Hey guys, it's Sasha The S P 500 has gone up 15.9 so far this year. We are only two thirds of the way through this year, but 2023 is already one of the best performing years in a recent history. But the crazy thing is that this data is extremely misleading because the stock market is actually collapsed even further in 2023 after already losing 19 in 2022.. if you watch CNBC you hear people talk about investing, everyone seems Delirious that the stock market is rebounding.

We're back, and everything is going great. But the truth is the exact opposite. The stock market is actually down more like seven percent in 2023 when you combine it with a loss of almost 20 in 2022. This is one of the biggest stock market drops in history.

Many stocks are now cheaper than they have been over the last three to four years. For many investors, the stock market is currently trading at a once in a generation sort of a discount, but but there are eight companies in the stock market that are bucking the trend. Since Chat: GPT Arrived on the scene about nine months ago, the world of investing has gone absolutely Bonkers for AI companies are tripping over each other to buy Nvidious Gpus to train their artificial intelligence models, and this has led Nvidia Revenue going up 170 percent in just a few months. Unsurprisingly, Nvidia stock has reacted well to this Bonanza and is up 227 so far this year, because when Revenue the company goes up 170, it is of course, entirely sensible to forecast that it will continue going up 170, every single year for the next few decades.

In the recent X-spaces Elon Musk said that Tesla has spent two billion dollars on AI, most of it on apparently buying Nvidia's chips, and apparently Tesla is planning to spend even more than that next year. And then Elon Mus demonstrated FSD version 12, which is the first version that is entirely built on AI without using any heuristic rules at all. So Tesla is also a member of the AI club and their stock is up 120. So far, this year, Amd's been posting very poor results in the last few quarters, but AMD is a chip manufacturer, which makes them kind of similar to Nvidia.

Now, they don't really compete with Nvidia and AI chips at the moment. they said that they will do, but they're not right now. but it's all a eyebrow. So evaluation for AMD is up 60 this year, and it's the same story for the other large tech companies as well.

Facebook is up 132 percent even though Mark Zuckerberg's AI doesn't know how to draw legs on their Wii characters. Microsoft spent 13 billion dollars to buy 49 of open Ai and that 13 billion change when you when the Microsoft valuation went up 630 billion dollars of this a year. And then there's Apple, Google and Amazon who have all mentioned the word AI approximately 69 billion times in their last earnings calls all up hundreds of billions of dollars this year, these eight big companies that play the AI game add up to 27.8 of the total market cap of the S P 500. Most of them are very big, Hence, they take a disproportionate chunk of the total and remember, the S P 500 is up 15.9 so far this year overall.

But you can go and do some simple maths. And yes, there is a simplification in there because this doesn't account for the rebalancing that would have happened without those companies throughout the year. blah blah blah. But these eight AI stocks have contributed roughly 20.7 of the S P 500 increase so far this year.

This is after you take into account their weight within the index. So 20.7 out of the 15.9 came from these eight stocks. Which may means that the other 492 companies combined have lost 4.8 percent Now, along with AI, The cruise industry has seen a rebound after the pandemic. Carnival Cruises of 97, Royal Caribbean is up 102 and so on.

So if you look at the rest, everything else in the S P 500, every other industry is contributing to a drop of over five percent. And if you then remember that that rest of the S P 500, there's a weight of a bit over 70 percent after you take out the eight big companies. That means that the average company in that group, the average company that is not one of those eight is down about seven percent so far this year, which is staggering when you think about it. I Know, investing in the trendiest flavor of the month company is the sort of thing that people like to talk about on YouTube So you don't really hear about companies that aren't Facebook and video or Tesla But the fact remains that if you ignore the AI hype train just for a second I know it's hard.

The stock market is down significantly so far this year. If you've been sitting on the sidelines thinking that you've missed the boat, think again. The S P 500 has only had two red years in a row twice since the Second World War. And if you look at the numbers and discard those eight AI stocks that are on their way to the moon, the stock market is having a pretty bad year for the second year running.

The last two times that the stock market died in two consecutive years, the rebound year afterwards was up 31 in 1975 and 26 in 2003 after the.com crash. The biggest crash in recent history was the financial crash which made the S P 500 go down 38 in 2008 just the one year, but the very next year in 2009, the stock market was up 23. Now, if you watch YouTube you would think that the market crash we have been watching over the last two years hasn't actually happened because it is going to happen. Constipated faces on video thumbnails will tell you that the biggest recession in history is 100 incoming.

The New World Order will destroy everything. The biggest stock market collapse ever is on the way imminently and you know what Anything is Possible The last few years have shown that you can never bet against the Absurd the ridiculous completely destroying any plans and taking down the economy. And the stock market has only posted three consecutive red years once in modern history since the Second World War during the.com crash. And yes, the stock market exuberance during Covet was crazy.

Some people would say that hey, it needs to correct itself. Investors were buying a pellet on stock because expensive coat hangers of the future bro companies in the virtual bankruptcy were some of the most popular stocks talked about amongst retail investors. But those two years were nothing compared to the internet boom of the late 90s and that boom took just three years to completely flush out. So look at all the other companies in the S P 500 who aren't AI stocks.

For every Nvidia and AMD there is a Texas Instruments the stock that has traded sideways for four years Bank stocks are not performing Boeing is down some stocks in my portfolio like Fiverr for example. been posting great results, but the stock is still down sitting at a three-year low. If you are sitting there wondering if you've missed the boat, the stock market is currently down by 25 since the start of last year. Other than that AI bubble and 25 is a lot.

The S P 500 has only been down 25 or more looking at calendar years three times since the second the World War happened. This is quite literally a once in a generation kind of opportunity to invest your money, but most people won't notice it and most people won't do it because either they're sitting there waiting for the next biggest crash that the world's ever seen, waiting for the disaster that's going to wipe out everything, or they think that they're already too late in the stock market has now gone back up. So you know better not buy stocks because, well, the stock market is green this year. The fact with most opportunities is that the vast majority of people don't see them even when they're staring at them right in the face.

But compared to every stock market crash that happened before, it has never been this easy to actually take advantage. Opening an investing account used to take a small mountain of paperwork and you needed to invest at least five or ten thousand dollars just to get started back when the.com crash was happening today. You can open investing account in just five minutes and invest 10 bucks or whatever it is that you want. You can even get free shares of free money just for signing up.

Check out the links in my description for some of my favorite: Brokers But people have a mental block when it comes to thinking rationally. They don't want to go and do the right thing, even if they know that it is. In 2021, Everyone and their dog was investing in stocks when every stock was going up three billion percent a month. But now that the stock market has fallen for two years straight, suddenly nobody is interested.

Why buy your favorite chocolate bars at 25 off when you can wait And buy them when they're back to full price, right? Nobody wants to catch a falling knife. What if your stock goes down after you buy them? Oh dear. If you want some entertainment of this variety, please feel free to check out the comment section. Some of the best examples of the Tweedle Dums Making this exact kind of point because they think that it makes them sound clever.

But there is a reason why most people don't make money investing. And that reason is that most people invest with their emotions instead of their brains. They see stocks going up and they're going queue up to buy them. They see stocks go down and they think the sky is falling.

Better get out before it's too late. They measure their investing returns in days, weeks, and months instead of years and decades. They want to short squeeze Wall Street by buying stocks of a Dying Theater Company because some morons on YouTube and Reddit told them it's a Surefire way to make three gazillion percent returns I Look at the stock market that has been beaten up really badly for two years straight and could not be more excited. I'm on vacation at the moment.

You might have noticed that I am not in my studio but in the middle of the Gunnison National Forest right now. but I'm sitting here trying to work out how I can invest as much as possible in the next few months in the next couple of years while the stocks are selling at an even bigger discount. These opportunities do not come around often, and your long-term investing performance depends on how you behave when all the idiots are busy running around, panicking, waving their hands in the air and shouting for everyone else to panic too. It might not feel like it, but this is the time when the wheat gets sorted from the chaff.

But most people will only figure this out when line has gone back up.