All right, so this is getting out of control. First, we had facebook plummet 26. In a single day, then, we had netflix fall 35 overnight as they lost subscribers shortly after walmart drops 25 on miss earnings and then the nail in the coffin target crashes 30 overnight from rising costs, falling demand and the one that none of us expected too much Inventory that's right. Stock prices aren't the only things falling around here and with investors holding on to the highest amount of cash.

Since 2001, experts warned that there could be a lot more pain ahead, especially with the next rate hike scheduled in less than a month, where they've openly said that they're no longer concerned with the state of the market and they're willing to fight inflation at all costs. Because i have to say, after reading the research of the blog market sentiment, there is a calculated way to overcome the odds and make a hefty profit. If you could follow a few basic strategies and smash the like button for the youtube algorithm. Okay, that last part's not required, but it does help up my channel tremendously plus to sweeten the deal if you subscribe in the next 3.42069 seconds.

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So in terms of where we currently stand, a guggenheim analyst suggests that stocks could be poised to decline 45 to 75 from their peak, much like the collapse of the internet bubble. All because of a delayed reaction to the federal reserve to keep raising interest rates until they are sure that inflation has gone away. At the same time, the world's largest retailers are beginning to see a shift in demand setting off a chain reaction that honestly very few people expected this all started when businesses experienced massive shortfalls of inventory from supply chain constraints which drove up prices. As a result, companies began to place massive borders ahead of time to make sure that they would have enough product up front to satisfy all the demand.

However, as the fed raised rates, the market began to soften companies started to lay off their workers with anticipation of slowing demand and when prices had risen to a point where consumers begin cutting back. Businesses were left with too much inventory, putting pressure on profit margins and causing their stock price to fall, or basically, in other words, throughout 2021 demand, was so high. The companies spent a lot of money making sure that they would have enough product, but now demand is slowing down and they have more inventory than they know what to do with causing the mass sell-off that we're seeing throughout the market. Interestingly, this is what's referred to as the bullwhip effect, and it's happening right now, essentially, when businesses order inventory, they do so by forecasting demand prices and shipping if they anticipate a strong holiday season, for example, they'll load up now, with the expectation that they'll make a Lot more money by the time it's all sold, although, as this incredible sketch illustrates, when businesses order more manufacturers order more so, suppliers make even more eventually leading to a point where there's a massive surplus in excess of what the markets can handle.

That in combination of slowing demand and higher interest rates is causing the market to fall at a rate that we have not seen since 2020.. And now retailers are worried about stagflation concerns where inflation remains high, with low growth and higher unemployment. But in terms of what experts believe is going to happen in the short term, look no further than cnbc who outlined what they call these seven dragons that need to be tamed in order for the market to begin going up in price one. We have housing for the first time in what seems like an eternity home.

Prices are beginning to soften. For example, redfin says that in april, just 60 of home offers written by its agents faced competing offers compared to 63.4 a month earlier and 67 a year ago. On top of that, the census bureau said that the number of permits being issued for new single-family homes fell 4.6 in april from the previous month. Mortgage demand is also down by 12 and with new constructions coming on the market, home prices might begin to stabilize.

Second, the automotive industry, the entire situation is a mess, but for those out of the loop, the auto industry was plagued by shutdowns and shortages that delayed vehicle manufacturing and when fewer cars were built, the price of everything else began to drive up as a result used Cars were selling more than new, their prices, increased faster than homes in the stock market combined and that worsened inflation, but now used car prices have fallen. Six point four percent. Since january the supply chains begin to normalize throughout the next year. We could see their prices begin to reverse pun, intended third, the labor market.

Earlier this year there was the concerns of a wage price spiral where employees would have to earn more to pay for the products that cost more leading to employees that earn more repeating the cycle over again, but with widespread layoffs and declining wages. A wage price spiral seems less and less likely to happen. Fourth, we have the russia, ukraine war for the time being, we've seen commodity prices like oil and grains skyrocket, leading to brand new record gas prices across several states. That, of course, increases the cost of shipping travel transportation and everything else that makes up inflation readings, leading to a greater likelihood of more rate hikes.

Alongside that, we also have fifth higher freight costs, which lead to higher prices getting passed on to consumers. It's said that these costs will need to begin coming down if we're gon na get inflation under control. Six airfares are also increasing, leading to less travel, less spending and fears that this might contribute to an upcoming recession. And, finally, seventh consumer spending will need to see a comeback, because throughout 2022, rising prices are deterring buyers and leading to low or sometimes even negative, growth.

If those seven categories begin to return back to normal, then we may see a market begin to recover. But until then, like i mentioned earlier, there is a proven way to overcome the odds and make a lot of money. If you follow the data outlined by market sentiment, although before we cover that listen, i know how much it hurts to watch your portfolio drop in value and see a year's worth of profits wiped away in a matter of weeks. But if you're, a long-term investor.

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Plus now you can sign up for ftx us down below in the description with the code gram and get all the way up to a hundred dollars, depending on how much you trade, along with free crypto and every trade you make over ten dollars, not to mention They've also partnered with steph curry, tom brady coachella and the miami heat arena. So if you're interested in learning more, the link is down below in the description with the code gram and now with that said, let's get back to the video all right now in terms of the calculated data behind how to invest throughout these next few months. Look no further than the blog market sentiment i'll link to them down below in the description, because i have to say throughout this last year, they've put out some of the most incredible analysis that i have ever seen, and this one is no exception. They decided to research the last three major market corrections throughout the last 20 years from 2000, 2007 and 2020, to figure out the ideal time to buy weight and double down during a dip to maximize profits and minimize losses, and what they found was very interesting.

Even though the s p, 500 declined anywhere from 18 to 55 percent, the investing strategy of doubling down on the dip produced the highest overall return, just above the investor who continues to invest as usual. On the other hand, the least profitable investor was the one who waited for the market to recover, which resulted in 35 less profit. But since we all know that long term the market goes up, how did they do in the short term? Well, as you could see, one year later, the person who simply held and waited saw a loss of 28.8 percent well, those that doubled down saw a positive half a percent return and within five years every single buying strategy was profitable, except if you did nothing in Which case you're still down now, of course, the market as a whole is not just one company. It's a collection of thousands that all make up the prices that you see here and, in the last several downturns, they've shown that semiconductors tech and financials do the worst.

While consumer staples energy and healthcare do the best, relatively speaking, of course, because they were all down - although that just means that some industries get hit a lot harder than others. So as a flight to safety, value tends to be a bit of a hedge. The other consideration is that throughout previous crashes, it took anywhere from a few months to a few years to bottom out, and it took anywhere between 10 years and 16 years for the market to double from its previous all-time high. However, it only took 2.9 years on average for the market to double from its lowest point during the crash, meaning that the biggest returns come from the lowest points.

Even the nasdaq on average has returned 22 after a year 52 after three years, 87 percent. After five years and a whopping 328 over 10 years after the start of a bear market. Now, if we look at the average correction of under 20, we're currently sitting at just under the average of 133 days - and this comes at the same time - that consumer spending is nearing the worst - it's been since 2009, suggesting that maybe this could be a pretty good Time to continue buying, as far as my own thoughts about this and how i'm investing i've said it before and i'll say it again. Riches are made in recessions and that is a perfect motto to live by.

The fact is had you invested during the march 2020 bottom, when everyone was worried about the collapse of our entire economy, you would have made a lot of money. The same applies during any mass selloff or panic event where the general consensus seems to be it's going to drop more things are going to get worse, i'll, just wait to buy and lower from what i've seen in the past. This exact mantra is being repeated right now today, and even though prices could continue falling lower, we should be able to reframe our beliefs that this is beneficial as long as you're, not a few years away from retirement, in which case you probably shouldn't be in high Risk equities anyway, the fact is the best time to buy is probably when most people believe it's a bad time to buy, and it's about to get a lot worse. I think if the market is not prepared for something to go wrong, it's probably trading higher than it should be.

So don't fear drops like this, even though they're hard to watch no one likes seeing their money get flushed down the toilet, if you're not planning on selling - and you don't need the money for the next 10 years, just consider it a 30 off discount continue buying. As normal and don't let it hold you back in the moment, no one knows what's going to happen and yes, it could absolutely continue falling over the next year or maybe even two years but long term if you're diversified and don't invest in companies that can't audit Their financials tether, then you should be okay as long as you smash the like button and subscribe for the youtube algorithm. So, thank you guys so much for watching and don't forget to add me on instagram and also subscribe to the market sentiment blog i'll link to them down below in the description, because they've done a tremendous job gathering all of this information that helps you and i Become better investors not to mention it also helps to get a free stock down below in the description when you sign up for public using the code gram, because that stock could be worth all the way up to a thousand dollars, and i'm posting my weekly thoughts On the market there, so if you want to be a part of it, the link is down below. Thank you so much for watching and until next time,.