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Oh hey guys what’s going on i wasn’t sure if we were recording just yet uh just enjoying my lunch excuse me having a bread sandwich today given the current state of the markets in my next video i’m gonna be covering my five favorite recession meals as far as meals you can afford after you invest money in the stock market and lose everything okay now before we get
Into this video and talk about what could be causing this possible stock market crash or correction i want to talk about why you should actually care and the answer is you really shouldn’t care at all so your question might be why would i bother making this video if i don’t care about a market crash and you shouldn’t care about a market crash the reason why i’m
Making this video is because so many people think they need to care about whether or not the markets are going up or going down and the truth is you shouldn’t care about what the markets are doing you need to have strategies in place that allow you to make money when the markets go up and you also need to be able to make money when the markets go down so maybe
On the way up you’re buying stocks of undervalued companies and selling them at a higher price down the road or you’re buying dividend stocks and you’re buying stocks that are gonna pay you dividends now that’s one that could work for both bull markets and bear markets because if you invest in good companies that have a consistent dividend history they’re gonna
Keep on paying dividends even during a bear market or maybe your bear market investing strategy is to bet against the companies that are overvalued or wait until stocks go on sale and scoop up shares of undervalued companies or even better you don’t care about whether or not we are in a bull market or a bear market because you regularly accumulate shares over
Time also known as dollar cost averaging i want to give you guys a comparison here to what this is like because everyone seems to be freaking out about the fact that we are seeing a market correction taking place now is this the sign of a long term correction or just a short term correction where the market is blowing off steam i have no idea does anyone have any
Idea absolutely not there’s no way to sustainably or accurately time the market and so it’s useless to even try doing this but what i want to show you here is why you need to have a strad for both the bull markets and the bear markets so let’s say for example you live in the northeast near where i live i live in new york and you have a landscaping company and so
During the summer you go around with your truck you break leaves you mow lawns you pull away the clippings and so you do very well in the spring when people are cleaning up their yards during the summer you do the mowing and during the fall you do a great business with the raking and then winter comes along and what are you gonna do if you’re a landscaper because
There’s certainly no grass to mow there’s no leaves to rake nobody is landscaping you know what you do you stick a plow on your truck and you push the snow that is what it is like being an all season stock market investor where you understand how to make money when the markets go up and make money when the markets go down it’s like being able to throw a plow on
Your truck during the winter and push snow because you know that nobody’s interested in having you mow their lawn in the winter but there’s snow that needs to be pushed you need to be able to do that you need to be able to transition or pivots into another strategy that will allow you to make money during a down market if that is the case so do you see people who
Do landscaping in the northeast sitting around saying oh is winter going to start today is winter gonna start in a week is winter gonna start next month no they don’t and maybe those who do need to develop a strategy to make money during the winter but that is the exact same thing you need to do when it comes to investing in the stock market so that being said the
Most important thing that you can do for yourself is educate yourself on some bare market investing strategies and i’m actually going to be covering that in stock radar very soon that’s my weekly stock analysis membership group every single week we do an analysis on a particular company and if we do see a market correction take place we’re going to start to look
For good value investing opportunities because the thing is you may see the share price of a company fall but does the actual underlying or intrinsic value that company have fall as well and the answer in most cases is absolutely not so what you look for is companies that are going on sale as a result of a broad market correction and if you’re a value investor in
You’re performing fundamental stock analysis and that’s what we do over in stock radar we look at all the key financial documents we talk about the the moat and the barriers these companies have the pros conn’s and so you’re looking for good durable businesses you’re looking for good fundamentals financially healthy companies and then when the market goes on sale
When you see stock prices fall that is when you take advantage of that sale and you scoop up shares of undervalued companies but at the end of the day the most important thing you can do for yourself is not to sit there at your computer typing away looking for what will cause the stock market crash the most important thing you can do for yourself is to find a
Plow for your truck figure out what you’re gonna do when the snow falls are you gonna plow driveways or you’re gonna sit there and stare out the window and wait for the snow to melt so what is possibly causing this stock market crash there are seven different factors i want to talk about here and i’m not saying there’s going to be a massive crash here like i said
Timing the market is of no use there’s no way to successfully or accurately time the market and if i were to sit here and tell you guys that i think the stock market is going to crash tomorrow or it’s gonna crash next week that information should be of no use or value to you because you know that nobody has access to information that the general public doesn’t
About what’s going on with the markets and there’s no way to sustainably or accurately tell when we’re gonna see a stock market crash but if we do see a substantial correction taking place with the market i believe it is a result of one of these seven factors or a combination of these things and again these are all catalysts that exist in the market right now six
Months from now you may watch this video and say i was right six months from now all these things may have blown over and you could say this was ridiculous the first one relates to trump and his 25% tariff proposed on up the 60 billion dollars worth of chinese imports so trump is very outspoken about his opinion on china and how he thinks we should have a level
Playing field when it comes to trade and right now he believes that china has an advantage and he wants to level the playing field by imposing tariffs on imported chinese goods and particularly we saw this happen with imported aluminum and steel now here’s the thing about this situation is that china also buys a lot of stuff from the united states so what we have
Here is the potential for a trade war to start where we’re going to start slapping tariffs on imports left and right and that’s going to benefit absolutely nobody we have seen china come out now and say they are going to be imposing tariffs on 128 us imports so what we could potentially see happen here is a pissing match between the united states and china and i
Know that might be an offensive term but that’s really all i can think of to explain this you’re not going to see china just back down we’re not gonna say okay we’re gonna slap tariffs on chinese imports and they’re just gonna say sure that’s fine no problem yeah no big deal they’re gonna do the exact same thing to the us imports they’re very outspoken about this
And they said they’re going to be coming at the united states with the same exact severity as we are coming at them and this really makes no sense at the end of the day because for example think about the iphone the iphone is assembled in china with parts that are made all over the world so does it make sense to slap a tariff on something like that if the actual
Components and hardware are not being manufactured in china they’re assembling this phone in china and then to ship it to the united states they’re gonna have to pay some kind of tariff this just doesn’t make any sense to me and the whole idea of tariffs in my opinion interrupts with the free market and so i don’t understand the point of these tariffs i’m certainly
Not supportive of them but we do have a big potential here for a trade war to be started with the united states and china now how does this trade war immediately affect the market well first of all let’s talk about boeing boeing was the top performing stock on the dow jones industrial average in 2017 it is one of the darlings of wall street right now but you know
What is very interesting about boeing is that 25% of their deliveries in 2017 were to china and about 20% of their backlog is from chinese customers so boeing is caught in the middle here with this potential trade war where one of the first things that china could slap a tariff on is commercial airplanes and who is the biggest producer of commercial airplanes as
Far as the us exports go it’s going to be boeing so immediately as a result of this potential trade war with china we saw a boeing stock going to a fear driven sell-off because people were afraid that china was going to directly go after boeing as their first retaliation and when you see a bellwether for the market a bellwether for the dow jones industrial average
Go into a cell that is when you’re gonna start to see people in the market become fearful and you’re gonna see a broad market correction taking place now on top of that we are seeing that trump tweeted about leveling the retail playing field as well he’s saying that amazon is not a business people can compete with retail storefronts are going out of business this
Is negatively affecting the post office and so again we saw shares of amazon go into a sell-off amazon again being one of the darlings of wall street right now but why is this such a big deal again amazon is one of these bellwether stocks it’s one of these darlings of wall street one of these stocks that have just been doing so well over the last couple of years
And when you’re seeing a massive sell-off taking place with this stock it’s gonna cause a broad market correction and then we tie in what is going on with facebook and this cambridge analytical scandal now members of my stock radar group you guys heard all about this we did like a 30-minute analysis on facebook and talked all about this scandal but essentially data
Ended up in the wrong hands as a result of facebook’s privacy policies with data and people are really for the first time stepping back and saying these big data companies need to be stopped with the amount of data they’re collecting on us and also what they are doing with that data and so as a result we saw a massive sell-off taking place with facebook stock another
One of the largest companies in the stock market another one of the bellwethers of the market i mean guys think about the fact that fang composes of facebook amazon apple netflix and google we saw a sell-off with google taking place as a result of what’s going on with facebook because there are another gigantic digital advertising and data company so when you have
Three of those five companies going into a massive sell-off what do you think is going to happen to the other components of fang or the nasdaq or the other stocks out there you’re gonna see the whole market begin to go into a correction and then the final company i want to bring into this is tesla for the first time tesla is facing reality of the fact that they’re
An unprofitable company and moody’s has downgraded their debt so there’s actually talk out there as well about tesla possibly going bankrupt or not being able to repay their debt that they owe and so for the first time tesla shareholders are going what are we going to do here because tesla does not have them to turn a profit we are hearing about production delays
With their vehicles and there was another deadly crash with one of their vehicles so a lot of bad news surrounding tesla stock and we saw that stock also go into a sell-off recently and then all these components tied in together in caused a sell-off with the tech stocks and it really comes down to the fact that many of the market bellwethers went into a sell-off and
As a result you’re going to see a broad market correction taking place when you have facebook google amazon boeing all these stocks falling at the exact same time the whole market is going to come down with it now is this all going to blow over or are we going to see a trade war that’s going to cause the stock market crash of 2018 i have no idea nobody really has
Any idea and i just want you guys to understand that you shouldn’t worry about that instead you should realize that you have to learn how to make money when the markets go up and when the markets go down and if you’re nervous if you’re worried about a market crash you need to stop looking at your computer trying to figure out what will caused it and instead learn
About how to make money in a bear market that’s the best piece of advice i can give you guys but anyways this is not my typical style of video here talking about news or current events but i just wanted to talk about it because so many people are talking to me in my private facebook group or sending me emails or leaving comments about a stock market crash and i just
Felt it needed to be addressed but anyways guys thank you so much for taking the time to watch this video if you’re looking to learn more about investing in the stock market check out my free course on how to find a great investment i’ll link that up in the description below but i thank you so much for taking the time to watch this video and i hope you have a great rest of your day
Transcribed from video
to those wondering "WHAT WILL CAUSE THE STOCK MARKET CRASH?!" my thoughts… By Ryan Scribner
