Why you shouldn't care if the Stock Market Crashes in 2018

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

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