What to do After the Recent Market Downturn

With the recent market downturn, investors are feeling fearful. What do you do when the market tanks? Joe and Al give you tips on how to handle this recent downturn with a positive approach. Joe reads some insightful quotes from Warren Buffet on investing and Al finishes up the show with 12 ways to lower your taxes in 2015.

3:05 “If there’s a lot of fear about what your investments are, that means you don’t really know what’s going on with your overall portfolio”

6:00 “There’s risk in every single investment but if you get fearful because you’re taking on those risks and don’t let those risks play out to get compensated, you don’t know what you’re doing”

7:35 “The most important investment that you absolutely can make is an investment you make in yourself”

14:29 “The risk premium simply means you earn more by investing in stocks but they’re more volatile, but you are awarded for holding on long-term”

17:58 “Looking at taxes and rebalancing is key”

20:34 “Most people get interested in stocks when everyone else is; the time to get interested is when no one else is”

25:02 “Realize that by owning stocks you’re getting a higher rate of return and you have to expect periods of volatility and periods of decline”

25:15 “Here’s what I encourage you not to do: don’t go into a product that will promise you stock market-like returns with none of the risk associated with it”

25:45 “You cannot get stock market returns with no risk; risk and expected return are related”

27:57 “I’ve been doing this close to 20 years and Al’s been doing this over 30 years, and we’ve seen disaster after disaster because of these two emotions: fear and greed”

32:25 “You don’t need to be a rocket scientist; investing is not a game where the guy with a 160 IQ beats the guy with the 130 IQ” –Warren Buffet

35:47 “Offset investment gains with losses”

36:54 “At times when the market is down you want to look at tax loss harvesting opportunities”