Receive a Free Stock Valued Up To $1,000 when you open an account and make a deposit! Go to and use code GRAHAM - Add me on Instagram: GPStephan
FOLLOW MARKET SENTIMENT BLOG HERE:
GET MY WEEKLY EMAIL MARKET RECAP NEWSLETTER:
The YouTube Creator Academy: Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: - $100 OFF WITH CODE 100OFF
THE 2023 MARKET:
One study analyzed investor behavior - They found that “low risk-free returns caused SIGNIFICANTLY more risk taking for higher-yielding investments… Those findings begin to normalize when risk-free interest rates are higher, even WHEN the riskier investments still the same amount pay more.”
Basically, the conclusion they found was that, when risky returns earn SUBSTANTIALLY more when compared to a risk-free return…investors are more likely to go for it. But, there’s a diminishing return on safe behavior once risk-free interest rates are above 5%, meaning we could POTENTIALLY include that - the worst is behind us once risk-free rates hit 5%.
Separately, the Market Sentiment Blog pointed out that out research that - within the SP500…the top 20% of stocks account for pretty much 100% of growth. One theorized that you could identify stocks BEFORE they increased in value by looking at two factors:
One: It must be a company in the top half of their field - meaning, greater than average market cap…shares outstanding…cashflow..and sales. He found that, under those conditions - companies gave close to double the return of the SP500, while only adding slightly higher risk.
And Two: You should close attention to the Price-To-Earnings Ratio. He found that all stocks with high PE Ratios perform substantially worse than the market, while low PE ratios tend to do much better.
THE MARKET BOTTOM:
Another study found that you could look at 4 factors to determine when markets are fairly priced:
One option suggests that we look no further than the Yield Curve. An analysis found that the bottom has NEVER occurred until the yield curve is non-inverted…and, today…we are the most inverted we’ve been in more than 40 years.
Two: The VIX. Morgan Stanley says that “Generally speaking, we do not see bear markets bottom without panic selling, similar to what was seen in 2001 and 2020…Historically speaking, no bear market has ever bottomed without a VIX reading of 45 or more.”
Three: An Ally Invest article pointed out that - a contrarian way of finding the bottom can be all be pinpointed to: The Put To Call Ratio. For those unaware, a CALL is bet that a stock is going to move higher…and, a PUT is a a bet that a stock will move lower…and, when the market sees 1.8 puts for every call…that’s a sign of retail capitulation, where the worst is probably already priced in.
And Four: Look at the 200-day moving average. Ally also suggests that, when fewer than 20% of equities are trading above this threshold - the market is beginning to bottom.
My ENTIRE Camera and Recording Equipment:
HOW TO OUTPERFORM THE MARKET IN 2023: Thanks To Market Sentiment Blog
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at [email protected]
*Paid endorsement. This does not constitute investment advice. Investing involves the risk of loss, including the potential loss of principal. Brokerage services for US-listed, registered securities available on Public are offered by Open to the Public Investing, Inc. (OTTP), member FINRA & SIPC. Brokerage services for securities issued pursuant to Regulation A of the Securities Act of 1933 are offered through Dalmore Group, LLC (Dalmore), member FINRA & SIPC. OTTP and Dalmore are not affiliated entities. Cryptocurrency trading is provided by Apex Crypto LLC (NMLS ID 1828849). Apex Crypto is licensed by the NY State DFS.
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice. Public Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/
Read More
By: Graham Stephan Title: How To Use The 2023 Market Crash To Get Rich Sourced From: www.youtube.com/watch?v=x95WU8JR0G0
