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Well folks uh dao has been down 500 plus points at one point today yeah we’re gonna get straight into in this video we got way too much to cover for any intros in today’s video but needless to say i gotta give some warnings out there in this market and kind of what’s going on here explain this i’m going to show you guys a lot of charts in this video and things like
That but yeah dao was having a rough one today down uh 500 plus points at one point here today but there’s so much happening in the market and i mean so much happening in the market right now meanwhile on day like that you figure well you know everybody’s just got to be getting taken advantage of on a day like today right no no look at ark’s fun today right a r k
K arc innovation etf has been absolutely decimated recently and it has a five percent upward move here today for an etf an etf up over five percent today okay that’s quite a move there right and especially on a day when the dow is down 500 plus points like what a move but we know it’s been ugly for ark and this is this is uh you know maybe the start of a potential
Comeback there look at teleduck so tdoc stock is usually kathy wood in arkansas that’s usually in the in the big arc fund right that’s usually their like second or third biggest investment and that’s having a massive upward date a huge bounce back up almost 12 percent here today teledoc has a pretty bright future in front of it nonetheless if you’ve ever done some
Research on this company but it’s been it’s been you know one of the worst stocks you can possibly find that’s a you know an over 10 billion dollar market cap the stock was 308 not that dang long ago 10 11 months ago and it’s in it was down to 87 at its lows right 87 now it’s at 97. huge bounce back for teledoc rotation okay rotation of money we call that look at
Zoom zoom zooms are around the second or third biggest investment for arc fun zoom at a massive day today up nine percent that’s a big move by the way i’m doing a little thinking about zoom actually last night it’s funny because i uh i had a zoom call with some folks in china and i was just like wow this is interesting having a zoom call with folks in china and just
Like i just started thinking about zoom as like a bigger play outside just the united states i was like oh man i i should ask them like how many zoom calls they usually get on for their businesses and whatnot but zoom yeah huge upward day here today up about nine percent that’s a massive bounce back there for zoom stock and then you’ve got things like this going
On right paypal you know we all know paypal is unbelievable right not the stock price recently it’s been bad and the stock’s down about one percent here today you know paypal’s just continues to kind of be in a tough spot as far as the stock price goes if i pull up my watch list which is on the hungry bull app so if you haven’t downloaded that yet on your ios and
Android store do so now that’s uh my app along with a few other people and essentially if i pull up my watch list on there what do we see like what do we see we see green everywhere today i mean everywhere teledoc almost 12 percent upward move lemonade eight percent up smile direct club seven point six percent up max our technology six percent up uber four percent
Palantir three point seven percent beyond me three point five percent sky works three percent voyager digital three point three percent stitch fixed three percent oatly three percent revolve three percent you mean you would think the dow would be having a great day today and the s p 500 would be up huge based upon looking at my watch list right like this is insane
Revolve up about three percent sam up close to three percent funko up two and a half percent tesla’s had a little bit of a bounce back day to day up 2.2 percent went up about two percent uh tattooed chef ttcf uh up a little uh less than two percent dropbox up about one and a half percent there uh obviously we see good rx up about one and a half percent dropbox up
1.4 there’s green everywhere there’s green everywhere by the way if you want to know a couple if you’re looking at big tech and you want to know a couple good deals amazon facebook okay uh amazon you know i got off that conference call i listened to their most recent conference called through the hungry bull app last night while taking a bubble bath and i i was
Just you know nothing but extremely impressed by that conference call amazon’s is insanely bright it’s at about a 53 ford p which is actually really really low for amazon because this company you know is one of those that just consistently grows around 20 or more than 20 per year and honestly worst case scenario for amazon is their growth rate goes down to like
15 i don’t see them them slowing down anytime soon i did my christmas shopping and most the high majority of my christmas shopping through amazon and i’ve just consistently ordered more and more through amazon amazon web services is just a beast that’s just going to get bigger and bigger and it’s such a sticky business model plus all their other businesses yeah
If you’re looking for good deals amazon facebook okay there so it’s not like everything big tech is overvalued or something like that okay now speaking about questionable is apple so this is where you get into some danger because folks look at this and this is where the warnings are going to start in this video folks look at apple and they say and i’ve seen it
Recently like man i’m selling out of my small caps i’m moving my money into apple because look what apple’s done over the past year and look what small caps have done over the past year right i’m just going to give folks a lot of warnings about this one okay apple’s been trading recently around a three trillion dollar mark cap apple’s a beast we all know apple’s a
Beast we i mean it’s it’s an unbelievable company like if my i’m recording this right now my macbook pro if my macbook pro breaks guess what i’m going to go buy another macbook pro right if my iphone breaks i’m going to go buy another iphone like we all know apple’s a amazing business model in the subscriptions business we know all that okay however there’s some
Issues with apple’s valuation right now and this is something i think all folks should take into account the ford bp for apple recently has been trading around 32. i have apple as far as our revenue next year i have them doing anywhere from negative two percent revenue next year to best case scenario of plus six percent revenue next year i don’t see how they
Do better than plus six percent i also don’t really see how they do worse than than negative two percent but nonetheless that’s not good right analysts have apple growing revenues five percent on ever average next year so apple usually trades at anywhere from about a 15 to maybe a 25 forward pe and remind and let me remind you right that’s been in the past when
There was more a lot more growth expected in apple know that there’s not very much growth especially over the next year to expect it in apple and it’s trading up here it’s trading rich okay that’s what you got to understand about apple is trading very rich and so you do have to understand it is very very possible that apple could have a stagnant year or maybe even
A downtrend year doesn’t mean it’s going to happen and maybe apple pulls some rabbits out of the hat and some somehow grows revenues i don’t know 15 next year and blows everybody out of the waters i just don’t see it i just don’t see it i think there’s been a huge pull forward in ipad and the mac business i think there’s been a huge pull forward in that i don’t
See them coming out with anything super innovative as far as new air pods or anything like that going over the next year so i think they’ve had a big pull forward in demand there and iphone right uh you know i looked at this latest generation i was like okay they made everything a little bit better like apple usually does but it’s like well did they really change
The game with anything there right and so it’s just the consistent progress apple always makes right and so that’s where you start getting into this kind of situation there where it’s like what do they have coming that would also make revenues go through the roof and that’s what you should be expecting when you’re going to pay the highest 4p for the stock you’ve
Had to pay in years for the stock right and so that’s a kind of a warning i’ll give there and keep in mind this is something if apple has a let’s call it a lager year right where it doesn’t really move much or maybe even down trends in 22 do keep in mind that could potentially move part of the market down right because remember apple’s around a 3 trillion mark
Cap it’s the biggest of the big dogs and so whatever happens with apple it can affect the entire market it can make things look way better than they’ve really been right which it’s definitely done in 2021 while small caps have been devastated the past six months s p 500 doesn’t look that bad dow doesn’t look that bad but guess what apple’s such a huge component
Of that along with the other big tech right and so if also this this stock has a has a year where it doesn’t do anything or down trends it will pull the market back okay and that’s just part that’s just the you know i call it the tip of the iceberg here okay yeah i don’t know if you guys not a lot of you guys pay attention to oil and gas stocks right because it’s
Oil and gas toxins like who cares it’s like a dying industry and people kind of look at it as like it’s it’s the past right the folks kind of look at these sorts of companies almost as uh they look at tobacco companies right it’s a thing in the past and it’s just like you know going out over time that’s why folks look at it whether that’s right or wrong i’m not
Gonna i’m not here to debate that here today okay what i will say is the fact is these are massive market caps and they’ve been performing very very well look at chevron 52 week range 83 was up all the way to 119. it’s pulled back very recently but it hits 52-week high literally in the past month right so chevron massive market cap 200 billion plus dollars that’s
Another one of those stocks that has helped the market hold up pretty well right now what happens if commodity prices start coming down well chevron’s hedged to a certain extent they’re not uh you know unbelievably directly uh you know affected by that however it does affect the perception when oil prices when gas prices go down during a time period it does
Unfortunately uh or you know depending upon if you’re in the stock right it does effect these stocks psychologically and they do move down and sometimes our earnings can be hit on the back of that too depending upon you know where where uh you know things are priced at and what not and so do keep in mind with a company like chevron if we get a pullback in oil prices
Where you know the supply really starts coming out there you know in a major way we know demand is going to be there but if the supply picks up in a major way which oil’s been pretty high recently so guess what every time oil goes high for a certain period of time everybody wants to start drilling for oil again because there’s a bunch of money to be made also that
Starts happening also you get compression on on oil and gas prices and specifically oil prices and also next thing you know a stock like chevron goes from having a great year tulsan next year they’re down 10 15 guess what that helps the indexes come down as well exxon mobil same exact thing 250 plus billion dollar mark cap look at your stock hit a new 52-week high
Very very recently right and when it comes to a company like exxon mobil same exact situation if all sudden you get a big pullback in oil prices it will affect a company like exxon mobil at least in in in terms of their earnings a bit but mainly the psychology because when folks see oil going up the first thing a lot of people think is they say i’m gonna put my
Money in exxon mobil chevron royal dutch shell bp whatever the companies are right and so keep in mind this is something that can have the market pull back okay so we’re looking at apple the biggest of the big dogs trading very rich right we’re looking at oil and gas stocks that have been you know right around 52 week high so those ones could pull back okay so
What about the next big dogs well guess what the big banks have been doing great recently as far as our stock prices go right jp morgan hit a new 52-week high not that dang long ago and i think that’s around its biggest market cap ever recently it was over 500 billion dollars when it was at its 52 week high this is one of those stocks you look at and also they’re
Talking about raising interest rates and what does that do for their loan business do folks start you know and not doing as many loans right and there’s just kind of been an overall excitement around a company around a lot of these these uh financial companies around a lot of these banks and what happens if some of that starts to fade in 22 which is already starting
To fade to a certain extent right the pullback’s already starting but what if it gets quite a bit worse over the coming next few months right that’s something that’s going to obviously hurt the entire market in terms of the s p and the dow right and uh because this is a huge market cap if jp morgan olsen goes down 10 guess what that’s going to likely pull down
All the other banks as well all these other banks are massive market caps as well it pulls down the whole financial sector which pulls down the s p 500 which pulls down the dow right very important to keep in mind look at a company like wells fargo right not nearly as big of um you know market cap as chase because obviously it’s just not not nearly as well-run and
Those sorts of things but you know almost a 200 billion dollar mark cap and recently it was over 200 billion dollar mark happened it was trading has 52 to a 52-week high very recently right and now this company’s in a position where it’s grown into a massive market cap if wells fargo pulls back 15 20 percent next year right it’s gonna hurt the entire the entire
Market right because it’s a big big player so when it comes to these large caps and thinking about oh man let me sell my smalls in my mids because those have been doing horrible and put my money into apple and put my money into oil and gas stocks and put my money into the big banks because those have been doing great uh yeah i would uh i would uh you know i’d
Just be very very cautious about that move that just like it doesn’t make any dang sense okay that’s like the definition of uh you know as they say uh buy high sell oh gosh okay just no no no no bueno okay look at this look at this okay here’s our new yardini there’s the most recent numbers they have out of yarndini right now on what ford ps are looking at ford
Ps for large caps are high this is why you don’t large caps just aren’t the play right now large caps just aren’t the play right now man there’s um you know there’s certain markets we go through where large caps are the play and it’s like throw your money in big tech throw your money in in large cap stocks and that’s the that’s easy money right with fairly low risk
It’s not that sort of market right now it’s just not when you’re looking up here for large caps no no okay that’s just not the play and that’s why for me recently right i’ve been buying a lot of smaller cap companies because that’s what the market’s giving me right now if large caps were trading at a 16 right now or 15 i’d be buying large caps right now because i’d
See deals all over the place right but at a 21 ah you know that’s not where the true opportunity is and if you if you’re flooding money into the large caps i’m going to give you a warning it’s probably you’re either going to lose out on a ton of gains on the flip side or you’re going to end up you know potentially even losing money right if we look at mid caps
Much more in line with where we should be right now if you look at mid caps s p 400 mid caps you’re right in line if anything you’re undervalued right there’s no way you can decipher this and look at these numbers and say anything other than you’re in line where with where you’re supposed to be or you’re undervalued on the market right and to be honest mid caps
Right now are undervalued in this market okay so that’s an opportunity but it’s still that we’re still at the tip of the iceberg this is where the real opportunity is in the market okay s p 600 small caps this is like i said this is the most recent numbers out of yardini look at how insanely low we have been very very recently here right the only time periods you
Can find where anytime in recent history where you’re lower than this was in the the massive crash of december of 2018 when we were on pace to have the worst december since the great depression right for that little short amount of time we were under this and then back in 2011 2012 we were under this right so you’ve had two periods in the last decade to get small
Caps this damn cheap and you don’t let these sorts of opportunities pass you by and that’s why i’ve said recently with a lot of these small cap stocks it’s like shooting fish in a barrel and whenever i say it’s like shooting fish in a barrel it’s usually a pretty pretty decent time to be buying stocks and specifically the type of socks i’m talking about okay and
To be quite honest right now it is like shooting fish in a barrel when it comes to a lot of these small cap stocks they are trading at some of their cheapest valuations uh you know imaginable for these companies and you like i said you just don’t get these opportunities very often and so when these sorts of opportunities are presented to yourself you can say well
No i’ll let that i don’t care about that or you can go ahead and say okay i’m getting the biggest opportunity you know we’ve only gotten two opportunities in the past decade to get an opportunity like this let me take advantage of that what other what other thing would you be saying here okay it drops more maybe it drops down to a 13 like we were in 2011. okay so
Then we’re at literally the lowest what what drops to 12 so then we’re at the lowest we’ve been at at any time and since ever you know what i mean like that doesn’t make sense okay and so you this is where folks start to get really really greedy and this is where my next warning comes in don’t get greedy around pricing you see a great deal buy the dang stock throw
It in the filing cabinet don’t worry about it if it goes lower buy some more shares if you love that stock okay it’s as simple as that don’t over complicate this game and think well i don’t know you know it could go down okay you know this is like you know imagine being at the poker table and you’ve got the you got the the best hand right as they call it in poker
That you got the nuts right and and you’re like ah i don’t know i i i don’t know if i’m gonna win uh let me just fold my hand it’s like what are you doing what are you doing like what are you thinking are you thinking like what’s going on here right and so this is my next warning it’s like i said uh yeah if you’re not taking advantage of shooting fish in a barrel
What the heck are you doing okay look at this this is something you’re not going to see very often shown out there right what we’re looking at now is actually s p 500 valuation on a peg ratio this is price to earnings growth okay price to earnings growth and this was taken unfortunately yardini doesn’t do an updated one because i bet you this would be even lower
Than this we’re probably well under a one now but this was taken a couple weeks ago on 12 2. and essentially once again on a price to earnings growth you are paying this is so i mean it’s ridiculous okay look at this the only time periods you could get this is once again that that december 2018 time period i talk about right you get lower than this and back
In 2011. so once again price to earnings growth insanely low small caps trading ridiculously cheap and so if you are not taking advantage of these sorts of things in the market then you are just missing a massive massive opportunity and one of those opportunities that you just don’t get very often and then you’re going to look back in a few years from now and
You’ll be like wow remember back in december of 2021 when i wasn’t taking advantage of this stock at this price and this stock at this price and this stock at this price right and it’s like like like why why not why not inflation have you heard of inflation like what so keep all the money in cash right okay you can do that you if the stock market tanks what’s the
Fed gonna do they’re gonna dilute your dollars like it’s nobody’s business and then your dollar is gonna go boop like it’s already been doing so there’s no winning that game right you gotta always keep some cash on the sideline but keep a ton of cash on the sideline is always a losing game because you will always continue to be diluted and diluted and diluted
Into oblivion and so when you see insane opportunities in the market you have to take advantage of those and the ones that don’t take advantage of those are going to be the same ones crying in three years from now five years from now i’m like ah remember when jeremy was doing those videos in december of 2021 and it was like all these stocks were at this price
And this price and now look at that stock now look at that stock and now look at that stocking oh i just uh i didn’t buy anything you know i was just well i rotated my money to apple stock or i rotated my money into the big banks or oil and gas talks it’s like oh gosh okay anyways guys much love as always hope you enjoyed a video like this appreciate you and have a great day
Transcribed from video
WARNING: ALL MARKET INVESTORS By Financial Education
