Stock Market History: A Crash Course For Investors Pt 2 @investsensibly

Stock Market History“Part 3 of an eight-part series on the lessons to learn from stock market history explains why investors need to stay calm when, inevitably, markets turn volatile.”

Part 3 Stay Calm http://youtu.be/oy8XVpFbbdo There is a direct mathematical link between risk and expected return. Investors are always emotional during bad times. Panicking is the wrong thing to do. Paraphrasing: Looking at the last biggest peaks, it takes on average under 100 days to return to the long term average – to get half way back, on average 11 days. By the time you adjust to what you think is happening – it’s too late.

“Part 4 of an eight-part series on the lessons to learn from stock market history explains that although it’s very tempting to try to time the market, in fact it’s virtually impossible to do it successfully. Far better than focusing on short-term ups and downs is to invest for the long term. In other words, it’s not TIMING the market, but TIME IN the market, that really counts.”

Part 4 Forget Timing http://youtu.be/2e-S7GPlu3s Market timing is pointless and costly – hindsight bias is not prediction. {We can’t predict what OTHER people are going to do in the markets.}

 

All 8 Parts.

I will post 4 segments with two of Sensible Investing’s Parts each.

 

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