 Hey, how's it going everybody? Welcome. Welcome. It's happy Monday. Yep, July 19th How's everybody doing good to see you get to see everyone be sure To hit the subscribe button and the notification button. Okay? Welcome to dedicate it to financial literacy once again. I'm Russell Moore coming to you live again and Just it's been an interesting day. And so I'm gonna keep this segment pretty brief today I just wanted to talk about The current market sell-off and how the market went today and it was it was absolutely crazy I mean think about this for a second the Dow dropped up to about 800 points today ended up at around 700 points down 2% S&P 500 1.59 NASDAQ 1.5. I mean you guys are we in the midst of a sell-off? Are we in the midst of a correction finally, huh? And you know some people may be panicking and scared during this time But look the market has to correct whatever goes up. What do I say? Whatever goes up has to come down Okay, so I just want to encourage everybody do not be afraid do not be afraid Do not be afraid Buy on the dip But don't buy too soon So everybody's been telling us when we've been getting warned by most experts out there that the correction Of the correction of the market was coming and now it hear it. I believe we're there. I really believe now There's a caveat to this and that is this We are also in the midst of earning season. In fact just this week alone There'll be 300 companies Reporting their earnings 300 companies IBM did today and if you look at their stock, they're up about 1% 1.2% Netflix Tuesday the 20th Many people anticipating that their their second quarter went well and they believe that That stock is gonna go up tomorrow Be careful be careful just because it's earning seasons and Don't just jump out there. Do your homework, okay? I do think that Netflix I believe they had a good good second quarter. I believe they're gonna meet their Expectations, but we'll see you never know you never know what's gonna happen in this business. All right, so I just want to encourage everybody again Stay to the course stay to the course the market We may be going for a little rough ride here and let's not talk about crypto Bitcoin and a dose coin is down what it's a it's at 17 cents right now It's so keep your eye on your on your crypto, okay But don't panic everybody. We knew that this was coming the bond yields down Was down today and that's really got a lot of people did spook why because of the COVID-19 a new Delta variant Strand that's that's out the numbers are on the rise for COVID which usually affects the market Okay, and that's when people start selling off. So get ready for the rocky ride on the sell-off stay safe Continue to wear your mask and social distance everybody. Okay, but I will say this That's what's affecting the market as of today a lot of COVID worrying. All right so Don't be moved and don't panic. All right This is going to happen from time to time. We're going to see red The market is going to be filled with red and so Look out during this earning season as well that some companies are going to do well for a day or two And then they'll go right back down People are selling off particularly at retail retail Retail investors I would say that too for the big boys the hedge funds and all the Institutional investors people are selling off. They're selling off. They're giving getting getting rid of some of their positions Those out there that are dealing with the options call options I Notice it's been an upswing it's been an increase of selling of call options today and so This is going to happen. Okay. Just stay the course Another thing I want to I want to point out too is that The interest rates For the housing market People are concerned that the Fed people are concerned that the Fed is going to raise raise rates Raise the interest rates and I I know it's going to happen Most people think that it's going to happen next year I would not be surprised if the feds raised the rates before the end of this year and then next Three months meaning the third quarter I know some of you are looking at me like what are you crazy? I would not be surprised if the Fed if the Federal Reserve If I would not be surprised if they raise rates within the next three months Now It probably won't happen. Maybe the beginning of next of next year 2022 the first quarter of 2022 But I would not be surprised By the fourth quarter if the rates aren't being raised and and hey What about the housing market? So then what if the houses right now? They're the lowest around 2.9 2.7 You can get a lock in a rate for a 30 year fixed loan 15 year fixed loan, but Hey, those rates could go up you know Inventory is down But what from what I'm reading and what I know what I notice is that lumber and some of the materials is going down as well So that's that should bring down the price of some of the homes Hopefully, you know some of the builders might say hey Hey, people think that the lumber prices are still going up They might still try to you know feed on that and use that to their advantage to raise their prices It's been and this is reportedly what has happened Because of the lumber prices going up with homes that builders are actually with all the materials that everything going up Builders are actually adding at least 20 to $30,000 more per home To build it To build a home. There is because of the prices of the lumber and all the materials copper and everything 25 25,000 to $30,000 more for a brand-new home. Wow. All right. You know what my suggestion is about the homes wait Wait, so people said no lock in your rate now before the rates go up Wait, don't be in a hurry to jump out there and get a home There's so much of the price the the bidding wars that are going on wait Wait if everybody started waiting think about this for a second and that means the bids will go down That means the bidding wars will go down Let some of this inventory catch up Let some of these home builders get out there and hustle and start building some homes We got land throughout the country build these homes and then we can go back And start purchasing All right That's just my suggestion if you find a great deal. Here's the thing you find a great deal. Take it You'll be able to get it get it now while the rates are low. Okay But don't Overpay for something that you shouldn't This is ridiculous some of the my wife and I we're looking for a home and our religious say hey You need to be over 70,000 over the asking price $70,000 over the asking price a hundred thousand dollars over the asking price. Are you kidding me? No, I'm not doing that. I am not going to go into a bidding war for a And pay a hundred thousand dollars more in order to ensure that I get that home And I know that that home when it's appraised is going to be about a hundred twenty five thousand dollars more than what I'm going to be paying I Mean less I'm sorry the it's going to be appraised at a hundred twenty five a hundred thirty thousand dollars less than what I would end up paying Where's the equity later on? Will this home actually? Appreciate to the to what I paid it paid for that's what you want to find out Okay, it's appraised that it's appraised at two hundred thousand two hundred fifty thousand dollars, but you pay three fifty Will that house eventually get to three fifty four hundred four fifty will it appreciate to that amount? That's a good question to ask before you go and jump into that mortgage All right. Anyway, um This is Brussels Monday rant The market is down today be careful Be careful, especially you options people out there there with your call options Going long be careful Let the market watch the market do your homework do your research look at the charts Let's look at these charts for all those that are technical analysts and Me personally, I I'm the fundamental analyst, but I do also rely on the charts So I have a I use both technical and fundamental analyzing. All right So, let's let's let's get this let's let's be careful during this season. All right All right, I just want to say thank you everybody for checking out my channel You welcome to hey, I guess I should change it to Russell's Russell's rant because I just ranted today But you know what I'm excited there is money to be made Did you know that you can make money even though the market is going down? Even though there's a sell-off you can make money it on a sell-off or you can make money with the market going up or going sideways And my options people know what I'm talking about. Okay. All right, make sure you leverage it though Make sure you have your risk risk management in place if you've gone long on some call options Make sure you got some puts to cover you. All right. Let's get a cover calls. Hey, babe. All right So anyway, everybody enjoy your week. Have a wonderful week with the market I'll talk to you next Monday and have a great day. All right. Talk to you later. Bye