Transcript
Hello, everyone, welcome to Friday, the S&P 500 was up again for the sixth day in a row, but just barely .06%. But I want to do something a little different today. And I hope that this is really something that helps. I started this series on the 22nd of March. And I was really trying to bring positive information. For whatever reason, the news tends to be negative in general, I think it sells better. And I just want it to be a source of some of the things that were actually happening out there that were positive. So what I’ve done is I’ve compiled a list of why the market could go high I talked about yesterday, the market could skyrocket, or it could fall apart. And we’re in this really weird situation. But I really wanted to find out why it could skyrocket. Just say habit, it’s not that I believe it’s going to, I believe and understanding all of the positives and all of the negatives, that makes me a better investor.
But I’m trying to bring you the positives, because I honestly don’t feel it’s out there. And so first of all, let’s just talk about kind of the technical indicators. The VIX, which is a measure of volatility is coming down, that historically is positive for stocks, the 200-day moving average is up the 50-day moving average is above that and up that 20-day moving average is up and above the 50, the 10-day moving average is up and above the 20. And more importantly, the price is above the 10-day moving average, all historically very good for stocks. All of my weekly indicators are up for the stock market, that’s not that common. The leading companies right now have good earnings. That’s not always the case in some of these big markets. And important the analysts have said that the S&P 500 projected this, that will be even higher in 2021, than they were in 2019, which was a record. And then on top of that, in 2022, they’re expecting higher than 2021.
On the virus side, there are hundreds of potential vaccines being examined right now four of which are either in or about to be in phase three trials. Virus cases are dropping here in the US market likes that the death rate will hopefully get better as they get better with therapies, we’ve seen some progress with Remdesivir. And Dexamethasone, the best minds in the world are working on this. And the reopening stocks are starting to do really well right now. And so that’s a huge sign to me that they’re seeing things that are happening. And maybe we see some medical breakthroughs, even here in the short term. Because of all this concentration on medical science, interest rates and near zero.
New stimulus packages coming I believe more stimulus packages will come. And the Federal Reserve has said they will do anything to support the economy and the markets that they can possibly do. Innovation is truly happening, as we’ve seen in our mega trends video. And we’re moving into a faster pace into the digital world. And companies will make more profits off of those efficiencies from that digital movement. And trillions of dollars are still sitting on the sidelines and money markets that could come in trillions of dollars are still sitting in hedge funds outside the stock market that could come in. And you know what, it’s so much easier to buy stocks now all of these new technology platforms, and maybe really importantly, it is almost free. You can go to most these platforms and buy stocks for nothing that’s new. And so that’ll help that brings in more money.
And then lastly, humans are really good at figuring things out. And so I think that that’s a possibility that we get this down and get this going. And so this is a little bit longer than normal. But if you ever get scared about what’s happening, and things are going to come flag this video and go look at it again, send it to some of your friends that are really scared also, and hopefully that would help. So thank you very much and I hope you have a great weekend and I look forward to talking to you on Monday.