The 2024 Stock Market Crash Just Started

Summary

The video discusses a recent market drop, debunking mainstream media's exaggerated panic. The speaker, a former financial professional, emphasizes the normalcy of market corrections and encourages long-term investing. He criticizes the media for inducing fear and highlights how smart investors can capitalize on market corrections. He also shares his personal investment success and advises viewers to use data, not emotions, in decision-making. The video aims to provide a contrarian perspective, urging viewers to stay calm and seize investment opportunities during market downturns.

Takeaways

• 🌐 The speaker started on YouTube after a successful career in finance, aiming to share insights and counteract misinformation in financial media.
• 📉 The recent market drop felt more painful than usual due to significant single-day declines in major indices like the S&P 500 and NASDAQ.
• 📈 Despite the recent correction, the speaker emphasizes that market corrections are normal and smart investors can use them to make money.
• 🔢 Historical data shows that the S&P 500 has been profitable 96% of the time over any 10-year period in the past 100 years, suggesting long-term investment potential.
• 💡 The speaker's portfolio, consisting of 40% S&P 500, 40% Tesla, and 20% other stocks, has seen a 160% increase in the past 18 months, demonstrating the potential of a diversified approach.
• 🚀 The speaker highlights the importance of not getting caught up in emotional trading and instead focusing on a long-term investment strategy.
• 💰 The speaker suggests that market pullbacks present opportunities for long-term investors to dollar-cost average into positions or open new ones at lower prices.
• 🚫 The speaker warns against buying into parabolic spikes and advises waiting for weakness before opening positions, using the example of SMCI's stock price movements.
• 📊 The speaker provides a detailed analysis of CrowdStrike, arguing that despite recent setbacks, the company remains a strong investment due to its market dominance and financial performance.
• 💬 The speaker criticizes mainstream financial media for creating panic and pushing Wall Street's agenda, encouraging viewers to look beyond the fear and focus on facts and data.

Q & A

What was the main event that caused a lot of pain and panic in the financial markets?

The main event was a market correction, which is a decline in the stock market. This particular correction was felt more painfully than usual due to the significant drops in various stocks and indices.

Why did the speaker start a YouTube channel?

The speaker started a YouTube channel because he was burned out from his job in financial institutions and wanted to do something fun as a side project. He was also financially comfortable, so he didn't need a job but was looking for a new challenge.

What is the speaker's background and how does it relate to his perspective on financial media?

The speaker is an immigrant who studied at the University of Michigan and worked as a senior manager for a financial institution. His background gives him a unique perspective on the financial system, and he uses this to critique the mainstream financial media for their sensationalism and fear-mongering.

What is the speaker's view on the role of mainstream media in the financial markets?

The speaker believes that mainstream media is in cahoots with Wall Street, creating panic during stock drops to generate clicks and revenue. He suggests that this media manipulation pushes the agenda of Wall Street, encouraging investors to buy high and sell low.

What is the definition of a market correction according to the speaker?

A market correction is typically defined as a 10% drop in the market. The speaker points out that the recent 3.2% drop in the S&P 500 is not a correction, emphasizing that corrections are more common than people think.

How does the speaker describe the impact of the recent market correction on his portfolio?

Despite the market correction, the speaker's portfolio has performed well, being up 160% from January 2023 to the time of the video. He attributes this to his strategy of investing in a mix of the S&P 500, Tesla, and other stocks.

What is the speaker's advice for investors during a market correction?

The speaker advises investors to use market corrections as an opportunity to make money. He suggests that smart investors can buy stocks at lower prices during corrections, and he emphasizes the importance of having a plan and not reacting emotionally to market fluctuations.

What is the significance of the speaker's mention of 'SMCI' stock?

SMCI is an example the speaker uses to illustrate his investment strategy. He bought the stock when it was undervalued and warned viewers when it reached a peak, advising them to be cautious and consider taking profits. The recent correction has brought the stock price down, making it potentially attractive again for investors.

How does the speaker view the current market situation for long-term investors?

The speaker views the current market situation as a great opportunity for long-term investors. He suggests that the market pullback allows investors to dollar-cost average into stocks and open new positions at lower prices, emphasizing that this is not the time to panic but to take advantage of the situation.

What is the speaker's opinion on the role of emotions in investing?

The speaker strongly advises against letting emotions drive investment decisions. He emphasizes the need for a plan and a clear understanding of investment goals to avoid making rash decisions based on market volatility.

Outlines

00:00

😲 Market Correction and Investment Opportunity

The speaker begins by addressing the market's recent downturn, which felt more painful than usual, and suggests that this could be a significant opportunity for smart investors. They share a personal story about their journey from being an immigrant kid to working in a high-level financial institution, and later starting a YouTube channel. The speaker criticizes mainstream financial media for inciting panic and fear, which they argue is counterproductive for investors. They promise to provide a contrarian perspective to the mainstream narrative, aiming to help viewers make informed decisions rather than succumbing to emotional reactions.

05:01

📉 Understanding Market Corrections and Historical Data

The speaker clarifies what a market correction is, noting that the recent drop in the S&P 500 does not yet qualify as one, and uses historical data to show that corrections are common and can be opportunities for smart investors. They discuss the performance of various stocks and indices, emphasizing that despite the recent pullback, the long-term trend has been positive. The speaker also highlights the importance of not relying on emotions or gut feelings when investing, and instead focusing on historical patterns and data.

10:03

📈 Profiting from Market Volatility

The speaker shares their own portfolio's performance, which has seen significant gains despite the market's recent volatility. They discuss the performance of nine stocks they have covered, all of which have provided positive returns. The speaker uses the example of a specific stock, SMCI, to illustrate the importance of not buying into a parabolic spike and waiting for market weakness to open positions. They caution against mistaking a company for another with stronger market protection and emphasize the risks associated with such investments.

15:03

🚀 Long-Term Investing Amidst Market Turmoil

The speaker contrasts the current market situation for traders and long-term investors, suggesting that while it may be a challenging time for traders, it presents an excellent opportunity for long-term investors to dollar-cost average into positions or reduce the cost of existing ones. They highlight several stocks that have become cheaper due to the market downturn and discuss the potential for profit in such scenarios. The speaker also provides a detailed analysis of CrowdStrike, a company that has faced recent challenges but remains fundamentally strong, offering a potential investment opportunity.

Keywords

💡Market Correction

A market correction is a decline of at least 10% in the value of a stock market index from its recent peak. In the video, the speaker emphasizes that corrections are normal occurrences in the financial markets and that they provide opportunities for smart investors to buy stocks at lower prices. The script mentions that a 3.2% drop in the S&P 500 does not meet the definition of a correction, highlighting the speaker's point that the reaction to the market's movement was overblown.

💡Financial Media

Financial media refers to various outlets and platforms that provide news, analysis, and commentary on financial markets. The speaker criticizes the financial media for creating panic and fear among viewers, which can lead to irrational investment decisions. The script illustrates this by mentioning how mainstream media's portrayal of a market drop as an apocalyptic event is exaggerated and misleading.

💡Investment Banking

Investment banking is a division of banking that assists individuals, corporations, and governments in raising capital by underwriting or acting as the client's agent in the issuance of securities. The speaker contrasts their experience in investment banking with the behavior in financial media, suggesting that the latter is more cutthroat and deceptive.

💡

💡Portfolio

A portfolio in the context of investing refers to a collection of financial assets such as stocks, bonds, commodities, cash, and cash equivalents, as well as their proportions, which are held by an investor. The speaker discusses their own portfolio performance, which was up 160% from January 2023 until the time of the video, to illustrate the potential for significant gains despite market fluctuations.

💡Dollar Cost Averaging (DCA)

Dollar cost averaging is an investment strategy where an investor divides the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. The speaker suggests using DCA as a strategy to take advantage of market corrections by buying stocks at lower prices over time.

💡Wall Street

Wall Street is a metonym for the financial markets of the United States or, by extension, of the financial markets of the world. In the script, the speaker accuses Wall Street of wanting investors to panic and make poor investment decisions, such as buying high and selling low, so that they can profit from these actions.

💡NASDAQ

NASDAQ is an American stock exchange known for listing technology companies. The speaker mentions a significant drop in the NASDAQ index, which is used as an example of the market's volatility and the potential for investors to capitalize on such events by buying stocks at a discount.

💡S&P 500

The S&P 500, or Standard & Poor's 500, is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. It is often used as a benchmark for the overall U.S. stock market. The speaker uses the S&P 500's performance to discuss the frequency and impact of market corrections.

💡Sentiment

In the context of finance, sentiment refers to the general feeling of investors about the market or a particular security. The speaker discusses how market sentiment can be influenced by fear and panic, leading to opportunities for smart investors who can make rational decisions amidst emotional turmoil.

💡CrowdStrike

CrowdStrike is a cybersecurity technology company that the speaker mentions as an example of a stock that has experienced a significant drop due to negative sentiment, but still has strong fundamentals. The speaker uses this to illustrate how investors can identify opportunities in stocks that have been unfairly penalized by market sentiment.

💡Long-Term Investor

A long-term investor is someone who buys stocks with the intention of holding them for an extended period, often years, to benefit from long-term growth and dividends. The speaker contrasts this approach with that of traders, suggesting that market corrections are a good time for long-term investors to buy stocks at lower prices.

Highlights

The speaker discusses the recent market correction and its emotional impact on investors.

The speaker shares his personal story of starting on YouTube and his background in finance.

The speaker criticizes mainstream financial media for creating panic and fear among investors.

The speaker argues that the recent market drop is not a correction but a temporary pullback.

The speaker emphasizes the importance of using market corrections as an opportunity to make money.

The speaker provides historical data on the S&P 500 showing that 96% of 10-year periods were profitable.

The speaker explains the significance of the best days in the market and how they can affect long-term returns.

The speaker discusses the emotional pain felt by investors during the recent market drop and why it felt more intense.

The speaker advises investors to use facts over emotions when making investment decisions.

The speaker shares his portfolio performance and the stocks he has covered, highlighting their positive returns.

The speaker warns against buying into parabolic spikes and advises waiting for weakness to open positions.

The speaker discusses the potential of the stock SMCI and its risks, advising caution and a wait-and-see approach.

The speaker explains how to take advantage of market dips by dollar-cost averaging into stocks like SMCI.

The speaker differentiates between the strategies of traders and long-term investors during market corrections.

The speaker highlights the stock CrowdStrike as an example of a company that is significantly undervalued despite recent setbacks.

The speaker provides a price target for CrowdStrike based on a five-year model, suggesting significant potential for growth.

Transcripts

so what in the world happened yesterday

what was that why it felt so painful

more than we used to in red days but

more importantly how this collapse we've

seen yesterday can lead to a massive

opportunity to make a lot of money for

smart investors so before we go through

that I would like to take five seconds

of your time to talk about something

personal you know a story about how I

started on YouTube and by the end of

this story you'll see how it connects to

what I'm talking about here now some of

you know this some of you may not know

this but you know as an immigrant kid I

came to the US and never imagined of

reaching the highs I've reached which is

working for a financial institution of

the highest degree you know a degree

from the University of Michigan one of

the best schools in the world working

for 10 years as a senior manager for

theoy I mean I had a terrific

opportunity to experience the financial

system up close and for a Russian kid

that was incredible and when I got

burned out and I knew I was burned out I

was already financially comfortable you

know I was smart my money I'm not a huge

spender I had plenty for my lifestyle I

had enough so I didn't really need a job

but I decided to do YouTube because it

seemed like fun like a side project it

was Co I was bored and I dove into the

world of financial online

media and I was shocked look look I

thought I was surrounded by sharks and

nasty people when I worked in Investment

Banking when I work for deoy I thought I

saw some backstabbing some craziness but

this is absolutely nothing compares to

what Financial mainstream media and

Financial social media is doing to its

own

viewers this whole thing dwarves

whatever I've seen in the actual

financial

industry by eons look a lot me to

explain this what we've seen yesterday

is a correction and Corrections happen

all the time we'll talk about that in a

second but the level of insanity that

mainstream media has drawn from this the

level of fear Panic the level of

anxiousness the oh my God the world is

ending YouTube videos from Financial

influencers this has gone to a whole new

level and I'm going to step in here and

use the same tactics they use the

clickbait to get you to watch a video

that contradicts everything you hear

about this so yes this video is titled

probably something like the world is

ending 2024 I get it because otherwise

you don't click but now that I got you

here please listen because I'm about to

say something that is completely

contrarian to everything you hear on

mainstream media and social media I'm

going to save some people from

horrendous horrible decisions out of

emotional anxiousness and I'm going to

do that by explaining what happened why

it feel feels worse than it really is

and how you can use that to make money

so I'm going to do my good to counteract

the BS you're seeing on YouTube and Min

stream media right now so let's talk

about it now what I do on this channel

ultimately is help everyday people like

you like me you know I'm not different

than you to get to financial success

through

investing now the problem here is that

there's a lot of emotional

distractions that interfere with that

goal I have and my goal is for all of

you to make money but you have to

understand that there's a lot of sharks

in the water on the one hand Wall Street

wants you to panic and they want you to

get excited they want you to buy at the

top and they want you to sell at the

bottom and they want to keep doing it

every time so they can make money so

they can have their Porsches and the

Ferrari and in the

Lambos now look I don't drive a Porsche

not Ferrari not Lambo I drive a

5-year-old beat up car and I'm happy

with it I'm don't need that but they are

there to get you for them your pigs pigs

being led to the slaughter and they are

the Wolves and the main culprit to what

they're doing and it's important to

understand that is mainstream media

mainstream media is in full Cahoots with

those people not officially I mean they

don't have a deal to screw you over but

there's a clear understanding that what

mainstream media does is create panic

when stocks drop so they can get clicks

and add Revenue money and attention

that way pushing the agenda of Wall

Street to buy cheap and when the stocks

hit the top they push Euphoria again for

you to click they make the ad Revenue

Wall Street Sals and they repeat that

cycle every few years there's new people

that join the market every few years and

they do it to them again new suckers new

victims now I'm going to counteract this

whole thing with one simple video and

today it's going to be very very simple

now look unlike this media noise you're

hearing right now unlike the end of the

world YouTube thumbnails which actually

have end of the world YouTube videos not

like my

clickbait the YouTube oh my God this is

the apocalypse this is over and all this

crap this is a market correction a

market correction is way more common

than you think and smart investors use

Market corrections to make money and

after this video is over you probably

will be able to do the same should you

choose to do so so over the past week we

have seen the S&P 500 drop 3.2% you know

Tesla is down 14% crowd strike is down

almost

30% we got tsmc down 9% Google down 5%

Nvidia is down 6% paler my love is down

6.5% so the markets are currently on the

pullback on a correction now allow me to

explain a 3.2% drop in the S&P 500 is

not even the definition of a correction

a correction is a 10% correction that

happens every other year according to

the statistics we have in front of us in

the past 20 years half the time 10 out

of 20 years had a 10% correction on the

S&P 500 so every other year the S&P 500

drops 10% it's normal now what's not

normal is that didn't happen since 2022

not in 2023 and not this year we still

didn't have a 10% correction so what's

the outlier here is not the correction

is the fact that it took 18

months and we still don't have it we

still are only on a 3.2% correction

right now even if you measure from the

peak to the Troth and you go and you

measured it and I'm going to show it

right now let's measure from the peak to

the Troth so S&P 500 at the peak right

was

at 500

67 right that's on my notes July 16

that's the peak right now we're 4500

that's a 4% drop even if you go and you

stretch it out and you mag pck to tro

not the last week it's down 4% so we're

not even in correction territory yet so

this is nothing I know some of you have

joined the market over the past six

months and you think this is a

correction it's not now the other thing

I want to show you here is history and

data not emotions and gut feelings when

you have gut feelings go to the toilet

look the S&P 500 over the past 96 years

until the end of 2023 let's use the end

of 2023 as a cut off date so we're not

going to do this mid year right so if

you measure 10 years in those 100 years

from whatever point you want so 10 year

increments after one year after two

years after three years after four years

in an 100y year era well 96 to be honest

so there's a lot of 10year periods in

those 100 years you know the crazy part

about it 96 % of the time those 10e

periods wherever you place them on the

100e Spectrum 96% of the time you will

have a profitable year in the S&P 500

96% of the time a decade inside the S&P

500 for the past 100 years is positive

now you can debate all you want about

the index funds being dangerous but a

96% on a 10-year investment is not a

dangerous thing you can't tell me

that now the average S&P 500 return for

the past 20 years is 99.5% which is

normal we all know this by Heart Right

10% S&P 500 fine but if I take out the

best 10 days for the past 20 years so

basically I remove 10 days in 20 years

the best 10 days I pick and choose and I

remove them that return drops from

99.5% to

5.3% by removing only 10 days in which

you're not going to be in the market for

whatever reason your return drops from

9.5 to 5.3 by half Eddie I want half

Eddie half 10 days and 20 years the

crazier part if I remove 20 days if I

remove on average a day per year and I

just choose the best days that return

drops from 99.5% to

2.6% if I remov 30 days the 30 best days

in 20 years you made

4% in 20 years congratulations but why

did yesterday felt harder and more

painful than regular red days we've seen

over the past few months because we did

have red days right but this one felt

extra why well number one the S&P 500

dropped 2% on a single day that hasn't

happened since February of 2023 number

two the NASDAQ dropped by 4.6% on a

single day which is very painful and if

you measure Peak to Troth July 10th

which was the peak for the NASDAQ was

500 we're down 8% from that that is very

painful now the max 7 dropped

5.6% it's a lot that doesn't happen a

lot the last time these stocks dropped

more than 5% in a single day was in 2022

a long time ago before that 2020 this is

not a common thing so we did have a

strong correction 100% 100% so now the

question is what should you do we

understand what happened we understand

why it felt way more painful than the

usual common red day but what do you do

now how do you make money off of this

well let's use facts over emotions shall

we okay so look at my portfolio from

January of 2023 until yesterday I was up

160% 160% my portfolio is extremely

simple penter 40% % S&P 500 40% Tesla

20% I was up 160% on my portfolio in 18

months now if you look at the videos

I've done on the channel since January

of 2023 until now in the past 18 months

I have covered nine stocks all of which

got a bullish rating for me now those

nine stocks are Google Tesla paler crowd

strike bung Sofi AET smci and Nvidia all

of these stocks were green all of these

stocks were green not a single one was

in the red the average return was

123% so not as good as my portfolio but

123% in 18 months that's some good

content right there even the S&P 500 on

its own did 41% in 18

months the NASDAQ did even better 80% as

of January 2023 so if you you measure

this on a monthly basis over the past 18

months the S&P 500 gave you 2.2% per

month Non-Stop and the nasda gave you 4%

per month non-stop that is literally

double than the normal for a year and a

half straight

non-stop now do you think that lasts

forever do you think this can continue

into eternity without Corrections

without pullbacks I mean the market

doesn't work like that if you joined six

months ago it sure seems like it but

it's not how things work if you have 18

months of insanity it's going to end up

with a correction with the pullback it's

healthy it's normal it happens all the

time now look at a stock like smci and

this is the point where I want to make

here that you should watch these videos

I make them for fun but they have a lot

of value look when I spoke about smci

for the first time back in August of

2023 and I said look this stock at

$253 is insanely undervalued in fact the

title of the video was I'm buying this

over

Nvidia now obviously I wasn't wrong so

the stock climbed all the way to $1,200

from

$253 that's

374 per in 6 months of profit now what

did you do with this profit now once you

do 374 in 6 months it's kind of obvious

that you are in a parabolic euphoric

Spike and it's not going to going to

last forever that is why in March of

2024 at about $1,000 per share not at

the top I don't TI the market but when

this thing hit $1,000 which is four

times more than my initial video I was

like guys this thing ran its course I

literally posted a video in March of

2024 go back and check me saying hey is

it a good idea to buy smci at $1,000 and

in that video and you'll see a clip in a

second I said very straightforward

things check it out this company

actually builds the servers that house

the Nvidia AI chips the same AI chips

the entire Market is going Gaga over

well these chips have to go into certain

servers these guys build the servers

that's why I like the correlation to

Nvidia stock back in August but at some

point because they don't really have

aote at some point somebody can come

along and build similar servers at

cheaper it's a huge problem you have to

be aware of it's a massive massive risk

that's why I think this company is not

the next Nvidia they don't have the know

the IP and the Protections in the mode

of Nvidia that's not the next asml you

have to be very very careful don't be

confused don't go all in at one price

point don't get excited and buy into a

parabolic spike that's not how you do it

wait for some weakness before starting

opening a position as you just heard I

told you this ain't Nvidia don't buy

into a parabolic spike wait for weakness

to open the position and make sure you

understand that these guys have no moat

which means they're not the next Nvidia

there's a lot of risks there I gave you

a warning at a th000 bucks saying hey

this thing is running up way too hot now

whether you sold it or kept it or bought

it it's your business but on this

channel you got a warning this is

literally like the cany Roger song you

got to know when to hold them and when

to fold them and something runs up 400%

in six months it's probably a good idea

to start thinking about taking profits I

literally told you this in the video I

gave you a warning now at this point

this is water under the bridge it's in

the past who cares now now we're talking

about a whole new enchilada a whole new

situation right now smci stock same

stock that was trading at $1,200 when I

made my video telling you hey be careful

now it's trading at

$700 which is a 40% discount from the

peak now it gets interesting again this

stock right now if you want to be a part

of it if you wanted to DCA into smci and

it's your decision and your analysis but

if you like this stock this is a better

stock it's $700 than it was at

$1,200 so instead of fing into a

parabolic spike wait until weakness and

start dollar cost averaging into the

stock just like you can do here with

smci now look I'm not telling you to buy

or sell this ain't Financial advice for

the love of God understand that but I'm

using this as an example to show you how

formal in emotions can work both ways

and look if you don't want to get

rattled by a day like yesterday you got

to have a plan you have to understand

what are your goals where are you're

trying to get so you don't get mad you

don't get anxious and you don't panic if

you are a Trader right it's probably not

a great environment for you right now

right you have to think about stop

losses you have to think about you know

letting go of some of the losers to

manage your portfolio Traders is one

thing and this is a very volatile time

for them probably not the best days to

be a Trader if you had long positions

but if you're a longterm investor if

what you do is invest for the next 10 15

20 years this is a kid in the video

games store situation because right now

you have so many options to dollar cost

average and open new positions or reduce

the cost on your existing positions on

such great companies this is a bad time

to be a Trader but a really really good

time to be a long-term investor we'll

talk about one specific stock in a

second which I really like out of this

list but let me show you right Tesla is

now 10% cheaper I got it my portfolio

I'm not going to reanalyze Tesla for the

thousandth time right pener is down 6

and a half% Nvidia the entire Max 7 is

down you know the S&P 500 the index if

you want to get in the index that's down

like 4% the NASDAQ is now 8% lower than

the peak tsmc and asml the two leaders

of semiconductors are way way cheaper

like 10% cheaper crowd strike is now

down 30% 30% in just a few days so let's

take a look at crowd strike as an

example of how you can make money

because of sentiment circumstance and

days like yesterday now look crowd

strike is a stock we've been covering

here since 2021 for a long time it ain't

new in fact from my previous video Until

Now despite the 30% drop it is still up

70% now this company has absolutely a

whirlwind of issues to deal with right

now hearings lawsuits compensations

100% is it a career Ender for this

company is this a company ending

cataclysmic event hell to the no it's

not going to happen sure they take some

damage but this thing is far from being

in danger of closing or shutting down or

losing their dominance in the market

look at their numbers the company had

35% increase in Revenue the past year

186% increase in net income it has five

times more cash than debt I'm looking at

this I'm saying so the stock dropped

30% where the entire business is

exponentially doing better than the year

before and it's already a global lead

leader almost a quasi monopolistic

leader in its industry think about it if

crowd strike wasn't a Monopoly with a

little software update from crowd strike

shut down 70% of the Western Hemisphere

you have to understand how big this

company really is What's the magnitude

of what they do given how insane the

result one little software update had

they'll get out of it so my price Target

based on the five-year model is in the

bare case

$614 that's 140% increase 750 in the

midc case which is 190% increase and

$886,000