A Lesson From Mark Zuckerberg

[View this email in your browser]( It's the weekend so I'll make this quick, but Mark Zuckerberg has left us a reminder after his most recent earnings debacle. Because what Mark Zuckerberg failed to realize, which you all already know to be true, is that there are two kinds of markets. Easing markets... And tightening markets... In easing markets, interest rates remain low and the money supply increases almost daily. During this time, which began in 2009 but Facebook didn't become public until 2012, Facebook stock went from as low as $19 to as high as $378 on September 10, 2021. Then what happened? The day after Thanksgiving 2021, the Fed came out and said, "yeah well it turns out this whole inflation thing isn't transitory so yeah parties over, we are going to have to raise rates and shrink the money supply...sorry" (as Jay Powell shrugged his shoulders). In a tightening market, interest rates go up and the money supply goes down almost daily. During this time, which let's say began the day after Thanksgiving, November 26, 2021. Facebook was trading for $333 on that day. Today, it's $99, down 70%...in 11 months. What you already know, that Mark Zuckerberg was clueless about, is that there are two types of markets. The stocks which benefit the most from easing, just using common sense, are the stocks that benefit the least from tightening. Just in the past 12 months... Facebook is down 74% and lost 7 years of gains Nvidia is down 59% and now lower than before COVID Amazon is down 45% and this morning wasn't worth $1 trillion anymore Netflix is down 57% and was at one point down 75% So...are interest rates staying low and the money supply going higher? Cool. Welcome to an easing market. Trade accordingly. Are interest rates going up and the money supply going lower? Cool. Welcome to a tightening market. Trade accordingly. Stay small and win more trades, Steven STONY BROOK SECURITIES LLC IS A PUBLISHER AND DOES NOT OFFER TRADING ADVICE OR RECOMMENDATIONS. ALL INFORMATION IS PROVIDED FOR EDUCATIONAL PURPOSES ONLY AND NOT AN OFFER OR A RECOMMENDATION TO TRADE FUTURES CONTRACTS, STOCKS, OPTIONS OR FOREX. GOVERNMENT REGULATIONS REQUIRE DISCLOSURE OF THE FACT THAT WHILE THE TRADING IDEAS AND TRADING METHODS SHOWN ON THIS WEBSITE MAY HAVE WORKED IN THE PAST; BUT PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. WHILE THERE IS A POTENTIAL FOR PROFITS THERE IS ALSO A HUGE RISK OF LOSS. A LOSS INCURRED IN CONNECTION WITH TRADING FUTURES CONTRACTS, STOCKS, OPTIONS OR FOREX CAN BE SIGNIFICANT. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION SINCE ALL SPECULATIVE TRADING IS INHERENTLY RISKY AND SHOULD ONLY BE UNDERTAKEN BY INDIVIDUALS WITH ADEQUATE RISK CAPITAL. AN INVESTOR COULD POTENTIALLY LOSE ALL OR MORE THAN THE INITIAL INVESTMENT. [FULL INVESTMENT RISK DISCLOSURE]( Copyright © 2022 Stonybrooksecurities LLC, All rights reserved. Want to change how you receive these emails? You can [update your preferences]( or [unsubscribe from this list](. Questions? Contact support@stonybrooksecurities.com