What's up Guys Dr. Ryan here with another
episode of Smashing Wealth.
In this video, I am going to go over if we
are in a STOCK MARKET BUBBLE.
We will be going over what a STOCK MARKET
BUBBLE is and I will also be walking you through
a thorough analysis to determine if we expect
a STOCK MARKET BUBBLE CRASH.
This video will dive into what the fed is
doing to artificially prop the stock market
up which helped create the STOCK BUBBLE 2020
I will also be answering a question I get
from the smashing wealth community quite frequently
which is "Should I invest in a STOCK MARKET
BUBBLE 2020 or should I wait for the next
STOCK MARKET CRASH"
This video will even take it a step further
and give you a step by step guide on how to
handle a stock market bubble, and steps you
need to take to ensure, that you protect your
stock market investments, if we have to endure
another stock market crash.
I will even be sharing with you what I am
doing my with my own personal stock market
portfolio to ensure that I maximize my overall
returns.
If you stick around to the end of this video
you will understand how to make money in a
STOCK MARKET BUBBLE BURST and how to profit
in the next STOCK MARKET CRASH.
If you perfect these strategies, and implement
them into your own stock investing strategy,
it will put you in a position to potentially
profit no matter what happens in the STOCK
MARKET.
So let's get into it!
The S&P 500 and the Nasdaq have just reached
new record highs. This is a point of time
that is critical in determining if we are
in a STOCK MARKET BUBBLE TODAY or if we will
have another MARKET CRASH.
If the STOCK MARKET doesn't move past its
current high this will signal a much bigger
problem. It may indicate that the market has
formed a double top.
This is a indicator that market can shift
into a bear market and we may be expecting
a pullback in the market. This can lead to
the long anticipated STOCK MARKET CRASH 2020.
The feds have succeeded, succeeded in sustaining
a speculative STOCK BUBBLE. They have artificiality
supported the economy and as a result the
stock market has failed to crash.
The reason I am saying that this is a STOCK
MARKET BUBBLE is because most of the economy
and the companies that make up the economy
are in shambles while the major indexes are
indicating that business is booming!
No one is paying attention to the fact that
the amount of debt we are accumulating is
far exceeding the output of our economy.
It's like if you had a credit card with no
limits and you just ran around charging it
up, with no thought in the world on how you
would eventually have to pay it all back one
day.
You have to ask yourself. Who is going to
pay this bill?
Well, I have a secret for you, your going
to pay it.
Your kids are going to pay for it. Your grandkids
are going to pay for it.
In this STOCK MARKET BUBBLE EXPLAINED video
It's no secret that the fed cut interest rate
close to zero. This means that the returns
individuals are getting in their savings accounts
and short terms bonds has plummeted.
What this means is that we are essentially
earning nothing on safe investments.
This has resulted in people shifting money
from their savings accounts and bonds and
moving their money to the STOCK MARKET.
This has lead to widespread speculation in
the STOCK MARKET. We have new investors buying
stocks just to buy them.
There is little to no market research, no
analysis of fundamentals, no reading of company
balance sheets.
All this is, is mass FOMO. People are seeing
stocks go up; they don't want to miss out,
their money isn't earning anything in the
bank...
So they wildly throw their money into the
STOCK MARKET. This is one way the fed is causing
a stock market bubble. This is also how they
are delaying a stock market crash.
First things first, don't get stressed about
the STOCK MARKET BUBBLE TODAY
You have to first identify the problem.
The biggest problem that is all over the stock
market news is that the like button is becoming
increasingly difficult to turn blue. There
aren't enough people Smashing the Like Button
hard enough to trigger it.
If you would take a second and Smash the Like
Button for Smashing Wealth it would mean the
world to me.
I am just going to come out and say it. There
is a huge STOCK BUBBLE FORMING . We are in
one of the biggest bubbles we have ever been
in.
You have to accept the fact that there is
a bubble and it's here. All the STOCK BUBBLE
INDICATORS are in full effect
But what is this STOCK MARKET BUBBLE MEANING
really?
A STOCK MARKET BUBBLE is when stock prices
rise above their value which is determined
by a system which values shares of stock.
I often time refer to P/E ratios to determine
if a stock or STOCK MARKET as a whole is overpriced.
The P/E ratio stands for the price to earning
ratio.
The average P/E ratio of the market is right
around 16. This means that if the price of
a share of a stock is $16 it is earning at
least one dollar per share.
If we examine history you will quickly realize
that whenever the P/E Ratio rises far above
16, the markets ultimately correct itself,
and we could have a STOCK MARKET CRASH.
Right now the current market has a P/E ratio
of above 30. We are currently around double
the average P/E ratio.
The other valuation method we have is the
Buffet indicator. This system states that
if the Stock Market Value is greater than
the GDP, the stock market is overvalued, and
is in bubble territory.
On average this Buffet ratio is 0.8 . Right
now we are at 1.8. According to the Buffet
indicator we are majorly overvalued and we
are likely have a STOCK MARKET BUBBLE on our
hands and a STOCK MARKET CRASH, coming in
the future.
This would be my STOCK MARKET CRASH 2020 PREDICTIONS
Now let's take a look at actions that you
should be taking now to make money in this
STOCK MARKET BUBBLE POP.
Everyone is asking the same questions.
Should you invest in the stock market bubble,
or should you waiting on the side lines with
cash in hand waiting for a stock market crash.
After all, you may be expecting that the STOCK
MARKET BUBBLE WILL BURST
Now, you have to realize that the STOCK BUBBLE
may keep inflating. It is all over the STOCK
BUBBLE NEWS that the big wigs in Washington
are blowing massive amount of air into this
STOCK MARKET BUBBLE after all.
It is possible to make money in this market,
but it will be a game of musical chairs. You
can invest your money, let the STOCK BUBBLE
inflate, and allow your money to grow along
with it.
Since this situation meets the STOCK BUBBLE
DEFINITION , it possible that the market may
still keep growing for a period of time.
With this being said, you have to acknowledged
that the STOCK BUBBLE POP may happen at anytime
with your good fortune along with it.
Now if you have a long time before you need
your money, you can hold your positions through
the MARKET CRASH and wait for your stocks
to recover again, over time.
A STOCK MARKET CRASH usually recover relatively
quickly. There was that one MARKET CRASH in
1929, that took over ten years for the market
to recover, so you have to make sure that
time is on your side with this strategy.
Personally I am very risk adverse, so while
I do have some money in the market right now,
which will grow as the bubble inflates, I
also have a strong cash position so that when
the stock market bubble pop happens, I can
rush in and buy up equities during the STOCK
MARKET CRASH 2020
Let me know what you are doing with your money
down below in the comment section.
Now there are a whole bunch of people out
there who are super optimistic and they think
that this STOCK MARKET BUBBLE will inflate
forever.
To properly put this in perspective for you,
please allow me to take you, on a quick walk
through history
If we examine the Roaring 20's, this was a
period of growth and prosperity which was
directly followed by the great depression.
During the 1960's bubble , we had the Nifty
50 that was holding the market up and creating
a STOCK BUBBLE MARKET which loudly popped
for all to hear.
The dot coms drove tremendous growth through
the 90's. In the 1990's everyone was saying
that trees can grow to the sky but they failed
to realize that trees can be cut down or fall
over.
This tree fell over in 2000, and we had a
STOCK CRASH.
In 2008 we had the huge housing bubble, and
you probably remember that one.
Since 2010 our stock market has been going
up and up and up. Even before the Roni Rona
hit, our STOCK MARKET was over valued.
Now with the economy barely on it's feet again,
it isn't possible that the stock market can
justify being valued at a price that is higher
than it was pre-Rona, which was a point in
time where it was already overvalued.
If the market was overvalued pre-Rona and
it has risen to new record highs now, that
means that an already overvalued market has
become substantially more overvalued.
We are no where near an economic position
that we were in pre-Rona. Unemployment rates
are above 10%.
Millions went from being temporarily laid
off during the MARCH CRASH 2020 to permanently
laid off now.
The economy as a whole is currently in a recession.
The future overall outlook is completely up
in the air. No one really knows for sure where
the future will take us.
It is all over the STOCK BUBBLE NEWS that
people are saying that this STOCK BUBBLE isn't
really a bubble because it's value is justified
by the FAANG stocks.
This includes Facebook, Apple, Amazon, Netflix,
and Google parent company. During the whole
Roni Rona situation these stocks have done
extremely well. This is true.
These companies collectively represent more
than 20% of the S&P 500.
Everyone is always talking about the S&P 500.
If you stop to think about is , It's really
all about the S&P 5.
They are saying that since the S&P 5 are doing
soo well right now, and since it makes up
a big chunk of the major indexes, this justifies
the indexes reaching all time highs now.
I don't completely agree with this argument.
It would be one thing if the individual share
prices of most companies in the S&P 500 were
going up in price across the board.
But the fact is it isn't
There are multiple sectors of the market that
are lagging.
I am talking about the industrial sector.
The energy is seriously lagging
The financial sector is doing terrible
These are absolutely major sectors of the
market and the economy as a whole. It would
be silly to think we are anywhere near doing
good as a country if we are still seriously
lacking in so many areas.
If the stock market moves higher without these
sectors, the market will look more and more
like a STOCK BUBBLE FORMING. I don't believe
you can justify an index reaching new all
time highs in the midst of a recession just
because five companies are doing extremely
well.
I will be patiently waiting for the STOCK
BUBBLE BURST
I have created another video which goes into
detail on why the stock market is going up
and turning into a stock bubble.
I will link to it up above. Just click on
the "I" in the upper right hand corner of
this video and you will gain access to it.
Question of the Day!
Do you believe that we are in a stock market
bubble?
Drop a comment down below in the comment section
of this video and let me know.
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I hope you enjoyed this video on the stock
market bubble and why a stock market crash
is on it's way
Thank you for your time and support
This is Dr. Ryan, until next time, Have a
Smashing Day!
