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Hello howdy there folks and welcome in today’s video we’re going to talk about why stocks are absolutely collapsing off a cliff here today yesterday was a funny day it was a rally day and it was almost hilarious on how much of a fake out rally it was right and we saw a lot of stocks just climbing and it’s like it made no sense in certain stocks we’re going to speak
About in this video here today where some of these stocks were going up yesterday it literally made no sense like absolutely no sense and um this market is playing psychological games with everybody right now and we got to talk about the the truth what’s really happening in the economy what’s really happening the companies and what this means for their stock price
Okay first off here we’re talking about tesla so tesla i think everybody sees it horrible day for tesla stock down nine plus percent and um yeah just just absolutely vicious and obviously it’s been kind of a rough year for tesla it’s been a rough uh kind of go at it for tesla right and you see this here today now also there’s another email from elon musk this one’s
Saying tesla’s going to cut about 10 percent of um you know basically they’re salaried employees okay you’re going to cut about 10 now you know this is a huge issue it goes way beyond just tesla to be very very clear about this right it goes way beyond tesla and this is a you know if tesla’s cutting employees um you know ten percent of their salary employees it’s
Not a good look for the overall economy because i can tell you tesla is probably one of the stronger companies out there and um i think also it does show you know this i’ve been reading the tea tree leaves and i’ve been in tesla stock for a long time and i’ve followed elon musk for a long long flip and flapjack in time and i’ve been reading the tea tree leaves
For a while now and i think tussle orders coming in are pretty weak for 23. um you know which are going to be their 23 numbers and i think every every single thing is lining up i you know exactly how i kind of you know am thinking here and um i think we’ll see that play out in 23 and so this is not a good situation obviously for tesla’s numbers in 23 in my opinion
And um just like it’s thing after thing it’s like if it walks like a duck if it quacks like a duck it’s a duck right and you know i’ve just seen countless things here as somebody that’s owned the stock for a long time and followed elon for a long time that’s all adding up and saying tesla orders coming in our week for 23. there’s no doubt in my mind and they’re
Not going to hit the growth rates that analysts expect they’re not going to hit the growth rates that internally tesla expects to hit on a yearly basis they’re not even going to be anywhere close to that for 23. so you know this is just kind of another factor but this goes way beyond that right and i spoke about this couple weeks ago about the layoffs coming and
These sorts of things you know we’re just we’re just in the very first inning when it comes to all this just the very first inning um when it comes to you know what we’ve seen from tesla here you know some layoffs from obviously some of the other big tech companies and things like that not like the huge ones yet we haven’t really heard too much from like apple and
Things like that we’ve heard more about some potential hiring freezes you know this is all going to lead to ultimately in my opinion toward the end of this year and especially in fall time where you’re going to see a lot more layoffs and a lot more job losses and a lot more folks um you know unfortunately it’s good it’s gonna be it’s gonna get worse before it gets
Better when it comes to that whole situation and a lot of people have been caught up into all the job openings and things like that those job openings can very very quickly very very quickly end up turning to not job openings right so it’s very important to understand like you might have needed a worker you know uh three months ago six months ago but now you don’t
Need that work anymore in three months in the future and six months in the future you likely definitely won’t use use it need that worker right shopify is down over 10 percent today the stock’s absolutely getting hammered right shopify is just one of those risk-on plays where if the market wants to go risk on shopify does absolutely great if the market wants to
Go risk off shopify is not that stock right what i will say shopify has an unbelievable great long-term future but this is not the type of stock obviously people want to own in the short term just it’s not that type of stock right as a long-term investor you get pretty good pricing here but you know it is what it is you know meta it was hilarious yesterday this
Stock going up it made no sense with sandberg leaving the company you know like i said in yesterday’s video made no sense at all but wall street’s going to do what wall street wants to do right that’s just the bottom line and they’re going to play these psychological games with everybody and they did they perform one of those psychological games yesterday where
Everybody was expecting that stock to go down after sandberg just says she’s leaving a ceo and then it goes up yesterday up huge it was up like six percent and then today we get the truth right it’s just the uh the games that are played right and the retail trader investor stocks i mean it’s awful you know it’s it’s awful out there today it’s a lot of you know five
Percent moves down seven percent nine percent 10 plus tight moves and the retail trader investor stocks these ones have been hammered they continue to be hammered in any sort of risk off market these these stocks just don’t perform right that’s just the bottom line there no i don’t know if you guys saw winklevoss twins who are in my opinion two of the most important
People in the crypto community they’ve been crypto bulls for a long time now like way before most people even knew what the heck crypto was and way before most people even knew what bitcoin was um those guys have been on this train for a long time and so you know i don’t want to call them like the warren buffets of crypto or something like that but those like if
You’re going to look for you know information guidance things like that you want to look to those guys and you know yesterday those guys came out and they said you know the crypto winter is here they’re laying off part of their staff now and um you know that’s just obviously a concerning thing for the overall financial markets because if crypto winter is here that
Means folks just don’t want to take risk right and if folks don’t want to take risk obviously that’s not good for bitcoin and ethereum and so obviously we’re just kind of in this the situation here where the the whole financial markets don’t want to take risk right now right and it’s kind of giving you a telltale sign that recession is coming because if no one
Wants to take risk in in crypto no one wants to take risk and grow stocks things like that then that just means people don’t have any belief in the next six to 12 months in the financial markets let’s just put it that way so yeah yeah if you do want to buy during this crypto winter make sure you do it with ftx us ftx us has among the cheapest fees out there you’re
Going to find for most crypto exchanges and basically you get free crypto with every single trade over 10 their partner of the channel they have been for a while now use a referral code holy smokes and get up to a hundred dollars in free crypto right now which is pretty darn good to get when it’s uh low right so yeah if you’re looking to like do recurring buys
Like let’s say you don’t want to stress about the price fluctuations of crypto and things like that and you just want to buy twenty dollars a week or something like that um you can easily do so with ftx us so it’s the one i personally use and if you’re looking to do any moves out there make sure you go ahead and take advantage of that that will be pin comment and
Once again use referral code holy smokers already guys next thing up here nearly half of families with kids can no longer food afford enough food five months after child tax care credit ended like you know it’s just not a good luck not a good luck for the economy i mean that’s just no okay no bueno that’s just the bottom line like are you kidding me look at this
Headline you know i saw this uh this was a month or two ago las vegas teacher struggles with homelessness in the southern nevada rental crisis and i’m sure a lot of you guys you know know what’s going on when it comes to rentals you know they’ve skyrocketed most people’s rents have gone up 10 20 30 some 40 right people’s wages have not gone up 10 20 30 40 if an
Average person let’s say is paying 18 percent more in it for their rent right than they did a year ago that person is not making 18 more money on average that’s not that’s not the way this works and so you know average wages maybe are up five percent or so and you know people’s rents have gone absolutely insane and so you understand most people already live paycheck
On paycheck so if people are living paycheck to paycheck and then you got you know your rent increase is 15 20 25 it’s awful right it’s just absolutely awful it’s devastating and ultimately it’s it’s a bad situation now there is some potentially good news here and um that is home prices are starting to come down you’re seeing a lot of price cuts you know places
Like austin texas las vegas uh phoenix you’re seeing price cuts okay and so this is obviously a good thing to see if you’re talking about it’s it’s not a good thing to see if you’re you’re you know bullish on real estate right but it’s a good thing to to see if you’re thinking about like uh people being able to go afford to buy homes right we need affordability
To get to a much better place homes have skyrocketed in price to prices that don’t even make sense in many of these markets they’ve gone up way too much way too fast just way too much way too fast and that was driven by stimulus that was driven by a lot of people not wanting to move right that was driven by assets were increasing in pricing and prices right that
Was driven by the whole you know work from home environment so a lot of people went out and bought new homes because uh you know they needed an extra office or something like that so you had all these things and we are coming off of a strong economy going into rona so you had all these things happen at once and basically it made home prices skyrocket as home prices
Skyrocket guess what else ends up skyrocketing rents end up skyrocketing if rent ends up skyrocketing then it takes money out of people’s pockets at the end of the day right and that’s just obviously not a good situation at all because then those people have less money spent in the economy but price cuts are something that we honestly need to see um to get the
The market in a healthier place now the downside though is the the you know the 30-year is still pretty darn high if you’re getting a 30-year mortgage you know 5.24 you know it’s down a bit from the peak but we’re still pretty darn high and so at the end of the day like homes are still very very unaffordable like even with price cuts even with not quite being a
Record for mortgage rates you know it’s still not a good situation there’s still very much a possibility that by the end of the summer we’re at a six percent to seven percent uh for a 30-year mortgage and if that’s the situation like it’s it’s almost impossible to be bullish on real estate it’s almost impossible especially when people are you know aren’t in a good
Situation look at this okay u.s consumer confidence slips in may amid uh stubborn inflation you know we have consumer confidence that’s not in a good place if consumers aren’t confident okay that obviously leads to not the best economic activity for folks going out there and spending money but if they’re not confident they’re not buying a new house the reason people
Go buy a new house is because they’re confident right and because they can afford it those are two very key things right they have to be able to afford it and you have to be confident in your financial situation i’ve never seen one person ever in my life go by a house who wasn’t confident about their financial future now if people’s confidence is slipping a lot of
People say i’m not gonna buy something right now uh you know i don’t know what my my job situation is i don’t know what my bonus situation is things like that right and people start to question things they’re like uh you know i don’t know about this and so this is obviously um you know a pretty a pretty big issue for the overall economy right now you know you see
This two-thirds of americans live paycheck to paycheck as inflation continues to climb two-thirds of americans so the far and away majority of americans and this isn’t the scariest part we’ll get to the scariest part in just a moment okay but you know when you’re talking about this many people living paycheck to paycheck and you talk about you know inflation being
As high as it is for everything so basically anything you go to buy is substantially more expensive and you’re already living paycheck to paycheck the the only thing you can do at that point is either try to get some sort of government assistance if that’s out there but that might not be out there right or you’re in a situation where essentially um you know you’re
You’re you’re having a cut back there’s bottom line you’re not able to buy the things you used to be able to buy just bottom line it’s one of those two situations right um or you have to try to get a second job third job something like that or try to get another income stream and you know for a lot of the people that watch my channel you guys are super motivated
So you guys might be the type that go out and do that and you know great for you but for most people that’s not um that’s not even a realistic possibility for them like most people don’t want to work 60 hours a week most people don’t want to start site income streams or things like that and so you know for for most uh it’s they cut back it’s just bottom line they
Kept they cut back or they rely on government assistance and that just kind of is what it is right and so this is not a good situation at all but even more worrisome than that a third of rich people now are starting to live paycheck to paycheck are you got to be flipping my flapjacks a third of americans making 250 000 say that if costs are eating up their entire
Salary and their their living paycheck to paycheck are you kidding me you know you know things are out of hand when when people that are making sick money 250 a year are you kidding me or living paycheck to paycheck uh that’s an issue that’s an issue and so you know everybody brushes aside if if people that are the average american makes what 50 60k a year and
People brush aside like if if folks that are making 50 60k are living paycheck to paycheck people like oh that’s just the way it is in america you know people that make fifty thousand a year sixty thousand a year they live paycheck to paycheck but when you start talking about a third of americans making two hundred fifty thousand are living paycheck to paycheck
You know when you talk about the what if if a third of 250s how much of people that are making 150 are living paycheck to paycheck like that’s a good question and you know it was we we did an episode of millennial money i think a week or two ago and i brought up you know i basically stated how do you make it in america or trying to raise a family on 60 000 nowadays
Like i just don’t i it’s almost impossible um to to try to raise a family on 60k you’re like come on that’s just that’s just not even realistic right i mean even a hundred thousand is kind of pushing it and a hundred thousand you know wasn’t that long ago a hundred thousand was seen as like the holy grail like i always remember working at quick trip and just like man
If i could ever make a hundred thousand dollars a year that would be so insane like that would be so amazing and no folks are looking at a hundred thousand and they’re like dude good luck raising a family on a hundred thousand a year and that’s that that’s the economy we’re in now right where even these sorts of numbers that we used to look at as goals and pillars
Are just kind of like nah man that ain’t cutting it anymore 100k a year that’s like you know the old 50k a year now and um yeah so that’s just unfortunate and you know the companies with their earnings they’re not going to have the money to pay out to to do huge uh you know basically raises and things like that or most of them won’t that’s just bottom line there
Okay now to add insult to injury gas prices continue to climb to now records records highest ever for regular gas highest ever for diesel now today literally today is the highest in the history of the united states of america okay the current average is four dollars and 76 cents for regular and that’s across the entire united states right it’s across the entire
United states diesel right now is 558. it was three dollars on in 18 cents uh you know a year ago at this time 558 and so you know trucking is in a bad place i don’t know you guys or you guys might not pay attention i covered this in a video a week ago or so but um you know basically what truckers are getting for their loads is gone down dramatically over the
Past one to two months but not only that then you’ve got gas prices getting tacked onto it it’s just it’s bad for truckers it’s bad for transporting any sort of products it’s bad for the economy because people already live paycheck to paycheck and in gas is a need for people they have to drive to the job or drive the food store or place like that so if if people
Have less money to spend on gas oh yeah you know less money they have to spend more on gas they have less money spent everywhere else that’s just the bottom line with that right it’s just a bottom line if you have a 100 extra dollars let’s say a week from your paycheck well shoot that extra hundred dollars might be going just toward gas alone now and so you know
We’re just in a we’re in a real pickle we’re in a real pickle that’s the best way to put it this is this is horrible for the economy right and so that leads me to apple right and you know we heard from microsoft they just brought down their revenue and uh and profit figures now microsoft blamed it on fx you know whatever whatever these companies want to blame
It on is whatever they want to blame it on like it is what it is right but this leads me to apple i think apple’s in real trouble um i think we’re going to see that over the next few quarters i there’s no way this company’s putting up great numbers there’s no way um you know i will i short apple stock will i buy put options on the stock no way but the bottom line
Is china’s a mess europe’s going in the recession u.s is uh a horrible place and those thousand dollar iphones those 1400 iphones those two thousand dollar macbooks and all that other stuff uh uh this stuff ain’t gonna be moving and um apple’s numbers are likely gonna go into decline which is gonna shock everybody because all the analysts are expecting a very
Nice growth from apple and when they start to see apple go and decline they’re going to be like what what apple might try to blame in our supply chains and and i’m sure tim cook will have a nice story uh to tell but at the end of the day the further this goes along they’re going to have to end up telling the truth eventually and that the consumer’s just not there
And demand’s not there and there’s no shame in that you know for a company like apple i think this past quarterly report they were very shy and as far as the guidance went they try to blame everything on supply chains um you know there’s no shame if the economy is getting to a bad place just call it out just call it out if the demand’s not there from consumers
People are going to understand they’re going to understand it’s not necessarily because apple didn’t come out with some new innovative product because they they haven’t done that for a while right at the end of the day people will be able to understand that like if the consumer’s not in a good place and they’re not um you know they don’t have that type of financial
Flexibility to go buy the iphone i don’t know 14 or whatever it is this upcoming year like it is what it is like to just accept it you know it’s not it’s not apple’s fault um necessarily that the economy is in a bad place people don’t aren’t going out there you know this fall time to go buy the newest macbook like it is what it is or the newest pair of airpods or
Whatever like just accept it there’s no shame in that um that just is what it is so anyways hope you guys enjoyed this video as always don’t forget to get the great ftx us deal down there uh why they still got that going on i don’t know how much longer they’re gonna have it but that will be pin comment down there once again use referral code holy smokers to get up
To 100 in free crypto much love and have a great day
Transcribed from video
Sold Heavy | Why The Stock Market is Collapsing Now By Financial Education
