Investing

DON'T TRUST THE STOCK MARKET | WHAT YOU MUST KNOW!

dont-trust-the-stock-market-what-you-must-know



As the SP500 begins to cross back above 3000, lets discuss what’s driving this growth, whether it’s a good time to invest, and the strategies you could use to make money – enjoy! Add me on Instagram: GPStephan

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We’ll begin by looking at the SP500, which is an index that tracks the top 500 publicity traded companies here in the United States…and this is weighted, overall, by the companies market value…so, the more valuable the company is, the more that company is going to influence the entire SP500.

Now this is really important to mention…because, out of 500 publicly traded companies…the 6 LARGEST ones make up about 25% of its ENTIRE VALUE…those companies are Facebook, Apple, Amazon, Netflix, Google, and Microsoft – otherwise known as the acronym, FAANGM. Then, the other 494 companies make up the remaining 75% of the value.
https://www.slickcharts.com/sp500

Even more interesting, if we look at every company within the SP500 year to date…we can see that 395 of them have LOST VALUE…and the remaining 110 have seen a moderate gain since the beginning of the year. But, that gain is HEAVILY influenced by the largest tech companies that just so happen to be BOOMING right now.
https://www.slickcharts.com/sp500/performance

The FAANGM stocks have far outpaced and exceeded the growth of the rest of the market, by far…and, over time, they’re becoming increasingly more valuable.
https://www.yardeni.com/pub/yardenifangoverview.pdf

That just means that – most likely – it could be the new “normal” that a few large companies lead the majority of the stock market, as they’re able to reach billions of people through the internet – and this type of growth is going to become more common as we become more and more centralized online and with technology.

For the majority of people out there – a simple broad market index fund is going to be the best option, long term. This means that – instead of going and buying specific stocks – you can invest in ALL OF THEM, at the same time, all in ONE FUND. The benefit to this is that, if a few don’t do so well…most likely, others companies will make up for it. Likewise, if a few do REALLY WELL…you’ll get to enjoy that benefit on a small scale, consistently. Over the long term, it was found that these index funds outperform even the most advanced hedge fund managers…

BUT – Do keep in mind – the REASON the overall stock market has risen so much, WAY more than we’d normally expect – is mainly due to a few specific Tech companies who are doing EXCEPTIONALLY well during the crisis. They are driving a LARGE portion of the market right now, and that’s why we’ve seen such a large resurgence in stock prices while many other companies are down.

Just look at Amazon hitting its ALL TIME HIGH as everything is shut down. Netflix also hit its all time high. So did Facebook. And the other top tech stocks aren’t far behind. So, keep that in mind the next time you invest in the SP500…

For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com

*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.

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33 Comments
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Robert Dunfee

33 Comments

  1. LS Marshall
    July 21, 2021 at 5:25 pm

    Graham, What do you think about Greenblatt's Magic Formula?

  2. Stoyko Yovchev
    July 21, 2021 at 5:25 pm

    yey

  3. Allen Fitness
    July 21, 2021 at 5:25 pm

    The more money they pump into the economy the worse the lower class people have it because the money is just going to be so inflated 5 years down the road Even though since world war II it's been a shitshow

  4. Allen Fitness
    July 21, 2021 at 5:25 pm

    😨🧏🌹🐧🐕

  5. Mona Patel
    July 21, 2021 at 5:25 pm

    Which vanguard index fund do you invest in?

  6. TheMUSEUM TV
    July 21, 2021 at 5:25 pm

    13 minute video, 800 ads. lol

  7. Paola Suarez
    July 21, 2021 at 5:25 pm

    liked only because you covered the camera with your hand… like all the youtubers hahah

  8. cogen651
    July 21, 2021 at 5:25 pm

    People don't realize that when you buy a stock you essentially just gave your money away, your hope is a bigger fool will eventually come along and buy from you. But technically, that money is gone.

  9. maca canal Spain
    July 21, 2021 at 5:25 pm

    mine crashed

  10. Angelo Hau
    July 21, 2021 at 5:25 pm

    Hey Graham, what's that web you used for your stock investment and can you recommend which stock tracker web to use?

  11. killer bruh
    July 21, 2021 at 5:25 pm

    is the spdr s&p 500 a good one to invest in ?

  12. Data Doggo
    July 21, 2021 at 5:25 pm

    Im a nice dog, watch my channel🙏

  13. Robert Groves
    July 21, 2021 at 5:25 pm

    no you cannot trust the wall st rats……….

  14. Robert Groves
    July 21, 2021 at 5:25 pm

    2 many adds……..greedy

  15. Nutty History
    July 21, 2021 at 5:25 pm

    I dare you to click the acorn, you won’t regret it

  16. Connor Mcleod
    July 21, 2021 at 5:25 pm

    God bless powell.. And his printer

  17. Louis Cipher
    July 21, 2021 at 5:25 pm

    After watching this video, I am investing in oversized zippers.

  18. WillN2Go1
    July 21, 2021 at 5:25 pm

    So then why invest in a whole market index fund, when you could simply invest in FAANGM or FAT MANG? I looked at Vanguard a couple of times over the past ten years and the FAANGM-Ts buried it.
    Over a dozen years ago I invested in Apple, Google, Amazon, and passed on Netflix because they were still mostly mailing out DVDs (Blockbuster by mail, which was a Blockbuster killer, but as my girlfriend pointed out, anybody could buy DVDs and rent them by mail. At the time a valid point. I was asleep at the wheel when Netflix started producing it's own content, much of it very good, and shifted to an online business.) I was never interested in Facebook or Twitter. And I joined the TESLA bandwagon about the same time you did, and would've done it much earlier had I bothered to think about it. I remember Delorean, and Studebaker! (just barely); still Tesla seemed well on its way with the Model S. I think I'm well on track to having my Tesla investment more than cover the payments on a Cybertruck once my place in the queue comes up.
    I remember very clearly that until about 2011, every business, investing, news article or mention of, Apple's iPhone was 'at 35% of the U.S. Market they'd saturated their potential customer base and had no place to go.' I'd always thought of a worldwide market and wondered if I'd stupidly missed something. If Nokia did it, why not Apple?
    And my suggestion for FAT MANG? Add a Xhosan click and a German cough ending: M!TAANGF or T!MAANGF. Then it'll take a lot of practice to get the pronunciation down, and might make watching all those 'market' experts on cable fun to watch.

  19. Marco Merola
    July 21, 2021 at 5:25 pm

    So it doesn't make sense to invest in sp500. Just invest in those ten tech companies

  20. ervin khouw
    July 21, 2021 at 5:25 pm

    And today I regret it cause all stocks keeps going up and I dont have it, only keep cash

  21. OJ D
    July 21, 2021 at 5:25 pm

    If anyone believed this guissed out on making money

  22. SuperOGNick
    July 21, 2021 at 5:25 pm

    I don't have much money, but I need to put these pennies to work

  23. ac0rpbg
    July 21, 2021 at 5:25 pm

    This is going to end badly tho. FED and the government have been just interfering with the free market and the stock market too much. Most of the stocks if not all are way over priced. Tesla for example is overvalued at least 3 times. People just hope tesla is the next Apple. But it is very easy to scale digital services like amazon,google,netflix,facebook or like apple to have huge margin. Tesla has nothing like this. Buying the S&P500 or other indexes is just over exposing you to overpriced companies. That for years have been cheating the system to rise their market valuation and stock price.
    Example is what NVIDIA did when they disguised the crypto mining growth in sales as gaming sales.
    Other example is companies that have billions in assets and intellectual property that in reality is worth 0. It is not humanly possible to go over the hundred of thousands of patents this companies have.
    The stock market is a bubble that has to regulate pressure by droping, if you just blow without releasing the preasure and allow the bubble to stretch it will just pop. $3 trilion in the stock market and the economy is just mindless, let it crash so it can recover let the bad companies go bankrupt so newer leaner and better companies can emerge.

  24. Chris
    July 21, 2021 at 5:25 pm

    Since the market seems to react strongly to the (slightest bit of good news), then it's logical to presume it's going to explode to record numbers after a reliable vaccine is announced.

  25. Jeffrey Wiggin
    July 21, 2021 at 5:25 pm

    Dude I'm making a crap ton of $ on Spirit Airlines stocks right now, holy crap. They hit $24 a share and I got them at $13 a share a month ago

  26. sylvie Watson Trading
    July 21, 2021 at 5:25 pm

    I don't know why people are afraid to invest, there is so much money in stock market you just have to know the right one to invest in like i did and it's paying off big time.

  27. Emiko San
    July 21, 2021 at 5:25 pm

    I'm so glad you did that. Now, I'm happy. I feel good about this.

  28. Mr. Sharp
    July 21, 2021 at 5:25 pm

    FAT G MAN for the win!

  29. Jovance Trajkov
    July 21, 2021 at 5:25 pm

    Next day : I sold 700 shares and made 700$ 😄

  30. Awom Kenneth
    July 21, 2021 at 5:25 pm

    cool

  31. TheBohodiva
    July 21, 2021 at 5:25 pm

    Love your content Graham, also BLACK LIVES MATTER

  32. INTN ICN
    July 21, 2021 at 5:25 pm

    HOW ABOUT TVIX? SHOULD I KEEP IT?

  33. Pamela Ko
    July 21, 2021 at 5:25 pm

    Thank you. Awesome