4/7/25 LIVE RECAP "BLACK MONDAY"
LIVE RECAP 4/7/25
I go live every Sunday at 10am EST. But when markets drop hard, sure. I’ll hop on to ease some minds, which is what I did today, Monday, April 7th.
Here are some of the most frequently asked questions from today’s live:
SP500 or Berkshire Hathaway?
Should I wait for the bottom? What day is the best day? What time of day is the best?
When is the bottom? Nobody knows. Don’t drive yourself nuts. You will most likely buy a stock today and it will go down short term. WHO. CARES? You’re investing for 10-30 years, not 3 weeks or two months.
What day is the best? Who cares? Again. If you buy a stock at $70 and a week later it’s $63, and a decade from now, it’s $200, will you even remember what you paid? No, you’ll just be glad you bought it.
What time? Guys: You’re driving yourself nuts. The best time of DAY? Doesn’t matter.
Should I sell everything and wait to buy it back later?
Generally, no. Doing this defeats the purpose of accumulating a large position over time. You’re playing a risky game. What if you sell and it doesn’t go lower? What if you sell and it DOES go lower, but you hesitate and don’t buy it, because you think it goes lower STILL? Just add. Add, add, add.
What If I’m 60?
If you’re older, then it is ALWAYS a wise idea to reallocate a portion of your portfolio into bonds. This will help.
Should I Invest in Emerging Markets?
Emerging and international funds GENERALLY underperform our markets substantially. If our SP500 goes up 190% in a decade, an international fund might go up 90%. An emerging market fund might go up 10%. We are the largest consumer in the world.
HOWEVER. If Trump is isolating us and cutting us off with trade wars, countries that usually make and EXPORT might make and sell locally instead (or find other trade partners). That could boost their economy on the short term.
GOLD?
Gold is a great hedge against inflation and worth considering as an investment especially during recessions, but as a standalone investment? Gold underperforms. SOmeone asked if they should sell 100% stocks and go 100% into gold. I personally would not ever do that.
Where to Start?
If you’re new, a lot of people were asking WHICH STOCK SHOULD I BUY? There isn’t a perfect stock, best dividend, etc. The easiest way to start is exactly as I’m going to write it below:
Open a Roth IRA AND an Individual Account. I use Schwab
Consider a tech based ETF like FTEC/XLK/VGT (you only need one) in the Roth IRA. The goal is to avoid the biggest tax bill in retirement and that most likely will come from technology.
In your individual account, ONLY ONE SP500 etf like SPLG/VOO/SPY (they’re all the same, I own SPLG) and a dividend fund like SCHD/SPHD/SPYD (you only need one).
Build a foundation in these funds. Most advisors recommend $30,000 total, so perhaps 10k in each. Once the foundation is built, you can consider individual stocks if you want. You can also buy individual stocks now in addition to building your foundation. Do what works for you. Once you hit 30k, you don’t stop investing in the funds, you must continue investing every month until retirement.
The end. That’s it. That’s investing for beginners.
How much to invest during recessions?
Ideally, as much as you can. Some people were saying I have 2,000/5,000/10,000/100,000, what’s the best way to divide it up? Lump sum is generally the best option: Start the earliest with the most. HOWEVER, during a recession, dollar cost averaging might be more comfortable for you.
I personally like to consider adding more to my foundation when any individual HIGH QUALITY stock is down 25% or more. So, NVDA? Down 29% YTD (year to date)? I bought more. Now after that, on any particularly bad day if it drops more than 5% and DEFINITELY More than 8%, I consider adding a little more. What is A LITTLE? It’s all relative. It might be 1 share for you or 10 shares.
