Waching daily Oct 1 2018

Hi everyone welcome back to my channel sugarmama TV. if you haven't already

subscribed please make sure you do because this is your number one

destination for all your financial knowledge, financial information,

financial motivation and financial inspiration. Today I want to talk to you

guys about market volatility particularly around investing in shares.

So that you understand what market volatility is and you are actually not

scared of it you understand it and you actually see the blessing in disguise

that comes from high levels of market volatility. Alright the first thing is I

want to explain to you what market volatility really is. It is simply the

perceived value of an asset at any given point in time a share might be trading

at say $2.10 cents and something happens in the market where,

the share price temporarily drops to say a $1.90. Now that does not mean that

that value of that company has dropped is just dropped in value in perceived

value at that given point in time. Now if you can look at it that way you can then

start to see the actual blessing or opportunity in that share price dropping

in value you can then potentially pick that stock

up at a great discount. Just like if you were to go shopping to

your favorite shoe shop and you notice that they have a 30% off sale your money

now can but go further you can potentially buy more shoes for the same

amount of money exactly the same with market volatility it means you've got

more buying power for the same 1000 dollars you can now pick up more units

in that company you can earn more of that company which means you're

potentially buying bigger and better passive income streams which are all

going to help contribute towards your financial freedom so in fact market

volatility can actually be an amazing blessing in disguise and a fantastic

opportunity to pick up a bargain the second thing that I want you to think

about when it comes to dealing with share market volatility is time time

heals all wounds when you look back in history and all the major economic

events that have happened where there's been like a GFC eurozone crisis a war a

major health outbreak they've all been little blips on the radar when you look

back at history you can barely see that volatility

because it's been stretched out over time and you can see the human endeavor

and the share market trend onwards and upwards but when you look at that

individual event in an isolated period of time it looks incredibly frightening

and incredibly scary but the thing is over the long run when you stretch that

you realize that opportunities exist within that share market volatility this

can be a very very powerful opportunity to really build your wealth and take it

to the next level so understand that when these periods of market volatility

happen they generally last between 18 to 24 months before the market tends to

recover and did you know that since 1990 only two out of ten years are actually

negative returns so when you stretch out your period of time over the long run

those negative days and months where the returns go backwards are quickly

recovered and your share portfolio has healed the third thing I want you to

consider when it comes to dealing with the share market volatility is actually

a strategy and it is borrowing to invest say I have my share portfolio and it's

going along nicely it's diversified across a whole range of say 20 different

stocks and they're all industrial dividend paying stocks buy a hit share

market volatility the perceived value of my share portfolio has dropped but I see

the amazing opportunity around me but to potentially pick up more stocks but I

don't have any new money ready to invest in that portfolio an opportunity or an

idea that's available to some people in this situation is to borrow to invest

use other people's money to be able to seize these great golden opportunities

to buy the discounted price and increase our holdings and ownership in the

company now when you do this you can be done through a margin loan or a home

investment loan or you use the equity within your property to secure this loan

it is not the type of strategy that is available for everyone or suitable for

everyone is for people who have a comfortable appetite towards growth and

high growth investing but it is a way that you can actually maximize your tax

deductions and continue on building passive income streams through a great

opportunity now I will do a separate video around borrowing to invest

and gearing but I just wanted to give you a quick little introduction into

what it actually involves so that you can see when we hit periods of high

market volatility this can often signal a great time to start looking at this

strategy the fourth thing I want you to consider when you hit share market

volatility is to remember your big picture your long-term goal my personal

financial goal is to build up a passive income that more than covers my

lifestyle and my living expenses so when I see my personal private share

portfolio drop in value I don't worry because I know that my picture in goal

is well into the future it is a long-term goal and again I see that

opportunity I stopped letting fear and panic Drive my emotions and my actions

and my decisions I remove any irrational behaviors and then the fifth and final

thing I want you to consider when it comes to dealing with market volatility

and that is simply to turn down the news we are constantly bombarded with news

alerts and these sensor sized headlines but the truth is often behind those

alerts and those titles the facts are really clouded and they can then trigger

us to make the wrong decision a decision based on emotions and fear which often

they're not coming with regret when it comes to me looking at my own personal

private jet portfolio I definitely don't check it on a daily

or even weekly basis I probably check it once every 4 to 6 weeks and when I'm

checking it I'm looking at as a foot of hoping that there's been some market

volatility so I can continue to pick up more bargains and continue on building

my ownership in these business and building up my passive income streams

and as I said in point 4 I always focus on my long term goal I don't really care

about what my share portfolio is currently valued at I care about what

that passive income is and often when the perceived value of my asset has

dropped my passive income hasn't done anything at all and in fact I can now

buy the same shares at a bigger and better discount and increase and and

build upon that passive income with even more of a key Cup so now I hope this

really adjusts and reframes your opinion around market volatility and the you

guys is nothing to be feared nothing to be scared

and certainly nothing that's going to drive any emotional decisions it's a

blessing in disguise it's a great opportunity and it's something to be

seized so if you're building a share portfolio with me I want you to really

embrace share market volatility and get excited enjoy the roller coaster ride

because you see the opportunity that lies ahead for you that's it for this

video have a great week everyone and if you haven't already subscribed I'll see

you later in the week for lifestyle love ciao for now