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WHY THE STOCK MARKET COULD BOTTOM:
FIRST: The FED has begun to reduce their balance sheet.
This leads to what’s known as a “balance sheet runoff,” where the Federal Reserve begins to SELL their portfolio onto the open market, and REMOVE the money they receive from previously issued loans.
SECOND: Higher interest rates
SP500 returns have shown to be 3x LOWER in a rising interest rate environment…not to mention, there’s also data that suggests that we’re about to see an upcoming decade of subpar returns…only because we’ve experienced SO MUCH GROWTH, already…and, that should be considered.
THIRD: Tech Sector seeing largest job cuts since 2020.
This is often being referred to as a new “Pandemic Reset,” while companies re-evaluate future demand, cut costs, and adapt to an environment that isn’t flush with stimulus checks and low interest rates…. that, in turn, has the power to pull down the market alongside with it.
FOURTH: Stagflation concerns
“Stagflation” is a term that refers to a time when growth is slowing, unemployment is rising, and inflation continues to increase.
WHY THE STOCK MARKET COULD INCREASE:
FIRST: One analyses shows why the SP500 could be FAIRLY VALUED.
This chart shows the stock market’s value in relation to interest rates…and, as you can see…we’re trading right around NORMAL.
https://www.currentmarketvaluation.com/models/10y-interest-rates.php
SECOND: inflation may actually have started to decline.
A new report shows that monthly core inflation came in around 4% annually, down from 6% in the three months before it.
THIRD: Ending lockdowns after months
The expectation is that this should lead to SOME level of normalcy overseas…and that, in turn, will aid the economy, worldwide.
FOURTH: Rising Inventory.
It was reported that: “Inventory levels are high, as companies chased as much merchandise as possible to support demand, which has now slowed. Ultimately, markdowns and promotions are starting to pick up.” This should – HOPEFULLY – curtail at least SOME of the rising inflation numbers, which MIGHT lead the Federal Reserve to slow their rate hikes…allowing the stock market to pick back up.
FIFTH: Many segments of the market have ALREADY dropped – from peak to low – up to 90% at the worst, which wasn’t an insignificant drop, by any means.
Now, that’s not to say that things can fall EVEN MORE…but, this COULD be a realistic sign that valuations are beginning to approach a level that’s MORE in line with what the market can reasonably support.
SIXTH: It seems as though there’s a LOT of pessimism out there that the markets WILL go down, and it WILL get way worse…and that almost makes me think that, if the majority of people BELIEVE that…then, it’s less likely to happen?
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Put your money in big corporations; Its the only thing that can save us
I’m going to keep buying stocks and wait for the stock market go up. I’ll buy the bargains.
Just buying more stocks.
Yes Graham is right. It is a turning point in our markets. Sell your real estate and take the profits now while you can. Also sell your stock portfolio now. Hold your cash and enter the stock market afterwards. I created a video series on my youtube channel. Doctor Hedge Fund.
OMG YOUR EDITOR IS SO GOOD…
3:00 vamos Pickachu
What about China plans for expansion into Taiwan?
I have placed a 700$ short with x5 leverage for tomorrow on CoinBase, i do think we will hear bad news regarding inflation
Love these young finance guy’s on YT, and i get they’re all friends & all but man its like the same channel with different voices between him and meet kevin and AJ. Just pick one & watch their content. The others have the same stuff… literally.
1:40 he meant quantitativr tightening.
At 1:39-1:40 I think he meant tightening, not easing
I’m new to stocks. I Would like to know how to find a good stock to buy?
Me too, I’m just about to start out. I’m going to start out with reliable stocks like bank stocks and well known companies. I’ll learn as I go. I’m looking to earn dividends.
American Eagle Company. Currently at $12ish. Solid fundamentals and pays a dividend.
Buy companies with FUTURE Growth prospects…
Graham we’re getting a bit tired of your Pouty faced Thumbnails. Now is time for change. And btw, we get it, you got yours, so now discourage people from getting theirs. So we can keep feeding your youtube channel that makes you millions per month while we remain bottom feeders for people like you.
Eeeeeeveryone back in November was 100% sure that bitcoin was going to break 100k…
Title: STOP BUYING STOCKS
10:46 – “You’re best off buying every single week”
The clickbait titles have got out of hand on this channel. Still one of my favorite channels but super disappointing to see the direction it has been heading.
👌🏾
I agree
I agree it’s ridiculous. It seems he clearly doesn’t care about his viewers but rather the money he gets from the YouTube views or however it works to earn $ through YouTube.
If you are buying anything but AMC and GME you are a efing Furry
Do you get a single piece of info out of this guy 😂😂. That’s why he is so smart.
I love that you had Dave Ramsey as borrower!! 😆😆😆
Best time to buy stocks…
editor is not that good if he picked the wrong scene from batman
We have a LONG way down to go.
Omg your editor is so goooood:)
Love that you made Dave Ramsey the borrower. lol.
Making YouTube videos is the best hedge against Inflation 😅
Correct me if I’m wrong but the Fed running off their balance sheet does not exactly mean “selling bonds”. They are simply allowing current bonds to mature and then not reinvesting/buying new bonds. They are not “selling” anything, but by not BUYING new bonds, they are decreasing cash flows into the market/economy.
only old money makes money, , its big fish eats little fish since the beginning
I already hate this ftx, every channel in youtube advertising it
wait until the stock rebounds ? I think it is the time to buy more…
Best investment in america right now is buying tax liens in rural areas. You can get the deeds for multiple acres of land for pennies on the dollar. 5acre tax lien payed $250 the land is worth +10k. If the property owner pays back the taxes on the lien before you get the deed. You get your money back plus interest. You are welcome.
These people make more money off YouTube with their click bait titles than they do off stocks. Don’t fall for the bait!!!!
your thumbnails are depressed
OMG YOUR EDITOR IS SO GOOOOOD
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As an investor, it hurts seeing your portfolio down if you invested unwisely.
May take a long time, but good stocks always recover! Keep DCAing everyone and good things will come!
Isn’t this the opposite of what you want to do? If the idea is buy low sell high don’t you want to buy in at the bottom?
@The Self Made Collective finance and the stock side of YouTube literally makes no sense right now
Well buying stocks should be for the LONG TERM anyway. Yes it may take few months or even years for stocks to recover but this is probably the best time to buy them when it’s low. Most companies have recovered even after wars, the dot-com crash and covid so I don’t see why it wouldn’t recover eventually.
(P.S- Love this channel but their titles are a bit misleading and click bait lately. Can do better)
My sca
If the market is about to bottom why would I stop buying equities?
It’s Bogdanoff
I truely believe we are in a recession right now, because remember, you have to take the newly printed money into account. You see inflation, but really the prices are actually lower in comparison to the old money supply. People are investing less as stock prices drop. All signs of a recession. Buy the dip, and see you in the future!
agree with you there
OMG UR EDITOR IS SO GOOOOD!
Finally, you said what’s guys, it’s graham here and not the opposite 🙂
LOL on the Dave Ramsey taking on a loan, too funny
Let’s hope for a real crash and prices drop 90% it would be fun to see this happen and all the crying it would create.
you know how u always say “ugh i wish i had money to buy the stocks in 08 crash or 20 crash”… well here is your time!
Stop doing what these people do if you believe in what you invest do it !!!!
why do u sound like an anime character
Graham legend
A crash is sudden…nothing sudden about the slow but steady decline. People waoting for the 10-20% true crash are going to be disappointed
If Cramer said S&P is going up you know we’re all about to head into the Great Depression
it’s actually not 80%. That article messed up. They changed the definition of the M1 money supply in May of 2020 – check it out.
Watching this and seeing the title, I remember why I stopped watching this channel.
this dumbass been saying to buy at the top. 480 spy now 390 and will eventually be 290
If its bottom. Wouldn’t I want to buy?
Don’t we want to buy more stocks.. as the market reaches the bottom?
exactly! hence my thoughts at the end!
@Graham Stephan Thanks Graham! I definitely jumped the gun on this one before finishing the video! I appreciate your content!
It seems like a recession is being induced.
If this is the case, SPY got at least another 20% downside.
Crash the market to slow inflation
@Fishn Giggles crash the markets to slow Russia and China. Just like the 1980s when interest rate went to 20%.
Judging by what happened today, GOOD CALL
Fed need 100 basis points immediately to slam the brakes on this non-sense! Enough already
I hope every woke lib goes bankrupt and loses everything!
DRILL BABY DRILL OIL PRICE MUST COME DOWN !
HEY, why arnt you talking about that lost tortoise instead of the end of the financial world and all investments , you got to get your priorities right!!!!
If you don’t take proofs they will turn I to loses in a matter of days.
They knew exactly that printing money would cause inflation. That was the goal, to inflate the dollar (deflate the debt) and screw taxpayers as usual. They know the average America is too stupid to understand what’s going on outside of Netflix, Hulu, etc.
Hey Graham,
I think you should transcribe your videos so that you will be ranked better on YouTube and recommended to other viewers. I’m a professional audio transcriber I can help you with that. Looking forward to working with you.
@Pìnned by Graham Stephán • I was talking to the real Graham not u scammer.
Maybe a recession until 2025. Bitcoin extends a lighthouse of trendlines from 2017/18 ATH. And 2021 ATH extends a lighthouse toward 3k in 2023. The major bull rally won’t happen until 2024/25 where it may aim for the Mi 200k in the Do Re Mi (20k 70k 200k) music sheet it’s playing on.
Right now Bitcoin is on the Do support line that extends from 2017/18 ATH to it current price area. The next available major trend line is at 3k right now that extends from 2017/18 ATH.
I also believe that 23rd February 2026 or thereabouts is an important point of convergence at 10k-12k for every previous bull cycle; you can draw trend lines from important tops and bottoms in the log scale Bitcoin index chart 2010-2022.
I have a hypothesis that there is a plan to stabilise Bitcoin at 12k area long term.
Talk about a rotten system!!! Criminal carry on. Finally the money ran out!
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Should I still buy ethereum it’s at 1500 per coin that’s the lowest it’s been in a long while
Lesson to you guys, don’t get your advice from these influencers lol.
Where are these losns snd available?
thanks
Its funny how FTX is sponsoring tons of videos about the current financial market situation, most of them saying its the best time to invest
Thanks for your insights Graham.
Thanks Graham! It’s going to be an interesting few weeks 🙉
would the fed ever have to reduce their balance sheet if they never printed more money? If not then why the hell do they do it
3:28 You can’t just say they dump the money in a fire so it’s no longer in circulation and then brush it off without saying exactly what they do to keep it out of circulation.
Wonder how much this guy received in pandemic payroll protection money?
did he just mention that fool jim cramer???
*tightening (not easing…so much for that GOOOOOOD editor :P)
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Just bought more Amc and GameStop. When the market crashes we will all become millionaires. Hedgies will get liquidated and margin called. They’ve already lost a fortune on their longs and even with their puts it’s nowhere good enough. They’ve also lost their Russian investments and their Chinese investments can no longer be used as collateral thanks fo bidens executive order.
Thanks my guy🙏
When it comes to investing, diversification is key, that’s why I engage in sectors based on projected growth. There’s no shortcut to getting rich, but there are smart ways to go about it
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I just buy the portfolio i made a few months ago and keep buying as long as i can.
Stocks are intended as a long term investment you buy stocks you should get dividends. Well how people use it now as is you buy stocks like casino chips you bet if it will go up but wait what about dividends well most companies do give them anymore so you might as well go to a slot machine. Gamestop is the perfect example of stock manipulation Gamestop has been slowly falling and yet becouse a bunch of people buy it it has value lol 😆. No it’s like the 1920s crash the stocks were manipulated then too. Ahh how the uneducated forget and are doomed to repeat the past.
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Your were right ☠️
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Mrs Stella Allen, she charge a 15% commission on profit made after every trading session which is fair compare to the effort she put in to make huge profit…
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Graham id like to say that youre wrong on your final point of market sentiment. Numbers show that u.s hedgefund outflows are still at low numbers , which means people have not sold what is dearest to them yet.
Buy the dip!!!
You know we’re in a bear market when Graham stops saying “what’s up you Graham, its guys here!” in the intro.
I think he meant to say quantitative tightening instead of “easing” at 1:40…
The market didn’t crash, are you making “Kevin” type videos now
These layoffs aren’t a big deal, they’re just slowing down their plandemic tech growth, it’s all the companies that did well during the plandemic, expected
This is just what I needed, advice from a 12 year old boy who speaks with lots of energy!
10:00 can someone explain this to me? why wouldnt people sell if they were anticipating the market to crash later?
Never try to time the market. Buy and hold and then if it goes down buy and hold more. Eventually it always goes back up….so far
Is it smart to invest even more during a recession? Obviously assuming you have savings built up in case of job loss/emergencies. But logically in my mind, a recession would mean lower stock prices, meaning if you bought in a lot during a recession, as soon as the market went back up to normal and eventually started growing again, you’d make a ton. Is my logic flawed in any way?