit right now, in a time of high volatility, to use the money to speculate on the movements of the market and right after that, bit of advice Meet kevin explains how people can use the cash to buy short-term options, and so there are a few ways that i can set myself up to get into my logs. Obviously i could just buy the shares on a lower dip. That is an easy option.

In addition to just buying the shares on on a dip - and this is probably the direction i'm going to go - i i can sell puts because i think we've got about a 50-day window here where we're going to be trading downwards and sideways. I don't really think that we're going to have massive rallies that are going to last now. Let me be extremely clear here. I stipulate all the time on my channel that i do not give financial advice and i am not your financial advisor, but on this occasion i am going to make an exception and give you a very important tip, because this is getting completely out of hand.

Do not refinance your house to pull money out to invest in short-term stock options. Do not max your credit to speculate on short-term market movements just because an imbecile youtuber is telling you to do so. Does not mean it's a good idea, and it is disgusting that this is the situation that we find ourselves in meet kevin is clearly extremely talented. Don't get me wrong? He has built up his channel to where it is today.

That is no easy feat and he has an incredible work ethic. I am going to give him that, but despite what he thinks of himself, he is not a maverick investing a genius because here's the thing, unlike me, kevin. I don't pretend to know. What's going to happen with the stock market, the outlook is negative sure we have inflation spiraling at seven percent and the fed is facing this impossible decision on when to increase interest rates and how fast to do it.

But the market could fall further and then meet kevin will go in and buy back in and proudly announce himself to be the oracle, the some kind of investing messiah, because he got it right. But the problem is that long-term returns in investing are not driven by taking all of your chips and placing them all on red on the roulette table. You might win once great. That would be really good, but i can tell you now that when you do it long enough, because over time the situation will happen over and over with all of your chips, it doesn't end well.

The stock market is barely in correction territory as we're talking overall, the nasdaq composite is 14 down from its all-time high in november, and the s p 500 is only eight point, three percent down from its peak three weeks ago. Could this get a lot more ugly? Not sure, but a fair amount of the ugly is already priced in otherwise your gray stocks that have had no news whatsoever specific to the stock would not be 50 down before a single interest rate hike has even been announced if you are investing with an expectation To hold for 5, 10 years or longer, why do you really care about what happens in the next few weeks or months? Presumably, you have done your homework on the stocks that you were invested in and you don't think that they will go bankrupt in a market crash scenario and you presumably think they have a strong enough balance sheet and business model to weather the storm and come out Strong on the other end, if you don't think that you probably shouldn't have invested in that company in the first place, that's a whole different conversation. Now, if you are here for the long term, selling into cash and trying to time the market is an incredibly stupid game to play, you might win once maybe twice, but there will be a time when you don't win and the losses you are going to take. When you don't win, are going to far far outweigh the potential benefits of trying to game it and remember that a lot of people have invested only heavily in the last 12 to 24 months.

So if those people have invested and made a gain, despite the recent drop, they will have to pay capital gains tax on that game when they go and sell their stocks, so you're going to have to go and pay at least 20 on the gains that the Tax man wants to take from you, instead of taking that 20 and keeping it invested in the stock market at these incredibly low prices. If you live in the us and you sell your positions within 12 months of making them your capital gains, tax is going to be charged at income tax rates. So that's half of your gains gone to the tax man for absolutely no reason whatsoever because of panic - and here is an even worse scenario. Let's say that you have some losses in your portfolio because you know gray stocks have come down in the last two months.

Imagine that the market then goes and rebounds because there's a million different reasons, some of which we know most of which we don't know why. It might do that and you will have missed the boat. But then you decide you're going to buy back into your positions because well the market is now going up and your view has changed again. Let's say you can buy back in when the stock market has just gone up: 50, not 100, not to the same level.

It was in november, but let's say it goes just 50 back up on those stocks that you're holding and let's say that happens in the next 30 days or in the 30 days from the moment when you sell. In that scenario, you will have completely screwed up. You are completely done. You have lost that 50 percent gain completely because you are out of the market, but not only that the wash sale rule in the us and bed and breakfast rules in the uk, which are the same pretty much not quite the same mean that the tax man Doesn't even let you book those losses as far as the tax man is concerned, you didn't actually lose money, you didn't get a capital gains loss or when you come to sell your positions at some point in the future, you're going to have to pay a giant Big whack of capital gains tax on top of the loss that you've already taken as an extra punishment for being greedy.

There is a massive difference between investing and trading, and don't let some idiot schmuck on youtube. Tell you that otherwise meet kevin is definitely not an investor shorting. The market and buying short-term options is trading, and you should know that, unlike investing the vast vast majority of people who try to trade, lose their money and out of the small minority who don't lose money, the vast majority of that tiny minority only make a tiny Pittance now kevin has a background in real estate. He has changed his channel's focus a lot over the last couple, two three four five years.

That may be a good strategy on youtube. One day: you're a real estate channel then you're, a personal finance channel, then you're a real estate channel again then you're an investing channel. Then you talk about stimulus, checks, five times a day, then you run for governor. Then you become a trader great, really good for growing on youtube, but investing doesn't work like that.

Investing is not about going wherever the wind takes you in fact, that is the quickest way to lose money with investing investing is not just buying stocks during the biggest bull run in history and then looking smug when they've gone up. Investing is also going through. The downturns and continuing to buy the stocks when everyone else is panicking and selling investing is also knowing you only lose money on your positions when you sell and knowing that that statement in itself is far easier said than done. I hope you found this video useful.

If you have, please don't forget to smash the like button for the youtube algorithm. Thank you so much for watching. I really really appreciate it and, as always i'll see you guys later.