Stock Splits are Secretly Pumping the Stock Market
Рет қаралды 47,437
Күн бұрынNvidia, Apple, Amazon, Google and Tesla have all carried out stock splits across the recent years, and have all benefit from returns thereafter. But could an innocuous event such as a stock split really contribute to boosting the returns of the Magnificent 7?
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★ ★ CONTENTS ★ ★
0:00 Are Stock Splits the Secret Sauce?
0:55 Why Split Your Stock?
4:10 Investor Sentiment
5:30 The Signalling Hypothesis
7:58 Investor Attention Hypothesis
8:40 Behavioural Finance Theory
9:30 Do Stock Prices Rise After Splits?
My Podcast: / theyounginvestorspodcast
Brandon van der Kolk is authorised to provide general financial product advice in Australia and is an Authorised Representative (Number 1305795) of Guideway Financial Services Pty Ltd, AFSL Number 420367. Any advice is general & does not consider your financial situation, needs or objectives so consider whether it's appropriate for you. Read Brandon's Financial Services Guide available from guideway.com.au/NewMoney.pdf. Past performance is not a reliable indicator of future investment returns.
Contact email: hello@newmoney.contact
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@NewMoneyYouTube 19 күн бұрын
Hey guys - thanks as always for watching! If you're feeling like helping out while you watch, feel free to report some spam accounts. I've been trying to stay on top of them recently, but it's very hard as just one guy. We shall defeat the bots!
@robsalvv5853 18 күн бұрын
👍
@AndersonFair-cy2bb 4 күн бұрын
Is stock market actually getting better or is this the regular start of the quarter market manipulation to entice investors? I'm currently sitting on savings and i'm wondering do I invest in company stocks or just buy gold?
@FaithAndrada-xo9ou 4 күн бұрын
The 5 percent fixed incomes are a safe bet. Save your cash for when the market actually shows sign of recovery or better still seek professional help.
@Raymondcraw1967RaymondCrawley 4 күн бұрын
Investing Is more than reading quarterly reports. Learnt this from reading Peter Lynch's book. I believe there are people who do this for a living, and I just delegate the task to these professionals. That's how I make money from the market to be honest.
@fredrickmcgraw9491 4 күн бұрын
pls how can I reach this expert, I need someone to help me manage my portfolio
@Raymondcraw1967RaymondCrawley 4 күн бұрын
I'm not one to give recommendations but The likes of Rachel Sarah Parrish does a good Job. I've been working with her for years. All the info. you need to set up an appointment is on her web page.
@Raymondcraw1967RaymondCrawley 4 күн бұрын
Not to blow her trumpet, but Rachel Sarah Parrish is exceptional in navigating tough markets. She has been planner ever since we met in London global economy conference. she's verifiable , so you could just search her and book an apointment. good luck!
@theantisocialsocialite- 18 күн бұрын
I think it’s the opposite. Stock split is a last ditch effort to make an over valued stock seem cheaper. Basic psychology. It’s a way to detach you from the previous sentiment ie 1000 is too high for Nvda idk if it could reach 10k. But now that it’s split at $100 per share all of a sudden we think it can reach $1000 per share once more cause it did in the past. Even tho it’s the same thing. Look at nvda it blasted off after the split. Ride it, and then sell. I think nvda is going to correct some before it goes up any higher.
@lizardspiral 14 күн бұрын
Yes! It's 100 % an accounting trick to convince irrational speculators to THINK it's cheap. Resorting to this , is very questionable of Companies actual driving factors for value.
@jordanthomas883 19 күн бұрын
I think a stock split makes it easier for option traders to get positions
@kato249 17 күн бұрын
Yes, this. 👍
@nickpollockpiano 19 күн бұрын
You forgot about how stock splits help people to access options contracts (effectively allowing them to leverage their position on that stock) because options contracts always deal with 100 shares of the company. Eg i would love to buy call options for alphabet (deep in the money, far away expiry), but the share price makes that basically impossible. I woul also love to sell cash secured puts for alphabet stock, but i also cannot afford it
@MartinD9999 19 күн бұрын
Wow, that’s true. Good catch!
@theoldlore 5 күн бұрын
Yeah options are basically gambling but that doesn’t mean some long term sensible calls aren’t a good investment opportunity. The initial buy prices now really are limiting and it’s garbage 😂
@dolevmazker736 19 күн бұрын
Great video brother
@metatron6661 19 күн бұрын
Really informativ video !
@ellinorpettersson 19 күн бұрын
Great video!
@BusterDarcy 19 күн бұрын
That spilt will hurt Nvidia when AI no longer needs those expensive GPUs for processing, which the industry is heavily incentivized to figure out. They’ll be like AOL when broadband hit the scene and the internet was no longer this rare commodity you could charge by the hour for.
@clarencelam1765 19 күн бұрын
it is slowly happening if you are keeping up with this space with neuromorphic computing and newer more efficient AI architectures. It is also well-established that by 2027 (Google Stanford HAI 2024 report) most high quality data will have been trained and there is a potential for some kind of an AI winter again
@MartinD9999 19 күн бұрын
I’m guessing a small underdog entity will explode with the architecture to make these GPU’s near obsolete for AI.
@clarencelam1765 19 күн бұрын
@@MartinD9999 already happening with startups like Cerebras
@odoacredacalcutta5085 19 күн бұрын
lol, saying AI won't need gpus nowdays is like saying in the 80s that cars don't need oil.
@hklhkl21 19 күн бұрын
@@odoacredacalcutta5085 Cars dont need oil
@decus9544 16 күн бұрын
It's a sign of a bubble; when there is extremely high sentiment including by a large number of very poor retail investors, stock splits make a stock more accessible to them, drawing in more money and pumping up the stock price.
@sauercrowder 11 күн бұрын
Could be! Those people also tend to bandwagoners. Much like how everyone wants in when the lottery jackpot is the highest, they tend to only think about playing around with investing when we're at the end of a major bull run.
@robypoteau 17 күн бұрын
I still think the accessibility argument could works with the psychology argument. Even though you can get fractional shares, I can imagine there is a psychological barrier that is removed when you can acquire a whole share.
@TheBooban 17 күн бұрын
Like bitcoon 😅😅. No, but seriously, no, I can’t buy fractional shares. As far I know, it’s a thing only in the US.
@tHebUm18 19 күн бұрын
Might depend on brokerage, but for me buying fractional shares has additional friction because I can't put in an order for fractional shares at a limit price outside market hours which is super annoying since I get fractional shares to fill out money transferred in to a level that less than $1 is leftover in cash and market volatility could throw that off. Much easier to buy full shares.
@salinagauntlett 10 күн бұрын
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She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
@TaggeGust 10 күн бұрын
I'm new at this, please how can I reach her?
@GrozaGroza-ko7fn 10 күн бұрын
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
@salinagauntlett 10 күн бұрын
she's mostly on Telegrams, using the user name
@salinagauntlett 13 күн бұрын
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@jadewashington7 13 күн бұрын
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
@mikesnoek 13 күн бұрын
The very first time we tried, we invested $1000 and after a week, we received $5500. That really helped us a lot to pay up our bills.
@aarizphilip 13 күн бұрын
I'm surprised that you just mentioned and recommended Charlotte Miller, I met her at a conference in 2018 and we have been working together ever since.
@lapetiteblonde 13 күн бұрын
I'm new at this, please how can I reach her?
@agathacolleen 13 күн бұрын
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
@user-ug5bc2ym6p 18 күн бұрын
It's also because USA stock generally start from a point that is to high eg they list shares at like $100 where as if they listed the shares at $1 they wouldn't need to do a stock split for decades, and if they get to $1000 they should do a 1000 for 1 split to get it back to $1.
@17napps38 19 күн бұрын
Great vids but I can't stop looking at your shaky mic lol
@supafly8 17 күн бұрын
yeah how about CMG which also recently split
@YuraSavenko 18 күн бұрын
how about options trading. buying 1 call option/selling 1 put option when the stock price is 120 is way more affordable than when the price is 1200. That way the company increases the options traded.
@sekhar9699 18 күн бұрын
The stock split will cause the option contract price to decrease, which is the reason why stock prices increase as more people can afford them.
@etkeros 19 күн бұрын
FaradayFuture? Any comment on their multiple stock splits ;)
@chinyerejoseph8004 15 күн бұрын
Hit 200k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started with 14k in last month 2024 ......
@user-jj4kl4ir4y 15 күн бұрын
I'm 37 and have been looking for ways to be successful, please how??
@chinyerejoseph8004 15 күн бұрын
Sincerely speaking. I will continue to trade and stick to expert catherine daily signals and guides as long as it works well for me.
@NewWorldDisorderly 11 күн бұрын
@@chinyerejoseph8004 this is most wonderful news. I exclaim emphatically
@weho_brian 9 күн бұрын
it's not the splits, its the share buy backs
@AstaKristjan 11 күн бұрын
I'll just buy these stock and hope they improve my portfolio lol. i've invested around 280k in stocks, but it has not improved more than 5% since i started investing.
@BillAdamson-bp9ff 11 күн бұрын
I had similar experience until i was adviced to invest using an FA, since then things really improved on my portfolio
@veniceblackwood2931 11 күн бұрын
true, my portfolio had a massive crash in 2022, I nearly sold everything and put into cash savings, but i was advised to contact a broker. I followed the brokers instructions closely and my portfolio started to increase by 10% monthly.
@Travesten 18 күн бұрын
Cereno Scientific 1000x soon❤🚀🇸🇪🚀🇸🇪🚀
@realbusines 14 күн бұрын
Where can I buy that
@ahmedrasoul1986 17 күн бұрын
Come to the Saudi market to see how all splits had an incurable negative impact 😂
@TheBooban 17 күн бұрын
Splits only work for mag 7 companies.
@iambryguy4 9 күн бұрын
Man the number of bots here is insane. The funny thing is the people watching this channel religiously would never fall for this kind of crap
@christopherpaul5 9 күн бұрын
Well my formula is simple. Hold cash and wait till the market re-levels so I can make new buys again. Or are there any ways I can avoid a crunch and maximize my savings of $550k? I know election years are positive for the stock market about 90% of the time.
@KevinClarke9 9 күн бұрын
trade the chart, else you'd be waiting a long time! learn how to create a basket of securities like an expert or seek guidance from one
@MarkGrimm8 9 күн бұрын
Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2019, and I return at least $121k ROI, and this does not include capital gain.
@carolpaige2 9 күн бұрын
If you don't mind, how can I reach this advisrr? My retirement portfolio isnt doing greatly.
@MarkGrimm8 9 күн бұрын
My CFA Carol Vivian Constable, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
@carolpaige2 9 күн бұрын
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
@hmuhmunkunkuapua 12 күн бұрын
i will forever be kicking myself for selling nvidia before the 4 to 1 split
@avehein Күн бұрын
I didn’t want to put $1k or more into NvDA but $500 seems fine for a start. E*Trade wont let me buy fractions so after the split I can justify dipping my toes in. It isn’t hard to figure out. The split did boost the value, but so did the speculation on future success. The stock value isn’t real. It’s all baseball cards.
@CharleyHull-dn6nh 19 күн бұрын
I believe that investors should always use their money for investments, especially We'll start to see greater market diversification in 2024. About $350,000 of my funds are intended to be invested in equities over the upcoming year. In 2025, I want to be millionaires.
@PhilipsJameszang 19 күн бұрын
Now that the risk is at an all-time high, maybe you should exercise a bit more patience and come back when the risk has subsided. As an alternative, you can get strategic advice from a qualified financial specialist.
@nonexistent5030 19 күн бұрын
This logic is backwards imo. The companies split BECAUSE THEY ARE DOING WELL. they do so well the stock becomes so inaccessible, so they split the stock. And they just keep doing well so the share price just keeps performing well. What's funny is how Nvidia is using the liquidity from the split to sell their shares because they know this is near the top.
@UltimateGattai 16 күн бұрын
I always see stock splits as a way to raise more money, splitting the stock makes it cheaper for more people to invest.
@timothybancroft6579 19 күн бұрын
I think stock splits unlock value for the average investor and affordability is only a window of undetermined time that closes uncontrolled by unlimited amounts of factors that are unfathomable. I would believe it would in a opposite format @ times😢
@paulevans2246 16 күн бұрын
Not convinced stock splits are the cause. Correlation does not equal causation
@JorgeMota-gx2jx 18 күн бұрын
I need. Some Help ober here with sometimg lake raigh now
@otis3744 18 күн бұрын
its a mentaility issue
@otis3744 18 күн бұрын
no one wants to buy a stock thats 1000 usd but a 100 dollars, that we can do
@allyousaf2712 19 күн бұрын
First Comment - I love your channel ❤
@NewMoneyYouTube 19 күн бұрын
Thanks for tuning in! I appreciate it :)
@egeoncel6379 19 күн бұрын
Dude i like your content but cmon, this is below you. Stock split charts at the start, taking a favorable time frame….
@NewMoneyYouTube 19 күн бұрын
All will be revealed in the video…
@TheBooban 17 күн бұрын
12 mins to explain a simple idea that should take 30 secs.
@michaelwestmoore7129 4 күн бұрын
@@TheBoobanyeah, it I think the “KZfaq algorithm” encourages these types of tactics from content creators. It’s frustrating.
@CryptoChef99 19 күн бұрын
100% We're in a bubble. But, still in an election year run & after that's over or closer to it we'll burst
@shaunjames2221 19 күн бұрын
No chance
@CryptoChef99 19 күн бұрын
@@shaunjames2221 right. It will just keep going up forever
@ASTR0TALKSPHILOSOPHY 19 күн бұрын
Yeah, a stock thar rallied 1000% will NEVER go down.@@shaunjames2221
@joegeezly9613 19 күн бұрын
@@CryptoChef99I hope so 😆😆
@dodiloi 19 күн бұрын
@@CryptoChef99 it goes up forever because of inflation.
@HS-PGA 16 күн бұрын
Flooowwwwwwssssssss
@Pizza-gb1ch 19 күн бұрын
Stock-split phenomenon is nothing new. BuyBacks are the newer thing.
@depreciatingasset 19 күн бұрын
I swear he says words in a wrong way on purpose
@cloudiermonk 19 күн бұрын
It's because you draw in more dumb money... watch out
@jessesantillano9179 19 күн бұрын
Stock Splits are For retail suckers!
@Amwatson801 19 күн бұрын
The problem is that you are all permanently focused on petty issues surrounding the stock price movements of a dozen companies while forgetting to actually invest. These companies are already huge and already trade at 30-50x earnings: you need sustained double digit growth, sustained high margins and sustained idiotik multiples in order to earn a return, which is a whole lot to need. A monkey also agrees that these are great businesses, but a great business and a great investment are not the same thing,
@AusValue 19 күн бұрын
People buy narratives not valuations anymore. They will learn the hard way on the next major correction
@Higuannn 13 күн бұрын
Is stock market actually getting better or is this the regular start of the quarter market manipulation to entice investors? I'm currently sitting on savings and i'm wondering do I invest in company stocks or just buy gold?
@Jaymilnere 13 күн бұрын
The 5 percent fixed incomes are a safe bet. Save your cash for when the market actually shows sign of recovery or better still seek professional help.
@Aurierserge50 13 күн бұрын
@@Jaymilnere Investing Is more than reading quarterly reports. Learnt this from reading Peter Lynch's book. I believe there are people who do this for a living, and I just delegate the task to these professionals. That's how I make money from the market to be honest.
@Higuannn 13 күн бұрын
@@Jaymilnere This wouldn't be the first time i am getting the suggestions to use one, but finding a decent one has been challenging. Do you mind leaving some recommendations?
@Aurierserge50 13 күн бұрын
@@Higuannn I'm not one to give recommendations but The likes of Sharon Crump Cline does a good Job. I've been working with her for years. All the info. you need to set up an appointment is on her web page.
@Higuannn 13 күн бұрын
@@Aurierserge50 I like to give this a try even if my needs are kind of unique and complex. I'll contact her nonetheless, and I hope I'm able to make something out of it
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