What EVERYONE Needs To Do With Their Money (ASAP)

"Scenario A is that Trump announced significant tariffs to the rest of the world. They realize he's not bluffing. The market goes down, but other countries quickly try to negotiate a deal, knowing that it's going to hurt them more than it's going to hurt us."

"Or scenario B is that Trump announces these significant tariffs. The rest of the world doesn't back down and it becomes a stalemate to see who gives in first with the biggest contender being China because they're one of the largest trading partners. And if that happens, it's truly an unprecedented event and we have absolutely no idea what could happen."

"And that continued until the Great Depression of 1929. Back then, the issue is that banks were lending out so much money to anyone who wanted to borrow for the sake of investing because the stock market just kept going higher. Well, once the market began topping out, people started selling. Panic ensued. People began withdrawing their money from the banks, and the banks couldn't afford to give people their money back because they had loaned it all out for people who wanted to invest. This led to the stock market dropping 83% over almost 3 years with a nearly 25% unemployment rate among Americans."

"Take a look at the year 1907. This is a time when the stock market crashed 50% after the 1906 San Francisco earthquake when heavy insurance payouts caused people to withdraw their gold from banks. Of course, that resulted in people cashing out. The stock market collapsed and fun fact, but that actually led to the stock market and fiscal policies that we have today known as the Federal Reserve. But shortly after that 50% sell-off, the stock market wound up surging 193% over the next four years."

"The market didn't recover for almost 20 years when World War II offered enough work for the 17 million Americans who were unemployed, at which point the stock market started going up another 14 years with a gain of 815%."

"Although after that, as the war ended, we saw another drop of 22% now that the government was spending less money and some of those veterans re-entered the workforce but couldn't find enough work. But after that sell-off, we saw 15 years of solid growth with prices increasing over 935%."

"But then in 1973 and 1974, the stock market lost another 40% of its value. This occurred when President Nixon removed the dollar from the gold standard. This caused prices of everything to skyrocket out of control. The Federal Reserve quickly raised interest rates and that caused the entire economy to collapse. But eventually, like clockwork, the market recovered and over the next 13 years, the average gain was 845%."

"But then we have another one that a lot of people seem to bring up lately, and that would be Black Monday of 1987 when the stock market lost 22% in a single day. However, that one was very short-lived, and over the next 13 years, the market ended up rallying another 800%."

"Then we have the.com bubble of 2001 which was caused by a frenzy of internet related companies and people buying into them because they thought that the internet was going to be the future. But none of those companies ended up making any money. And when they finally collapsed they took the entire economy down with them with a lot of the market falling between 40 to 60%. But even after that we saw another 5 years of growth with the market increasing 110%"

"This caused the stock market to fall as much as 40 to 50%. But then we recovered with one of the most profitable and longest running bull markets in history until co when the markets fell another 30%. To help with that, the government printed a lot of money to keep our economy afloat, and that resulted in a 120% increase over the following 5 years."

"For the last 120 years in the stock market, the only consistent strategy that has always worked is to buy and hold on a regular basis with a time frame of 20 to 30 years."

"In my honest opinion, I think the biggest risk with this market is for people who panic sell, for those who decide not to invest or for those who invest in very risky assets in hope of making a lot of quick money, but instead they can't afford to stomach the losses. In those cases, yeah, you might actually have legitimate problems. But for those who stay employed, keep their plan as usual, and continue buying in despite the lower prices, long-term, history has consistently shown that you're going to be just fine."

"For instance, in a weird way, the 2009 Great Recession was a once-in-a-lifetime buying opportunity for people to buy into things that they never would have been able to otherwise. Like, I bought full-on houses in California for $70,000. Seriously, houses. Stocks were also trading at a fraction of the value that they are today. And I actually remember buying Ford stock in 2009 for $2 a share."

"If people ask me today if it's a good time to buy into the markets, I would argue yes, as long as your time frame is the next few decades and you have a consistent income to stick with your plan as usual."

"And don't get me wrong, I have no idea what's going to happen in the future. Maybe the markets go up another 20% from here, or maybe they go down another 20 to 30%. I have no clue. Just place a strong emphasis on staying employed, keeping your expenses low, beefing up your emergency fund if that's something you need, and then carrying on the usual plan to dollar cost average long-term."