{"id":784,"date":"2018-11-06T13:17:21","date_gmt":"2018-11-06T13:17:21","guid":{"rendered":"https:\/\/adamfayed.com\/?p=784"},"modified":"2022-02-28T09:26:41","modified_gmt":"2022-02-28T09:26:41","slug":"whyyoushouldhopeforfallingmarkets","status":"publish","type":"post","link":"https:\/\/adamfayed.com\/it\/stock-markets\/whyyoushouldhopeforfallingmarkets\/","title":{"rendered":"Do you enjoy losing money? Why you should hope for falling markets."},"content":{"rendered":"

Consider something for a moment. From 1802 until today, a dollar invested in the U.S. stock market would have grown to about $12M<\/a>.<\/p>\n

Why doesn’t everybody invest in the markets?  One of the reasons is people are more afraid of losing money than making money.<\/p>\n

Yet consider something for a moment.  If markets go down for a long period of time, a rational investor will actually make more money.<\/p>\n

Take the recently past, as a prime example.  If somebody would have invested a lump sum into the US Stock Markets at the height of the market before the financial crisis, they would have doubled their money assuming they reinvested the dividends.<\/p>\n

However, person 2 who would have invested $100,000 as a lump sum in 2008 and then in March 2009, would have made almost double that amount of money.<\/p>\n

This isn’t me advocating market timing, because that just doesn’t work, because nobody can know when markets will rise or fall.<\/p>\n

However, in the real world most people have to invest monthly when they have a job. They tend to add lump sums when a life event happens. Such people should be cheering when markets are down.<\/p>\n

However, all research shows that people panic when markets are down.<\/a>Just look at the huge outflows that the market saw in 2008:<\/p>\n

\"\"<\/p>\n

Remember if you are below 50 and reading this, if markets are down in the next 5-10 years, that will almost certainly help your long-term returns. You are buying at cheaper prices.<\/p>\n

You aren’t getting your fingers burned either, unlike all those people who panic sold in 2000 or 2009.<\/p>\n

 <\/p>","protected":false},"excerpt":{"rendered":"

Consider something for a moment. From 1802 until today, a dollar invested in the U.S. stock market would have grown to about $12M. Why doesn’t everybody invest in the markets?  One of the reasons is people are more afraid of losing money than making money. Yet consider something for a moment.  If markets go down for […]<\/p>","protected":false},"author":1,"featured_media":786,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10166176115445471_100883565069113":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[11558],"tags":[82],"class_list":["post-784","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-markets","tag-stock-markets"],"_links":{"self":[{"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/posts\/784","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/comments?post=784"}],"version-history":[{"count":0,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/posts\/784\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/media\/786"}],"wp:attachment":[{"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/media?parent=784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/categories?post=784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/tags?post=784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}