Roaming Returns

003 - 5 Reasons The Stock Market Going Down Is Awesome

• Tim & Carmela • Episode 3

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Don't get swept up in the panic and selling that 90+% of other investors do when the markets go down. Instead adopt these 5 mindset tweaks, that if implemented, will set you up to profit.

It's great to have liquid capital sitting aside in BulletShares® like BSJQ when stocks go on sale. Earn between 6-8% yield while you wait. It's like a having a savings account in the stock market.

Drop your comments or questions for this episode on one of our posts.  


We discuss how market pullbacks affected these stocks

  • HTGC
  • IEP 
  • MPW


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Ticker metrics change as markets and companies change, so always do your own research. The content in this podcast is based on personal experience and is for educational purposes, not financial advice. See full disclaimer here.

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Welcome to the third episode of Roaming Returns a podcast about generating a passive income through investing, so that you don't have to wait till retirement to start traveling. 

In the episode today, Tim and Carmela are going to talk about the 5 reasons that the markets going down, like they are right now in August, is actually a great thing, and how you can profit from it. Let's get started.

We think this is a really relevant topic right now. Because since August started, the markets are down 6%. The S&P is down a little over 6%, the Dow is down about 6.4-6.5%, and the NASDAQ is I think, 8.2-8.3% for August. 

Our portfolio is just getting smashed. What are we down? We're down like $11,000 $11,000 in two weeks in principle, but it is what it is. Did we figure out what that is in percent? Oh, that's like 12%, 11% somewhere around there.

So we're down dramatically above what the market is down, but we're not panicking because our portfolio consists of really good companies. 

I hope so. If I'm trying to tell people that.  They better be lol. Well, the shake down will definitely tell us one way or the other.  

What I think is happening, and I was reading a few articles about this, is like the FIX (fear and greed meter), which is the fear meter that most people use was getting pretty messed up. 

The large institutional investors and rich people said, "Well, everybody's buying. Everyone's euphoric. So we're going to just pay our media people to sabotage the news. And if you look at the news, it's been crap after crap after crap. A big old crap sandwich. 

The latest one was China's economy is crap. And then the one before that was the Feds going to raise the rate again, which I thought we priced in, but maybe we didn't. 

The one before that was a Russia's doing this to Ukraine. So like, there's just been like four or five cycles that have just decimated like, investor sentiment.
And I saw a couple of things going around, and like Twitter and Instagram and stuff that we're talking about a lot of the big big whales stick in short sells in, basically knowing the market is gonna go down or hoping or
we know that they know that, because they have a hand in the media that you know, exactly.
And then the media is like blasting and blasting. And last thing. So I think that's actually a good sign because it means that this isn't a valuation issue. It's just like a panic, make the big fish more wealthy type thing. And 99% of investors just panic when that happens, and so and lose money. So we're gonna go over the five reasons,
in our opinion, there might be other reasons out there. But to me personally, these are the biggest reasons why it's actually a lucrative time to be investing when the markets going down like this.
Again, this is a good reason why paying attention to what's happening is because this is when stuff goes on sale. So number one, you get a better valuation, when prices are lower.
translate that to English, that means like, okay, like, say you like Home Depot, or you like 3am, which are good company price, they they'll drop 12 to 15% back into a buy range, you buy them, you're getting 12 to 15% discount on something that you know, is gonna go up that much in the matter of maybe a week, maybe weeks, but we'll say conservatively speaking months, you're still you know, you're going to be making 12 to 15% plus the paltry dividends at both those provide.
And the same thing happens for the top, the ones that we look at, so like they'll drop in price, too. And since ours pay more dividends, we get way more valuation.
On the back end, if you like, if you've heard us talk about funds, like one of the best parts of funds is that you just watch the nav price go down, down every day, and you're like, Well, now it's like 15% discount, I'm gonna go ahead and buy that now. Or you can wait till it goes to 18%. Or, I mean, it does, the entry price isn't as important as getting a deal.
And the nav price is a really good indicator when you're in like, which ones the closed ended funds have enough price. What else has enough price bonds have
CDs have a par value preferred shares have a par value.
So these are the assets that have a known like zero point or a like ideal situation for their valuation. So if they're below that metric, that means they're on sale like clear indicator, they're 50% Off 20% Off 10%
Like couldn't sidebar like if I was a nervous investor, because of the just plethora of crap news, I would be investing in preferred shares because they're all going to be under par. If they're ever called back, they're going to be called back at the par level. So you're going to make that percentage that there's the difference there. Plus you're gonna make any interest or dividend payments they make in the meantime.
Alright, so number two is higher yields when the prices drop.
Yeah, For this, we had to do maths. And it was love math. And it was it was not not super difficult, not quite my strong suit. But like she knew what I was trying to say
I had to translate, because he doesn't make sense a lot of times. So with dividend stocks, the yield that is presented, when you look it up on say, like Yahoo Finance or in your account, they'll give you a percent, but that percent is constantly changing based on the fluctuations of the price of the actual asset over time. So that the better way to calculate your own yield is to take your, the amount of dividend that they're paying, and then you divide that by the price that it currently is at. And then you'll take that times 12, because that'll give you your actual yield for four
or four or two depends on what however many, how many, how many dividends, you will acquire for the 12 month period,
for simplicity state we just did had, say a monthly dividend,
hypothetical $10 stock with a five cent dividend.
So if you do the math, that comes out to be 6% yield for the year. Now, this isn't something that would interest us. But this is just for examples simplicity. So say the market drops, like we were just doing going from $10 to $8. That's a 20% drop. So at $8, that same five cent dividend because the dividend isn't going to change what the yield, what's not gonna change in a short term like this, some hopefully, unless it's the next day, and they decide to just change I'm going
to stick with hopefully,
ideal situation, okay. Okay. So when you do the math for that one, the yield goes up to 7.5%. So if that's your pull the trigger by thresholds for the dividend yield that you're looking for, that would take something that didn't quite meet your metrics and was on your watch list, and it's now become a buy during these panic debts,
something else that we're going to address down the road, at some point, I don't know exactly when one of the podcasts and I'll probably send out an email or a portion of the newsletter, when I when I write it up is like the cost, average buying, like if you if you're currently in the $10 with the 6% yield, and you see it go down 20%. With the 7.5% yield, you might want to put some more money into it just to average bring your cost basis down. I mean, that's totally up to you. But like that's a,
well, that automatically happens if you have your drip set on. And actually number three was going to be acquiring more shares during reinvestment is the best time to actually get more shares, it is the best time to get more
shares. But why I leave that when I know the markets going to be shitshow I leave the drip on. Because when it's a shit show, there's a higher probability that the price is going to be down and you're gonna actually go and acquire more shares when the price is down.
And that's where we were talking about how like, you'll get that dividend payout, say it's five cents per share. So say you have 1000 shares, that would give you a $50 payout. So if it drops down to the $8, you would be able to buy a heck of a lot more shares. Let's basic maths, but then you'd get an extra five cents per share. For the backdoor whole principle that we we prefer to pick the ones that have
without actually like, again, I have to stress this because I don't think people ever, you're not actually adding more money to the investment.
Yeah, you're getting free money. You're reinvesting free money, and you're making even more free money, which is then giving you more free money and you're investing, you're building a snowball
free money, but it's money that you've quote, earned for holding a portion of the company. So it's not entirely free, but it's free, and you're actually getting more for your, you actually get more return for your investment whenever the price is down. Because as we've all known, the prices of the market go up, up, up, up, up. So you know, the price is gonna go back up that 20%, probably more so you're actually accruing more shares at a lower price that then months down the road, you're actually going to be with the price appreciation. And if it's a good company, which I'm hoping most of the ones that I recommend are good companies, they'll actually raise the dividend on the way up to so that that's another
we'll know on the shakedown. But a lot of times people are mistaken or don't realize that this is a thing that you're actually acquiring more of something during a pullback, because the valuation of your portfolio actually looks like it's going down. So we're down to 11 11,000. But our share quantities are going up. And if the price would reconnect back to where it was, that's when you'll actually see that valuation change because you'll have more of those assets with that price fluctuation. Once you go through this a couple of times it'll become more familiar to you and easier for you to not panic, and actually get excited about buying during these times. So those are the fourth reason that it's an awesome opportunity when when things go down. Is it a better way to screen for investments, good companies will be pretty obvious and they'll stay.
If you think back when COVID again shitshow hit the fan? Well there was companies left and right cutting their dividend suspending their dividend completely but like the ones that were well managed with the proper free cash flow didn't actually cut their dividends. In fact, some of them actually raised their dividends during that time. And that's when you all you look at that and say Well, that's a really good company, I should do some more research on that. So that point is very relevant. Like, if it's a bad market, and the company doesn't cut their dividend, they're probably a quality company. But if they actually raise their dividend, that's really good, they're probably really good. And you might want to take a closer look at owning that particular,
like when this this type of environment happens, we'll look over the stuff that we own currently and make sure that they're golden, or at least have a good cushion, good buffer. And then anything that's on the watch list that just held up that those are the ones that we absolutely really put a big red flag
generally have like 200 that usually fall I think it's up to 200. Now I usually fall and I go through once a month into the month or beginning of the month, depending on when I do it. And I do look for that I look for dividend cuts and dividend increases like regularly all the time. That's super important. That's actually probably one of the most important aspects of this whole income strategy. Now it doesn't, it doesn't necessarily have to be high yield companies. But like one of the things that you'll notice is that companies with a good balance sheet always rise to the top like Coke, Kroger's, etc, that those companies are some of the one that we have something like Bucha, we have Hercules capital, but that wasn't like we are HTDHT GC, which is Hercules capital is like probably one of the better business development companies. And during 2019, they didn't suspend their dividend. In fact, they actually I think, raised it twice during 2018 2019 to 2020. And that's when I was like, Well, I must own that company. And so I pulled the trigger on that one, but in their cash flow didn't increase from 2019 to 2020. It did decrease, but their free cash that they had on hand because they ran their company. So well, the previous few years, they had enough cash to actually withstand and weather that that market period. So whenever whenever I'm doing the initial research on these, I do look at the cash flow that they have available on hand and think of it as your bank account. If they have enough money in their bank account have to pay for the dividend for 234 years, everything staying the same as it is that's a company that I actually look at more.
Yeah, I was just going to caution that with cash flow with standing, it kind of depends on the situation like COVID was really, the pandemic was really big, shock factor for a lot of people because we weren't allowed to go outside and a lot of cases, so businesses who normally would get patronage, we're not getting patronage. So it's like there's extenuating circumstances in some things, but it's how those companies during those pullbacks manage what they already have going on. And it's really, really clear with the better companies, when they're when they're a good company and they can withstand things.
And then for your personal portfolio, like when things go down, it actually shows you your your weak links,
which means you can either adjust your allocation to mitigate some of that risk whether or get rid of the risk entirely. You could
sell at a loss if you choose to if you really, really, really like icon, for example, I guess it's called Icon she told me
we found out it's called Icon popped up in one of the books that were there, they cut
their dividend by 50%. But then their balance sheets went to went to shit and everything just went piss poor. So I actually sold half of our shares in that company at a loss because it wasn't worth having as much as
I had in it when he had other better assets that he could allocate that money to. So
then I took the proceeds from that and I dumped in other stuff,
because we still think it's a good company. That's why he left half of them in there, we were just over saturated.
So what it did show me though, is that during these tough times that that company is not as good as it was when I first bought it.
And this is a prime reason why you should always be checking in on your assets checking in on market shifts news. This strategy, you do need to familiarize yourself on a somewhat regular basis. Keep yourself immersed in the information. It's not a set it and forget it for like 20 years type thing
prime example that is MPW medical properties literally just had their earnings like two weeks ago and it's down 35 I'm gonna say 34%. Since its earnings, I still own it. I still I'm not I'm actually not selling that one for last because it's right now trading at 775 780. I don't know I didn't look yet today, but yesterday was at 775. And its actual valuation is like 1030. So like that's a 30% 25 is 2526 28%, whatever that is gain, and you're getting a I think 14% yield, so I'm not going to sell that one even if it had a bad earnings. Now if it has repeatedly bad earnings during this crazy time in the market, then I might actually have to think about cutting that one back in half and selling that one for a loss. But
we won't know that really till next quarter. But historically, like based on our portfolio, it's interesting that September's a or excuse me, August is a down month. I think we've only had one down August in the last three years in our portfolio set tambor is always been a down month. So I don't know if September's downs are coming early, or if we're going to actually have two months back to back with this pull down, and this media spin off. So just strap in for it and actually prepare your cash on site, you should have pick up stuff on sale have
money in your boat shares, which is fairly, not volatile at all. Like it doesn't really deviate too much from the 20 to 25 to 20 to 50 range, and it pays you 6%. While you're while you're holding, that's where I that's where I keep my cash, what the what the experts called dry powder, quote unquote, I keep my dry powder in those bullet shares, specifically, so when something goes down, like if I had, if I didn't have MPW right now, after watching it for 37%, seeing the fundamentals, and seeing the potential for it to go up what it is, I would actually use some of my dry powder and put it in put it into MPW currently.
And the reason that we like to keep those in the bullet shares is because if it was in say worthy, which is just bumped their their thing up to 6%, from 5.5, you're getting that same gap. So excited, you're getting that 6% there, which is pretty much the same thing you're gonna get from the board chairs, but the different key differences, the liquidity of it, and the speed of movement. So if you hadn't and worthy, you'd have to actually sell off your stuff and worthy to get your cash out. And then you'd have to do the transfer, which takes I think four to five business days three to five
business days. And then you'd have to transfer it from your bank account to your
unless you have a Schwab account with your investment account,
which I don't how long that takes anywhere from less
than two weeks. Even with a cash account, you can sell that stuff pretty instantaneously and pick up whatever share
it is instantaneously. It's not pretty interesting. So you literally it's like any stock, you go in and say I'm going to sell these at this price or at market and it'll sell right away. Okay, and it goes right into your
so in an instant goes into a thing, you pick it up, you don't have the four to five day delay. Yes, in case it's a real quick rebound, because sometimes that does happen. So if you catch one of these things on sale, you always want to have that extra cash sitting in sable with shares because and the cool thing with that is, they don't have to be sitting on the sidelines and making nothing. You got that 6% coming in.
Your Money should always be making money. I said it before I'll say it again, so starts to become boring and tedious to you. I apologize.
It's gonna be his catchphrase. He says that even all the time, I'm gonna get a t shirt.
Oh, we're gonna do a merch at some point. The merch is gonna be sick looking, oh my gosh, our logo is so tight. He's so
picky about it. Like the type of clothes.
A young person's or logo is so cool.
Oh, when we were talking about bullet shares, Tim was talking to one of our friends about this. And he he looked at the chart. Well, the thing when you go into Yahoo and Google or you go, when you go into Yahoo Finance, and you look at a chart, what'll happen is they condense the window, and they condense the scale of the actual price on the side, we were just saying that those bullet shares have a pretty steady flatline. Well, when the chart first comes up, it actually looks like it has a lot of volatility, you have to actually look at the fact of the change the scale on the side to really see that it's actually a flatline. So those charts can be really deceiving. If you're not looking at the actual scale of the price. Just keep that in mind going across the board for assets, because that I didn't realize that was the thing that freaks some people out. But it's a very easy like, thing to overlook, if you're not really conscientious of it. And that's why the bullet shares actually are more price flat. But they they just seem to save him from a first glance.
But I recommend them there's like 20 of them. You can pick and choose whichever one you want,
or they're freaking awesome.
I'm pretty I am in the BSJ Q which is 2025 Bond bullet share, but there's other ones able to 2023 they were 2030. What's the difference? They hold like if it's 2030. They have different churches, which are
like a TDD time funds, where they called
like the it's not it's not it's kind of similar to the retirement funds where it says like a 2040 2045 retirement date, there's going to have a different allocation than a 2025 retirement date, they're going to be a lot less risky in the 2025. And they actually have more risk because they know the market is going to grow from 2023 to 2040 TDF target date funds, it's similar in that regard, but like the bullet shares, like the the most conservative one is 2024 but it doesn't yield as much. The 2025 seems to be doing pretty good for the the minimal risk you're taking on you could do the 2030 and it actually has a higher yield of like one or 2% but I just put in the 2025 one,
the last one number five is actually that down markets create a window of opportunity to buy assets that may have previously been less liquid or had larger spreads, that this happens sometimes they're just harder to get in hard to get now you'll
notice this some clothes into funds only have 10 to 20,000 volume, some preferred shares have like 5000 volume, there are certain things that I invest in that the volume is very low. So it's very difficult to get into them. But when the markets are going down, there's more people selling and buying, so you have a better opportunity to get into them. And the volume and the what she said, larger spreads, I'm not sure if a lot of you are familiar with but like when you go into any stock, you can look at the Buy Sell prices. Generally, when you have a decent like high volume stock, the buy and sell prices are like a penny difference. Like it'll be $10 and $10. And one, but she means by larger, larger shares, if they had like lower volume, it would be $10 to buy and it'd be like 1075 to sell or something like that there's a vastly different spread in between the buy and sell prices. And when that happens, you you know that there's no volume going into that. So it's going to be more difficult to get into. But if there people are panic selling, there's a higher probability of getting into those if that's something that you want to get into those market
match makers want to match up a cell with a buyer. So if you're the only one buying you got tons of people who are selling, panicking trying to get out, and they'll drop their price down at the spreads wide.
So it's a general like it's a it's a little thing, but it's it can make all the difference in the world if you actually wanted to get into a low volume investment.
And that's another aspect of the the type of strategy that we use for investing, we're not really in a lot of popular assets, which means that they're just in inevitably is less volume. So this does happen from time to time doesn't mean you have to get into the ones that are really, really less low liquidity.
But the reason, the only drawback to those particular ones are when the markets bumping, as the kids say, it's very difficult to sell them because you're the only person selling them and there's not very many people buying them because they're overpriced. So like that's the low vibe. That's why a lot of people avoid the low volume, transactions, investments.
I mean, there's not that many people selling them, you should be able to sell really easy if everything's No,
it's not. That's not how it works. I thought so too. And I got into one and it took me like two days to sell one because no one was buying,
really, because I was doing that when I was doing my penetrating stuff. And trading
is different. There's millions upon millions upon millions of transaction, I'm talking like,
No, but I'm talking what I found a few that I was in, I was in a preferred share, it was called
Fat Boy preferred. It's a burger company, I think out in California. And like the volume at the time, it was literally like 3000 a day, it was like two to 3000. And I couldn't freaking sell it even when it like even when it had good news and it shot up like $1. But I mean, that also applies to like medium cap things that didn't they have like 100,000 or 200,000 volume, like if the spreads too far apart, that means that they'll actually condense the spread, people who are buying are not seeing eye to eye with the people that are selling. That's all that means it's like a five to 10 cent difference.
And then normally, when these markets will drop, you'll actually see that
sidebar, if you want to see this craziness in full display, go to your brokerage account and look after hours at pretty much any stock. And you'll see that there's a huge disparity between the bugs.
So it's really obvious in the actual chart, you'll just see these weird steps like there's a straight line and then it'll step in one direction,
down see what we're talking about. Go in at like seven o'clock at night after the markets closed and look at it to buy anything after hours. And there's just a gigantic difference between the Buy Sell.
That is a big reason why you do not buy after hours, you do not sell after hours.
If you're sold on something, I would wait until pre market pre market there's more volume, there's a better better chance to get some do you actually buy stuff premium. I don't. But I'm saying like I think if I had to choose between whether I would never do anything after hours, it would be pre
pre market, I would not recommend buying anything pre or post market is
if you go in at like 920 you get in pretty much the same price, it's going to be at 930. And you can get it as step on people.
And if you actually won't soak this goes back to my penetrating situation. Normally what happens with a lot of stocks is they'll have a jolt up out of the morning and then they'll have a pullback. So if you're looking to buy to get in at a lower price, don't buy pre market, wait for that dip, if you're trying to get at a good price, or even just put it down a little bit,
too. I think they said 10 o'clock, every trading day is chaos. So you always want to buy after 10 Now if you're trying to sell some Yeah, so 930 to 10.
Alright, so those are the five reasons that we actually think it's a blessing when the market goes down. Like
that down a lot for like we should specify that like it. We're not talking like it goes down 1% You're like Oh, buying opportunity. We're talking like it's been down a percent this month. I'm pretty sure it's gonna go by into August it'll probably be 12 to 15% down for the month.
And that's more than like a 10% gain here like an entire year
is a possibility that everything that they gained from January to July, which was 16% or the NASDAQ I forget which one was up 16% It's gonna get that wiped out is going to end. I think after August it's basically going to be a sideways till December whenever the institutions decide what they're going to do in December.
And December is always a down month because people are
down month. There's the Santa Claus Rally like there's the Santa Claus Rally. So from December 1 through Christmas, it generally goes up. And then the week between Christmas, New Year's, it always goes down. Well, I
kind of meant as a general overview, I feel like December is usually like in the red by the end of the month, because people are dumping assets for tax purposes to take losses, it's, we'll talk about that in a different episode. That's the strategy you can employ. But huge fund this, the problem with that is if you dump something, you can't buy it for full, buy it again in the next year for a full 30 days, otherwise, that loss gets completely wiped off your tax record. And then we're just going to wrap up with a few things to avoid when markets are down, don't buy high and get pressured into selling low.
It is like if you look at any publication that addresses normal investors like you and I 90 some percent of the time we lose money. And the reason we lose money is because we don't buy when we should. And we don't sell when we
should panic because we get swept into the media mass hysteria and panic and
like the probability is nine times out of 10. A normal like investor that's not institutional, like an institutional institutional investor with lots of money or like lots of software will nine times out of 10 We're gonna buy, buy high and sell low. That's just so if you know what you're doing, you can be one of the one at 10 I'm hoping to actually so
basically, if you feel like you need to sell, go contact us get on one of our socials ask for help. Like, I want to build a community actually around this like support factor. Because if it's 99% of people that lose money, because of this hysteria, having a tight knit group to prevent you from making illogical emotionally charged decisions, probably is one of the number one ways to save your assets. It's only a loss for so yeah, so again, avoid getting sucked into mass hysteria. i The media thrives on negativity and fear, don't get swept into that herd mentality. You if you want a different result, you have to act different than the masses. It just is what it is. And one of the things you can focus on is that, again, expanding that time horizon, pull back from the stock market charts and see what happens to the markets and 10 years, 20 years, 30 years, the markets always go up in the long run.
And if they somehow don't, because the world ended, which means
everybody's in the same sinking ship, and it doesn't matter if you have skills for those of you who are like these doomsday naysayers, like I hopefully you're not on here. But if the world implodes like,
you are welcome.
preppers unite. We have water. We have jackers don't get caught without cash on hand. And that's where we were talking about those bullet shares. You want to be able to take advantage of these sales when they happen
in the ideal portfolio to me personally, take it for what it's worth, I have between 10 and 20%, in bullet shares at all times, just specifically for the chance to
go Christmas shopping, buy stuff on sale, we do love our sales,
whatever can be different. Like if you need more cash, now you're gonna obviously have more money in higher dividend yields. But if you have the patience, then you can wait a couple years before you start drawing stuff, you should have money in cash or bullish shares.
Well, and one of the biggest reasons that our strategy beats average market gains as a whole is because we really do focus on picking these things up when they're on sale, and then adding in those dividend yields on top of that, so it's like icing on the cake. So if you can do that consistently, stick with our recommendations. Get in with our group, get on our email lists even just talk us up like Tim Tim will, like he won't ignore a question if you guys come in and panic he just had one of our friends just messaged us about bonds. And he asked a question about that. I don't even know which one it was.
It was a I don't remember the exact company but it was high. It was very well, on the high end of overpriced. It was above par. Right? It was like 112
Yeah, so par for bonds is like 100 Usually,
so he was gonna overpay was going to overpay 12% for a bond that you'll have 10%.
So what Tim did was he told him that that was like the big red flag on it. And then he gave him a couple of options that were better, and exchange
and so I found one I found I had to verify that he wanted a 10% yield he did so I found him a bond that was 12% discounted at 88 instead of 100. And it had 10% and it had the same credit rating. 

So if you guys do have questions, like we're not gonna be like, Oh, we're gonna charge you money just for this one pack. Like we literally want you guys to succeed. And right now we have time and bandwidth to get back to everyone. The last thing to avoid is like, when the markets are down, people tend to fear getting in. And this is a really big one, if you're sitting on the sidelines, unless you're in one of the bullet shares, and that might be the solution that if you don't have the Coronas to get in during these like this 11% drop is whatever percent dropper we're in right now. Eight, I don't know where I keep coming up with these numbers. It'll be 11 by the end of the month. That's why That's why I had that number. So this whole percent drop by the end of the month. If you don't have the cronies to get in, right now. pop into a bullet share. At least get that 6% Don't just leave your money sitting in cash that's not earning your money. Your money should always be making money and commies are coming soon. And compounding is the biggest aspect of how you exponentially grow your nest egg and grow your ability to have that rising income monthly number so that's one of the biggest things and down markets like I don't necessarily advise dollar cost averaging when the markets are going up because you're actually buying at higher prices. As the markets go up each month. It's better to lump sum jump in at that point and they're done that it's not fun again, but when the markets are going to pull down and we are looking at so again since September is historically a down month, Dollar cost averaging will be perfect for this situation. If you have a bigger sum to jump in, put in like 15% of it one week. wait another week, you're gonna have news pumped out it's gonna drop stuff down even more than pick up another 15% 15% 15% And then you'll be all in and you'll leverage that price, you'll average that price down to a very good healthy investment at a discount and then you'll have that growth growth valuation piece plus dividends.
I'm currently doing that with like we'll call the test portfolio I'm putting $150 into a portfolio every month every two weeks just to so I can have illustrations to show you all at some point.
He likes to dabble in like weird experimental stuff.
So I never actually recommend anything before I don't tinker with it myself.
So yeah, we're doing all the experimentation stuff. So you guys don't actually have to like suffer through the losses. Because we're well versed and suffering through a lot the loss of penny stock and it's not fun. You do have to have like a risk tolerance for sure. But yo lo Alright, so this episode we talked about the five reasons that you should actually love down markets. And then the very last portion we talked about a few things to avoid, so that you can keep your money growing money, always making money, and being sure coming soon. Join that 1% versus the 99% of people who lose money,
we'll have it in all seriousness, we're actually gonna have a merchant store at some point and it's in the works.
And I've been putting a lot of effort into our Instagram account. So I'm going to do a call to action at the end of this. Come say hi on Instagram, like find one of our posts or resonates with you. Let us know. I still haven't quite settled in on what exact content to be creating and if there's some type that you'd like for what I have on there, if you want something different pop in, make a comment on something and I'll generate context specifically for you. And I'll actually shout out to you and link to your to your account and
once we get and I want to say like probably 100 followers or so I'm probably going to be doing a monthly once a month live stream.
So on Instagram, our account is income investing for nomads is our tag.
I just do the content she does all
right. Thank you guys for listening. You guys can give us a review on iTunes. That would be absolutely fantastic. This will help it get in front of people's eyeballs who really need this information because we just want to help you guys basically have more money so you can live, go travel.
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