Should You Wait For Next Stock Market Crash To Buy Stocks?
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Should You Wait For Next Stock Market Crash To Buy Stocks?



well good thing subscribers hope you guys are having a great day out there as always today I want to talk about an important subject that a lot of people kind of mention sometimes are they ask me questions and it's it should I wait for the next stock market crash to start investing in the stock market okay and you hear this a lot people are like hey I'm not investing in the stock market because I'm gonna wait until the stock market crashes when the stock market crashes that's what I'm gonna start buying stocks okay so here today literally here today I believe the Dow hit a new all-time record for the first time in history in here around 28,000 which has never been that high ever okay I believe the Nasdaq hit an all-time high today around 80 to 83 hundred something like that okay the S&P 500 is right around all-time highs in history and when you see those type of numbers and you'll see a lot of stocks that have gone up massively over the past decade let's say because remember 2009 was about 10 years ago okay and remember the Dow bottomed out great under 7,000 it was like 6700 or something like that and so you see okay 10 years the stock market has 4x the Dow has essentially 4x in a matter of 10 years okay that is unbelievable okay that doesn't usually happen either to say every 10 years you can expect the stock market to at least usually doubled sometimes more than doubled okay so let's keep that in mind however there's another way to kind of view this okay so you say wow that sounds ridiculous okay the stock Merck has got to be like way we're valued or something or something's got to be happening or that's to be a big bubble in the economy there's got to be something wrong for that okay well okay that's if you're taking it off to the the very lows that the market hit in 2009 the worst recession we've had probably since the Great Depression okay so long long time horrible situation the whole financial system almost collapsed okay so it's in my opinion a little unrealistic to compare the Dow or any or any stock market index the Nasdaq S&P 500 to the lows that hit in 2009 because it was a situation where there was no confidence in the market there was no confidence in the capital markets or anything across the board so let's go back to the summer of 2007 okay summer of 2007 so prior to when everything got really ugly and the economy started to falter and then things got awful in 2008 and carried in the 2009 okay we go back to summer 2007 the Dow was over 14,000 in the summer of 2007 now there are two reasons why this number is important and why you should pay attention this number okay this number is important because we need to look at it from a perspective of okay so twelve years ago we're in the summer of 2019 yeah now right so twelve years ago basically the stock market was right around half of where it is now so basically over the last 12 years the market has 2x tokay 2x in 12 years now that's actually not good that's actually under performance for the market as we spoke about you can expect the market to double generally speaking the market should double about every 7 to 8 years ok the Dow the Nasdaq has a P 500 it should double every 7 8 years so the fact that it's only to act in 12 years is actually really poor performance okay so that's the first way I kind of want to view this the second way is essentially the market fell by more than 50 percent okay over 50 percent fall in literally two years less than two years when the market bottomed it was spring 2009 when the market bottomed okay sometime around like March of 2009 maybe April 2009 okay that was one the market bottomed and once again summer 2007 and it hit all-time highs over 14,000 so the market fell over 50% in less in less than two years okay that's pretty unbelievable too for the markets to have fallen that much but that just speaks volumes to what happened really in the Great Recession there okay so here we have some framework to kind of start to think about things yes the markets up huge since 2009 no the market is not up Houston since 2007 yes the market can fall quite dramatically in a massive massive colossal recession okay so with that being said let's talk about the market for the last ten years you know I started investing in 2008-2009 and that was not because I had some type of brilliant idea like I was like oh I'm gonna wait for the big recession then I'm that's what I'm gonna start investing no that was luck okay I graduated high school in 2008 and then after high school I started really getting into the stock market or a study and whatnot and I started actually investing 2008 into 2009 was kind of my first investments and so I've been in the market for 10 years and I can tell you what I've seen in the last ten years okay I've seen the market reach new all-time highs I think it was around 2013 2014 somewhere around there okay the market reached new all-time high and to take that into account let's say when it reached a new all-time high I said to myself okay now I'm going to sell out of stock I'm going to wait for the big stock market crash because now that we're at new all-time highs must be a new must be a big stock market crash commenting okay now keep in mind I would have missed out on insane gains okay because the market was a little over 14,000 somewhere around there on the Dow SP 500 if we go back to 2013 it was probably 4,000 or so Nasdaq's over 8,000 now so and imagine how many stocks have gone up 5 X 10 X maybe more than that over the past five or six years neither as I say I would have messed out on a lot of opportunities because I said okay the markets at all-time highs now it's the highest it's ever been let me go ahead and sell out of my stocks now let me you know not worry about stocks anymore and let me just wait for the stock market crash I've been waiting a long time if I chose not to participate in the markets a you know at a particular time and I've seen a lot of people say things like they're going to wait for the stock market crash to happen in they're waiting and they're waiting and they're waiting and maybe eventually they get the opportunity but gosh it takes a long time here's another is a situation we got to kind of think about okay let's say you know when I hear this a lot people that have never invested before they're like oh my gosh I'm gonna wait for the stock market to crash then I'm gonna start investing in the stock market okay and you know I gotta say one thing about this okay you know what you're gonna have you're gonna have no experience in the markets if you're not actively investing in the markets you're not going through the ups and downs of the market it doesn't matter how many stock market books you've read you can read all the books you want you can study all the economists you want you can watch all courses you possibly could watch okay but until you get in the markets for real and you start buying and selling stocks you have no experience okay so this is this pipe dream from some folks out there that they say yeah I don't have any experience in the stock market but I'm gonna wait for it to crash and when it crashes that's what I'm gonna start buying stocks that's what I'm gonna start investing okay and I say that's a big pipe dream because how are you even gonna know when the markets ever gonna crash if you have no experience oh so when do you start investing let's say the market goes down you know fifteen percent at a particular time do you start investing when it goes down 15% what if it goes down 25% is that when you say okay now I'm gonna go ahead and start investing what if it goes down 40% is that when you go ahead and say now I'm gonna start investing now that it's down 40% what is that level that makes you say okay now all of a sudden I'm gonna jump in the market okay and I can tell you it's not going to be fun for somebody with no experience in the markets no experience with the ups and downs no experience with buying and selling stocks if you're going ahead and the market goes down and it goes down 20% and you start buying into the stock and then the next thing you know the stock market you know drops another 50% after that and you're like what the heck and some of your stocks have lost 70 80 % of value I can tell you somebody with no experience will get tore up worse than probably anybody in the stock market in a massive stock market crash scenario because they're just not going to be ready mentally for what's about to happen because they haven't gone through the correction see along the way the last 10 years okay I've been in the stock market there's been plenty of Corrections in the stock market or short-term dips where the market would drop five percent ten percent maybe even fifteen percent over the past 10 years and obviously when I started investing in the stock market was literally crashing the economy was in shambles and whatnot okay so I'm very happy I've been through all that and in the ups and the downs and keep in mind has been mostly up over the past ten years for me and for the stock market in general okay I've also had a few bad stock along the way that I lost money in and guess what that gave me experience and understanding what type of stocks to kind of stay away from and hey I don't want to mess with stocks that are like that over there and that's all experience that is extreme valuable especially especially in a stock market crash scenario when you have just to market chaos and just stocks falling to ridiculous levels okay so I think if you're playing the game of let me wait till the next stock market crash you just don't know what it is I mean people that have been in the market for a long time like myself and people who have even a lot more experience than me that maybe have been investing seriously for 20 30 40 50 years Warren Buffett okay Warren Buffett doesn't even know when next time the stock market will crash so you're gonna tell me somebody that has never even invests in the stock market or is hardly invest in the stock market is going to know when the next stock market crashes no that's just not the way it worked we could have a stock market crash next month next year or 10 years from now and I can guarantee you if we have one 10 years from now you're gonna miss out on such a ridiculous amount of games over that 10 years that you're gonna be kicking yourself you'd be like why was I so scared to jump in the market okay so what I personally like to focus on is I don't like to focus on all this oh my gosh let's talk about the crash oh my gosh the stock market maybe we'll go to new record highs or something like that I like to focus on company fundamentals what is going on with companies specifically out there how are their businesses going what types of things are they doing to expand their business the actual research work the fundamental work of understanding companies because if you worrying about this stuff all the time oh the market it's up for X in ten years all the markets up to X in the last 12 years if you're worried about this I'm just telling you this is not the game that you should be playing if you want to make real money in the stock market the game you should be playing is focused on fundamentals of companies buying undervalued great companies when they come at cheap prices which they do from time to time either because that company reported about earnings or that company reported some negative news or something came out or the market in general just had a weak period where everybody got too caught up in this blah blah blah and what's going on in macroeconomics or what's going on with politics and all those sorts of things okay and I could promise you that's not the game you should be playing Warren Buffett doesn't play that game Jeff Bezos doesn't play that game okay Elon Musk doesn't play that game look at anybody who's actually got crazy money and has accomplished you know insane things in their life they don't worry about what what might happen with the economy tomorrow whoa what might happen with the stock market tomorrow they don't care about that and they never have cared about that and that's why they got to those type of levels they're at because their focus on fundamentals they're not focus on what way the way wins the next talk market graph crash gonna happen oh my gosh I can't do anything until the next stock market crash happens that's not the way they think so why are you gonna start thinking like that the way you want to think about things is I want to get as much experience in the stock market as possible especially why you have smaller amounts of money meaning you have hundreds of dollars or a few thousand dollars to your name that's the time to really get the experience because that's when you can afford to make mistake I can tell you it's a lot more fun to making a mistake when you have a $2,000 net worth and you lose $500 rather than have you know a two million dollar net worth and you lose a million dollars I can tell you losing a million dollars when you have a two million dollar net worth is a million times more painful because 500 bucks you can just get a second job or something like that and make that back real quick we're gonna start the passive income stream or a side hustle or something like that and make that money back real quick a million dollars good luck getting that back in any quick amount of time okay good luck getting that back in any quick amount of time so you want to be making mistakes or getting experience when you have smaller amounts of money rather than when you have large amounts of money and if you're not investing good luck getting to big amounts of money because for most folks that just doesn't happen okay if you think you're gonna save your way to become rich or something like that or become really well-off financially it's not even save rich there's just a really well off financially do you think you're gonna save your money in a savings account I've yet to really see somebody do that I've never honestly seen somebody save their way to become you know really well-off financially they make all their money from investing or they make their own money from a business or they work super high up at a really big company or something like that and outside of those three scenarios I've never seen it where somebody works a 50k job and they're like I'm gonna put us such a such amount of money into my savings account that just doesn't happen guys you have to invest to get to the next level the next level of next level and just keep building and building and building and get that experience and don't worry about oh when the next stock like who cares like the sixth if the stock market crash happens next month next year five years from now ten years from now it's gonna happen I promise you there will be more of those situations in our lifetime I mean I'm young still I'm gonna turn 30 here soon a lot of you guys watch my channel or in your 20s or 30s and some of you guys are even younger than your 20s Oh a shout-out to you guys make sure you comment down there if you're under 20 and you're watching this video but for you guys like we're going to see plenty of recessions we're gonna see plenty of stock market crashes we're gonna see plenty of above you know stock market pull backs we're to see plenty of stocks that crash over time and you might as well jump in now there's I can promise you that you want to get in the pool as long as possible okay because you're gonna get a lot more experience your decision-making will continue to get better as time goes on your thought processes will get more solid and that's where you want to be don't worry about stock market crashes they're gonna happen and it's going to be something you're gonna have to deal with and it's a lot better deal with it when you have experience rather than just being like a guy that's never bought a stock before or something like that guys so I hope you enjoyed this video I hope this kind of lightened you on like you know thinking about like the next stock market crash and things like that make sure you smash the thumbs up button if you enjoyed today's video thank you for watching have a great day

50 Comments

  • Frederick Bouari

    When I started following Jeremie I had a 0$ portfolio. Today, I have a $175k portfolio. Thank you J Rock!

  • Jose Luis Meseguer

    Great advice in this video, Jeremy… I started investing 15 years ago, went through the 2008 recession and lost about 30% of my investments in paper-value, but quickly recovered it and made a lot more in the following years because, as you say in your video, I could keep my head cool during that stormy period by having experienced corrections and learnt from them what to keep and what risks to avoid.

  • James Leung

    Thank you for raising this issue for discussion.
    1. there is no single answer to fit all. To buy or to wait in order to buy at dip depends on ones risk tolerance and understanding of the fundamentals.
    2. The celebrities play the opposite game. Not the same as ours. They care what they want.
    3. The market is not always efficient. The Fed manipulates the market. You never know what they are going to do. So you can’t time the market.
    4. Be optimistic. There’s GDP growth almost each year. The technologies improve each year. Good firms’ revenue is increasing. Thus stock prices are prone to increase in long term.
    5. The problem is huge unexpected downside volatility. Averaging investment is suggested.

  • Michael Pollini

    A lot of this is about your age. If I was in my 20's I'd sit tight. Especially if I was a dividend investor.

  • SDEQid

    Why gain experience when your goal is to get rich and retire early? Sorry I don't buy this, but thanks for the video.

  • Nick V

    I've been in the stock market for 40 years and still have "no experience". I have done very well and have never picked an individual stock to buy or sell in all of those 40 years. . You are giving poor advice. When you tell newbies to get in and get experience in buying and selling stock, you are promoting trading instead of investing. In doing so, you are advocating playing Wall Street's game. Beginners should be investing for the long term in low cost stock index funds. Period. You cited Warren Buffett but you clearly are not advocating his advice when it comes to the stock market.

  • Jose Mesa

    The big players need the retail investors in the dark cause it takes them at least a couple of weeks to take a position in a stock.They are buying thousands of shares to make the profit they need in relation to their ENTIRE portfolio.The market is counterintuitive a lot cause you cant buy so much stock close to the ask price,you wont make nearly as much money.Im talking about individual stocks not the indexes.The information that is provided can be controlled and even bought.Anyone that thinks this is a fair game is kidding themselves.Any game with so much money involved has what I will call gamesmanship.Lets take MU as an example the stock has run up on basically nothing.The earnings report wasnt that good or bad.I would never buy at this level the easy money has already been made in this runup and someplayers might help drive the price up so that can sell against the box or in simple terms lock in the sale price at these levels.

  • sbkpilot11

    the CAGR for the S&P 500 since 2000 is only 5.5% which is well below the 100 year historical stock market average of 10%+, this is primarily for all the carnage in 2000-2003 and 2007-2008. We are overdue to make up for it so in my view market is actually undervalued.

  • Super Swing Trader

    Definitely don't buy during these highs. Buy at mini crashes like the ones during Christmas and add more when it crashes more.

  • RockyMountainOtter

    Great point, but just to clarify, do you think it is best to follow stocks you are interested in and wait for a dip to take a position? or just take a small position and continue working towards more through small trades? I started researching stock about a year ago and compiling a list of stocks I wanted to own, and waited for an opportune moment to buy in and begin my portfolio. Although I did expect a total crash by now (which didn't happen), my 6+ month wait for price drops paid off. I saw that the top stock I wanted (TSLA) was in a huge dip, and finally bought in during early June. So far that strategy has paid off well. I know that it's impossible to accurately predict a total market collapse, but especially in the case of indexes/ETFs which replicate the market average more closely than individual stocks, do you recommend waiting for significant drops in the market to buy in, or slowly acquiring the # of shares you want while getting your feet wet?
    -Thanks for sharing your knowledge, it's very appreciated.

  • freedom runner

    Jeremy another great video. Right no one can predict the future. When you put money in the stock market. Realize you could lose it all. Cheers James.

  • Chris R

    I started investing in TSLA in 2013 and the huge drop from $200 to $110 was great experience. It gave me balls of steel. Now I buy the dips, just like I did in this latest dip.

  • Michael Robinson

    I have sold out and done pretty well for a newbie. I am now sitting on 80% cash (money market). What you say is very valid but it is very hard to invest all my savings when everything is all-time highs. I bought in the Christmas dip and sold out. I am glad I did. It was a lucky move. I cannot dive in now at ATH.

  • Learn Chinese with Yijun Ding

    As a full-time Ph.D student from a poor family in rural China, investing in stock market has totally changed my financial situation! I have made $8,000+ profit from stock market since I started investing in stocks 2 years ago. Most of my classmates don't have a job and ask for money from their parents, but I made myself financially independent and have saved $10,000 in my savings account and currently holding $40,000+ in my stock account. I even gave my little brother $20,000 to pay the down payment to buy his first house in Shanghai! I am from a poor family in rural China and my parents are farmers, and if I have to name two things that significantly improved my life, I would say #1 is education and #2 is investing wisely. Thank my parents who support me to get the education, and thank my bf who taught me how to invest in stock market. And thank you Jeremy too, as I have learned a lot from you too!

  • Jess Ku

    Any thoughts on buying $REI or $T? I'm using robinhood for no commission trades. Referral code jessek756 and get a free stock for signing up.

  • jtmon3y19

    This is contradictory to the video you posted a few months ago where you said you are going to be scaling out in preparation for the stock market crash

  • Stephan Helder

    If a great stock is below its true value (according to your calculations) then you should buy it! It doesnt matter if this does happen in great economic times or a crash! A great example of this is Apple back in january

  • Doan Trinh

    But you want to buy on the dip especially when it’s coming. In 2006-2007 everyone was saying it was going to crash… and it did in 2008 right around Obama’s election. There’s a 7-11 year dip cycle. So I’m going to wait after the elections.

    FYI – you talk about no experience if you’re not in the market? There are other ways to invest and make money outside of Wall Street. Plus I don’t trust Buffet – he does what he wants.

  • Master Digger

    And now that the market has climbed over 20000 points. Only now is it safe to get back in the water again. It’s now safe.

  • SRV. 123

    Who cares what the stock market is at. It was all propped up by Monopoly money. Things are not sustainable. Especially as the baby boomers are dying off and not being replaced. Who will buy crap in the future. Expansion forever? Ha. You're in for a major shock in a few years. Look at Western countries estimated population in 10 years. 30% cut. The banksters are pumping up the markets to eventually rob everyone. But they will own everything for pennies on the dollar.

  • Michael Z

    2020! but of not then 2021! and if not then 2022… just like the last few years. meanwhile in the market #GAINS

  • Pablo Ramirez

    Jeremy, I am a big fan. Thx for all you do. Can you cover TEVA adr stock fundamentals? A company with 10Bln capitalization but 59Bln in assets.

  • Mr. P

    Great video/explanation Jeremy! Been describing this to others for a while but you explained it way better. I’ll just link the vid now!! Keep it up brother!

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