The Largest Wealth Transfer Has Begun | How To NOT Lose Money

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First, there’s ALWAYS going to be a reason not to invest.
When I first started buying real estate in 2011, for example…the overall housing market had ALREADY declined 50%, and I was buying properties for less than 20% of their appraised value just a few years prior….BUT, I was told that I should wait a little longer, because “Shadow Inventory” was about to be unleashed on the market – but, guess what? That shadow inventory never came, the housing market started to recover, and I’m glad I didn’t listen to them.

Second, Investing Isn’t A Game.
I hate to say it, but – unless you’re a personal finance nerd who has fun tracking their expenses on Mint.com to see how much money you can save… investing is BORING. At a certain point, you have to remember: if you are trying to BEAT THE MARKET AVERAGE…you’re either taking a carefully crafted risk…or, you’re gambling.

Third, overconfidence will DESTROY your portfolio.
From everything I have ever witnessed…the MOMENT you think you’re smarter than the market and have it “all figured out”…you’ve lost. Because of that, it’s best to recognize that…the LESS YOU KNOW, the BETTER YOU WILL DO…because, you won’t overcomplicate the process or take necessary risk.

Fourth, a market drop is PROBABLY going to be worse than you expect.
GENERALLY…the market bottom takes place at absolute investor capitulation, when all faith is lost, and people think the economy is forever finished. This was the case back in 2020, in 2010, and…I’m sure, 2001…even though I was too young to remember. Every generation will have its own “this time is different” moment that comes out of nowhere…and, it’s important to REALIZE that something can always get worse than you expect.

And fifth, good financial habits should be practiced in BOTH GOOD AND BAD MARKETS.
Even though now is a pretty good time to work some extra hours, cut back on unnecessary spending, hone your skills, and take on a side hustle…ideally, you should ALWAYS be doing that and making the most of your time, regardless of how the stock market trades.

Plus, sixth…it was found that “Half of the S&P 500 Index’s strongest days in the last 20 years occurred during a bear market, and another 34% of the market’s best days took place in the first two months of a bull market—before it was clear a bull market had begun.”

This is important because, if you just missed out on the the top 10 strongest days over 5 years…your overall return drops from 15%…to 3.75%…especially when the BEST DAYS come right after THE WORST.

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