In this video,
we're going to talk about three things.
First,
is the stock market going to crash?
Second,
when will we see the next market
crash? And third,
what can you do to protect
yourself? So,
let's get started.
Hi. I'm Markus Heitkoetter
and I help people to make more money,
have more time,
and have more fun in their lives.
People come to me because they feel stuck
in their lives and they want to know what
exactly I did to become
a multimillionaire who is now traveling
the world and enjoying life.
And incase you're wondering,
yes, this here is a hotel
room right now.
I'm on the Bahamas.
Here's a picture from my room.
Isn't that a view?
And here is the beach.
Quite awesome, isn't it?
So, when I talk to people in my live events,
they often tell me that they worry
about the next stock market
crash. They worry that they will lose
a good chunk of their retirement account
again as they did in
2008.
So, they're asking me - how can I protect
myself from the next crash?
Is it coming? And if so,
when? So, let's take a look at the facts.
Right now, we're in the longest
bull market in history.
This means that there has never been
a time like this where the market just
goes higher
and higher every week.
We're making new record highs
but what goes up,
must come down.
And so, the question is - when
will it end?
Will there be another crash?
And the answer is absolutely!
Of Course
there will be another crash.
The market has to correct every now
and then. Take a look at this chart.
This chart here shows all market
corrections starting at
1946
and what do you notice?
Look at this.
Every few years there
is a correction.
1970,
74,
78,
82.
Some are more significant than others
but on average as you can see
there has been a correction every
six years.
Right now as I am recording this
and it's October 2018.
And we haven't had any corrections
since 2011.
By the way, a correction means that
the market retraces by
at least 20 %.
So, this brings us to the next question - when
will we see a correction? Let's Talk about
this first and then we'll talk about
what you can do
to protect yourself.
But first make sure to subscribe
to this channel
and hit the little bell icon so that
you get a notification whenever
I post a new video.
When will we see the next correction?
The signs are already there.
Right now, the interest rates are
at the highest level since 2011
and high interest rates are bad
for stocks and here's why.
When Interest rates are high,
investors prefer to put their
money in high interest CD's
or or bonds instead of
the stock market.
They move their money out of the market
into safe investments.
How do they move money?
Well,
they're selling stocks to
get some cash.
And what happens when a lot of people
are selling stocks?
Exactly!
The price of stocks go down.
Now, the economy looks strong.
Last week, the unemployment rate was
at 3.7%.
We haven't had an unemployment rate this
low since 1969.
By the way, that's the year I was
born. Anyhow, so as
the economy gets stronger,
the Fed will keep raising interest
rates. Most likely,
they will raise interest rates again in December
and that's bad news for the stock market.
As you know right now.
By the way, what do you think?
Will the Fed raise interest rates again in
December? Leave a comment
and say 'yes raise'
or 'no raise'.
So, what can you do to protect
yourself from a downturn?
There are three things you
can do right now.
The first thing is doing
nothing,
which I believe is the absolute worst
thing to do.
If you own stocks right now
or a 401K
or an IRA and you do nothing,
your portfolio will crash
when the stock market crashes.
And as you have seen earlier,
the stock market could crash 50%
easily.
The second thing that you could do is
buy long term put
options. So, these are called 'leaps'
and they will make your money when the market
crashes. If you don't know what put
options or leaps are, leave a comment
below and say 'what are puts'
or 'what are leaps'
and I will make another video in which I explain
it. The third option that you can do is
learn how to
trade and in my opinion,
this is the best thing to do.
Now first of all, there's a difference
between trading
and investing.
When trading,
you're only holding a stock
or option for 5 to
15 days.
That's it. There's no long term investment.
You get in
and out quickly.
And that's what I do.
I don't have any long term
stock investments in my portfolio
because I trade
and I take advantage of the small
moves that the stock makes.
And the best, you can make money
when the stock is going up
and you can also make money
when the stock goes down.
Especially if you know
how to trade options.
So, let's summarize.
First is the stock market crash
coming.
Absolutely.
Second, when will it come?
I believe it will come soon.
The warning signs are already here.
And what can you do?
3 things you can do nothing,
which is the absolute worst.
Number 2, you could be buying
leep puts
and that is quite
okay.
And the third thing you could do,
which in my opinion is the best,
is learn how
to trade.
And I prefer stocks
and options.
So, what would you do?
Leave a comment below
and let me know how you plan to
protect yourself from the next stock
market crash.
I hope you enjoyed watching this video
as much as I enjoyed making it
for you. And if you know anybody who might
find this video helpful feel
free to share it
and I'll talk to you soon.
Click on like and leave a comment and let me know what you think. And
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