Stocks Struggle Amid Volatility: Financial Experts Urge Calm and Long-Term Thinking
As the stock market experiences a rollercoaster ride, with a recent surge followed by dips and volatility, investors are left wondering how to navigate the turbulent waters. While short-term fluctuations can be unnerving, experts like Rashad Bal and Troy Millings, co-founders of the financial education platform “Earn Your Leisure,” emphasize the importance of a long-term perspective and strategic investing.
Bal and Millings, who have built a thriving community through their podcasts, online courses, and upcoming fourth annual InvestFest, are urging investors to embrace the opportunity presented by dips in the market. “There’s always a spike in interest when people see volatility," explains Millings, "They try to figure out if it’s a good time to invest or sell. But we always tell people there are opportunities.”
He gives the example of Super Micro, a chip company experiencing a significant pullback, saying that the current dip could be an excellent entry point for those who believe in the company’s future and the AI revolution.
Bal, who previously worked as a financial advisor during the Great Recession, acknowledges the anxiety volatility can create but encourages a long-term approach. He believes that "nothing can go up 30-40% every single year, infinitely," highlighting the natural ebb and flow of the market and the buying opportunities it presents.
The Earn Your Leisure co-founders have found success connecting with a younger audience, primarily millennials, who they believe are "more educated" and "less emotional" about market fluctuations. They advocate for dollar cost averaging, long-term investing, and index investing, suggesting a calculated approach rather than impulsive, meme-driven trading.
Millings, whose background is in education, views his work as a teacher. "I’m always looking at somebody as a student," he says, reflecting his commitment to breaking down financial concepts for a broad audience. The co-founders’ passion for financial literacy stems from the realization that financial education, often lacking in traditional school curriculums, is vital for all adults, regardless of career path or age.
As the stock market continues to ebb and flow, the message from Bal and Millings is clear: don’t panic, stay focused on the long game, and embrace the opportunities that volatility can bring. Their commitment to empowering individuals with financial knowledge and understanding is providing a valuable resource for navigating the complexities of the market.
Stocks Struggle to Find Their Footing After Recent Volatility: Earn Your Leisure Co-Founders Offer Investment Advice
The stock market has been on a rollercoaster ride this week, with a sharp sell-off last Friday and Monday followed by two separate rallies. This volatility has left many investors wondering if now is the right time to buy, sell, or hold. Earn Your Leisure, a financial education platform known for its popular podcast, online courses, and upcoming fourth annual Invest Fest, has seen a surge in interest from investors seeking guidance during this turbulent period. To help navigate this uncertainty, we spoke with Rashad Bal and Troy Millings, the co-founders of Earn Your Leisure, who shared their insights on how to approach market volatility and the importance of financial literacy.
Key Takeaways
Volatility creates opportunities: Troy Millings emphasized that while volatility can be unsettling, it presents opportunities for savvy investors. He urged viewers to identify indexes, points, or retracement levels where they could strategically enter positions in companies they believe in. Taking Super Micro (SMCI) as an example, he suggested that the recent 60% pullback might be an attractive entry point for those who see the company benefitting from the AI revolution.
Long-term perspective is crucial: Rashad Bal, drawing from his experience as a financial advisor during the Great Recession, highlighted the importance of maintaining a long-term perspective. He emphasized that the stock market’s natural fluctuations are part of the process and that "whatever goes up must come down." This volatility also serves as an opportunity to buy into quality companies at lower prices.
Dollar-cost averaging and index investing are key: Both Rashad and Troy advocated for dollar-cost averaging and index investing as strategies to mitigate risk and take advantage of long-term growth. They acknowledged that their target audience, primarily young millennials with longer time horizons, are more receptive to these strategies than investors nearing retirement.
- Financial literacy is essential for all: Troy, whose background is in education, underlined the crucial role of financial literacy in empowering individuals to make sound financial decisions. He remarked that in his experience as a teacher, he realized that financial education was often lacking in traditional school curriculums and that this gap extended beyond young students. He pointed out the need for a platform that provides accessible and understandable information to "educate the population that was left out of the conversation for a while."
Navigating Market Volatility
Rashad Bal emphasized the importance of staying grounded and avoiding panic selling during periods of market volatility. He cautioned people from making impulsive decisions based on short-term fluctuations. Instead, he encouraged a focus on long-term investment goals and the power of time.
"Keep a long-term perspective, whatever goes up must come down. It’s healthy, nothing can go up 30% or 40% every year infinitely," he said, underscoring the cyclical nature of the market.
The Value of Financial Education
Troy Millings’ background in education has been instrumental in shaping Earn Your Leisure’s approach to financial literacy. He explained:
"As an educator, I was always looking at somebody as a student. It’s about being a lifelong learner. You are always trying to find new information, and I’m watching you guys all the time figuring out how I can act and explain it to a community that may have not understood it before."
This commitment to education has been central to Earn Your Leisure’s mission to democratize financial knowledge. They recognized the need to address a gap in financial literacy that extends beyond young adults and reaches across diverse demographics and career paths.
"You know I was teaching in the school district and realized that there were pieces of information that were left out of the curriculum," Troy shared, highlighting the systemic lack of financial education. "Financial education was part of that, and so we had a summer program where it was an opportunity to teach young adults about money who were getting paid for the first time. That led to realizing that adults didn’t have this education no matter what aspect of or career that they had. It was like, okay, there’s an avenue here for us to create a platform where people can come to get this information."
This realization sparked the creation of Earn Your Leisure, which has evolved into a dynamic educational platform that is empowering individuals to take control of their financial futures.
