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Money Guy Show

Don’t Get Spooked by Market Volatility

Money Guy Show

Brian Preston, CPA, CFP®, PFS and Bo Hanson, CFA, CFP® | Fee-Only Fiduciary Advisors

Education, Retirement, Moneyadvice, Investing, Savingmoney, Personalfinance, Business

4.62.8K Ratings

🗓️ 26 August 2015

⏱️ 55 minutes

🧾️ Download transcript

Summary

Stock Market Market Volatility
This is a special bonus episode of The Money-Guy Show. In light of recent market activity, we're re-releasing a past show that covered the importance of staying rational and understanding what market volatility really means.

Transcript

Click on a timestamp to play from that location

0:00.0

Hey guys, special episode here.

0:02.2

I know it's just kind of a crazy week.

0:05.5

And with so much noise out there in the media.

0:08.2

Remember, a lot of people out there in the financial press,

0:11.6

they get excited when things get wild out there.

0:14.4

And we get that unfortunate side effect

0:17.4

we have of investing in equity investments

0:19.5

as volatility.

0:21.1

I want to give you some peaceful words, calming words,

0:26.5

or words that even give you direction

0:28.7

so that you don't outsmart yourselves.

0:31.4

I also want to tell you one of the things

0:32.8

I think I talk about in the upcoming episode

0:34.4

that we're going to play right after these words.

0:36.4

Remember the pluck effect.

0:38.2

Guys, markets do not recover in a U-shape,

0:42.2

meaning that they don't go down and then drag

0:44.0

on the bottom for years and years and years.

0:46.4

You typically see a pretty dramatic recovery

0:50.2

just as fast as you saw the assets disappear on the downside.

0:54.4

So the part is, if we had a U-shape recovery,

0:57.7

it'd be nice if we could go ahead and sell out time

...

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