The Stock Market is CRASHING Hard Today! (Here's Why)

[00:00:00] Speaker 1: guys what exciting day in the market we've had a couple of good ones now the nasdaq is currently down four percent bitcoin is below 60 000 the shocker of all shockers bitcoin is down a lot when the nasdaq is down a lot i know that's counterintuitive to everybody's thought process bitcoin is its own asset it should not go down with the nasdaq insert sarcasm here of course it should because all bitcoin is is a leveraged nasdaq play that is it now why is the market down a lot they were saying it's because the job reports are so good and people are worried about raising interest rates okay or it could be because guys the market was so overbought we have been up so much since end of march there's a there's an indicator in technical analysis called rsi this says if something's overbought or oversold i asked mo today i called him up i said mo what's the rsi on the s&p right now he said 94 guys anything above 80 is considered overbought 94 is very very overbought so doesn't mean overvalued doesn't mean anything you can have an overbought market in an undervalued market you can have an oversold market in an o in a in a overvalued market we've seen both of those things occur but what it means is so much buying so quickly guys we saw all these these chip companies and these semiconductor companies just skyrocketing very quickly parabolically you're looking at companies where 90 of the returns in the last 30 years have come in the last one year okay it's time for a breather now where does the market go from here no clue anybody who says otherwise is lying to you guys if you're new to our channel i want to remind you that we are the voice of reason during bad days like this is the market going to continue to go down i have no idea is it a rebound i have no idea what i care about is can i buy good companies at good prices can i buy great companies at great prices if the answer to that is yes i buy them if their stock goes down further but the the fundamentals are still the same i buy more of them it helps me sleep better at night when i understand what i'm buying that's what i want you to understand if you've watched our channel and our main channel for a long time you know this is what i preach during booming markets it's hard because fomo's there and you see companies like intel a company that i actually own up how much in the last one year 400 in the last one year and guess what it wasn't as low yet that's what's incredible 400 in one year it's saying a hundred dollars per share right now this is a company that was at 75 a share in 2000 and didn't hit a new high until a month or two ago and it's in a turnaround you look at companies like micron let's look at micron here micron technology oh my gosh down 115 dollars per share 11 and a half percent it's at 881 dollars and the all-time high was literally two days ago at 1089 it has fallen 20 almost in two days guys is that normal no it's not normal these things but look at the look at the rise of micron last year year to date 180 percent in the last one year micron's up 730 after falling 20 from its high recently that is incredible but again we will be the voice of reason for you because there will be a time in the market when it feels like things just go down just like as of late it felt like things only go up but remember one of the tenants of our principle driven investing and one of the most common statements made by value investors in the short run stocks are a voting machine in the long run they are a weighing machine it's really important remember that if you believe something can be undervalued you have to believe it can be overvalued if you believe something can be overvalued you have to believe it can be undervalued how do i know things are overvalued morons like kathy lee sorry kathy wood tom lee i married them together right there kathy wood tom lee grant cardone michael saylor can all appear to be geniuses in this market they are morons they are literally the dumbest people i've ever heard speak jim kramer another absolute moron but guys again we're here to teach you about the fundamentals of business doesn't mean you're not going to make mistakes doesn't mean that i haven't made mistakes i have made plenty of mistakes but just like a baseball player who strikes out or who gets out 65 of the time they still get to the hall of fame even by striking out 65 of the time that's what i'm going to focus on finding good company that can compound for a long time a couple other pieces of good news or news in general sorry not good news spacex the smp there was rumors last week that the smp was going to waive their rules to enter the smp usually they have rules on profitability and you have to be a publicly traded company for at least a year but people were saying that smp was going to exclude that from spacex and allow it immediately in the smp the smp came out yesterday or this morning and said nope not gonna happen we are still honoring this rule i believe the nasdaq said the no the nasdaq waived its rule the nasdaq said no no no we're good we're gonna include them but the dow and smp the smp basically said hey sorry not gonna not gonna happen in a year if you have the profitability you've been around we will talk then i like it they're sticking to their guns now with that said it's gonna cost the money because people want to buy spacex people want to buy these high-flying companies these are fun companies to get excited about guys i don't get excited about them i get excited about buying undervalued assets remember one thing when company goes public the investors bank the investment bankers are hired to go on a roadshow they're hired to go sell like crazy that means they market they sell they do anything possible to get higher prices for their client who is their client not you it's spacex spacex is paying them fees to get really really high prices this is the key of the game if you understand where the incentives are you will understand who you need to pay attention to that's the big thing here now another couple of big companies here let's see what's up today well here are our top searches today for our community members in our in our community apple's barely down and here's what i've always said about apple apple's the one that people go to they're the ones that say this this is the safe company a good friend of mine who i he has his he really has his pulse and like whenever he says stuff about the the long term of the market he is right from an emotional standpoint he once said to me paul i will believe the next big bear market is over when people have given up on apple because apple is the last one it's like this is the company we all believe in this is the company that have that this is the go-to they generate tons of money when people have given up on apple that's probably pretty close to the end of the next bear market that's a very important thing to remember okay paypal down 3.8 percent adobe is only down 2.8 probably the reason being is they've already been beaten up like crazy lately maybe it's oversold i don't know now remember i'm a i'm a shareholder of both these companies these will go down in a very bad bear market we can never know what's going to happen but i saw a great video recently i don't know what it was made about warren buffett warren buffett was talking to some group and one of the people asked something about value markets and what's going to happen he said listen the best year in the dow after that point was 1954 and the dow with dividends was up 50 percent he goes you know what we're in the middle of a recession you would have thought that that would be a bad year the recession started in 50 in 53. he goes unemployment had doubled there was a recession going on and the dow doubled why valuations and you don't know what's going to happen we have no idea what's going to happen remember how people thought that the second real estate prices interest rates went up real estate prices were going to collapse they didn't they went up even higher why because nobody would sell their homes anymore because they're like well i got three percent why do i sell to go buy to go buy at seven percent so inventory went to nothing something to consider here meta's down six percent salesforce another one that's been beaten up hard only down 1.65 wow lulu's at 115 this is a very popular company to look at a lot of our community members have been looking at this company my only reservation about let's put it this way here's my take on lulu if you open lulu up and put it in our stock analyzer tool when i've done it and i've made very reasonable assumptions over 10 years this thing is a screaming buy don't jump out there and buy it just yet never ever buy it because somebody says it's a screaming buy because the big if is is lulu going to be around for a long time is lulu a brand forever they're just going to keep growing i don't know it's not like nike where i look at nike going no nike i think it's gonna be around for a very very long time very long time yes are they going through problems right now absolutely but i look at lulu going damn at some point lulu's gonna be attractive for somebody to buy maybe it's nike maybe it's amazon maybe it's one of a bunch of other brands but eventually somebody's gonna want to buy lulu because these prices are just getting so cheap it's currently selling for 10 times last year's free cash flow 10 times that's it that means if you paid cash for the company bought all the shares out there you get a 10 return on your money just cash flow wise the market average is like five or six percent that's pretty incredible double the average these are incredible times guys and i love i love bad days in the mo i love red days when i hear people say the market's bad i go why is it bad well it's down a lot that's good don't we want cheaper prices oh well you know i feel my stock portfolio is down are you retiring tomorrow no then why do you care guess what i don't like seeing my stock my portfolio down i don't like seeing my portfolio up i just like to buy the things i like to buy i low cost dollar cost average in a schd every month and eventually when the nasdaq is down a lot i will dollar cost average in a qqq and i buy individual companies that make sense my threshold for buying a stock is a lot higher than everybody else's not because i'm brilliant because of any other reason then i've got so many streams of investments i can be pickier with my individual stocks and my financial situation in life is i don't need to make huge returns to live a comfortable life so for me i'm just gonna wait till i'm picky i can be like picky i will dollar cost average at a low cost etfs and by the way i buy schd every month and it's overvalued probably but i still buy it why it's the habits that i'm forming that i want you to stick around with guys i love these days in the market because it's such a great learning experience nasdaq 4.1 how much time we have left in the nasdaq and the markets open we have 16 more minutes as of recording bitcoin is the 59 641. wow incredible see look what they're saying us indexes are dropping after strong jobs report news follows the stock price that's it guys to me it was just we had a very overbought market that had to be a breather doesn't mean we're not going to new highs doesn't mean that doesn't mean we're not going to be in a really bad bear market starting here we have no idea what's going to happen but to try to guess why it's down who cares do you remember what do you remember the market was down on december 3rd 2016 i don't even know the market was open that day or what was up i have no idea the point is it will not matter in the future what will matter is did you pay a good price for these companies that is it and that's what matters here guys i cannot preach this till i'm more till i'm blue in the face i love this this is such a great experience to have um let's see what else do i have to go over here well guys this is um i really want you guys to always understand that we are going to be here for you when things feel the worst and things will feel the worst for you not now when i see like you know the extreme fear index on the on cnn and things i'm like that's not a fear like fear to me isn't the market being down 10 or 15 percent fear to me is when i hear people saying my money is going to zero if i stay in the market that's fear and that's usually attached to some other story that's that's there because remember when the markets are up a lot and i say to people hey what would you do the market falls in half i'd buy more and then it happens well paul i didn't know that insert story here oh so you thought the market was gonna go in half because of a good story even though in a good story like oh guys unemployment's 3.5 percent interest rates are low the economy is booming and the market's down 60 percent even if that's happening they'll still find something to attach this to why the market's down 60 percent it happens every single time so my question to you is do you want to be calm when everybody else is crazy that is how you'll make more money if you want that we're the channel for you if you want to learn about our principle driven investing approach i have an absolutely free pdf the fifth tenant of my principle driven investing is the most important thing that i can teach you in investing if you can understand this concept then you will do very well in life if you can absorb this concept and say i own this in my body you'll do very well so if you want to find out what that concept is click the link in the description below or in our first pin comment we will email you this absolutely free pdf immediately you will not have to do anything else you'll have it at your fingertips forever and if you understand and absorb all five of these you'll be incredible but if you understand the fifth one if it's in your bones you're going to do it's in your bones you're going to do quite well thank you for your time