HOW TO INVEST IN 2019!

TL;DR

Learn about the drastic difference between the bull run in 2017 and the market volatility in 2018, and how to invest wisely in 2019.

Transcript

• So in this video today we're gonna be talking about how to invest in 2019. Now I've done a number of different videos on this topic that kind of talked about how you need to set yourself up for investing as far as paying off any high interest debt and sending up a cash cushion and all that jazz. And so that's not what we're gonna talk about in th... Read More

Key Insights

• ❓ The drastic difference between the stock market in 2017 and 2018 has given investors unrealistic expectations.
• 😮 Market volatility in 2018 was fueled by the trade war, rising interest rates, and weaker numbers from certain companies.
• ✳️ Investors should get comfortable with volatility and align their investments with their risk tolerance.
• ❓ Keeping investments simple and avoiding complicated or speculative investments is advisable.
• 🚙 Utility stocks, blue-chip stocks, consumer staples, healthcare, index funds, and bonds are suggested investment areas for 2019.
• 😘 It is important not to shoot yourself in the foot by making impulsive decisions or selling stocks at a low point.
• 🍉 Dollar-cost averaging and maintaining a long-term outlook can also be effective strategies for navigating market volatility.

Questions & Answers

Q: What factors contributed to the drastic difference between the stock market in 2017 and 2018?

The bull run in 2017 was largely a result of corporate tax cuts and record-breaking earnings. However, the beginning of the trade war and concerns about economic growth in China caused market volatility in 2018.

Q: Why is volatility increasing in the market?

Volatility has increased due to more people participating in the stock market through platforms like Robinhood, as well as the use of high-frequency trading platforms and automatic stop losses.

Q: What are some catalysts for the market volatility in 2018?

The unresolved US-China trade war, fears of slowing economic growth in China, rising interest rates, and weaker numbers from companies like Apple have all contributed to market volatility.

Q: How can investors navigate market volatility in 2019?

One strategy is to get comfortable with volatility and align investments with risk tolerance. Keeping investments simple and avoiding complicated and speculative investments can also be helpful. Additionally, focusing on companies with low debt loads and a long track record of success is recommended.

Summary & Key Takeaways

• 2017 was a year of euphoria in the stock market, leading many investors to have unrealistic expectations.

• The volatility in the market in 2018 was fueled by factors such as the trade war, rising interest rates, and weaker numbers from certain companies.

• As an investor in 2019, it is important to get comfortable with volatility, keep investments simple, and avoid making impulsive decisions.