Smart Money is Crashing Stocks | December 2021

The stock market is crashing with stocks down more than 6% in just the last two weeks, but who is selling? What are the forces causing stocks to crash in December? I’ll show you why stock prices are falling, what to watch for in stock market news this week and how to invest. How am I investing? I’m doubling down on my favorite long-term stocks, the ones I buy no matter what the market does. Check out the top five stocks in my portfolio in this free report! https://mystockmarketbasics.com/motleyfool The stock market reacted exactly how I said it would in last week’s livestream. After a short relief rally on Monday, stock prices continued to fall most of the week. The Nasdaq ended the week down another 2% and is now down nearly 7% from its peak. What caused stocks to fall and how much further could they go? Think about it this way, someone drinking espressos for a year is going to have a tough time when they switch to coffee. It’s the same thing with investors right now. Switching from a runaway market of 30% annual gains and easy money from the Fed to a more normal market of 10% gains and Fed tapering isn’t easy. Hedge fund managers sold out of stocks at their fastest pace since March of last year and the rest of the market is following. 🤑 Get The Weekly Bow-Tie - my FREE weekly email newsletter sharing market updates, trends and the most important news! Market Updates for the Smart Investor! https://mystockmarketbasics.com/dailybowtie My Investing Recommendations 📈 Check out the stock simulator and Get a FREE share of stock worth up to $1000 when you open a Webull investing account with a $100 deposit! 🤑 https://mystockmarketbasics.com/webull 📊 Download this Portfolio Tracker and Investing Spreadsheet! [Community Discount Code] https://mystockmarketbasics.com/spreadsheetdiscount ₿ Get up to $250 in free bitcoin when you open an account on BlockFi and earn interest up to 7.5% https://mystockmarketbasics.com/blockfi The fact that lockdown stocks like Zoom and Docusign plunged with the rest of the market, tells me it's a growth-focused selloff rather than fears around the omicron variant. That could set us up for even more selling if omicron does lead to a surge in January but for now, it’s not having much of an effect on the market. The big news over the weekend was the plunge in cryptocurrencies, an indication that investor sentiment is likely to remain negative. All 11 stock sectors fell last week with the cyclicals; energy, financials, industrials and materials taking the brunt of the selling. This seems to confirm the selling is fear of slower growth than expected on a faster increase in interest rates. It’s interesting that financials sold off as badly though since higher rates would boost profits for banks, though slower growth would hinder loan demand. The negative side of the argument is winning out and generally fearful investor sentiment is driving shares lower but financials could be coming into a buying opportunity quickly. The trend overall is likely to be lower in the coming week though investors can find some shelter in the traditional safety sectors; Utilities, Consumer Staples and even Healthcare is providing some safety. Omicron would have to bring a massive surge of infections to drive states to renew lockdowns, which is unlikely, so economic growth should remain fairly strong through the next quarter and I’m not expecting more than a correction (10% to 15%) in stocks. Along with safety sectors, big tech companies like Apple, HP and Intel have held up surprisingly well on lower valuations compared to more expensive names in the sector. Must Watch Videos! 😲 Don't miss the most popular videos on the channel! 🤑 Top 7 Monthly Dividend Stocks for the Highest Returns! https://youtu.be/w6HQuJOCwjI 💰 12 Dividend Stocks for Cash EVERY SINGLE WEEK! https://youtu.be/q-ehdLBuEqU 5 Stocks to Buy that are Too Cheap to Pass Up! https://youtu.be/LyQMChlrWlQ Help Support the Bow Tie Nation! Show your appreciation for the free information and analysis on Let's Talk Money. Click here to find out how! https://mystockmarketbasics.com/thank-you-joseph-hogue SUBSCRIBE to create the financial future you deserve with videos on beating debt, making more money and making your money work for you. https://peerfinance101.com/FreeMoneyVideos Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps. #stockmarket #stocks #stockmarketnews