5 Stock Market Truths

Key Takeaways

  • There are many misconceptions when it comes to the stock market and what we believe to be true about how to successfully invest in it.
  • There are five main truths to keep in mind when thinking about the stock market.
  • If you are not certain how your portfolio stacks up to these truths and you want to check, contact us for a complimentary assessment.

Always buy stocks when the market is down. Never buy stocks when the market is down. You’ve probably heard both of these arbitrary truths, but that’s what happens when we have these rules in our head about the stock market that aren’t really based on anything.

I want to talk about five stock market truths that have been around for the long term, and will probably be true for years to come:

  1. You are the biggest threat to investing in the market. You You might want to make a big bet on a stock, or you want to time the market, jump in and jump out and make a little bit of return. Or maybe you’re going to chase after the current popular trend. That’s not a winning strategy. In the long term, that kind of game plan will come to bite you and you won’t get that long-term result you are looking for.
  2. You need the stock market. Yes, you do! The stock market is a representation (at least in the US) of America and the goods and services and the value we bring to ourselves and to the rest of the world. It shows up in returns, around 9% or so, over the long term in the market. That beats inflation of around 3% on average over that same time period, so you can grow your portfolio successfully for the future.
  3. The market doesn’t always go up, or always go down. Benjamin Graham, the father of investing, said, “In the short run, the market is a voting machine but in the long run, it is a weighing machine.” And isn’t that true. Short term, the market is all over the place, but long term is where the value comes through. That’s where you have real companies, with real returns, and real results.
  4. No one knows which way the market is going next. You have these prognosticators that “called it right” in the last downturn, and they remind you every day going forward that they’re going to call it right again, so buy their product or service and you will make a killing! You know that’s too good to be true!
  5. The stock market is always changing. 20 years ago, the S&P 500 stocks in the US were totally different than they are today, and they will be much different 20 years from now. In fact, about 20 to 25 stocks are listed or unlisted off the S&P every single year.

If your portfolio needs to have a review, or if you’re not certain how you’re addressing these areas in the stock market, please contact us. We will have a complimentary preview meeting to help you understand where you are and where you are going, so you can make good, smart decisions about your money.

Until next time, enjoy!


Learn more about TransformingWealth™ , our proprietary approach, designed to get your arms around the big picture so you can make informed financial decisions. Ask Gary about Coyle’s TransformingWealth Preview Meeting, and schedule a complimentary consultation and start living the Good Life Managed Well™.

Gary Klaben is in our Glenview, IL office and serves our clients who are now located all over the country.  He has over 30 years of experience and is the author of Changing the Conversation, The Wealth Sanctuary and co-author of The Business BattlefieldWhether advising his clients, mentoring his team, or coaching entrepreneurs, he is always simplifying complexity and motivating others to take the next action that’s right for them.
800-480-7913 |

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