Do This When The Stock Market Crashes Even More

In this video, I’m going to show you what to do when the stock market crashes, even more, to help prevent you from doing really dumb things with your money invested in the stock market when things get really really bad.

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Disclaimer: This video is for entertainment purposes only. Everyone's situation is different so do your own research before making any decisions with your money. If you need help then contact a Certified Financial Fiduciary before trying anything that is mentioned in this video. I prefer a Fiduciary financial advisor that charges an hourly fee as opposed to an ongoing fee based on a % of your portfolio. Always remember that incentives determine the type of advice they give you so one that charges an hourly fee is less likely to be problematic.

1. There Are No Free Rides
To make money investing, you’re going to have to accept some level of risk. This means that when you put money into the stock market, it has the potential to lose value…, especially in the short term. What you invest in, and your portfolio allocation will determine the level of risk you’re taking on as well. If you put 100% of your money into 1 stock then your risk level is extremely high. If that bet paid off then you’d be handsomely rewarded with outsized returns.

2. When In Doubt Zoom Out
Adjusting your time frame is an easy way to prevent yourself from losing money by selling when your stocks are down. Keep in mind that losing money on paper is completely different from actually losing money when you sell while the market is down. I know it feels real because you’re seeing a loss of 10’s of thousands of dollars, but it’s basically just monopoly money until you sell. When the market is tanking, the motto I find helpful is “when in doubt, zoom out”. For the boomer passive index fund investors out there like me, we can look at something like the S&P 500 and take note of what is happening in the short term AND in the long term.

3. Don’t do something, just stand there
But to truly benefit from the rise in the stock market over time, you need to be able to hang on really really tight even when things get very very ugly out there. The rule of “don’t just do something, stand there”, even applies to when times are good and you see people around you making money off very speculative investments.

4. The Stock Market Goes Down Even When It Goes Up
Over the 40 year period of 1980 to 2020, the S&P 500 saw a double-digit Intra year drop 21 of those years. To put it simply- the stock market seeing a negative return at least once, most likely multiple times per year is completely normal.

5. If In Accumulation Phase This Is Great News
The stock market crashing is one of the best-case scenarios for anyone in the accumulation phase of investing, but terrifying for anyone just about to retire. When the market is tanking, everything is on sale and it’s a quick way to scoop up some of those stocks or index funds you like for a lower price.

6. Review If Your Current Investing Plan Makes Sense
If you’re ever freaking out about seeing your investments tank then it might be time to review HOW you’re investing your money. Great investing has less to do with your actions when the market is going up, and more to do with how you react when the market is going down.

[JarradMorrow]

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[mrkirankkc]

Why does this guy only have 76 k subscribers when some people who only brag about how wealthy they are have more than a million subscribers!! Let's make him famous!!!

[anash]

Red= Buy at discount
Green = reinvest dividend
Ready to retire= cash out & walk into the sunset ✌🏾

[jesuslives]

My strategy is invest regularly in stocks (index), no matter what. But if I see red, or better yet, a bear market, I get excited and invest MORE. Then when I'm 5-10 years away from retirement, I'll start investing in Bonds as well. I'd love to know your thoughts.

[dominichoward]

This was needed and timely... respect and appreciate what you do

[Cormac_YT]

Its all monopoly money till you sell by in big downs, when i doubt zoom out your in it for the ling term 10+ years ride out the volatility

[realmoneystrategies]

VTI is overweight US stocks - stick with the international weighted market cap by country and go to VT

[HH-gnqt]

Time in versus timing. Lump sum over DCA. The best time to invest is when you have the money. Low cost Index ETFs. I think if you can follow these rules, most individual investors will do fine.

[cueoneful]

Excellent Advice...!! We'll Stay The Staying In The Market For Life.

[dmsoundcollective]

I just started watching this show recently. It's really great ;)
My wife and I are getting into investing long-term later in life. I'm holding on to the idea of better late than never. Going with the three-fund portfolio in M1 Finance and are 401k's at work... let's see what I can do in 16 years

[Skyhook]

i have fidelity zero total stock market fund fzrox and i try to invest as much as i can i know compared to vti it cant compare but its still something i believe in

[HotelBravo]

You’ve become one of my favorite econ/investment channels very quickly. Keep up the great stuff. Your breakdown of the HSA was 👌🏼

[DebtFreeDee]

Great reminder about this not being a savings acct 💯 super informative vid!

[OnCashFlow]

I've been so immersed in stock market investing for my entire adult life that I forget how most people don't understand these concepts. Thanks for making this!

[crackercookiecreammango]

Impatient people's money goes to patient people 's account. - Warren buffet. So stay in the market . Never leave . Nobody know when is actually bottom .

[bryanwhite]

Dollar cost averaging in when I get paid no matter what. 👍

[Steve-wzpz]

Home prices are a little different, in-so-far as you are not drawing down your home to live on month-to-month.

[mybyrd]

Great video, very timely, even I understand I should do what you said, sometimes, I want to do the opposite emotionally, especially recently, thank you for making this video, which is very helpful for me not to act on my emotions.

[Sgtmusic]

Dude This was so Awesome, you are wise beyond your years. I was actually laughing so hard by the time your video was over. Most of the investment videos I watch scare me and confuse me. I feel so much more enlightened after hearing you speak. Thank you so much. I needed this as I am trying not to look at my portfolio these days. As a military guy, I don't have a lot to invest but you give me confidence in what I have done with the little I have has been right. I will definitely be back and suggest that everyone subscribes to your channel. Besides I love doggies. Hi, Molly whos a good doggie. LOL Awesome work. by Sgtmusic

[auricgoldfinger]

Heh I invested in GE since the 90’s. Bought a Tesla in 2014, even visited the factory in Palo Alto in 2011. But never bought the stock. Go figure. Another great running man video!