What To Do When Markets Go Up

Steve Ballinger, MBA
A free video tutorial from Steve Ballinger, MBA
Millionaire Investor|Stocks|Cryptocurrency|Teaching 340,000+
4.5 instructor rating • 31 courses • 346,433 students

Lecture description

Be happy the markets are up and so are your investments but what do you do now and mistakes to avoid.

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Investing Success: Learn Keys From A Millionaire Investor!

Learn insights to investing in stocks, bonds, mutual funds, real estate, ETF for retirement from a millionaire investor.

07:53:16 of on-demand video • Updated February 2021

  • Understand key investing concepts and how they can be applied in a real world setting.
  • How to make good choices when markets are up and when markets are down
  • Invest in company stocks with an understanding of the advantages, disadvantages and risks that are involved.
  • Invest in Bonds with an understanding of the advantages, disadvantages and risks that are involved.
  • Understand how cash investments fit in an overall portfolio.
  • Invest in real estate with an understanding of the advantages, disadvantages and risks that are involved.
  • Understand Active and Index mutual fund strategies.
  • Evaluate mutual funds in terms of risk.
  • Comprehend the similarities and differences of Exchange Traded Funds (ETF) compared to mutual funds.
  • Choose from core investment strategies such as value or contrarian investing, growth investing, and technical analysis.
  • Avoid the dangerous investment mistakes that can really damage your results.
  • Describe many different investment types from Mutual Fund Types, Stock Types, and Bond Types.
  • Determine if a Real Estate Investment Trust (REIT) is a good alternative for them.
  • Understand Capital Gains and Capital Losses.
  • Know the advantages and disadvantages of alternative investments such as investing in Precious Metals (Gold/Silver) and Collectibles.
  • Apply key action steps to reach your investment goals.
English [Auto] So what do you do when markets are rising and your overall portfolio is rising in particular if not certain asset classes. Well first off great you know feel good about that celebrate that and say Wow that's terrific. It's working it's the way it's supposed to work. Over time markets do rise and feel good about that and understand that all that hard work you've been putting in and investing and maybe giving up some things to put more money into your portfolio and Living Below Your Means is now paying off. So feel good when markets go up because invariably they come down at times too. But the overall trend is then what we've seen through history is that they do go up. There is a problem with that like how can there be a problem in making money it's great that one of the problems is behavioral related problems or issues. One you feel richer. You do. You look at your your statements your investment statements maybe you're tracking a few individual stocks that you have a real one. Take a close eye out on certain mutual funds or whatever and you're like look at them go up. This is great. And they're all going up maybe and or certainly all the stocks are going up at the same time it's overall it's doing great and you feel richer. But the problem is with these behavioral issues you may feel overconfident. Look how great a stock investor I am. Look how good an investor I am when overall you're rising with the rest of the market. Right. A rising tide lifts all boats. Same thing you're rising a portion of that with your with that tide. So don't be overcover thinking it's all about you. Good part of it may be but it's all about you. And also you might start feeling like Oh my decision making is really awesome. I'm terrific. I know how to balance. I know what I'm doing and how to invest. I'm buying low and I'm selling high and all this good stuff. You know so don't feel that your decision making Aubusson got better just because the whole market as it is is is increasing and that also can lead to increased risk taking. Well if I did even more if I bought even more risky investments I could even goose or get a better return. So all these things. Feeling richer feeling good when the market comes up can lead to you know the short term types of behaviors are feeling and you lose sight of your whole investment idea and what your your goals are around that and you maybe might even spend more on personal expenses thinking I've increased my wealth least increase in paper so maybe I can buy that new automobile or spend more money on travel entertainment clothes than I had planned to do because I feel richer now on paper. So the idea is don't get caught up in that because you'll see it in the next lesson. Markets do go down and you'll have different behaviors and differing attitudes. So the idea and what you want to do is live your investments continue to run let them continue to rise continue to regularly add to your investments continue to adjust and automate your investments and balancing your portfolio too if you have certain asset classes that maybe have really taken off. Well that might be a time to sell those winners and then put them into some of the losers are things that are not going as well at the current time because eventually they may turn around and become winners themselves. It's very cyclical nature of the industry and with investing. So when one part of the market's up another part of the market might be down entire asset classes like stocks and bonds may work in an inverse relationship. Certainly stock and like gold investments work inversely by the same token within stocks maybe the health care stocks that you have are roaring. But your technology stocks are way down as far as your mutual funds are the individual investment. So if you've got a success in your healthcare funds sell some of that and put that into your technology funds or other funds and rebalance your portfolio. Remember your having a portfolio that matches your risk tolerance and that is good to meet your future goals and those long term goals. But the idea is you can supply Bailo as is the whole idea behind that. And when markets are rising it's a good time it's a really good time for everyone but our than they do fall eventually as well. And so compare where your target and where you anticipate you want to be as you get closer to your goal. That might be a time to really start you know selling off some of those things if you're close to your goal. Lastly as you have this money on paper but until you actually sell those investments they're not realized investments which means you have to also consider taxes and also fees and expenses for selling types of things too. So you might use once again you don't have as much as you think you have. So to take that in consideration as well. But it's good news. Markets are rising. You're on track you're meeting your plan. Feel good and celebrate that but understand how your mindset in your behavior might change a little bit too. When we talk about when markets go down in search of the go down as a broad market and significantly you'll have the exact opposite feelings we're going to talk about the next lesson too. Maybe I'm not good at this investment game or maybe I'm not going to meet my goals. The thing is markets go up markets go down. That's normal. That's natural. So when markets are going up. All tied tied of lifting all boats. That's great to keep with your plan is the main part of that.