⚠️ TRILLIONS LOST? The Fed Just Crashed Growth Stocks

⚠️ The Federal Reserve and Jerome Powell are signalling that members are concerned about #inflation and are accelerating the taper of quantitative easing. This, along with news of the pandemic has led to a serious #correction in the tech stocks and growth stocks that Cathie Wood invests in like Tesla stock (TSLA) and Palantir (PLTR stock) over the last 4-6 weeks. Here's what I'm doing as the stock market crashes: increasing my cash position, my "cash-like" positions, investing in alternative assets like #cryptocurrency, and watching a few key indicators to stay informed.

🙏 You can also invest in the channel that invests in you right here on YouTube!

👇 RESOURCES FOR THIS EPISODE 👇

🕑 TIMESTAMPS FOR THIS EPISODE 🕑
00:00 Introduction
01:15 Federal Reserve Changes
03:57 Diversifying Your Stocks
07:50 Investing in Alternate Assets
11:20 Stocks I'm Watching Now

📃 CHECK OUT MY CURATED PLAYLISTS 📃

💸 Deep Dives Into My Favorite Growth Stocks:

🤓 My Free Online ARK Fund Calculator:

ARK Invest's Thematic Funds:

I am not a financial advisor or affiliated with ARK Invest in any way.

Thanks for watching!

[obijuan]

The FED kept the economy from crashing last year and that pumped growth stocks to new highs along with low interest rates pumping the economy. The side effect of all of this printed money and pandemic supply shortages is inflation and with inflation the FED will have no choice but to raise rates, or inflation could really cripple the economy that’s basic economics. Growth stocks will pay a price for it, but that’s a good thing in the long run for smart investors as growth stocks get cheaper. Never panic, adapt and overcome.

[ezerratchaga]

Tesla is a different beast. It's a growth stock that doesn't require raising capital so the argument that raising interest rates would affect growth stocks don't affect Tesla. They are literally their own money printing machine. Once investors realise this, they will pour their money back in as a safe haven.

[AC-getr]

I didn’t lose anything at all. Why? Because I didn’t sell.
Patience is THE key to successful long term investing

[mihailomaksa]

I remember the good old days when the fundamentals actually did matter and not everything was based on what FED said on a given day…

[cubfan]

The problem with Masterworks, is the limited inventory. I only saw two painting that were remotely interesting to me, the Picasso and the Warhol and they would not even be in my top 20 by either artist. I get your point of investing in something that is not correlated with the stock market, but if Masterworks is going to be successful they are going to need thousands of paintings and sculptures. The beauty of NFT's is there are already millions and something for everyone. I would bet there are already more money and more relevant art works being created by today's Picassos with NFTs. I am thinking videos on NFT's, Metaverse land sales and even AR VR glasses and the components that go into the glasses would be pretty interesting. Watched NIO day and guess what they are selling, AR glasses, pretty sick and the fast approaching future.

[MicroCapMindset]

How is Crypto not tied to, or associated with the performance of the stock market? Ultimately, both are influenced by macro factors... ie Omicron, Fed action, Interest rates, China, FUD

[e]

STAY AFRAID STAY POOR STAY DEPENDENT STAY IN OUR CONTROL.

[PaulChambersCo]

“If seeing me lose a ton of money each week isn’t your thing…” FN hilarious! 😂 I love your dry humor. 👊🏼

[MusicMangaMania]

You are wrong about growth stocks falling substantially more. A lot of fear related to interest rates is already priced in. The fall of these stocks was also caused by retail panic (a lot of them were overvalued to begin with though) and tax-loss harvesting. You are also wrong when you say that the crypto market is not correlated to equity markets. The correlation (to the Nasdaq and mid-cap growth stocks especially) is continuously increasing as the crypto market is becoming more mature. I would compare the crypto market to the Nasdaq in its early days.

[mathieugamache]

The problem with masterworks is the high 1.5% management fee and the 20% fee
they take when they sell the painting. You also can’t control when they sell the painting which means they will trigger a tax event for you at anytime.

[kyaghleah]

Thanks! What do you make of the strong bounce on Friday afternoon and the fact that mainstream CNBC investors and Motley Fool recommend buying ROKU and TDOC etc?

[loerwyl]

If a company has cash on hand with little to no debt, should inflation be of little concern? It thought Tesla was a good company due to this similar model? Also, wouldn't small growth companies in the same scenario just issue more shares (dilute) to raise cash?

[thewiz]

I personally am loading up on small cap growth, mid cap growth some. The more they fall, the more O buy. They are called growth for a reason, most of them are the pioneers of the past.

[manjil]

Alex, your content and editing keeps getting better and better....I love the way you use snippets as also progress indicator of the current topic.

[michaelhansen]

Great fan of your content. But are you now suddenly turning your back to growth stocks. Everyone has known for a Long time that interest rates would rise but anyway you have recommended buying the dip in them. Now you are suddenly talking against buying growthstocks Even though nothing really have changed ??

[chrisrock]

<“Don't fight the trend"> is an old saying, and there are other variants of the phrase like "never catch a falling knife." The bottom line is that traders should not try to anticipate trend reversals, or even worse, try to improve their average while losing. It really doesn't matter whether one is trading soy futures, silver, stocks or cryptocurrencies. Markets generally move in cycles, which can last from a few days to a couple of years. In B -TC’s case, it's hard for anyone to justify a bullish case by looking at the chart. It is much more complicated than some would have you believe but from Carter Baker approach, bear market aren’t worth losing from if you use the ongoing new bie/investor programs. A portfolio I got into the strategy with 1.3B TC was quickly increased to 6.6B tc.>

[trent_carter]

Excellent video; some of your analysis is almost Kathy Wood quality. I am hoping that Tesla acts somewhat as an ETF (Energy, Transportation, Automotive, AI SAAS, insurance)

[dwaynelasater]

Hi, enjoy your show. I was wondering what you think of UPST?

[absw]

Alex, what is your view on Buffet's idea of diversification? He says one will only have so many great opportunities in life to buy amazing companies, and seems to be in favor of having a more concentrated portfolio (for active investors at least, excluding passive investors). One thing he said that really stuck with me, is to think of your investment life as having a card with a limited number of punches (each "punch" being an investment decision). It makes you think harder about each stock purchase, so that you only buy the best ones, leaving what you think are less-than-excellent companies alone.

This is the reason why I'm very careful about many of these innovative companies in the same field. I know genomics will be huge, for example, but the same was said about many now-bankrupt tech companies before the dot com bust. Only a handful are likely to make it.

[showpro]

Alex; any room for physical precious metals in your portfolio? Thanks in advance.