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rodnavarro rodnavarro 02/12/2018 - 10:41pm

What's behind the latest market SELLOFF?!?

  • descriptionVideo Description

    In this episode I talk about the different theories on the latest market selloff. I talk about how we digest information and the consequences of disinformation, uncertainty and human behavior. What is your theory on this selloff??

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  • AbsintheBleu
    6 days ago 0 P-Nos Points
    There's nothing wrong with profit taking - my question is, where, in the immediate term, do folks put those profits. It's not like it's going to be cash! Especially in the face of inflationary forces, a strong labor market, and the Fed's maintaining of (relatively) low interest rates. And institutional investors are not going to pull out of stocks and dump everything into the bond market, or something crazy like crypto currencies. I'm sure there are people out there that make a killing in currency trading, but the idea that crypto currency is an investment instrument seems very very short sighted to me. Maybe the big institutionals shift a bigger % of their dollars into foreign investments that are continuing to see gains even in the face of these recent drops in the Dow and NASDAQ. However, to me, with the economy being as strong as it is, with rising prices/inflation, strong labor markets, relatively low interest rates and possible large re-partriotization of dollars from overseas back into the US, we're going to see even more investments in US stocks.
  • kilpin
    6 days ago 0 P-Nos Points
    nice video, thanks

    just a couple of comments:
    * you say "a new crysis", well is the old one over everywhere ? i dont think so, many countries will recover in 10-20 years (italy) or never (greece). Also this explains why the interest level is kept so low by the central banks and when plans to change that arise, situations like this one remind them it is not welcome. Both certainly have nothig in common with the idea of capitalism as a competitive self regulating system. Imho the system is simply dead, and new challenges like digitalization and industry 4.0 will show that more clearly
    * related to the previous point: you speak from an usa pov (understandale), but can this be done nowadays (even if you are still the biggest market) ? There are many political aspects (middle east, russia...) and also financial ones (rise of china/asia, bbrexit,fall of europe) influencing the global market
  • Maazerati
    1 week ago 1 P-Nos Points
    Think we'll be in a Bear market soon?
    • rodnavarro
      1 week ago 0 P-Nos Points
      Not yet, but definitely soon.
  • EuroMatteo
    1 week ago 1 P-Nos Points
    When you see the red BE GREEDY!
  • joeymustang
    1 week ago 0 P-Nos Points
    Buy the dips! lol
  • Don_sisas
    1 week ago 0 P-Nos Points
    Awesome advise hombre!! muchas gracias!
  • MINT
    1 week ago 0 P-Nos Points
    Like we spoke about this weekend on instagram - HighFrequency Robo-traders are the cause of daily flash crashes as well as the spikes. Any huge funds that are complaining about this have a "broken robot" lol. The interest rate hike does have an effect as well. This crypto nonsense is going to be the Greatest Heist in Financial History. I would rather invite a fake currency build hype and sell all my equity that is the only way to truly win.
    I think blockchain will fail because governments are trying to backdoor there way in, if they need to seize assets.
    Metaphorically I think it was just a ton of cash that kind of overflowed out of a boiling and tipping pot. I am ready for the discount time some people call a crash. Can't wait to see what really happens.
    • rodnavarro
      1 week ago 0 P-Nos Points
      Well, I don't think that the blockchain will fail. It is here to stay. Maybe in a different way that what we are seeing now, but the crypto market is definitely in its infancy, there are many crashes and highs to be had still so in my opinion there is no way of speculating where it will ultimately go.
    • babydriver87
      1 week ago 0 P-Nos Points
      I partially agree, some cryptos are really scams, this is what happens when someone greedy sees an opportunity and twists something good into a scam. But I'm 100% confident that BTC is not a scam, although it is hyper hyped, the reason for so many people to trade cryptos is because it is very easy to participate, download an app, wire some money, loose or gain money, the stock market still looks like something out of reach for the plebs. As long as you (I mean the general public) think that a Bitcoin is a file that you can store in a USB and believe it is not backed by anything you better not invest in it, never ever out money into something you don't understand, stay safe.
  • gregg1494
    1 week ago 2 P-Nos Points
    Awesome vid! Your channel deserves so many more subs.
    • rodnavarro
      1 week ago 0 P-Nos Points
      Thank you dude!! Much appreciated
  • Dirtyfivethirtygarage
    1 week ago 0 P-Nos Points
    Nice video Rod! My good friend is a very successful day trader and runs a subscription-based small cap biotech trading website. He went to the Super Bowl with some of his trading buddies, and on Monday morning one of the guys he was with went in the hole $280k on a $VXX short during their 10 minute drive to the airport. Dude didn't cover, went green the next day and ended up +$145k on the trade. He said the guy didn't even sweat being over a quarter mil upside down.

    I don't have the stomach for trading, but I respect the guys that do it every day.

    • rodnavarro
      1 week ago 1 P-Nos Points
      HOLLY SHIT!! That is some serious risk tolerance those MOFOs have!! Thanks for watching!

  • TheLazySmoker
    1 week ago 2 P-Nos Points
    I'd wager most people here are young enough that even a major correction shouldn't matter. People are taking profit due to the favorable tax law in effect for 2018. Also, I feel once the big down day started, the bots started executing stop loss orders that just drove prices down further. Over time, this is a blip. Nothing else too see here ;)
    • rodnavarro
      1 week ago 3 P-Nos Points
      That very well may be, or it could be the beginning of a serious market correction. I hope that is not the case but the signs are there...
    • ViperGTS69
      1 week ago 0 P-Nos Points
      Curious, please define serious market correction. Also curious, what is your current allocation? Are they different between your pre-tax and after-tax accounts?
    • joeymustang
      1 week ago 0 P-Nos Points
      I see it as not a market correction but actually a market transition. Blockchain technology with its essence of P2P ledger is just changing the game. 2018 will show better and bigger changes to both Wall Street and blockchain technologies. There a reason NASDAQ owns half of Coinbase.
  • SimpleRick
    1 week ago 1 P-Nos Points
    May we all bask in the importance of a non-selfmade businessman filing bankruptcy a multitude of times...
  • 866150560211683
    1 week ago 0 P-Nos Points
    I think there will eventually be a market correction, I think it will have to do with the bond market increasing its yield making easy money less accessible. Our economy is spoiled, a lot of people have not seen higher bond yields, including myself. I am 23 and getting credit cards and cheap loans etc. has been available to me since I have become a participant in the economy very easily. A lot of my generation and a majority of the people are using credit to consume... this being living above their means and thus having a record high in consumer debt, that was announced last year. We used to take debt to purchase assets but we are now consuming with our credit. with all this said I think it is very necessary to fix the mind set of the economy and credit. I don't rates are increasing as much as they should. the longer it takes the federal reserve to cap the debt by increasing interest rates, the more in debt the general economy will be in and cause the next economic cyclical downturn. I have heard that it might be worse than the 2008 correction. *STOP with the cheap money! Great video!
    • rodnavarro
      1 week ago 1 P-Nos Points
      Your point about debt growing is very true. The majority of Americans live beyond their means because of the easy access to credit, but as you very wisely point out, it is not being used to buy appreciating assets but for general consumption so they end up with a bunch of debt and nothing to show for. I hope the correction is not as bad as in the 2008 crisis but it is not looking good either, if you add the car loan markets into this mess...
    • 866150560211683
      5 days ago 0 P-Nos Points
      what is the best way to prepare for normal cyclical downturn? In 2008, I was just a kid so I don't know how exactly to act. In terms of my stock market portfolio my intentions are to hold and eventually add more once the prices declines (hoping) on curtain stocks such as Amazon for example. I am currently relying only on a jobs income, which I know isn't a great idea but I need the current income to make sure I payoff student loans. I know there isn't a "how to manual" in life but if you can give me a general sense of direction of how to protect myself in the eventual decline.
  • SimpleRick
    1 week ago 2 P-Nos Points
    The Trump Administration & his appointees are just starting to steer the economy with their economic policy now that we're more than a year into his presidency, we are just now starting to see the direct effects Rodrigo.
    • rodnavarro
      1 week ago 0 P-Nos Points
      Very true, but the actual effects of the tax break will be felt by next year and it will probably help the stock market given that higher earnings are expected because of these cuts alone. The real problem is as you say Steve Mnuchin's remarks are the insiders reality and they are profiting from a weak dollar given that it makes US products more accessible to the world... This might increase sales in the long run but its not good for people's purchasing power because we import a lot more than we produce here, so a weaker dollar will help the rise of inflation...
  • SimpleRick
    1 week ago 2 P-Nos Points
    One of the most concerning bits in recent news is U.S. Treasury Secretary Steven Mnuchin telling reporters at the WEF in Switzerland "a weaker dollar is good for us as it relates to trade and opportunities" also indicating the White House is seeking a weak dollar. A great deal of uncertainty came out of this as it's easy to see when looking at any economy with a weak currency that it does not have a healthy economy. The dollar & economy both tumbled directly after these remarks. A weak dollar would benefit only the wealthiest of Americans and trickle down to no one as it would destroy anyone making a wage.
  • timtimp
    1 week ago 1 P-Nos Points
    Base interest rates aren't high enough to cause a sell off ... correction/consolidation/profit taking is a better description
    • rodnavarro
      1 week ago 1 P-Nos Points
      Agreed!
    • timtimp
      1 week ago 0 P-Nos Points
      media always trying to get people up and armed over little things lol
  • zer0wo
    1 week ago 0 P-Nos Points
    Amazing video, i'd go with the theory of people sensing a market crash and do a panic selloff to cut loses
    • rodnavarro
      1 week ago 1 P-Nos Points
      Yea that's usually what intensifies a selloff
  • forakzai
    1 week ago 1 P-Nos Points
    Already saw it, but thanks Rodrigo... And another awesome video 🤚❤️
    • rodnavarro
      1 week ago 1 P-Nos Points
      Thank you for watching dude!!