 What's up, everybody? Ricky Caruth here. Okay. So here's the number I want you to think about right now. 26,703. Now, why am I telling you to think about that number? Is that how much money I make per day? Is that where I think the Dow Jones is going to end up at the end of the year? Or am I just telling you to think of a weird number for no reason at all? Actually, none of those are correct. 26,703 is actually where the Dow was on March 3rd, 2020. It went up 1,293 points that day. And it just happened to be the day that I sold half of my positions in the stock market. That's right. I sold half of my entire stock portfolio on March 3rd. And it wasn't too long after that before the Dow hit into the 18,000 range. Now, just to give you a little bit of history, I took an interest in stocks back in 2017. That was the first year I made a million dollars as a real estate agent. And it was the first time I really had some extra cash to invest. Up to that point, I had just invested into real estate. And up to the point that I sold half of my positions, I had invested 900,000 exactly. And those positions were worth over 1.2 million. So I was hitting somewhere around 10 to 15% return a year. And then miraculously, I sold half my positions on March 3rd, just before everything went crazy. And they even sold Apple about two weeks before that at $319 per share. I sold 350 shares that day. So at this point, you might want to ask me, hey Ricky, what tipped you off about the market sell-off that made you sell half of your stock portfolio at the beginning of March? Secondly, you might ask me what I did with all that money. And thirdly, Ricky, did you reinvest in the stock market after it went down? So what I'm going to do is I'm going to make another video to answer those specific three questions. What tipped me off? What went through my head that made me sell half of my stocks? What did I do with the money and have I bought back in? So if you're new to my channel, right now might be a great time to smash that subscribe button and be on the lookout for that video coming soon. For now, I want to get into the stock market moving forward in 2020. Before I get into that, I have a couple of things. One, I started a second YouTube channel strictly for real estate coaching. So if you're a real estate agent, I'm going to put a link in the description. Go over there, subscribe, smash that bell. I've already posted several videos there and more to come. And I'd also appreciate it if you would do a little something with the like button on this video and to tell you exactly what I want you to do with that like button. I'm going to bring my good friend Graham Steffen in. What's up you guys? It's Graham here. And we'll start this off with the current market update as soon as you shatter that like button. I don't recommend actually breaking anything, but you do want to just punch it lightly enough until it turns blue. Okay, before we get into where the market's heading, let's talk about where the market has been. Okay, we started out the year somewhere on the Dow at about 28,800. Okay, it got almost up to 30,000. And then it dropped 11,000 points down to about 18,500. And right now, currently we're about 24,000 give or take. So the market has hit the bottom so far of around 18,500 and we're up about 30% from that bottom. Now the big question on everybody's mind is, is why are we up 30% from the recent bottom? What is going on in the news? What is going on with companies? What is happening that's causing the start market to literally skyrocket? So we have record setting unemployment. We have GDP shrinking. We have nearly four million homeowners that are no longer paying their mortgages. Oil prices hit negative. Consumers spending plunged 7.5% in March. Google. Google is cutting their marketing budgets. Jeff Bezos tells shareholders to take a seat and the Fed's balance sheet is hitting a new record of 6.7 trillion. And companies are acquiring more debt than we've ever seen in our lifetime. Even the Oracle of Omaha, Warren Buffett is taking it easy right now. He is hoarding cash. He sold all of his stakes he had in all the airlines and the cash he has on hand has reached over $130 billion. He's put a significantly low amount of money to work than he normally puts to work and in his words he just doesn't see anything attractive out there in terms of valuations. Now there is some positive news out there as well and that's why the start market has went up. I don't know if this news should have pushed the market that much but we have had some developments in terms of medicine against the virus and on top of that I think a lot of people were sitting on a lot of cash waiting on a moment to shove it all into the market and when they saw the market go down 11,000 points they said here's our chance. So as they push that cash into the market it's going to naturally make the market increase. What I think is so crazy right now is that the economy isn't even open back up yet. The stock market has rose over 30% without the economy even opening up yet. Now at this point there's several states that have partially opened up but my point is is that we don't even know what the damage is going to be on the economy from this and Warren Buffett even said it himself. There's a lot of uncertainty out there. We don't know how this is going to shake out. Now one thing that I love that he said and just listening to him talk makes you relax a little bit and realize that things are going to be okay but he said quote never bet against America. Short term things can get a little rocky but long term we're going to be just fine. I think you also may have a problem with FOMO out there people fearing that they might miss out and so they're just jumping in oh the stock market went up 5% I got to get in now this might be my last chance but I'm in a situation where I'm sitting back looking at the valuations and the upcoming earnings reports for the second quarter and I'm thinking that the stock market has the very best case scenario priced in and I think that's just unrealistic. I don't think there's any way that it can just go right back to normal. Unemployment's always been a really big data point when you're looking at a possible recession or current recession and it really looks like we're going to be over 10% unemployment for an extremely long time and you got to think back in the 2008 crash unemployment was only over 10% for just a few months just a few months we're looking at a lot longer unemployment rate over 10% right now. So before we go any further I want you to know that I'm extremely bullish on the market in general especially long term this is not a negative video or a doom and gloom video but I do think we're going to have a rough ride for the rest of the year and maybe for the next couple of years. Now let's go back to the 2008 to 2009 financial crisis you'll see that as time went on the market dipped and then we had a little false rally and it makes you feel good it makes you feel like everything's great we're getting back to normal and then all of a sudden boom there's another big drop and then it starts to gradually come back up a little bit it rises it rises it rises makes you feel all warm and fuzzy and then bam another big drop then it kind of starts to come back a little bit and then boom a huge drop and then there were a couple more rallies and drops before it eventually hit the bottom so that could potentially be what we're in the middle of right now not saying that it is just saying that it could potentially be and when you look at the market rising 30% and then on the other hand you look at companies that aren't even reopened yet and we don't even know what those earning reports are going to be for the second quarter that raises a lot of suspicion let's go back to the great depression okay 1929 you see the same exact thing the market went down for a while there was a nice little rally and then boom crash nice little rally boom so it's not uncommon for the market to behave like this in a market cycle and you got to realize too we've been on the longest bull run in history something was going to bring the market down it wasn't the economy this time the economy was doing great but there was going to be something and coronavirus just happened to be that something that took it out so again i'm not predicting it i just want to give you the facts and the facts are that the stock market is not lining up with the future earnings of companies right now and i think once the economy opens up and we begin to see how that business comes back and how much of that business comes back and what those earning reports are going to be for a second quarter third quarter and even fourth quarter is going to tell a tremendous story about the rebound of the economy i think we're going to be in for a rude awakening for some of these valuations i'm seeing out there right now so the truth is going to come out when we start seeing those second quarter earnings reports and i gotta be honest with you guys i am super excited let me a comment let me know what you think about the stock market moving forward and be on the lookout for my next video let's go break the leaves from the money