This Stock Market Crash Will Make Millionaires! (Here's How)

[00:00:00] Speaker 1: We've had a crazy sell-off today in the stock market. NVIDIA is down 4.4%, AVGO 4%, Micron 6%, AMD 8.5%, Intel almost 8%, Amazon, my biggest position, is down 5% in one day. The fear and greed index is at extreme fear territory. The market has historically bottomed at extreme fear territory. There's even a funny picture on X about Bill Ackman potentially going on CNBC because he normally goes on CNBC and he cries on television like in COVID and other market pullbacks because his portfolio is down a lot and he's like begging the Fed or somebody to do something. But the sentiment is really, really bad. And the reason for that is because there were some news that the president is not negotiating with Iran, is that something could happen fairly soon, maybe a continuation of the war, which could lead to higher oil prices, higher inflation, higher Fed policy, tighter Fed in general, which could lead to a market pullback. And there's really bad sentiment on this one. Now, it's really important to know that the market always goes up over time. We've had many of those events from things in 1929 to what happened in 2001, unfortunately, to what happened in the war in Ukraine and all those events we've had. And the market just keeps on going higher and higher and higher. The people that bought the dip got rewarded by the people that chickened out and were trying to time the market were not able to get back in. And that's one reason why a lot of bearish channels, they bearish all the time they get a lot of views because a lot of people couldn't get back in from previous pullbacks. They were trying to time the market. So if you stuck along and you bought the dip along the way, you did really, really well. And this time is not different. Now, what's really important about what's happening is the fact that the 10-year yield is getting bought up like crazy. It went from 5.4% to 4.9%. So investors are buying up yields. Now, that's telling me that the bond market initially sold off to the 10-year and a lot of yields went up because we were pricing in some uncertainty. We were pricing in potentially higher inflation. We were pricing in a tight or spread. The stock market wasn't pricing it in. Now, yields are selling off like crazy because it was, you know, sell the rumor by the fact. Now, the stock market is pricing it in. I think we are nearing the end of this pricing in the stock market and then the stock market will eventually get bought again. But this is really good for stocks because as investors pile into bonds, the yield goes down. As the yield goes down, there's less competition on the valuation of the S&P 500 and the valuation of a lot of stocks, which would in fact make a lot of stocks more attractive. Now, what's really crazy to me is how much people are upset that the market is going down. People are a little bit scared. They're just really bad sentiment in general. But a lot of you guys should realize how lucky you are to be able to buy some best companies in the world just because of some war in the Middle East or whatever. That's not going to, this is crazy. It's not like because of something that's happening in the United States is nothing that's systemic. This is not a financial crisis. Because of some war that's happening somewhere else, you're getting to buy companies like AVGO at 18 times earnings. The stock was trading at 45 times. Inveria trading at 17 times earnings. Meta is trading at 19 times earnings. Google is starting to sell off. I'm looking into Google. There's so many amazing companies selling off. You're getting to buy them because of something that's not related to Google. Google is going to be here one year from now, two years, five years, 20 years. It's going to keep growing, keep on getting better, keep on executing. YouTube is going to be here. YouTube has nothing, it's not affected by the war in Iran or whatever it is. So, but you're getting to buy the stock at much lower prices. So, this is how you guys should be thinking about it. You should be happy that we're having this sell off even though it hurts. But this is the best time to be buying is when it's not easy to buy something because you feel there's some pain. Other people feel pain as well. But this is why it's so rewarding. It's not rewarding to buy whenever things are going up and you feel great, you wake up, your stocks are up. It's the best opportunities when you're feeling pain, you're feeling doubt, you're feeling that something could go wrong or that you're just like this sell off is never going to end. I don't even want to look at my portfolio. That's actually one of the best signs that you're likely buying at the right time or buying some really good valuations. But in terms of the Fed decision for October, they're expected to maintain rates. There's a 94% chance that the Fed will maintain rates. That was very surprising to me. But a lot of people say that the bond market did the tightening for the Fed and a lot of it pretty much got done without the Fed having to raise further. Now, if that's the case, it could be extremely bullish for the stock market. And if you want to take the opposite side of the bet, 25 basis point hike, this is a payoff is pretty big. And you can check out my link down in the description. In terms of the market in general, I'm personally not seeing this as some kind of a start or a major market crash, major sell off, major whatever. I told you guys, if we break this support and make a lower low, which we did, the most likely setup is we retest this support that we had from 2025 market crash bottom. We had it also in 2026 bottom. We could potentially hit it again, 2018 style. Maybe it's happening again. 661, this is the most likely outcome in this case, which is only 5% from here, 5.8%. That's really nothing, guys. I mean, just if two or three more days like that, then we'll be over with that. But for me personally, I'm really doubtful that they're going to be attacking Iran again. I'm not a geopolitical expert. I don't talk about geopolitics, but the odds are not in our favor. There's a 70% chance on the betting markets of the opposite party having a sweep. And I don't know how attacking more before the midterms would help in any way, shape, or form. So I think that's mainly being done as, you could say, negotiating leverage, if I had to guess. Maybe it's going to work. Maybe it's not going to work. But I would be really shocked if they actually do something before the midterms. But I'm not a geopolitical expert. I don't talk about that. I don't mention it too much. But in terms of opportunities, there's a lot of them. I'm watching Google, watching a few other stocks. And that's all I wanted to say, just, you know, say some positive things. I don't think this is the start of a major crash. I think we're nearing the end. Few percent left. It's really nothing. Anyone can take that. This is not March 2020 or a 50% crash. I think we're nearing the end. Good valuations, great stocks, great opportunities. And the sentiment is bad. This is the best step to be buying is when the sentiment is bad. Not when everyone is happy and all your friends are getting rich and everyone's getting rich. It's, in fact, the opposite. So that was my opinion on the markets. Hope you enjoyed it. It was not financial advice. If you'd enjoy it, please press the like button and maybe consider subscribing. So I'll talk to you in another video.