Forty Percent, Forty Three Billion Dollars And Twenty Two Billion Dollars discussed on Safer Income for Life

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About things that are pertinent to this market and probably pertinent to your wealth you know we we talked about the fact that the economy is probably more exposed to geo political situations a maybe anytime a lifetime we talk about the fact that economy that seems to be strong it doesn't seem to be benefiting a significant portion of the population we talk about the fact that the federal reserve said that forty seven percent of people they survey could not sustain pay a four hundred dollar unexpected bill they have to finance it sell something or just the fault we talk about the fact that forty two percent of Americans according to the World Economic Forum are going to outlive their money these are dramatic dramatic things that are going to impact a lot of people negatively and by the way there are more people retiring every day more people turning sixty five every day than ever before and as they do that they start taking money out of the market and that creates a challenge especially when you're being told to buy and hold the pros don't buy an old folks I know it's an eye opener we all thought they did but the pros don't buy and hold that's a reality that's a reality what we've been talking about here Warren Buffett everybody says well by an old guy right well here's an article from Berks Berkshire this but Berkshire from Bloomberg skews me and it says buffer steers clear of bank stocks you're told by regardless of price called dollar cost average and that that's what you're told we had to win it he stopped by his mere fact he was a net seller of stocks by about one billion dollars the next seller he has a hundred and twenty two billion dollars on the sideline so be is not buying and holding why is he on the sideline because he believes the market is overpriced and there's no magic here what goes up must come down it always has it always will if you listen to the show in the past that one all the way back to the nineteen hundreds the early nineteen hundreds and she'll get every three four years the market was dropping forty percent over forty percent corrections this is the reality been but people so let's just now but not on on on two thousand four year forty three billion dollars on the silent nineteen ninety eight at fifteen billion on the sideline great guy was the founder can the father father index fund in Paul Sanderson he made his money to active investing we got a Howard marks he's a believer market timing it he he wrote a book and Buffett said about himself when I get an email from Howard March is the first thing I open it always learn something that's the reality and we're worried about down markets but we don't have to be we can learn how to protect in profit regardless the direction of the market Jesse Livermore may have been the greatest trader that ever lived in nineteen twenty nine when the market crashed Livermore made over a hundred million dollars that's a sad story when I won the richest man in the world they start off with nothing he just understood markets one of committing suicide in in the nineteen forties his son did the same thing in the nineteen seventies a space that story but they both suffer from depression entry effect but he knew the markets here's what he said quote there is nothing new one Wall Street or in stock speculation what has happened in the past will happen again and again and again this is because human nature does not change and it is human emotion that always gets in the way of human intelligence what we know we always hear the phrase buy low sell high and we know that most individuals so hurry in by will what we know we know that it hasn't worked has worked in the past won't work in the future what we know by a whole dollar cost averaging diversification have cost people significant dollars this is the reality so what did Livermore say that you when I need to be a student of to be successful he said a successful speculator trader investor remains a constant student of three things in what was used talked by sort of motion control he said before you can successfully play the market you must have a clear concise strategy and stick to it emotional control we have a psychologist and stare doctor Woodrow Johnson who talks about the emotional side of trading because it's important for students the next thing that Jesse Livermore talked about he called it money management today we call it risk management Wall Street would have you buy and hold in regardless of market direction regardless of price just stay in the market that's like a football team without a defensive unit that strategy says that you when I have to absorb loss in hopes of future profits will outpace it well with the greatest failure in the world said manage risk risk management don't lose money said a speculator without cash is like a store with no inventory don't lose your money his words his words and the third thing he said market timing he said you must learn went to enter and went to exit a position that's important

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