ilmscore | Stop Buying Stocks | The Market Crisis Just Got Worse

Stop Buying Stocks | The Market Crisis Just Got Worse

Published: 2022-02-18
Status: Available | Analyzed

Predictions from this Video

Total: 7
Correct: 0
Incorrect: 0
Pending: 7
Unrated: 0
Prediction
Topic
Status
The Medallion Fund has outperformed the market for 30 consecutive years by trading short-term stock positions.
"we do have funds like the Medallion Fund to outperform the market for 30 years straight by trading short-term stock positions"
MF
Pending
Historically, the stock market has seen an average drop of 5% during geopolitical tensions, with recovery taking approximately 47 days.
"the stock market on average since 1941 saw a drop of 5% with an average recovery time of 47 days."
Stock Market Performance During Geopolitical Tensions
Pending
The Dow Jones Industrial Average increased by over 50% (more than 7% annually) between the start of World War II in 1939 and its end in 1945.
"from the start of World War II in 1939 until it ended in 1945, the Dow was up a total of 50% or more than 7% a year."
Stock Market Performance During World War II
Pending
The probability of war has a greater negative impact on stock values than the actual occurrence of war.
"the Swiss Finance Institute found that the increased likelihood of a war decreased stock values more than the actual war itself."
Impact of War Uncertainty on Stock Values
Pending
Attempting to invest precisely at market bottoms historically underperforms consistent monthly investments (dollar cost averaging) 70% of the time.
"the person who invested at the bottom underperformed the market 70% of the time."
Investment Strategy: Timing the Market vs. Dollar Cost Averaging
Pending
Missing the market bottom by just two months can reduce the probability of outperforming dollar cost averaging from 30% to 3%.
"missing the bottom by only 2 months lowers the chance of outperforming dollar cost average from 30% to 3%."
Investment Strategy: Missing Market Bottoms
Pending
Investing at the exact market bottom every year for 20 years yielded only a 1% higher annual return compared to investing randomly each month.
"Schwab also did a similar study and analyzed what your performance would be like if you invested at the exact bottom every single year over 20 years. And surprisingly, that only averaged a 1% higher return annually than someone who just bought randomly every single month."
Investment Strategy: Investing at Market Bottoms vs. Random Monthly Investment
Pending