Should I Invest in Stocks Right Now? My Response to You.

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I read my comments and a lot of people are asking me brian should i still be investing in stocks during the stock market crash so i’m going to break this down for you very logically it depends on your cash position so let me ask you a very honest question what are the reasons why you should be holding cash there are four reasons the first reason is so you’re going

To have cash in your checking account for day-to-day expenditures so you’re paying for your monthly bills let’s say your rents your mortgage your car payment etc you’re paying for daily expenditures so you swipe your credit card you swipe your debit card you’re paying for groceries gas coffee etc so that’s being paid for from cash in your checking accounts or maybe

You’re just using cash just straight up so you have cash for living expenditures reason number two you have cash for an emergency so these are for bigger ticket items we’re talking about things like medical expenses something related to your car something bigger unexpected and out of the ordinary reason number three you’re holding cash to save up for something

Bigger so you’re saving up for a car you’re saving up for a down payment on a house a vacation or something to splurge on so do you agree with me so far i mean that sounds pretty fair that sounds logical right and reason number four is that you are holding cash to jump on a financial opportunity for example if the stock market crashes that’s the best time to buy

That’s the best time to go in heavy you buy low you sell high so the question is based on your personal financial circumstances have you fully funded all of these cash categories if you’re lacking in one of these areas based on your needs then my answer would be no you should not be investing in the stock markets so let me spell this out for you just explicitly

If you cannot make ends meet then do not invest in the stock market if you don’t have money set aside for an emergency then do not invest in the stock market if you’re saving up for a down payment on a home just focus on that first and just so you know i previously made a video explaining why i believe that the stock market is going to go down more now circling

Back to my point number four the question is do you have enough money ready to deploy into the stock market to take advantage of the stock market crash now if you’re wondering how much money you should have set aside that’s going to depend on your situation but trust me you need to target a specific amount of money like you literally have to say like i want

Five thousand dollars ready to deploy into the stock market after it crashes so you have to put a number on it so it could be five hundred dollars it could be ten thousand dollars it again it depends on your circumstances now if you have enough cash for those four things then you can move on to step number two and step number two that would be looking at your

Liabilities take a look at your debts so for example the easiest example is do you have credit card debts if you have credit card debt then you’re probably being charged something crazy like an interest rate of 20 in this situation you would be better off paying down your credit card debts instead of investing your money into the stock markets if you pay down

Your credit card debt that’s basically like earning a 20 rate of return on your money because you’re going to be paying less interest a 20 rate of return that’s going to be very difficult to beat in the stock markets so the credit card that i mean that’s such an easy example because the interest rate it’s just ridiculously high we all know that now you have to

Take a look at your other debts like your mortgage so a lot of people buying a home right now they’re going to be getting a 5 interest rate on their mortgage or higher in this situation your interest rate it’s going to be much lower compared to a credit card right so here you have to make a judgment call and you’re going to just go on your personal preference so

With your extra cash do you want to use that money to pay down your mortgage or do you want to use that money to invest in the stock market again it’s your call but regardless of whatever option you pick just know that you’re going to be in a good situation that’s a good position to be in and i made a video specifically about that situation if you want to check

It out so if your cash situation is good like those four categories like you’re good and then you take a look at your liabilities and you’re good there then you should be slowly and methodically investing your extra money into the stock market i would recommend that you do something like setting a schedule and that’s what i do personally like for example like

On the 15th of every month you’re gonna deploy your extra money into the stock markets so remember and i can’t stress this enough this is under the assumption that you fulfilled category number four that you have a reserve of cash ready to deploy into the stock market after it crashes so we’re talking about your extra cash each month so your surplus so with your

Surplus you should be investing that slowly and methodically the reason is if you have money just sitting in cash for no reason just outside of those four categories then you’re losing your money to inflation you’re simply holding more cash than you should be and that’s a guaranteed loss and that’s a needless loss but some people might say with my extra money if

I invest that into the stock market and the stock market crashes then i’m gonna lose money that is true and i completely acknowledge that however that’s why you have your reserve cash just ready to deploy to take advantage of the crash and you may make the argument that i’d rather lose 10 percent to inflation than 30 in a stock market crash but let me respond

With two things the first thing is a stock market crash is most likely going to happen but it’s not guaranteed if the stock market doesn’t crash and it shoots up then the money that you’ve been investing little by little will go up and you win if the stock market does crash you’re going to have your reserve cash to buy stocks at rock bottom prices which is going

To be a huge win so my perspective is that this is a win-win situation market goes up you win market goes down you win and the second thing i want to say is that we are expecting a stock market crash in this situation you want to position your investments defensively so that you don’t end up losing 30 if you think that the stock market is going to go down you want

To stick with and you want to buy the more boring profitable companies that are paying dividends so when the stock market is doing bad these types of stocks they’re not going to go down as much when the stock market is doing awesome these boring companies these boring profitable dividend companies they’re not going to go up as much compared to the risky stocks

So we’re expecting more downside risk so i would suggest that you stick with these boring profitable dividend-paying companies so after the stock market bottoms out and you think that we’re going to go back up that is the time so that’s the point in time when you want to reallocate some of your boring stocks for the more risky ones and i don’t i don’t mean risky

Like bad investments i mean growth stocks tech stocks and small caps i made this video based off what people are asking in the comments so let me know if you agree with me if you disagree if you disagree that’s absolutely fine i would i would like to understand your perspective and open up dialogue with you and if you want to open up a stock account so i’m going

To leave you a link down below so if you use that link you’re going to receive six free stocks as a sign up bonus the value of the stocks is going to be a total of thirty four dollars guaranteed as a minimum it could be as i mean they say it could be as much as twelve thousand six hundred dollars that’s unrealistic you’re most likely gonna get somewhere between

Thirty four dollars to five hundred so thank you so much for all your support please subscribe and i wish you a very nice day

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Should I Invest in Stocks Right Now? My Response to You. By ClearValue Tax