Investing In a Volatile Market – Episode 200

May 13, 2020

Why is it that when a consumer item like a new phone is on sale, we pounce, but when the stock market is on sale, we run? Buying and holding are both far more difficult to do in a volatile market for most investors. And when we see terms like ‘bear market’ and ‘recession’ in the headlines, it makes it even harder for many of us to continue to invest. But what is important to remember is that buying into this market volatility is the source of future returns. The overall American stock market has returned roughly 9.7% over the past 90 years. And those 90 years have included difficult events like wars, depressions, deflation, and various politicians. So while it might feel a lot safer to not invest at all, know that American capitalism has continued to produce results for decades on end despite real challenges. Investing in an economic tailspin, although it feels a bit counterintuitive, is the best thing you could be doing over the long-term. Not investing in the stock market during these times is a common investor mistake that’s regretted later in life.

Here’s that article in Consumer Reports on how to avoid Facebook messenger scams. And we mentioned Ben Carlson’s approach towards investing these days- here’s his plan. ALso check out our full post on preparing for a recession!

During this episode we enjoyed an Athena Paradiso by Creature Comforts! And as we’ve ramped up the podcast with an additional Friday episode every week, we could really use your help to spread the word- let friends and family know about How to Money! Hit the share button, subscribe if you’re not already a regular, and give us a quick review in Apple Podcasts or wherever you get your podcasts. Help us to spread the word to get more people doing smart things with their money in these difficult times!

Best friends out!

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