Thanks, here is what I think he said (post 40)
"risk off behavior" is a new term I learned and is when investors sell out of fear causing markets that normally move differently start moving together so diversification may not work as a hedge against a bear in short term
not all stocks go down as some are up and some investors are making money going long (betting market will rise)
and without playing the derivative game. Even during depression some stocks made profit
FYI, the term “derivative” refers to a type of financial contract whose value is dependent on an underlying asset. Derivatives are agreements set between two or more parties
IE you bet stock will fall , also called hedging .
IMHO, never ever buy a hedge fund as they are way to risky
Diversification can soften a loss in a bear but he fails to mention it can lessen returns in a bull
Emerging markets are hit hard during uncertainty. I never realized that
Getting completely out is the worse thing you can do as markets reward discpline not emotion. I agree 100% but more easily
said than done
IMHO, the reason the market is falling is because stocks are anticipated to be less profitable created a herd mentality of selling.
In other words, it is 90% psychological as investors becomed their own enemy
3 takeaways from this vid:
1
A drop of 10% is called a correction and happens every 20 months on average
A 20% corerection happens every 6 years so keep perspective
2
you should have safe money for times like this. If you do not create one now to cover
a few years so you have no need to panic.
I do not know the percentages but I would think it is a small minority of
people can actually do this as they live paychech to paycheck
3
it is time to invest in market if you have cash on sideline but do not buy whatever has dipped the most
be wiser. He does not say how except stick to plan. To me that means buy index funds as they cover
the broad market as I always felt individual stocks are too risky. The question is which index funfds.
The answer is it depends on the risk you wanna take This bear market is teachjing you a valuable lesson avbout your avbiolity to accept risk, if you are selling than your risk tolerence is low and you should of had a safer protfolio.
For example, dividend funds , bond funds, GICs and even high intereset savings aaccount ETF (which will be lucky to keep up with inflation but is a safe as can be unless banks go under in which case you could put money directly into a bank savings account as government will insure against bankruptcy of the bank itself for loses up to $100,000)
"risk off behavior" is a new term I learned and is when investors sell out of fear causing markets that normally move differently start moving together so diversification may not work as a hedge against a bear in short term
not all stocks go down as some are up and some investors are making money going long (betting market will rise)
and without playing the derivative game. Even during depression some stocks made profit
FYI, the term “derivative” refers to a type of financial contract whose value is dependent on an underlying asset. Derivatives are agreements set between two or more parties
IE you bet stock will fall , also called hedging .
IMHO, never ever buy a hedge fund as they are way to risky
Diversification can soften a loss in a bear but he fails to mention it can lessen returns in a bull
Emerging markets are hit hard during uncertainty. I never realized that
Getting completely out is the worse thing you can do as markets reward discpline not emotion. I agree 100% but more easily
said than done
IMHO, the reason the market is falling is because stocks are anticipated to be less profitable created a herd mentality of selling.
In other words, it is 90% psychological as investors becomed their own enemy
3 takeaways from this vid:
1
A drop of 10% is called a correction and happens every 20 months on average
A 20% corerection happens every 6 years so keep perspective
2
you should have safe money for times like this. If you do not create one now to cover
a few years so you have no need to panic.
I do not know the percentages but I would think it is a small minority of
people can actually do this as they live paychech to paycheck
3
it is time to invest in market if you have cash on sideline but do not buy whatever has dipped the most
be wiser. He does not say how except stick to plan. To me that means buy index funds as they cover
the broad market as I always felt individual stocks are too risky. The question is which index funfds.
The answer is it depends on the risk you wanna take This bear market is teachjing you a valuable lesson avbout your avbiolity to accept risk, if you are selling than your risk tolerence is low and you should of had a safer protfolio.
For example, dividend funds , bond funds, GICs and even high intereset savings aaccount ETF (which will be lucky to keep up with inflation but is a safe as can be unless banks go under in which case you could put money directly into a bank savings account as government will insure against bankruptcy of the bank itself for loses up to $100,000)
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