Here’s the simple strategy for turning market downturns into long-term wins.
Transcript:
SUZE ORMAN: If you’re going to invest, you have to invest using dollar cost averaging. If you take a lump sum of money and you just invest it, you could be asking for trouble. Because even though I know you think that the market’s going to go straight up, anything can happen today at any time. So I think you’re far better off deciding on which stocks you want to buy or which ETFs or mutual funds. And every single month designate an amount of money that you want to put into that and just keep dollar cost averaging into it. Also, as these markets go down, you should all be so happy, especially if you’re contributing to a 401(k) plan and you have years now before you need this money. The more the market goes down, the more dollars your shares buy. The more shares you have, the more money you will make in the future. So don’t freak out and sell your stock when the markets are going down, you have to be in it to win it.
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