193 | Long-Term Investing: Why the Market Always Goes Up

ChooseFI | Financial Independence Podcast

Jonathan Mendonsa & Brad Barrett | Choose FI Media, Inc

Careers, Investing, Business

4.8 • 5.2K Ratings

🗓️ 15 April 2020

⏱️ 25 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Most market predictions are wrong — yet investors keep letting them derail their financial plans. Jl Collins's insights remind us that while market downturns occur, the historical trend leans towards consistent growth over time. Investors should focus on developing a robust financial plan, primarily based on their time horizon, rather than reacting emotionally to sensational news or predictions. Key Topics Discussed Community Highlights [00:04:25] Brad shares a community event where families showcased artwork in a neighborhood art walk. Financial Predictions [00:04:59] How short-term market noise can distract from long-term goals. Market Noise [00:10:04] The danger of reacting to emotional volatility during market fluctuations. Investment Strategies [00:15:01] Establishing a financial plan based on a long-term perspective. Actionable Advice [00:23:41] Using strategies like dollar cost averaging to mitigate market volatility. Key Insights Cultivate a long-term mindset and understand your investment time horizon. [00:12:22] Historically, markets have shown a consistent upward trend. [00:18:05] Avoid making financial decisions during moments of emotional volatility. [00:15:08] Investing during downturns can lead to significant long-term gains. [00:19:56] Establish your financial plan and remain committed to it. [00:15:01] Action Items Create your investor policy statement to guide your long-term investment strategy. [00:18:25] Consider dollar cost averaging to mitigate the impact of market volatility. [00:19:49] Focus on your financial policy statement to guide investment decisions rather than succumbing to emotional reactions. [00:15:01] Related Resources CIT Bank: https://choosefi.com/cit (for high yield savings accounts) [00:23:55] M1 Finance: https://choosefi.com/m1 (preferred robo advisor) [00:24:14] ▶ Listen Next: Ep. 194 — The Role of Bonds in Your Investment Portfolio | Essential Listening

Transcript

Click on a timestamp to play from that location

0:00.0	Hello, everyone. Welcome back. We're going to dive into this title. Admittedly, the title,
0:12.0	a little bit clickbait. The market always goes up a little bit of an homage to Jail Collins
0:16.9	chapter in his book. And yes, clickbaity, but you click through. You're here excited to share
0:22.2	the content. I think the content we're going to be talking about today is going to be very valuable.
0:25.2	And to help me with this, I have my co-host Brad here with me today. How you doing, buddy?
0:28.5	Hey, Jonathan, I am doing quite well. Yeah, it's another nice fun week here at our
0:34.9	accidental home school world. And yeah, just kind of doing our thing. We had a nice
0:40.6	cross-fit workout this morning. And Laura actually cut my hair this weekend, which I said we talked
0:47.3	about this about 10 days ago in the podcast. I thought it was going to be last weekend, but it happened
0:51.1	this weekend. It went rather well. Yeah, I gotta say, man, it looks good. It looks good. And you're
0:56.1	growing a beard too. I see here. What does this quarantine beard? Yeah, I mean, it's so funny.
1:00.4	I've never grown a beard in my entire life. So I figured why not experiment, right? I mean,
1:05.7	now's the time. If it looks horrific, nobody's going to see me anyway, frankly. So, uh, yeah,
1:10.3	it's kind of cool. And you know, I have to say with this whole haircut thing, we bought these
1:15.2	clippers or whatever on Amazon for, I don't know, $35.40. And I don't think I'm ever going to
1:20.9	go on and get a haircut ever again. I think this is for life now. I know. It's hard to go back.
1:25.7	I want to get something that works. Which to any barbers or hairstylists in the, uh,
1:31.9	in the audience, I apologize, but, but yeah, I mean, it's actually really
1:35.2	conreting. It's a one-time cost. I'm going to save 20 bucks every month. And I don't have to wait
1:39.7	until it looks scraggly and awful. Laura can just cut my hair every, you know, two weeks or so. So,
1:44.8	yeah, it's actually a net positive. It's the time, dude. It's just the time commitment. That's the
1:49.0	part that for me, I was like, all right, I'm all in on this. MK, how are you doing? How are things going
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Jonathan Mendonsa & Brad Barrett | Choose FI Media, Inc, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Jonathan Mendonsa & Brad Barrett | Choose FI Media, Inc and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.