Have We Reached the Bottom of the Stock Market Pullback?

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0:31members of the Board of Trustees, including Martin Luther King Sr. It's the true story of protest and rebellion in Black American history that you'll never forget. I'm Hans Charles. I'm Menelik Lumumba. Listen to The A-Building on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. Black history lives in our stories, our culture, and the conversations we still have in today. This Black History Month, the podcast I Didn't Know, Maybe You Didn't Either, digs into the moments, perspectives, and experiences that don't always make the textbook. Let me tell you about Garrett Morgan.

1:08Bruh had to pretend he didn't even exist just to sell his own invention. Listen to I Didn't Know. Maybe you didn't either. From the Black Effect Podcast Network, on the iHeartRadio app, Apple Podcasts, or simply wherever you get your podcasts. I didn't know. earners what's going on listen EYLU is relaunching revamping retuning that's right we're creating a new educational experience that's more expansive shawty tell what we got yes 2023 we got a lot in store a lot planned for you guys so you know that EYLU already includes monthly financial planning calls with me book club calls with Troy real estate calls with MG the mortgage guy access to the home buying blueprint volume one and volume two part of the revamp will include 27 local chapters from across the united states live interactive teaching hands on not just pre-recorded videos plus 15 brand new curriculums the biggest just got bigger head over to EYLUniversity.com.

2:12That's E-Y-L-U-N-I-V-E-R-S-I-T-Y.com. See you there. I guess one of the questions that we get and it's kind of going over is people want to know where the bottom is, right? So like if we look at the EMAs, if we look at the trends, is there a bottom in sight? Are we near it? I guess in like 2020, it was the same type of question when we looked at COVID and it was like, wait, the market hit 13 ,000. I'm like, wait, this thing could fall. Where could it reach? So like, are we near it? Based on like what you're seeing, I guess some of the things I'm looking at, have we hit a trend line near the bottom?

2:52No, 540, 530 could be the bottom. That's fine. 5 ,400. So Tom Lee, Tom Lee predicts, he said that this is the best time to buy stocks now. And, you know, he's predicting a massive rally in a couple of months. What do you think? I agree. All the money's going to flow in. Like, listen, while... Okay, something I want everyone to take a look at. When the market is in triage, notice who isn't speaking. Buffett, Tula Jones, Druckenmiller, all the greats are being quiet and executing. All the greats in private equity are executing. They're buying, right? So if we get to... Like, we are really at a point where if the market is off 15 to 30 percent in some markets now is the time to buy we will have a nice rally probably come into app right after invest fest like the same way it did last year so if i'm buying now this should be the strategy buy in february and hold through october november you're going to get the best return term of the day asymmetric risk to reward so if i buy Right now, I have a higher probability chance of getting a 15 % or 20 % return now than opposed to if I did it two months ago.

4:12The market has come down to a level where I would want to invest. So if I'm getting in on a SPY 550 or 545, I can see probably by August or early September us being back at 600. now is definitely a time to buy if you look in the hole for the long term long term investment only there you have it is it time to ditch the chase of big gains and bunker down to safe value stocks only the real value is buying great companies at a great price I know a lot of times we talk about sector rotation and this argument is coming up again tech versus value the real value is to buy at the right price um are there some value stocks that i like for sure um waste management being one caterpillar being another home depot being another great but if you think that you're going to be able to get away from technology stocks when it's the only thing really dry well not only but one of the main things driving gdp in america debt and health care you're poorly mistaken um the real value is to buy at a deep discount and then concentrate rate.

5:30Warren Buffett's quote going to another quote. If you're a professional investor, I will focus on hyper concentration. I want to remind you, you only need four or five good stocks. And technically, if you have Bitcoin, like how some of your Bitcoin maxes, you only need three good stocks after you have Bitcoin. So I don't think it's the time to rotate into value. But if you buy great companies at a deep value, you'll get a better return that way. what value indexes yeah i was gonna say like so growth stocks value stocks i know the percentage for depreciation is something that people try to figure out and will create their own strategy is it do you keep it the same for for both right so i know i think you you had like a 25 depreciation i always like to be between 15 to 20 yeah i like 25 in tech is there is there a difference between value and growth or is it is it does it stay steady for both i think every sector is different um but a good exercise for everyone is go look at from the high of the market over a 15-year period how far does it fall because every health care is different from let's say energy energy is different from utility companies but for tech i i use earners what's up you ever walk into a small business and everything just works like the checkout is fast the receipts are digital tipping is a breeze and you're out the door before the line even builds odds are they're using square we love supporting businesses that run on square because it just feels seamless whether it's a local coffee shop a vendor at a pop-up market or even one of our merch partners square makes it easy for them to take payments manage inventory and run their business with confidence all from one simple system.

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8:40An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS-13 gang member from El Salvador accused of murdering a Texas man. A Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J. Trump's leadership. I'm Kristi Noem, the United States Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded. And over 100 ,000 illegal aliens have been arrested. If you are here illegally, you're next. You will be fined nearly$1 ,000 a day, imprisoned and deported.

9:23You will never return. But if you register using our CBP Home app and leave now, you could be allowed to return legally. Do what's right. Leave now. Now, under President Trump, America's laws, border, and families will be protected. Sponsored by the United States Department of Homeland Security. Like, if I get a 25 % drop in the sector, I'm related if it's a high-quality company. If you're looking at value companies, maybe 10 % to 18 % is somewhere I would like to get in. But if you listen to the show, like, I'm literally giving you guys the prices and companies of where to get in. And if you join Stock Club, we get all sectors across the board.

10:03but yeah 25 % in tech is why I usually like to give it for sure I was looking at Apple's chart I was looking at it on Friday as well will this thing drop 20 % it could but how many times looking at it from a historical perspective is key how many times in this history has it dropped 25 % right and then so or you go and chat GPT or Claude and ask the research isn't as hard now and it will tell you so when you see a rare moment like that happen then you know this is this is probably a prime time to start executing so if you're looking at where the bottom is with how many times does it drop 20 percent where nvidia we watched it drop 20 twice this year yeah for sure right and even lower so taking a look from a historical perspective how that stock has performed especially some of these these mega cap and these strong companies look at their historical perspective so you can start getting the inkling of all right this might be a good point of entry.

11:04Okay. The NASDAQ is flirting with 24-hour trading. Will this be a game changer or will this be another thing to give Wall Street more power?

11:19It's a mistake for most people. The prime times are going to remain as prime times to invest. American open, American close, London open. I know the illusion of having more access because the futures market has always been with 23 hours. There isn't as much liquidity during certain times of day, but you're not going to get a great trade at 8 p.m. on a Tuesday night. I know they're trying to sell the illusion of inclusivity, but in a world that has been created around exclusivity, please don't fall for this trap. and be very careful. Your trading plan as a result should not change. I commend them for trying to keep up with innovation.

12:06We have to give Robin Hood a lot of credit for making these innovations come through faster than ever because prior to them, NASDAQ or any other exchange had no reason to do this. But your plan should not change at all. And also, if you see spikes in the noon session or a 7 p.m. trade, is probably going to be smaller firms who can't compete with Piper, Goldman, Citadel, State Street that is finding arbitrage in the market and you don't want to go against those whales that are in the market. So be very careful, but your trading plan should not change at all. Yeah, I think it's interesting, right?

12:50This speaks to the retail investor, right? Because everything that you just named was institutional. So it speaks to the retail investor. And again, it speaks to innovation. And how are the new retail investors doing this? If they're trading crypto, they've already been in 24 hours. For sure. A lot of the new retail investors have used platforms like Robinhood because of the use case. And they said it's a lot easier. And they use gamification, allegedly, to help bait those people in. And so that's the interesting standpoint of it. But one of the things when we talk about trading is value. Right?

13:24So if you want to know when it should be trading, look at the volume and look at the times that volume is increasing versus the times that volume is decreasing. And so if you have it for 24 hours, but nobody's trading and you're doing some of these derivative trades where there's futures, I know options doesn't do 24 hours. But yo, it could get real scary really quick. And that only helps the brokerage. Right. Because this is one of those things. I know we're not using gambling as a focus, but like, yo, the house is going to win. in that scenario when there's no value and you're trying to figure out how to get a trade in if you're not seasoned at this um i don't recommend it it's just like i didn't recommend same day option trading like yeah can you make money doing it will a lot of people lose money yeah an illegal alien from guatemala charged with raping a child in massachusetts an ms 13 gang member from el salvador accused of murdering a texas man a venezuelan charged with filming and selling child pornography in Michigan.

14:24These are just some of the heinous migrant criminals caught because of President Donald J. Trump's leadership. I'm Kristi Noem, the United States Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over 100 ,000 illegal aliens have been arrested. If you are here illegally, you're next. You will be fined nearly$1 ,000 a day, imprisoned and deported. you will never return. But if you register using our CBP Home app and leave now, you could be allowed to return legally. Do what's right. Leave now. Under President Trump, America's laws, border, and families will be protected.

15:07Sponsored by the United States Department of Homeland Security. 1969. Malcolm and Martin are gone. America is in crisis. And at Morehouse College, the students make their move. These students, including a young Samuel L. Jackson, locked up the members of the Board of Trustees, including Martin Luther King Sr. It's the true story of protest and rebellion in Black American history that you'll never forget. I'm Hans Charles. I'm Menelik Lumumba. Listen to The A-Building on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. Black history lives in our stories, our culture, and the conversations we still have in today.

15:46This Black History Month, the podcast I didn't know. Maybe You Didn't Either digs into the moments, perspectives, and experiences that don't always make the textbook. Let me tell you about Garrett Morgan. Bruh had to pretend he didn't even exist just to sell his own invention. Listen to I Didn't Know. Maybe You Didn't Either from the Black Effect Podcast Network on the iHeartRadio app, Apple Podcasts, or simply wherever you get your podcasts. I Didn't Know.

16:16When segregation was a law, one mysterious Black club owner, Charlie Fitzgerald, had his own rules. Segregation in the day, integration at night. It was like stepping on another world. Was he a businessman? A criminal? A hero? Charlie was an example of power. They had to crush him. Charlie's Place, from Atlas Obscura and Visit Myrtle Beach. Listen to Charlie's Place on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. This is an iHeart Podcast. Guaranteed Human.