Let’s attempt to answer the question: did we miss the stock market bottom, or is it about to drop again? Here are my thoughts - enjoy! Add me on Instagram: GPStephan
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So, here are some of the reasons it should CONTINUE going down:
First, this whole “illness” is still VERY new, and we’re only just over a month into it - so, many argue that we haven’t really felt the effects from what’s possible, and that stay at home orders could last much longer than expected.
Second, we need to address unemployment…which just hit 10 million claims in the last 2 weeks.
Now, sure…SOME of this is going to be temporary, and a big portion of that will resume working once businesses open back up. HOWEVER…I think the kicker here is that, once things open back up…many businesses will start to see less demand, because people just won’t be spending as much money, because they have savings and bills to catch up on…and, because of that, businesses won’t be as busy, and won’t need to hire as many people as before.
Third, even AFER all of this subsides…people are STILL going to be in a financial mess.
They will still have bills to pay. They still have rent. They still have mortgages. And stimulus money will only last for so long until people are on their own again, and expected to pick up the pace to make ends meet. At this point, it’s unclear how quickly that is going to come and how soon we can return to normal.
And fourth, we really have no idea how much is already “Priced In.”
You guys know the saying…buy the rumor, sell the news? Well, that’s a bit applicable here. The stock market doesn’t care about what’s happening RIGHT NOW…it cares about what MIGHT happen in the future.
However…to counteract some of these, here are reasons why the stock market could recover:
First, at some point, people will return back to work, and in a few years - this would be a thing of the past.
If you’re investing your money without the expectation of using it immediately, it doesn’t matter if you invest now - or if you invest a year from now - as long as you just invest.
Second, the Federal Reserve has made it clear that they’ll do whatever it takes to keep the economy going, at all costs…
It does make you think that, if things get too bad, the FED will step in, get more money into circulation…and stop some of the losses.
Third, the markets have dropped - from peak to low - nearly 40% at its worst, which wasn’t an insignificant drop, by any means.
This drop was during a time where - outside of THIS event - everything was otherwise going relatively well. Interest rates were low, people were spending, consumer confidence was high, unemployment was low - and when we take this out of the equation, not too much had fundamentally changed.
Fourth, there was already a LOT of bad news priced into the market - so, what else are we not taking into consideration?
Fifth, anecdotally…and I say this PURELY from opinion…but, it seems as though there’s a LOT of pessimism out there that the markets WILL go down, and it WILL get way worse…and that almost makes me think that, if the majority of people BELIEVE that…then, it’s less likely to happen.
Lesson: Focus on what you CAN control, and disregard everything you can’t…you give yourself MUCH greater power to make the most of opportunities, LONG TERM, without concerning yourself about what the markets may or may not do in the short term.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
Get 2 Free Stocks on WeBull when you deposit $100 (Valued up to $1400): https://act.webull.com/k/Vowbik9Tm5he/main
NEW: JOIN THE WEEKLY MENTORSHIP - https://the-real-estate-agent-academy.teachable.com/p/graham-stephan-mentorship-program/
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
So, here are some of the reasons it should CONTINUE going down:
First, this whole “illness” is still VERY new, and we’re only just over a month into it - so, many argue that we haven’t really felt the effects from what’s possible, and that stay at home orders could last much longer than expected.
Second, we need to address unemployment…which just hit 10 million claims in the last 2 weeks.
Now, sure…SOME of this is going to be temporary, and a big portion of that will resume working once businesses open back up. HOWEVER…I think the kicker here is that, once things open back up…many businesses will start to see less demand, because people just won’t be spending as much money, because they have savings and bills to catch up on…and, because of that, businesses won’t be as busy, and won’t need to hire as many people as before.
Third, even AFER all of this subsides…people are STILL going to be in a financial mess.
They will still have bills to pay. They still have rent. They still have mortgages. And stimulus money will only last for so long until people are on their own again, and expected to pick up the pace to make ends meet. At this point, it’s unclear how quickly that is going to come and how soon we can return to normal.
And fourth, we really have no idea how much is already “Priced In.”
You guys know the saying…buy the rumor, sell the news? Well, that’s a bit applicable here. The stock market doesn’t care about what’s happening RIGHT NOW…it cares about what MIGHT happen in the future.
However…to counteract some of these, here are reasons why the stock market could recover:
First, at some point, people will return back to work, and in a few years - this would be a thing of the past.
If you’re investing your money without the expectation of using it immediately, it doesn’t matter if you invest now - or if you invest a year from now - as long as you just invest.
Second, the Federal Reserve has made it clear that they’ll do whatever it takes to keep the economy going, at all costs…
It does make you think that, if things get too bad, the FED will step in, get more money into circulation…and stop some of the losses.
Third, the markets have dropped - from peak to low - nearly 40% at its worst, which wasn’t an insignificant drop, by any means.
This drop was during a time where - outside of THIS event - everything was otherwise going relatively well. Interest rates were low, people were spending, consumer confidence was high, unemployment was low - and when we take this out of the equation, not too much had fundamentally changed.
Fourth, there was already a LOT of bad news priced into the market - so, what else are we not taking into consideration?
Fifth, anecdotally…and I say this PURELY from opinion…but, it seems as though there’s a LOT of pessimism out there that the markets WILL go down, and it WILL get way worse…and that almost makes me think that, if the majority of people BELIEVE that…then, it’s less likely to happen.
Lesson: Focus on what you CAN control, and disregard everything you can’t…you give yourself MUCH greater power to make the most of opportunities, LONG TERM, without concerning yourself about what the markets may or may not do in the short term.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
the FED are playing with monopoly money they seem to pull a trillion dollars out of knowhere
You are one of the best and most entertaining youtuber that gives investing advice , keep up the good work
HULK SMASH BUTTON!!!!!
There is NEVER a cure for a flu, it just needs to be controlled like HIV from turning into AIDS, and the market will skyrocket.
your voice is annoying
Wait till Q2 earnings reports come out. The full impact of the virus on businesses like the airlines for example will be unveiled and it will not be good. This will cause the market to take another big hit when Q2 results come out for all companies. The only thing that can stop that is a vaccine. If a vaccine is developed the market will start to soar again.
No the market fulfils prophecy. If people think it's going to go down, they dont try to prevent it, they try to prevent their OWN losses. Which means sell, which makes the price fall.
I’ve been scrolling through the comment and I can feel the panic in most comments. The ongoing pandemic is taking center stages around the globe affecting everything including the stock market but in contrast to what most people think, I see a great opportunity to create wealth in regards to the market. It all depends on investors whom are brave enough and ready to seize this once in life time opportunity.
Get ready to BUY BUY BUY! THE MARKET IS AND WILL GO DOWN AGAIN!!! WOHOOOO!
FOMO then Buy. Then Panic SELL!! when market goes down. Then Regret when things go back up and repeat. – Typical investor
Buy and hold. Dollar cost avg – Intelligent Investor
Smash that dislike button.
We are in the greatest sucker rally of all time. Market will tank before the end of the year at least another 20% down from the last bottom. Have the balls to pick a side lol.
Lol Graham is…..
a bottom.
dow currently down 18% from high.. post great depression bottom 85% below high, post 2008 crisis bottom 44% below high. Wonder what will happen.
I invested $50k in 3 commodities during this,held throughout cash, I almost panic sold my Portfolio. In the last week of my Trading cycle, it all peaked over $308k. I was blown away.
Long-term investing? Who would want to take advantage of compound interest? Honestly so silly, you are far better off day trading and losing all of your life savings over the course of a few months.
Who is this kid and why should I take his financial insights seriously?
graham is trying to advertise an emergency fund
I think we are going to be fine …… INVEST!
If the stock market keeps growing, while the value of companies does not (as much), it means a new bubble is in the creation and there will be a burst. The question is just, when.
I come back to see how you will work in "smash the like button"
So if i am a new investor is a good time to do that??
I'm just buying a few stocks daily for the lowest price I'm confident in letting my cash go for. Watch daily, adjust as needed and look at it as paper. Remove those feelings folks. Even during the recession people still bought stuff. Its survival time now. Each stock even if it's at 10.00 today, drops to $1 tomorrow has the potential to be worth 250 in the future. Stay calm, stay focused and we all might want to learn a new skill when the stock market is closed and we are at home. You cant depend on someone else to think for you.
My advice is keep calm and buy for the long term…