This week, the market has been demonstrating “corrections.” It is time to implement ideas from Shark Tank’s Mister Wonderful Dennis O’Leary.
“Never cry when the market goes down, because it’s not crying for you,” he says. “You should never get emotional about the stock market.”
Here are O’Leary’s top three tips to survive the market’s ups and downs:
- Don’t panic
“The truth about markets is that they never go straight up,” O’Leary tells CNBC.
For the last few years, the market has been less volatile, he says, so young people “are not used to major corrections, and so now we’re starting to get them,” he says. “These are normal phenomena.”
You have to think long term.
“You’ll see the markets go up and down,” says O’Leary, “but over a long period of time — and this has been consistent since the beginning of stocks in America — they grow over time because the companies and the economy grows over time.” The S&P 500 index, for example, has earned an annual average return of 9.8 percent over the past 90 years.
“You want a piece of that for your future.”
- Buy for value
If you “buy companies that are profitable and that have good balance sheets that pay
dividends,” says O’Leary, “you can sustain yourself through these massive corrections.”
You can still do this, he says, “even if you only have $50 to invest or $100.”
O’Leary, who owns O’Shares ETFs, recommends exchange traded funds because they are inexpensive and tax efficient. These ETFs are buckets of securities that track an index.
Similarly, other experts, including O’Leary’s fellow Shark Mark Cuban and investor Warren Buffett, recommend index funds, which you can think of as low-risk, low-cost baskets of stocks.
You may also consider using an app that allows you to buy fractional shares, says O’Leary. His app, Beanstox, and others like Stockpile do this.
“You shouldn’t have all of your money invested in stocks — that’s too risky,” says O’Leary. “You also need some fixed-income like bonds.”
And “Keep some cash around,” he says. “You feel much better if you have cash, even though your portfolio may be [temporarily] down 20 percent.”
“Diversification is the only free lunch,” adds O’Leary.
Provide assistance for funeral, Irish wake, cemetery headstone, and burial services.
In March 2013, D. A. D. took a vow of poverty, liquidating his 401K, ended up losing out to ‘storage war’, and failed to maintain life insurance payment. Although not in-debt, he has been afraid to be a burden to his family.
May God bless us and the U.S.!
November 25, 2014 DADAILEY@GMAIL.COM
(312) 237-0386; (970) 444-3168
Dear Editors of the Aspen Daily News:
Thursday’s Daily News had one astute letter to the Editor – that by Carl L. McWilliams of Glenwood. Homelessness (house/apartment-less-ness) will not go away without a concerted regional (Garfield & Pitkin Counties) effort.
- The involvement of the Salvation Army is one viable solution mentioned by McWilliams [please refer to the post-script below].
- Law enforcement respect of the homeless and other disadvantaged citizens is another factor.
- In the American capitalist economy, I’d suggest grants and funding by venture capital firms (VC) from the San Francisco area. Keep in mind that VCs expect a return-on-investment.The entrepreneurial approach is another solution. Take note of the five benefits listed below:
Typically after VCs supply seed money for overnight and day programs, they would like to see good return on investment (ROI). Their fund managers will expect to recoup, and then some, their investment. (a) Reemployment would be one return. (b) Savings of lives would be another benefit for the VCs. (c) A personnel pool could be developed via rehabilitation and re-employment into other interests (funded enterprises, start-ups, and companies) that the VCs have been managing for larger profits and ROI. (d) A positive public relations benefit would develop. (e) And they would ethically be doing “the right thing.” Should you have any additional comments or questions, please feel free to contact me via the e-mail address of www.maxsscoutservicesLLC.wordpress.com and DaileySunDave@hotmail.com.
P.S. Carl L. McWilliams recommends that local chapters of the Salvation Army utilize funds from the Ray Kroc Foundation to focus on three things:
1. Hunger relief
2. Shelter and housing options, post-haste
3. Reducing both the unemployment rate AND facilitating a workforce that does not figure into regionsl unemployment rates (disabled, those who have exhausted unemployment eligibility, many who have given up looking for work, long-time unemployed and underemployed, etc.).