The IMPENDING Stock Market CRASH of 2021

Hello and welcome back to a new video

about the stock market. So as you may

know, many people who have been investing

in the stock market have been trying to

predict an impending stock market crash

in 2021. And as a fellow stock investor

who has almost all of his life savings,

including his father's inheritance money,

tied up in the stock market in stocks, I

have to say I'm also a little bit worried

about this incoming market crash, which is

surely going to happen. Happen. We just

don't know when it's gonna happen. It's

not even a matter of if it's gonna happen.

It will happen. It could be next week, it

could be next month, it could be in the

next 2 months. Who knows? So this week has

been pretty bad in the stock market.

Everything is red, everything is down.

It's just red, red, red. I'm actually

quite new to the stock markets. I only

just started investing last November, and

last year everything was crazy.

Everything was just going up, up, up.

Every day was a green day. It didn't

matter where or what you put the money

into, it would be going up in a week or in

a few days. It was amazing. I felt

addicted to it. But now I'm starting to

get a bit worried. What if the market just

bleeds and bleeds and bleeds and the days

of things just going up and up are over?

So why is the market down so much this

week and why would it go even more down

next week and in the following weeks?

Well, there's many negative catalysts that

are coming into play recently. So, first

of all, there's a brand new president who

loves taxes. He's increased the capital

gains and dividends tax from about 20% all

the way up to 43%. That's crazy.

That's almost double the amount of tax

that people are going to have to pay. And

that's a bad thing because it means people

are going to have less money to be able to

pump into the stock market. People are

going to be less willing to put money into

the stock market if they're going to have

to pay so much in tax. The stock market is

kind of like a balloon, a massive balloon,

and the way you inflate and grow a balloon

to make it bigger is by pumping air into

it. And air is kind of like pumping money

into the stock market, and if there's less

air, then the balloon is going to grow

slower. Businesses are also going to grow

more slowly now because the tax has just

been increased by so much. If the tax has

been increased by 10 or 15%, then

companies and businesses are going to grow

more slowly by 10 or 15%. One of the

reasons why my portfolio was down so much

this week is because I have a lot of money

in the oil industry. EPD, one of my

biggest holdings, is in the oil industry.

And we all know the new president Biden is

kind of against oil. He wants clean

energy. He wants to cut down on carbon

emissions. So if you're like me and you're

quite heavy into oil stocks, you're going

to see a bit of a hit. I'm sorry, but

that's just how it's going to play out.

Another reason why the markets have taken

a bit of a hammering this week and are

going to get even more hammered next week

is because earnings week is coming up

soon. There's going to be a lot of

earnings being released next week from

massive companies like Microsoft and

Apple. So what happens when a company

releases their earnings is they basically

tell everyone how much money they've made,

and if they beat the estimates and the

earnings are higher than what people

estimated, then everyone's happy and the

stock goes up. However, on the negative

side, if their earnings don't beat their

estimates and they earn less than what was

estimated, then the stock takes a bit of a

hit. For example, I had Wells Fargo a

couple weeks ago and their earnings were a

little bit lackluster, and because of

that, the Wells Fargo stock dropped by

about 7%. I panic sold and got rid of it.

And a lot of people, especially these big

institutions who have lots of money

invested, they tend to pull out the money

and have a massive sell-off before

earnings because they don't want to take a

risk. What if Microsoft or Apple has a

lower estimated— lower earnings than what

was estimated and the stock drops by 7 or

10%? Then these people who have a lot of

money in Microsoft and Apple are going to

take a massive hit. So they take out the

money, do a massive sell-off before

earnings are released and announced, just

to play it safe. So what we're seeing is

massive sell-offs Sell-offs in companies

that are huge in size. Microsoft and Apple

are massive. They take up a massive

section of the S&P 500. So any changes

in these massive stocks is going to affect

the entire index. Since the size of

Microsoft and Apple are so large and

massive, any changes, positive or

negative, will have massive repercussions

on the entire market. The stock market is

kind of like an ocean with loads of little

boats, and Each boat represents a

different company. Now there's going to be

very tiny boats representing small

companies, and there's going to be huge

gigantic boats the size of oil tankers

that represent huge companies like

Microsoft and Apple. When these massive

boats move, they cause massive wave

and ripples in the ocean affecting all of

the little boats. So all of these massive

sell-offs from these big institutions are

having a big effect on the market as a

whole. That's why we're seeing a lot of

red. And yeah, it's sad, but just wait

until after earnings week next week and

maybe things will bounce back again.

Another reason why the markets may crash

very soon is because, well, the markets

have just been growing at an insane rate

recently. They've just been going up and

up and up non-stop. The S&P 500 has been

recording all new highs every single week.

This is just not sustainable. Things can't

just grow and grow and get bigger and

bigger and bigger without any kind of

pullback. You see, the stock market is

kind of like a massive balloon. You keep

pumping air into it over and over and over

again, it will get bigger and bigger until

it pops. So as you can see, there's all of

these negative catalysts coming all at the

same time, all at once. And everyone's

going to panic. Everyone's going to think,

oh no, the market crash is coming,

because people have been talking about an

impending 2021 market crash since the

beginning of last year. They've all been

going on and on and on about it. Oh no,

when's the next market crash coming?

When's it gonna happen? It's gonna happen

in spring 2021. And then people thinking,

oh no, it's happening now, and everyone's

gonna panic sell. And this is what's gonna

cause the crash— everyone panic selling

all at the same time. If no one panic

sold, then there wouldn't be a crash. And

because there's been so much growth last

year, just insane amounts of growth, it's

just skyrocketed to the moon. There has to

be some kind of pullback. There has to be

some kind of correction in the market to

bring things back down to earth, to bring

things back to reality, because we're not

living in reality right now. So here's

what I plan to do. I'm not going to sell

all of my stock. I'm not going to sell off

my whole portfolio. I'm gonna do some

trimming. I'm gonna sell some stuff that I

think is gonna get hit hard next week.

I'm gonna sell it today. Maybe I might

even have to sell some things at a loss.

I don't mind selling it at a loss because

it's gonna be at an even bigger loss next

week. So I'm probably gonna trim my

portfolio and sell off maybe 40 or 45%

of it. So I've got a lot of cash on the

side ready to deploy. Now, what happens

when a market crashes is you really want

to buy when it's crashing. If you bought

into the market last year in March when

the rona rona blew up the world and the

economy, if you bought in when everything

crashed, you would be making so much money

right now if you bought in at the crash

and then sold at the top. So what you want

is you want lots of money readily

available so when it does crash, you can

start buying up all those bargains. So my

conclusion is I see volatile and stormy

days ahead. Maybe for the next couple of

weeks we could see some very high

volatility, a lot of red, a lot of sad

news. But don't be sad, be happy. Just be

happy that there's going to be a lot of

bargains, a lot of sales to get

some good stocks at good prices. And when

things do start going back up, you'll be

happy that you bought the dip. And I think

the problem is a lot of newbies to the

stock market are going to learn the hard

way that stocks don't just only go up.

They go down, they go sideways, but they

do eventually go back up. Sometimes sooner

than later, sometimes it takes many years

for them to go back up. The most important

thing to do is don't panic sell and buy

the dip. And yeah, that's basically all I

had to say. If you're from the UK and

you're interested in getting started in

the stock market, then I suggest using the

app called Freetrade. It's very good.

Click on my link, my referral link, and

then we'll both get one free stock.