The Stock Market is Freaking Me Out

Scott,

The ABC reported the other day that “ASX tumbles $60 billion on US recession, China slowdown fears”. I know you are a big supporter of buying shares, but how is an ordinary person like me (age 25, medium income) supposed to follow your lead when the market can lose $60 BILLION in one day? It freaks me out, and makes me think it’s a lot safer to just stay away from the market altogether.

Mandy

Mandy,

Mandy, Mandy!

At your age, you should be getting down on your knees each night and praying for a share market crash.

More than that, you should be hoping that the stock market falls and stays low for decades.

That’s not going to happen, of course -- though it would be the best outcome for you. Reason being is that you have 45 years of investing left, and you ideally want to purchase your shares while they’re on sale!

Remember, the share market is not only the greatest compound investment machine on earth, it has also never failed to reach new highs. In other words, the cheaper you buy today, the wealthier you’ll end up.

Scott