327: Why the Stock Market Should NOT Scare You (Even As It Crashes) w/Brian Feroldi
A stock market crash looks like bad news. The world is ending and everything is down. There won’t be any more profits to take…until the stock market gets back on track, which it always does. We’re not kidding—take a look at the past hundred years of total stock market performance and you’ll see something not-so-shocking. The stock market always finds a way to head back up, even after massive crashes like the great depression and great recession.
You don't need to trust David and Mindy on this, instead, trust a stock investing expert like Brian Feroldi. Brian wrote the book on why the stock market always goes up, appropriately titled, Why Does The Stock Market Go Up?: Everything You Should Have Been Taught About Investing In School, But Weren't. Brian uses this book to educate, inform, and enhance investors’ abilities to invest without stress, headache, or anxiety about future prices.
In this episode, Brian demystifies the calculations behind investing in the stock market. From price to earnings ratios to company valuations, and why individual stock picking only makes sense if you’re the right type of person. He also hints at a “multimillion-dollar mistake” some investors are making when investing for retirement. Simply hearing his warning could save you millions of dollars in the future!
In This Episode We Cover
Why stock market crashes shouldn’t scare the average investor
What causes the stock market to go up in the long-term, even with short-term dips
Price to earnings ratios explained and using them to value companies before you buy
How long you should hold stocks and why consistent trading could cost you more than you think
The 4% rule and how the gold standard of retirement calculations is holding up in 2022
Avoiding the “multimillion-dollar mistake” many investors are making
And So Much More!
Links from the Show
Click here to check the full show notes: https://www.biggerpockets.com/blog/money-327
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