Bear Market - How to InvestMar 02, 2022
The market has been all over the place lately, so in this video, I'm going to be talking about what the heck is going on in the market?
Is it a bear market?
Do we have a bull market that's crashing?
What do we have here?
I'll talk about that in this video.
Bear Market - How to invest
Hey everybody, Mark Yegge Wealth Architect. And in this particular video, we're going to be talking about what the heck is going on in the market? Like, do we have a bear market? Do we have a bull market that's crashing? What do we have here? We'll talk about that in this video Hi, welcome back, I hope seven eight figure investors play offense and defenses with their finances. And a lot of people are asking me right now, is the market gonna crash? Well, it's not like it's gonna crash. Like, a lot of people think the crashes just happened overnight, right? And there are crashes that have happened overnight. 1987, we had a big stock market crash like 2009, we had a big stock market crash. But the problem is what happens before and after these big crashes? Right? How do they recover? How do they come back? Will they come back? Do they keep going down? Well, there's two kinds of markets, there's bull markets and bear markets. Bull markets are like what we've had over the last 10 years, right? No matter what you do, you could put a list of stocks on the wall, and you can throw a dart by one and chances are, you're going to be able to make some money. Not that simple. But it kind of works like that things go up, right. And that here's why that is right, the denominator is going down, the dollar is losing value. And so as the dollar loses value, it makes everything go up. Now, there have been some good companies in there that are making money and increasing earnings and all this stuff that stocks do to continue to go higher. But that's generally a bull market if you know, things go down and people buy the dips and keep driving things higher. By and large, the good stocks, right, the other ones are all crap anyway. And they go down. Now, in a bear market, the opposite happens, right? So when we buy the dips in a bull market, in a bear market, we're basically on our way down, that didn't have to have a crash. Today, we're looking at a 700 point decline in the Dow Jones Industrial Average. So you could argue that that's a crash, it's really a 2% decline. It's not a CRASH CRASH, it's like 10%, or 8%, or some crazy thing, but it is part of a bear market that is shaping up. So I'm gonna show you a chart here in just a second, you're gonna see, every time the market makes a new kind of a peak, it's a selling opportunity for people and they sell and they drive it down and down and down. And if you think about what's going on, we have an inflationary environment. Right. So prices are going up, when prices are going up, people spend less. When people spend less, companies make less when companies make less, they have to report lower or slowing or slower growth on their earnings going forward. Since stocks trade on their earnings going forward, if you have a deceleration in growth going forward, you now have a deceleration in the stock price going forward. So you see these wild swings. And people use these really great stocks, like the ones you know what I'm talking about: the Amazons and the Netflix's and the Facebook, the stocks that were just killing it over the last 10 years. They use those as sources of cash, and they take those sources of cash, and they buy safer investments. Okay, now what is safer, that's not for what we're going to be talking about. What I am talking about here, though, is that bear markets can last a long time. Now, we're not used to that. We haven't seen a bear market in a long time, right? The last one we had, which was a kind of a bear market, was in 2007, and eight, and we have lots of declines. We had lots of basically crashes within that. And then we had declines for almost a couple of years before we finally had a capitulation at the bottom. So right now, I don't know when there's going to be a capitulation, it's coming, there's always college capitulation coming, but the macro environment is such that people just don't feel like things are going to grow. I mean, we even have the Fed coming out this week, and they're going to post some minutes about how they're going to raise rates or not raise rates, I don't know what they're gonna do, I don't think they're gonna really be able to sustain a raise, and they're behind the curve, and there's kind of screwed. And basically, we're all screwed because we have a huge amount of inflation that's coming. And that's going to be reflected in a lot of assets. Now, it's probably good for the short term if you're in real estate, because those assets will go up. Actually the dollar is going down. Oh, forget that. But they'll go up. So what do you do? Well, it's pretty hard to find a safe haven, anywhere in a bear market, because people are just doing a cash. The problem is cash is inflationary. And so if you're in cash, you're losing buying power. I think it's about 20% a year the government will tell you at seven and a half. I don't know what basket of goods they're using, but I can tell you, my gas isn't up seven and a half percent. My eggs are not up seven and a half percent. Everything I own has gone up. You know a lot more everything I buy any service or product is not, you know, seven and a half percent up it's up more like 40 5060 Double lumber is up 160% building anything. It's costing a lot more so these macro things are now they used to be tailwinds. But now in this environment, they're headwinds, that creates uncertainty and doubt. Whenever you have fear, uncertainty and doubt what we call that Fud. And that's what a bear market is made up of. So don't be lulled into that by the dip thing, I'm going to buy things when they're on sale, because as soon as you buy them, right, because they're dipping, they can go down a lot more and a lot faster. So the big money right now is using the peaks in the market, the little peaks that are coming up, you know, on these bounces, to use them as selling opportunities to raise cash. So be careful with that. What do you do? Well, there are assets that are not deflationary, there are assets that are not subject to inflation. There are assets that are basically safer havens. Give me an example. Now, if you're on this channel at all, you know that I'm a Bitcoin fan, and a crypto fan, but primarily Bitcoin. Bitcoin has scarcity, you can't make any more Bitcoin, you can make as many dollars as you want, we've proven that we've made 35% of all dollars ever printed. And just in the last couple years, right, there's no cap on dollars, there's a cap on Bitcoin can only make 21 million of those. You can look at Gold and Silver and commodities, because that's what people need during these times, right, they want to go towards safer investments, you can even look at things like wheat, food, everybody still has to eat. Right? So those things hold their value. So those are some of the places that you can start to look, I really, you know, we could get into another discussion about Bitcoin and all that. And I'm not going to hear but based on some of the things that are going on in some countries, and right now we have the Russian Ukrainian situation going on. And bitcoin is saving some of those people that were had the foresight are able to use the Bitcoin networks that are out there. The same thing happened in Canada, when they froze people's bank accounts, people are starting to realize that you know, what the bank accounts that are sponsored by the government. And you know, here in the United States, and in most countries, they're sponsored by a centralized Central Bank, if they have the ability to limit what you can take in and take out and I saw this happen in Greece in 2013, when they limited the amount of money you could take out to 400 euros, you couldn't take out more than 400 euros, right? You could have a million euros sitting in the bank, but you could only get 400 out and the whole country could only get 400 out so there was a huge amount of capital controls that basically held everybody back and held the economy back. And it really hurt Greece. Can it happen here? Can it happen everywhere else in the Western world? We're starting to see it. We're seeing it in Russia. We're starting to see it in Ukraine. It's happening in Poland and Bella rousse happened in Canada. Could it happen here? Yeah, like you're good. So you got to have a backdoor. How do you have a backdoor? Well, for me the backdoor is Bitcoin because nobody can touch Bitcoin, long as the internet works. And I think that nobody can touch Bitcoin. Now somebody takes down the whole power grid and takes down the whole internet and all 15,000 nodes around the world, which I think is pretty close to impossible. It's like saying, we're going to remove all the plumbing from the world, like, pretty sure you can't do that. To me. That's the story of what you have to do in these bear markets. Are we in a bear market? I think we are. Can you do something about it? Can you make money in a bear market? I'm looking at my screen right now. I'm up 18%. In the six weeks since we started the new year, and the markets have gone down, I think about 12-13%. And I'm you know, I'm up, my hedge funds are up. So you can make money if you know what you're doing in this market, even in the stock market, by the way. So, listen, please, if you like what I'm having to say, like and subscribe, it helps the algorithm, get more people involved in this. I love making these videos, but I can't do it forever, or nobody's going to watch them. Or if just a few people are going to benefit from them, I think we can all benefit from having some more information that is not biased. Well, maybe you get a little biased for me, but that is not filtered or centered by any other centralized authority. And to like or subscribe is a small price to pay, which is zero, for getting this kind of information. And I'll keep continuing to post these kinds of videos for you. So thanks for being here. By the way, if you're interested in a cryptocurrency hedge fund that I run, we're looking at a long term play on it. It's for accredited investors only. And I have more information if you want to click at the bottom to get information on that cryptocurrency hedge fund. I have other hedge funds in the stock market but I'm not here to talk about that. Just want to warn you that we are in a bear market and I hope you take it seriously and invest accordingly. See you next time.
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