Why this expert is saying, "buy the fear."
Category
🛠️
LifestyleTranscript
00:00I would say take a hard look at your allocation
00:03and how much you have in stocks.
00:04If you're 100% in the stock market,
00:07you have an opportunity right now to reduce that
00:09if you're nervous and if you can't sleep at night.
00:11I think sleeping at night is the number one factor
00:14in terms of how are you invested.
00:16You should be able to sleep at night
00:17and not be overly concerned about your investment.
00:19So if you're 100% in the market,
00:21maybe you ought to go to 80 or 70% or something like that.
00:24And if you've got excess cash on hand
00:26or other capital to invest,
00:28when the market descends,
00:30which it may do over the next nine to 12 months,
00:33I think that's a high likelihood with how far we come
00:37and how highly priced most stocks are,
00:41buy more, get back in the market.
00:43So you wanna buy fear and sell greed.
00:46And right now we've got a lot of fear
00:48and it's getting more and more fearful.
00:50So take advantage of that if you're an investor
00:52and buy more when you have the opportunity.
00:54But don't be in a hurry to do that, be very patient.
00:57These things take time to play out.
00:59Bear markets, fortunately,
01:01are a lot shorter than bull markets,
01:03but they do take some time to play out.
01:05They take at least nine to 30 months to play out.
01:09So you've got plenty of time to assess this.
01:11So be patient, make good decisions
01:14and be objective and unemotional
01:17on how you make your investment decision-making.
01:19Most people are very emotional
01:20when it comes to investing, that's the wrong way to be.