Pull Out Money Before The Stock Market Crash?!
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- Опубликовано: 29 сен 2019
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My 401 is up 63.9% from two years ago. Glad I don’t read Forbes magazine.
"If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes." - Warren Buffett
Here's the kicker. When you become more tax efficient with your holdings, the funds grow more forcefully because there's more money that compounds over time. I'm willing to bet $1 that her broker is just what his title suggests: BROKER than you are!
That's because he understood the business cycle. Notice he doesn't say what he does every 7-10 years. Watch Ray Dalio's business cycle video!!!
In less then 10secs .......the 1s have created the most 0s . The most 0s will be left with the mirror looking at the 1 ..
@@SoCalFreelance So true.. Warren is sitting on a record pile of billions in cash that he has been steadily growing. When asked if it's a good idea for the common man to invest in the market right now, he says of course it's a good idea. When asked why hoarding cash, he says for insurance reasons! .. Bunch of baloney, of course he wants you to keep it for years, where do you think your stock market money goes when Warren cashes in at the perfect time?
Go back 20 years. Look how much you would have made with physical gold,lol
Anyone here after the corona virus sell off panic.? Lol
Mandrake ElMago nope, I’m taking the hit & increasing my % to add MORE money. Kmart is running a sale baby, buy buy buy!!
Yup, cashed out 7 weeks back...
I'm buying etfs like crazy right now
Wiped 9 months gains
Yep. Sometimes you have to follow your gut.
This is EXACTLY how people lost their shirts during 2008
And people who stayed in and bought low regained their shirts, plus a whole new wardrobe.
Brunette but was able to buy less because of inflation. But don’t worry you’ll lose the wardrobe in this next recession
Richard Dixon pretty broke. Sitting on 70k no debt right now.
@@jacobmoore7381
Still clueless too
John Swaim maybe 🤙 but at least I’m not investing in a stock market that’s gonna blow like 08 😎
This video is gona be fun to watch in another year 😂
People said this 4 years ago too
Go back and watch financial videos from 2014. Most analysts or gold bugs were calling for a crash since then and pulled out of the property/stock market and been sitting out since
@@learnsomethingneweveryday1539 yeah , accepted FED print 100 billions dollars since 23rd of Sep , so everything are fine. Trade war with China and now EU so it's ok , too . Please keep money in your stocks cause it's all gonna be Alllright...... cause that's what they said about every recession .
@@khanhtranvan8761 I agree it's all brewing up for a crash as it doesn't seem sustainable for much longer. However, it's an optical illusion that you can time the market. Maths don't lie.
*Lets say you get out of S&P 500 1 year before the top. It has a parabolic run up of 25% before the crash. It crashes 40% from the top but you will NOT buy the bottom because it's too scary and advisors will advise "Wait for confirmation that the bear market is over" By the time you are buying back in, market has recovered at least half of what it lost. (REMEMBER YOU DIDNT SELL AT THE TOP)
Factor in fees associated with selling and buying again, tax implications - it isn't worth playing that strategy.
What I do think makes sense:
*Decrease investing amount when market seems overpriced and keep that cash waiting for dips or bear market/ or whatever investing opportunities come your way or you spot an under priced company.
@@learnsomethingneweveryday1539 Yup , i agree with your strategy , i think that's what Warren Buffett doing right now , he's stacking cash waiting for the crash .
I have friends that saw what was happening in '08 and bought everything they could invest in after the fall, they did very very well
I did just that with real estate!
I bought my home on in early 09. And now going to put it for sale tomorrow.
@@supremeleadergeorge1277 do you own another property? I have an investment property and my home, and it would seem a good time to sell but I'd just have to buy something else that's overpriced and ride it down right? Suppose I could ren't but I've got little ones... 🤗
@@stricklandfamily928 No I don't own another property. Im going to cash in and invest very conservatively for the next 1-3 years. I will be renting an apt or even moving in with a freind. Undecided still on that part. I mainly want to go back to school to sharpen my sword in what I currently do and also learn a new fun "trade" or skill such as photography, art/drawing/painting, woodworking or even videography. Now if the economy tanks great ill buy property then if it doesnt which I actually think it wont least not how people are saying, then thats ok too cus I will still keep working hard and learning/growing/investing.
@@supremeleadergeorge1277 Same here, but late 2009. I would put mine up for sale too, if I could find another house in Livonia for a good price.
I like how after watching Dave for lots of hours I’m starting be able to predict what Dave will say.
Various "experts" have been regularly predicting an imminent stock market crash for the past 6+ years.
Because recessions happen every 7 years (on average). Winter is coming, like it does every year.
It will be the most called out recession ever
Oh yea the experts always tell us the recession will happen any moment. They tell us this for years. And then eventually a recession comes and they say Look I was right! Ignoring the previous six years of being wrong.
Amazing what unlimited money printing and 0% interest can do to lengthen a debt fueled recovery. Makes the incoming depression that much worse
@ hellbent What happened to the repo market two weeks ago?
The poor lady in this video being told not to be concerned I feel sorry for.
Hmmm how’s she feeling now?
@@davidhochstetler4068 likely foolish. the SP 500 evaluation has surpassed the entire european and south american markets combined, the majority of gains concentrated in a handful of tech companies. in dollar terms, most of the market is down
Aaron565 lol aka I don’t trust the stock market I like gold cause... no actual reason
I NEED TO GET OUT OF EVERYTHING SOON..
I have stovks in miners but everything will probably go down ,as in 08...gold should hold its value.
This aged like fine wine. Props to Dave
The stock market is like a garden at some point there is a harvest. If the fruit is ripe and winter is coming in a month or two then eat the fruit. if you dont the crop will wither on the vine and you will have to start over.
I'm from the future, TAKE IT OUT!!!!!
LOL
Meh. It only took 3 months to recover most of the market’s value. She’ll be fine.
@@redcomic619 Could've bought back in on the dip though...
The pull out method is never a good method. ;)
Jim Smith workes for me
Lol I also use the pull out methods...so far so good. No kids.
@@bk6572 😂
That’s why I always keep my helmet on
That's how my second child got here...
If anything when the market crashes that’s the best time to buy more stock and invest more in the stock market
DaBoogie sure you do. If the market corrects say 30% that is still less than the tax you would pay in States Like California. Federal long term Capital gains tax is 15%, + the state Tax can bring you over 40%. 401k’s help quite a bit but not always. Or you could move to a state that doesn’t have income tax like Nevada then make a withdrawal when your tax person says it’s okay.
That’s what I’ll do, with my “EXTRA” emergency fund....lol
Yep be greedy buy up while everybody else spooked and panic🤑🤑🤑
@PoopCoin Patrick thats why you also take Daves advise and have a good emergency fund for 6 or so months
@DaBoogie I have been in the market since 1985,I have done very well by staying in and not selling during bad news or market drops.
This is the future calling: “don’t call dave ramsey today!”
Brian Cameron i agree with you on this one, Dave should not give investment advice and should stick to getting people out of debt
@@reneperez6690 what are you talking about, the stock always goes up in the long term
Rene Perez market literally came back, lol
What are you talking about? He never said it wouldn’t go down. He said if it’s a long term investment you shouldn’t sell it because it will recover. Just like it does during every crash. Every crash has a boon afterwards and millionaires are made because instead of selling they bought more when it was low.
Watching this after the stock market has crashed. Anybody else?
Nobody needs to risk their money,... now or ever,... There are new upgrades now available,... ! Ask me how
:(
@@MrOhReally ,.... I can help you stop the bleeding and even potentially recover some of what you lost, Private Message Me
im watching after the markets come back
Leah Garcia why would anyone take financial advice from somebody in RUclips comments. Get a job bum
I guess the young stupid broker was right. I hope she's okay, it's going to be a rough ride for her 250k in savings.
Bonkers she’ll lose big initially put she’ll gain more in the long run.
Exactly,...! And by the way, she has probably down to under $200,000.00 and still dropping ,..... If you know this woman please have her call me so I can help understand about how to have 401k / IRA Stock Market Protection!
And now if she held on she’s doing better than ever. I swear most people are clueless about the market
Broker's probably got a boat payment coming up.
Why would he tell her to get out then, he would lose his fee, and his commission from the Fund he recommended
@@HansMcGruber he'll sell her a bond fund and make another commission.
Her broker may have been trying to prepare his clients for the volatility so that they aren't as likely to panic. I think Dave has great saving advice, but I don't trust his investing advice. He makes significant money from recommending money managers to his listeners. It's a conflict of interest and makes me suspicious when he seems to suggest firing her broker.
That find isn't "almost 80 years old," it's 85. I love that one.
Dave is 59. He is invested in the idea that the economy will go up and down like a rollercoaster, so steady continuing investment and reinvestment is always the best strategy. This indeed has proven to work well, most of the time. However,occasionally the economy goes bust too. Great depression anyone? How about one or more depressions that the US had early in our history? Think it can't happen again? In the entirety of human history, there has never been any degree of financial irresponsibility that remotely approaches whats in the world today. The value of your money has a shelflife. It can erode in purchasing power over time, or it can disappear in one day. Don't put all your eggs in one basket!
For him it doesn't matter he has real estate income to offset the losses in stock when the market goes down. 250k was too much for her to be in a high income fund.
@Rich 91 you do realize you have to survive first right?
@Rich 91 you do realize unemployment was up to 25% during the great depression
John Doe Real estate income won’t be there when the market goes down. Rents will plummet and people won’t have money to pay their rent.
@@JustinBlazzzee really so where will they live? I'll bet you 1k rent isnt going down ever. America is turning into a renters market.
1. People will either move to more affordable areas.
2. The government will step in and start paying more peoples rent.
Those are the options rent will never go down.
"boy I was careful with that" 🤣🤣
Boy was she right!! 😬
You are very good advisor.
watch billionaires behavior over the next year do what they do, they are in direct talks with the heads of the central banks
Warren is sat on cash
Wait for negative interest rates to hit the American economy LOLOLOL
If you have access to any billionaires portfolio information then you know a lot more than anyone else
Yep they are stock piling 💰 💵 which would make us think that might be a good idea
Billionares live three days ahead of us
Pulled my money out a week ago. Will put it back in when it makes sense. DAVE is a stubborn old man who thinks he can never be wrong
Melatainment - pulled what money out?
Never ever sell based on fear. Wait until it crashes and then buy a ton. It will always recover and if you sell at the wrong time you will lose a ton of money. Long term investments should stay put in these situations. People freak out every crash and that’s why they lose money. If you can afford to leave it and buy more, do it.
Some people need money and can’t lose it regardless of situation
Once it goes down, I’m going all in!
NANGSTAGRAM TV have you ever gone all in during a market crash? What’s your concrete plans? Only asking because I think when it happens keeping composure sticking to strategy and knowing when to buy / avg in is going to hard.
Never catch a falling knife. Just steady plodding.
I tend to buy more Coca Cola shares when they take a big dive.
Why not go into government bonds now, before it goes down.. then your bonds will go UP,.. then when you're ready, switch from bonds to whatever discounted stocks you want.. If you have cash that is.. but you won't have your cash sitting around doing nothing until it goes down.
Chris I think that is going to be my strategy also.
Stock market only crashes when everyone panics and pulls out money.
Incorrect
@ uhhhhh........yea...
Or... 2020 hits
Let it crash. I'll buy it up
The value of your account matters most when you need the money....
I’ve cost myself hundreds of thousands of dollars by waiting for this eventual downturn the past 5 years.
I'm so sorry.
Denver Catwoman I’m not sure if this is sarcasm or what, but if it is, we all understand that there are more important things than money. Health and family are more important. But, this is a channel devoted to financial advice so I felt my comment was relevant.
JustinBlazzzee L
1000 NB Still own 6 houses free and clear with no mortgage at 32. W. How about you?
JustinBlazzzee hey mate do you have Instagram I contact you through?
Thank you.
This is not sound advice. He never mentions that the economy died in 2008 and has been surviving of central bank printed money. There is no organic market anymore, it’s mostly central banks, without them, the stock market crashes.
The corporations and companies don’t care, they have bought back their own shares and practically own themselves again.
Who is her broker ? I need me a broker like him.
For real, if you listened to him and cashed out and jumped back in during the bottoms you would of made a nice 500k with that 250 the lady has ahahah
If DR says anything about money, I believe him. His track record speaks for itself. This video made me feel better.
Volatile means up and down, not down
Oh Boy another brilliant piece of advice.
The irony of Dave Ramsey (king critic of debt) praising the stock market propped up by mountains of debt and inflated prices caused by stock buybacks is fascinating
This has been true but in 1929 stocks didn't recover for decades. Not all stocks recover, companies do go to zero. Of the 30 dow stocks from 1929 only GE has not gone to zero...
@Dougie I understand this and can not argue how well it has worked in the time frame that is always cited. I am simply pointing out a timeframe that is always ommitted when selling mutual funds.
If you have money in an index fund that tracks a market (S&P 500), if a company did go to zero...they fall off the index and are replaced with another company.
Vacuum thinking
That was literally 90 years ago...
Sky Country That's why you shouldn't buy individual stocks
So can someone help me...I have 2 RSUs that will vest on 10/15/19 and 1 more that will best in May 2020. What should I do with it? They’re Amazon stocks by the way.
Buy and hold does not mean be lazy... when indicators like historic high p/e tells you it’s probably time to take some profits do it... this does not mean sell everything it means take a few chips off the table so you have cash to buy cheap stocks... I am up 180% for the year I don’t know about all the set it and forget it type people.
Crazy how we're due for a recession and we still haven't recovered from the 2008 crash. Some people say we did recover because of the overall value of the stock market.. but I can say my community where I live absolutely did not recover. It's gotten so bad to the point where people from wealthier areas come down to my community to buy other human beings. This has to stop.
Good point here, The media, Dave and others point to a rising stock market as a sign of economic health....It is not......I do not focus on the stock market, but the BOND market......The Fed, with it's repo program is printing billions out of thin air, to recapitalize the banks because they are insolvent, they are literally doing QE right now......IMO, the bond bubble is HISTORIC and will bring chaos and financial destruction to the world........The stock market is being propped up
by artificial means which are unsustainable....The crisis of 2008 was not solved, but papered over by the Fed bailing out the banks, corporations that should have failed, and insurance companies.......You mention "buy other human beings", for what purpose if I may ask?
@PoopCoin Patrick Absolutely right......If the economy is so good, why did the Fed have to LOWER interest rates twice already, start the repo's , and why aren't the tariffs bringing in billions?(because WE are paying the tariffs, not China)....... More rate cuts are coming, possibly going to zero, even negative, which is absurd.......This whole economy is a ticking time bomb....totally unsustainable.......IF the Petro-dollar is no more or US dollar stops being the world reserve currency, IT'S OVER............
@@canadien371 Agree. We did not solve the cause of the 2008 crash, we only put a band-aid and prolonged the inevitable. the next crash will be much worse.
@@canadien371 for nasty inappropriate purporses
Absolutely right.
If id be 60+ id be stressing... since im 26 im not worried one bit.. keep investing 🥳😍💸💸
@Lif3 did you pull your money yet?
impossible to make money, Binary Options would not exist. I understand what you are saying, because 90 % of the people who try out binary options are people with no financial experience, and I am one of those people. BUT as I have tried to learn different strategies looking at market news, you CAN make profit, BUT IT HAPPENS SLOWLY, NOTHING HAPPENS FAST AND YOU NEED TO BE PATIENT
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@Ananda Reyansh I trade with Andrew, He is reliable and better than most account manager who are reckless.
Dave - you’re right...the everything bubble will be just fine lol. I love how he always plugs his “partners”.
Meanwhile Dave’s pulling all his money out of stocks.
Wow! Did Dave tell you this?
he doesn't strike me as the type who has the balls
@@mmabagain
People don't want their speculations to be exposed.
Stupid people are buying into this market. While Jeff Bezos sold $3 Billion of Amazon shares lol. Warren buffett has 100 billion dollars ready to go. C'mon folks, wake up
@@jonnyboy950 and mark cuban. And old rich Europeans
I can't wait for the next Peter Schiff was right video
I've been listening to this guy for decades now and this is the first time I've ever heard him give actual names of funds with ticker symbols.
At mid January 2020, this was excellent advice.
I’m kind of hoping for a recession in 2020 so I can buy up all the stocks that will be undervalued after people panic and I’ll cash out in 2025.
Timing the market right... is fruitful, but super difficult too
PoopCoin Patrick Yep, in my experience, you just have to be diligent and smart and more often than not, you won’t lose.
@PoopCoin Patrick Show me one big investor that got successful from timing the market. Good luck to you, bitter human being :)
@@cherrytung
Most investors just guess, and go by trial and error and only need to end up right *once*
I'm kinda hoping the recession comes in 1-2 years, because I'm currently stocking up a big war chest for when the time does come. Then you get all the deals
Never react with Emotions said by Warren Buffett
Banks pay virtually nothing for interests. Stock market with reliable mutual stocks over 12 yrs are exactly where she needs to have the $. Dave is spot on. Look at 10 yr returns
Three years later and this video is still great advice. Glad it popped up, I’m getting ready to start investing and this was very comforting.
As an investor myself, always split three ways in income real estate, physical gold and 20+ different dividend type of stocks.
Agreed, diversification is the key and that is the bottom line.
Well put sir.
Good luck staying fully invested🥶
This is good advice
I'm new to all this, but chose to listen to the economists. When stocks were climbing this year I was feeling like a fool for having gotten out of the market. But now I can get back in when things hit rock bottom if that is where it goes.
Lifeboat is Gold, invest today!
Yes, thank you!
Just an observation. Can history repeat itself? The stock market peaked in September 1929 at 381 points before the market crashed in October 1929. The Great Depression ensued with the market doing gyrations for years. It took until 1954 for it to get back to 381.
"DIVIDENDS These payouts played a big role in the 1930s. When the Dow hit a low of 41.22 on July 8, 1932, for example, the dividend yield of the overall stock market was close to 14 percent, according to data compiled by Robert J. Shiller, the Yale economics professor.
So ignoring dividends, especially when yields were so rich, also exaggerates the losses of a typical equity investor."
loving the rollercoaster analogy!
Ever seen a kid lose an arm or a head or a leg on a roller coaster? They were never made whole again.
I like how people are like “I’m going to buy when it crashes”. Hope you aren’t thinking your 3K is going to make you tons of money. You still need a lot of money.
Always invest for the long run.
*Don't even bother timing the market* ;)
But this time don't be in the DOW, wait with cash
Cherry Tung - Finance & Fashion Totally Right👍
@@samantha9313 doesn't hurt to start investing, just always keep some cash ready
@@MeltyOppaTW thank you!
I'm guessing the broker wanted the client to know that volatility happens, and that she should stay the course and not panic.
20 year track records for the funds mentioned as of 10/31/19:
Investment Company of America: 6.74% annualized.
American Balanced: 7.70% annualized.
High Income Trust: 5.77% annualized.
Bond Fund of America: 4.20% annualized.
Do like Warren Buffet, keep some cash so you can buy when the market dips.
Keeping cash is never a bad idea. What every money and stock guru will tell you: Only use money you don't really need. And adept a lifestyle where you live under your level.
Just to answer Dave's question:
Investment Company of America: 68 years up. 16 down.
American Balanced: 39 years up. 4 down.
High Income Trust: 24 years up. 6 down.
Bond Fund of America: 40 years up. 4 down
Fact: Stock market will crash over 50% but if ur in it for 10+ years you will be ok, just add to ur position when the correction occurs.
She could be broke or dead within 15 years, not a time to be brave for her.
Conceptually u should move investment to conservative bonds and when market falls move to reputed but higher volatility to gain more units of those funds ..if u were actively trading.... but if ure already in conservative just continue as is
Dave may not have listened closely. The woman was 52, looking to retire at 65, in 13 years. Not 20, 30 or 40.
if it does tank, i'm gona up my investment rate
Gotta love a good sale!
I was thinking the same thing.
Hangfire Unless you get shitcanned from your job
@@richardleston5237 work harder than your peers and youll never have to worry. Good workers typically move up the ladder or survive. Its the lazy who get cut first
Alexander De Nijs The OP says he’s going to wait until the market tanks and buy a bunch of equities at the bottom.
He forgets the uncertainty of the 07-08 collapse. Statements like his are easy after a decade long bull market.
Easy for Dave to say since he’s sitting on years of gains. If you’re deploying new capital, never buy at all time highs.
you do realize that no one knows what the all time high is until after the fact? Hindsight analysis doesn't do anything.
IlCodylI Exactly. What Mark said is what I’ve been saying since 2014. I was 27 and sitting on a good amount of cash. Fast forward 5 years, I’m 32 and instead of that cash being 50-75% higher, it’s been in a measly money market account making 2% and basically is still the same. Is this current high the actual high? I don’t know. But I feel like it has to be close. This can’t go on much longer.
JustinBlazzzee I pulled out luckily right before the top in early 2018 and have been sitting out for a few years saying I would redeploy all my money once I graduated and got a job. Now that I just got hired 3 weeks ago, it’s time to buy back in and of course we’re at current all time highs. Human emotions and fear would have you think to just wait for a correction before buying back in. It’s always more appetizing to try to time the market and that’s why most people sit out and wait. I’m going to be investing it all in the next couple of weeks and if it crashes immediately after then so what? As long as I am not planning on selling, and then invest part of every single paycheck on the way down I will be fine. If people can’t handle fluctuations in price and are scared of losing money you’re in the wrong game to begin with. The market hit a new all time high in April of 2013 and just like today people could have said “that was a horrible time to buy, never buy in at the all time high”. And of course 6.5 years later still no meaningful correction. Yes it’s boring and scary to not time the market but for 95% of people it’s the smart decision.
IlCodylI You make a lot of good points but what leaves me worried is that we are approaching the 10th year of a bull market. How much longer can it go? It was one thing when I said that after 4 or 5 years. But we are a decade into it. You’re 100% right that buy and hold for decades will always work, but it works even better when you buy low.
JustinBlazzzee if I had to guess a major correction should happen in the next 2-4 years. But I’m not going to wait 2-4 years for a possibility just to be looking back in 2022 saying the same thing we’re saying today. In reality, it goes on as long as there are more buyers than sellers. I look at investing differently than most people. Buy stocks/indexes at a price that you are comfortable with. If you are okay with the price then buy it and hold forever. What other people are paying for that same stock in the next 5-10 years shouldn’t matter because you got it at the price you we’re comfortable paying. It’s no different than buying a bag of chips at 5 dollars and then they go on sale a week later down to only 2 dollars for a bag. Yes you can sit there and say “wow if only I waited I could have got this bag of chips for 60% off”! But at the end of the day you have to make sure you’re willing to pay the current price of $5 per bag of chips, and if you’re satisfied with that, any future price fluctuations shouldn’t matter. Investing outside of a 401k takes extreme emotional discipline and patience. if you don’t think you have what it takes to ride out the nastiest of corrections than your money is better off in the savings account it’s currently in because you would most likely sell everything after a 40+% correction. But do not misunderstand me I am not down playing how difficult it is to do what I’m saying.
If she had gotten out she would have missed out on the big 2019 4th quarter gains.
Very smart!
I agree with a lot that Dave says, but this, I don't agree with. If you're looking at the big pic, it's a no brainer that our market is inflated & the air is going to come out eventually.
Yep
Even if it is, there is not a glass ceiling today that won't be broken through in 20 years when she will need the money.
Certainly important to start preparing for the market crash!
Dave go tell this to an investment advisor. When 2008 happened, investment advisors were being "killed" by irrate clients. "I pay you guys a 1% fee so I don't lose money in the markets!" "The market dropped 40%, what the heck am I paying your investment fees for@!!! Investment firms: "Let's send all of our clients a newsletter to expect extreme stock market volatility, in case the stock market tanks again, so they don't blame us again!!"
No way, life is a roller coaster. Really! Best news ever...
@PoopCoin Patrick ?
Ugh ... Dave Ramsey is going to feel so bad when he realizes the magnitude of the next crash that's coming at us.
Oh I hope so..Got some cash ..I am looking for some deals
If the dollar has lost 96% since 1913 .Is it possible it could loose 4% more ? I think yes ,in next recession.
schniamhy .....it’s gonna be a whole lot worse this time.....certainly we’re heading for a global depression and There’s too much gambling , deceit , corruption and risk taking for any investment to be safe . It will be a bitter experience to lose your retirement savings and investments , but sadly until the fraud , greed , gambling and corruption are reigned in , that’s just what will keep happening. ....also when banks are in negative interest territory , nothing but trouble lies ahead and people lose confidence and trust in the system . In credit freezes, it can be better having cash outside of the system to weather the storm , but we all have differing circumstances. When times are difficult many people head for the traditional safe haven of tangible gold and silver and that seems to be the trend right now , along with the gamble of crypto currencies.
Do you think you're the first person in the history of the market to say what you just said? Turns out the market goes up.
He won't. He'll blame her because she didn't educate herself, and/or hire one of his "vetted" advisors.
The point of investing is behavior and attitude.. God is a perfect father and compound interest is undefeated
Personally, I’m selling my us stocks. Waiting for a 50% sale. Recessions have not been outlawed and we are due. I don’t feel like loosing half my money and for that reason I’m out.
Abwj1002 yea the s&p 500 isn’t going to give a 50% discount. Maybe QQQ will.
Jordan Roig Why not? It came incredibly close in both the .com crash and the 08 crash. Both times just 1 year after the crash the S&P was down almost 50%.
Just Doit Money market. Inflation problem fixed.
Sure, EVENTUALLY you'll recover from the massive losses incurred by the coming crash, but how much better to get out, and pile back in when prices are on the floor!
Web Surfer exactly
1. No-one can predict the future.
2. I personally think we are going to have a recession and a stock market fall in the next two years.
3. It is better, IMHO, to be out of the market wishing you were in it than in the market and wishing you were not.
4. I've kept some stocks, but about 70% cash.
5. I will buy back in when the market falls 30+ %.
6. If the market doesn't fall, oh well - I'll take the increase in the 30% stocks I still hold.
Good strategy, where do you park the cash ?
70% in cash? “Stable Price” Bonds? Few sources indicates a debt crisis among federal and CORPORATE bonds.. Wondering what’d be the best choice to park the cash until the worst has past.. tks for any suggestion!
Have fun with that bond fund when the uncontrolled selloff comes. Negative rate are coming.
You are an idiot. Bonds go up when rates fall.
Hi! Is it a normal thing to find a stock that goes up if the market goes down, and goes down if the market goes up? If only I could learn what the market is going to do that day lol. Thanks!
This guy would have gone bankrupt in 08 if the Fed hadn’t bailed him out. I agree with his idea of getting out of debt, but the fact that he doesn’t see anything wrong with the economy is delusional.
He doesn't have any debt. How do you figure he'd go bankrupt...?
@@James-vj5hz I agree. I guess I should have said that he would have lost a majority of his wealth, if that is any better. If the Fed hadn't stepped in and bailed out the economy in 08, stocks would have kept crashing, housing would have kept crashing, and the bond market would have imploded. The asset class that would have gained is gold, and he doesn't believe in gold. I know you're going to say, "how do you know that would have happened?" Well, because that is what was happening until the Fed stepped in. Also, that is what is going to happen in the near future. The fact that Dave thinks it's okay for the Fed and central banks to keep interest rates at 0% for almost ten years, print trillions upon trillions of fiat currency world wide, and call that a recovery is insane. The Fed can't normalize interest rates to even 5% without the economy imploding. That is why they are lowering interest rates back to 0% or NEGATIVE, and beginning QE Quantitative Easing to infinity. Peter Schiff is the man to listen to.
Are you seriously saying the Fed bailed out Dave Ramsey in 2008?
It's not delusion, it's disinformation.
My great-great grandfather lost everything in 1929 because he took everything out during the crash. Adjusting for inflation he lost about $65million USD. Ride out the crashes, it will always recover.
Guy got money
This video didn’t age well. This lady was 65 so probably a decent time for her to get out.
wasn't she 52?
With the issues going on I would be concerned about the next few years. Yes watch this next year. Many people got hurt in 2008 and they did not jump off the roller coaster
Just keep it in and continue to make regular contributions. It goes up and down from day to day, or week to week, but it ALWAYS goes up over the long term.
From 1873 to present, every period of 20 years has a positive change.
Very bad advices, no knowledge of history, monetary policy and economics
typical boomer
Magoo Gouzoo agreed, this video is the perfect example as to why PASSIVE investment vehicles such as mutual funds and index funds are so dangerous in my opinion. Because there is no thought involved. People like this woman literally turn their brains off to what’s happening economically and with monetary policy. She literally has no clue as to the current economic conditions. She probably has no idea how the Federal Reserve suppressing interests rates is creating a bubble in the market. No idea how corporations are artificially inflating their own stock through corporate buybacks.
Dave’s advice here is, in my opinion, dangerous and reckless. The stock market is in the largest bubble in the history of the U.S. and he’s telling her to pay no attention to that. If the market crashes by 50 percent it would have to climb 100% for her to recover her losses.
Lambs to the slaughter, but honestly I can’t really feel bad for people like this if you are willing to put 250k into an investment vehicle without researching anything on your own and coming to your own conclusion then quite frankly you may deserve to lose on the other side of that bet.
@@frankwhite5862 Charlie Munger says that if you aren't able to take a 50% hit on your portfolio two or three times a century then you shouldn't be investing.
Poor lady asking that idiot
Historically the stock market has recovered to higher levels 100% of the time
The only people that die in a burning building are the people that dont get out.
good one
If she's thinking of getting out it's best to do it at all time highs. If she's scared now, wait until the market drops 30%. She's not comfortable with her holdings so most likely shes going to sell to stop the pain.
When the big crash happened don’t go around crying like little babies because talking big now cry later is what history shows
Actually history shows a rather steady rise of the market.
No what history shows is we are near all time highs. With meh numbers. 😂😂
I'm 21 in college with just under $1000 invested and when the stock market goes down i'm just going to buy more to lower my price per share in each of my company holdings. Just stick with it and be consistent. Keep investing my friends!
Nope...once this titanic goes down. Thats it. Debt rules, people in power fool you while taking all their money out to buy gold and silver. Unemployment, overspending. You cannot change this generation. Remember the titanic is unsinkable.
Tammacazi10
“Keep investing” says a 21 year old kid in college. 😂 You’re learn one day.
J Smith You'll*
And in 20 years when i'm a millionaire you'll be asking me how I did it. See original response for the answer. Have a pleasant day my friend.
Tammacazi10
You’re assuming I’m poor? I’m a retired Real Estate Developer in San Francisco. My net worth is above average. 😂
J Smith Congradulations, i'm also above average in the investing department as far as college students are concerned. The vast majority of students as well as full time employees are behind me. I appreciate your enthusiasm on the internet but discouraging young investors is quite immature. I'll stick to my investing and grow my wealth thank you.
I don’t always agree with you Dave Ramsey but in this case your advice was spot on! I’m astounded that her broker sent her that article I think the guy is trying to make another commission by moving the funds.
This is exactly why a diversified portfolio is critical regardless of how the market is performing . Those who diversify typically have an option to buy in at lower points by moving their allocated portion from fixed income securities over to stocks when there are serious market fluctuations . Otherwise those so heavily weighted in stocks have not other option but to “ride it out” or “stay the course” while they see their accounts drop 50% in value . Pretty silly. Re-allocate now and buy back in later by dollar cost averaging. don’t think we hit a bottom yet , if you believe that you have some serious blinders on.
I pulled some money off the table I was always told if you need the money in 3 years dont out it I the market
I need her broker’s number, now she wished she’d listened to her broken, lol now her money is stuck.
He is a good Broker!
And now... she'd be right back up and have more value in the account by having left it.
This comment aged like milk
i once read a book on stocks it was super old but forgot the name (its been a while) i just remember reading when the stock market crashed while everyone and there brother was pulling out there was a few that was DUMPING money in and well they they came out really really pretty. same with the housing market. everyone selling like mad dogs while people buying up 40-60k homes that are now 300-600k homes. theres a ton of people that LOVE when the market crashes.
Best thing to do is sell before it crashes, then buy loads when it does crash
I have a life insurance license and I can tell you what that broker is doing. He is attempting to get clients to come in and put their money into something “safer” like an annuity . They will make a commission off the annuity and on top of it they will have you come in every year and tell you what to do with your penalty free. They will essentially have you locked in and make commission off you every year until the annuity matures. At which time they will advise you to do something else that results in their commission.
And that is why you get an advisor in your corner to stop you from crashing.