The Stock Market Crash is Worsening... When will it End?

hey everyone me kevin here the s p 500

has eradicated all of its 2021

gains just like arc invest which is down

over 25

from its peak unfortunately now the

market is continuing

to get battered futures are down the

chinese

stock market has opened down we have

after hours not looking pretty we had a

pretty dang big sell-off today and now

we got

16 percent of a loss at superior super

league gaming we got agora down six

percent

the backbone behind clubhouse we got

sends down

cciv down another 5.5

under 23 pinterest lemonade vroom

neo tesla you name it tesla's sitting at

600

a share what's the market gonna open

like tomorrow we have absolutely no idea

but in this video we're gonna talk about

will this crash keep going what is

causing

this madness and what do i think about

it

when do i think it's going to end what's

it going to take

let's talk so first let's give a shout

out here to our boy

jim cramer jim cramer on cnbc thinks

that the market is flooded with

investment opportunities he mentions

spax he mentions

big ipos coming like coinbase and roblox

plus

there are shareholder lock-up

expirations at newly ipo and newly

stacked merged companies

that could potentially lead to a massive

glut of stocks

available on the market for purchase and

as we know when supply goes up

price goes down and this is why jim

cramer believes

that the market might have further to

fall on top of what jim cramer said

you also have the crypto craze do you

pick bitcoin aetherium

cordana do you pick all of them do you

put a little bit into all of them do you

put money into nfts

do you put money into real estate there

are literally

so many freaking endless opportunities

right now that it's not just what jim

said

but it's all of the opportunities

combined right now that kind of start

making us feel like oh crap we're kind

of running out of money

in fact i just ran a poll on twitter

which if you don't follow me follow me

on twitter

you can follow me at real meat kevin and

in the first 35 minutes of the poll

3 700 of you voted and 58 of you have

said

amar money six percent of you said that

you're selling stocks and not buying so

the most most of you are diamond handing

this

and 36 percent of you said you have

money left over to invest so

only about a third of you actually have

money to invest right now now

let me be clear i am aware that the vast

majority of us following

me certainly are probably a retail

investors

which kind of supports this narrative

that yeah we're

kind of running out of opportunities

here because we

have too many opportunities but not

enough cash which is a problem

that makes it hard for us to prop up the

market by buying the dip

so what then can turn this market around

well in my opinion it's actually what's

causing this market

to fall and that is institutional

investors i personally think

institutional investors are doing what

they deem to be safe bets right now

i personally believe it's institutional

investors the big hedge funds the big

money managers

that are trying to protect their clients

and their pension funds and their

whatever health insurance companies or

whatever it is that they represent their

municipalities or whatever

and they're trying to protect their

clients and they're saying you know

tax overvalued tech is passe we're in a

tech wreck right now let's uh invest

your money into

a diversified portfolio of the john

deere and the home depot

and let's throw some disney in as well

how about some carnival cruise line

they'll pay off their debt they'll be

okay we're going to have a travel boom

don't you want to go traveling after

this pandemic where you've been locked

up for over a year

yeah we'll invest into those things

because that's where it's at

personally that's literally what i think

is happening i think institutional money

is literally flowing

out of tech and energy and some of these

specs

and going directly into recovery

although we're also

seeing those stocks sell off a bit so

sure while we might be seeing 15

declines in like attack and we see you

know maybe modest declines or stability

at disney um

disney's still modestly declining we see

that as well a lot of the money seems to

be flowing over there

some of the money is obviously getting

caught up somewhere

probably some of that money is getting

caught up in shorts and

puts which are actually in my opinion

artificially accelerating this decline

as hedge funds gonna hedge because we

don't want our clients to leave because

we don't want our clients to think we're

just doing the kathy wood and buying the

dip we want our clients to feel like

they're protected

by every complicated hedge option that

exists so we're gonna short this market

yes that is after all what funds do so

what's the point

well the point is i don't think retail

investors

are screwing the market right now this

is not retail investors

selling this is institutional investors

seeing

the start to a tiny transition and now

they're like okay okay oh

maybe rates going up inflation happening

move away from the high value

let's go away from tech sheep on over

to recovery place cash shorts

puts maybe some bonds maybe some of them

are throwing money into bitcoin which

could explain why bitcoin has actually

been

relatively stable through some of the

madness here and that is relatively

stable i know bitcoin is volatile but

surprisingly it's been holding up

relative to like tech stocks right

personally that's what i think is

happening and what's fascinating

if this is true is i would not be

shocked to see that very soon

especially where these prices are

heading very soon

these institutional funds are all going

to have moved over and then they're

going to go

um wait a minute tesla looks pretty damn

cheap right now

in fact kathy wood just put out a new

bullish statement on tesla which she

hasn't yet i'm projecting into the

future which she plans to do soon

she put out a new bullish research team

on tesla and she's right

tesla is actually a value play why would

we buy these

indebted companies in dying industries

when we can buy

the next frontier at now a cheaper price

hey

let's move back over and then slowly we

get that rotation back

we get people closing their short

positions which have been going up at a

lot of companies we get

people selling off on their puts we get

people then taking money these funds

taking money throwing them and rotting

at them rotating them right back into

the tesla the pinterest the etsy the

expi whatever

possibly also consolidating other funds

they have available the cash they held

or bonds they bought who knows maybe

bonds go back up and then they take the

cash they

invested in a bonds throw that right

back into these stocks and we end up

seeing a pretty

instantaneous boom back and this boom

back is exactly what i want to

basically prevent buying after that is

i believe simplifying my explanation

here

i believe we are going to see a big

rotation back

into tech and the future of america

expi tesla apple google

amazon these companies are the future of

america

the matter ports of the world the ccivs

the genomics the trade desks the neos

the open doors

these are the future companies of

america

and money will flow back to these the

problem is

when when are those values going to or

or those prices going to get to the

point

where the institutional investors say

let's close our shorts

and let's get back over at the into the

tech play let's get back into that space

when that happens probably won't it'll

probably happen pretty fast so it won't

take many institutions doing this

it'll happen pretty fast when that

happens i would expect the market to

bounce back

pretty dang quickly and this is why i've

been driving so many of you

nuts with all of my stock buy alerts

because i am not

selling this dip i am buying this dip

i broke down my margin i broke down my

entire strategy with all the course

members today

uh in the stocks and psychology and

money group in fact many of you have

been

sending messages in the chat going hey

talk to my cpa they confirmed i can

write off

your stock course so that really means

instead of paying like 400 for your

course i'm getting it for like

275 dollars some of you were saying

which is really awesome because of the

tax benefits

obviously check with your cpa but yeah i

mean check out the program link down

below it's a 38

off coupon it does expire in less than

two weeks

which means the current uh price will go

away so do check that out that coupon

does expire it's linked down below

but the big question now is when will

this rotation happen what catalysts are

going to lead

this rotation to actually happen and

take place

let's talk about that the first

potential big catalyst

that can push everybody right back into

tech is

understanding what's going on at the fed

first of all i saw

multiple videos today from multiple

different creators and i'm not trying to

bag on everybody anybody

anybody maybe i just have a different

perspective but there are multiple

people saying

that and even cnbc cnbc oh my god

cnbc had an article that's like the

market is just spooked because jerome

powell said inflation is coming

no wrong that is not what jerome powell

said

jerome powell said inflation is coming

temporarily but it will not stay here

if you want a further explanation on

what's going on at the fed please type

this into youtube write this down on

your notes or phone right now to look

this up afterwards okay you're gonna or

open up a new tab

meet kevin why the fed just crashed the

market

you need to watch that after this but

first listen to these other catalysts

okay i'll remind you again on this

so watch that for what's actually going

on it's very interesting you gotta

understand that

when this expectation of inflation come

coming ends and when the suits start

realizing

wait a minute maybe inflation isn't

coming

then our favorite stocks go right back

to the moon that is one of the

big catalysts however that's going to

take a while

it's probably going to take in my

opinion three to six

months for the suits to realize

inflation isn't coming the way they

expect

that means for the next three to six

months they could be right

with this fear that inflation is coming

which is bad

that means we need an a sooner catalyst

okay well what's another catalyst well

more pain happens the bond market

continues to sell off leading yields to

go up

and maybe finally the fed does what we

were expecting the fed to do today

and they swoop in and extend bank

capital reserve exemptions now this is a

fancy way of basically saying

the fed waves their magic wand lets

banks have or spend more of their money

on whatever they want like bonds or

purchases

basically they need to keep less sitting

around in cash doing nothing

if the fed says you're good to do that

for longer another six months or a year

then banks could in theory go by bonds

and maybe those yields will come down as

bond prices go up

and the market will be happy again so in

other words bottom line of this like

last 30 seconds

the fed could literally wave a magic

wand not

print more money and potentially solve

this

the velocity of this bond market

freaking out

and i think we'll have a rotation like

that i think we will have a very fast

rotation

waiting for the inflation like inflation

not to come

is going to be very painful and it's

going to take a while and bitcoin could

go

to the moon between now and then uh this

is why it's probably a good idea to own

at least some bitcoin which is one of

the reasons i have a bitcoin over at

blockfi

where you can get up to 250 for free if

you sign up and purchase bitcoin and get

interest on your bitcoin which is great

they're paying like six percent on your

bitcoin right now

uh and you can go to medcavin.com bf

block five kevin.com

bf to sign up for an account over at

blockfi but anyway

that is going to be the quick catalyst

so slow catalyst inflation

doesn't end up coming the way we expect

and dronepal is right that's the slow

catalyst

that doesn't have to be the right one

but that's the slow one

if that happens the quick catalyst is

the fed going bloom

hey bank go ahead spend money and

i think the market will react very

positively today and i think that's why

we had a double dip crash today because

that did not happen

the market was hoping that that would

happen but it didn't happen

and so that's why the market started

selling off more when it became

abundantly clear that the fed wasn't

going to do this

watch that video meet kevin why the fed

crashed the market today

much more detailed explanation so the

fed could act sooner

that would help but if the fed doesn't

act what else do we have

well we have tomorrow's job report but

honestly

that's probably going to fall flat okay

cool so the unemployment rate goes down

but what is the unemployment rate signal

to old-school institutional investors

well old-school institutional investors

go well when the unemployment rate goes

down uh that means uh jobs become more

competitive and uh the price of labor

goes up which means

inflation goes up so uh thank you for

reiterating my argument inflation's

going to go up

that is entirely possible if the

unemployment rate goes down which we

expect it will

then we could see more pain because

people are like that's it inflation is

coming now this hasn't actually been

true and this is why this is also

complicated because old school economics

says

unemployment rate down inflation up well

the last 10 years

unemployment rate be falling and

inflation be falling

it's literally everything is turned

topsy-turvy everything is freaking nuts

and confusing and that's why there's so

much

happening in the market right now

because nobody has a clear picture or

understanding of what the hd double

hockey sticks is going on

with the exception of me i'm just

kidding i'm probably the last person

that has any clue as to what's going on

because here i am again again

wearing the tree of life druid shirt

which you can barely see from

world of warcraft so you know take note

of who you're taking advice from here

so convincing the market that inflation

is not coming

slow play bad not a good catalyst okay

the fed waiving their one and changing

liquidity requirements

good good catalyst the unemployment rate

going down

probably a bad or neutral catalyst like

it's not going to

help us this means this dip

could continue how long historically

these dips last six weeks we started

this back on

february 19th that means february 19th

through the end of march could

potentially be a nasty

nasty nasty period of time to invest a

lot of pain

a lot of loss a lot of paper handlers

selling because they can't take it

anymore or stop losses getting

triggered because they went in as

diamond handers but they were secretly

paper handers

i'm not trying to offend anybody with

stop losses okay stop losses totally

have their purpose

i'm getting a little extreme here but

what happens between february 19th and

the end of march

the stimulus package is it possible that

when the 1.9 trillion dollar stimulus

package passes which i believe has a

a very high likelihood of actually

occurring is it possible that that

stimulus package

props the market back up potentially

because right now i believe the market

is pricing in

1.9 trillion dollars of money printing

because

there's already been so much money

printing like the inflation fear is

already there

i don't think another 1.9 trillion

dollars at this point is going to make

people people think that

oh inflation's going to be 10x what it

was before i don't think that is going

into

it like through institutional investors

mindsets i think they're like we've

already printed so much we're going to

see inflation we're going to see with or

without this 1.9 trillion package sure

the 1.9 trillion will make things even

worse for that inflation argument

but it's not going to make that much of

a difference in other words i think

institutional investors are pricing and

inflation happening

but we're not actually anymore pricing

in the benefits

of a 1.9 trillion dollar package less

unemployment

that is more people potentially with

jobs because people have money to spend

all of this extra spending in the

economy all of this new inflow

of mortgage forbearance money which

could go into the stock market stimulus

checks which could go into the stock

market

unemployment checks which could go into

the stock market longer now

i'm not suggesting that that's healthy

because really we're just

transferring money from the government

to people and then people are throwing

it back in the stock market which is

kind of artificial

it's basically jerome powell funneling

money directly into the stock market

i'm not saying that that is healthy uh

but

that could be a short-term catalyst at

least to get us out of this rut

the stimulus package is expected to pass

march

14th that means we literally potentially

have

10 days to go of pain

now that doesn't mean that the bottom of

the market is in 10 days

see when we have these recessionary

times markets can actually go

down and then we have like a monday

happen where the market goes up like 10

15 percent

and it goes down again and it goes up

again right i just think that

this volatility period is going to stay

probably for at least the next 10 days

until this stimulus package which keeps

getting delayed

because now they're reading the whole

bill because they're freaking morons

anyway

longer this gets delayed the longer we

might have to wait but

there is one last catalyst and this

one's a little softer

but it it is it works in mysterious ways

this one

and it's the weekend catalyst okay the

weekend catalyst says

that after a sell-off week institutional

investors go through and they're like oh

look at all those cheap deals remember

what i mentioned at the beginning of

these catalysts that there's the

potential of

institutional investors going time to

move over

things are cheap tests are under 600

that's cheap let's go boys

it is possible that that could happen on

monday just like what we saw this monday

now will that be followed by more of a

crash who knows

who knows so bottom line

what the hell am i doing about all of

this

and what do i think is actually going to

happen okay so this is

where we're going now is magic 8 ball

random dude on the internet theorizing

about

stuff he has very little clue about

because i have absolutely no idea what

is going to happen with any form of a

guarantee

so what i'm about to say is totally just

entertainment and speculation

anyway now that you're still here let me

give it to you i personally think

that this is the worst that this right

here is potentially the worst

week of this crisis we have been selling

off

since february 19th we are now about

halfway through that six-week cycle

i do think and by this is the worst i am

also

already incorporating friday's pricing

so i think we could have some blood

friday

it would not shock me though for us to

open dirty and nasty

and to rally into the close tomorrow

complete speculation

complete speculation even if we don't

i think next week once that weekend

effects effect goes into play

we're gonna see some recovery in the

stock market

three four percent maybe it'll start

slowly maybe it'll come quickly like

what we saw on monday where all of a

sudden it's like wow we were bottom and

boom

we're up 10 15 again right entirely

possible

not sure not sure about that but i do

think that this week could go down as

the worst

and that's because next week we're

getting closer

to that stimulus package or

fedrome chair a fed chair jerome powell

making a decision on those liquidity

reserves which is due before the end of

the month

so we have some serious catalysts here

and because we have these catalysts

around stimulus

and j pal it's very likely in my opinion

that these

institutional investors are going to

realize

we have these catalysts coming the

weekend catalyst comes into a into play

and potentially the institutional

investors go um

this is some sweet opportunities over

there let's go shopping before the

stimmy comes

it could be totally wrong we could

literally just go straight off a cliff

for the next you know who knows it could

be two months i

have no idea if these inflation

expectations keep going up right

again don't sue me bro if you lose money

on this is not my problem

but what am i doing i'm putting my money

where my mouth is and in the last

three days i've put over one million

dollars into the stock market

yes i'm literally going into more margin

to buy right now because i believe what

i'm telling you

you don't have to believe me call me

crazy leave nasty comments

but i don't really believe that bond

yields

going to 1.55

is such a freaking catalyst that we're

gonna see another march 2020 are you

kidding me

march 2020 i went to a grocery store in

a hazmat suit because nobody knew what

the heck we were up against that

was peak fear this is a joke compared to

that

this is a joke compared to 2008 and

that's why jerome powell isn't acting

and at some point the institutional

investors will realize this sell-off is

a complete

joke don't talk to me about valuations

save that for the next video or my next

videos when i start doing valuation

videos

on tesla airbnb square chew me out in

those videos

or do whatever you want i don't care all

i ask is uh if you found this helpful

consider sharing the video on folks

see you tomorrow

you