Investors’ decisions are mostly based on financial predictions made by so-called experts. So, when the news broke that we were about to enter a pandemic, investors and advisors were in shock. How do investors move forward when modern society is suddenly afflicted by an uncontrollable peril like COVID-19?

In this episode, Doug and Greg talk about the risks of poor financial forecasting, the truth about market corrections, and the true indicators for smart investing practices. 

Key Takeaways

Quotes

[10:26] - “This has been such a shock to society, especially a society that's been used to general comfort throughout life. I think if this would have happened 100 or 200 years ago, people would have just dealt with it and moved on. But now we're basically protected from most dangers in the world and modern society. And so having an uncontrollable danger like this is a complete shock to the system, and I think it's going to take time to come out of it. And I'm hopeful sooner rather than later.” - Doug Stokes

[12:35] - “It's impossible to forecast what's going to happen in the future. We were in the trenches dealing with human psychology and individuals that were dealing with some very stressful situations in March of 2020, and nobody could've forecasted that we were going to run into a pandemic.” - Greg Stokes

[22:17] - “As an investor, if you can't take the 10% or maybe even 20% correction in stocks─because it's going to happen statistically once every year with 10% and once every six years at 20%─then what's your alternative?” - Doug Stokes

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Disclosure

The information in this podcast is educational and general in nature and does not take into consideration the listener’s personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a final decision.