Finance

3 Reasons a 2021 Stock Market Crash is Coming #Shorts

3-reasons-a-2021-stock-market-crash-is-coming-shorts



A 2021 stock market crash is coming and you need to be ready! I’ve found three reasons why stocks could crash this year and even if they don’t, why it’s going to feel like a market crash to you.

In this quick YouTube #shorts, I’ll show you three reasons why stocks could still crash this year. It’s a follow-up to Tuesday’s short video and Sunday’s livestream detailing all six reasons for and against a crash. If you didn’t catch that livestream, make sure you click through to see the details behind why stocks aren’t crashing. https://youtu.be/3oOrVWw7CM8

Massive stimulus and consumer spending should keep us from a full-scale stock market crash of 20% or more for most of 2021 but the scenario gets a little riskier later in the year. Because the stock market is forward-looking, meaning investors look six to 12-months out to predict the economy and earnings, we could see stocks crash if it starts to look like next year won’t be so bright.

Even if there is no market crash, it could still FEEL that way for some investors. This is really the reason you need to look at your portfolio whether stocks fall or not. The most popular stocks have been the growth and momentum names like Tesla and Enphase Energy, stocks that can rise or fall double the market’s pace or more. They’re called high-beta stocks and it works great when stocks are rising but not so much when stock prices fall. Even if stocks only fall 10% or 15%…these stocks could crash 30% or more and destroy your portfolio. I’m not saying to not invest in some of these popular stocks, just don’t have all your money in them or be ready for a stock crash.

There’s also going to be a stock rotation in the market. Investors could sell the growth and momentum leaders of last year in favor of cyclical stocks in Energy and Financials for 2021. So even if the market stays flat or even goes up, those growth stocks that worked last year could crash hard!

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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.
#stockmarket #stocks

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45 Comments

  1. Let's Talk Money! with Joseph Hogue, CFA
    July 16, 2021 at 1:34 pm

    READ if you're confused by conflicting NO Crash/Crash Videos 🤔…In Sunday’s livestream I gave three reasons why the stock market won’t crash this year and then three reasons why it won’t matter for many investors. I used each of the three in new #Shorts videos on the channel and there seems to be some confusion among investors. Many have wondered if, with the 3 Reasons Stocks Will Crash video, I’m flip-flopping on the previous no-crash reasoning.

    I still believe there will be no crash this year, defined by a drop of 20% or more in the S&P 500 index and refer to the three reasons. Stocks just don’t crash when the economy is growing at 5% and trillions of dollars are being pumped into the system.

    The problem is, and this is what I was trying to get across with the three reasons for a crash that many didn’t understand…is that the lack of a market crash doesn’t mean YOUR stocks might not crash. While the S&P 500 is still just 5.5% from its recent peak, not even in correction territory of 10% yet, many of the most popular stocks have lost 20% or more.

    It’s the inevitable and eventual problem with the growth stocks and momentum investing strategy. It’s great when a stock price zooms 100% in a year but understand momentum works in reverse. These high-beta names also fall more than the market during a selloff. We’ve been following the shift from growth stocks to cyclical and reflation sectors for the last two months here in the newsletter and it’s likely not over. Rates will continue to go up, some sectors will benefit and some will fall further.

    The end result, if your portfolio is falling further than the market then it may be time to reevaluate your investing strategy. What worked last year, the growth stocks that posted triple-digit returns, may not work again this year. If you believe in the companies as a long-term investment then by all means, invest in companies. If on the other hand you were only investing in stocks because the share price was going up…that’s not a stable strategy.

  2. John F
    July 16, 2021 at 1:34 pm

    Your right

  3. GERRY. SHAFER
    July 16, 2021 at 1:34 pm

    GLAD U R ALWAYS SO POSITIVE JOSEPH !!

  4. slvr chrm
    July 16, 2021 at 1:34 pm

    80%Cra$H💵💰💸💰💸💴💵⚖️🚀🚀🚀🚀👻💉💉💉💉💉💉💉💉

  5. Ozmo Callot
    July 16, 2021 at 1:34 pm

    🌲🌲🌲🔥🗣💨

  6. mechie Scherpereel
    July 16, 2021 at 1:34 pm

    Click…bait…

  7. MUYFA East bay
    July 16, 2021 at 1:34 pm

    You can say crash for the next 425 days some day you will be right
    All I see are deals right now

  8. S Y
    July 16, 2021 at 1:34 pm

    I am looking for the dip… itll come back up

  9. Ti Che
    July 16, 2021 at 1:34 pm

    1 person saying market crash, thousands followers say the same, making it a wave of market crash on youtube.

  10. Ewerton Lipinski
    July 16, 2021 at 1:34 pm

    Love your videos Joseph, are you prepping a video on the cyclical rotation you mentioned? What are the stocks to watch and in which sectors, per your recommendation?

  11. Selena Lou
    July 16, 2021 at 1:34 pm

    buy banks and utilities people.

  12. G G
    July 16, 2021 at 1:34 pm

    To be safe, I’d wait until the the nasdaq is down about 50% overall before I’d put more money into any tech stocks.

  13. Philip Sidor
    July 16, 2021 at 1:34 pm

    Would you buy apple as of right now?

  14. Crypto-Investor
    July 16, 2021 at 1:34 pm

    My portfolio already crashed 50% because of high risk stocks like Tesla

  15. valcaron
    July 16, 2021 at 1:34 pm

    I'm not afraid of crashes. I'm afraid of hyperinflation and/or stagflation.

  16. X S
    July 16, 2021 at 1:34 pm

    Do you have any favorite investment /finance books?

  17. Tori Brown
    July 16, 2021 at 1:34 pm

    Your content is great, I think it's worth investing in! You should create your own coin at mintme

  18. Steffan Bull
    July 16, 2021 at 1:34 pm

    I wonder if Christian Bale will play him in the sequel?

  19. A C
    July 16, 2021 at 1:34 pm

    Forgot Communist now control the US.

  20. Greg Harris
    July 16, 2021 at 1:34 pm

    It was a great day to go shopping today, Thursday 3/4/21!!

  21. Neil Wands
    July 16, 2021 at 1:34 pm

    You're about 12 years behind mate

  22. Fu Leung
    July 16, 2021 at 1:34 pm

    Great job

  23. Marks Google
    July 16, 2021 at 1:34 pm

    1. America voted to bring the Obama economy back.
    2. America voted to bring the Obama economy back.
    3. America voted to bring the Obama economy back.

  24. Gary Bradford
    July 16, 2021 at 1:34 pm

    Buy oil& gas stocks🚀🚀🚀🚀💵💵💵💵💵

  25. Gary Bradford
    July 16, 2021 at 1:34 pm

    What do you think about Rolls Royce (RYCEY) Over the next year?

  26. Girthzilla
    July 16, 2021 at 1:34 pm

    The only thing 100% sure, is nobody knows 100% for sure.

  27. Arlykewlname
    July 16, 2021 at 1:34 pm

    I'm playing both sides, so that I always come out on top.

  28. H A
    July 16, 2021 at 1:34 pm

    🔥Get ready to buy the dip🔥

  29. TSDN Productions
    July 16, 2021 at 1:34 pm

    You called it to the day

  30. Leahcim Olrac
    July 16, 2021 at 1:34 pm

    Right now I’m holding and waiting for divine intervention.

  31. Riso Art
    July 16, 2021 at 1:34 pm

    you mean this is not a crash?

  32. Marwan Shareef
    July 16, 2021 at 1:34 pm

    Well first they fell already by 30-40%. Second, I remember seeing your video not long ago saying why the market will NOT crash! Man youtubers are funny. Any way to make money whatever the ppl want to hear ha? lol

  33. Mai Nguyen
    July 16, 2021 at 1:34 pm

    Morning Joe. Buy and buy when red. In the meantime, just enjoy the roller coaster rides

  34. Jessica W.
    July 16, 2021 at 1:34 pm

    What do you mean, Joe?

  35. ama bill
    July 16, 2021 at 1:34 pm

    one day no crash, after the crash they all start predicting crash, after all do not trust anyone

  36. Nathan McDaniel
    July 16, 2021 at 1:34 pm

    Meh I’m just gonna keep buying

  37. Alireza Jalaeian
    July 16, 2021 at 1:34 pm

    Funny! You had a video of why we DON'T have a CRASH in 2021. NOW, saying the opposite ?! Which one should we believe FINALLY?!

  38. Liza
    July 16, 2021 at 1:34 pm

    Get your cash squared away

  39. bngr bngr
    July 16, 2021 at 1:34 pm

    Having every American vaccinated by May is going to look good for future business growth. I think there is a lot on potential demand and consumer saving waiting to be used.

  40. Randall Burns
    July 16, 2021 at 1:34 pm

    There are a few ways we can see a crash in US stocks. First off the US stock market has gone up further than many foreign stocks specifically because the Fed has been pumping money into th US stock market. That means we have a lot of fake values stocks and growth stocks. The US also has some very real problems-as the horrible Covid-19 reponse in the US shows. Some of those problems like huge levels of social isolation and growing levels of substance abuse in the US predate the pandemic-but the pandemic has made those worse. Many of us in the US are two close to the situation to be objective–and there dominant business/political culture is sadly short term in their thinking. One fundamental question : is Cathie Wood correct that fundamental change is coming to the US economy? My personal opinion, is that either the US economy restores a largely lost tradition of extreme innovation outside of a few specific tech sectors–or the US will be swamped by hungrier, more nimble, more cohesive foreign players. The US has a generalized regulatory failure: Covid-19 was not an isolated incident: no highly regulated sector of the US economy performs at international standards: education, health care, justice, transportion all have real problems that will show themselves long term if not corrected by the likes of Tesla/Cathie woood. Wall Street/DC caused many of those problems. The money in politics is being used by many companies to prop themselves up-when really those companies should have been allowed to die and be replaced. The US energy sector is a prime example: They bought US politiians to waste trillions in defending a soon to be obsolete energy source in the middle east. If you just look at the price trends of solar and wind: those are moving in a direction companies like Exxon really cannot compete with-which is why companies like Exxon buy US politicians. Im not saying Tesla/Wood will succeed. Legacy companies are areally good at propganda and buying politicans. The problem is that just just doesn't create an internationally competitive economy or a stable society. If those con artists win, the us will loose international position steadily.

  41. Lockdown2020
    July 16, 2021 at 1:34 pm

    Didnt you just say it wont crash just the other day? doing similar short video….stating things recovering so stocks cant fall etc….Now you saying it will crash..interesting

  42. Paul Morton
    July 16, 2021 at 1:34 pm

    Save some side money n when the price of quality companies goes down buy there stocks

  43. ASPD
    July 16, 2021 at 1:34 pm

    It’s already happening dumbass

  44. Harold Mann
    July 16, 2021 at 1:34 pm

    The higher(Stocks) they are, the harder they fall..

  45. Bush Monster
    July 16, 2021 at 1:34 pm

    Nearly every day seems to be a major red day.