5 Common Investing Myths Debunked

Investing can be a daunting and confusing process, especially for those who are new to it. There are countless investing myths and misconceptions that can cloud people’s judgment and lead them astray.

In this video, we will debunk five of the biggest investing myths that have been perpetuated by financial experts. From the age-old adage “buy low, sell high” to the belief that investing is too risky, these investing myths have long been accepted as truth.

However, as we will see, the reality is often much more complex. By debunking these investing myths, we hope to provide a clearer understanding of the world of investing and help you make more informed decisions.

So, let’s get started and take a closer look at the five biggest investing myths and the truth behind them.

Those five investing myths that Matt Stevenson is analyzing are the following:

1. “Buy low, sell high.” This may seem like a no-brainer, but it’s not always that simple. Markets can be volatile, and it’s not always easy to predict when prices will rise or fall.

2. “Diversification is always the best strategy.” While diversification can help reduce risk, it’s not a guarantee of success. It’s important to carefully consider the specific investments in your portfolio and make sure they align with your goals and risk tolerance.

3. “Investing in mutual funds is always safer than investing in individual stocks.” Mutual funds can be a good option for some investors, but they are not without risk. It’s important to research the specific mutual fund and understand its holdings and risks before investing.

4. “You need a lot of money to start investing.” While it’s true that some investments have high minimums, there are many options available for investors with limited funds. For example, you can invest in individual stocks or mutual funds through a brokerage account, or you can invest in exchange-traded funds (ETFs) with a small amount of money.

5. “Investing is too risky.” While investing does carry some level of risk, it’s important to remember that the potential rewards can outweigh the risks over the long term. By diversifying your portfolio and investing for the long term, you can potentially earn higher returns than you would from keeping your money in a savings account or other low-risk investment.

Allied Wealth’s Mission is to help as many people as we can to live the richest life possible with the resources they have to work with during their golden years.

Our primary discipline is to help our clients capture more of the market return that studies have proven the average investor has missed out on for more than 25 years, by seeking to limit downside risk first and capitalizing on upside growth second. 

A few key information that the president of Allied Wealth Matt Stevenson shares throughout the video: 

“All this goes back to the period from the early 1980s to the year 2000s what we call the 401K effect.

And these are the periods of time where we’re moving away from having that pension, working for a company for 30 to 40 years, getting that gold watch and the retirement party and having our guaranteed sources of income guaranteed to us to maintain our lifestyle- through a pension, maybe social security benefit.

That all changed in the late 70s and the early 80s with the advent of the 401K. And as the onus came to us to self-fund our own retirement, that’s where a lot of volatility started to creep into the market, but also some excellent years for our stock market, the SP500.

In fact from the period from 1980 to the turn of the century in the year 2000 the market returned nearly 1300%.

That is an astonishing number that has never been repeated before or since. And that’s what we call an anomaly in today’s environment.

Could it happen again? Potentially. Is it likely? Maybe not. Now at the same time that our stock market was seeing unbelievable returns, the bond market also had astounding growth. Think back to the late 70s early 80s.

There are many questions that we also often overlook, but we have to ask ourselves that influence what we do with our money.

And so we talk a lot about emotional decision making and that’s what we look to reign in with our clients with on the money and Allied wealth, to create more consistency, have a rules-based approach.

it’s not always perfect nor will it ever be, but it gives us a systematic process to abide by and follow to navigate extremely challenging market environments such as the one that we’re seeing right now.”

We highly recommend that you watch the full video in order to get the most out of it and to fully understand the valuable information that is shared.

In conclusion, the world is filled with investing myths and misconceptions that can lead people astray. By debunking these investing myths, we hope to provide a clearer understanding of the reality of investing and help you make more informed decisions.

While investing can be complex and there are no guarantees of success, it is possible to grow your wealth over time through careful planning, diversification, and a long-term perspective.

Don’t let investing myths and misconceptions hold you back from pursuing your financial goals. Instead, take the time to educate yourself and make informed decisions based on reliable information and professional advice.

Thank you for watching our video on investing myths. We hope that you found the information helpful and that it has provided you with a better understanding of the world of investing.

We appreciate your interest in learning more about this important topic, and we hope that you will continue to tune in to our videos for more valuable financial insights and tips.

If you have any questions or comments, please don’t hesitate to reach out to us. We would love to hear from you. Thank you again for watching and make sure you watch the rest of our informative videos on our YouTube channel!

investing myths
investing myths


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