7 Timeless Images Every Investor Should Memorize

Understanding Market Trends Through Visuals

Author

Dividend Dominator
April 08, 2024

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Welcome to The Profit Zone đź‘‹

Where 12,700+ millionaires, CEO’s and high-performing entrepreneurs read the #1 financial newsletter on the web.

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Happy Monday!

Let’s start the week off strong.

The agenda for today:

👉 The power of saving + investing

👉 This time it’s… different?

👉 7 images every investor should memorize

“The four most dangerous words in investing are, it’s different this time.”

- Sir John Templeton

7 Images Every Investor Should Memorize
This post was inspired by Brian Feroldi. Check him out on đť•Ź here.

1) There Is Always A Reason To Sell

Whether it’s a flash crash, the Dow falling 1,000 points for the first time, Brexit, the VIX hitting an all time low, or COVID, there will always be a reason to sell.

But when you zoom out, things start to look a whole lot better.

Don’t let short-term news affect your long-term investing decisions.

2) 20 Year Annualized Returns By Asset Class

From 1999-2018 the average investor underperformed every asset class, including the inflation rate of 2.2% over the same period.

The main reasons:

  • Over trading

  • Following the hype

  • Not doing their research

Most investors would do better if they just forgot the password to their accounts.

Let compound interest work its magic.

3) The Cycle Of Market Emotions

Investors fail to realize that peaks are the point of maximum risk while troughs are the point of maximum opportunity. 

Remember:

Money is made when the market is rising.

Wealth is created when the market is falling.

Taking a contrarian perspective when it comes to investing will benefit you in the long-run.

4) Back To Back Down Years Are Rare

The S&P 500 has only seen consecutive years of negative returns 3 times since 1957.

Since 1957, the S&P 500 has ended the year in the red only 18 times including 2022.

14 of those times, the index grew the following year.

If that doesn’t convince you to stay invested in the stock market, I’m not sure what will…

5) Start Investing Today!

The value of $1 by age 65 depending on what age you start.

Moral of the story: invest early, invest often, and let compounding take your wealth to levels you never thought were possible.

6) Total Real Market Returns

Stocks have outperformed bonds, t-bills, gold and the dollar since 1802.

Past performance isn’t a guarantee of future returns, but it’s a damn good indicator.

If you want to hedge your portfolio with other types of assets, you can do so.

But overexposure to those assets may leave you wondering why you aren’t hitting your financial goals as fast as you would have thought.

7) Politics and Investing

The impact of the type of presidency vs. the returns of the S&P 500 over a 100 year period.

 

Miss last weeks newsletter? Read it below:

Steer Clear of These 5 Common Investing Mistakes

Avoiding Common Mistakes To Help You Keep More Money In Your Pocket

See you in the next one!

Alex (The Dividend Dominator)
Founder and CEO of Dividend Domination Inc.
Follow me on Twitter, Instagram and LinkedIn

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