Why is there a MASSIVE market sell off today? #StockMarket #Stocks

hello oracles massive market sell off today to start the month of September the Dow Jones is down one and a half% the NASDAQ is down 3 and 1/4% the S&P 500 is down just over 2% and the Russell 2000 is down just over 3% so why is the market selling off now what catalysts do we have that have caused all of this selloff well I thought about it today and could be one of the many reasons why it's selling off and of course nobody's going to know for sure sure but think about this I mentioned it this morning how September is the last month of the quarter at the end of the month we are going to be seeing a bunch of rebalancing going on for all of the institutions and funds that are out there well if you anticipate an election downturn coming over the next two months and you factor in the 30-day wash roll if companies are selling off now with you know looking at what was selling off today was a lot of these stocks that had been doing very well the Russell 2000 had a big Bo over the last month those being smaller cap stocks move a lot more percentage wise than you're going to see from large cap stocks so big profit taking there and of course we saw big Tech selling off massively today with we had Nvidia down over 9% I think almost 10% down on the day today we saw a lot of huge tech stocks down massively that's a lot of profit taking so a lot of these institutions and funds are selling high in anticipation of buying back in low so if you think about the fact that they've got a rebalance at the end of this month and then earlier this year there was a lot of tax lost harvesting kind of preemptively earlier in the year when we got a bit of a selloff so we've got companies taking some profits right now to try and resettle themselves up for the middle of October so if they're going to play off that wasall and they've got to wait 30 days this is now the first trading day of the month of September they'll rebalance at the end of October and they'll start buying in lightly at the end of the month but they're going to be buying in more heavily when we come into October once we pass that 30 days now it also gives him that window because we're still going to be in that election uncertainty in the month of October we still don't know what's going on with the economy as well but it gives them a much larger window instead of having to wait let's say they sold at the end of September or beginning of October and then we have election time coming around at the beginning of November that window is much smaller for them to buy in knowing what's going to be going on this here at least gives them that opportunity in the month of October oober to kind of feel things out and see how much they want to buy do they want to buy little bits do they want to buy a lot then they can anticipate all right how do we kind of settle things out when we get into November when election time does hit they have a lot of this cash on the sidelines just waiting to see what they're going to be doing when we get to election time so I think that's a lot of what was going on right now is they're just selling in anticipation of the bigger sell off coming over the next two months and they just were doing this early on profit taking so now I'll ask you did you sell anything today I did sell out of the two funds that I said that I was going to sell out of I sold out of high hi and Kip so I took that money refiltered it into a few of the other plays that I have that are out there and then left the rest on the sidelines for cash because I am anticipating the same thing that we are going to be getting much better buying times over the next two months now I don't know if once we hit the election time as we have seen in the past that we're going to just Skyrocket from there and boom into the end of the year I think there's still some economic factors we need to work out when it comes to that when it comes to the FED cutting rates are they going to be cutting 25 or 50 basis points in September they're most likely going to be cutting again in November but at that point do we see economic data that forces the FED to cut faster so I'm just kind of waiting to see what opportunities are going to present themselves waiting to see what's happening with the economy waiting to see what happens with the election before I really deploy too much more cash out there my next phase of my plan I have completed phase8 I working on phase 9 this is saving up 9% cash into my portfolio and anything in excess of that I'm going to filter into my stocks and ETFs that show that they are a little bit lower than they should be based upon where I want them to be so for me I have my stable income plays and then I have my long-term ETFs and then I have my dividend growth stocks those there within each category are equal weighted So within that when one or two stocks or ETFs dips down a little bit more I just make sure that nothing has fundamentally collapsed with them and if they are still a strong company I take that as an opportunity to buy on the dip but again it's such small amounts that's not going to factor in too much I'm not going to be spending a lot of cash and I'm keeping my cash above 9% for right now once I passed phase 9 then I moved to 10% cash so I think we have a lot of time still coming up for buying opportunities especially if we're going to get that recession you know there's some people who are saying we don't have a lot of recessionary indicators yet but I think that we have a lot of signals that are kind of leading us to a potential recession and I think very similar to the 2008 financial crisis we have some people kind of kicking the can down the road when comes to showing what true data we have that are out there kind of letting us know where we truly are as an economy there's a lot of retail buyers and a lot of just people that are out there right now who are getting higher and higher into credit card debt so I think we are kind of pushing ourselves to a breaking point and I think we're going to get there in the next six to 12 months so it's going to suck I really don't want us to get there I prefer we didn't get there because it's going to hurt for everyone to get to that point but as a wise investor and to prepare myself as people had seen what happens in 2008 I want to make sure that I am ready to take advantage of this situation so that I could be like one of those people who came out of it stronger on the other side and I also want to prepare just in case I happen to be one of those people who maybe loses their job I want to make sure that I am prepared to be able to handle that as well and so going back to why the market sold off today again that was just my initial thought was that there's a lot of Institutions and funds that are just selling in anticipation of us pulling down significantly more over the next two months making sure they want to hit that wash just kind of keeping cash on the sidelines and they want to sell now before it dips too much further and of course it's a self-fulfilling prophecy by them selling off it causes that downward spiral of a selloff but I think they may want to intentionally trigger that anyway because they keep undoing that and then they'll sell off and sell off trigger a bunch of other people sell orders then you kind of get that you know fear in the market and more people just selling off and you get to that Panic selling point and as Warren Buffett has always said buy when others are fearful and sell when people are greedy we had been getting to a very greedy Point recently we've been seeing 52 we and all-time highs for many companies that are out there and now we're kind of getting to the point where hey let's get to some buying time so kind of want to push that stock prices down to get to that fear part where then you know institutions and funds can get greedy again and they can buy in when others are fearful so this is just the way they swing the market in the near-term movements and everything like that but again you take a look at those opportunities to buy and I'm not trying to time the market but we go through Cycles so I'm just waiting for that down cycle to come up buy a little bit at that point just kind of follow the market and see where it's going and then let it go up from there it's been working up very well for me so far I'm just going to continue that Trend and of course there's always those buy the rumor sell the news situations where you know we still do have two weeks until we end up getting to the FED cutting the rates but maybe we're just kind of selling an anticipation of that maybe there's other signals that are out there but truly I think that most of the sell off today was just that early on profit taking before the the end of the quarter before the rebalancing really takes place that they're trying to get themselves settled right now and get ahead of everyone else before they do their rebalancing at the end of the month and now one of the stocks that I will be looking at adding more to at the beginning of October is going to be Tesla stock so again looking at the rebalancing coming at the end of the month looking at the fact that we're going to be probably going through a dip due to the election uncertainty looking at the FED cutting rates maybe getting to more uncertainty after that more economic data and the Tesla is going to be coming out with the delivery numbers in early October and now looks like right now they have very strong numbers for production coming out of China now we did see weaker than expected manufacturing numbers coming out of China but Tesla was bucking that Trend Tesla has been producing a lot of vehicles over there and looking at the insured vehicle data that is also looking strong so it's not like they're just producing vehicles that are sitting away on the sidelines and parking lots seems like those are going to Consumers so we may see some very good numbers coming out of Tesla for Q3 that might surprise a lot of people so I'm just kind of holding myself here I've got the cash on the sidelines waiting to see what's going to happen now we do have to take into account margins and other numbers as well and if we're getting into a darker economic time and we do hit a recession it still could be very difficult for Tesla out of this and the stock price might not reflect those numbers so again this is just something I'm anticipating and I'm waiting for and I will do a video when we have the delivery numbers that come out so for me I'm just kind of waiting but it is one of those stocks that I'm kind of paying attention to to wait and see what is going to happen when we get to the end of this month and we get those delivery numbers in early October and then the other stocks and ETFs that I'm paying attention to especially if we are anticipating a recession or if we're seeing the economic data pointing us towards that direction are going to be the consumer Stables which did have a strong day today I'm also looking at Reit also had a good day today REITs are real estate investment trusts they don't really appreciate a lot and value most of the time but they do pay out those dividends and they mitigate downside risk so I'll be looking into those possibly some utility companies maybe Duke Energy these are just things that I'm paying attention to as the month goes on when we see economic data if we're going to see the uncertainty when it comes to the market due to the election if I'm going to see buying opportunities and I see more indicators that point us to a recession I'm going to want to buy more of those stocks and ETFs that are going to weather that storm better than others Tesla unfortunately would not be one of those Tesla is a growth stock so if I'm anticipating that I may hold off on buying that add more to my portfolio when it comes to those re income generation ETFs and other consumer staples and safety stocks that I can go into that are going to produce some dividends and mitigate that downside risk so that as we get into a recession if the market does pull down much further which typically it would then I would be able to have that cash coming in to be able to buy more of those stocks like a Tesla during those deeper darker times to be able to add more at a lower price again buying those companies at a discount is how you're going to generate that bigger wealth in the future we typically get a recession once every 10 years that recession once every 10 years is the best buying opportunity from an Investor's standpoint that you could possibly have so if we only have that opportunity once every 10 years and we have one of those potentially coming I just want to be ready for it now of course we may not hit that which is why I'm not just selling out my entire portfolio I'm still building as we go slowly but I'm keeping myself prepared just in case it does happen so I'm kind of playing both sides having all that cash is going to be my hedge having those High income ETFs having those reats having those consumer stables and utility stocks that is my hedge just in case we get that downside and I'll be able to purchase from there but I still have all of the higher dividend growth stocks and I have my other growth stocks as well in my cryptocurrency just in case we don't because if we come out of this no recession and we boom after the election I also want to be ready to take advantage of that and again having that cash on the sidelines we see those signals cool I'll deploy cash into the right places for growth and I'll grow from there so that's what I've seen today that's kind of my take on it you guys can let me know your thoughts in the comments below why do you think we saw the sell off today how long do you think this selloff is going to last and do you think I'm right do you think I have any point whatsoever in this do you think I'm correct or am I totally off base I have been wrong in the past Maybe I'm Wrong about this as well and I'm open to discussion on that so thank you guys so much for watching I appreciate all your support have a great one