The 2024 Stock Market Crash Explained - (DO NOT Make This Mistake)
Published: 2024-08-05
Status:
Available
|
Analyzed
Published: 2024-08-05
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The Federal Reserve may cut interest rates sooner than expected (September) if market conditions deteriorate further.
"if markets continue to go down the Federal Reserve Bank might start inflating the markets they might start stimulating the economy by cutting interest rates sooner"
Pending
The Federal Reserve President has observed a rise in consumer defaults, with Americans maxing out credit cards and struggling with car and credit card payments, indicating growing economic concern.
"consumer defaults are rising and what that means is he is seeing now the Federal Reserve Bank president has now observed that regular people regular Americans are maxing out their credit cards and they can't keep making their car payments they can't keep making their credit card payments which has them a little bit more worried about the economy"
Pending
Following the 2020 pandemic, the Federal Reserve 'fixed' the economy by printing money (quantitative easing) and injecting it into markets and the government.
"if the federal Reser Bank comes in and quote unquote fixes it by cut interest rates by printing more money what would they do well to answer that question let's go back a little bit and let's talk about what happened after the 20120 pandemic when the economy was in freef Fall the Federal Reserve Bank quote unquote fixed it right because they opened up the money printer they started quantitating easing meaning they started printing money they started giving this money to the government they started injecting this money into the markets"
Pending
The Federal Reserve may cut interest rates sooner than expected if market conditions deteriorate.
"well if markets continue to go down the Federal Reserve Bank might start inflating the markets they might start stimulating the economy by cutting interest rates sooner"
Pending
The Federal Reserve has observed rising consumer defaults, with Americans maxing out credit cards and struggling to make car and credit card payments.
"he is seeing now the Federal Reserve Bank president has now observed that regular people regular Americans are maxing out their credit cards and they can't keep making their car payments they can't keep making their credit card payments"
Pending
Inflation, which began in 2021, continued through 2023 and remains a current issue.
"well that inflation problem continued 2021 2022 2023 and it's still around"
Pending
Previously, the Federal Reserve indicated they would not start cutting interest rates until inflation reached 2%.
"the Federal Reserve Bank used to say before a couple months ago they used to say that they're not going to start cutting interest rates until they see 2% inflation"
Pending
Deflation, where prices fall, is considered detrimental to central banks and governments, although it may benefit individuals.
"that's called deflation and it is a nightmare for central banks and the government and you might say well why deflation is good for people it is bad for the central bank and it's bad for the government"
Pending
The US government currently has approximately $35 trillion in debt that needs to be repaid.
"right now the United States government has around $35 trillion worth of debt that they have to pay back"
Pending
Over the past five years, US wages have increased by 20-25%, while prices have risen more, and the S&P 500 has grown by over 80%.
"over the last 5 years we have seen wages in America grow by around 20 to 25% median income comes while the prices of things have risen more than that while the S&P 500 the stock market has grown by more than 80%"
Pending
The recent market downturn, including the NASDAQ entering correction territory, is considered minor compared to the significant market gains over the past five years.
"we've been seeing really hasn't been that much yet I mean yeah the NASDAQ has entered correction territory but just take a look at how much markets have run up over the last 5 years yeah we saw a little bit of a correction"
Pending
The Federal Reserve can create more money through quantitative easing (money printing) or by cutting interest rates.
"they can create more money by doing either quantitative easing or by cutting interest rates quantitative easing is when they start printing money"
Pending
During the 2020 pandemic, the Federal Reserve initiated a program to lend money to corporations by purchasing corporate bond funds.
"when the 2020 pandemic hit the Federal Reserve Bank created an emergency program to lend money to corporations by purchasing corporate bond funds meaning they were lending this money to corporations by buying a whole bunch of these bonds"
Pending
Americans are experiencing record highs in both credit card debt and overall household debt.
"the average person in America now has more debt than ever before credit card debt in America has broken a new record high household debt in America has broken a new record high"
Pending
The average new car payment has reached its highest point ever, and the average used car payment is now around $523 per month.
"the average new car payment is at the highest number we've ever seen before the average used car payment in America is like 523 bucks now a month"
Pending
A drop in mortgage rates to 4% would likely lead to increased demand for homes and more bidding wars.
"if mortgage rates were to fall to 4% tomorrow what do you think is going to happen everybody and their moms and their cousins and their sisters and your friends are going to want to go out and buy a home again too you would see more bidding wars on homes"
Pending
Recessions present significant buying opportunities, leading to the creation of more millionaires among the financially educated and savvy.
"recessions also create more millionaires than any other time the reason why is because they create great buying opportunities for those that are financially educated for those that are financially Savvy"
Pending
Dollar cost averaging involves investing a fixed amount regularly into the market, operating on autopilot.
"dollar cost averaging where you're investing your money into the markets whether whether it's your 401k whether it's your own Investments you're investing every week every two weeks every month you're just buying some funds and it's an autopilot"
Pending
Long-term investing requires understanding that market crashes are inevitable and using them as opportunities to buy more.
"the whole idea of investing for the long term is you're a long-term investor that you know that economic crashes to happen you know the market crashes are going to happen and those are times you just got to be able to withstand and buy more"
Pending
Two main investment strategies are passive investing (like dollar cost averaging) and active investing, which involves investing in individual companies.
"you have a passive investing strategy and an active investing strategy passive investing is what many people call dollar cost averaging... the alternative is an active investing style and active investing is now where you're investing in individual company"
Pending
Active investing in individual companies is recommended for only 2% of people; the other 98% should focus on passive investing due to time, interest, education, and psychological constraints.
"this type of active investing should only be done by 2% of people 98% of people should be doing passive investing because most people don't have the time they don't have the interest and they don't have the education and they don't have the psychology to do active investing"
Pending
Drip investing involves buying an asset in phases as its price declines.
"I call this drip investing where I buy in phases on the way down"
Pending
A significant portion of the speaker's passive investments are in dividend-paying funds for cash flow.
"when I invest passively the bulk of my passive Investments are for cash flow meaning dividend paying funds"
Pending
Having financial education and identifying opportunities is ineffective without sufficient capital to invest.
"you see an amazing Economic Opportunity you see an amazing investment opportunity you see a great buy point but you don't have any money to invest well that doesn't do you any good"
Pending
Bitcoin prices experienced a decline of over 10% within a 24-hour period.
"just look at what's been happening with Bitcoin prices Bitcoin prices fell by like more than 10% in just 24 hours"
Pending
Many individuals are buying Bitcoin and stocks using margin (debt or leverage).
"especially when people are trading on margin because you have a lot of people that are buying Bitcoin and stocks on margin meaning with debt leverage"
Pending
A margin call occurs when a brokerage forces a sale due to an investment's value declining below a certain threshold, to protect the lent money.
"a margin call is when a stock brokerage that lent you money forces you to sell because you invested into some thing that thing fell in value and now because you're underwater the stock brokerage wants to protect their investment"
Pending
The acronym 'POOP' represents the cycle: Panic leads to Overselling, which creates Opportunity, resulting in Profit.
"I call this poop before when I say poop I mean Panic leads to overselling leads to opportunity leads to profit"
Pending