Isabelle, Stock Market, Sergey Bubka discussed on The Truth About Money with Ric Edelman

Automatic TRANSCRIPT

Talking about a fundamental big impact on your financial future if you choose one over the other it's almost like if you're going to run a race and you can picture the track around the high school football field in space instead of running one lap these people are running four and it's because they're making these fundamental bad decisions and again as isabelle said we don't know what's going to happen in the future we can't say with certainty that stocks are going to outperform over the next ten years and we're careful the way we invest we need to look at when we need the money offensively explains why we're not investing all williams stocks right well and in the and the ultimate irony of the is that millennials also have an expectation of 16 percent why annual returns so exactly so e their thinking that the stock maybe this is why they're thinking of of style the stock market as a quote unquote gamble because they're expecting sick team percent annual returns would you guess at so that is in a fidelity investments study in its two thousand and seventeen millionaire outlook study and millennials surveyed said they're expecting sixteen percent returns sixteen percent average return and what is the average annual return of the s p 500's since linking 26 according to morning star it's been around ten percent since 1926 so they're expecting sixty percent higher returns than we've had over the last century right this is probably what we like to call recent see bias yeah and unrealistic expectation which is certain to lead to disappointment which will simply reinforce their negative view on stocks not delivering what it is they want them to deliver sergey bubka's will buy cds well if you're expecting sixteen and you get ten you're disappointed and therefore you're gonna change your investment strategy and so these answers are all over the place and it makes no sense if you have questions related to what amount of your money should be in cds as opposed to real estate as opposed to stocks and within stocks how do you diversify that between us companies international companies growth value small mid cap in large gap.

Coming up next