Oh, what a mess folks. They say you can't have the good times without the bad. but boy can the bad times be bad. We did see some strength in some of the other indices today the S P 500 and the Dow.

but oof, Growth stocks? No. And as we continue to brace ourselves for more fear over interest rates now, we have the Fed warning about more potential downside, saying there's potential for significant declines in asset prices as valuations climb. Arguing what we've been talking about for a while that higher interest rates mean that people are going to be taking less risk and that causes a lot of cooling off. And that's obviously why we've seen growth hit so hard, and this seems directed at issues in the broader market.

They're worried that, hey, if interest rates start creeping up, people are going to be a lot more risk-averse they're not going to be willing to take on that risk. No Fed Chairman Jerome Powell argues that as long as interest rates stay low, the valuations are justified. So you're kind of back to where we were yesterday. and a couple weeks ago, People can't make up their minds as to whether inflation's going to get out of control or if we're just going to have high inflation that then gets counter balanced over time.

The growth sector is freaking out because they're worried about out of control inflation, right? So if we don't get that out of control inflation, obviously you'd see some more pouring in. But how much evidence is going to be enough of that? How long is that going to take? How long are we going to have to ride this ride? And in terms of emotion, Like honestly, we all know, and it's pretty cliche at this point to say that the best time to buy in is when everybody's panicking. when there's so much fun and fear and everything's going down. That's the best time to buy in.

And the worst time to buy in is when everybody's euphoric and it just keeps going up day after day. but our minds and our emotions tell us the opposite. Obviously, there's capital invitations and there's always that question of like, okay, well, how much dip does it make sense to buy before I just have to sit it out and wait for it to recover. And you know, give us some some some return.

But emotionally, especially if you're somebody who's very focused on the growth sector, which a lot of us are, then you're going to be questioning yourself every single time there's a bludgeon and you're not going to be testing those convictions. Instead, you're going to be cracking those convictions. It's funny because during an uptrend, we all think that we're geniuses. We give ourselves a little bit too much credit, and then during a downtrend we all think we're morons.

We give ourselves a little bit too little credit and speaking for myself. At least. it's very, very frustrating to see that slow market day after day. Sometimes you get a little bit of hoop and then it goes and it's like oh, if you put the work in, you saw what this is worth.

You looked at competitors, you saw that this is a company that has proof of concept. It has an emerging market, it has tons of potential, and then it just keeps trading sideways and you get frustrated and you lose your conviction and you lose your passion for the market. But what you don't realize amongst that storm that seemingly never ending storm is that this is the exact moment where you create your future in the stock market. Sometimes we lack proper perspective and it gets us too caught up in the moment and we don't think about.

Okay, well, what decision will I wish I had made six months from now or a year from now if I really believe in a stock, Should I dump it because I feel really bad on the day-to-day Should I avoid Dip buying it? If I don't have capital D By should I just sell out and then try to buy something else that's shinier? What is going to make me feel better Or what is going to make me better off Six months from now? A year from now a year and a half from now. Sometimes we buy stocks that we shouldn't have bought stocks that we actually didn't have conviction in, stocks that maybe we bought because it was running and then we tried to talk ourselves into that being a good stock. We started googling why is X stock good and then we used confirmation bias to double down on that. but other times we put the work in beforehand.

We let the stock itself convince us to buy it. We said, okay, well, what does this stock offer me at this price And then we bought it and then it dipped and we said, okay, Wait a second. Maybe my logic was wrong because the hedge funds are shorting it. Maybe I'm wrong because there's a housing crash.

Maybe I'm wrong because there's a virus that's going around and the United States is done forever. Maybe I'm wrong because there's a dot-com bubble. There's a oil crisis. There's all these little crises that are short-term killing my stock.

Maybe hedge funds are shorting it. Maybe there's a short distort campaign? You know. Whatever it is. What are you basing your stocks price on? Are you basing it on the value of the company? Or are you basing it on what the crowd is fearing and thinking in the moment? You really have to ask yourself that question sometimes, especially if you're a long-term high conviction trader.

But anyways, folks, I rambled a little bit. but I want to go ahead and talk about a couple different growth stocks, and I want to use those as a context for what's going on with the market right now. And of course, the only thing that I ask of you in return is that you hit that ravishing like button and also don't forget to subscribe. So Pltr breaking into New Year to date lows, this is.

Well, in the last couple of days, Pltr renewed their partnership with the Us Coast Guard to fight Covet 19. this is a celerity. entered into a multi-year strategic partnership just yesterday with them. This is as they've made strategic additions to their leadership.

This is, as over the last eight weeks we've seen more and more partnerships either be introduced or extended. More and more shows of revenue, More and more shows of value. More and more happy customers and more and more people expose the Palantir through Amazon Web Services amongst other partnerships. But of course we're talking about Pltr the company and Pltr of the company isn't Pltr the stock.

and I saw an article the other day that said more deals should lead to more gains for Palantir, And that's a similar argument that I've made in the past with a December January February and it was true. Back then, more jobs, more partnerships, more proof of value. Those all did lead to more gains for Palantir, but it certainly hasn't been true for the last couple of months. In fact, more gains and more proof of value has served more of a purpose to help people get out of a position than to get into a position.

Maybe if anything, it causes a little bit of a short-term blip and then people just use that to crush it. Short sellers pile in and other people sell out of their positions if they weren't happy with the valuation before the rally, there's a strong disconnect between the growth sector and the attached companies to it. Some companies in the growth sector definitely got overvalued, Some of them really shouldn't run at all, but there's many others that have all been tagging along with those, and that's pretty much across the board. You're seeing every growth stock down.

If we're looking at Pltr and their earnings next week on the 11th, you ask like, okay, well, you know if Pltr does really, really good on earnings, If they have a huge beat, is that going to stop Pltr's downtrend? And the answer is likely not. As long as you have hedge funds feeding off the pressure, short selling and then feeding off that fud, you're going to have lots of people taking profits after each and every bump. You know? I think that Palantir the company is a good buy. Absolutely, it's an excellent company, but the stock is a whole other story because it's in the growth sector and the grill sector is trash right now.

getting punished just for being a Grove stock. I don't know if there's any individual news for any individual stock that is going to make it perform. In order to actually reverse a trend, you have to get rid of the food that is crushing it. And the food that's crushing.

It is number one interest rate fears and then the structure that's crushing It is number two Hedge fund short selling and hedge funds deleveraging and people going and selling every single increase. And we've talked a lot about how the Growth sector has been extremely easy money for hedge funds because it's very, very easy to convince retail traders to buy and sell just based on where the stock is going and what the media is saying. That way they can put out pump pieces and then screw you on both sides. I've talked about that a lot.

I don't think I need to go into that anymore. But let me respectfully ask you this question. Who do you think is going to end up making money on Pltr? Who made money when Palantir went down? Who's gonna make money when Palantir goes back up Wall Street and the hedge funds? And it's not like I'm complaining about it. I might be ranting a little bit, but it's sort of like the Spartans at the end of the 300 movie.

like they were outrank. No shite, they got killed. And what's happening in the Growth sector right now is that a lot of us are being outranked. Not physically, and not even really financially.

We're being outranked emotionally. Hedge Funds institutions. They don't have emotions. Maybe the individuals in them have emotions and there's some ego there.

But overall institutions don't have emotions. like individuals do. They don't have tons and tons of research teams to go and make decisions and make calculated risks. And the truth is that very, very few traders can emotionally afford to hold positions or by the dip on positions that they know they should be.

buying the dip and holding, they know that. it's agonizing. It's excruciating to keep buying dips and holding through slow markets through downtrends, to just keep doing that and dealing with that month after month after month. A Bank of America report that came out yesterday said that retail traders were the only group to buy U.s equities for the third week in a row, as institutional clients sold equities for the third week and hedge funds sold it for the fifth week.

Hear that retail traders were the only group to buy us equities for the third week in a row. So if you're a short seller, why the hell would you reverse the trend? You know that you have another layer of retail traders to crush and forced to sell out and get you some more downsides. The plus is that yes, retail is recognizing good deals. We like that.

But the negative is that hedge funds and institutional investors now know that if they crush retail stocks enough, they'll be able to realize a ton more gains because there's a whole other layer of retail traders. The worse the Fud gets, the more money they make because The more retail traders pack up and go home. And that's what this shows when you have a lot of retail traders buying in that these are people that are going to sell out in a panic. the more that you can short and distort these stocks in the sector.

The Mirage is so strong that people actually think that every single growth stock just all of a sudden decided to be bad. They know exactly how to get us, they're going to get us right until we can't emotionally afford to lose, and then we're going to lose it all. Playing the cycles. They know how to play the cycles.

They play it up. They play it down, They play it up. They play it down. They make tons of money, both sides.

But just think about this for a second. The right action is almost never the one that Wall Street and the market wants you to do. What is the growth sector telling you to do? It's telling you to sell everything you have. It's telling you to never come back, Telling you that you're a for buying stocks that have a lot of promise.

I want you to ask yourself when it comes to any growth stock. I'm using Palantir as an example, but ask yourself: Do you believe that Palantir is undervalued? Do you believe having more partnerships? Having more clients? Having more revenue? Having more value? Proof. Proof of value. Having more proof of concept overall in the business model and a huge expanding market? Do you think those things come together to make a company more valuable? Or they make it less valuable? I think that at the end of the day, folks, the stock price is never going to tell you.

Whether you're right or wrong, you have to think for yourself. You have to say, okay, I see this storm. I'm going to see through it. or at least I'm going to see to the other side of it.

I know that storms don't last forever, but I know that a lot of the best decisions the most impactful decisions happen when you're in the storm. They happen when you can't see ahead of you. They happen when you've sat down, you've put the work in. You haven't listened to what everybody else is saying, You haven't just listened to what I've said.

You've gone on and you researched it yourself. That's when the most personal growth happens and then after that, that's when the most account growth happens. so folks don't give up. Keep working at it and I'm looking forward to seeing you in the next video.