It is no secret that the stock market has been a bumpy road in recent weeks. Any media channel you tune to will highlight the volatile performance of the S&P and Dow Jones. Headlines like, “Dow Plunges More Than 650 Points as Apple Flashes Warning Signs” are quickly followed by, “Stocks Surge After Blowout Jobs Report.” For investors, the undulating market performance can be nauseating.
As we traverse what is, most likely, a bear market, we want to make sure that our Money Guy Show fans and Abound Wealth clients don’t make short-term decisions that can derail long-term financial goals. Therefore, be sure to tune in to this week’s episode to find out what to do if a bear market attacks.
In today’s episode, we cover the facts and data about market performance that helps put all the headlines into perspective and can help you sleep easier at night. Equip yourself with the knowledge that can prevent you from making irrational, short-term decisions that could derail your retirement.
Here’s what you’ll find out in this week’s installment of The Money Guy Show:
- What the most financially successful people have that less financially successful people don’t (according to research conducted by Charles Schwab)
- Why planning is so critical to achieving any goal, financial and otherwise
- How to avoid “herd mentality” after listening to the news and financial pundits that can stir investor fears
- Why trying to time the market is never the smart play, especially in times of volatility
- Data that shows that missing the 5, 10, 30, and 50 biggest gain days would lower your total return by approximately 35%, 52%, 81%, and 91%, respectively. (Fidelity Investments)
- How the average investor is rewarded for staying the course and remaining invested
- The tried and true sound advice from Warren Buffett
- The truth about financial market recoveries and how fast they actually occur
- Time-tested advice from Brian Preston during previous down markets of 2002 and 2009… how accurate was his advice? Very.
- Why the average investor is lousy at investing, according to DALBAR’s most recent QAIB (Quantitative Analysis of Investor Behavior) research
- Why it’s so difficult for the average investor to observe the golden rule of investing, “Buy low and sell high”
- How you can turn fear into a positive opportunity to re-evaluate your financial life
- 5 healthy ways you can deal with financial uncertainty
Resources from this Episode
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U.S. stocks post worst 10-day start to a year in history (MarketWatch article from 2016)
- Intra-year volatility chart (2017) (source: FactSet, Standard & Poor’s, J.P. Morgan Asset Management)
- Carl Richards graphic (source: Behavior Gap)
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