 Think Tech Away, civil engagement lives here. This is the Prince of Lovesty. I'm your host, Prince Dice. Come all the way live from a beautiful state of Denver, Colorado. How do you maybe get us across the globe? Don't forget to hit that like, subscribe, comment, and share button. And in the description box, check out some of our other social media sites, like Facebook, Instagram, YouTube, and check out some of the cool Wesley Lyons series for your kids. But as always, I don't have a lot of time, and I definitely know you guys and girls don't have a lot of time, so we're going to jump straight into it. As you can see in the description box in the title, this video is about in a bull market, everybody is a genius. Everybody's a genius in a bull market and how to be smart. So I'm going to give you guys five tips on how to be smart. What is the bull market? How the bull market's been going. Stock that you can look out to five, four, five tips, things like that. Things to be worried of while we're running right now, and the longest bull market we ever had. But stay tuned. Now the first thing we're going to talk about is the description of what is the bull market. A bull market is when the market goes up. And reverse, a bear market is when the market does what? You guessed it, it goes down pretty smart. But anyway, the thing about it is right now we have been going eight and a half years of a bull market. In most cases, the bull market kind of returns sometimes in three to eight years. It's when the market has cycles. What we mean by cycles is that you have the times when the market is going up, then you have times when the market is going down. One thing the market, when it does go down, it has, when the market does go down, when it comes back up, it gets higher than it was before. So the long term, the market has continuously gone up. But it doesn't go up, up, up, up, up, up, up, up. It goes up, down, up, down, down, down, down, way down. Back up, way up, up, down, you know, whatever, almost like an elevator. If you can draw it out over 20, 30, 40, 50, 60, or even 100 years. But over these 100 years, we always see the market where it would go into runs of a bull run. Being, for a prime example, like in 2008, we had the dot-com bomb. From 2008, what happened? I mean, from 2000, we had the dot-com bomb. And 2008, what did we have happen? Boom, you guessed it. We had the mortgage crisis, right? So now, from 2008, all over the 2018, the market started to spin around about March 2009, and we've been in this bull market. But the thing about it is, when we're in the bull market, everybody is a genius. Tell you why you rise a genius? They buy, stop, and they see themselves make money. They're like, whoa, I made money, and I picked this other stock and they made money. I picked Amazon. I picked Facebook. I picked Google. I picked the marijuana company. I picked whatever the case may be. Man, I'm a genius. And what do people want to do when the stock market is going up? They want to buy more and more. And when they buy more, they can continuously go up. What's the first thing I do when I see an investment go up? Man, Facebook did very well. I should have brought more. I'm going to buy more. And sometimes, which is not a bad thing, you should always be investing. But when people start to invest, sometimes they become too comparable and they become a self-accredited genius because they say, hey, look, I'm making money. What are you going to tell me? And guess what? They become too friendly and end up buying too much, exposing themselves too much. And when the next market downturn happens, they're in a hurt lot. So you have two types of people. You've got some people that are jumping all over the market because, hey, I'm a genius now because I picked these stocks and I want to buy more. And I used to watch this stock and, man, I knew it. These stocks are doing well. I definitely want to get more. Then you have people on the other end of the house who are sitting on the sidelines with a ton of cash, but they don't want to jump into the market because they feel as though, man, if I jump into the market, then maybe I might jump in at the wrong time. Right now, this week, I brought this topic up because this is the hottest the stock market has ever been. The hottest, this is the hottest week. This hit an all-time high. It's very hot right now. And I see so many people, oh, look at this stock and look at that stock and look at my portfolio. My portfolio is doing well. This is doing well or whatnot. But one of the first things I want to discuss is why are we in this big bull market? One of the main reasons we're in a big bull market is after the bad market, we made a lot of monetary and a lot of policies to change the way we was doing business. One thing is we lower the interest rates. So we lower interest rates that mean that money is very easy to borrow. We lower interest rate now that it may cost you 10% to get a loan. Now it costs you 2% to get a loan. And the credit score, the credit check is not as difficult. So a lot of companies are buying, borrowing a bunch of money. And they are, they're borrowing a bunch of money and they're experiencing growth through money that they're borrowing. Now I'm principally to the bad thing because we all know that loose money were tightened. And when the money tightens, guess what happens when the money tightens? The money, when the money tightens, now those people who was used to going to the well and grabbing all this money, they can't grab the money. Then they start to have downturns. The customers are not buying like they once were. Now they become hard for cash. They don't have any cash. This is the end of closing. So that's what happens. That's the bad thing about when you're sitting in a bull market. I'm here to give you guys some tips because I don't want you guys to sit here and become too boastful. So let me give you what we're going to talk about. Number one, the number one thing is defense stop. Listen to some defense stop. Number two, reach. Real estate investment trust. Looking to some real estate investment trust. Number four is average in. And what I mean by average in, don't throw all your money in at one time. Slowly buy something every single month. But promise that if you got $5,000, don't just borrow the $5,000 stock that you want to buy now. Buy a little bit month after month after month after month after month. We'll explain that in more detail after that. Number four, save some of your cash. 10% of your money, 15% of your money. Should be in cash so you can take advantage of the next downturn. What good is if I told you today that Walmart is having a sale? Everything is 90% off. You don't have any money. You can't even take advantage of the sale. So set some money aside to take advantage of the sale. But the thing about it, you don't want to set too much money aside. It is a thing of having too much money and a thing of having no money. So you want to have a happy balance. We'll discuss that further. Number five, over the long term, the people that win in the market usually go with the flow. They don't try to beat the market. They outperform the market. They just perform with the market. They can go and align with the market. So those are the five things I want you guys to think about. The first thing, defense stocks. And what I meant to say to defense stocks, I meant to caveat that with dividend paying stocks. Defense stocks, usually like you have stocks like that in the defense industry, right? They don't, when a economic downturn happens, they don't experience a bad moment as much as other companies do. For a prime example, a defense stock doesn't feel as bad because it's usually a no-growth industry. They kind of consolidate. They kind of have a very slow growth rate. When the economy goes down, guess what? We still have to have a military. We still need airplanes, things like that. They're kind of in business. They're almost in the category of being recession-proof in a way, like utilities, things like that. Dividends. Dividend paying stocks, stocks that pay dividends, even though we know dividends are not guaranteed, but stocks that historically have paid dividends and have increased their payout in dividends, over time, usually are good stocks. So when the economy takes a downturn, those dividends that are being reinvested, they're buying at a lower price. Let me explain. For a prime example, Ford right now today is probably about $10, right? We have an economic downturn. Ford goes down to $5, even if you didn't purchase any stocks. If the stock is still paying dividend, keyword if, if it's still paying dividends, those dividends are being brought at the $5 price. So as the company moves back up to $6, $7, $8, $9, $10, $11, $12, you are getting in at a lower end and you don't have to really be putting more money in it. So the market can be very rewarded in that aspect. So those are the defense stocks, right? The next thing is defense stocks and dividend paying stocks are things you want to kind of consider or places you may want to look to put some money because even in an economical downturn, there's got to think about, take the stock by Facebook that doesn't pay dividends. If it doesn't pay dividends, how do you make money off the stock? You don't make money one way when it's going up. So let's say we get an economical downturn and Facebook went down for two years straight before it rebounded. That was two years of no gross. And also if they're not paying dividends and you're not investing in it again, you can't take advantage of the downturn. It was like Warren Buffett said, when it is raining gold outside, raining means it's a bad time outside, it's a bad day outside, but it's gold because you know it will rebound. When it's raining gold outside, you don't want to go out there with your hands in a pump, you don't want to go out there with your hands out, you want to go out there with buckets, you want to take advantage, meaning that you want to invest and take advantage of the downside as much as possible. So those are the things to think about. Another thing, REITs, real estate investment trust. Why do you have this thing? Why are you where the kicks can be? No matter what type of technology that we invent, now I don't know all the technology, but I know the majority of the technology that we invent is nobody has invented a place that we can call home, meaning that all of us would have to have a place to live. All of us would have to have a place to go. All of us have to have a place to call home. And when that happens, you should, when that happens, you should, you know, when we're, everybody's, long story short, everybody's going to be paying rent, everybody's going to be paying mortgage. Everybody's have to have a place to live. And what is a REIT? A REIT is a real estate investment trust. What is a real estate investment trust does? It buys shopping centers, it buys malls, it buys homes, it buys commercial buildings, and it rents those things out. And if those things have been rented out, people are paying money for them. It has a cash flow because as long as people have a place to live, we usually have a cash flow. Real estate. So in an adult economy, those things can still pay dividends and they still be profitable for you in your portfolio. Excuse me, I got to kick up a little bit. Also, averaging in, like I spoke about number three, averaging in. And averaging in is when I'm saying, hey, if you have $10,000 looking to get into the market, you just don't need to put all the $10,000 in a one-to-apple stock today and you brought it at an all-time high. Now, an economic downturn happens and you're just sitting there, you know, just for the promise of, you brought Amazon at an all-time high. It's a lot of high stock. You brought $5,000 worth and now you're sitting back today like, man, I got to wait till it rebounds. I don't have any money. And you have to wait till it gets back to the all-time high and go higher for you to make money. But if you do it this way, you buy a little bit over time, but you don't want to miss out because Amazon may go to $10,000. So you want to buy a little bit at a time. Every month, you buy a little bit. Every quarter or whatever the case should be. You never know what I'm going to tell you. If you're an investor, if you're listening to this 90% of the time, I can't recommend anything. But I'm going to say, hey, a good 70%, 80% of your portfolio should be the S&P 500 index, low cost index, commission-free fund. That should be the bulk of your portfolio depending on your age. We can't say that for everybody because if you are retired and receive a paycheck, of course, I'm not going to tell you to go buy a bunch of stocks. But those are things you should be considering. The next thing you should be doing is, the next thing you should be doing is while you're investing, you should be diversifying your portfolio as well. Find some every single month. I don't know what the next margin crash is. If I did, I would have been a whole lot better positioned today. And if you do know, please give me a call or shoot me an email. But since we don't know that, if we continuously buy stocks every month, every quarter, whatever you can afford, $40, if you purchase the index or you got a hot stock that you want to get or whatever, you do that over and over and over and over and over and over time, guarantee you're going to end up in a better position than you are today. That's just disco off of the 100 years of data that we have on the United States stock market. And the next thing is for cash, having cash in hand, cash 10% and cash. Some people say 10%, some people say 15%. You need to have money where that is easily accessible because think about it, this bull may run for another two, three, four, five, 10 years. I don't know how long this bull is going to run. So if you have a whole but total money just sitting in cash and you're 21, 22, 23 years old, you're missing out on some of the greatest moments in the stock market. So with that being said, I mean, yeah, it sounds right. It sounds perfect. Hey, I'm going to just let my money fill the sideline when the next market crash happens. I'll jump straight in with all of my cash and boom, that would be awesome. But of course, we don't know when the next downturn in the economy happens. Sometimes it takes a perfect match, a perfect blend. And that perfect match, a perfect blend is policies mixed with monetary policy. You know, policies where the president put something out, you know, who knows what the next economical downturn may be. It may have nothing to do with stocks, but it's something that's going to trigger the next downturn. But if you're not, if you're waiting on that, you may be waiting another two, three, four, five, six, seven years, losing out on some of the greatest returns on the market. So and if you are sitting money to the side and just going to wait for the next crash, you are my friend saying that you can predict the market. It's something that 2% of the best, most educated, sophisticated, experienced investors in the world can't do. So good luck in that. So I will recommend that. My thing is to put 10 to 15% down to the side, maybe put it in some bonds to where you can, you're not going to stop market returns, but you have an ETF that can, that you can liquidate at any time to be able to, you know, you're getting, you're getting a nice dividend off of it. And when the market goes down, you can, you know, whatever, liquidate that and be able to jump into the market. That may be a good place to hide some money or to put some money or whatnot. What are the next economic downturns? Now another thing is number five, go with the flow. I've seen so many people load their stock, their portfolio up, and what they do, they send me strange shots of their winners. Oh, look at my Google stock. You're like, okay, that's the only stock you have? No. My Google stock is up 100%. Well, what about the rest of your portfolio? Oh, well, you know, I'm breaking even here. And so what's the overall performance of the stock market? I was overall performance of your portfolio. Oh, 5%, 6%. So that 100% that you got at one stock is irrelevant. What's good is that if I had one hot stock that's doing well, but didn't have a bunch of crad2 ones, what is my overall performance of my portfolio? It sucks. And if my portfolio is at a whopping 6% when the market is at 11% for the year, I may want to just go with the flow of the market. If you can't beat them, join them. There you go. You got it right. You can't beat them. You got to join them. I tell you that all the time, when I look at the stock market, if I can't outperform the market, if your portfolio is unperforming the market, you need to be more involved into the market. And the thing is 90% of the investors will not beat the market consistently over time. You may find a stock market, and you may find a mutual fund that I perform the market one year, two years, maybe three, but when you look at it with 10-year span, 90% of those won't outperform the market. And the ones that do, they won't carry over to the next decade. And these are professional hedge fund managers. These are professional fund managers. So if you can't beat them, join them. Go with the market. Go with the flow. It doesn't take the genes to go with the market, right? I have tons of video here on my YouTube channel that tells you how to go with the market, tutorials, all of the good stuff like that. Look inside your 401K at work. If you have a 401K at work, if you're a young person, if you have a broad-based common stock S&P 500 fund, look into investing in it. Look at the fees that are associated with that. Because those are the things you're going to get a chance to invest in S&P 500 with tax breaks. Now, I'm not a tax professional. I'm not going to tell you to get all into the world of taxes, but that's the case for me. So those are the things I would like the guys to look forward to and to be involved in. So we're going to recap it. Defense dividend stocks, real estate investment trust, and average in and diversify. Average in and diversify your portfolio. Put 10% of your money in 10% to 15% of your cash. That's going to take advantage of that downturn. And also, go with the flow. Don't try to beat the market. Go with the flow, right? The people that try to fight the wave going out, usually drown. The people that surf and ride the wave as they're coming in, usually does pretty well. So that's the way I tell people to look on the bulk of your money, look into going to the future, and invest that way at a low cost, no cost, a low cost, no commission ETF. That's probably going to be your best way over the long term. And in that, you can purchase some individual stocks, some technology stocks to your taste, or maybe you may want to jump to something more risky, like the cryptocurrency, or something like that to go on to the future. But that's your very risky side. But the bulk of your portfolio, the bulk of the people that's listening and tuning in and watching this right now, or in the future, or in the podcast, you guys probably won't beat the market over the long term. Over 5, 10, 15, 20 years at that. You're going to always look back and be like, wow, I'm not beating S&P 500. Wow. You got to think about it. If you have a stock that's struggling in a very bull market, what do you think is going to happen when a downturn happens? Some people try to go in, look at those PE ratios, price to earnings ratio. Make sure you're not purchasing something that's way overvalued. Right now, the S&P 500 is 25 PE ratio, price to earnings ratio is at 25, which is very high. But we also got to remember President Trump passed a new tax reform law at the end of last year, I'm not mistaken. Giving a lot of corporate, lowering corporate taxes, which put a lot of money on book sheets for a lot of corporations. So the earnings are coming in to justify the market going up. But I don't want you guys to get caught up because everybody's a genius in a bull market. It's something that you can't miss. You pick the stock that goes up. You pick the stock that goes up. So you're like, oh, I'm a stock market genius. Be careful, be smart, because a downturn is coming. Anyway, guys, that's my time for today. Thank you guys for tuning in. I have you tuned in across the globe. And always looking in the description box and follow us on Facebook, Instagram, YouTube, all of the great stuff. Check out our books for us to learn. And also shoot emails and drop some comments if you've got questions. And to the next video, podcast, cartoon, or whatever else you see me do crazy around the globe, peace, be safe, I'm out. And thank you.