The 2021 Stock Market Crash is apparently about to happen any day.
Or so you'd think if you read and listen to the media tirelessly predicting the big demise.
Every chart is showing that the stock market crash is around the corner - the stock market is hugely overvalued, stocks have been on an unprecedented run and valuations are ridiculously overpriced.
But the exact same scenario was arguably unfolding in 1995.
In fact you can draw a lot of parallels between the doom of the market crash coming in 2021 and 16 years ago.
Or you could compare it to any other similar period in time.
The truth is - there is little difference in the way the stock market looked in 1995 to how it looked in 2000 just before the market crash.
And so it's pretty important to take a step back and think critically what the best strategy is for getting through the market crash whenever it happens.
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Or so you'd think if you read and listen to the media tirelessly predicting the big demise.
Every chart is showing that the stock market crash is around the corner - the stock market is hugely overvalued, stocks have been on an unprecedented run and valuations are ridiculously overpriced.
But the exact same scenario was arguably unfolding in 1995.
In fact you can draw a lot of parallels between the doom of the market crash coming in 2021 and 16 years ago.
Or you could compare it to any other similar period in time.
The truth is - there is little difference in the way the stock market looked in 1995 to how it looked in 2000 just before the market crash.
And so it's pretty important to take a step back and think critically what the best strategy is for getting through the market crash whenever it happens.
💵 GREAT INVESTING APPS I USE
SIGN UP FOR ETORO (Global)
https://med.etoro.com/B15358_A95689_TClick_SSasha.aspx
67% of retail investor accounts lose money when trading CFDs with this provider. Your capital is at risk. Other fees may apply.
GET A FREE SHARE WORTH UP TO $150 WITH STAKE (UK, Australia, NZ)
https://hellostake.pxf.io/qnA3xq
You will get a free share if you sign up using this link and deposit a minimum of £50.
GET A FREE SHARE WORTH UP TO £200 WITH FREETRADE (UK ONLY)
https://magic.freetrade.io/join/sasha-yanshin
You need to sign up and make any deposit to get the free share.
👍 SUBSCRIBE TO MY CHANNEL
https://www.youtube.com/c/SashaYanshin?sub_confirmation=1
DISCLAIMER: Some of these links may be affiliate links. If you purchase a product or service using one of these links, I will receive a small commission from the seller. There will be no additional charge for you.
DISCLAIMER: I am not a financial advisor and this is not a financial advice channel. All information is provided strictly for educational purposes. It does not take into account anybody's specific circumstances or situation. If you are making investment or other financial management decisions and require advice, please consult a suitably qualified licensed professional.
Hey guys, it's ashley, the stock market has just gone insane. The s p 500 has just gone through the roof after growing at an incredible rate over the last two years that we have never seen in history. We have not seen a serious long-term stock market crash for years, and the market cap are the biggest companies in the s. P.
500 is ridiculously overvalued each week. Everyone is telling you that the market crash is imminent. It is all about to collapse, except this is not 2021.. This is 1995..
This chart is from 1995 and it's remarkable how similar it looks to today's one. The world was rapidly changing at the time the iron curtain had just come down. Opening new markets and new opportunities. Internet and mobile communications were only just getting started.
Only a fraction of people at the time were using that new tech. It was clunky and you had to wait for the all too familiar dial up tone to go on the internet, and your flip phone was a little bit limited on what it could do. Not that we knew that yet and as the market was booming, warnings of an impending collapse were everywhere. We didn't have twitter on youtube at that time, so it wasn't quite as in your face back then as it is now, but here we are in 2021, the world is opening up and suddenly biggest u.s companies are now serving the world instead of mostly being focused On the domestic market, the technology is rapidly changing how we live.
Only a fraction of people have adopted things like electric cars or living and working remotely, and we don't yet know how amazing it is to not have to waste two hours at in traffic staring at the car ahead of you. While the car dries itself - and here is something remarkable - the stock market kept going up for another five whole years after this point in may 1995, reaching a peak that was 170 percent higher than the ridiculously overpriced level of 1995. and then after the dot-com crash happened. The stock market collapsed to its lowest point in september 2002, which was still 35 percent higher than the level in may 1995, and only a few months later, in 2003, the stock market had already bounced back to a hundred percent higher than in may 1995 and continue Going up from there now, some people would say that looking at 1995 and what happened after might be cherry-picking, i'm just picking one point in time that shares some similarities with where we are today and trying to make it under some kind of a logical argument.
But i'm actually trying to do the exact opposite. I want to show you how easy it is to show data. That seems to prove your point. If you decide on what your point is first and then look for data to fit it.
In fact, i could have shown you 1996 or 1997 with exactly the same effect, but then i could go and show you in 1999 or 2000. Instead, we've got pretty much the same graph. If you don't have the dates on there, you wouldn't really know which particular year it was. We have the exact same arguments. Mobile tech is advancing sharply. Mobile phones and the internet are changing the world blah blah blah, but then we get the dot-com crash and boom the market took 13 years to recover to the peak level of august 2000, and that is a very long time if you happen to make a large Investment just before the market crashed. So what is the right year to compare ourselves to? Is it 1995 or 2000.? I mean we did have a sharp market correction in 1998 that almost immediately reversed itself very similar to the correction that we've just had in march 2020, and the big stock market crash followed almost exactly two years later, and here we are a year and six months Down the line from the correction that we had last year and the market crash in 2000 came bang on 13 years after the big market collapse in 1987, and we just happened to be 13 years down the line from 2008.. The two largest companies in the world - apple and microsoft, are both seeing big growth in their p e ratios.
They are horrifically overvalued right. The market is unsustainable. Am i right, but then six out of the eight other top ten s, p 500 companies have actually seen their p e ratios drop recently. Instead we're getting a crazy number of ipos and spac mergers seemingly every day, but is this a sign of a huge bubble? Building, or is it smart private companies capitalizing on particularly good fundraising conditions at the time? The simple fact is this: nobody really knows what the next five years are going to bring, making up a story and then finding a load of charts and data supported is super.
Easy i can make an incredibly compelling case that the market is about to collapse, make a video that will show you 50 minutes of hard evidence that will make you consider selling all your investments and keeping a few bags of cash under your bed. Instead, i can equally easily make a case for the stock market being at the beginning of the biggest five year or maybe even 10 year. Bull run in history. There is so much supporting evidence out there.
Technology is changing. How we live. Governments will do everything at the moment and for the next few years to prop up the economy as what we've seen over the last 18 months and we're seeing the biggest growth in globalization in history and by now, you're, probably sitting there thinking, okay sasha. So what exactly am i meant to do with all of this information? Do i go all in into the stock market? Do i cash out and wait for the correction? Do i do something in between and i get asked this question a lot and there are clearly an endless number of opinions out there on what the right path is deciding what you think will happen and then finding supporting evidence to fit your chosen narrative is very Easy people love confirmation, bias, just look at how twitter actually works and how popular it is.
But here is my take here, is how i approach this. I have no idea if we are in a 1995 scenario or a 2000 scenario. I also know that there is absolutely no real way to actually tell no matter how compelling anyone's argument or how good their math we just simply do not know. The modern stock market has barely been functioning for just about 100 years. That is absolutely not anywhere near long enough to draw any kind of conclusions or base any kind of robust rules on new things that we haven't seen before are happening in the stock market all the time. But there are some important truths that do hold. People are a pretty industrious kind of creature. People have a habit of spending a lot of their lives out there, creating value and the stock market is ultimately a sort of rough summary of that value creation chain.
There is no zero-sum game here, because some people misunderstand this point two people who suddenly go and find themselves in the middle of a random big forest with absolutely nothing are worth nothing and they have no wealth. But if a couple years later, those same people have a big log, cabin each which they built together and one has become a hunter while the other is a farmer and they sell their produce to each other. Well, suddenly that two-person market is booming and there didn't have to be anybody losing out in the process. I believe the simple human nature of industry and i believe in the development that comes with it, and i don't think that that development is going away anytime soon.
So my view is that value creation over time will continue pretty basic and pretty simple, and that value will be built on top of value that has already been created, which creates a continuous multiplicative effect. So, every month that i'm investing and the stock market does not crash gives me an opportunity to partake in that growth. Remember that when we quote stock market crashes, we always compare the peak just before the crash happened to the bottom just after, but in reality even the worst market crashes. Don't look so bad for long-term investors who invest continuously.
The 2000 stock market crash might have taken 13 years to recover to the peak just before it, but only two years after that crash it was already at the same level as it was at two years before the crash in 1998. So anyone investing over time month in month out will not really suffer the sort of numbers that we quote from market crashes directly. In fact, if you continue investing into the stock market, just like you did before the crash after the crash, the investments that you make then will usually give you the best long-term returns. If the stocks are 40 down at the bottom versus the peak before you will be 70 up on the investments made at that bottom point, when the stock market eventually rebounds to just meet the pre-crash levels, so suddenly you're not just trying to break even from the Peak you're actually making some good money instead sure there is a lot more to it. Investing in the stock market overall or picking your stocks can have a huge impact and those may be affected very differently by a major crash. But anyone who cashed out in 1995 waiting for a correction will have missed out on one of the biggest stock market growth periods in history, while their cash was sitting there doing absolutely nothing, and also anyone who went all in in july 2000. Getting maximum leverage and suffering from a combination of yolo and fomo on the dot-com stocks will have not done particularly well at all. So my approach is pretty simple: i'm doing the same, boring thing, i'm putting money into the stock market every single month on a continuous basis and i'll keep doing it next month and the month after and the month after that and when the market does eventually fall Because they always do i'll be putting more money in at that point too, whenever that might happen, it's important to properly assess risks in investing, but it is also really important to not confuse risk assessments with speculation on market trends, something that most established trading companies have No way of predicting either, i hope you guys found this useful.
If you have, please don't forget to hit the like button for the youtube algorithm. Thank you so much for watching. I really really appreciate anyone who watches my whole video. Thank you.
So much and i'll see you guys later.
But I thought gold was going to make me rich as it's sooo shiny. And buying a course with something to do with candles from a chap with funny blonde hair was going to save me from the end of the world that was going to happen for the last 50 Mondays. So confused.
Edit: one thing I forgot to say (or should that be rant on about as thats more apt for what I tend to do on YT) was in my opinion there is a massive bubble in the markets that will burst at some point this decade. Oil and probably gas. Have a look back at coal some 7 years back or so now, thats a very likely future for oil and gas. Thats still a massive part of the stock market and peoples pensions.
Not now…….. I don't know about NYSE Nasdaq, But In India Young Investors are coming in market, Due to Covid 19 Lockdown Students are looking for online earning sources.
I think there is no chance of Whole market crash, It may be happen specially over of time period. Crash on Steel Sector, IT, Later Capital Market, FMCG etc. Span of time it will be recover early by the new Investors.
Buy OEG! Solid company! Well diversified company in solar/infrastructure/gas and 5G. Buy it now before it takes off! Do some DD solid company wich will benifit huge from the infrastructure bill
A Great video, watched all the way through, subscribed 🙂
Sell the tops, hold cash until you see consolidation then rebuy… And no, it isn't difficult to see a crash once it starts.
Sasha I just wana say thanks for the vids , very useful for new long term traders like myself. I’ve currently invested in some long term stocks within the snp 500 , however there seems to be a decrease in the snp 500 that’s been goin on the last few days, could this be the market crash taking place and when would you recommend buying during this crash or blip
Honestly Just build up some side cash and pile it in if it crashes…
I agree with your analysis to keep funding your stock based investments, especially at your age. But I think that you could have also addressed the people (like myself) whom are quite older than yourself about their options concerning a market "crash". I'm sure your advice or commentary would be different for them and their investing options. Other than that, I enjoyed your video and intellect, thank you.
If it would be the case, they would've let it happen during the covid pandemic, last year….but they didn't. We already had a crash, planned or unplanned(debatable) ten years ago. Imho, valuation values are outdated.
There has to be a correction… but when… that is the question…
Soooo…..we could go on like this for years? I dunno. We may go another year if another government payout goes out later this year or early next. Otherwise, I think it's gonna correct at least 15 %.
This does not mean a quality fund manger can't buy good stocks and make money. Some fund mangers beat the global economic crisis and made money and they also beat covid and made money. I say invest your money in a top quality active fund run buy a top quality manger and read up on what their doing. if you trust them it will be cheaper to buy into them anyway if it goes down
so based on your previous happenings, if it plays out like it did previously we have 6 months left of this stock bullmarket i.e Feb 2022
Hold quality stocks ( I include Tesla and palintir in this). They will always come back. High risk growth stocks are fine, but just like any other form of gambling try and get the odds in your favour and be able to afford to lose your stake money. Alway keep enough cash and lines of credit to survive a year for when it does all go wrong again.
I see you've ruffled the feathers of other YouTubers.
AMC entertainment holdings stock is going to short squeeze soon. 💎🙌 very close now 🚀
Tired of people comparing today's situation to the past. America is in no position as it once was, our friends are abandoning us, we owe an ungodly amount of debt, we do not produce anything and no one is wanting to buy our bonds.
Wake up, you cannot compare the two
dont invest in the uk they r shrude investors they left northen ireland and the falklands out to dry at active war with mainland. when it comes to crunch time they will bail out. leave u 4 dead. the future is going to b built on economic trust like ur credit scoring. they will lose out for sure.
china will cater to gen z value for money motif.
invest in asiadont invest in the uk they r shrude investors they left northen ireland and the falklands out to dry at active war with mainland. when it comes to crunch time they will bail out. leave u 4 dead. the future is going to b built on economic trust like ur credit scoring. they will lose out for sure.
china will cater to gen z value for money motif.
invest in asiadont invest in the uk they r shrude investors they left northen ireland and the falklands out to dry at active war with mainland. when it comes to crunch time they will bail out. leave u 4 dead. the future is going to b built on economic trust like ur credit scoring. they will lose out for sure.
china will cater to gen z value for money motif.
invest in asiadont invest in the uk they r shrude investors they left northen ireland and the falklands out to dry at active war with mainland. when it comes to crunch time they will bail out. leave u 4 dead. the future is going to b built on economic trust like ur credit scoring. they will lose out for sure.
china will cater to gen z value for money motif.
invest in asia
Every crash has something in itself that caused it. This time I think is going to originate from the trillions and trillions pumped into the market. Which you can not show with any of your graphs. 🤭
MAKE A VIDEO ON THE CHANGING OTC MARKET STRUCTURE, DEADLINE SEP 20TH, THANK YOU GOD BLESSSSSSS
Don't buy overvalued companies, ever.
Index ETFs will always recover, dollar cost average.
Use a system to pick stocks and use your personal edges (location and occupation)
What were interest rates in 1995 I’m assuming they weren’t 1.27 on the tenure yield there is 100% correlation between the tenure yield in the S&P 500 the federal reserve is suppressing the tenure yield to mitigate Covid once he starts easing up on that there will be a move from tech to the 10-year-old
U sure ? By what evidence? Which stocks will fall? How much? What about gold, bonds?
"stock market crash" imagine getting 0.001 cent for every time youtuber said it , you will still be a millionaire 🙂
I always keep money in the bank I'm not comfortable investing everything into stocks and crypto. I do have a decent amount in both crypto and stocks but this is a ring fenced figure. The bulk of my cash is in the bank and rental property because both are less likely to be open to market manipulation and constant fud shorting. I've made my money with good old fashion hard work. However, people want to be millionaires overnight so FOMO into any crap. I can can understand why people do invest everything because of low interest rates. But I'm mortgage free so whatever I earn top's up every month. I hear people putting their whole paycheck into stocks and crypto at the same time can't pay off their utility bills or a car breaking down. Just think its playing with too much fire.
Thank you for your informative videos Sasha.
BTW, are you going going to talk about the Lucid warrants issue?
Is this beneficial for the shareholders?
Thank you.
Great video.
Essentially teaching a mundane point of dollar cost average and ignore the noise.
But I like the twists and turns.. like its not 2021 its 1995. The market will crash one day. Its inevitable. But we are always going to reach new highs as you said about the two guys in the forest.
Just think of the amount of skilled workforce we introduce every year when people graduate from courses or apprenticeships.
Think of the materials we mine. Both physical earth materials and technological (wind, solar, bitcoin).
Technology is increasing at its fastest rate ever. More automation. (Have people seen inside sainsburys and asda lately – self checkouts are like 30 tills now and staffed ones are like 8)
Speeds get faster, precision improves. New learning.
Think of the economy as one big student and we are all cogs in that student teaching it and learning new abilities. Sadly when we pass it doesnt end, we are all on that economy student as a cog, when one comes off (retires) 4 more get added.
The student (economy learns more and more) and creates knowledge and wealth.
Anyway thats getting deep… haha
Anyway thanks for keeping it real.
Hey Sasha, what are your thoughts on Pintrest atm? It’s not been doing too well in my portfolio and I’m wondering whether it will return back down to early 2020 levels as users reduce after the pandemic.
I mean our elite want a debt reset and the green plan to go into action. I always thought ww3 with China (axis like North korea/africa) v America (and allies such as japan) would be the way to get electric cars out and the way to cause that. Seems the pandemic also speed this up. Idk fasho on anything. I just know our elite wanna stay wealthy and force rules upon the common folk and the easiest way to do that is by diverting attention.
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Make sure you watch all the way through – then drop your thoughts below!