Why The Stock Market JUST Dropped

Here is what’s happening in the stock market today, how to invest moving forward, and everything else you need to know to build wealth and retire early. Enjoy! Add me on Instagram: GPStephan

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First, in terms of WHY the market is going down – here’s what’s coming into play, all at the same time: DEEP DOWN – what all investors DON’T like – in ANY MARKET – is uncertainty. Investors don’t know how policies might change over the next few years – they don’t know how tax rates might affect them – they don’t know how to base their future projections – and because of that, most investors and analysts get a little more cautious and play it a LITTLE SAFER in case things don’t turn out as they expect.

LPL research in September here:

Historic August Opens Door To Worst Month Of The Year


https://www.thebalance.com/presidential-elections-and-stock-market-returns-2388526

And also – this is probably the most relevant for a LOT of people watching – especially in terms of how NOT to lose money – and that all has to do with one word: DEBT.

Yahoo recently reported that 43% of retail traders are now trading with leverage…if we break that down further, 23% are trading JUST using options, and 10% are JUST using margin…signaling that MAYBE we’re in the middle of an “options boom.”
https://finance.yahoo.com/news/43-of-retail-investors-are-trading-with-leverage-survey-172744302.html

In the last YEAR, options trading has increased in popularity by 45%…and when we look back historically, we can see that options trading increased in volume over the last 12 months, and began their slow trickle upwards once Robinhood was introduced, and then once brokerages began offering free stock trading.
https://www.ft.com/content/b330e091-2a59-4527-b958-9213731a526c

That could explain some of the volatility in today’s market – Goldman Sachs estimated that now, 20% of all SP500 options traded in the second quarter had a maturity of less than 24 hours, up from 5% in 2011-2016…that means, people are leveraging their money 100x with short term, speculative bets on where the stock market is going to be headed in a 24 hour period.
https://www.ft.com/content/b330e091-2a59-4527-b958-9213731a526c

That leads to the notion that, POSSIBLY – tech options trading has influenced the entire market to rise up abnormally fast, and then plunge rather quickly as options traders bought up – and then SOLD their holdings.

Anyway, I also think this would be a CRITICAL warning to any new investors out there to preferably NOT use leverage when buying stocks…the fact that 43% of traders are using some margin or trading options is rather concerning, and I guarantee this can’t end well and it’s only a matter of time until the tables turn and people lose a LOT of money.

So, yeah – I mean, obviously, you know I’m just going to say the same “buy and hold!” that I’ve been repeating for YEARS nonstop, even while the stock market was dropping 40%….if you’ve watched more than a few of my videos by now, this isn’t any surprise. But, I do want to use this as a time to caution you that you SHOULD be prepared for more volatility over the coming few months, you should understand how options trading is going to magnify these swings both positive and negative, and you should MAKE SURE you don’t trade on margin or trade options UNLESS you really know what you’re doing, or you have money that you can afford to lose.

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.

114 thoughts on “Why The Stock Market JUST Dropped

  1. Fribit LoveLoad Reply

    I like my stocks how I like my chips , with a lot of DIP

  2. JJ Ricci Reply

    Am I the only one who heard the intro

  3. 30slak Reply

    ok so if options leverage your money, and if the yearly expected return is positive wouldnt it make sense to get year long options? since like always you loose some you win some but the sum is positive. So instead of gaining 1 positive you leverage it and now you’ve gotten 100 positive? ofc you shouldnt just juice your entire net into one year since if it marked goes down you’re out but lets say a % of your total portfolio

  4. Armando Reply

    wsb is manipulating the market!

  5. soshityo Reply

    I enjoy your videos, so thank you. But why are there so many ads (more than other channels)..?

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  16. Bounty6Gulf Reply

    What do you think about mining companies? More in particular with the shortage and demand for cooper? Do you think theres any room for a play on any or any new and small up comer companies

  17. Josh R Reply

    Man, I hope they don’t put more restrictions on option trading. In this high volatility market that at least “feels” overvalued, I love selling covered puts to the robinhood gamblers. If they disappear from the market and I can only sell my puts to people actually using them as intended to insure their investments there’s going to be a lot less demand for the puts I’m selling.

  18. Ice Cream Reply

    Shoeshine boy Graham Stephen a “stocks expert” now? 🤔🤔🤔

    This is the top

  19. Jak Żyć w Stanach Reply

    “What’s up Graham it’s guys you here” 😆 I just love when you put those in your video 🙂

  20. ROB.T. Reply

    Option margins don’t work as described in the video.

  21. PhactsUnknown forju Reply

    Dont miss out on the rocket… CleanSpark CLSK is such an undervalued stock that many have missed it but when it is announced it will explode. They are now teaming up with tesla … hint. Hint. Hint;)

  22. Mendenhall 84 Reply

    So Graham if I can save $300-500 a week for 3-5 years what do you feel would be my best way it save and invest it? I am also a ghost to the credit world witch I am working on. What would your advice be? Thanks.

  23. Cryptic Virgo Reply

    Invest in Tesla?

  24. Brandon Caton Reply

    So, although this 100 multiplier you say is happening it’s not true. At lest with the fundamentals of Greeks. I mean a stock worth 26 a share let’s say $BAC a 25.50 contract will be let’s say .60 shares and 1 contract is 100 ensures shares. Sooo $60 for 1 contract BUT the price of the contract shares are based off of movements within the stock through a dollar mark and percentage. Yes it makes the market more volatile no it isn’t gambling.

  25. chelolipoptart Reply

    Thanks Graham! This market drop rattled me, but I guess I can put my pitchfork and torch away (for now)

  26. Mhan L Reply

    WHAT SHOULD WE BUY ? NO ONE IS ANSWERING THIS QUESTION. LETS HELP EACHOTHER

  27. KC Reply

    troll are me you? whats up graham its me here, whats up graham its me here, whats up graham its me here, whats up graham its me here

  28. Aisha Faraj Reply

    Investing in the FX and stock market is very lucrative when you do it the right way. Though I learned about it the hard way it cost me a couple thousands but it has been worth it, Ever since I started investing with Mr Hovik Morte I only see possibilities his amazing ideas and strategies has taught me a lot and made a lot of money for me. I started with 4000$ and now I can brag about 2 businesses and a more comfortable life it’s all thanks to Mr Hovik Morte.
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    • Money Money Reply

      It’s been series of losses on my end I’ve lost more money than I anticipated I’m afraid I might go broke before I can start profiting from the market but I’d love to invest under the proper guidance of a professional I already contacted him via the email you left up there his the kind of broker I’d love to work with.

  29. Bigtruckseriesreview Motorsports Reply

    SARS in 2020

    People trying to hide their money from the IRS

  30. Kevin Chen Reply

    Lol. That intro was funny. 😂

  31. iEuno1 Reply

    ty – 1 second ago, at 6:37 PM New York time.

  32. Susan An Hoang Reply

    Nice video, Loved the way you broke it down.
    Investing in stocks can serve as a means of earning much profitable passive income, weekly or monthly, provided you have a PRO Stock Broker or an investment adviser that provides you with trading signals and expertise trading strategies. I’m glad it worked for me with the help of a stock broker, i recently added my $472k profits to my portfolio

    • Sess Ella Ngo Reply

      Apart from being street wise and familiar with the market, nothing beat engaging an expert in any trade.

    • Jess Katherine Reply

      Can you list out some stock or investment you invested on ?
      I’m trying to find one who i can go a long way with. If you don’t mind put me in the right direction

    • Susan An Hoang Reply

      @Jess Katherine I can say it’s safe to invest in an ETF that track the S&P500 and ride it out.

    • Susan An Hoang Reply

      Check out JULIANA GUNAWAN LEE on web, she is very popular. An investment adviser with proper trading signals. I came across her on CNBC interview. I put $160k into some growth stock and some of my returns are TSLA,NYSE,DOWJ and more.

    • Jason Milley Reply

      @Susan An Hoang Thanks

  33. Brice Scanlon Reply

    Graham while your mantra is buy and hold you should start a trading series

  34. gb Reply

    This might be a stupid question but I’m binging a lot of graham’s videos and I’m wondering if ethical investing is possible/worth it financially? Anyone have experience with socially responsible funds they’re willing to share? s&p 500 would obviously not be the way to go? plz and thanks

  35. Akki Kishore Reply

    Awesome intro, I missed it at first lmao.

  36. Sven Reply

    So we gonna sit here and not mention Softbank’s 1 billion dollar options bets on the open market?

  37. Michael Risi Reply

    The comment predictions are so good

  38. Luiz Martinez Reply

    Stocks are good but this is still a good time to invest in Gold and Crypto 💸

    • Richard Wilson Reply

      How do I start trading with Mrs Wadecarey?

    • Alexis Kate Reply

      +1 6 0 4 3 5 9 7 7 9 3

    • Alexis Kate Reply

      👆👆
      Text her on What’s app

    • Şükrü dë Lêêde Reply

      I’ve got 12th winning thanks to Mrs Wadecarey, she’s really the best, I’ve made £16,400 in 18 days working with her

    • Richard Wilson Reply

      @Alexis Kate Thanks , placing my trade with expert Wadecarey ASAP

  39. Nick Didominicus Reply

    Enjoy your site, I have been in the business for 25 years. You should be concerned about the options trading, having been a Series 4 options principal I feel many brokerage firms are looking at the bottom line instead of making sure the client is qualified. That is how the real estate bubble burst. Keep up the good work
    Nick

  40. imprintaftah Reply

    End of days 2030-2037

  41. MONEY AND TIME Reply

    I suspect there will be more ‘corrections’ in the market due to second wave of Covid-19 in many countries all over the world. Europe is beginning to enforce more restrictions, not far from further lockdown if cases continues to increase.

  42. Catherine Lynne Reply

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  43. Catherine Lynne Reply

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  44. Dj Bonanno Reply

    “Dont try to time the market!!” but maaaybe i can lol

  45. violetgirl1996 Reply

    Hi Guys you, how are you todaayyy

  46. Samantha Lillian Reply

    Buy sliver and crypto

    • Mary Susan Reply

      Hey you’re not far from profit,he has taken care of my account for months now..i have 25 wins so far

    • Yuk Klobucar Reply

      My weekly earing from he’s trading strategies are kind of mind blowing 🤑🤑

    • Savannah Gavin Reply

      Good recommendations About Mr David Mark Every where I think I should give him a try..

    • Kate Kate Reply

      I just massageed him on WhatsApp, hope he replies me

    • Pancakes Reply

      David Mark bots imao.

  47. H Petey Reply

    Dang. If I would have known what options trading was… I would have used it when Disney was like $88 back in March. And then never useit again lol. That was the only stock I was sure would go back up.

  48. Rari Reply

    Nice new hair style. Looks very clean and classy

  49. kane harry Reply

    I am really grateful to Mr Robert smith for his help in my trading life, i really benefited greatly from the profit am getting from his trades and with his strategies given to me without any fee, I was once an epitome of losing and I thought Binary & Forex Trading isn’t real and too good to be true, but now am currently earning great profits, and I was finally able to recover all the money that my brokers(s) took from me without allowing me to withdraw all through his help i really thank him for his support and I just have to share it here that all are not the same as we think they are, they are really people who are God fearing and kind to be with, you can contact him via his telegram @robertsmith1994

  50. Robert Yin Reply

    that $1400 can buy so much iced coffee

  51. Beau B Reply

    Dude, Stroke, why do I have a Graham every time start video does?

  52. Admiral Kool Reply

    Graham, last time I had some dude. Pretending to be you, and giving a phone number to buy bitcoin. Just letting you know.

  53. Fffjjd Ccbntf Reply

    I REMORTGAGED MY HOUSE AND WENT ALL IN !!! STOCKS ARE GONNA GO HIGHER!!

  54. DoubleRVA Reply

    Wassup gram it’s guy you here lol

  55. Lady Machiavelli Reply

    Ok, how many times did it take to get that intro?

  56. Option Whisperer Reply

    Stock market selloff is simple. Parabolic requires correction. I love the volatility though. Makes trading fun! For the new person to options trading, my advice is to throw every penny you have into NKLA call options. If you believe this, swallow 100 aspirins or eat some tide pods. To each its own.

  57. Mark Suchlandt Reply

    What’s up Graham it’s Guys here, upside down just like the market !! Keep up the great vids !

  58. Club Cosplay - The Nerds’ Night-Club Reply

    not the Greatest year to pick with the Great Depression following closely after

  59. Young Equity Solutions Reply

    Now matter how many times you say don’t time the market, 99% of people will still try to time the market.

  60. Nala Tsum Reply

    The best intro yet 😂

  61. carlos b Reply

    you really have too start deleting all the comments made from these bots

  62. Robin Smith Reply

    Options trading has obtained a bad name. It was originally created to protect investments. It has been used speculatively and that has its own reward. It works well for those who chose and in price and an out price.

  63. Nixpa Reply

    Ddnt even realize I just watched 11 minutes,, felt like 2. Guess that means it was good

  64. Luke Bao Reply

    is just me or is grahams hair popping off today?

  65. Dominance Logistics Reply

    Lot to learn when it comes to options.

  66. Marcos Valdes Reply

    yo what happened with the stimulus check

  67. GIOVANNI CISNEROS Reply

    Here’s your 2 cents for the day buy VALUE stocks there half the cost from the past 5 years and most still are paying dividends or are going to pay dividends next year. Then forget you bought them and received dividend for I don’t know 10 years an then…..BOOM your a millionaire once your a million you can finally buy a LIKE BUTTON.👍🏼

  68. michael coelho Reply

    Let there be 10 millions dirhams with Michael Coelho now to circulate in Jesus name amen

  69. Kelsey Makes Money Reply

    There seems to be some suspicious activity happening when you SMASH that like button for the YT algorithm.

  70. Jack Snider Reply

    You’re absolutely right about Robinhood users going back to school. I and literally everyone I know here at college is investing

  71. John Bliss Reply

    This video is so informative

    • John Bliss Reply

      For small, retail investors like myself, investing over a period of time with my portfolio manager is more suitable than trading, because trading involves a near constant monitoring of the stocks in which one is trading. There’s no such time to pay for tutorials as I’m still in the process to retire so it’s gonna be till then

  72. M&M Money&Marketing Reply

    RH investors had to go back to school was a metaphor for either there shitty system shutting down that day so lost alot of money or they promoted themselves and got alot of new traders on there platform

  73. Shiet Mang Reply

    BUY $GME

  74. Antonio Pillon Reply

    I knew the r/wallstreetbets psychos were behind all this mess

  75. Bae Mgee Reply

    Normal .

  76. The Self Improvement Addicts Reply

    So…We are Graham n you are guys??? Pretty weird…Also, my reaction was like “What did he just say?!”

  77. nezerpgs Reply

    Hmmm…dont see any spam

  78. K Clack Reply

    Time to learn to short!

  79. SUMANDAK MOLOGIOU Reply

    Pls promote may konten gais hehe,I love you konten

  80. Katrina Millings Reply

    I don’t know why it’s new that banks were helping criminals launder money. They always have. They cracked down on the Swedish banks, so they started using banks in other countries. Nothing new about that at all.

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  82. Christopher Ellis Reply

    Waldemart comes slithering in.

  83. Eric Bishard Reply

    lol Robinhood investors went back to school. Funny, but we all know that they are just not doing their work and trading in class.

  84. Paul Morgan Reply

    Options are starting to look a lot like the tulip market bubble of 1637 in Denmark. Back then people would bet on how many multi-colored tulips would be available and what their price would be. It amounted to gambling in a culture that banned gambling and artificially raised the price of all tulips. Then, when local events prevented people from trading in tulips for awhile, the whole market crashed and the bubble burst.

    If we keep trading in futures on technology there’s going to be a day real where either buyers or sellers withdraw from the market and the artificially inflated value of stocks will plummet. If that happens this year, the economy will likely be elastic enough to handle it. But if this gets any more out of hand then there might not be any option besides another taxpayer funded bail out for wealthy gamblers.

  85. Ludwig Beethoven Reply

    “Need a 100% tax rate on Graham Stephen. Take everything he has, including the coffee.” -Joe Stalin Biden 2020

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  87. Robert Harris Reply

    Crypto is gaining more of the economic ground than stock. Invést in cryptó today, it’s worth more.

  88. OneOf Many Reply

    Funny how people are insanely clueless of what is really going on in the world lol, I cannot imagine what you would all do during an actual war on American soil, oh I know, run and hide with your snowflake Christmas pants calling mommy, open your eyes we are in the start of what caused ww2, we have not seen anything yet just wait

  89. stock kid Reply

    more supply than demand that’s why

  90. stelios scriver Reply

    hi Graham thank you thank you so much for the advice I’ve been following you since 2016 when the market started hitting all time highs and everybody was saying it was due for a correction now the same thing is happening glad I followed your advice and will keep dollar cost averaging just buy and hold that simple the market will keep raising with inflation like it has always has!!!

  91. Anirudh Tippani Reply

    Do a video on ur all time favorite credit cards

  92. 전캐일 Reply

    So i shuld not sell my vanguard sp500 indexfund. Yes?

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  94. Edmond Schwab Reply

    The best thing to guarantee economic certainty is to tell the Congress Critters to get off their Duff on any stimulus. Poop or get off the pot. Stimulus might raise the debt, but uncertainty about stimulus will cost confidence in the market. Without being overtly partisan one-party is interested in helping the American people, the other party is interested in dragging the crisis out as long as possible so it turns their party back into power even though they have been disastrous in every economic downturn they have taken charge in the middle of and caused the pain of economic downturn to be dragged out further. Kind of tells you who needs to be elected in November.

    As far as leverage margins and options go, the last time the sort of thing or anything equivalent to it was a big thing was 91 years ago, and now we remember in history how that ended didn’t end up out of it for 11 years nearly.

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    • Clutch Business Reply

      nice channel

  96. CASMANWHAT Reply

    Sweet haircut 💇‍♂️

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