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The Ramsey Show Highlights

Should You Change Your Investing Habits During Election Seasons?

The Ramsey Show Highlights

Ramsey Network

Investing, Self-improvement, Education, Business

4.5840 Ratings

🗓️ 4 September 2024

⏱️ 4 minutes

🧾️ Download transcript

Summary

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Transcript

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0:00.0

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0:06.4

All right, can we get some questions from our YouTube audience? And here's a few that kind of

0:11.0

are in the same bucket. And they are all around this sort of election season, politics,

0:15.3

the economy, investing. What do I do with my money? So here's a few. And we'll kind of pull back

0:20.3

the curtain on these. Should we

0:21.3

dial back on investing during a weak economy to have more cash on hand? Speaking from a lower

0:25.9

middle class perspective that does own a home and currently no debt except a car payment. Should we

0:32.0

dial back investing? Yes, I would dial back investing, but not because of economic reasons.

0:36.3

It's because you have a car payment that's holding you back and you need to pay that off in case there's a weak economy. I want you to owe nobody anything. So that's part of it. But would I change my investing habits because of any economic factors? Absolutely not. I invest the same when the market is doing great, when the

0:54.8

market's doing poorly, and you can call it dollar cost averaging, which is a simple way to say,

0:59.8

you invest the same amount every month no matter what's happening. Those are the people that win can,

1:04.8

not the people who jump in and out as they feel the market's going to do or it just did and I'm

1:09.7

going to pull the money, I'll put it back in.

1:11.5

Those people always lose in the end.

1:13.1

Well, I want to call out what happened this week.

1:15.2

So we had a massive, massive shakeup in the stock market on Monday of this week.

1:22.0

And then here we are.

1:23.5

We're crawling back.

1:24.3

In fact, I'll pull it up while we're talking. But had you got out after the thousand point loss, it was over a trillion dollars lost in one day. Had you gotten out, you wouldn't

1:33.7

be benefiting from the rebate. You wouldn't have the recovery. That's right. And you would have got

1:37.0

in too late. So that's part of it. You can pull up the numbers. I'm going to move on to this next question, which is related. Should I wait to invest more until after the election?

1:46.5

Again, what we've seen, there's no history that shows us that if you invest the day after

...

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