Stock Market Tanks 650 Points Fast! Why? Will it Continue?

by birtanpublished on October 27, 2020

Well holy smokers guys did you see the stock market today look at this dow jones industrial average down about 650 points here today look at the s p 500 down 1.86 nasdaq down 1.6 i think at the lows today the dow was down close to 800 points so just a massive day down here today for the u.s stock market the dax over in europe right down 3.71 last night massive massive move down for the dax there look at crude oil futures contracts down over three percent here today big downward move

For the crude futures as well okay we see this this is a huge move down this is the worst day for the stock market in over a month and a half okay over a month and a half this is the worst day here today we have a lot of people saying there's going to be more drama in the stock market a lot more turbulence over the coming weeks let's just put it that way a lot of folks saying that so in this video i want to answer a couple questions why did this happen here today okay why the market moved down 650 points just out of nowhere

Will this continue that's what we're mostly going to talk about in this video like what should we expect from this stock market those are two things we're going to get into in this video here today some folks are scared of a stock crash of any kind they do not want the stock market to go down some folks would gladly welcome a stock market crash it really depends on kind of a couple things okay one is do you have some cash around right if you have some cash around you usually want assets for lower because you can buy them for cheaper

Right and also your age right if you're retired you probably don't want a stock market crash however if you are younger you would love the market to go down 10 20 30 hec 50 you know if you're younger because you can buy in for cheaper and cheaper stocks okay so it's kind of two ways of looking at it there if you don't mind go ahead and smash that thumbs up i appreciate each and every one of you that are part of the thumbs up squad also if you want to apply to try to get in my private stock group you can do there

Down in the description area is the first link down there all right alrighty guys let's start getting this so first i want to get into the main reason why the market was down huge today okay rony rona is going beast mode let's just put it that way u.s sets roney rona case record amid new surge more than 85 000 new cases of the v were reported across the country on friday shattering an earlier single day record in stirring new fears about the months ahead when it comes

To the roni ronan i mean it's just going beast mode there's no other way of putting it okay average daily new roni rona cases in us hit all-time high gottlieb warns of exponential spread now at this point in time this chart here shows you the roni rona cases over time and just look at that i mean we're the we're the highest we've ever been let's just put it that way so i mean i remember when you know they thought it was really bad in the springtime right

And we're just like we're crying we're crushing those numbers and i don't know if that's a good thing or not i don't think it's a good thing okay white house chief meadow says we're not going to control the pandy after ronironi cases hit record hi you know i saw that and i just you know i don't know what to say about that and i mean it just kind of sounds like it's it's just gonna happen it's gonna happen and it's gonna get worse and we're probably gonna go to you know uh six digits in terms of new

Cases per day at some point in time over the next month or so it just sounds like we're kind of just you know at that place now that's just the way it looks okay he says we're not going to control the pandy meadows told cnn we are going to control the fact that we get vaccines therapeutics and other mitigations is what they're saying there so you know man i don't know what to say other than you know it just kind of seems like the government's like you know

Whatever's gonna happen here is whatever's going to happen so it is what it is at least as far as the spreading of the roni rona european nations are returning to restrictions as the v surges over in europe is going crazy over there as well new regulations and social distancing rules are being introduced across multiple european countries in an attempt to stop the spread of the roni rona as a second wave of the pandy accelerates across the continent europe reported more than 1.3 million

New cases this past week 1.3 million new cases past week that's a huge number okay it's highest single week count yet according to the world health organization massive okay there are now five mike pence aides that have tested positive for roney ronan at this point in time so obviously we know you know a few weeks ago trump had verona right now there's a lot of people around the vp that have the rona so you know i don't know what's going to happen there but there's just a lot of

People in general you're hearing about more and more big people too that are getting roney rona like i follow sports and i've seen a lot of people over the past month or so that are actually big names in in sports um actually come down with with the roano whether it's actual like sports players or like you know coaches and things like that okay and i'll say if it gets bad enough i even might have to make some changes in my own life because i haven't really like

Like like as this whole thing's gone on my life has been pretty normal like i wake up around the same time i kind of do the same activities i haven't treated things that much different other than obviously i'll like social distance if i go somewhere or and i wear a mask and things like that but as far as like going out to eat going to stores and things like that like i do just as much as i've ever done like we go out to eat like at least once a week every single week uh going to stores

I don't really like feel concerned i've always been a germ freak so i always take some sanitizer with me and i wear my mask and things like that but it hasn't really concerned me because at the end of the day i'm a numbers guy and i look at the numbers and i'm like there's this extremely low probability i would get the ronin because it's just not enough like as a percent of the population just not enough out there to you know really really like scare me in any major way

But i will say if we started going to like you know here in nevada we started going to some of these other numbers that some of these other states are on you know i mean that would maybe change my perspective a little bit and i might say you know what maybe we won't go out tonight let's just go ahead and eat in tonight something like that and the fact is there's a lot of people out there that if the numbers get higher and higher and higher people are going to say man my probability is if i go out

If i go somewhere i'm going to have a pretty decent probability of getting this thing and i don't really want to get this thing not just because people don't want to get it for themselves but sometimes people don't want to spread it to elderly family members or friends or things like that so that's something very very important to keep in mind there so there's definitely a lot of folks that could be thinking like that and at the end of the day rona going crazy equals a slowed down economic recovery we know we already hit the bottom right

When everything closed down and so we're trying to recover now but if rona's going crazy it's gonna slow things down it just will it will change mentalities even more people get more scared if they see these numbers continue to go higher and higher they'll pull back on spending going out things like that and it will slow down the economic recovery there was a lot of hope that you know we could get into a stronger spring and summer that could be pushed back more essentially if we have a really weak winter time okay so this is something

Very important the rona also going crazy can equal a lot of city and state restrictions more restrictions you know i mean think about it this way right europe is having a bunch more restrictions put on now right after they loosen up things and i think there's a lot of cities and states that if the numbers go high enough and get bad enough they'll start putting on restrictions once again okay and so that's obviously if you're thinking about economic growth

And company numbers and things like that it's all stuff that's just bad and it's bad for the stock market it's bad for the economy right and if you look at the worst stocks in the dial 30 here today it's telling you that exact same story look at the worst stocks in the dial 30. the worst stock here today was american express why because american express is all about people spending money i mean it's you know is about as good of a a look for the economy as possible if in

Terms of like what is american express doing for numbers what is visa doing for numbers super super important because if people are doing a ton of transactions spend a ton of money it's obviously a very good thing for american express and visa right but obviously if there's a if there's a pullback in spending in a major way it hurts companies like american express in a major major way and that was the worst stock today in the dow 30. look at the second worst stock in the dial 30 here today

Boeing what does boeing do okay well they do they have many different business lines but the main one is they sell new airplanes okay aircrafts commercial aircrafts and obviously you know if we're talking about rona going crazy over the next coming months it's just going to hurt the airlines even more the the more and more the airlines are hurt the more and more they have to push back any new orders from boeing over time it's travel right salesforce was the fourth worst stock in the dow here today that's a high

Growth company that obviously a lot of folks maybe have some fears around how much are they really going to be able to grow if we have a slowed down economic environment look at disney disney's huge into what sports theme parks disney has many businesses but sports themes parks also their movies end up where mostly movie theaters and all that it's more questions than ever and look at disney it was a fifth war stock in the dow 30 here today and you're

Getting the complete opposite when you look at basically the best stocks here today in the dial 30. look at this okay the the only stock that technically finished green here today on this day when the dow was down 650 points was apple look at apple because apple at the end of the day it's it's just super solid and it's apple and they're gonna probably have a very successful iphone launch regardless of whatever happens out there they're just a free company some some some companies are just special like that apple's one

Of those special companies also more folks working from home guess what that means more even more orders for macs ipads things like that so the company actually finished up today that's amazing right and then you look after apple and it's all safety place right verizon communications safety play procter and gamble safety play johnson johnson safety play amgen safety play walmart safety play merc safety play

Every single stock that was better than what the market was today all straight safety plays because essentially when you have this type of big volatility come in and a big move down the stock market what do people want to do when i say people i mean investors and funds they run to safety they say where's the safe place the safe place is a verizon stock a safe place is johnson and johnson stock the safe place is walmart stock that is the way they look at it in the end so you're

Clearly seeing a massive difference between the places you got to go to an experience and be around people and things like that versus the safety plays like you know they sell toilet paper and tissues and and like tylenol stuff like that right i mean it's just a massive massive difference between the the stocks that did well today versus stocks that did awful okay i had a couple stocks actually finished green today i was fortunate stitch fix being one of them

But stitch fix what are they why is that stock up here today well it's an online shopping company right and so if you think about the mall environment and you know let's imagine ronnie running gets much worse might definitely be some fears about people going out okay and so maybe not as many people go out there and buy clothing and things like that from actual physical retailers somebody like a sich fix can benefit massively because they ship the packages to your house okay

And switch a data center company i think that's another move to a lot of people just looking at where's a safe place to put my money oh data center switch oh they're massive in the data center business hmm okay switch seems like a good stock to be in okay that's exactly how people are looking at it i had a few other stocks that were hardly down today compared to how the market was down right market was down 650 points and look at tesla miesla it was barely down it almost finished green here today why well tesla at the end of the day

They're you know they're a special company they're like an apple right they're they're a free company they're gonna do good regardless okay and also how many more how many people would want to go to like car dealerships and and try out the cars you know tesla you can just order it on on your smartphone in five minutes and a model three will be delivered to your house right cruisy doozy they make chips audio components that go in guess what apple devices mostly including probably

The new iphones right we'll see the tear downs of that elf beauty as a cosmetics company that sells very affordable cosmetics right and so that's a perfect play if there's any more economic danger out there and people still want to buy makeup guess where they go somewhere like an elf that has high quality products for very affordable pricing okay and so look at that there's just a clear difference in divergence look at this here okay this shows you the last 10 trading days and what we're gonna see is

Things are progressively getting worse recently okay in the last 10 trading days we have had seven down days and only three up days so 70 of the days recently have been down days and look at the downward moves are usually much more violent than the actual upward move so we're starting to get some real weakness in the market recently and keep in mind election day here we are we're a week away from election day okay which means there's going to be a lot of drama over

The next two weeks that's all i can say about that a lot of drama over the next two weeks remember we don't even know on election night usually you get basically the results and you know who's going to win or not we don't even know if we're going to know after the first day who's going to win this election we might not even know after the first week who's going to win the election because there's going to be so many mail-in ballots and ballots in general to start going

Through and you can't start going through most of that well it depends on the state but you can't go start going through most of that until actually the elections happen okay or like november 3rd okay and so you know that's going to be a big drama show let's just put it that way that is going to be absolutely a big drama show then you're seeing this okay stimulus deal before election looks less likely as pelosi pushes minutian

Over testing and so i mean guys it doesn't look unless there's a miracle it doesn't look like we're getting stimulus anytime soon okay and i mean that was a lot of stimulus money i mean we're talking about a couple trillion dollars worth of stimulus not like it's a small amount of money and it just doesn't look like it's going to happen and so if there's no stimulus happening when are we going to get it do we have to wait for like january

February march the market was kind of secretly planning on stimulus being announced somewhat soon and we've been hearing this for months and it just hasn't happened so now we might be waiting until all the way until 2021 likely for any type of stimulus deal to get reached in this whole situation outside of a miracle democrats in the white house have recently proposed 2.2 trillion and 1.9 trillion dollar relief packages so it seems like there's like a discrepancy of around 300 billion

Dollars roughly and some other you know minor details but at the end of the day the numbers are really really large regardless okay and there's a difference of about 300 billion dollars there and i mean jay powell's over there is like bro i could do 300 billion in three seconds like you guys need the money like i got it i got it right here man i i just print it real quick okay and so you know it's it's crazy there's just this disagreement

Over you know what is a potential huge package over you know a smaller amount of money of the package let's just put it that way a much smaller amount this might be my favorite wall street bets meme i ever saw right here right the j-pal money printer oh gosh this is still i still love that meme that's an old beam back from like march but my goodness that's still one of my favorites so look at this one here this is this basically this meme is basically exactly how it's

Been the last several months in regards to stock market and this whole stimulus deal it's like pelosi trump minutian they're like battling it out right then the market sells off on stimulus failures that they're going to be no stimulus right then the administration hints at a resolution then the market rallies on temporary news and then really known progress is made and i feel like we've been in this for literally like four or five months now this is the exact situation we've been in the stock market for at least like

The last four months where it's just like this cycle going around where it's like you know there's some hope and then there's no hope and there's some hope and there's some no hope and really no progress seems to be made and so will this continue okay will this whole situation continue well forbes did a really good piece a couple months ago a really good piece in my opinion done by forbes and it basically goes into how the stock market has performed before

During and after presidential elections and i showed a little bit of this in a video i did about two weeks ago or so okay and this is really important so you get some context unlikely where we're gonna go in the stock market nothing's ever for sure but we can get some context on where we're probably gonna go okay and what you're gonna notice is generally speaking going into the election the market's pretty decent okay for the for the the past months going into election

But what we're gonna notice is pretty much regardless of whoever wins the election usually for a month to three months after election usually the market's going down okay so i mean when you're looking at this whether trump wins or buying wins and people have different opinions i've seen a lot of people that are super confident trump's gonna win i've seen obviously myself who i think i think biden's gonna win easily you know everybody's got their own opinion out there

And that's fine whoever wins regardless the market's probably going down over the short term whether it's trump or biden in this whole situation okay that's just something to keep in mind it's nothing for sure but if you're looking at the odds and the probability the probability is we will be going down for the next several weeks if not the next couple months okay and so you got to think about it like what do you have to look forward to in the stock market for the next let's say two to three months okay

Is there anything that exciting going on for the stock market over the next two to three months okay this is what you're really looking at rona's gonna be going crazy okay that's just like facts okay i mean there's no other way about it there's no stimulus as of right now and there likely won't be stimulus until potentially uh maybe 2021 right there might potentially be no stimulus until 2021 and then number three you got election drama you got election drama and

Remember a lot of people after the election like to look at worst case scenario in in these whole situations so if trump's elected for another four years you know democrats are going to be saying oh my gosh it's the end of the world this is going to be so bad and there's going to be a lot of fears around that right if biden gets elected there's going to be so much talk about oh corporate taxes are going to go up that's going to hurt the stock market and taxes on rich people are going to go up that's going

To hurt the stock market you're going to have a lot of people looking at things as glass half empty like they usually do after election okay because you know basically half the country is going to be disappointed one way or another right and so there's going to be so much election drama and like i said we don't even know if we're going to we don't know when we're going to get the answer to who actually wins this election it is probably not going to be on election night we might have to wait days

Weeks or i hope not a month but potentially days or weeks after to really get an idea of who actually won the election okay and that's what we have to look forward to in the next two to three months that's not too dang exciting let's put it that way okay and so am i selling am i going to sell my stocks and say you know what since the market's probably going to go down over the next month or two no one knows for sure but it's probably going to go down for the next month or two

Am i gonna sell heck no absolutely not okay and here's why the selling and buying back game is too dang hard it just is ridiculous okay you can you think you can time things out and you could think you can look at charts and like oh well um the the stock market usually goes down oh my gosh we have rona going bad and there's no stimulus and there's like there's a lot of bad stuff to look at right now right

But it's just too hard to play that trying to time it out game and get in and out of stocks and oh i'm gonna sell out of my portfolio i'm going to buy back in my portfolio i mean we saw in march of 2020 what did we see mass selling in the market right dow goes 23 000 21 000 19 000 at lows it was in the 18 000 range people are selling out their accounts in mass figuring hey i can sell out and and you know the market's probably gonna go even lower and when the market goes even lower i'll be able to go ahead and buy back in and

We saw people you know consistently selling and selling and selling and how did that work out most people didn't you know were never able to get back in because there was a lot of talk about the dow was going to go to 15 000. 12 000 10 000 and it never happened i think the bottom was somewhere around i want to say 18 3 or so and that was it okay and so a lot of people ended up selling out and they were not able to get back in it's just so hard to time it

And in april so april we started having a comeback in the stock market right and we had this like initial come back and the dow went back over 20 000. and a lot of people looked at that and they said okay we had a bit of a bounce back here but we're going to go right back down we're probably going to go way lower than we were in march okay and you had a lot of people looking at that and saying i'm going to sell and i'm going to i'm going to buy back in after it goes down a bunch again okay and the problem with that is the stock market didn't go down again

It just kept going up despite all the bad news we had coming over the coming months i mean we had a lot of bad news it was bad news on bad news on bad news and a lot of that had already been priced in all of that had it already been priced in to be quite frank okay that's how you got the market to go from 29 000 to 18 000. it was a fastest drop of 35 percent in stock market history okay history it was absolutely insane okay so this whole timing thing is tough okay but i will say i will be

Ready to buy in heavier and heavier in this drama i absolutely have money ready to rock and roll if we get a bunch more drama and the market goes lower and lower over the coming days weeks or the coming months for the rest of this year i am 100 ready to buy a bunch of stocks okay if people want to sell off tesla stock and have a go to 220 i'll be there to buy it if dropbox people want to sell that stock and it goes to 17

I'll be there to buy it heck i'll be there to buy it at 19 as well okay if the fb people want to sell a bunch of shares and goes to 200 under 200 man i will gladly be picking up some fb okay if skywards people want to sell skywars one of the top players in 5g over the next five 10 years in my opinion and then i start goes under 100 i'll be there to buy it if winnie resorts i'm here to buy it right now but especially if it goes under 70 it goes into the 60s and 50s i will happily buy some winnie okay the planet which we all know sells jack

Jackson right if that goes to twos you better believe i'll be buying some more of the planet okay absolutely and so the main question is are you ready are you ready you got some money around in case we get some some weakness in the market and we follow suit with what happens in most election time periods where the market dips and sometimes dips quite heavily right after the election are you ready do you have some money ready to rock and roll i hope you do i

Hope you guys enjoyed this video as always if you don't want to smash a thumbs up i appreciate each and every one of you that helps out the youtube channel massively in the algorithm also if you want to apply for my private stock group and start taking stock market investing super serious you can do that it's going to be the first link in the description down there to fill out an application and if you're somebody that maybe you don't have much money around you're not ready

To take advantage of any deals in the market or things like that because you might just not have any money around check out a video i posted last night on financial education three top five side hustle ideas for 2021 uh you know hopefully you know it's one of those things if you got no money around man you got to make some money and uh there's so some side hustle ideas for you out there thank you for watching and have a great day

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