WARNING: Is The Stock Market About To CRASH In 2021? | Kevin O'Leary

i like to have when i know i'm going to be going into volatility up to 20 in cash to take advantage of really big down days anything with long duration any kind of like a utility stock that's going to suffer as rates slowly go up it's you know money for nothing and chicks for free for the next three months they're pouring money into the american economy like they've never done [Music] we don't want to keep them waiting guys chairman of o'leary financial group kevin o'leary mr wonderful back with us once again we appreciate your time as always kevin i want to jump right into things here before we get your you know forecast of what to expect going into this year let's take a second maybe and have a look backwards as far as investors are concerned what are the important lessons that we need to take away from a year that was 2020 on all scales going into the new year as far as investors are concerned well you know what's incredible about 2020 given the incredible volatility that started around march 7th is the majority of the gains on the year happened in 19 trading sessions some sessions as high as 11 percent up some as me as down eight percent the market was crazy wild in march april may so if you weren't in there at some point if you weren't exposed you missed out on a phenomenal year and you know you can trade around positions but sometimes you have to have a core holding batch of equity because you want to catch those eight hour trading sessions where you get 11 move and so it makes it harder to time the market when you have that kind of volatility and i think we're going to see a little bit more of that this year because of all these cross currents occurring with stimulus on all the rest of this but the big headline from last year was interest rates remain benign but that is not going to be the case this year and they've already come out and said that you know no rates increases are coming for the foreseeable future so possibly you know by the end of the year could we see something change in that sense well the fed can say whatever it likes but the bond vigilantes particularly around the 10-year they could do whatever the hell they want you saw the 10-year go through one percent my prediction is that it's going to end the year at two percent so 100 increase on that just from the bond vigilantes and that really doesn't affect your you know anything about equities because equities don't get hurt until you can trade a ten year at three percent that's when guys take money off the side and park it in a treasury risk free make three percent a year they don't care about one or two percent but we're not going to get that next year but the point is anything with long duration any kind of like a utility stock that's going to suffer as rates slowly go up and the reason they're going to go up even though the feds keeps its hands steady which they've said they're going to is that people are watching two trillion dollars fall from the sky from a helicopter and that basically is inflationary at some point it's you know money for nothing and chicks for free for the next three months they're pouring money into the american economy like they've never done this new 1400 check plus another 400 that goes straight into people's pockets and in many cases into the market so you're going to see a lot of volatility and i want to make sure we you know we reiterate that point that you made initially is there a number as far as a percent number is concerned that we should have in cash to be able to take advantage of some of these opportunities yeah i mean i think if you're if you're you know you have your core holdings because you don't want to miss the big up days and as we just talked about last year that happened across 19 days which is really concentrated but i like to have when i know i'm going to be going into volatility up to 20 in cash to take advantage of really big down days so you can sprinkle a little you know if you get a big correction as we saw happen in the energy sector last year and you put some money to work you've had a hell of a rebound there now maybe you're taking it out of there again because we just saw the bad news coming out of exxon the whistleblower story biden saying he doesn't like hydrocarbons so you got to be got to be nimble you got to be nimble but i like 20 percent cash in of all year like we're about to have so give us you've already uh mentioned a couple but give us your thoughts where where what group what area of the market should we be focused on that maybe might be under the radar a little bit at this point well you know one thing you've got to think about when you're talking about a a 10-year moving from one to two percent or even it goes up to 175 what's your inflation hedge are you are you a gold guy or your bitcoin guide you're like other cryptos what are you doing to trade inflation because you got to have a strategy and so you know maybe you play the glds maybe you go with frank holmes you know he's got a couple of royalty based go a you i mean i i own some of that too but the point is i like to be in a year like this five percent weighted in gold now a lot of people are talking bitcoin and that's interesting too because it continues you know to go i think it's about 800 billion uh you know almost a trillion market cap the only issue because i know we're going to talk about bitcoin let me lay something on the table for you got to consider there's a lot of talk that institutions are endorsing bitcoin that's not exactly true i'll give you an example the big story last year in q4 was the paypal trade the idea that paypal was now taking bitcoin as a currency to actually purchase product but what they're doing actually is immediately mark to marking bitcoin comes in that split second they turn it back into usd they take no risk on bitcoin they're not going long bitcoin they're not endorsing bitcoin they're just allowing it for you to trade it on their platform back into cash because every vendor that sells something on there wants it in us dollars the other myth is that somehow a big money center bank like a goldman sachs or jp morgan is telling clients to buy bitcoin there is no i can't find a single discretionary fiduciary in other words you're running grandma's you know million dollar portfolio you're putting her five percent waiting in bitcoin that is not happening where there's discretion they're not taking that risk because the regulator hasn't made a ruling not in germany not in europe not in england on switzerland not in china and so the risk you would have is if you have somebody in five percent on a discretionary basis in bitcoin and all of a sudden the regulator steps on it and you get a 30-40 correction you're part of that class action suit so be very careful in the assumption because the bitcoin everybody in the bitcoin world the kryptonians the bitdeloreans they're all telling you that this is now a mainstream institutional product no it isn't let's approach this from a little bit of a different angle then kevin you made your opinion on bitcoin uh very well known in the past is there a way that we might be able to get exposure to this market cryptos in general from an equity standpoint that we need to be aware of well the big one that people are waiting for is the coinbase ipo and that's going to be interesting because it's the first big infrastructure in the crypto and the talk of the town is it's going to be another hot ipo the only risk because that will be a pure equity play the only risk is that it's going to be highly correlated to one currency bitcoin and bitcoin unfortunately even though people talk it up as an alternative to the market as a counterweight to the market it's highly correlated to the market when the market corrects bitcoin corrects even more so we haven't seen that alternate you know sort of bias in other words go long bitcoin when the equity markets are correcting so what i anticipate will happen is you're going to get the coinbase trade it's going to come out it's going to be hot but it's going to be volatile as hell and because it's going to have market volatility and bitcoin volatility because none of the other currencies over the last three years have made it made a difference nobody cares about them bitcoin's the trade i want to get your thoughts on uh the ev space here before we get into some more fun topics uh before we let you go here kevin uh we've seen apple come into the space we've seen baidu now come into the space saying that they are also going to develop an ev product of some sort there seems to be endless space coming in the ev space i mean everybody knows about tesla where else should we be looking you know i think battery technology elon is going with lithium others are talking hydrogen and i think battery is the whole story there's also the consideration is is lithium going to become a scarce commodity there's lithium mines in in canada you know these are all the big issues of the day around ev evie's here to stay evmarket share will continue to grow tesla's you know in my view fully valued i mean that thing is is valued beyond a car company it's a data company it's a tech company it's a battery company it's a solar company it's everything and maybe that's okay but at the end of the day there'll be lots of other specs going into ev and every single car company if it wants to stay in business is going to have to do something in ev and i think the play on eevee and even the apple play if you think about it because all of the talk of apple going into ev is it's it's us in canada it's magna who's going to supply all the parts for all of these different players so the way i look at it is if you want to get into ev at a decent multiple you just go along some magnets see what happens now they're having a change at the top don walker is checking out new guys are coming in but that's okay walker did a fantastic job in that company the last few years but to me that's your baseline hold on ev because you're not going to pay some stupid multiple and magnus profitable in an amazing run uh into the end of the year magna had uh as well great stuff kevin we'll bring in sean and neil here to talk about some more topics sure hello kevin how are you my friend and welcome back to trader tv live seems like you're having a good day as we are here about to enjoy the long weekend uh and i know you know what we always say money doesn't sleep and i'm sure that you have some plans this weekend as well i wanted to talk to you about a quote that you made and i think that you're prepared for this on cnbc if we can throw it up on the screen i'll just let everybody uh see what this was here i have no problem with day trading but to me you can go to las vegas or you can day trade same thing that's not investing that's gambling so i understand what you're getting at and to be honest with you kevin i 100 agree with you what we're doing here on the show is not investing and i actually do preach like you do value and you told me last show cash flow is that better i practiced that uh from the last time so that's so and look i've been getting people into and again you know i'm not an investment consultant or anything like that but i liked jpmorgan sub 100 i like some of those value plays you mentioned exxon mobil but the thing about what we do here on the show and that sort of what we take different from that quote is we have plans of action and i think as long as you're day trading and you're not trying to yolo which is one of those terms that all these young kids have you only live once and there's reddit boards where people are just going crazy on some of these stocks neil and i really do preach risk management and it's about having an idea of when to get in and then when to get out right and sort of basing your your plan of action on that i consider that very similar to investing i know you want to put capital to work when it's necessary what what was sort of meant by that quote and i'm not sure if you've watched too much of our show but i really feel like with the education part that's really key to day trading and we tell people all the time trade with paper money first and then step into this wild wacky world of day trading well that quote was all about my new initiative and some of my fellow sharks are involved we're going into a big financial literacy cycle for the next two years we were going to high schools before the pandemic talking to 18 to 20 year olds about investing long term and and then now we're doing it virtually you know i'm doing virtual schools in new york and texas florida california i'm trying to get kids to start thinking about their futures and putting something aside for their retirement so my point about day trading i got no problem with it what i'm telling traders to do including those listening right now is every time you get a score every time you get a win you take 10 cents on the dollar and you put it into your long-term portfolio your little nest egg my core holding and i trade stocks i do very speculative deals on shark tank i got 56 companies and every time i sell one i take 10 of the winnings and i put them into a basket of ousa ousa is a is a subset of the s p 500 it's the most boring etf in the world but it's got the most highest quality balance sheets ousa which is the mid cap same idea oh gig which are all my high tech flyers it's an index and oh you are i'm starting to trade europe now so i take 10 anytime i get a win they go into that core holding basket and i never touch it and they pay distributions most of those etfs so i live off that and i pay for my expensive wife's renovations the whole idea is that you need your base then you trade around it but if you don't have a base and poopoo hits the fan you're screwed yep kevin you and i have more in common uh than we may even know because i often talk about my wife's purchasing power and it somehow uh outgrows my income power so uh yeah that's we're on that one i've made a small and i agree with you my largest holding in my account is disney and we are picking up those shares in march and again you know lots of capital to work there i love disney and my second largest is google so i'm sort of with you on a lot of these i do think you got to put some away what i've done though last time kevin so a couple times ago you roasted me because i was wearing my smart watch and man was that a bad feeling so i brought my first watch that you've seen already the breitling the chrono mat okay but i dare you step in very nice but i brought some major bling because i'm in miami i made him show you guys some watches i made a purchase as well kevin i want to see your watches based on your advice i took close to that 10 and i stepped into the big boy realm here so i actually got the new 41 millimeter rolex submariner there in black unfortunately i don't have the pull to get the kermit green but i did get the black one i'm loving this watch and again as you know watch is maybe also a good investment kevin that 41 mil mariner is already up in the aftermarket so you've made money on that in a way that's going to continue to grow over time i wanted to have some fun with you let's stay on the rolex theme i'm going to show you the hottest watch in the world right now in terms of appreciation in 2020 it is the rainbow right here hello and what i like about it it's outrageous it's covered in rubies and diamonds it's just a just despicable in terms of what this thing says but this is a great investment number two in the world right now staying on the bling theme the eye of the tiger no the only one in the world with a red band this is a rolex daytona eye of the tiger this is it the only one kevin this is also very very valuable but i want to show you something crazy kevin those are all diamond studded my friend this is i know but i'm telling you you know who knew i'd go bling i've gone bling and this is very very happy you walk around with bling and all the women come up to say can i have that watch it shouldn't be on your wrist that's a woman's watch we're going to get in trouble with the wives here i mean i don't know if you're going to be coming out with a rap video soon or something like that these these watches are ridiculous congratulations let me show you something crazy now one of the hottest new trends in watches is to make the case out of a solid piece of sapphire and the companies that are doing that are selling them between 150 000 and 800 000 along come these two dudes in australia they go to china they go to the company that actually carves these cases and cut a deal of their own and here is a solid piece what a solid piece of sapphire it's got a tourbillon movement made in china and this thing the only one in the world the red band i'm telling you it's the size of a dish it's so big if you wear this on your wrist people go crazy but it's solid sapphire guess what instead of eight hundred thousand they're making them for five grand us how cool is that so i'm gonna give these guys a shout out i'm doing something really big with watches if you wanna follow me follow my instagram at kevin o'leary tv watch what's about to happen i'm going to do some crazy stuff with all the watch manufacturers i'm having so much fun with this it's crazy i'm going to bring some really cool pieces and some people are going to be winning them on my instagram site kevin that's amazing if you need me to uh help you promote anything hey look i can take one of those watches uh and throw it on our social media as well just go go to my instagram site and watch what happens this is good this is the kind of stuff i do for fun it's going to be crazy yeah exactly look you got to have sort of a passion i know you have a few other ones uh as well and it's amazing i don't want to take up too much of your time we do have some questions from the audience kevin thanks again i love my new watch and i don't know if i can uh diamond stud this out or not but i did have to move up the ladder to get this so thank you for some recommendations those watches are impressive i will follow you on instagram but only if you follow me what's up neil absolutely i follow you back what's your handle it's at trader tv sean i've been tagging you let's go back and forth kevin i love it okay cool i'm just curious about this eye of the tiger me you actually wear that one in public people would lose their mind on that bad boy that's got to be got to be my pick kevin we we have some questions here oh my goodness don't do that to me i'll be staring at my program monitor instead of talking to everybody here uh we have a lot of questions to get to and uh we're gonna go with one here because i know you have you're busy and hopefully maybe we can have you on again to get some of these other ones but uh from don't know 443 is one of our viewers here uh mr wonderful what do you think about covet stocks in 2021 specifically e-commerce uh and teledoc i think maybe telehealth in general but i think uh teledoc i think a lot of people are interested in yeah you know i think the trends of um the whole move to e-commerce these incredible lifts if you saw nike's numbers they they're almost at 50 direct to consumer worldwide and they thought that would take them six years they did it in five months so any name that is empowering i'll give you some that really i think it could continue to move everybody knows the shopify story the docusign story the zoom story they just did a secondary for a billion five they're probably going to become the standard like kleenex is for the we're using zoom right now all of these names crowdstrike jd.com wix.com i own them all in an index called ogig that i had a hand in designing but those are the names that are going to continue it's not stay at home anymore it's work from anywhere because 15 of people are not going to go back to the office ever and so this is what's powering this new digital america digital canada digital mexico digital europe it's all of this technology so uh that ogig i mean i don't know if you make any uh alterations to the lineup there i don't know if you'd love to come back on and talk about any updates that you might have to those shares but uh yeah i know i i listen i love coming out with you guys we have some fun we should do it on a routine basis it's just too much fun that's what honestly that's what i'm talking about but uh i i gotta say this with sean i i told my wife to tune in she has the day off today and uh thank you very much for blinging it up because uh you're gonna cause trouble for us uh gonna have this i know you know what i think your wife should do tell you to buy her and i have the tiger my wife is trying to steal my eye on the tiger i mean it's ridiculous i can promise you that's going to happen now so uh thank you so much we'll we'll try to get when you get your back on we'll have a few more questions for the audience i absolutely promise i know you guys want to do more but uh uh kevin i have to throw you back to brennan it's been an absolute blast as always uh i can't wait to talk to you again thank you kevin real quick before we let you go i want to reiterate that point you were making about watches in general but you've said this and made comments on this in the past how important it is to have something as a passion maybe not as you know a job or even an investment but something that you can do in addition to work just to keep life balanced especially in this environment yeah i i totally agree with that it's the yin and yang something crazy on the side you know what i like about watches it's expanded my contacts all around the world i've got a huge collection now the largest collectors on earth are the royal family of the united arab emirates and the saudi government so now i have all these friends over there you know people that are part of the royal family talking about watches because they see me talk about it all over the internet and on cnbc and everything else and it's and i've actually got into deals with some of these guys now because you know they they have the largest watch collections in the world and the reason you want for watches for men is you appreciate in value my you can buy this or not it's free it's chrono 24 it's an app you download it on your phone you put your watches in it and every night it gives you the mark to market value of the last trade globally of your watch and so i'm up 113 year-over-year on my collection if you like that video where you see my next one don't forget to click right over here and subscribe

Channel: Kevin O'Leary

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Keywords: Kevin O'Leary, Kevin O'Leary interview, Kevin O'Leary speech, Kevin O'Leary top 10 rules for success, how to become a millionaire, how i became a millionaire, how to make millions, money, wealth, cash flow, entrepreneurship, entrepreneur advice, success tips, success habits, millionaire habits, millionaire tips, how to make money, how to invest, shark tank Kevin O'Leary, ask Mr. Wonderful, is the stock market about to crash, 2021 stock market crash, stock market, investing

Id: U5l4KLoS3hM

Length: 20min 52sec (1252 seconds)

Published: Tue Feb 09 2021