327: Why the Stock Market Should NOT Scare You (Even As It Crashes) w/Brian Feroldi

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.5 • 3K Ratings

🗓️ 15 August 2022

⏱️ 54 minutes

🔗️ Recording | iTunes | RSS

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Summary

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 BiggerPockets Money Facebook Group BiggerPockets Forums Finance Review Guest Onboarding Mindy's Twitter David on BiggerPockets David’s Site From Military to Millionaire Listen to All Your Favorite BiggerPockets Podcasts in One Place Apply to Be a Guest on The Money Show Podcast Talent Search! Subscribe to The “On The Market” YouTube Channel Listen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPockets Check Out Mindy’s 2022 Live Spending Tracker and Budget Why You’re (Probably) Wrong About Prenups Click here to check the full show notes: https://www.biggerpockets.com/blog/money-327 Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Welcome to the Bigger Pockets Money Podcast,
0:02.0	on the 3rd, headed in 27,
0:04.0	where we interview Brian Fareldi and talk about the stock market.
0:08.0	Only information that most people get about the stock market is what?
0:12.0	Price, that's it! That's the only information that people have access to.
0:16.0	That's the only thing that 99% of people look at and focus on when they're talking about the stock market.
0:22.0	What is hidden behind that, if you dig into details a little bit more,
0:26.0	behind the stock market are those businesses and those businesses are generating profits.
0:32.0	If you look over long stretches of time,
0:34.0	the undeniable trend of those business profits are up into the right.
0:38.0	That is the reason why the stock market has always recovered from previous crashes,
0:46.0	is that business profits eventually recover and that leads to higher prices.
0:50.0	Hello, hello, hello, my name is Mindy Jensit and joining me today is my
0:54.0	Everyday as a party co-host, David Paray.
0:58.0	I'm glad somebody thinks I'm an optimist.
1:00.0	I feel like the world probably sees another side of me half the time,
1:04.0	but I'd like to think I'm an eternal optimist and it probably bites me in the butt
1:10.0	more than it helps anything.
1:12.0	Everyday's a party with David Paray.
1:14.0	Hip hip Paray!
1:16.0	David and I are here to make financial and appendants less scary,
1:19.0	less just for somebody else.
	...

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