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0% Interest Rates + Dow Jones BIGGEST Drop Ever (what I'm buying AND avoiding) - YouTube
Channel: Wealth Hacker - Jeff Rose
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what's going on y'all welcome back the
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channel both hacker labs we got another
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edition of one take no edits we're just
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running through this just give you
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updates on what's going on at the market
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things to know things to expect man I
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wish that today didn't play out the way
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that I thought it would for those that
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are I mean you guys are fall along you
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know what's going on last Friday we had
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a rally nice little rally I did a video
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at last Friday and I think we all
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expected this that it would be a very
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short-lived rally over the weekend you
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know we've had a lot of announcements
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one of the biggest announcements and
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concerning to the market is the Fed
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slashing interest rate so right now we
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are back to where we were several years
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ago we're down to that zero to 0.25
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percent interest which there are some
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good things that can come along with
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that but what we're going to experience
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in the short term not really super
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excited about that so I just want to
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talk about some of that also at the end
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of this I'm going to share some of the
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things that I am NOT buying and also
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some of the things that I am buying so
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stay tuned for all that but going to my
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screen here and here's one of the things
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we see is the Dow Jones Dow Jones
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oh gosh that's ugly um down two thousand
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nine hundred and ninety seven points for
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a percentage drop of twelve point nine
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three percent and just looking at a nice
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little dab or excuse me a CNBC article
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just kind of sets it out there right now
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for those aren't following me on Twitter
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be sure to check me out at @j jeff rose
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and this was a tweet that i put out just
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a little while ago know how many of
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you've seen the movie jim carrey's movie
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a liar a liar
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that's a one of my favorite movies a
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scene they're just really encapsulate
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encapsulate what happened with the
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market because I think the last time I
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checked we were down about 1800 points
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and we just lost about 1100 points near
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at the clothes so yeah so we've got got
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all that going on
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if you hadn't checked out my last videos
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from last
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I have I I still feel it's going to get
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a lot worse before it gets better and
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does that mean that I think we're gonna
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hit the 2009 level you know March 2009
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where the Dow got down to 6500 I surely
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hope not but the reality is that can it
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get back to the 2007 high of 14,000 yeah
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I really think that it could and if you
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look at percentage-wise you know the SP
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was down 37 38 percent back in 2008 you
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know that would put the Dow Jones at
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around 18,000 if we were to look at the
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percentage drop from the high of 14,000
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down to 6500 that was a 54% dropped over
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the course of I think is like 17 months
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so I mean we're not there yet and right
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now with all the uncertainty going on in
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the world I definitely do not feel that
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that is a a crazy irrational belief or
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thought that that could happen I did
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want to highlight an article here so
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read this over the weekend you know how
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to keep your money safe as a markets as
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Marcus panic over coronavirus and you
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know there is some general stuff that
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they highlight here but you know they're
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still you know some decent things and
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really kind of playing along with the
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the drop in interest rates what's going
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on there which I'll highlight in a
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second here but I did want to highlight
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this go ahead and he'll large - this
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real quick I thought this was pretty
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interesting but just showing different
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epidemics that have occurred you know
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over gosh going back I guess to 1981
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going back to the hiv/aids scare and it
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shows here like the longest duration you
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know that we've had just with the market
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correction and looking at a bad market
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like going back to 1981 it actually is
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the longest it was five months all the
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other things that pride illnesses
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viruses that were familiar with with
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SARS swine flu h1n1 is Ebola Ebola just
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some of those like I can remember you
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know we didn't really have a lot of
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effect
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you know there and then I love seeing
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this you know what was the market return
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after you know those those different
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epidemics that release and you know we
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see some pretty nice returns thirty-six
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percent twenty nine percent SARS back in
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2003 sixty-six percent two percent are
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upside to years after everything
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happened
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the only negative there we have is the
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dang fever back in 2006 in reality that
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was just the timing what happened with
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the mortgage crisis so really nothing to
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do with that I don't even know what that
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was all about so that I thought was some
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pretty interesting you know just try to
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put everything into perspective
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obviously we've this is a bit different
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you know what's going on with all the
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school closings and everything that's
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closing down but you know just sharing
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some of the the general tips here you
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know what to do with your money during
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times like this invest for the long-term
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you know for those that are in you know
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those that have invested you know right
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now is not the time to cash out I've
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said this time time again on what spend
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too much time on that for those that are
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asking me you know what about if I have
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a 401 K you know is this the time to
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invest and if we are like how it says
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you know contribute gradually you know
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if you have a 401 K and you still have a
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job be grateful for that but yeah keep
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adding to your 401 K you know I was
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talking to a buddy of mine who moved I
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think about ten thousand dollars into
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the market I'm really sure where he's
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invested I actually think he's with
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betterment and he moved two thousand
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dollars into the market he said on
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Friday I didn't get any clarification
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did he do that
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at the beginning at Friday or the end of
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Friday I hope that he was able to get in
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at the beginning of Friday which if he's
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with betterment I'm not sure if that
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actually worked out in his favor
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either way yeah you know he he you know
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we were just talking he's like yeah you
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know I know I probably could have waited
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to see if the market drop some more and
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like what you still got in at a nice
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discount you know obviously the discount
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is even more discounted today
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nonetheless though you know if you are
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getting in right now even if the market
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goes down even more which I think it
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will you're still buying at a very very
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steep discount to where it was you know
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a few weeks ago so don't feel that you
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know like for those who are trying to
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wait it out which I'll admit I'll raise
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my hand I am one of those waiting out a
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little bit more
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which I'll miss it here here in a second
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but yeah so if those that have a 401k
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and you're just doing gradual
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investments you know if you if you're
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sitting on a big chunk of cash and
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you're waiting yeah I know there's no
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such thing as market timing but I'm just
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kind of looking at what's going on in
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the world and there's a lot of
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uncertainty you know in our area schools
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were actually just announced cancelled
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up until April the 6th so still things
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are so up in the air right now and I'll
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tell you the one thing that market does
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not like is uncertainty market does not
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like uncertainty and right now we've got
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a whole love and certainty going on all
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right so that's one of the things going
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on doesn't really talk about oh I guess
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some of the long-term let's go to this
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article here you know talking about
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interest rates you know mentioned that
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here's the beginning the feds slash
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rates and you know one of the things
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that you can do and I don't know if this
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applies in your situation I actually got
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a text from a buddy of mine who has a
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home and he was able to refinance his
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his mortgage and he was able to
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basically keep this payment the same
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take eighty thousand dollars out all
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because of seeing a drop and I don't
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think that he's been I don't know what
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his interest rate was before but
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nonetheless like he was able to take
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advantage of what's going on right now
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so this could be a time that if you have
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a mortgage and you have looked into
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refinancing basically anything that you
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have right now that any any debt that
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you have whether it be a mortgage a
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personal loan even an auto loan could be
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it could be your credit card debt
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probably not student loan debt since
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they're pretty well
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sticking their guns on what those rates
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are but this is a time that you can look
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at possibly refinancing you know
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definitely companies are or the rates
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are dropping you know they will be
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basically it's one of those situations
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where it doesn't hurt to ask you know I
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mean looking your credit cards looking
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at whatever debt that you may have I
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mean picking up the phone sending a
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quick email and just finding out you
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maybe it's just going on their website
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and starting a chat with their support
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support line like this is a time it's
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unprecedented so it definitely does not
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hurt
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ask it inquire but mortgages student
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loans I haven't seen a lot of change on
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that the only change I saw I don't know
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if it was just for the state of New York
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but basically they weren't stopping
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payments but they were basically
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applying all payments to go towards the
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principal not towards the interest which
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I saw somebody tweeted and said like
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though that's not really helping I'm
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like that's actually a pretty big deal
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you know that you're actually going
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towards paying off the principal do you
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love how my ad here is for stock acts
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can you tell like it's a site that I
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visited a lot gotta love those
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retargeting ads okay that's are some of
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the general tips I want to share with
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you what's going on with interest rates
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the market all that good stuff now I
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want to highlight some of the things
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that I'm not buying and also some things
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I'm buying and one of the things I'm
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suggesting that you stay away from right
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now one of the main things I'm not
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buying right now and this is so a
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strategic product placement is behind me
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is some sneakers now many of you are not
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sticker heads like myself but so these
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are some Nike off whites these are
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actually worth 500 bucks a bottom on
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eBay this was actually maybe to wear but
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actually more of an investment I was
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hoping to resell these for three four
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hundred dollar profit for these so but
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right now just thinking this through I
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don't really think that a lot of people
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are going to be spending a lot of their
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extra dough on premium sneakers yeah
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there's gonna still be some that are
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still willing but I've got several right
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now that I'm looking to sell and right
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now I just don't really feel like adding
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that to my inventory so that is one of
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the things that I am staying away from
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right now so one of the things I'm not
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buying it trust me that's hard for me
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but my wife and I have been talking
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she's like you know maybe just right now
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is not a good time to increase your shoe
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collection I'm like alright babe I'm I'm
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with you on that one one of the things
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that I am buying is oil and not like
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actual barrels of oil you know I don't
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feel like I'm gonna be storing any oil
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in my house or anything but right now
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what I'm showing you right here is the
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ETF oh I L this is through Barclays and
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I
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and right now at the time of this
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recording at the end of market clothes
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is trading about six dollars and two
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cents a share and I mean you can see the
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plunge that happened pretty much last
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week and I'm not looking as this as like
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a short-term play I don't think the oil
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is gonna spike up in the next two to
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three months or anything but as you can
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see just going back earlier part of well
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earlier part of this year you know we
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were at about twelve dollars going back
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to last year anywhere from like $13 a
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high of 14 I think fifteen dollars or so
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yes it has been lower going back to 2018
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but I do feel eventually you know this
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will come around so this is more of a
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long-term play don't know exactly which
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account I'm going to be purchasing this
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in for those that are following along I
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got my m1 Finance account which is more
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for long-term growth which makes more
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sense but I've got more cash in my Robin
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Hood account which is meant to be more
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of a dividend play I'll be letting you
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know when whenever I make that decision
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have a few other stocks that I'm looking
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at I'm still not ready to move in I
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still for me I'm kind of looking at that
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Dow Jones in the teens eighteen thousand
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it's kind of the number I keep telling
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myself was like well I'll start moving
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in I do feel it will potentially get
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lower but I don't want to feel I'm not
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gonna be all the time so I feel like
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that's a pretty good time to start
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moving in not just the money I have in
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my m1 finance Robinhood accounts but
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also some other cash of guys sitting in
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other accounts as well so that's kind of
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what I'm looking at one of the things
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that I feel like is a thing to stay away
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from right now is Lending Club and this
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is one an investment that I've talked
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about in the past just so that we're on
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the same page here this is I'm not
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selling my notes I'm not looking to get
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out of my notes I'm just not looking to
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add any more money into this I'm
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actually going to stop the reinvesting
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into purchasing new notes as well so any
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dividends or interest that I make from
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people paying back their notes to me I'm
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just going to go have it and just sit in
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cash right now and I don't mean to be
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fear casting here but thinking about you
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know what is Lending Club
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lending I mean these are basically
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personal loans that people are getting
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and when a lot of uncertainty so going
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on right so with people's priorities and
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things that they're paying off you know
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I mean they got to pay their rent they
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got to pay their electricity got to buy
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their groceries they got pay their
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internet especially if they're working
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from home and for an assessee say they
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got Netflix I got Disney Plus Amazon
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Prime like all the things that people
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are going to keep and one of the things
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that are going to be first to go is
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stuff like this now obviously is gonna
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hurt their credit but I mean times like
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this you don't don't care about the
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credit you know they just care about
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their well-being and be able to stay in
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their house or their place and be able
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to live the life the best they can so
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that's just one of the areas I feel that
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is going to be taking a hit now I hope
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it doesn't play out but nonetheless I
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mean that just feel like that's going to
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be an area that's going to get hit as
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far as an area that I have talked about
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in the past and I still think is a good
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option still is fund rise so now we're
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looking at a online real estate
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investing platform now as far as
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liquidity goes I don't be putting money
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into this thinking that you're gonna be
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able to cashed out because you know the
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fund rise does have that ability to
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prevent people from liquefying you know
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their investments inside fund rise but
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going back to that whole model once
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again not the model but just the belief
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that now fund rise has a diversified
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portfolio they do have a lot of
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commercial real estate which obviously
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could play into the economy but also
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they have a lot of residential
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properties and people paying rent yeah
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they could be late but nonetheless I
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mean people are going to do what they
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can because they don't want to be on the
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streets they want to be live in their
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place and get their internet and watch
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Netflix so that's why I feel like fund
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arises one of those I don't say the
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recession-proof but definitely feel like
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comparing fund rise to Lending Club like
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I feel a lot more bullish a lot more a
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lot more feel good with fund rise so
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that's when the areas that I'm gonna say
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I'm adding new money right now but I
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will say it's one areas
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I'm not as concerned about but I am a
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little bit more concerned on Lending
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Club so that's kind of what I have going
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on right now as things start to unfold
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we'll be sharing more as far as areas
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that I will be stocks I'll be buying
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other opportunities I'll be looking at
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and all that good stuff so really
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appreciate you hope that this is some
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value to you if it is be sure to hit
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like subscribe if you haven't shared
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this with anybody else that might need
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to hear this
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and also just I got to remind you that
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it's your money it's your life and only
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you can make it awesome until next time
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peace
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