Is The Stock Market Going To Tank?


Is the stock market about to tank? You’re
asking at a really critical time. If you understand cycles and what’s about to go
down in the economy. My name is Kris Krohn. I’ve done over a billion dollars
worth of real estate. And today, I want to share with you how that’s going to
correlate to the stock market. More importantly, what’s about to happen. You know, when people ask this question,
when the market has been going up and up and up, maybe there was a couple days of
Corrections and then it bounces and it goes up and up and up. And it’s weird. The
more the market goes up, most people will continue gaining
confidence. But some people start becoming super nervous because they know
what comes up must come down. And this is that time when people are saying, “Alright, we are late. Like we had our last big crash now over a decade ago. And
normally, it’s 8 years in the cycle before this happened so like are we
building up to something really bad or are we gonna finally break the trend
after all of these centuries and the markets going to blow through it?” Well, I’m
excited to have that conversation with you today. First of all, I want to be
really clear with all of you. I am NOT an economist and I don’t invest in the
stock market. So, you might want to shut off the video right now if that
undermines whether you consider me an authority figure, I’m not. What I am an
authority in is cycles and real estate investment in particular. I’m going to talk
about real estate for a moment because I want you to see how it how it overlays
with the stock market cycle. Putting it up right here on the big screen, I want
you understand that real estate over time does what? It goes up. But it doesn’t
do it this way. It would be really beautiful if it did. Real estate first of
all moves in a very predictable pattern. What it does is the market goes up, it
peaks and then it goes into a trough and then it does it again. For example, if we
were to look at this period of point right here, we might want to label this
2008. And the big question is when is this going to happen? That’s part of what
you’re asking. Now, why am I talking about real estate? Because I find that real
estate is a lot more easy to understand the stock market. But the stock markets
going to follow it. Watch how these patterns play into each other right now. First of
all, when the market tanked in real estate in 2008, it meant that no one was
building any homes. Almost virtually no one. But why does real estate have to
come back? Because real estate is a function of population. So, people are
going to keep making babies. In America, you know, immigration is still popular. So, we
still have our population expanding in most places around the country. This is
not necessarily true. In Europe, Japan other parts of the world. Because they’re
facing what’s called economic winter when people stop having
enough babies to replace the population. But it’s happening in America which is
American dream is still alive and for the next 50 years, people are going to be
investing in this country. As the market goes up because of population, here’s
what’s going on in this part of the cycle. When it goes down, no one’s
building, no one’s building, no one’s building, no one’s building. But time is
passing. So, guess what? Making babies, making babies, making babies, making
babies. And eventually the market has to come back because there’s this
incredible tension. Sex is what’s driving this economy. With these babies being
made, basically we need homes for these
families, right? And so, essentially the market says, “You know what? We’ve gone
5, 6, 7 years without making any houses. And now, we’re all busting at the
seams and families are living in with each other. And the economy is doing
better and we want to actually spread our wings and live in our own home.” So,
all of a sudden, they start building again and building again. And there’s a
lag between the demand of construction and understanding population growth.
Here’s what ends up happening. There’s so much pent-up demand that the market
starts going up and then it shoots through and starts producing more real
estate than we actually need. And when you get to a point where this line right
here could best be described as the cost to build. So by the way, if it cost $200,000 to build a home, but they’re now building them for 240,000, there’s a 40,000-dollar gap. And a
developer, a contractor is gonna say, “Oh, my gosh. We can just build a spec house.
Meaning, we’re going to speculate that someone will want to buy this. And we’ll
Make all the money than we do. So, we’re betting on the market going up.”
Confidence goes up. People consumers start seeing that the markets getting
better. And all the sudden, families are buying homes. And right at the peak year
the market is blowing through brand-new ceilings. It’s higher than it ever was
historically in the past. People are excited. But guess what? Guess what has to
happen? We have built more than population demands. And when you build
homes that people can’t live in, there’s this definition of the value of a home. A
home is only worth what? What someone is willing to pay. Which means if no one’s
willing to pay for it, then the value has to what? Has to drop until someone’s
willing to pay. Literally, we built more houses and more supply than there is a
demand. And that creates an inversion, it creates a problem. The market
has to topple. Historically, look at what the stock market is doing. It is
following this segment right here. But it is doing it in some crazy erratic ways
that make it very difficult for people to be able to predict. Here’s what I can
tell you: The stock market generally has a correction every 8 years. During
that 8-year period of time and to put that here. The first 3 years are
a reCAPTCHA from what was lost to get back to even. Then you’ve got a few years
of the market dancing around and holding. And then the last 2 or 3 years
it’s going to spike and it’s going to jump again. And everyone gets excited and
everyone starts throwing money in and then the market corrects again. It just
does it over and over again. Which is why the 30-year average, if you’re going to play
the stock market. If you don’t know how to get in get out, most people will say
that the smartest people on the planet, like the gold winners of that Olympics
can’t predict it. Can’t figure it out. So, who are you and I to think that we can?
The smartest people on the planet can’t figure it out. Then the only way to win
and play at the stock market is to stay long-term. You want to know when the
crash is because you want to pull your money out before it crashes. If that’s
you, then the time to pull it out is now. Reality is, you’re going to ride that crash
and it’s going to suck and then it’s going to come back, it’s going to do its thing. And if
you’re in the market for 30 years and you’re earning 9% on the
S&Ps top 500, then guess what? You’re going to average 9% a year
on your money. And in 30 years, you can make something with that. But if
that’s fun enough for retirement, then you got to pick something smarter.
Ironically, the best time to get in the market is what? It’s right here after it
has bottomed out. And the best time to get out is after you’ve made some money.
That’s if you wanted to try to pay the market. And I don’t recommend, I don’t
think you should. I think today’s conversation is about diversification.
Real estate on the other hand never makes these erratic movements. You have
first of all what’s called summer, fall, winter, spring. And it’s a cycle that
repeats itself and it never goes out order. Real estate will never go from
fall to spring to summer to winter. Like it’s always going to follow the cycle
predictably because it’s a lot more predictable than the stock market.
Based on timing and the fact that we are 2 years overdue from our average. My
friend, right now, that should be every warning bell going off in history
about what’s happening to the market. Well, I can’t predict it. And the
smartest people can’t predict it. That’s a cycle. And you should trust cycles. I
don’t know if the cycle will end up being 12 years instead of 8 for
what the average was. That’s where people really can’t guess. But I can tell you in
real estate, we can guess that actually pretty easily. You see when the market
gets over that rebuild value, this is the cool thing I’m doing. If I were to
simplify my picture again because it’s getting a little bit crazy. What I would
tell you know in the game of real estate is that when the markets at its low, you
should be what? You should be buying all the real estate you possibly can. That was
Phoenix, Vegas buying houses for 80 to 100 grand that were selling for 250 to
300. We killed it. Now, where the markets headed, guess what we’re doing? We’re
buying in markets where the market is still down here and it’s still in its
recovery and we have something to gain. By the time the market crashes again,
we’re going to be just as excited looking for the next place in the market to win.
I hope that was informational for what’s happening in the stock market. Guys,
according to cycles, it’s time to exit that. If you’re trying to diversify
you’re pulling into another market. Or you’re just going to choose to be a long
term stock market knucklehead. It’s not my strategy, it’s not what I like to do.
But listen, everyone gets to kind of pick their own financial strategy and we’ll
figure out who wins when we’re all 50 or 60 years old. Because some of us will be
working and some of us wont. Some of us will have the lifestyle that we want, the
why of the freedom. And some of us are going to be trapped like bars and a zoo
doing things that we don’t want to do because our money. Fell apart, it didn’t
do what we wanted it to. So, if you want to learn more about real estate, not just
the stock market, I wrote this book. It’s free to everyone who wants to get it. I
just ask that you cover the shipping on it. It’s in the link below. So, get a hand.
Get your hand on this. This is the playbook for how I make the most money
when the markets up. How I make the most money when the markets down. And how I
make the most money when the market is undecided. At the end of the day, that’s
what allowed me to achieve my financial freedom in my mid-20s. And today, it’s
about empowering other people with learning how to take financial control
over their own future. Future time right now. Get a copy of this book right here.
Otherwise, make sure you subscribe. Every day, ring that bell. I’ve got a video
coming out every day to help you become the financial genius that really is
inside of you. I believe in you I know you can do it. And I’ll see on tomorrow’s
video.

8 Replies to “Is The Stock Market Going To Tank?”

  1. It's not a matter of if, is a matter of when… Stack up and be prepared to buy real estate property and stocks people 😁

  2. Kris, I wish I could explain my appreciation for your videos and what you do. I relate to your story, to your values, and I hope to buy my first investment property soon under your mentorship. Keep up the amazing work!

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