STOCK MARKET REACHES ANOTHER ALL TIME HIGH | DO THIS NOW

The Stock Market just hit another record high – this is why, what this means for the market, how to invest your money, and how to build wealth long term – Enjoy! Add me on Instagram: GPStephan

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Why the stock market is up:
Today, the company Pfizer announced a breakthrough that, they say, is more than 90% effective in the latest trials. Now, keep in mind – this isn’t the first time a treatment has gone through S-3 trials…and Pfizer is still unsure of how long the protection lasts, so further tests need to be done. HOWEVER…even though there are still questions up in the air and it needs final approval from the FDA…it’s a REALLY good sign…and if it works exactly as described…this will open up a LOT of new doors for the entire economy.

With the news of a potential treatment, the RECOVERY stocks are the ones who have benefited the most…these are the businesses that got hit the hardest because of the shut down, like restaurants, airlines, hotels, the travel industry, or anything involving a physical location.

But, with every winner…is also a loser…companies that dominated the online space, like Zoom, Etsy, Amazon, and Shopify…are all down, because there’s less of a “push” for people to continue using online services. The assumption here is that, once the economy begins to re-open…there could be a big rotation of money moving away from tech, and into “re-opening” stocks and in-person businesses…it’s still too early to tell, although… OVERALL…the market is up MASSIVELY with this news, leading us to hit a BRAND NEW ALL TIME HIGH.

Now, I’ve talked about this before, but it’s worth mentioning again: timing the market is one of the worst things you could do.

Studies have shown that, time and time again…the BEST strategy for investing is to dump your money into the market as soon as you have it, and then…KEEP IT THERE. Vanguard found that, 67% of the time…just dumping your money into the markets will get you a HIGHER RETURN than if you just slowly trickled your money in…otherwise known as “dollar cost averaging.” Even though, sure, there might be a 1-in-3 chance that this is less profitable…you NEVER know what’s in store for the future, and if anyone offers you a 2-in-3 chance of making more money…you should probably take it.

https://static.twentyoverten.com/5980d16bbfb1c93238ad9c24/rJpQmY8o7/Dollar-Cost-Averaging-Just-Means-Taking-Risk-Later-Vanguard.pdf

Second, after you invest your money…just keep it there. Fidelity found that, over 40 years…a $10,000 investment in the SP500 would have grown to $697,000 if you just KEPT THE MONEY INVESTED WITHOUT TOUCHING IT. However, if you missed just the BEST 5 DAYS….over 40 years…your return would diminish by over $265,000.

https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/dont-miss-best-days.pdf

Why Mistiming The Market Can Be Disastrous

That should really go to show you that, STATISTICALLY SPEAKING…if you have money sitting on the sidelines, you’re losing out on the potential for that money to continue growing. And by selling OUT of your investments, or trying to time the market…you risk missing out on those rare BEST DAYS that could severely impact your overall return.

Even the argument “BUT THE MARKET IS AT IT’S ALL TIME HIGH” doesn’t make any sense…because, NATURALLY, the markets will always be hitting new all time highs. There will always be new all time highs time and time again…and, in 30 years from now, I can say with almost 100% certainty…the markets will be significantly higher than they are right now.

For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com

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