Tony Robbins Shares the Most Important Concept of The Stock Market That EVERY Young Person Needs To Know
I’ll be honest, I’ve never read a Tony Robbins book or attended one of his events. I’ve only heard about him. But after watching this, this dude is special.
Tony Robbins talks about a 20-year study that JPMorgan and Charles Schwab did on timing the market. Here’s the big takeaway.
Over the past 20 years the S&P 500 returned 8.2% — with compounding interest this means your money would double every 9 years.
HOWEVER, if you try to time the market and miss some of the best days in the market here are your returns.
4.5% — if you miss the 10 best days in the past 20 years.
2% — if you miss the 20 best days.
And if you miss the 30 best days you end up losing money.
Take a second and read that again.
If you missed the best 30 days over the past 20 years you lost money.
There is absolutely no reason a young person should ever try timing the market. Meaning, you should never sell equities and actively move them to cash — waiting and hoping for the market to go down.
The beauty of being young is that you have a ton of years ahead of you to be actively collecting cash (this is called your paycheck). And this is where you win:
As the market goes down, take that pretty little paycheck of yours and automatically invest a portion of it in the market. This allows you to buy equities for 20 cents on the dollar as Gary Vaynerchuck talks about.
It’s a beautiful thing. Not only are you capitalizing on the opportunities that Tony Robbins mentions happen every day, you are capitalizing on the market correction that Gary is trying to cash in on (good luck Gary).
Just as Tony discusses, the market never took a dime from anyone. You only lose money when you become fearful. The key is when the market goes down, you need to continue to actively feed your money machine.
p.s. I wonder if Gary is going to take Tony’s advice
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