5 signs a stock market crash could be coming 👀

@nobudgetbabe

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Why it worked

The video taps into a common fear and interest in financial markets by presenting clear, actionable 'signs' of a potential crash. The creator's personal anecdote and confident, yet cautious, tone make the complex topic relatable and trustworthy, encouraging engagement and a desire to learn more.

Summary

The creator discusses five signs that suggest a potential stock market crash is imminent, including overly bullish investors, high stock valuations, unrealistic expectations, the historically poor performance of September, and a general sense of complacency. She advises viewers to have a solid investment plan that accounts for market volatility and to avoid panicking.

Structure

1Introduction to market and economic warning signs
2Anecdotal evidence of American Express cutting credit limits
3Article predicting a 10-20% market correction
4Five reasons for the predicted correction (bullish investors, high valuations, high expectations, September seasonality, complacency)
5Creator's personal investment strategy and advice on risk management

Original caption

Scary headlines don’t make me sell my millions in investments. And they shouldn’t make you panic either. 😂 Hi, I’m Nicole Victoria. I built an eight figure net worth by learning how to actually invest, manage risk, and build a financial plan that works whether the market is ripping or dropping. Because babe, getting rich isn’t about predicting the market. It’s about knowing what the fuck you’re doing when it changes. 💅 Want to learn how? Take my FREE Investing Masterclass or apply to work with me at the link in my bio.

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Transcript

Okay, there are some really weird signals coming from the stock market and the economy right now and I think that you guys should be paying attention. So the other day I made a video about how Wall Street is basically all in on the stock market. Some of the biggest money managers in the world are only holding three and a half percent of their portfolios in cash and in context that is really freaking low. And then at the same time, my entire feed is people talking about how American Express has cut their credit card limits. Now, obviously that part is anecdotal. I can't find anything online that says Amex is broadly doing this. However, credit card companies have a history of aggressively cutting credit card limits during financial crises. Think COVID, think 2008. Um, think about why? Because if people start experiencing more unemployment, they start living off of their credit cards. These credit card companies are trying to maybe get ahead of it and reduce their risk. And then there's this article that just came out which is basically calling for a 10 to 20% correction in the stock market for the following five reasons. Number one, we have investors who are extremely bullish. So they're basically saying nothing can go wrong. They're heavily invested, they're not holding a lot of cash. And historically extreme confidence can actually be a really big warning sign. The second point was stocks are really expensive. So people are paying a lot of money right now for every dollar of profit a company makes. Number three, expectations for these companies are insanely high. So not only do these companies have to do well, but they actually have to do better than what everybody expects. So not only is that a lot of pressure, but that leaves a lot of room for things to go wrong. Number four, we are heading into September, which is historically one of the worst months for the stock market. And number five, we have all of these indicators that tell people how the stock market is doing and the majority of them are saying the same thing, which is people are too comfortable right now. So does this mean that I'm selling my multi-million dollar portfolio and sitting in cash? Not maybe. Maybe the market drops 20%. Maybe the market keeps ripping. Doesn't matter because I win either way and your investing plan should too. If you want to learn more about how I invest, go take my free investing masterclass on my website. I never invest my last dollar, right? I have my GIC ladder, I have my emergency fund. So I'm paying attention to this, absolutely. Because I love a good sale. However, I'm not panicking. Because maybe the market drops 20% or maybe the market keeps ripping. Doesn't matter because I win either way and your investing plan should too. If you want to learn more about how I invest, go take my free investing masterclass on my website.