| No. 1: Turn Off Cable News No matter your affiliation, the political talk shows have one goal - to scare you into believing that the other side is going to make your life and the country worse. This won't make you happier. And if you listen to it, it will cost you money. These shows have been scaring the bejesus out of their audiences for a couple of decades now. And the market has gone up an average of 8.2% per year over the past 20 years. That period includes the presidencies of George W. Bush, Barrack Obama, Donald Trump and Joe Biden. You probably were not a fan of at least one of them (maybe more). And though there were certainly bumps in the road and even a crash or two, the market rose throughout that time. Ignore the blowhards who are trying to keep you scared. Instead, invest in American (and global) companies that are actually solving problems for their customers. No. 2: Look at the Data As I mentioned above, this country (and the world) has seen its share of calamities and atrocities over the decades. And yet the market has consistently risen. Of course, it doesn't rise every year. There are bear markets and rough patches fairly regularly. But over time, stocks rise. Since 1922, the market has returned an average of 10.1% per year. That period includes the Great Depression, the Great Recession, World War II, the turmoil of the 1960s, a global pandemic and other very bad times. And despite all of those things, for 100 years, we earned 10% per year on average. No. 3: Listen to Warren Buffett If you don't want to listen to me, listen to the greatest investor of all time. Warren Buffett famously said, "Be fearful when others are greedy and greedy when others are fearful." Investors are very fearful right now, but Buffett is buying stocks, particularly energy stocks. It's usually a very good idea to follow him. Buying stocks now means you'll get decent valuations, strong dividend yields and low prices. And when others finally get greedy, you'll be sitting on some great investments that you added to your portfolio when no one else would touch them. Jump on that wall of worry as it continues to climb higher. Good investing, Marc |
Post a Comment
Post a Comment