This is why a stock market crash shouldn’t matter and why you shouldn’t worry or panic sell. According to research and statistics, doing THIS will actually leave you with MORE money than if you try to time the market. Enjoy! Snapchat/Instagram: GPStephan
Stock Market Game - Post your results below!
https://qz.com/487013/this-game-will-show-you-just-how-foolish-it-is-to-sell-stocks-right-now/
Frankly, if you started investing anytime after 2010, all you’ve seen is the market going up. And up. And up. We’ve seen an incredible bull market over the last 8 years so if you’ve been investing for less than that, you’ve never really seen an extended downtown and experienced what that’s like to take a loss.
Second, is that unless you plan on selling, price fluctuations make zero difference. It doesn’t matter. It’s irrelevant. It’s short sighted to point to short term fluctuations in price to determine if something was a good investment or not. Unless your entire goal was to buy and sell in a few weeks or month, the price at that time doesn’t impact you one bit. Instead, the price that matters is what it’ll be by the time you need that money.
Every market is cyclical and there will be a time when the markets go down and you see some losses for an extended period of time… It’s totally normal. It’s not a time for you to regret buying in or wishing you would’ve bought the dip. We haven’t seen many losses in the last 8 years, but there have been MANY extended periods of losses and recessions throughout the market’s existence.
Also, the market just doesn’t move up a set amount every year. For instance, I often mention that the SP500 index has historically returned about 7-8% annually after inflation…this doesn’t mean that it returns that same amount every year. We’ll have bull runs and bear markets…it’s just part of investing.
Statistically, it’s shown that market timing rarely ever works - it’s impossible to know exactly when the market will drop and how low it’ll go, and when the bottom hits to buy back in.
Studies by Brad Barber and Terrance Odean find that individual investors experience reduced returns with their stock trading accounts, with increased active trading a key reason in lowering returns. Examining 66,465 US household trading accounts over the 1991 – 1996 period, Barber and Odean find that the average household account earned an annual return of 16.4% over the period, compared to the 17.9% market return. Those households which traded most earned an annual return of 11.4%. They’ve also determined less than 1% of households were able to reliably predict market cycles between 1992-2006.
http://faculty.haas.berkeley.edu/odean/papers%20current%20versions/behavior%20of%20individual%20investors.pdf
Now speaking of risk and all-time highs in the market, what about a large upfront lump sum investment NOW, or slowly putting it in the market over time?
Charles Shchwab ran the numbers from 1993-2012 for each investment strategy.
If you start with $2000 per year available at the beginning of each year, and bought at the YTD low every year, this resulted in $87,004.
If you just invest immediately as soon as you have it, you’d have $81,650.
If you invested $2000 equally every month over the course of the year, you’d have $79,510
If you had bad timing and bought at the YTD high, you’d have $72,487.
And if you had cash investments, you’d be left with $51,291.
https://www.schwab.com/resource-center/insights/content/does-market-timing-work
The study concludes that the most reliable investment method has always been to buy immediately, and hold. Do not try to time the markets. Also according to research conducted by Charles Schwab Company in 2012, between 1926 and 2011, a 20-year holding period never produced a negative result! SO HODL!
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3
Stock Market Game - Post your results below!
https://qz.com/487013/this-game-will-show-you-just-how-foolish-it-is-to-sell-stocks-right-now/
Frankly, if you started investing anytime after 2010, all you’ve seen is the market going up. And up. And up. We’ve seen an incredible bull market over the last 8 years so if you’ve been investing for less than that, you’ve never really seen an extended downtown and experienced what that’s like to take a loss.
Second, is that unless you plan on selling, price fluctuations make zero difference. It doesn’t matter. It’s irrelevant. It’s short sighted to point to short term fluctuations in price to determine if something was a good investment or not. Unless your entire goal was to buy and sell in a few weeks or month, the price at that time doesn’t impact you one bit. Instead, the price that matters is what it’ll be by the time you need that money.
Every market is cyclical and there will be a time when the markets go down and you see some losses for an extended period of time… It’s totally normal. It’s not a time for you to regret buying in or wishing you would’ve bought the dip. We haven’t seen many losses in the last 8 years, but there have been MANY extended periods of losses and recessions throughout the market’s existence.
Also, the market just doesn’t move up a set amount every year. For instance, I often mention that the SP500 index has historically returned about 7-8% annually after inflation…this doesn’t mean that it returns that same amount every year. We’ll have bull runs and bear markets…it’s just part of investing.
Statistically, it’s shown that market timing rarely ever works - it’s impossible to know exactly when the market will drop and how low it’ll go, and when the bottom hits to buy back in.
Studies by Brad Barber and Terrance Odean find that individual investors experience reduced returns with their stock trading accounts, with increased active trading a key reason in lowering returns. Examining 66,465 US household trading accounts over the 1991 – 1996 period, Barber and Odean find that the average household account earned an annual return of 16.4% over the period, compared to the 17.9% market return. Those households which traded most earned an annual return of 11.4%. They’ve also determined less than 1% of households were able to reliably predict market cycles between 1992-2006.
http://faculty.haas.berkeley.edu/odean/papers%20current%20versions/behavior%20of%20individual%20investors.pdf
Now speaking of risk and all-time highs in the market, what about a large upfront lump sum investment NOW, or slowly putting it in the market over time?
Charles Shchwab ran the numbers from 1993-2012 for each investment strategy.
If you start with $2000 per year available at the beginning of each year, and bought at the YTD low every year, this resulted in $87,004.
If you just invest immediately as soon as you have it, you’d have $81,650.
If you invested $2000 equally every month over the course of the year, you’d have $79,510
If you had bad timing and bought at the YTD high, you’d have $72,487.
And if you had cash investments, you’d be left with $51,291.
https://www.schwab.com/resource-center/insights/content/does-market-timing-work
The study concludes that the most reliable investment method has always been to buy immediately, and hold. Do not try to time the markets. Also according to research conducted by Charles Schwab Company in 2012, between 1926 and 2011, a 20-year holding period never produced a negative result! SO HODL!
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3
My toxic trait is wanting to buy more when it drops 😅
First time playing i lost almost 2k, second time i didnt do anything and i gained 33k, third time i sold and bought at the very beggining and gained 947$ more than if i wouldnt have done anything, so i think i will stay on buying as soon as i can, and holding as long as i can
lmao well this aged well
How much of that 2018 bitcoin did you grab?
Lol in 2021 BTCUSD is at 50k lol
Awesome video Graham I just got into investing and your videos have been very helpful!
I like this video, specially now people are more expose to investing apps ads some stocks might almost never go down lol
My results: I matched the market. I didn't sell since in many videos you've said to buy and hold. But I didn't understand what I was looking at. The spike seems like I should've lost something.
grate video! my results: The $10,000 you invested turned into $23,601. If you hadn't made any trades you would have made $2,961 more—leaving an ending balance of $26,562. At the time you reinvested, your trade had cost you only $1,259 but it ended up costing you $1,703 more because of the compounded gains you missed.
Hey, al of you from 2 years ago. You guys should invest in Tesla and bitcoin. Just trust me. Good luck!
just watch this video todayn2020, u were right from 2 yrs ago
I love crashes as everything is so cheap to buy.
$24,666
If anything when something like the SP 500 crashes, you should get excited and buy as much as possible! Buffett has been saying this for years.
If anything when something like the SP 500 crashes, you should get excited and buy as much as possible! Buffett has been saying this for years.
The problem with investing is that most people don't have the patience to wait 20 years to see a return on a large investment!. In 2000, after the dot-com crash the stocks didn't recover until 2008 and then crashed again during the real-estate crisis which didn't recover until 2013! So someone who bought stocks in 2000 would have to wait 13 years to see any increase! Unless you're investing for retirement, don't expect to put money in the market and make a profit quickly. You may have to wait 20 years to see any returns!
But isn't dollar cost averaging ( 79510) "safer" according to this?. You get just a little bit lower than the immediate invest (81004) but alot more than risking to go in at a bad timing (72487) . In this case i'd rather miss out on some money than risk to lose a whole lot of money. What do you guys think?.
Is it a waste of money to get a used luxury car when you’re able to afford it? Is there a good and bad way to buy?
"The $10,000 you invested turned into $11,275. If you hadn't made any trades you would have made $1,694 less—leaving an ending balance of $9,581. You took a risk and it worked out, but there's no guarantee you could do it again. Why don't you try?" I am happy with this result.
Where can I find more about the stock market? Because I don’t understand how it works
Oh, almighty YouTube algorithm give Graham more views with this comment!
You beat the market!
The $10,000 you invested turned into $27,706. If you hadn't made any trades you would have made $334 less—leaving an ending balance of $27,372. You took a risk and it worked out, but there's no guarantee you could do it again. Why don't you try?
Awesome video and amazing channel Graham! I am so grateful to have found your channel, and you have yourself a new subscriber! Thank you for all that you do. This is life-changing stuff right here!
Great vid
I wasn't going to smash that like button but then Graham said it was the very BEST thing I could POSSIBLY do. I have received a nearly 22% return on my likes so far! 😎🤑💪🏠🏡🏘️💰
The $10,000 you invested turned into $45,750. If you hadn't made any trades you would have made $8,711 less—leaving an ending balance of $37,040. You took a risk and it worked out, but there's no guarantee you could do it again. Why don't you try?
I'm 17, turned 10k into 31k in the game!!
The $10,000 you invested turned into $25,624. If you hadn't made any trades you would have made $5,408 less—leaving an ending balance of $20,216. You took a risk and it worked out, but there's no guarantee you could do it again. Why don't you try?
It takes balls at this time about when to pull the trigger and buy and hold.
Y'all rich. Let me kick it with y'all.
If it goes down, should i wait so i buy some on lower price?. Instead of buying some right now?
More and more people keep pointing to an upcoming stock market crash. I think that will lead to the next cryptocurrency bull market and will prove some of the concepts and technology.
High interest savings account if you might need the money in the next 5 years. Lol
Have you looked at what the banks are offering for a savings, money market or CD. Puts everything else you said into question.