Mike on the Money: The Emotional Roller Coaster of Investing
Mike Giordano, financial advisor at Williams Wealth Management in Greenville, South Carolina, shares his advice.
Updated: July 10, 2024, 5:05 PM EDT
If you have a strong stomach, you’re going to have more rollercoaster seasons, right? Exactly. So I’m here to talk to you about the emotional rollercoaster of investing. Mike is going to teach you how to get more out of this ride. I’m here with my friend Mike Giordano, financial advisor and hosting expert at Williams Wealth Management. By the way, my stomach had a window. I could have endured it, but I think it’s okay now. We’re in the year. Okay. So Mike, first, talk about the emotional rollercoaster that a lot of investors tend to ride. One of the great things about the stock market and why it can generate such great profits is because you have to be able to handle that volatility, that rollercoaster ups and downs. And that rollercoaster ups and downs can cause people to get out of the stock market at the wrong time or get into the stock market at the wrong time. When the market hits its rollercoaster peak, people are really jubilant and they’re feeling great and they want to put all their money in because they’re not going to fall. And when the market hits rock bottom, people feel like, “I’ve got to get out of here.” The world is coming to an end. These stories start to spread. So the key is to counter these feelings when things are going really well. You have to start thinking about risk management. When things are not going really well, you want to think about growth. Let’s talk about where we are now. Right now, the ride feels calm, right? It’s just getting higher and higher. But is that a bad thing? It depends on where you are on the ride. Yeah, I mean, right now it’s like a roller coaster going all the way up and up. You see everything outside so much better than before. And you don’t get that stomach ache like you do when you’re going down a loop or a curve. Well, that’s great. The problem is, it pulls you in toward investing a little bit more aggressively. That’s not a bad thing. If you’re young, you have years of time. But if you’re approaching a big goal like retirement, those dips are going to be there, and you have to start thinking about the risk management part. It’s all part of the ride, it’s all part of the experience. So you have to be prepared for it. And we know that the market has historically been a roller coaster. The market continues to grow into the sky. So how can history, looking back, lead us astray? Exactly. And, you know, historically it has been right. The market goes up and down, up and down, up and down. But the market today is much higher than it was 10 years ago. 20 years ago, 50 years ago, 100 years ago. So that’s all great. That’s why we invest in the market. But you have to realize that when these dips happen, they can last for months. They can last for years, they can last for 10 years or more. So if you’re early in your investment journey, you have to realize that there’s a lot more money coming your way. These dips are your ally. If you’re later in your investment journey, you have to start really thinking about the fact that if you don’t have a lot of money to put into the market, would you be okay with having a dip that lasts two, three, four, five years? I still feel very stable financially. Can I still do everything I want to do in my life? Will I be able to retire when I want to or spend my money how I want to? Or will I start to feel anxious? Why is now the best time to adjust? So why is that? Because if you come full circle and think about all of this, this is great because we’re in the middle of a roller coaster ride right now. Things are calming down, right? People are feeling a little bit of FOMO. They don’t want to miss out on anything. There might be some returns in the future, but other than that, people can feel like, I can do that. You can invest less, you can manage some of the risk, you can eliminate some of the risk. Well, now if the market goes down a little bit, oh, I’m $100,000 less than I was before. I’m $100,000 down, I’m $200, $300, $400,000 down, so I don’t want to sell now. And all of a sudden, the emotional element comes in and I feel like I can’t act at this point. So now, now that things are calming down, it’s time to actually make an adjustment. All right. Adjust and enjoy the ride. Enjoy the ride. Right.And now we’re going on a roller coaster. We’re heading to Carowinds. Road Triathlon
Mike on the Money: The Emotional Roller Coaster of Investing
Mike Giordano, financial advisor at Williams Wealth Management in Greenville, South Carolina, shares his advice.
Updated: July 10, 2024, 5:05 PM EDT
Mike Giordano, a financial advisor with Williams Wealth Management in Greenville, South Carolina, talks about the emotional roller coaster of investing and what you can get more out of the experience. Watch the video above to learn more.
Mike Giordano, financial advisor at Williams Wealth Management in Greenville, South Carolina, talks about the emotional roller coaster of investing and how to get more out of the experience.
Check out the video above for more details.
