Today I reveal something that will forever transform the way you think about stockmarkets!
This will probably blow your mind …
150 years of data reveals that markets have NEVER permanently lost money – always bouncing back to make new gains, whatever has happened.
Key idea: Volatility has NEVER meant permanent loss – it was always your opportunity
Getting this was a massive a-ha moment which has proved to be a huge lightbulb moment..
Something that allows me to be financially independent – with my capital working for me so i don’t have to.
Importantly, it shows the value of something we focus on closely inside the investment academy – namely, Pound-Cost-Averaging.
The evidence behind that aha moment …
The table below shows all the uncertainties that caused a market correction of >5% in the US (S&P500 index, 2009-22).
We saw recession concerns, wars, pandemics, interest rate fears, worries about inflation, debt crises … you name it, we had it!
Doesn’t this list look worrying?
Well, let’s view those same events on a chart to put things into perspective. All those “losses” are shown as red dots in the chart below.
During the whole period, the market rose by 615% (or 16% pa), including dividends.
For the patient investor, those were highly profitable “loss-making” uncertainties ..
As Warren Buffett says, “The stockmarket is a device that transfers wealth from the impatient to the patient”
My key message: Don’t panic, stay diversified. That helps you buy when stocks are on sale.
Over the long term, stocks have returned 8-10% pa (using data going back to 1871).
That makes stocks a passive, wealth compounding machine.
Time IN the markets beats TIMING the markets. Invest, don’t Trade
How to work this to your advantage?
A simple process called “Pound Cost Averaging” (PCA) that helps you buy more when stocks are on sale. In the Investment Academy we teach you the step-by-step process to properly set up PCA to suit your own risk profile.
In the Investment Academy we show case-studies to see how well PCA works. This includes during one of the biggest market corrections, the Covid crash. You’ll be surprised to see how a crash like that can be highly profitable by employing PCA – click here to see the results.
Always Remember:
- Time in the Markets always beats timing the markets
- Stay Diversified
- Minimise those leakages: Fees, Inflation, and Taxes
- Financial Markets are a great source of recurring income
- ETFs, Balanced Funds and Options achieve all the above
- Being educated helps you outperform 99% of the population
… to ensure your investments work for YOUR financial freedom (not someone else’s)
And …
For more guidance, our Investment Academy will help you implement all of this in a step-by-step way.
Thousands of people have learnt how to diversify and pound-cost-average into low-cost, set-and-forget ETFs & Funds for inflation-beating growth. And Options to create recurring income.
Click here to learn about our Investment Academy
Finally …
– Don’t take the above as advice as it may not apply to you personally
– Your Capital is at Risk
– You may not be covered by the FSCS
– Anything mentioned in a podcast or in a previous article was valid at that time and may not continue to be now
