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7 Images Every Investor Needs To See
A picture worth a thousands words, I mean dollars.
Quote
"He who loses money, loses much; He who loses a friend, loses much more; He who loses faith, loses all." - Eleanor Roosevelt
Seems fitting right about now...
Picture Perfect
Today's piece is going to be light on words and heavy on images.
It's easy for people to read "buy the dip" and "be greedy when others are fearful." But as human nature has it, these concepts become hard to follow when your brokerage account is brighter than a midnight red light.
When you see an image of a concept it's almost as if you could touch it, your eyes build the example in your brain. That's the goal of this email.
So to reinforce the investor code, here are 7 images that could save you thousands.
1) Politics and Investing
The media will tell you differently, but over the long term who is in office has little effect on what the market does.
2) The Cycle of Market Emotions
These repeat time and time again. Where are we now? That's for you to decide.
3) Power of Compound Interest
The importance of investing as soon as possible is highlighted by this image.
$5,000 a year = $416 a month.
If you'd like, here is an investing calculator to run your own numbers.
4) Stocks Bottom First
The S&P 500 is represented by the blue dotted line. As you can see, the S&P has been the first to bottom in "crisis" periods.
I came across these charts on Michael Batnick's website. If you want to hear him discuss how this compares with current market conditions check out the post here.
5) Companies That Own Brands
You can often track multiple of your favorite brands back to the same company.
6) Bull vs Bear Markets
A timeline of bull and bear markets (there is a lot more blue).
The average bull market lasts 2.7 years.
The average bear market lasts 9.5 months.
7) A Reason To Sell
It doesn't matter what time frame you look at, there has always been a reason to sell.
Conclusion
That's all for today.
Next time you are thinking about doing something irrational with your investments (*cough loading up on call options *cough) remember these images.
Till next time, Cade.
P.S. None of these images belong to me. Shout out to the original creators!
What I Liked This Week
From Oculus To Military Weapons - Podcast interview with billionaire Palmer Luckey and what he has done since selling Oculus for $2 billion.
Side Business Guide - Email by Justin Welsh on his two favorite ways to start a side business.
Best Of The Best
big data is my passion
— memes.xlsx (@ExcelHumor)
2:34 AM • Oct 26, 2022
Sharing my most lucrative side hustle on Linkedin
— Jack Raines (@Jack_Raines)
6:35 PM • Oct 25, 2022
TWITTER ACQUIRED ☑️
— beeple (@beeple)
3:59 AM • Oct 28, 2022
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Nothing in this email is intended to serve as financial advice. Do your own research. If you have any questions, comments, suggestions, etc. about the email send me a DM on twitter. See you soon!