Professional Development: Nasdaq & Tech Stocks: A Potential Crash on the Horizon? - podcast episode cover

Professional Development: Nasdaq & Tech Stocks: A Potential Crash on the Horizon?

Jul 29, 202313 min
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Episode description

In this clip, we explore the looming question - are the Nasdaq and tech stocks setting up for a potential crash? The tech sector, a dominant force in the market, has been riding high, but some indicators suggest we could be on the precipice of a significant downturn. 


We dive into the current market conditions, economic indicators, and investor sentiment, unraveling the complex web of factors that could potentially lead to a market correction. From overvaluation concerns to the impact of inflation, we tackle it all.


Join us as we provide insight and analysis on this important topic. Whether you're a seasoned investor or a beginner, this conversation is designed to help you understand the risk landscape and make more informed decisions about your investment strategy.


#Nasdaq #TechStocks #MarketCrash

Link to full episode: https://www.youtube.com/live/G-hGZb8s-6w?feature=share (https://www.youtube.com/live/G-hGZb8s-6w?feature=share)


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Transcript

Speaker 1

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Speaker 2

Sponsored by the United States Department of Homeland Security.

Speaker 3

Is the NASDAK setting up for a crash? Or will the AI and will and will the AI bubble be the cause of it? The NASDAK has been running up tremendously over the last six months went from that is low. It was like eleven thousand, hovering a little bit of eleven thousand, that was over fourteen now it was over fourteen thousand, So you know that's that's a pretty big jump in a six month timeframe. So a lot of that has been the cause of this AI frenzy that

we're in. Everybody talks about chat GBT all the time, and you know, everybody's coming out with a competitor chat GBT. You we'll talk about that today as well, Apple and Google and Meta and Microsoft, and they invested in chat GBT as well over the eyes. But you know, what comes up must come down, So yeah, what's the deal?

Speaker 4

A lot of people were asking me this quest over the weekend, and sixteen thousand is usually a great support area for excuse me, resistance area for Nasdaq. I don't think we'll have a crash. I think what people are worried about is that the market has went up so fast. Is it going to pull back? My number one piece of advice for every one long term is through every occasion, every season, every storm, every news headline, please look to

hold for five or ten years. Will we have a pullback at some point, if it's not sixteen thousand, maybe seventeen thousand.

Speaker 2

We'll have a little bit of a pullback.

Speaker 4

For my traders, I would definitely map out your technicals. I will look to see if we break past sixteen thousand and what news comes out as a result.

Speaker 5

So, like Tessa reported, we'll talk about that.

Speaker 4

If more companies report better earnings, we'll push past at sixteen thousand seventeen thousand level with no problem. But if we aren't seeing strong earnings over the next couple of weeks, it'll give you a sign that will begin.

Speaker 5

To slow down.

Speaker 4

So for my long term investors, don't worry about it, because everyone who's always talking about a crash, they are betting on the wrong side of history and the market. But for my short term investors or swing traders, I will map up by levels and have some protection in place. And now it's definitely not the time about a nastac Like if you haven't got in already, it's too like you're going to have.

Speaker 5

To wait for a a little bit of a pullback.

Speaker 2

Yeah, I mean, if we look where it was.

Speaker 6

Maybe a year and a half ago, we're talking down thirty percent, and so I mean just from a standpoint of looking at the technicals, that the chances of it pulling back another twenty and so.

Speaker 2

But you have to look at what, like you said, what is leading it?

Speaker 6

Is it the Magnificence seven leading or is it the entire space? And that's a tough call, right, because if we're looking at it, Yeah, the Magnificence seven are leaded. Yes, AI is leading. It is AI slowing down? No, will there be companies that are going to be created and acquire during this time?

Speaker 2

Yes? Do those companies cost money?

Speaker 6

Absolutely, and so that's going to dig into to the margins of some of these companies that are looking to acquire. But I don't see the space having another We wouldn't call it a correction, right because that means they'd have to go down twenty percent.

Speaker 2

But I do it's gonna slow down, right, it has to slow down, And that's good. That's a good thing. Right.

Speaker 6

Well, what we saw on Thursday and Friday, I was getting text messages and dms like, oh my god, is it happening again? And I'm like, do you realize that you've you've gone up over like twelve percent in a month, Like, do you realize that right, so like for an index, not just a company, for the entire index. And so when it pulls back two percent in a day, I want you to be prepared for that. I want you to like really get to see like what that feels like.

And so it's important to have these moments. It's it's a resetting of a sense when it's like, all right, well, let's take a pause. We got a couple of indicators that are going to be coming this week. We know that the FED. This episode is brought to you by P and C Bank. A lot of people think podcasts about work are boring, and sure, they definitely can be, but understanding a professional's routine shows us how they achieve their success little by little, day after day.

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Speaker 2

Erness what's up.

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Speaker 1

An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from El Salvador accused of murdering a excess 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 fined 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 6

Sponsored by the United States Department of Homeland Security has got to raise potentially all sides of pointing to that. We know that a lot of the big companies are going to be reporting this week. Microsoft and Google included in that, and so let's see where we're at. Before you know, we continue to ascend or if we go

sideways for a little bit. It's been an incredible year for the NASTAC and so we got to just take these things and stride, like, really assess what's happened, not look at the short term, but look at what has happened over the past six months, ago, over the past two years, three years, and really assess where we're at right now.

Speaker 2

We're in a good spot.

Speaker 4

And a quick lesson to please write this down. If the market does not halt, there's really nothing to worry about. Like if things are getting really bad when you hop on CNBC or Bloomberg and they halt to trade it because the market is falling down so much. So if we fall down I think three percent, and they like work the circuit breaker to make the market stop or pause for a little bit, that's when we're you're you know, we're getting into a territory where we could end up

having the correction. But these are just normal waves and pullbacks. And uh, tip number two, you have to look for amazing asymmetric risk. So when you have the risk to reward ratio in your favor, we're almost at the top of the market. It's just a lot of people at

this point taking profit. So I don't see a crash coming. Well, we see a pullback of five to maybe ten percent, sure, but like Troy said, I mean we went up twelve percent in a month, and since last year, the NASAQ has been on one of the most amazing runs in the last fifteen years.

Speaker 5

I don't think there's anything to worry about right now.

Speaker 6

Yeah, thirty thirty five percent year to day and that's.

Speaker 5

That, And that was a couple eleven days in a row.

Speaker 6

Yeah, right, A pullback of a one percent or three quarters of a percent or even two percent in a day. Yeah, in your portfolio, if you're looking at your account on a daily basis, it doesn't feel great, but it's part of it.

Speaker 2

Right, It comes with the territory.

Speaker 6

Right when we were climbing up, you know, twenty percent over the past three months, it was an amazing This comes with it. So you got to you gotta, you gotta take the ebbs and flows of investing.

Speaker 4

Yeah, we also have to look at that long term horizon and never the short term. Like we had something happen today that most people would if it would have happened to them, they would have wanted to quit. But over the aggregate of a year, most of the things that bother us won't even matter.

Speaker 5

So keep keep your focus on what is happening long term.

Speaker 4

And also too, I had told speaking the stock club call, I have put a stat in our chat and I want to read this off in terms of Vanguard and Blackrock. So combined, Vanguard and Blackrock has sixteen point sixty nine trillion under management. That is the equivalent of seventy one percent of the United States GDP. Vanguard and Blackrock are both heavily invested into the Nasdaq and majority of the

properties in NASDAC. If you think they are going to fall while they are in it, we have another thing coming.

Speaker 5

And the biggest investor in Vanguard is Blackrock and vice versa.

Speaker 4

They have vested interest in these companies going up for the lunch period of time.

Speaker 2

That's all. I always say.

Speaker 4

The market is rigged, but it is rigged to stay up for a long period of time.

Speaker 5

Don't bet against the Fed, Vanguard.

Speaker 2

Or black Rock. Don't you do it.

Speaker 5

Don't do it, please, don't do it.

Speaker 2

Please don't do it.

Speaker 3

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Speaker 1

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 fined 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 2

Sponsored by the United States Department of Homeland Security,

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