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Holy smokes guys we are on pace for the worst stock market performance for the month of december since the great depression yes you heard me right the great depression like how long ago was that like 1931 that’s what we are talking about guys this is unbelievable i want to go through some charts i want to talk about this a bit i want to talk about five reasons
Why you should be happy this is happening okay so first off here top 10 worst sp500 december performances as of right now we’re about halfway through the month of december and we were on pace for literally the worst performance in the s&p 500 since the great depression okay look at the chart there that is unbelievable you think about all the different times
In december that have been bad in the past right because of different reasons or different time periods and this could be the worst since the great depression this is unbelievable okay if we look at the dow top 10 worst doubt december performances of all time we’re on pace for the healey worst since the great depression okay since 1931 now december is typically
A very positive month for the markets the dow is only falling 25 times in december’s going back to 1931 so most years december is a is a good period okay the santa claus rally is generally a real thing okay generally speaking the markets go up in the month of december it’s good if we look on average the s&p 500 averages a 1.6 percent gain for the month of
December making it typically the best month for the entire stock market usually december’s a month where i will almost buy no stocks just because the markets just in a goalie lock period it just goes up and up and up on you and look back year after year like since i’ve been the stock market since dozen 8 2009 almost every single year like the markets were really
Good in december that i can look back at ok so the fact that we’re having this bad of a december like worse since the great depression is unbelievable right if we look at what happened in the markets today we are the dow fell another 500 plus points over 2% drop we have the nasdaq drop over two point two percent today nasdaq peaked out at i think it was around 81
Or 82 hundred this year now we’d have a 6700 on the nasdaq s&p 500 was down another 2 plus percent today if i look at all the stocks i own every single one was down everything was read my son looked at my stock tracker up he said dad were the we’re the ones that are up there’s nothing up today okay this was just a rough day out there so guys i want to really
Talk about this into depth here why you should be happy that this is happening now first off i understand everybody that’s in the stock market right now the short-term pain is no fun okay whenever you go through short-term pain i don’t care if you just have a 401k to see that going down in value to have a brokerage account if you’re an individual stock picker like
Myself to see your account value go down because you know the markets are rough the short-term pain is never fun but it’s something you’ve got to understand if you err in the stock market your invest in the stock market you’re gonna go through periods of short-term pain it’s a bottom line sometimes it lasts a few weeks sometimes it lasts a few months sometimes it
Lasts one to two years you don’t matter what in this game you are gonna go through short-term pain it’s the bottom line okay if i went outside right now and ran 20 sprints i mean that would be a lot of short-term pain i would be feeling like death after those okay but guess what its long-term gain in the end all right you just got to deal with it alright but the
Short-term pain is no fun i understand it like it is what it is alright but what i will say i will say one comment about that is i feel personally i’m looking at it and i’m like i can’t believe this is we’re on pace for the worst december since the great depression because personally when i look at my accounts i’m like yeah we’re dell but it’s not like we’re down
That much where it’s like oh my gosh this is a disaster so i’m actually a little surprised that this is going to we’re on literally pace for the worst december since a great depression like that actually surprised me a bit i knew it was rough but i’m like that rough that’s insane okay so number one why why should you you know welcome this first off you get to buy a
Lot more shares for a lot cheaper whatever any of the bears want to say whatever any of the short sellers want to say there’s one fact out there and that is the stock market goes up over time okay now short-term yeah we have crashes here market can go down 10% a little correction we have an actual crash where the markets go down 30 40 50 % we can have bear markets
All that type of stuff okay but if there’s one thing we know the stock markets go up over time okay so the fact is right now you’re getting to buy shares a lot cheaper then if you would have bought you know six nine to twelve months ago that’s the bottom line there so you as an investor out there as long as you still have a good income more and hopefully an increasing
Income in 2019 guess what you’re gonna be able to buy more and more shares at a much cheaper price and be able to hold great companies for years into the future when all the short-term mumbo jumbo passes and next thing you know we’re up and up and up so that’s the first reason why you should welcome this the second reason why you should welcome a horrible december
Like this is most companies have massive share buybacks on right now okay most stocks i don’t have share buybacks are which means these companies these big corporations are getting to buy their shares back for a dramatically cheaper price than if they would have buzz bought six months ago or nine months ago we’re talking about most stocks are down twenty thirty some
Even forty to fifty percent so you were talking about a dramatic amount more of shares these corporations are going to be able to buy with basically cash on their balance sheet or the profits coming in which is a great thing for those corporations long term that it’s gonna help our earnings per share in a dramatic dramatic way which is great for valuation purposes
It’s also great for you as a shareholder it’s more of money of the companies can pay out in dividends because it’s basically less shares out there to be counted against okay so it’s not only can you buy more shares when they’re when they drop but the corporations can buy a lot more shares which will help out eps down the road okay the third reason you should be
Welcome something like this is if we actually have a recession there’s gonna be less to fall right if you know we earnings have been amazing this year like you would think like that market should maybe be a 30 like the dow would have been up like 30,000 or something like that with based upon earnings there’s been one of the strongest ernie’s periods i’ve ever seen
You know in in my life certainly of being in the stock market and even if you go back to further perry it’s like we’ve seen very few times in history where earnings have been as strong as they’d been this year so basically what that means is you would think that the markets would be up dramatically but this year we’re definitely finished in the red it looks like
Unless we have a massive comeback in the next week week and a half so it looks like we’re gonna finish this year in the red which means essentially we’re gonna have a lot less to fault if if there was actually a legit recession or something really bad happening the economy we’ve seen slowness out of china we’ve seen europe numbers kind of be okay us numbers have
Been pretty strong for the room for the most part but we haven’t seen anything out there this is oh my gosh we’re gonna have a global recession or something really bad is going to happen but if something happened we’re gonna have less to fall because the markets have been so weak this year so that’s a good news because last thing you want to be is you know dow
Three you know thirty thousand or something like that and say the nasdaq sat ten thousand or nine thousand then you have a recession come out of nowhere and the market is just getting hit dramatically that’s what happened in 2007 you went from a market you know being in a goldilocks period everything being at all-time highs and then in such a rapid amount of time
Things decelerating the markets fell about fifty percent from their highs okay so the good news is if there was actually legit something bad happened there’s less to fall reason number four as right now there are a lot of people making you know a lot of money for their put options and there have been for months okay food options just buying put options straight up
That’s a wave a lot of people are million making out a lot of money and a lot of these names when you get stocks going down twenty thirty forty fifty percent there’s so much money to be made and put options it is ridiculous okay the second way is basically if you hold shares on a stock you could basically be selling our you know written call options or something
Like that and go ahead rate call options you sell it and guess what those shares are likely not hitting the price so you get to just make premium while you hold shares that you actually love for the long term you get to hold them you’re selling these call options up here and they’re never hitting those strike prices so you’re just getting all that premium okay so
Options there’s definitely a lot of money to be made options right now there’s people making fortunes on options sometimes you know this is really you know how people can build an account from a hundred thousand to you know a few million in a very short amount of time is through actually you know options in very volatile markets okay if you go the wrong way and
Let’s say you were going all call options for the last six to nine months then obviously you can devastate your account the wrong way right reason number five is you go to ask yourself would you rather it be at a peak bullishness in the market or would you rather have peak bearishness in the market well i put out a poll on instagram earlier on my instagram stories
And basically i said okay the more the stock market is the selling and a stop in one month from now or twelve months from now and what i saw was sixty five percent of people that follow me on instagram those are just retail investors for the most part rate it’s not like i have big fund managers following me on instagram or at least from what i understand right sixty
Five percent of retail investors are saying that basically is going to be you know twelve months or maybe even more than 12 months tell the selling stops okay then means we have a lot more people that are bearish in this market right now than we have that are bullish right if i if i were to went back to let’s say about a year ago and done that same poll and maybe
Done a poll that says something like oh you know will the stock market be a go up in 2018 or will it go down in 2018 i can almost guarantee you ninety percent plus of people a year ago would have said the market would be up so that was a you know a time parrot where maybe we were at you know peak bullishness but if i look at it now maybe we’re not quite at peak
Bearishness yet but if i look at it i’m just seeing massive amounts of bearishness out there from retail investors from the media from you know the analysts out there from hedge fund managers and whatnot then she makes me feel a lot better about the market when i see this type of bearishness out there because that just means you’re close through a bottom doesn’t
Mean you’re at the bottom absolutely not but i can tell you when everybody’s bullish out there that’s the biggest time to worry when everybody’s bullish and you can’t find anybody that’s bearish that’s usually the biggest time to worry when you when you’re starting to see more people that are berenstain and bullish that’s actually a time to start feeling good about
Yourself because it looks like you know you’re getting closer to a bottom then if everybody’s bullish and you’re way up here it’s a totally different game so when i look at it right now i’m very comfortable with how many people are starting to turn into bears now and makes me feel like we’re a lot closer to bottom so that’s a good news there so as far as you know
Stock market’s falling short term it’s pain long-term if you have a long term focus on this man it’s all just gonna be mumbo jumbo in the end and a few years back we’re gonna look at it and just be another time period in the past just like all the other time periods in the past before you know it shout to pass and in the name of the game for me as i just try to
Buy undervalued corporations so they want to trade them even lower it i’ll buy that’s the bottom line i’ll buy great american corporations i believe in the american system i believe in the global economy over time i was going to do phenomenal and that’s just the name of the game for me whatever happens in the short term is whatever happens in the short term let
Me know what your guys opinion is down there in the comments section we love to hear from you guys as always thank you for watching and have a great day test of whether you’re investing from a value standpoint or not is whether you care whether the stock market is open tomorrow
Transcribed from video
this is the WORST stock market december since GREAT DEPRESSION By Financial Education
