How to Invest In This Roller Coaster Market
THE BIG THING I WANT YOU TO KNOW:
The market is unpredictable, and you shouldn’t be watching it to make your financial decisions. We’ll explore a better option… one that watches the market, but is based on elements you can control so you can reach the destination you desire.
Listen to the show with Chris on 95.5 WSB and the Dynamic Money Podcast below or scroll to read the story and takeaways.
If you love roller coasters, then you probably enjoyed the CRAZY ride we went on last week in the market.
Friday the market was down.
Monday the market was down.
Tuesday the market was up again, woo!
Then Wednesday hit…
<cue the scary music sound effect>
The DOW lost 800 points — it was the biggest drop of the year and there was lots of doom and gloom and “recession is coming”.
THEN we gained some ground towards the end of the week and we’re still a little down, but nothing crazy.
So where does that leave us?
(Other than whiplashed and motion sick…)
This week in the market probably left many of you frustrated & battling UNPREDICTABLE changes!
financial decisions based-off the market have worked because we’re sitting on the longest bull market in history… but…
Honestly, it’s been pretty easy to do well in the last ten years.
It would’ve been hard not to do well!
But don’t let that lull you into a sense of thinking you’re an amazing investor because you “really know how to watch the market.” I don’t mean that offensively, but you have to understand that the market is in the longest winning streak it’s ever had, so we’re all up. Your pat on the back shouldn’t be too comforting.
Let me tell you, friends, the best way to be an amazing investor is NOT to be someone who constantly watches the market. There is a better way that I know works despite what the market is doing that I show all my clients is possible to do.
Despite what any headline may say or talking head tries to predict…
The market is and will always be unpredictable.
Last week, how many ‘market experts’ said, “Hey, get ready for next week. We’re going to have the biggest drop of the year.”
If people could predict the market with any level of certainty, wouldn’t it be headline news two days before it happens? But no one knows what is coming or they would print it on build boards screaming: “Market Dropping This Wednesday — Biggest Drop of the Year Expected.”
Sorry. That’s not reality.
But I’ll tell you what is.
we like to believe the predictions and react to be secure
real security is found when your plan doesn’t involve reactive investing moves
We are all looking for a sense of security.
That’s why we keep coming back day after day to watch what’s going on in the market. Isn’t it?
Here’s the problem: you will always be a reactive investor watching the market until you have a better option — and until you stop watching the market, you can’t predict your future. And there’s nothing more dangerous to your investments than that type of plan.
If you are reactive, you’re already behind what’s going on. In other words, if you hear the market is tanking one day and you adjust to that by selling your assets as they are dropping, it’s like selling what you own at garage sale prices.
You haven’t lost money when the market drops, you’ve lost money when you sell your stocks or bonds at a discounted price as the market is dropping. Reactive investing pushes you towards buying and selling at the worst times.
a better way to invest exists and I want everyone of you who is watching the market to read this slowly
chris, how do you recommend we invest in this VOLATILE market?
I want you to have a financial plan based on what you can actually be confident in. Not a day late, not reactive, but secure.
Here are the things you do know:
You know how old you are
You know when you want to retire
You know your income
You know how much savings you have
You know the dreams you have for your future
A (good) financial planner will sit down with you and assess all of these factors to set a risk-level that’s fit just for you. It has nothing to do with what we think the market may or may not do at any given point.
This is why financial planning is so important! It’s ABOVE the market watching.
it’s time to move out from living in the world of the unknown and into what we do know and what we can control.
THEN, when the market drops, you’re already ready!!
Good financial planning has nothing to do with predicting where the market is at it is focused on you and your target in life. And I promise, when you walk out of a financial planning process built on YOU and the future you desire, you won’t even care where the market is at today! Because you’ll already have a plan that’s built around you, for you, and that can handle whatever the market does tomorrow.
That is where our team deeply believes peace happens.
When you’re able to remove yourself from the anxiety of the news cycle, you find hope.
What if you were able to go through this week and not worry about the market going up and down because you already had a plan that was built for it?
Get a plan based on what you know and can control.
Our advice in the aftermath of one of the craziest week isn’t another prediction but a real solution.
Is your go-to roller coaster story experience more positive or negative?
Tell us in the Facebook post above and join the conversation!