In this video, Money Viking G (Greg) discusses why the best investment strategy for middle-class investors might be to do nothing, especially during turbulent times.
Here’s a breakdown:
- Historical Perspective: The video emphasizes that humans and investors have always lived through turbulent times [00:47]. It cites numerous historical events like world wars, economic recessions, and other crises, noting that despite these events, markets have historically recovered [01:02].
- Bright Future of the US: The video highlights the strengths of the United States, including its system based on the rule of law, capitalism with guard rails, valuable geography, and abundant natural resources [03:22]. It suggests that the US’s future remains bright despite periods of turmoil.
- Strategically Diversified Portfolio: The importance of building a strategically diversified portfolio that aligns with one’s values and risk tolerance is emphasized [04:45]. This includes understanding your capacity for risk and choosing investments accordingly, such as municipal bonds, CDs, treasuries, or blue-chip dividend funds for lower volatility, or allocating a portion to more volatile assets for higher potential returns [05:00].
- Avoiding News-Based Decisions: The video advises against making investment changes based on news, as news is often designed to sell advertising rather than provide objective information [06:43]. It recommends making decisions based on rational, strategic diversification over the long run [07:40].
- Bitcoin: The video mentions that Bitcoin seems to be behaving as expected, rising during market turbulence [07:48].