Is now a good time to invest

With all the fear and panic happening right now across the world, there are a lot of questions being thrown up about investing.

So, is now a good time to invest? 

I answer that, and put a whole lot in to perspective between FEAR and REALITY about the panic selling and volatility...

xo
Simone

P.S. Join me next week for the LIVE investing masterclass 

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Kiss My Money and Ms Wealthy exists purely for educational purposes only and should not be considered financial or investment advice in any way.

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If you want to keep on earn more and make more money you're in the right place. I've spent over 10 years learning from the most brilliant minds in money, wealth, and investing to take myself from 20 K in debt to a seven figure investment portfolio. Join in. As I share the secrets towards more growth, money investing and ultimately freedom. My name is Simone Masa Huggins, and welcome to ms. Wealthy's kissed my money podcast.

Ooh, there is so much panic going on right now in the market. Am I right? Uh, in between the news cycles and people fighting about toilet paper in supermarket Isles, there's, there's honestly just a lot of panic and fear going on, and it's also translating a lot into investing as well because there are so many eyeballs right now on the news cycles and on what is actually happening in the stock market. And here's the thing most of the time when the market's going about its day to day, you don't have this many eyeballs on it. And so what most people don't see or know is that volatility and fluctuations every day are part and parcel. It is a normal course normal part of the stock market and how it works. It's always moving up and down and it can easily fluctuate by one or 2% and that's pretty standard.

So this week there's been a massive fluctuation. Uh, early this week we saw the market dropped by 7% and that was pretty much, I mean, it happened in Australia. It happened in the U S and uh, in, in, in S at one point they actually halted trading. And this is something that is a measure that was put in place after the 1987 black Monday crash, where in one day the market crashed over 22%. So since then, they've put in some measures to make sure that the market essentially doesn't crash by too much in one single day. And so they have these measures in place. And what that means is they will Holt trading just to give, you know, traders some time to just pause and reflect and just think about, and maybe step back from the fee and panic that so many people are getting stuck and trapped into right now.

And I want to talk about that in and give you some perspective and give you some fear, verse reality facts, uh, to help calm the nerves on this. And then I also wanna talk about what you can actually do as an investor, uh, and also how you can make this opportunity work for you because you guys riches a made in recessions. And I don't say that lightly, and I know there might be some eyeballs going on right now. And yes, I always talk about do not try and time the market. However, if you haven't started investing yet, and if you have been thinking about investing, or even if you are an investor and you have more funds that you could be putting in well now is right now a time where we don't see every year, right? We don't even see every five years. This is something that happens every seven to 10 years.

And I will reiterate guys, this is part and parcel of how the stock market works, fluctuations corrections crashes happen. Okay. And they have been threatening this crash for years now. And quite frankly, I am so glad it's finally here and happening so we can get it over with and move on. And by the way, I completely forgot to mention that next week I am running another live masterclass. You know, that if you've been in my world for a while, I don't do these very often. And if you can't catch me live, you can catch the replay, but it's only available for five days afterwards. And this is partly because I don't want to leave up, um, access to stock market knowledge when the market changes, and then you have questions for me and I can't answer them. So this is why that masterclass is only available for a short time live.

And then otherwise you can't catch it. So I'm gonna put the link to sign up so you can get access to it. I would love you to join me live. It's so much fun live. And if you can't then make sure you're on the list to be sure that the team sends out the replay afterwards. Um, so I'll put the show notes in there, and I'm going to be talking about literally how to start investing, how to start building your stock portfolio and Holy crap, if you have not started yet, and you've been thinking about it and you've been on the fence, like this is the time, but habe, uh, I'm just, I'm so excited for this because this is the period of time where like we have the biggest opportunity to honestly have, you know, a rebound and the rebound happens so fast so quickly, and we see returns of 20%, 30%, 40%, uh, to recorrect.

Cause that's how the stock market works. It's how the economy is built. Um, so I'll put them in the show notes and come and join me how exciting. And yes, I will be talking about, you know, this volatility and fluctuation when you can actually do anyway. So back to giving you a little bit of perspective on, uh, the bloodbath that the news was calling it this week on the 7% drop and that it's not even in the top 10 of biggest drops in one day. So if you actually Google it, do your own research page, but it doesn't even rank in the top 10 in 2010, not even a recession year. Um, in 2010 we had a massive drop, I think it was of nine or 10%. And again, then new regulations were put in, uh, again to have to make sure that we didn't have major drops within one day, um, which was at the 70% Mark, which is why trading was halted this week for, I think it was literally for about 15 minutes, a half an hour, um, to kind of like periodically, you know, just hold trading, put in place, those measures.

Uh, so it's not even in the top 10, even then they were calling it a mass bloodbath. And then what happened yesterday? Of course, the market rebounded and kind of re corrected now, not, not completely, it rebounded a little bit in the U S a rebound rebounded five, 5%. And in Australia it was about two or three, I think. So, uh, yes, we're still down and yes, we're still in correction territory cause we have passed the 10% Mark and we are heading for bear territory, but we haven't hit 20% yet. We are teetering on that line. Uh, but we haven't yet hit 20%. Now when we, if, and when we do, then that means we'll be in bed. And that means, quote, unquote, we are in a crash, even though honestly, I don't particularly love that word. Um, but here's the thing, just because the value of your stock portfolio, if you do currently own stocks or investments, uh, has gone down your actual, the actual amount of shares that you hold hasn't changed.

Also your dividend payments haven't changed based on the number of shares you have. You still get the dividend payments. So depending on your strategy that you hold, whether it's at income or yield or capital growth strategy will depend on how you are actually affected. And also if you are massively exposed to, uh, stocks, or if you have some other income paying focused, um, investments like bonds, for example. And so, you know, when there's this mass market, like, you know, quote unquote bloodbaths, and the news is going nuts and all these eyeballs and what is happening on the stock market, you know, just remember to keep it in perspective because it's not every day that people are looking at the stock market. It's only like in, in times of extreme volatility and yes, things are way more volatile, uh, meaning there's a lot of up and down movement than normal.

And this is just a normal part of how the economy works. Uh, but it's, I also want to give you some other stats to put it into perspective so that you understand that the fear is not actually reality because there really has been a lot of false understandings. And when the, you know, the panic sets in and, um, when we stopped believing things on social media and we stopped believing the news, which again, when did that happen, right? Uh, it's not actually a true representation of reality, and it doesn't take into perspective and understand how it actually works in terms of everything else that's going on in our world. So I know that for example, the coronavirus, there's a big focus on the death rate and whilst the COVID-19, they're now calling, it is just another strain of the flu, excuse me. And every single year people die from the flu.

Most of the time, the elderly or those with preexisting, uh, particularly respiratory conditions, uh, whilst that happens every single year, yes, this Corona virus has a higher death, right. But, and here's the big, but there are countless and countless and countless reports of people having Corona virus and their BA them having barely any symptoms. And these, these people are just not getting the actual news cycle attention, but they have very real, there are people saying they have been to the doctor and they'd been tested for it. And yes, they'd been quarantine, but they literally have a sniffle that don't even have a cough that had had any breathing problems. And they didn't even think that they had it. It's just, the doctor went and got them tested for it. So there are plenty of people that actually think that they have a cold, and this is part of why it's hard to track and trace of this spread because it literally is just like the standard flu that everyone gets every single year.

And so the death rate is not actually properly reported because of the number of people that have it, that don't know that they have it because it's so ridiculously mild and it means nothing. Uh, and therefore it's not recorded as them having it. Here's the other thing. And I really want to drive this home and really it's just to contextualize this fear and put it into perspective. And I want to talk about death rates and I am not going to be, you know, I'm not going to stay on this and become like more but the whole episode, but it's to give you some perspective on what else is going on. Right. So right now the total deaths of coronavirus is just over 4,000, 4,200 and something to put it into perspective every single day, 26,000 people die from cancer like twenty six thousand forty nine thousand die from cat cardio, vascular disease every single day.

And just over 4,000 die from diabetes every single day. Like what every single day. And we are not even talking about, like this Corona virus has been around for, I don't know what a month now, a bit longer. I think it was December where they kind of started noticing it. Um, and it kind of started hitting hard in January, right? And now it's at about 43, every single day. More people die from diabetes. Do you know how people, how many people kill themselves every year from suicide over 2000, 2200, every single day guys. And I do not mean to hop on about something that is so horrible, but here's the thing like, this is the average number that we're not even focusing on like that we could actually change people's lives, that they didn't feel like they needed to take their own. And yet we have this fear pandemic, panic happening with all of us.

Like I said, fighting and toilet paper Isles, uh, about, you know, fewer deaths that happen, honestly from a flu, uh, here's a few more stats, mosquitoes kill on average 2,700 people like mosquitoes and human beings, unfortunately from just matter and accidents and whatever, uh, kill over 1000 people every single day. So should we be concerned about coronavirus? Yes. Should you wash your hands and should you not touch your face and should you not, you know, should you not fly to ILLI right now? Cause they're in lockdown and not go to China right now? Yes, of course. I just want to, to impress on you that we can stay calm, that it is okay. And that there are a hundred percent things that you can do about it. Not only about your own fear and panic around it, but also in terms of start educating other people too.

And if it is something that you're really seriously, really concerned about, think about all the other things that you could impact and other causes that take more lives like tenfold, mole lives every single day, compared to a flu. Right. And understand that you can also protect your self too. So when this applies to your actual finances and your wealth journey and investing, like I said, if you haven't started learning about investing, it's always a good time. So I know I said before, now's a good time to learn about investing now is a good time to invest. Guess what? I will always say that now, do I truly a hundred percent believe that it is true right now? Yes. And I think it's, to me it's even more heightened now, but I also want to stress that I am seeing a lot, a lot, a lot of comments and people, um, I guess saying, what do I buy?

Should I buy, should I invest? Um, I dunno what I'm doing, but everyone says now is a good time. And then kind of going on also panic buying. And I want to stress to you that please don't go out and do that. I want you to have a proper plan in place, have an emergency fund, make sure that you don't invest anything that you're not prepared to risk. Remember that risk and loss of two very different things, right? Remember that just because you're risking money doesn't mean you lose the money, but also like don't try and catch a folding knife. Meaning if it does continue to fall another 5% or another 10%, I mean, that is actually nothing in when you compare it to your entire investing journey. So say you were invested for 10 years. You'll have an like in terms of an annual compound growth rate, like you easily do 10%, right?

Because I mean, I talk about this in my masterclass about on average stock market returns, 10%, even through crashes and whatever, right? So some years it's 20, some years, it's a 10% loss, some years it's 40% gain, whatever, but also understand that you have to have a proper plan in place and you need to know what you're doing and you need to invest based on your personal risk tolerance. So please don't go and get stock picks or speculate from other people about what to buy, because there is a lot of volatility going on right now and all sectors are being impacted. There are a lot of people talking about, Hey, just invest in medical because like they're soaring right now, or banks are always a safe bet and genuinely buy that is speculating. And unless you are prepared to do solid fundamental analysis and be the next Warren buffet, uh, you know, you need to have a proper plan in place that is also a strategy around how you diversify and make sure that you protect your money that is based on you and how you want to invest based on your risk.

Right? So, uh, also note that we're in buffet in times like this, he is, he has a risk tolerance whereby his entire portfolio. And even for his clients, uh, with Berkshire Hathaway, his fund, uh, he even tolerates at times a 50% draw, draw down, meaning his entire portfolio will drop by 50%. He doesn't exit. So he hasn't lost. Remember it's dropped the value of it has gone down and most people do not have that level of risk tolerance. I also didn't have that level of patience. So while people do try and go and speculate and be the next Warren buffet, most people don't actually have the personality traits that enable Warren Buffett to be the investor that he is gone on a flat tangent there. But I'm just going to leave it and go with it. Now, I'm going to talk way more about this in next week's masterclass.

So please come and join me on that, but I really want to leave you with this investing is not a short term game, right? I talk about this and I joke about this with my investing bootcamp babes and even in the community that it's not a one night stand, right? It is a lifelong love affair, just like the notebook where you are in it for the long game, you are in it to build wealth. So you can build a massive nest egg and live off the cash flow of that. Right? Financial freedom is about having cashflow, pointless, having assets that don't pay you anything. And if you can't live off them and they don't actually generate income for you to live the life that you want. Uh, but to do that, you need to build and wealth accumulate, which means investing is a long term game.

It's also a regular game, meaning regularly investing. It's not a onetime thing. So it's something that only happens in a crash. It's not something that only happens when the economy is going well. And you know, I'm really noting this because for the people that are going, you know, I need to get in, what do I do? What do I buy? No, blah, blah, blah. My question is, well, did you invest 12 months ago when the market was at the same price and actually someone made a comment in someone else's group and it's a girl I know. And she made that comment about, well, if you're asking about whether to invest now, when prices are at this level, did you invest 12 months ago when prices were also at this level, and that should inform your decision and it shouldn't change if you didn't invest last year because you didn't think it was a good idea, why would it change now?

And I really want to drive that home because it's so true. And so reflective of the fact that it's always a good time to invest as long as you are doing it, right. You have a proper plan, you know how to do it, how to diversify and also not over diversify. And you're doing it regularly because dollar cost averaging really is the cornerstone of the multiplier effect and truly taking advantage of compound growth and compound interest. So I know I've covered so much and I've gone through a lot and I've probably thrown some words at you that you like, don't even know what that means, but I'm going to spend an hour or just over that next week on the masterclass. So, uh, you know, make sure you come and join and then if not catch the replay on that. Okay. But honestly, if you do have questions, please come and join the, the public Facebook group that I have the kiss by money, Facebook group, or, you know, shoot me a DM.

I would prefer that you get some, you know, solid knowledge rather than worrying or stressing about it. Cause if there is one less person that will be worrying or stressing or panicking, then that is better because panic spreads and what happens is out a MIG Dilla, the field center about brain activates when we hear, and it goes like on red alert when we hear things like coronavirus, because there's so much tension and fear and that energy and you guys, you know, I'm into, uh, you know, I'm into collective energy and tapping into the energy and tapping into the energy of the universe. And that energy is literally it's in the air. Like, and so it's no wonder that so many people are affected right now. I have definitely been feeling higher levels of anxiety and it's not around my finances and it's not around investing.

Uh, it's just the level of anxiety, I think just people and the new cycles and, um, the kind of stress. And I was even in the supermarket the other day at this week. And I mean, I'm not stressed about toilet paper, but I was walking past and it was, I just happened to be near that toilet paper aisle. And there were people walking past at going to the aisle and then like sighing heavily into risking and kind of like just expressing extreme discussed, and you know, even small things like that when you're constantly surrounded by kind of just that level of tension, um, we can definitely absorb other people's energy and we can definitely absorb what is going on around us. So also just giving yourself some time to breathe, press pause, uh, just take a moment and, you know, surround yourself with the things that you need to, to calm your nervous system. Cause I know that we are all right now on high alert. All right, babe, I'm gonna leave you with that. And I promise, uh, you know, the following weeks, aren't going to be old talking about coronavirus in the upcoming episodes. It's just, obviously I hope this has given you some perspective and uh, brought down the fear and panic with so much going on the final note. I'm going to leave you with just switch off the news. It's honestly, it's not helping anyone. All right, bye. Bye. I love you. I'll see you next week.