This transcript is automatically generated
Could happen folks anything could happen on a day like today has a lot of emotion a lot of concerns from our viewers involve an emailing me telling me that -- very nervous about what's happening in your portfolios I wanna bring in.
My good friend mark Mattson -- money founder and CEO and mark with all of this volatility.
I know -- you say you told me this before on an off camera that.
When when people start to panic and they get emotional about what they're seeing in the markets they make their biggest.
Tell me that again right down I think the viewers wanna hear you now.
That's just -- bears repeating not there's two things that drive most investors there's instincts.
And there's a motion.
And instinct is to run away from things that are painful 30000 years ago when you're trying to get away from us labor to tiger that work.
-- doesn't work when it comes to investing and the other instinct is to go after things that feel good.
So when you see gold at an all time high -- see stocks down the average investor.
Wants to sell what slow in by what's -- which is the exact opposite of what they should be doing.
We don't know what happens in the short run but we -- twenty years long term hope for investment so we actually have investors calling us and saying patiently PP putting more money into our portfolios.
On this dip and that's what it is in the short term it's a debt.
Make no mistake about.
You know and that's that's -- investing I mean that is what a lot of investment advisors would tell you to do is you gotta look for opportunities on -- days.
Like today companies that they do pay decent dividends Coker apples -- GE's.
You're absolutely -- they're not her temper and -- that out.
So we right but we have to also recognize that people are afraid and one of things I tell people.
Is when it comes your allocations if you're not sleeping at night and you have too much exposure to equities so just because you buy an equity cheaper won't help you sleep at night if you really have too much exposure OK I think what people need to do is recognize that we're not your -- -- -- grandfather's market.
It's been pretty much computer driven out the average trade in New York Stock Exchange -- to sell doesn't last more than ten seconds.
The news is being digitized and did right into the -- of the computer and the computer so concerned about the -- which is why we follow that because the more that's volatile more computer says there's money to be made here and a short trade.
So we seeing all this volatility because the market is being run by Mr.
Spock from star track that -- all unemotional where it used to take.
You mentioned rationalizing -- it.
Okay your flight wanna point -- my viewers to an intraday chart -- would get an update on the guys that you so much of the Dow Jones industrials 101021 we're now down more than 400 points.
We're seeing -- -- -- can is bringing this up its program trades.
A lot of times we have a certain kicks these program traders have to make institutional.
Investors people that are running your 401 capable of running your pension they have to protect you.
The folks at home and that is what they're doing right now mark I just wanted to bring you wonder what we're saying this volatility and the Dow down.
418 point Cisco backs this goes back to.
Mark the fear that our viewers are are sensing right now is -- seeing another market sell off today.
Here and -- -- I think that's a good reason that most investors should have a portfolio our average investor has about 70% equities 30% fixed income.
And you need some short term fixed income where you can rebalance and buy -- equities while they're low and died you need to be prudent understanding the volatility look.
The volatility you know let's not -- on short term trading.
Because it's always been volatile there's no increase in standard deviation -- the market.
Compared to the Great Depression or 7374.
Volatility is always there but that randomness in return is where that actually actually the premiums come from if it wasn't random unpredictable -- short term it wouldn't be a long term investment.
And cat but the volatility he's been that I agree with that but now we're seeing -- in terms of hundreds of points not tens of points.
The -- was decades ago.
And it was a big numbers as a percentage it's about the same right but big numbers French people out and -- make for good headlines and that's part of the part psychological I called the head trash and -- -- think in terms of percentages not numbers and people be a lot better off.
Well Greg has got some ideas about emerging markets folks this across we're gonna get about towards the end of the show Mark -- founder and CEO of massive money on thank you very much it's great to have you on a day like today he's I was.