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Howdy there folks uh welcome into today’s video now first off i i understand i’m talking very quietly but uh yeah if you didn’t know i lost my voice uh friday saturday i couldn’t talk at all yesterday i finally started gaining back my voice so i’m trying to like speak you know fairly quietly because i don’t want to risk losing my voice again so i can get back to
Recording normally and those sorts of things so i apologize this is a really quiet video but uh that’s what we have to deal with okay kind of like this market we have to deal with and i want to kind of give my advice to investors out there in this sort of market as somebody that’s been doing this for a long time because um i understand like people are just have
Been getting devastated and just like when the heck does this end right you know this is my retail trader investor stock list here everything just getting pounded again here today right the only thing that’s been holding up pretty respectably is tesla that’s a popular retail stock right outside of tesla nothing nothing is doing well in this order market that is a
Growth stock an excitement stock a long-term story stock just everything just down down down down down right uh you know if you always want to get a good gauge of how uh you know risk on the market is or risk off always look at the rqtf and here the arc etf today 57 52 is a 52 week low for this which would also be a multi-year low and this is just something that
Just can’t get any momentum right now and the reason being you look at the arc stocks once again outside of tesla all these stocks just continue to get devastated right look at teledoc today five percent down zoom four percent down all these stocks just getting absolutely pummeled these are all kathy woods biggest investments in the arc fund and uh this is just
How it is in in growth stocks in in any of these sorts of stocks right now you just can’t there’s just nowhere to hide outside of pretty much tesla right now right look at even housing stocks all these stocks pretty much hit a new 52-week low here today during a time period where housing is obviously still hot we could be starting to maybe cool but uh it’s just
Amazing to see you know these stocks just continue to hit a new 52-week low after new 52-week low if you look at travel stocks these docks all got leveled again today you just can’t find people to buy travel stocks for despite travel coming back stronger than it’s been in years you can’t find people to buy these sorts of travel stocks right now and the reason
Being is is people either look at it one of two ways right now right they think okay um what happens if rona comes back strong again in the winter time maybe travel gets hit again right that’s a thought process the second thought process is what if we go into recession how’s travel going to do in that sort of environment and so right now even though travel seems
To be i think we’re gonna have a great travel summer it doesn’t matter you know these sorts of stocks just can’t get out of their own way in a risk off market no one wants part of travel stocks and a risk off market at the at the moment right so there’s just devastation going on everywhere right now kind of my advice i have some you know strong advice in in terms
Of somebody that’s been doing this for a long time in my opinion on this okay first thing you got to remember is short-term stock price does not mean the company is doing great it also doesn’t mean the company’s doing doing horrible okay you’re gonna see we’re gonna go through these moments in time where a stock price are just getting hit time and time and time
Again does not mean the company is a trash company it doesn’t mean they’re done they have no future their stock price is never going to be uh up to what it used to be the stock price is never going to rise again in in a down drafting market right in which the russell right now is uh pretty darn close to bear market again nasdaq’s getting very close to bear market
Again when you’re going through that sort of market it’s very easy to kind of get into this doomsday scenario where stocks are going to be devastated forever they’re never going to do good they’re never going to go up all you’re going to do is lose money if you keep putting money into these stocks if you buy the dip you’re just going to lose money and things like
That right and it kind of becomes like a self-fulfilling prophecy when you are buying the dip and every time you buy that dip right your your money goes down it’s like oh i put a thousand dollars in that stock last week now this thousands already down to 950 it’s down to 900 now it’s worth 800 right and when you kind of have that that going on it’s very easy to
Get trapped into this brain cycle of like i put money in these stocks and it never goes up it only goes down right and you just gotta completely diverge that just because the stock price is going down or up in the short term doesn’t mean that companies crash for the company’s horrible that’s the mark that’s the way the market’s perceiving the market at a particular
Time and if the market wants to go risk on guess what growth stocks are going to fly to the moon but this we’re in the furthest thing i’ve ever seen from a risk on market the furthest thing no one wants to take any risk in this market other than march of 2020 when we’re hitting the the ronald lowes outside of that time period i’ve never seen a market this vicious
With risk off and that includes even in the december 2018 time period which the indexes got hit more heavily during that time period in december 2018 but the interesting thing is i’ve never seen this much of a risk off from growth stocks that we’re going through right now okay that’s not going to last forever i promise you that that’s not the way the stock market
Works it’s just the way the stock market’s working in the short term okay now i pulled up i’ve actually posted all these screenshots a couple days ago in the discord chat inside the private stock group okay so in the private stock group i posted all these it’s a six month chart of these different companies paypal 61 down it’s actually more than 61 percent in the
Past six months did paypal magically become a trash company a garbage stock no not at all it’s just gone through a really tough cycle in terms of the stock price the company’s fundamentals have never been better the company’s fundamentals will be the best they’ve ever been in 2022 they’ll be even better in 2023 and even better in 2024 but that has nothing to do with
The short-term stock price and how the market is valuing a stock like paypal right now so the stock is down 61 plus in the past six months look at a stock like shopify did shopify magically become a trash company in the past six months are they doomed is their stock price never going to go up again no that’s not the way this works but shopify stock is down around
60 percent in the past six months look at a stock like netflix the stock is down 46 plus in the past six months did everybody suddenly stop watching netflix is netflix doomed are they going out of business no nothing like that is happening but the stock price has been cut in half basically in the past six months that’s the sort of market we’re in right now adobe
Stock adobe one of the greatest business models ever created in the history of mankind that i’ve ever seen this talks down thirty percent plus in the past six months is adobe doomed no they’re not they’re but their stock price really looks like it’s doomed meta one of the other greatest business models i’ve ever seen in the creation of mankind down 35 percent in
The past six months six months is facebook doomed is no one going to use facebook instagram whatsapp everything advertise on there oculus all those sorts of things no of course not they’re not doomed they will have much brighter days and much days where the stock price is much higher than this today but that’s the way that stock is valued today okay and so don’t
Don’t you know get your mind confused with short-term stock price means the company’s done and is doomed is never going up again it’s not the way this works at all okay i saw this recently somebody in the private stock group discord chat had posted this other day by the way if you ever want to check that out check out a link in the description down there uh gary
Vee posted this okay and he was talking about essentially like uh people on tick tock or other social medias that want to try to get i don’t know famous or like a brand known or they have a company they want to try to get known in their own personal brand whatever right and he’s you know talking about success right people expect their fifth tick tock to get them
One million followers in a day and um you know what is true in business is it true also in investing right because they can go hand in hand and people want to like have some magic huge success right off the bat and don’t want to give it any time and you know you see stocks like this all the time where they go through these time periods where i’ve never seen a
Stock just go up in a straight line all the biggest companies in the world i don’t care if we’re talking microsoft amazon apple tesla uh you know google all those stocks i’ve seen them fall 20 30 40 50 plus in a matter of months all them and sometimes in several different time periods where they have these big up cycles and massive down cycles right and that’s
Even the greatest of the great companies have gone through that right so if you think you know the smaller companies can’t go through that as well of course they’re going to go through that in the you’re just going to focus on the long term when it comes these things the next three to five years because if you give up like you know like so many people do you’re
Never gonna make it you’re not built for this you’re not built for investing you’re not built for the stock market you’re not built for business if you’re trying to just have you don’t think it’s all gonna be magical in the short term it’s not the way it works it’s not the way the business works that’s not the way investing works okay and if you get lucky and you
Happen to hit right off the bat believe me uh that’s probably not going to last and that that’s uh you know you just got lucky that’s the way it goes okay most people that succeed in investing 99.9 of people that succeed in business and investing aren’t an overnight success it takes time to build that okay next thing i saw this posted recently i absolutely love
This one i think luke posted this one in the the private stock groups discord chat bear markets transfer wealth this is a hundred percent true it transfers wealth from the the short-term pessimist to a long-term optimist it’s what it does every single time where you get the the pessimistic folks that are just you know just are doomed right and they just caught into
The negativity cycle and they want the pain to end so they sell out of their stocks and many times when those stocks are down 40 50 60 70 80 percent and so they sell with a massive loss now every time those stocks are being sold obviously there’s somebody on the other side that’s buying those shares right and the long-term optimists are the ones buying those shares
And i even remember you know tesla stock how many people you know went through very very tough times with tesla stock where the stock price went down and it was caught into massive negativity cycles and every time those folks you know that were began to become pessimistic on tesla selling those shares to folks that were a long-term optimist right and obviously
That’s just a that’s a crazy example of one that you know man those people really regret selling those shares because imagine all those shares being sold over that time to these folks right these folks became millionaires and multi-millionaires and these folks probably just very very jaded about that whole situation right now there’s a lot of other examples of
Stocks that will 2x 3x 4x 5x over the coming years right maybe they won’t do a test so they won’t do a 2 000 plus gain in a matter of few years but they’ll double up they’ll triple up they’ll quadruple up their stock price over the next five years and unfortunately these folks 20 in 2022 are selling out at that you know insanely low pricing stock you know prices
That even bears and bulls could never imagine some of these stocks going to and long-term optimists are just going to continue to pick up these shares and pick up these shares and um you know some of these companies are going to go on to be valued the way they deserve to be valued over the long term right and uh this whole negativity cycle we’re in at the moment
Will end up coming to an end and the long-term optimists will win as they always do isn’t that interesting they always end up winning every single time right now next message you know two cents advice i have to give out there i saw something that was posted here uh in in the private stock groups discord chat okay it says uh you know i think five years a long time
To watch your money go down it’s easier to buy a value stock because you can actually put value on it you know when it’s fair value undervalued over value you can confidently know you’re not buying into a falling knife you know company um that’s a scary stock to be invested in is is you know stock that’s a falling knife right and and this was kind of my response
And i said you know that’s not accurate whatsoever in all due respect i’ve been in the market for 14 years and seen countless value stocks become falling knives everything from grocery store chains pharmacy chains to needs based companies cash flow companies profit beast companies etc to think there’s any stock that is safe in becoming a falling knife in the six
To 18 month span is a major mistake and uh i’ve never seen it where you know uh companies can’t fall massively you know pull up a s p 500 and pretty much every single stock you’ll see in the s p 500 went through some time periods where that stock was a massive falling knife a massive falling knife and the stock price got slashed 30 40 50 60 percent in a snap of
A fingers in many of those stocks in s p 500 what you’ll find is it had several time periods didn’t just happen once it happened twice three times four times five times over time where the stock just got absolutely leveled in the short term right and people conveniently forget about that they think like oh no those stocks never go through a tough time or they only
Go up or something like that and it doesn’t work like that at all right i also put this in random fun fact this is actually from warren buffett um of the 30 biggest market cap stocks in the world in 1989 which was the year i was born right zero were in the top 30 30 years later think about that for a moment zero zero those companies so you could have you know it
Could have been 1989 and you’re like i’m putting all my money into the what i feel is the safest stocks the 30 biggest stocks out there right you know over some of those companies did really bad over that time some of those companies did pretty good but it’s very telling that zero of those companies were in s p where we’re excuse me of the of the top 30 companies
Market capitalized 30 years later isn’t that incredible zero i mean conventional wisdom when you would have said maybe like 20 of those stocks would still be top 30 or at least 10 you know you would have thought well at the minimum maybe five zero zero that has got to be the most telling thing ever when when warren buffett put that out there i thought that was
One of the greatest things i i’ve ever seen i posted on my instagram a while back by the way if you haven’t followed me on instagram financial education jeremy there make sure you spell everything right because there’s always accounts that impersonate me on ig all the time okay so you got to spell everything right but isn’t that crazy zero of those companies are
Now in the top 30 biggest companies in the world just crazy right you know i look at this year 2022 and i see a year you know every year in the stock market represents something to me and 2022 to me personally represents the year we’re going to find out who wants to be individual stock pickers spelled that wrong who wants to be individual stock pickers and who’s
Going to give up right that’s what this year kind of represents to me and i’ll give you a real life example from from something um you know as a kid so in my high school it was a high school called mountain ridge back in the day we were really really good at football right and i played football all four years of high school and it was interesting you know going
To that high school and playing football because there was the most respected school in the entire west side of arizona when it came to football back in the day when i was playing right and so every year because you understand like playing football at that school you got definitely preferential treatment from the teachers from students uh you know going to parties
Whatever it was right because you were like a big deal if you were you know a football player at that school right you got a level of respect that other people just didn’t get no one else cared about really any of the other sports but football was a huge deal because we are so good and everybody wants to be part of the winning team right so you know every year
From freshman to junior varsity to varsity right it was interesting at the beginning of the season you’d always have a ton of kids that would um you know basically try to try to play football on the team right and basically essentially from the first week of practice until about week four what you would find is you would lose about 20 to 30 percent of the kids
That wanted to play the football would end up being lost and the reason being is at that school um you know at that back in the day steve bellis ran the program back when i was there and he was a great coach that went on to coach hamilton he kind of moved on schools to even a better school in the east side of the city and won tons of state championships and steve
Bellis had this program where it’s essentially like we never necessarily had the best athletes for the most part at our school but we were going to um we’re going to play more discipline than you we’re going to tackle really well we’re going to block what really well right and so we’re what we ended up doing is usually just kind of destroying teams even if they had
Better athletes you’re still getting like decimated by us because we’re going to be mentally stronger than you and so we would have these grueling practices i don’t even know if they’d be legal today like three hour four hour long practices out in the heat when it’s like a hundred plus degrees right hitting full pads uh sprints after sprints after sprints uh just
Like whatever they would you know bear crawls like 100 yards like whatever they would do to just like mentally push us to the breaking point they would do that right and that’s what we would do right and so what a lot of kids found out is oh my gosh this is a lot harder you know it’s fun to see all those people in the stands like cheering for you and going crazy
And getting that preferential treatment but gosh to go through the pain of what you have to do to get there it’s not worth it and so a lot of people would end up obviously dropping out of the team we’d lose 20 30 whatever the kids uh that that basically from the first week to by week four they’re just like hell with this man it’s not worth it this is too freaking
Hard and so i look at a very similar phenomenon going on the stock market right now where you know in a time period when a lot of money was made in obviously the end of 2020 in the beginning the first half of 2021 a lot of investors made a lot of money that was that time period kind of like the football team where you’re attracting everybody in and everybody’s
Saying wow this looks like a great time right and now 2022 represents the year where we’re going to find out who’s really with us and who’s already dropped out i think a ton of people have already dropped out like i think most people have and i think this is that moment right now we’re going through which is going to push that that last group out and all we’re
Going to have left is kind of the strongest or the strong and uh that’s what will be what emerges essentially because most people just are going to find out they’re not really built for this um this is a this is a different animal and to be an actual real legit stock picker you not only have to put in the work right which most people aren’t willing to put in that
Work list of conference calls re reports all those sorts of things but you’ve got to be willing to go down in positions i don’t care who you are i don’t care you’re going down on positions and you’re going to go down huge sometimes i don’t care if you’re flipping warren buffett i don’t care if you’re ray dalio i don’t care if you’re me i don’t care who you are i
Don’t care how much success you had i don’t care how much work you put in there’s going to be time periods when you go down huge on stocks as an investor right and that’s just the way it is and if you want to get to those gains you got to go through that pain and i think what a lot of folks have just found out is they’re not they’re not meant for that right they
Can’t they can’t do it it’s just not they’re just not mentally there and that’s fine and those folks can they’ll either leave the market or they’ll go to index funds in respect um but for the folks that you know stay there’s going to be a lot of fun to be had okay and let me let me pause this real quick here for those that make it through this sort of market
There’s going to be a lot of parties to go to there’s going to be a lot of touchdowns to be scored it’s going to be a lot of fans to be cheering your name right um but you just got to ask yourself do you want to be willing to to go through this kind of pain here in the short term to get to those long term gains because unless you’re retired tomorrow or something
Like that uh you got 5 10 15 20 years plus to play out like why not put your your money in in the stocks that you believe in the most over the next five ten years right and uh the companies that you think are the most undervalued and so that’s just kind of what i stay focused on that’s my advice to investors out there so obviously not an easy video for me to make
With my voice being all messed up right now but i hope you guys enjoyed anyways thanks so much for joining me and check out links in the description join me on ig and have a great day
Transcribed from video
My Advice to All Stock Market Investors Right Now By Financial Education
