About this Video

• Video Title: 🚨 URGENT: Investors Panic, Stocks Crashing [Do This ASAP]
• Channel: Tom Nash
• Speakers: Tom Nash
• Duration: 00:19:18

Introduction

This video addresses investor concerns amidst a stock market downturn. Tom Nash, the speaker, emphasizes the importance of preparation rather than prediction in navigating market corrections. He shares a stock list he created in 2021, explaining the rationale behind his selections and strategies for handling market volatility.

Key Takeaways

• Market Cycles are Predictable, but Timing is Not: While market corrections are inevitable, predicting the exact timing is impossible. The focus should be on preparing for corrections rather than trying to time the market.
• Utilize Indicators Wisely: The speaker uses the S&P 500's price-to-earnings ratio as a warning signal, highlighting its limitations but emphasizing its value in signaling potential corrections.
• Profit Protection: The video advocates for trimming winning positions (selling a portion of high-performing stocks) as a risk management strategy to safeguard profits during market downturns.
• Long-Term Investing Strategy: The speaker promotes a long-term investment approach, emphasizing the historical resilience of the stock market and the importance of weathering short-term volatility.
• Focus on Business Fundamentals: The speaker prioritizes investing in strong businesses, emphasizing that short-term stock price fluctuations should not overshadow long-term growth potential.

Here are the answers to your questions 1 through 4, based solely on the provided transcript:

1. The speaker's preparation for a market correction in 2021 was triggered when the PE ratio of the S&P 500 was almost 30. He notes that statistically, when the S&P 500 goes above a PE ratio of 25, the likelihood of a correction increases exponentially.

2. The speaker made a video about Palantir when it was at approximately $115 per share. He advised trimming 10%, 20%, or 30% of holdings, suggesting it might pull back 50%.

3. The speaker's criteria for selecting stocks in his 2021 list included: early-stage IPO price, top three CEOs, secular trends (data analytics mentioned explicitly), monopolistic margins, and sticky business models (making it hard for customers to leave). For Tesla, he considered it an energy and EV company, and projected its price based on the top three CEOs and its future potential.

4. Following the 1987 Black Monday crash: the market was up 5% within 30 days, 15% after 90 days, and 23% a year later. The 2020 COVID crash saw markets recover within six months, reaching 50% above the 2020 lows.