This is why the WORST stocks are the ones which are doing the best, what this means for investing, and how you can use this information to make money and invest long term - Enjoy! Add me on Instagram: GPStephan
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New data has found that, since the announce of the vaccine on November 6th, the stocks with high short interest have almost doubled the performance of stocks with low short interest….or, in other words, the stocks that MOST PEOPLE THINK are going to DROP…are the stocks that end up going up the most in price. They even go so far to say that investors have been rewarding “junk and disappointment.”
The thinking is that…MAYBE…investor expectations are SO HIGH right now, that if a company doesn’t completely blow it out of the water beyond our wildest dreams…the stock price goes down. It’s almost as though the bar was set so high…that the best possible outcome is already priced in, so once good news comes out…people begin to sell off, because what else is there to look forward to?
However…economists caution that this behavior could be a sign of something far more ominous, valuations are growingly detached from fundamentals…and, as CNN says…Market Euphoria is EVERYWHERE. Low interest rates are causing investors to search for even higher returns, and with optimism of an opening economy - there’s almost the expectation that it’s impossible to lose money anymore.
But, we should really talk about WHY this is happening in the first place…and, THEN…what you can do about it.
First, Stimulus.
I think the lowering of interest rates and MASSIVE stimulus packages were necessary in keeping our economy afloat, BUT - no surprise, it threw the markets out of whack. When airlines and cruise lines receive BILLION DOLLAR bailouts…it really begins to distort the market in terms of how much the company should be valued, or where it should trade at.
Second, Margin.
With low interest rates, people are encouraged to borrow more money…and, frankly, I think this is fairly normal, and IT CAN BE DONE responsibly…but, many people forget the risks that you are literally borrowing money to buy an investment, that could go down in value.
Third, Why The Works Stocks Are Doing The Best.
Right now, I think a LOT of people are looking for the next big opportunity. We’ve seen companies like Zoom 5X in price…and with the economy reopening, there’s the expectation that REALLY hard hit companies, with REALLY poor financials, that everyone seems to have overlooked…will eventually start doing better.
Fourth, Meme Stocks.
This is a BRAND NEW type of investor, who doesn’t trade on fundamentals, or technical analysis, or news…but, instead…they just trade on momentum and excitement. It seems like every other week, there’s another ‘new’ stock that people begin talking about online…people pile in…drive up the price, and then it comes crashing back down as soon as everyone moves on to the next thing.
Fifth, News.
Attention, RIGHT NOW, is moving the markets…and more than ever, investors are growing impatient when nothing happens.
And Sixth: there’s absolutely the Gamification of stocks.
I’ve been saying this throughout ALL of last year, but lately - it’s seems to me like the line is REALLY getting blurred between investing…and gambling. And in a market where it seems like EVERYTHING KEEPS GOING UP, it’s going to reinforce that investing is EASY, and anything below a 20% return in a month is BAD.
That’s led to this new psychology that people may as well take the risk with REALLY POOR PERFORMING COMPANIES, because they have WAY more upside than something that’s already at its all time high by A LOT. But, I will say this: just because this can work now, doesn’t mean it always will…and, none of it is sustainable.
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.

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By Stock Chat

where the coffee is hot and so is the chat

29 thoughts on “The stock market is out of control”
  1. Avataaar/Circle Created with python_avatars The Bronze Spoon Investor with Steven Labrenz says:

    Great video I really liked it!  I’m a young investor learning as much as I can right now about the stock market.  I invest in DIVIDEND PAYING STOCKS FOR PASSIVE INCOME!  My passive income portfolio is up 48% this year!!!  I’m a hard blue-collar worker and have always paid for everything myself in life.  I believe in WORKING hard & PLAYING hard!  I’m very interested in learning more wealth building strategy videos from your channel, any tips? Keep producing great content and I can’t wait to watch your next video.

  2. Avataaar/Circle Created with python_avatars George Andrew says:

    Bitcoin and cryptocurrency have been making millionaires, although people are still having losses due to lack of experience, that is why it is advisable to allow a professional handle your trade I recommend investor Gloria investment platform she is trustworthy.

  3. Avataaar/Circle Created with python_avatars Stellan Tate says:

    Automate is truly the safest platform you can invest your funds.I must commend the platform, they are always consistent with withdrawals and their payments are automated always making me happy💯..

  4. Avataaar/Circle Created with python_avatars Rafael Ybarra says:

    Graham, Lent is over. Happy Easter!! Back on YouTube to help boost the algorithm 👍🏼

  5. Avataaar/Circle Created with python_avatars Marcus Gray says:

    The forex market is a very liquidated market which is encrypted and has been on for ages,it's only beneficial to those who follow through the right procedure so you've got to approach it in a smart and calculated way. risk comes from not knowing what you're doing which leads to huge losses.beginners should get best from professional broker/trader to work on their investment tolerance and risk management and with time you'd learn to navigate the market all by yourself

  6. Avataaar/Circle Created with python_avatars Southern Born Senders says:

    Intro idea: What's up guys, Graham here, if you could, launch a cryptocurrency and name it Graham Stephan, then infiltrate Tesla and then pitch the currency to Mr.Musk so he post about it on Twitter which really would help spread the good word for my channel.

  7. Avataaar/Circle Created with python_avatars Brian Emmett says:

    I'm still investing responsibly – I put 20% of my account in GME, it doubled, i sold half, and have been day trading and playing around with the house money since. Oh also tripled down on NNDM

  8. Avataaar/Circle Created with python_avatars Sir Carpediem says:

    🔥 That's why you never invest in anything that volatile. The smartest investor invests in things that are guaranteed. The only thing that's guaranteed is cash flow from a real estate asset. It's not taxed and someone always needs a place to live. No matter what any industry does inflation does or the world does the rent stays the same. To invest in something that you cannot control is not a smart investment. Only because it's not guaranteed. Day trading is the smartest because you get in and then you get out with your money and your profit guaranteed. Only because you got out when you are ahead. Other than that the only place to be is in real estate. This is why they call it REAL ESTATE. Other than that it's a gamble and homie don't play that. The only way to win if you have at least $10 million and you're able to be in a position to lose it. Big money makes big money and I would still only day trade unless I have a specific interest in something that will always do well and that would be technology or some kind of disruptive company that shakes up an industry. About to just Willie Nilly your way into a stock situation on trend reports no way Jose. In my opinion guaranteed is guaranteed period. That move from California to Vegas was brilliant because it was guaranteed. 📐

  9. Avataaar/Circle Created with python_avatars Arabela Nakano says:

    The dark brand conversly blush because floor unprecedentedly radiate sans a dizzy wine. lying, vulgar sky

  10. Avataaar/Circle Created with python_avatars Painned by Forex Club house says:

    Bitcoin and forex are more profitable with the favorable market rise

  11. Avataaar/Circle Created with python_avatars jdf says:

    That's why they call the man "Stock Slidin Biden"

  12. Avataaar/Circle Created with python_avatars Lustful God says:

    Im happy because the memers bout to lose LOTS of cash while I GAIN them KEEP UP THE GOOD WORK GUYS

  13. Avataaar/Circle Created with python_avatars 10xStocks says:

    Anyone else buying tomorrow? Im grateful for this exciting channel.I smashed that like button for the algorithm.

  14. Avataaar/Circle Created with python_avatars So_Cool_Boy School_Boy says:

    Graham please help us with the movement to allow brokers to raise the DAY TRADE LIMIT to 15 per week for user with accounts that valued under 25k

  15. Avataaar/Circle Created with python_avatars Jared says:

    Wait, why won't you pay off your mortgage? I didn't understand that.

  16. Avataaar/Circle Created with python_avatars X Æ A-Xii says:

    We love you paper hands, you make some nice discounts 🤣 anyways always gotto look for clues, like when the whales started selling off before the March crash. Normal people be pissing themselves, but everytime it goes down it means more discount. I'm going to stick with regular investments and if I really feel it's to high then start selling of piece by piece and holding more in cash.

  17. Avataaar/Circle Created with python_avatars The Casual Longsword says:

    Companies shouldn't get bail outs, only the people. Take the bailout money that was given to the companies, give it to the people instead.

  18. Avataaar/Circle Created with python_avatars Cassandra David says:

    The rich stays rich by spending like the poor and investing without stopping and the poor stay poor by spending like the rich yet not Investing like the rich.

  19. Avataaar/Circle Created with python_avatars Mun Hee says:

    The rich stays rich by spending like the poor and investing without stopping and the poor stay poor by spending like the rich yet not Investing like the rich.

  20. Avataaar/Circle Created with python_avatars billie Ellies says:

    be invovled folks
    Stocks are going higher daily and you haven't enroll in one of the funds earn profits investment going on.

  21. Avataaar/Circle Created with python_avatars Quentin Lightner says:

    I mean yeah its gambling, but I think most of the stock market is a gamble one way or another. Maybe make people pass a test to prove they understand the risks with trading options or other more risky bets, but I don't think it should be illegal, I think a lot of the people making these bets are being honest with themselves and the wallstreet hedgefunds doing the same thing are the ones who are fooling themselves into thinking they know the game.

  22. Avataaar/Circle Created with python_avatars the rad says:

    Graham , if u dont like and reply to this comment – im not liking your videos anymore! :d

  23. Avataaar/Circle Created with python_avatars Khadi says:

    I disagree with this. I don't like long term gains I want 10x gains in a week with my stonks. who tf wants to wait 20 years to make a million dollars

  24. Avataaar/Circle Created with python_avatars Bitcoin Bear says:

    SHUT IT GRAHAM: and listen to an expert …Ed Steer: Silver Price is About to Blow Sky High – YouTube

  25. Avataaar/Circle Created with python_avatars Don't Wish says:

    Anyone wanna go stupid with me and invest in ASTI? No? Ok……..

  26. Avataaar/Circle Created with python_avatars Christopher Rodriguez says:

    this is me and it is working so well lmfao but I'm slowly selling off so I can put more in good ETFs with good dividends

  27. Avataaar/Circle Created with python_avatars Julie Bloomfield says:

    I've been saving for awhile now and I intend to put my money to good use, I stumbled upon an investor on reddit who mentioned making upto $17,000 last month from dividend and I'd really love to how I could make such profit

  28. Avataaar/Circle Created with python_avatars Marian N. Maxwell says:

    Great stuff. I watch several youtube videos on how to trade in the stock market but haven't made any headstart because they are either talking some gibberish or sharing their story of how they made it and I do not want to make mistakes by taking risks in my own hands.

  29. Avataaar/Circle Created with python_avatars Mark Luke says:

    Miss Elizabeth is legit and her method works like magic I keep on earning every single week with her new strategy

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