What's up you guys, it's graham here so today has been a very eventful day, so eventful in fact that i had to replace the normal video i had scheduled today with this one, because wow today has been one of the best performing days for the stock market. In a very long time, and for good reasons that i'll discuss shortly, however, even during this incredible rally, people are still making a very significant mistake with how they invest their money and, if you're doing this, which i have a feeling applies to a lot of people Watching that is going to be a mistake, that's going to cost you a lot of money and that's something i don't like. So if i could help you not lose money or basically, if i could help you make money, i'm happy. That means i've done my job, which is to sit here alone and just talk to a camera by myself.

So let's go over exactly what's going on what this means for the future of the stock market and then because this is an investment in finance channel. How you could use this information to make money or basically not to lose money, but before we begin, we also got to make sure the like button hits a record high too. It just takes you a second. It helps me out a ton and if this video gets a record high, i will show you a picture of a really cute kitten.

So with that said, thank you so much and now i'm going to magically teleport over to my chair, alright. So, as usual, let's bring everyone up to speed for a moment. On september, 2nd, the s p 500 hit its previous all-time high. That was driven by the beginning of reopening the economy, lowered illness cases and the prospect that another large stimulus would go into effect and that hey things might start to get back to normal.

But as that happened, cases became more prevalent, the stimulus deal dragged on and with less than stellar news. The stock market began trending downwards. At this point, many people were worried that this was going to become the so-called double dip recession that everyone was talking about and that we would begin to see the aftermath of what happens when all the excitement begins to wear off. Then, in october the markets tried testing another all-time high, as stimulus talks progressed further and the market awaited an injection of money, but that didn't happen and with the uncertainty surrounding the election, everything just began to fall again.

That was until last week during the week of the election as the outcome of the presidency, the house and the senate began looking a little bit more clear. The markets just began to rally. This was with the expectation that we would have a fairly split congress, which many investors argue is a good thing, because we'll see a fairly balanced outlook on anything that passes through. However, if that didn't propel the markets enough, then this today was the real catalyst for everything to begin moving forward, and that would be this.

That would be the news today that the drug manufacturer pfizer announced a vaccine that they say is more than 90 effective in phase 3 trials. Now, for anyone wondering here's how that works. Initially, studies like this are conducted in a laboratory setting as researchers analyze the virus and how it interacts with other cells. This promotes an environment where they could begin learning exactly what it is, how it works and how it reacts to other stimulus, and no, i don't mean this sort of stimulus.

I mean this stimulus now from there once they have promising results. They can move on to. What's known as a phase one clinical trial now, typically, this is tested on a small group of people in small doses and they're analyzed to see what happens now. If this appears promising, then it's given to a larger group of people with a larger dose to see how they react - and this is slowly ramped up to test tolerance, side effects and any other immune responses.

The biggest test here would be safety and making sure there aren't any weird side effects that would make them reluctant to give this to a much larger group of people, but assuming it passes, then we go on to the phase 2 clinical trial. This one is typically administered to a larger group of people as they test for effectiveness, dosage and minimizing any risks. This portion can last anywhere from a few months to a few years as they analyze how this vaccine interacts with the body. But obviously these timelines could be moved up significantly, given the urgency of finding something as soon as possible and all the resources allocated into getting this done now.

After that, though, assuming positive results and no severe side effects, it's moved on to the phase three clinical trials. Many would argue that this is as close as you could get to giving a vaccine to a widespread audience in a controlled environment. By now, they should really have a good idea of the dosage amounts, the side effects and the safety, except with this, they have a placebo group to test just how well this drug actually works. Why well it's important to control as many variables as possible and test under a consistent setting, and this helps us to determine the actual effectiveness of the drug versus what our mind wants us to believe and, in this case pfizer had some really good results.

They looked at 94 confirmed cases of the illness among more than 43 000 volunteers who either got two doses of the vaccine or a placebo, and more than 90 percent of the confirmed cases were from people who were given the placebo and not the vaccine. Now, in terms of how significant this is, the fda previously said that they would have been happy with a 50 effectiveness rate, but this at over 90 percent is incredible. Pfizer says they plan to seek emergency use authorization from the fda as soon as volunteers have been monitored for two months after getting their second dose of the vaccine. That could happen as soon as the third week in november now keep in mind.

This is not the first time a treatment has gone through phase 3 trials and pfizer has said, they're still unsure exactly how long the protection lasts. So more tests need to be done. However, even though there are some questions still up in the air, and it still needs final fda approval, it's a really good sign and if it works exactly as described, this will open up a lot of new doors for the entire economy. The second to also remember the vaccines are not going to be largely available on the market until sometime in 2021.

So this doesn't change much of our normal everyday lives right now, but it could in the future if things continue on such a positive trajectory now, as far as the stock market is concerned, this is where things get crazy, with the news of a potential vaccine, the Recovery stocks are the ones that have benefited the most from this. These are the businesses that got hit the hardest because of the shutdown like restaurants, airlines, hotels, the travel industry or anything involving a physical location. Companies like boeing up over 14 dave and buster's up 40 percent bp up 17 delta up 15 win is almost up 30 simon property group up 27. Honestly, this type of market rally is insane, but with every winner it can also be a loser and online companies that dominated the space like zoom, etsy, amazon and shopify are all down, because now there's less of a push for people to continue using those online services.

Long term, the assumption here is that once the economy begins to reopen, there could be a big rotation of money away from tech stocks and into reopening stocks or in-person businesses. It's still too early to tell, although, overall the market is up massively on this news like earlier today, the s p 500 surpassed 3 600.. The dow jones was also getting very comfortable with getting near 30 000 and the nasdaq even surpassed 12 100. Before closing down the day for a slight loss, now i know, inevitably there are going to be people out there saying, but graham the market is at its all-time high.

Now is not a good time to invest, i'm just going to be sitting over there on the sidelines. It's going to crash any day now, since the actual economy is not really that good right now and to that here's. My response, backed by factual studies and data, not by opinion - and this is what i have to say now - quick disclaimer, but i've mentioned this information before. But it's worth mentioning again because number one people never go back and watch my old videos.

So all of that information gets missed and two people keep making the same mistake over and over and over again, and it ends up costing them money. So this one is absolutely worth mentioning again, so i'm just gon na say it timing. The market is one of the stupidest things that you could do like. It was widely anticipated that the election was going to cause a lot of stock market volatility, to which we saw none.

If you pulled out of the market like, i saw a lot of people doing such as in this thread right here on reddit, you would have missed out on a 10 gain in the market just in the last week. So, given that, let me show you guys the importance of staying invested in the market and continuing to invest your money, even as the market climbs higher, because here is the factual data. You need to know. Studies have shown time and time again that the best strategy for investing your money is just to dump it all in the markets as soon as you have it, and then you just keep it.

There vanguard analyzed the entire history of the market and they found that 67 percent of the time just dumping your money into the market. All at once would give you a higher return than if you slowly just allowed it to trickle in otherwise known as dollar cost averaging now, even though sure there might be a one in three chance of that strategy being less profitable, you never know what's in store For the future, and if anyone offers you a two and three chance of making more money, you should probably take it. The second after you invest your money. You should probably just keep it there.

Don't think that you're some experts who could predict exactly what the market's going to do in the short term, because chances are, if you think something is going to happen so do millions of other people, and that in turn could mean that current good or bad news Is already priced into the markets, but the real reason why it's so important not to time the market is that if you miss out on the best days like potentially today, it could cost you a lot of money. Like fidelity found that over 40 years, a 10 000 investment in the s, p 500 would have grown to 697 000. If you just kept your money invested without touching it. However, if you missed out on just the five best days over 40 years, your return would diminish by over 265 000.

Then, if you missed out on the best 10 days over 40 years, you would miss out on 384 000 worth of profits missing. The best 30 days would result in a 581 000 lost opportunity, and if you missed the best 50 days in the market over 40 years, that would result in almost 650 000 less in profit or in other words with inflation. If you just miss the best 50 days over 40 years, you're losing money, another study found that within the last 15 years, if you started with ten thousand dollars, staying invested in the markets would have earned eighteen thousand dollars more than someone who missed the market's 10 Best days, this should really go to show you that, statistically speaking, if you have money sitting on the sidelines, you're missing out on a lot of potential for that money to grow in value and by selling out of your investments or trying to time the market, you Risk missing out on those best days that could severely impact your overall return. Even the argument that the market is at an all-time high doesn't make a lot of sense, because, naturally, we're always going to be hitting new all-time highs, like imagine, buying into the s p.

500, at its previous all-time high on january 26, 2018 at 28.72. Sure in the subsequent few months, prices went down and it took about a year to return back to that same level. But even though you bought in at a previous all-time high, if you just held so far today, you would be up 25 in just under three years, not even including dividends being reinvested, and in 30 years from now, i could say, with almost 100 certainty that the Stock market is going to be way higher, then than it is today, and i bet 30 years from now we can look back at today and be like wow. The market is so cheap.

I wish i bought more of course. Yes, anything could happen, and maybe the markets go down in the short term, who knows either way, statistically it's better to get your money invested in the markets now and continually reinvest. Otherwise, you could be a part of the statistic that misses out on those best days. In the market - and lastly, i just want to say this just because some good news came out does not mean we're out of the woods just yet and if everything goes to plan, it's still going to take some time to get this fully to market.

Of course, any little bit helps, but for us to really return back to normal, there's still quite a lot that has to happen. Businesses are still suffering, people still need assistance, and this could very well be a year away from being implemented on a wide scale. Optimism is great, but it's still important to be grounded in the realities of the situation and that things will still take time to develop that could weigh down on the markets once the initial excitement wears off or maybe not, people could certainly be excited for a long Time we also have a new proposed stimulus bill, potentially in the works that would include extended unemployment paid sick leave, increased social security payments, student loan forgiveness and stimulus checks, but it's also too early to tell how that's going to play out or if it's too ambitious To be passed through by the senate in the meantime, though, just keep investing. I've been no stranger to saying this since the beginning of the year, and basically, since i've started making youtube videos in nearly every single one of them and i'm still investing a significant amount of money into the markets, regardless of what happens.

So, if you missed me talking about this before just know that all-time highs are nothing to worry about and they're, just a part of investing keep your money invested in the markets, keep buying and don't let this rally dissuade you. Hopefully this should be really positive news and that overall, there is movement towards the light at the end of the tunnel, but also make sure to smash the like button. So i can continue to keep you updated on exactly what happens at the market. So with that said, you guys thank you so much for watching.

I really appreciate it as always make sure to destroy the like button. Subscribe button and notification bell also make sure to add me on instagram. I posted pretty much daily. So if you want to be a part of it, there feel free to add me there, as in the second channel.

The gram stefan show i post there every single day - i'm not posting here. So if you want to see a brand new video from me every single day, make sure to add yourself to that. And, lastly, if you guys want three free stocks use the link down below in the description weeble is going to be giving you three free stocks. When you deposit 100, on the platform with two of the stocks worth at minimum eight dollars to show you guys, i actually have three free stocks.

So the first one we got is zynga and then we got uh, let's see another zynga, eight dollars 11 cents, and then we got wow agi, nine dollars and 25 cents. So if you want three free stocks too, use that link down below. Let me know which three you get thank you so much for watching and until next time.