Started late in life in investing in my 40s, Self taught ,No Brokers just me And i had to lose some Money on Speculative Plays to understand and appreciate how Dividend investing, Compound interest , And Price Appreciation can give a guy like me A chance at a comfortable life 20 Years from now. That's when Money means the Most those retirement Years. Live Life , Vacations, And have the flexibility to do mostly anything. Love these Videos!
I also agree with you. This was a really good and balanced segment. He took time to dish out valuable information for ordinary folks thinking of starting to invest. I usually watch him for entertainment for the most part.
I think it is good to show those that are unfamiliar but interested what can happen if you just do something when it comes to investing in the stock market.
If I am not mistaken, regarding index funds and ETF's , excluding interests and dividend, there is no compounding effect unless you harvest the gain and reinvest it. Otherwise, you are just riding it up and riding it down.
No expert but I think real estate may compete with stocks, especially if doing rentals/flips. However, it is more hands on than simply putting money in a stock. For that reason, it may not be for someone already too busy.
Go to Etrade or Scott Trade or Vanguard or Fidelity and open an account. They all have research tools, Google and Yahoo have them too. Buy a couple books by Peter Lynch or John Bogle. Look on youtube for videos by Dave Ramsey.
Gotta admit that Cramer is the most decent guy on CNBC. He admits that Mad Money should be a small part of your portfolio. He actually gives good advice.
Cramer's correct especially if you start at a young age with a 401k and keep contributing.. but I also believe in real estate, income property such as a multi-family house. My two family is paid for and taking in $1700 per month. And eventually when I'm around 70 I will sell the house and Bank 250,000
Better yet, cash out that house at 3.25 and buy three or four houses with that money, and rent all four. You'll have four houses when your 70, not one.
Hmm always good to diversify into other things, note the money you make from lending etc. is taxed as normal income. Another avenue, if your looking for high dividends there are some beast REITS with very high dividiends/ IRM, GEO, O, not bad. Note- they are also taxed differently/higher. Depends on what your looking to do, the market is a buffet-lots of options if you do your research. -Cheers
My dad knew a commodities trader who made 5 million in 1980 and put it into 15% 30 year treasuries. If he sold those in 1985, he wouldve tripled his money. The dream retirement trade.
Barney VTI (total stock market fund) and VOO (S&P 500) are extremely similar and both great choices. The only difference is that VTI includes all the small cap companies, and this actually contributes historically to additional growth, so VTI (total stock market) actually performs slightly better than VOO (S&P 500). I basically max out my Roth IRA with all VTI
$$$ I read that each year over the past 10 years when the stock market when up 15 pct, Bitcoin went up 1300 percent. So that’s the best performing asset class isn’t it ?
To double your money in 7 years you need annual 10% compounded return on your investment (i.e. S&P 500 levels of return). If your only making 4 or 5 % it takes a lot, lot longer.
It's called the Rule of 72. Divide the interest (return) rate into 72, and that is how many years it will take to double your investment. 6% interest = 12 years. 10% = 7.2 years. 12% = 6 years.
Cramer is really smart and know lots of stuff but it is our President who is the billionaire financial genius. It is our great President who has created the greatest economy in history. If you want to make big money just buy stock because our great President makes sure stocks will keep making all time new highs as long as he’s president. Trump 2020 and forever !
Rule of 72 requires 10% avg return to double in 7.2 years. I do really well and the market is up but you cannot count on that for 7 years let alone every 7 years. Get real.
@@rickybobby7276 this is true but we should not be investing based solely on the advice of the people on tv. We should read and learn to look at stocks or stick to index funds and ETFs
...and...WELLS FARGO...& ...(BAC)...BankOfAmerica...Two of BIGGEST ...crooKs...out...there...!?...p.s.- you just want piece of that ...pie...!?...or someONE ELSE said...piece of The ...ROCK...!!! ???
Actually no Einstein never said that nor would he have cause he famously is on film saying he was “terrible at math” so he had trouble doing compound interest calculations
What AVERAGE 22 year old has 10k to put into an SP500 index fund? The AVERAGE American can't cover a 400 dollar emergency, let alone a 22 year old investing 10k.
I agree. Most kids that aren't born with a silver spoon in their mouth can't even afford college at 22 let alone have $10k laying around to invest in the market. I think using a 30 year old would be a better example.
So invest whatever you have. You can set up an account with Vanguard or Fidelity and invest a set amount of money each month. You might need $1000-$3000 to get started, although I thought I heard that they were doing away with that. Start small, start early. The sooner you start, the more time you have to double your money (and then double it again).
bodie is an example an illustration but you can invest in a mutual fund that pays a dividend every month reinvest the dividend and contribute 100 dls every month plus the dividend and sure you accumulate wealth that way too also most or all brokerage houses do not charge commission any more you can buy lets say a bank stock every time you get paid and start that way so if you are young and broke im sure you can at least invest 30 or 40 dls to buy one share every time you get paid
Average college grad from 2018 came out with a 49k starting salary. That person has 10k to invest. It might not be throwaway money, might have to get there a paycheck at a time over the year, and they might have to sacrifice some other things but then you have to ask is X today worth 400k later and most of the time the answer will be no.
No, it will double in 7.2 years. If you got a 6% return it would double in 12 years. A 9% return would double in 8 years. It's called The Rule of 72. Divide 72 by your rate of return and that will tell you how long it will take to double your money. In Cramer's scenario, the fund would double 5.5 times (40 years divided by 7.2 years = 5.55555). $10,000 --> $20,000 --> $40,000 --> $80,000 --> $160,000 --> $320,000 --> $480,000. That's why time and rate of return are so important. If you can get to that fifth, six, seventh doubling, you start talking about some real money. So start early, invest as much as you can, and get the best rate of return possible. And he is talking about an index fund, which is made of a whole sector of stocks; or a mutual fund, which is also made up of a bunch of stocks, just not necessarily all from the same sector. I don't think you can depend on any one stock to double every 7 years, decade after decade.
Buy your kids a Roth IRA when they are 1 year old, and fund it every year for 10 years, their retirement will be guaranteed. This should be how we reform Social Security.
@@damondiehl5637 The fundamental principle is correct though. Start investing for your kids when when they're born at the latest. Teach them about it when they're old enough to understand it. Stick it in some sort of trust so they can't touch it until they're old enough to have some sense. Generational wealth only takes one generation deciding to make the sacrifice for their progeny.
And when it's all over bitcoin will be worth less than yesterday's diapers. It's speculated up "800,000%" by gamblers and speculators betting on an "asset" that has no inherent value and was created by some mystery man claiming to be from Japan. Gold is better, but still is a static asset with a value based only on emotion. But at least you can make gold jewelry out of gold regardless of its value. When bitcoin collapses with every other crypto, people will realize it became nothing and was nothing the entire time.
Eagle One. A one hundred dollar bill is actually a piece of paper worth nothing except what we agree upon. Same with crypto. Interesting you seem to know more about crypto than JP Morgan and other heavy hitters that are now investing in crypto as part of their portfolio, good for you.
@@marticimus The hundred dollar bill's value is determined by the regulation of the federal reserve and treasury of the united states and carries with it the backing of the world's largest and most powerful/influential economy. The dollar is a piece of the united states. You and I can't say from now on the hundred dollar bill is now worth $150 because we feel like it, but we can with crypto currency. Because while the fiat currencies are backed by governments and their regulated departments managing it, the value of crypto currencies are based ENTIRELY on how happy or sad people are on any given day. And apparently I know as much as visa and mastercard and ebay about crypto because they figured this out and crypto is already ending as those companies are dumping facebook's crypto as a currency to use, the libra or whatever it was called. Bitcoin and the rest of them will hold hands jumping off the same cliff, too.
Eagle One ok, but doesn't the dollar have risk of devaluation, diluting etc by printing more money. So it's value can be manipulated by many factors just like crypto, correct? And of course visa , mc etc doesn't like it because it competes, correct? What say you about my original point of some very smart companies adding huge chunks of crypto to portfolio, please address.
@@marticimus Well any asset's market price and actual value will fluctuate, no different than crypto. The actual spending power of it can fluctuate but so do stocks and bonds and gold and bitcoin. The difference is why. With a dollar, the value and market value are the same, it's a fiat currency. You'd have to be bonkers to buy my current issue $10 bill if I offer it to you for $17. However with crypto, you can try to sell me a bitcoin for $10 (market value) and say I bet it's gonna be worth $17 next week (speculated to be an 'actual' value). A dollar will be worth a dollar today and a dollar tomorrow. That's up to the government to manage. Once again, bitcoin's value is based on gamblers speculating and throwing money into something that only has value because people think it does. If a lot of the same people in bitcoin today decided to just pull out, it would lose massive value. If people decide to stop accepting it as payment, it loses massive value. How can that be done to the dollar? Also there's only one dollar, and anyone can start a cryptocurrency. If people decided bitcoin is over and now seashells are money seashells would go up 800,000% in 'value' and people would trade them around no different. The dollar can't just be dropped like that, it's government backed. Crypto is an imaginary money with zero real value, and that's gonna become more clear as people drop it like libra was tossed in the toilet. As for why the "smart companies" are adding crypto to their portfolios, I don't know how they can make such massive mistakes. But a lot of smart people do really dumb things. People invested billions into the dotcom bubble and lost it all buying IPOs of companies valued over a billion dollars each - and the company had no earnings or negative returns. People bought stocks with massive amounts of borrowed money in the 20's and lost it all gambling in stocks. Smart people including...say...ALMOST EVERY bank and financial institution was involved in the housing bubble which almost crashed the global financial system into the dark ages? Just because a lot of people do something doesn't make it right. It goes back to what we heard in school, ya know. If all our friends jumped off a cliff would we do it too... I hope you don't have a stake in crypto, definitely not long term at least. It's possible it'll go up during this volatility we have today but long term it's going to be z-e-r-o.
Compounding in investments is 100% a total & complete LIE! No investments deliver compound interest - they appreciate or they deliver cash flow or both - this is just a bs line
What on earth are you talking about? If you buy stocks that pay dividends and enroll in their DRIP programs, you get compounding interest out of them. I have three times more stocks than I initially bought because of dividends and DRIP programs.
@@welovelibraries4556 Well, okay, you don't gain "interest" on stocks. But that's splitting hairs. Compound interest, compound returns, it all works the same. You plow your returns right back into your investment, and you wind up with rewards on top of your rewards.
This is not a very smart idea. Precious metal mining stocks actually tank during a recession. Kinross Gold Company and Gold Fields which are medium and large-cap mining companies fell by over 50% during the last recession. If you're going to diversify into metals during a recession a fund that holds gold such as Ishares Gold Trust or SPDR Gold Shares would be a good idea. Alternatively, Jim would recommend cash. "Cash is for winners" is Jim's Rule #12 in his book "Real Money". Jim also said " Sometimes cash is such a perfect investment that it drives me crazy how few people ever recommend it" in a CNBC broadcast. I quote Jim "Bulls make money, Bears make money, and pigs get slaughtered." Buying mining stock and sitting on it through a recession would make you a pig.
@@BankingAssociate it probably will drop im prepared for that. but im diversified in a lot of mining stocks. it all follows the price of gold whggich is eventually going beyond 5k an ounce. mining stocks will go nuclear at this price. there is a shitstorm on the horizon.
I dont how he got $450,000. 10% a year mean 400% over 4 decades. $10,000 x 400/100 = $40,000 Like wtf is this guy talking about? He need to go to grade 5 and 6 and get his math right
$10,000(1.10)^40 = $452,592.56 You learn this is second year Algebra lol. He’s a financial personality talking about money on live television, he knows his math.
You can proof this easily with an Excel spreadsheet. Create one column for YEAR, and a second column for BALANCE. Put $10,000 in BALANCE for YEAR 1. Then set up an equation for BALANCE in YEAR 2 to equal the previous BALANCE x 1.1. Extend that equation out to YEAR 40. In YEAR 40 you will have $411,447.78.
it is called compounded interest where the earnings get reinvested creating a snowball effect money grows exponentially it is not straight multiplication
Just Google: Compound interest calculator. Fill in the base ammount (10.000), interest rate(10%), calculation period(40yrs) and you will get it and you will see a list of year interest, total interest and balance of each year. It will get even better if you are able to invest 50,- extra each month. Then your total balance after 40yrs is not 452000, but 732000. For only 50 a month extra! Compound interest is the key to not have to work till you die or are to old te be able to enjoy your life. Also if you dont have 10.000 to invest, but 1000. Invest 50 extra each month. After 40 years with 10% interest rate you still end up with 325000
It's not about timing the market. It's about time in the market. -Warren Buffet
I dare anyone to watch Cramer at .5 speed. Make sure you're sitting down
Luuuuuuuuuudddes
JajajajajajJaja
@@JesseCeballos91 jajaja muy chistoso amiga
Started late in life in investing in my 40s, Self taught ,No Brokers just me And i had to lose some Money on Speculative Plays to understand and appreciate how Dividend investing, Compound interest , And Price Appreciation can give a guy like me A chance at a comfortable life 20 Years from now. That's when Money means the Most those retirement Years. Live Life , Vacations, And have the flexibility to do mostly anything. Love these Videos!
I started at 39 and wished I started at 18 lol.
Imagine you invested in Amazon, Apple, and Microsoft back in the day haha.
The only person on NBC that cares about America!
Bitcoin will never fail you. Buy now and it will double in a few months 😏
Too bad they can't get Dave Ramsey on, instead. That would really rock people's world.
CryptoMilitary Vet zero chance it doubles maybe 1.5x
This the best advice I ever heard him speak.
I also agree with you. This was a really good and balanced segment. He took time to dish out valuable information for ordinary folks thinking of starting to invest. I usually watch him for entertainment for the most part.
This guy is great!
Great video Jim, especially for teenagers and young adults. 👍🏻
it's easier than ever to get rich. you can start a business anywhere thanks to the internet
I think it is good to show those that are unfamiliar but interested what can happen if you just do something when it comes to investing in the stock market.
This video gets me rock hard.
If I am not mistaken, regarding index funds and ETF's , excluding interests and dividend, there is no compounding effect unless you harvest the gain and reinvest it. Otherwise, you are just riding it up and riding it down.
its good for growing wealth..funds like itot..is good for compounding if you invest 20k
6:40
wow, crazy. it's called mathematics!! Cramer you're a genius
No expert but I think real estate may compete with stocks, especially if doing rentals/flips. However, it is more hands on than simply putting money in a stock. For that reason, it may not be for someone already too busy.
Link as to where to start?
Ticker VOO or something similar. Be sure to look at the dividends.
Go to Etrade or Scott Trade or Vanguard or Fidelity and open an account. They all have research tools, Google and Yahoo have them too. Buy a couple books by Peter Lynch or John Bogle. Look on youtube for videos by Dave Ramsey.
I sell Prop Joe's good package on the best Baltimore corners. Win Win! 👍🤣
How do you invest in the S&P 500 thru an ETF?
Fidelity or Vanguard or robinhood
Best thing you can do is the opposite of what Cramer says and you will do well
There are always significant opportunities for contrarian investors
Dead right. People are going to loose their shirts when the recession hits
Gotta admit that Cramer is the most decent guy on CNBC. He admits that Mad Money should be a small part of your portfolio. He actually gives good advice.
Cramer's correct especially if you start at a young age with a 401k and keep contributing.. but I also believe in real estate, income property such as a multi-family house. My two family is paid for and taking in $1700 per month. And eventually when I'm around 70 I will sell the house and Bank 250,000
Better yet, cash out that house at 3.25 and buy three or four houses with that money, and rent all four. You'll have four houses when your 70, not one.
Any people make any money on lending networks? Talk about compound interest
Hmm always good to diversify into other things, note the money you make from lending etc. is taxed as normal income. Another avenue, if your looking for high dividends there are some beast REITS with very high dividiends/ IRM, GEO, O, not bad. Note- they are also taxed differently/higher. Depends on what your looking to do, the market is a buffet-lots of options if you do your research. -Cheers
My dad knew a commodities trader who made 5 million in 1980 and put it into 15% 30 year treasuries. If he sold those in 1985, he wouldve tripled his money. The dream retirement trade.
I am 13 and I have made over 20,000 dollars in 3 years in the stock market!
Is the s&p500 index fund better than the us whole stock index fund?
Barney VTI (total stock market fund) and VOO (S&P 500) are extremely similar and both great choices. The only difference is that VTI includes all the small cap companies, and this actually contributes historically to additional growth, so VTI (total stock market) actually performs slightly better than VOO (S&P 500). I basically max out my Roth IRA with all VTI
@@tylerbond13 cheers. That's the one I went with
Stocks & real estate
Then help people... Become a producer
Cramer, is it possible to compound at 26% a year?
No
What about options trades and get it within months
let us know how that goes ^_^
$$$ I read that each year over the past 10 years when the stock market when up 15 pct, Bitcoin went up 1300 percent. So that’s the best performing asset class isn’t it ?
Yes
Yes we can do it...BTC!
Where do average 22 year olds have 10 grand?
True
How is this possible?!!!
I put my money in a money market account for 12 years and still not seeing it
To double your money in 7 years you need annual 10% compounded return on your investment (i.e. S&P 500 levels of return). If your only making 4 or 5 % it takes a lot, lot longer.
It's called the Rule of 72. Divide the interest (return) rate into 72, and that is how many years it will take to double your investment. 6% interest = 12 years. 10% = 7.2 years. 12% = 6 years.
i fucking love you cramer
80% to date 4 years in TESLA you said “don’t own it or rent it” 😂
That is not much, considering the risk. You could have made the same money with Apple which is already very profitable, buying it at low valuations.
I can bitcoin.....its return is about 110% on returns....
Dont forget cardano and xrp
Since when the dividend is 10% per annum for S&P500? NO need to trade to earn 10% per annum?
You forgot to factor in inflation
i think the 10% over the life of the fund takes care of that
Roth IRA and invest dividend kings and aristocrats 💪🏿👍🏿💯
use realistic numbers like 3-5k
Ohh creamy boy
Im sorry but nobody wants to buy into index funds when the markets at all time highs
The market is never really at an all-time high since it's always going to go higher in the long term
So when is? You cant time the market.
When your going long term, yes
Long term wealth: Stock market
Life change wealth within 10 yrs: Crypto
What bout' dem' Crypto's?
Xrp!!!!
Bitconnect is better
Cramer is really smart and know lots of stuff but it is our President who is the billionaire financial genius.
It is our great President who has created the greatest economy in history. If you want to make big money just buy stock because our great President makes sure stocks will keep making all time new highs as long as he’s president. Trump 2020 and forever !
good luck to you debbie
Okay.. dang sideways/down for next 7 years
Time to pick some wonderful companies then. Dont buy the s&p
Rule of 72 requires 10% avg return to double in 7.2 years. I do really well and the market is up but you cannot count on that for 7 years let alone every 7 years. Get real.
besides, i am 65, i only wat income, my nav is my kids problem.
I think that we all understand that the numbers are hypothetical but gives those that are curious an idea of what can happen.
The annualized total return of the s&p 500 over the last 90 years was 9.8%, sure 10% is high but not unrealistic.
@@semkjaer3581 90 years, i am 65, not for me.
@@rickybobby7276 this is true but we should not be investing based solely on the advice of the people on tv. We should read and learn to look at stocks or stick to index funds and ETFs
Don't need to be a billionaire. Just want to make an extra $10-$20k a year to subsidize travel and quality of life. That's all we ask!
Buy boeing stock. Smoking the snp 500 for years
...and...WELLS FARGO...& ...(BAC)...BankOfAmerica...Two of BIGGEST ...crooKs...out...there...!?...p.s.- you just want piece of that ...pie...!?...or someONE ELSE said...piece of The ...ROCK...!!! ???
SnP has the lowest fees and more reliable for a amateur investor to get into without the stress
Invest in AMC. Opportunity of a lifetime! 🍿💕🚀🚀
...'''AMAZING"""...cramer...never...BITES...His...TONGUE''''...LoL-'''
So true. He keeps it real and entertaining.
By that logic owning leveraged ETFs (say x3) is a no brainier if you think about it. Imagine making ~30% annually.
Example???
@@FreshKicks4545 S&P? DJIA? You know, the basics.
Did cramer lose weight?
I feel like this is some index fund shilling shit. A lot of this was wrong
Never seen this before but apparently it’s on national television
Gain some skills and shoot to make 60k a year. Live frugal on 30k and invest the rest. You will retire early
What do these clowns think about Tesla now
Dave Ramsey has been saying this for twenty years. Einstein said- compound interest is the eighth wonder of the world.
Actually no Einstein never said that nor would he have cause he famously is on film saying he was “terrible at math” so he had trouble doing compound interest calculations
What AVERAGE 22 year old has 10k to put into an SP500 index fund? The AVERAGE American can't cover a 400 dollar emergency, let alone a 22 year old investing 10k.
Bodie END THE FED why be average?
I agree. Most kids that aren't born with a silver spoon in their mouth can't even afford college at 22 let alone have $10k laying around to invest in the market. I think using a 30 year old would be a better example.
So invest whatever you have. You can set up an account with Vanguard or Fidelity and invest a set amount of money each month. You might need $1000-$3000 to get started, although I thought I heard that they were doing away with that. Start small, start early. The sooner you start, the more time you have to double your money (and then double it again).
bodie is an example an illustration but you can invest in a mutual fund that pays a dividend every month reinvest the dividend and contribute 100 dls every month plus the dividend and sure you accumulate wealth that way too also most or all brokerage houses do not charge commission any more you can buy lets say a bank stock every time you get paid and start that way so if you are young and broke im sure you can at least invest 30 or 40 dls to buy one share every time you get paid
Average college grad from 2018 came out with a 49k starting salary. That person has 10k to invest. It might not be throwaway money, might have to get there a paycheck at a time over the year, and they might have to sacrifice some other things but then you have to ask is X today worth 400k later and most of the time the answer will be no.
Bruh so in 10 years your telling me it will go up 100% 😂
No, it will double in 7.2 years. If you got a 6% return it would double in 12 years. A 9% return would double in 8 years. It's called The Rule of 72. Divide 72 by your rate of return and that will tell you how long it will take to double your money. In Cramer's scenario, the fund would double 5.5 times (40 years divided by 7.2 years = 5.55555). $10,000 --> $20,000 --> $40,000 --> $80,000 --> $160,000 --> $320,000 --> $480,000. That's why time and rate of return are so important. If you can get to that fifth, six, seventh doubling, you start talking about some real money. So start early, invest as much as you can, and get the best rate of return possible.
And he is talking about an index fund, which is made of a whole sector of stocks; or a mutual fund, which is also made up of a bunch of stocks, just not necessarily all from the same sector. I don't think you can depend on any one stock to double every 7 years, decade after decade.
@@damondiehl5637 Some people really are that dumb though... don't waste your time lol
Buy your kids a Roth IRA when they are 1 year old, and fund it every year for 10 years, their retirement will be guaranteed. This should be how we reform Social Security.
Not sure you can do that. IRAs are filled with money from income.
@@damondiehl5637 The fundamental principle is correct though. Start investing for your kids when when they're born at the latest. Teach them about it when they're old enough to understand it. Stick it in some sort of trust so they can't touch it until they're old enough to have some sense. Generational wealth only takes one generation deciding to make the sacrifice for their progeny.
Imagine investing in stocks! Ha, I invest in dogecoin!
I am kidding
A better asset class than the s&p? How about bitcoin. Up 800,000% in 10 years
And when it's all over bitcoin will be worth less than yesterday's diapers. It's speculated up "800,000%" by gamblers and speculators betting on an "asset" that has no inherent value and was created by some mystery man claiming to be from Japan. Gold is better, but still is a static asset with a value based only on emotion. But at least you can make gold jewelry out of gold regardless of its value. When bitcoin collapses with every other crypto, people will realize it became nothing and was nothing the entire time.
Eagle One. A one hundred dollar bill is actually a piece of paper worth nothing except what we agree upon. Same with crypto. Interesting you seem to know more about crypto than JP Morgan and other heavy hitters that are now investing in crypto as part of their portfolio, good for you.
@@marticimus The hundred dollar bill's value is determined by the regulation of the federal reserve and treasury of the united states and carries with it the backing of the world's largest and most powerful/influential economy. The dollar is a piece of the united states. You and I can't say from now on the hundred dollar bill is now worth $150 because we feel like it, but we can with crypto currency. Because while the fiat currencies are backed by governments and their regulated departments managing it, the value of crypto currencies are based ENTIRELY on how happy or sad people are on any given day. And apparently I know as much as visa and mastercard and ebay about crypto because they figured this out and crypto is already ending as those companies are dumping facebook's crypto as a currency to use, the libra or whatever it was called. Bitcoin and the rest of them will hold hands jumping off the same cliff, too.
Eagle One ok, but doesn't the dollar have risk of devaluation, diluting etc by printing more money. So it's value can be manipulated by many factors just like crypto, correct? And of course visa , mc etc doesn't like it because it competes, correct? What say you about my original point of some very smart companies adding huge chunks of crypto to portfolio, please address.
@@marticimus Well any asset's market price and actual value will fluctuate, no different than crypto. The actual spending power of it can fluctuate but so do stocks and bonds and gold and bitcoin. The difference is why. With a dollar, the value and market value are the same, it's a fiat currency. You'd have to be bonkers to buy my current issue $10 bill if I offer it to you for $17. However with crypto, you can try to sell me a bitcoin for $10 (market value) and say I bet it's gonna be worth $17 next week (speculated to be an 'actual' value). A dollar will be worth a dollar today and a dollar tomorrow. That's up to the government to manage. Once again, bitcoin's value is based on gamblers speculating and throwing money into something that only has value because people think it does. If a lot of the same people in bitcoin today decided to just pull out, it would lose massive value. If people decide to stop accepting it as payment, it loses massive value. How can that be done to the dollar? Also there's only one dollar, and anyone can start a cryptocurrency. If people decided bitcoin is over and now seashells are money seashells would go up 800,000% in 'value' and people would trade them around no different. The dollar can't just be dropped like that, it's government backed. Crypto is an imaginary money with zero real value, and that's gonna become more clear as people drop it like libra was tossed in the toilet.
As for why the "smart companies" are adding crypto to their portfolios, I don't know how they can make such massive mistakes. But a lot of smart people do really dumb things. People invested billions into the dotcom bubble and lost it all buying IPOs of companies valued over a billion dollars each - and the company had no earnings or negative returns. People bought stocks with massive amounts of borrowed money in the 20's and lost it all gambling in stocks. Smart people including...say...ALMOST EVERY bank and financial institution was involved in the housing bubble which almost crashed the global financial system into the dark ages? Just because a lot of people do something doesn't make it right. It goes back to what we heard in school, ya know. If all our friends jumped off a cliff would we do it too...
I hope you don't have a stake in crypto, definitely not long term at least. It's possible it'll go up during this volatility we have today but long term it's going to be z-e-r-o.
Compounding in investments is 100% a total & complete LIE! No investments deliver compound interest - they appreciate or they deliver cash flow or both - this is just a bs line
What on earth are you talking about? If you buy stocks that pay dividends and enroll in their DRIP programs, you get compounding interest out of them. I have three times more stocks than I initially bought because of dividends and DRIP programs.
Damon Diehl Nope - that’s appreciation. Not compound - you just don’t understand what compound interest truly means
@@welovelibraries4556 Well, okay, you don't gain "interest" on stocks. But that's splitting hairs. Compound interest, compound returns, it all works the same. You plow your returns right back into your investment, and you wind up with rewards on top of your rewards.
Damon Diehl NO - THAT’S THE POINT - THEY DO NOT all work the same. Use a calculator & you won’t sound so mentally challenged
Dow in 2000 10,700. In 2010 10,700! Zero percent return in 10 years!
Invest in gold and silver mining stocks and watch them go nuclear when the recession hits. Physical also
This is not a very smart idea. Precious metal mining stocks actually tank during a recession. Kinross Gold Company and Gold Fields which are medium and large-cap mining companies fell by over 50% during the last recession. If you're going to diversify into metals during a recession a fund that holds gold such as Ishares Gold Trust or SPDR Gold Shares would be a good idea. Alternatively, Jim would recommend cash. "Cash is for winners" is Jim's Rule #12 in his book "Real Money". Jim also said " Sometimes cash is such a perfect investment that it drives me crazy how few people ever recommend it" in a CNBC broadcast. I quote Jim "Bulls make money, Bears make money, and pigs get slaughtered." Buying mining stock and sitting on it through a recession would make you a pig.
@@BankingAssociate it probably will drop im prepared for that. but im diversified in a lot of mining stocks. it all follows the price of gold whggich is eventually going beyond 5k an ounce. mining stocks will go nuclear at this price. there is a shitstorm on the horizon.
I dont how he got $450,000. 10% a year mean 400% over 4 decades.
$10,000 x 400/100 = $40,000
Like wtf is this guy talking about?
He need to go to grade 5 and 6 and get his math right
$10,000(1.10)^40 = $452,592.56
You learn this is second year Algebra lol. He’s a financial personality talking about money on live television, he knows his math.
You can proof this easily with an Excel spreadsheet. Create one column for YEAR, and a second column for BALANCE. Put $10,000 in BALANCE for YEAR 1. Then set up an equation for BALANCE in YEAR 2 to equal the previous BALANCE x 1.1. Extend that equation out to YEAR 40. In YEAR 40 you will have $411,447.78.
it is called compounded interest where the earnings get reinvested creating a snowball effect money grows exponentially it is not straight multiplication
Just Google: Compound interest calculator. Fill in the base ammount (10.000), interest rate(10%), calculation period(40yrs) and you will get it and you will see a list of year interest, total interest and balance of each year. It will get even better if you are able to invest 50,- extra each month. Then your total balance after 40yrs is not 452000, but 732000. For only 50 a month extra! Compound interest is the key to not have to work till you die or are to old te be able to enjoy your life.
Also if you dont have 10.000 to invest, but 1000. Invest 50 extra each month. After 40 years with 10% interest rate you still end up with 325000
I was so wrong. Sorry guys