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”

“Why would anyone keep investing when the market keeps going lower every day?”

36 Comments- Get free updates of new posts here

2 0

A friend forwarded me these, and I wanted to share them with you. Don’t automatically discount them just because they come from a financial company. These are excellent.

Think carefully about where you want to be 10-20 years from now, investing-wise.

The key takeaways:

  • If you believe the market will recover and grow over the long term, you need to be investing consistently

  • Whether you should be saving or investing depend on the time horizon of your money. If you need your money within the next 5 years (say, for a down payment), you should be saving it in a savings account. This hasn’t changed
  • If you truly believe that the next ten or twenty years will be “different” than history (or, admittedly, the same as the last 10 years) and there will be small, or no, returns, you have a few options: Stop investing, pull all your money out of the market (for some reason, many lay investors believe this is the only option), adjust your asset allocation, or extend the timeline of your dollar-cost averaging (i.e., instead of investing $300/month, invest $100/month)
  • If you believe that the market will recover and grow, keep investing. Feel free to adjust your investing timeline or any of the other factors above. But you recognize the importance of picking up shares consistently, since you can’t time when they’re high or low
  • From my book: “Recently, a group called Dimensional Funds studied the performance of the S&P 500 from January 1970 to December 2006, during which time the annualized return of the market was 11.1%. They also noted something amazing: Of those 36 years from 1970 to 1986, if you missed the 25 days when the stock market performed the best, your return would have dropped from 11.1% to 7.6%, a crippling difference.

    Now, if only we could know the best investing days ahead of time.”

  • If, however, you believe the news about how this time it’s different, you don’t invest, and then wonder why you only have what you managed to save over the next decade or two (say, a few thousand a year), you have nobody to blame but yourself. Our generation will almost certainly become increasingly conservative investors
  • The trick, of course, is that nobody will know for 10-20 years
  • No decision is a decision

amazon-book-small-image

It comes out Monday, March 23rd (2 weeks from now). Pre-order now.

2 0

Related Articles

performanceeval

How to crush your performance improvement plan

There are two types of people who stumble onto this page. Either you love your job and hope to crush ...

Read More
performance

How to turn negative performance review phrases into a 30%+ raise

Here’s a dirty secret about performance reviews your HR department doesn’t want you to know. Any performance review, ...

Read More

36 Comments

2 0
 
  1. If you believe that this current economic environment is some kind of game changer, then just get out of the market all together. I don’t want your paranoid schizo self talking about doom and gloom while I reap the benefits of the biggest discount on my retirement I’ll ever see.

    Every recession brings about fear, and the companies that can make money on your fear will make videos like this.

  2. Ramit, thanks for the data. This is exactly why I continue to invest my money in the market. I can’t wait for the uptick. Patience is key.

    -Nate

  3. “From my book: “Recently, a group called Dimensional Funds studied the performance of the S&P 500 from January 1970 to December 2006, during which time the annualized return of the market was 11.1%. They also noted something amazing: Of those 36 years from 1970 to 1986, if you missed the 25 days when the stock market performed the best, your return would have dropped from 11.1% to 7.6%, a crippling difference.”

    This is an illogical argument. Do you see why?

  4. Ramit, I think this past year has offered one of the best climates for continued investing. Collective fear has hammered the market to discounts we may never see again. I have been heavy long in UYG, UWM and DXO. Both DXO and UYG were under $2/share. I know my view is not for everyone, but I think there is going to be a huge upside.

    Thank you for your excellent post.

  5. I agree that now is a great time to buy. It’s like the market is on a clearance sale. There are many companies out there whose stock value has suffered do to the market slide in general, and not as a direct result of poor business practices or profitability. I feel that it is also a great time to take a few low cost risks if you are a young investor. If you look at the airline sector you’ll notice that almost everything is down largely as a result in decreased travel spending due to the economic situation. Even looking at Ford and maybe GM (if you don’t think they’ll fail), the current cost of stock for those companies vs the potential reward once the economy rebounds is enticing. Especially if one of those companies fails and creates more market share and a stronger foothold for the other.

    It won’t happen overnight, but people who are investing right now stand to make a TON of money if they are in it for the long haul.

    BTW, I really enjoy the site and content (added you to my blogroll), keep up the good work.

  6. Whenever I hear people these days acting like it’s completely stupid to invest in the stock market right now because it’s “obviously going down every day”, I ask them why they aren’t just shorting the whole market. When they stare at me in confusion and ask what a “short” is, I know they have no idea what they are talking about.

    Then again, I also laugh at people saying it’s an “obvious” discount. No one can predict the future. The current price is just the current price, neither a discount or overpriced.

  7. video’s aren’t showing 🙁

  8. A great piece to remind investors that perspective and understanding has to trump emotion if you want to stay on track financially.

  9. I think this is a great time for discount shopping, but I haven’t changed anything regarding dollar-cost-averaging. I’m still investing the same amount each month, and hoping that I’ve picked the right strategy. My horizon is 15-20 years, so I’ll periodically re-evaluate my investment decisions as I grow older.

  10. Ted: Tell us why the argument is illogical — I’m interested to hear. It’s pretty common knowledge that stock market returns are not normal, but have lots of “improbably large” swings.

    Ramit, your comments are spot on in when you qualify them by saying “If you believe … then …” but where do YOU stand?

    I believe that the recovery will come quick. It will come too quickly for most of the cautious investors who will miss some of those huge up-ticks. I think now is the time to put your money at risk — risk of a profit. I’ve moved money out of real estate to increase exposure to stock market.

*