Here’s the 3-1-Q.
3 insights, 1 word for you to ponder and 1 question for you to jump-start your week…
No. 1: Bear Market Gift
The media is calling for an “extended bear market” with “new lows.” And 63% of Americans are now worried they’ll outlive their savings. But this bear market is actually a gift … and could be the last great wealth creator of our generation. Details here.
No. 2: Multibillion-Dollar Fraud, Exposed!
Award-winning journalist Dan McCrum received a tip to investigate Wirecard — a hot new tech company that was challenging Silicon Valley… What he found was a billion-dollar fraud. You can listen to the full story here.
No. 3: Looking at the Stock Price Is NOT Investing
The market is volatile. There’s no doubt about it. But intelligent investors — like Warren Buffett — know the value of American business is not found in the latest stock price. Watch this.
There are certain people who will always find a way to lose money.
Even if they had tomorrow’s newspaper.
That’s why my word of the week is discipline.
If you don’t have the right discipline, you’ll have a hard time making money over the long term.
No matter how good your stock picks are.
When volatility hits, you don’t sell stocks, which are really pieces of a business
Instead, you need to have the discipline to do nothing!
That’s why investing is simple … not easy.
It’s simple to find quality businesses when they trade at bargain prices. But it’s not so easy to have the discipline to sit on your butt when the stock price falls.
The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you wherever you want to go.
— Benjamin Graham
I’ve been through five bear markets from the 1987 market crash to the current one we’re in
While each bear market is a bit different, one thing remains the same.
Stock prices fall hard and it seems like the end of capitalism.
But that’s not how I see it.
When prices are lower — I look to be a buyer, not a seller.
And the reason is so simple: It’s also why I enjoy shopping at Costco … I love bargains!
So bear markets to me are like manna from heaven…
So far 2022 has been a roller coaster in one direction — straight down.
How you react to bear markets will make all the difference in your net worth over the next five to ten years.
So here’s my question for you: How do you react to falling stock prices? Do they keep you up at night?
Or as a member of the Alpha Investor family — have I helped you put declines in perspective?
Do you now sleep better at night? Let us know here:
Real Talk Question