Get my 5-day email funnel that generated $400,000 from a single launch

Want an email sales funnel that's already proven to work? Get the entire word-for-word email funnel that generated $400,000 from a single launch and apply it to your own business.

Yes! Send me the funnel now
Start Here: “The Ultimate Guide to Personal Finance”

Oh my god: “A global correction” is underway!

15 Comments- Get free updates of new posts here

0 0

The stock markets dropped a fair amount yesterday and now people are being a little sensationalistic for my tastes. Look at this image from CNN.com last night:

ooh...scary

OH MY GOD!!! WE BETTER DO SOMETHING!! Buy! Sell!! ANYTHING!!

Get a life. All of a sudden, a global correction is underway, but I want to give you some perspective:

First, it’s a 1-day report. When things have gone bad in the past (this year, the last decade, and the last 50 years), they recovered. So if any of you or your parents are thinking of selling your stocks because of a 1-day report, please call me and let me politely educate you about what a stupid decision you have made. Based on a couple of conversations I’ve had this morning already, I might not be a good father when my kids make a mistake.

Anyway, let’s look to see what Warren Buffett says about situations like this week’s market drops. He points out that you should treat good stocks like toothpaste: If its value decreases and you still believe it’s going to be a good investment for the long term, it just went on sale. That’s a reason to be happy, not sad.

“If you expect to be a net saver during the next 5 years, should you hope for a higher or lower stock market during that period? Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall. This reaction makes no sense. Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.”

“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”

“A market downturn, doesn’t bother us. For us and our long term investors, it is an opportunity to increase our ownership of great companies with great management at good prices. Only for short term investors and market timers is a correction not an opportunity.”

Wow. Return to fundamentals? Buy low and hold for many years? Don’t chase the media-induced hype? Who would’ve thought.

0 0

Related Articles

Best travel credit cards from a man who’s traveled to 193 countries

Are you finally ready to book your dream vacation BUT… you want to make sure you get all the rewards ...

Read More

The psychology of breakfast

I got a few emails from people who said, “Dude Ramit, I signed up to learn about business. Can you ...

Read More

15 Comments

0 0
 
  1. But Ramit, I lost 10 dollars yesterday! Oh no, what will I do without those 10 dollars. You told me to invest so I could afford to by a home in a few years, and now I have 10 dollars less than I started with! What the hell were you thinking?!

    Oh, wait for a few days, or even weeks, and the market will recover. Blah Blah compound interested blah blah millions from a few thousand invested blah blah? Oh thats right, relax and buy more stock or mutual fund? Oh okay the world didn’t end. Thank god.

  2. I know more people who have gotten rich due to down markets than up markets.

  3. AAARGH! Everybody panic! It’s the attack of the giant ladyheads!

    … oh… wait… That’s not what this post is about? DOH!

  4. I have a question. I have $10,000 in my Vanguard right now that I will need to liquidate $6000 out of on June 22nd for a downpayment on a house. Should I leave the money in or take it out immediately?

  5. Tanner,

    I assume this is stocks?

    If somebody knew the answer to that question they’d be able to strike it rich. Unfortunately, nobody knows. And if they say they know they’re at best ignorant. At worst lying.

    So the best thing to do is not keep money that needs to be immediately available in stocks.

  6. Long term investing is great. However it takes much intestinal fortitude to watch a portion of your portfolio drop $75000 in a day.

  7. I’d rather invest in a market that gained 10% per year rather than a market that gained 0% per year for the first twenty years and then gained 10% per year after.

  8. Ok, thanks…after losing $1000 in 3-4 days, I took out my money just to be safe so I will have all of my downpayment money…thanks for the tip.

  9. Tanner,

    The person who answered before obviously doesn’t understand what vanguard does. I’m assuming that this is a Vanguard index fund, probably an S&P. There’s no reason not to leave the money in there until you need it. The market has averaged about 6% return per year over the last 30 years, bad times and good included. This little blip will certainly not make enough of a dent to take your $10,000 down to $6,000. There’s no advantage trying to speculate on the next month’s S&P return and with inflation where it is, you will lose value having extra money held as cash. Leave it in there and cash out when you need it.

  10. “Wow. Return to fundamentals? Buy low and hold for many years? Don’t chase the media-induced hype? Who would’ve thought.”

    Your all obviously forgetting one thing. Long term can mean many years. The average human life span is only 70-90 yrs. You may not live long enough to see any profit, or if you do you won’t have as much time to enjoy it.

*