Have We Reached the Bottom of the Stock Market Pullback? - podcast episode cover

Have We Reached the Bottom of the Stock Market Pullback?

Mar 16, 202514 min
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Episode description

The Earn Your Leisure Podcast. Financial Advisor Rashad Bilal and Educator Troy Millings will be your host. Earn Your Leisure will be giving you behind the scenes financial views into the entertainment and sports industries as well as highlighting back stories of entrepreneurs.



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Transcript

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Speaker 2

I guess one of those the questions that were getting in kind of going over is people want to know where the bottom is right, So like, if we look at the EMA's, if we look at the trends, is there a bottom in sight that we near it? I guess in like twenty twenty it was the same type of question when we looked at COVID and it was like, wait the market hit thirteen thousand. I'm like, wait, this thing could fall. Where could it reach? So, like, are we near it? Based on like what you're seeing? I

guess some of the things I'm looking at. Have we hit a trend line near the bottom? No?

Speaker 4

Five forty five thirty could be the bottom? Who want spy fifty four hundred?

Speaker 3

So tom Lee? Tom Lee predicts he said that this is the best time in bot stocks now and the town. You know, he's predicting a massive rally in a couple of months.

Speaker 1

What do you think?

Speaker 4

I agree all the money's gonna flow in, Like, listen, while okay, something I want everyone to take a look at. When the market is in triage, notice who isn't speaking Buffett to the Jones, drunken Miller. All the greats are being quiet and executing. All the grades in private equity are executing. They're buying right. So if we get to like we are really at a point where if the market is off fifteen to thirty percent in some markets,

now is the time to buy. We would have a nice rally, probably come into app right after invest Festa the same way it did last year. So if I'm buying now, this should be the strategy. Buy in February and hold through October November. You're going to get the best return term of the day asymmetric risk to reward. So if I buy now, I have a higher probability chance of getting a fifteen percent or twenty percent return now then opposed it if I did it two months ago.

The market has come down to a level where.

Speaker 1

I would want to invest.

Speaker 4

So if I'm getting in at on a spy five point fifty or five forty five, I can see probably about August or early September, US being back at six hundred. Now it's definitely a time to buy if you're looking a hold for the long term long term investing only.

Speaker 3

There you have it, Okay, is it time to ditch the chase of big gains and bunker down to safe value stocks only?

Speaker 4

The real value is buying great companies that are at a great price. I know a lot of times we talk about sector rotation, and this argument is coming up again, tech versus value. The real value is to buy at the right price. Are there some value stocks that I like?

Speaker 1

For sure?

Speaker 4

Waste Management being one, tint a pillar being another home, deep wet being another great. But if you think that you're going to be able to get away from technology stocks when it's the only thing really dry well, not only, but one of the main things driving GDP in America, deat in healthcare, you're poorly mistaken value is to buy at a deep discount and then concentrate.

Speaker 1

Warren Buffet's qute going to another quote.

Speaker 4

If you're a professional investor, I will focus on hyper concentration. I want to remind you you only need four or five good stocks, and technically if you need if you have bitcoin, Like how some of your big bitcoin maxes, you only need three good stocks actually have bitcoin. So I don't think it's time to rotate into value. But if you buy great companies at a deep value, you'll get a better return that way.

Speaker 1

What value in Dexas?

Speaker 2

Yeah, I was gonna say, like gross stocks value stocks. I know the percentage for depreciation is something that people try to figure out and we'll create their own strategy.

Speaker 1

Is it do you keep it the same for both? Right?

Speaker 2

So I know I think you you had like a twenty five percent depreciation. I always like to be between fifteen to twenty y'ah like twenty five is there where is there a difference between value and growth or is it does it stay steady for both?

Speaker 4

I think every sector is different, but a good exercise for everyone is go look at from the high of the market over a fifteen year period, how far it is a fall, because every healthcare is different from let's say energy. Energy is different from utility companies.

Speaker 1

But for tech, I usually earners. What's up?

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Speaker 5

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Speaker 4

Be protected sponsored by the United States Department of Homeldsecurity. Like if I get a twenty five percent drop in the sector or emulated if it's a high quality company, if you're looking at value companies, maybe ten to eighteen percent somewhere, I would like to get in. But if you listen to the show like I'm literally giving you guys the prices and companies of where to get in, and if you join stock Club, we get all sectores

across the board. But yeah, twenty five percent in tech is why I usually like to get in.

Speaker 1

For sure.

Speaker 2

I know somebody's going to like I was looking at Apple's chart. I was looking at it on Friday as well. It's like, will this thing drop twenty percent?

Speaker 1

It could?

Speaker 2

It could, But how many times I think looking at that from a historical perspective is key. How many times in this history has a drop twenty five percent?

Speaker 1

Right?

Speaker 4

And then so the homework all you're gonna chage. You be to your claw and the researchers in his art now.

Speaker 1

And it will tell you.

Speaker 2

So when you see a rare moment like that happen, then you know this is this is probably a prime time to start executing. So if you're looking at where the bottom is with how many times does the drop of twenty percent, we're in video. We watched it drop twenty percent twice this year? Yeah, for sure, right and

even lower. So taking a look from a historical perspective, how that stock has performed, especially some of these these megacap and these strong companies, look at their historical perspective, so you can start getting the inkling of all right, this might be a good point of entry.

Speaker 3

Okay, the nastag is flirting with twenty four hour trading. Will this be a game changer or will this be another thing to give Wall Street more power?

Speaker 4

It's a mistake for most people. The prime times are going to remain as prime times to invest. Open America, an open American Clothes, London open. I know the illusion of having more access, because the futures market has always been with twenty three hours, there isn't as much liquidity during certain times of day, so you're not going to get a great trade at eight pm on a Tuesday night.

I know they're trying to sell the illusion of inclusivity, but in a world that has been created around exclusivity, please don't offer this trap and be very careful. Your trading plan as a results should not change. I commend them for trying to keep up with innovation. We have to give Robinhood a lot of credit for making these innovations come through faster than ever because prior to them, Nasdaq or any other exchange had no reason to do this.

Speaker 1

But your plan should not change at all.

Speaker 4

Like it Also, if you see spikes in like the noon session or a seven pm trade, it's probably going to be smaller firms who can't compete with Piper Goldman, Citadel State Street that is finding arbitrage in the market. And you don't want to go against those whales that are in the market, So be very careful, but your trading plan should not change at all.

Speaker 1

Yeah, I think this is it's interesting, right.

Speaker 2

This speaks to the retail investor, right because everything that you just named was institutional, so it speaks to the retail investor. And again it speaks to innovation and how are the new retail investors doing this If they're trading grypto they've already been in.

Speaker 1

Twenty four hours for sure.

Speaker 2

A lot of the new retail investors have used platforms like robin Hood because of the use case, and they say it's a lot easier and they use gamification allegedly to help make those people in. And so that's the interesting to standpoint of it. But one of the things when we talk about trading is value, right, So if you want to know like when it should be, look at the value and look at the times that volume

is increasing versus the times, that volume is decreasing. And so if you have it for twenty four hours but nobody's trading, and you're doing some of these deridor of trades like where the futures.

Speaker 1

I know options doesn't do twenty four hours.

Speaker 2

Full Yo, it could get real scary, really quick, and that only helps.

Speaker 1

The brokerage, right, because this is one of those things.

Speaker 2

I know we're not using gambling as a as a focus, but like, yo, the house is going to win in that scenario when there's no valua and you're trying to figure out how to get a trade in. If you're not season at this, I don't recommend it. It's just like I didn't recommend same day option trading, Like, yeah, can you make money doing it?

Speaker 1

Will a lot of people lose money? Yeah?

Speaker 5

An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from El Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J. Trump's leadership. I'm Christy Noman the United States

Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fine nearly one thousand dollars a day, imprisoned, and deported. You will never return. But if you register using our CBP home app and leave now, you could be allowed to return legally.

Do what's right, leave now. Under President Trump, America's laws, border and families will be protected.

Speaker 1

Sponsored by the United States Department of Homeland Security,

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