The 5 Worst Market Crashes of All Time (And What We Learned)

Markets have always crashed, from the 1929 Wall Street collapse to the COVID crash of 2020. What matters is how you react. Brian and Bo unpack the 5 worst crashes in history and reveal how to build a plan that thrives before, during, and after market chaos. Learn more about your ad choices. Visit megaphone.fm/adchoices

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Speaker 00

  This episode is brought to you by Indeed. You're ready to level up your business, but the pressure to find the right person to make that happen is intense. Indeed sponsored jobs can help carry the load. It boosts your job post to help it reach quality talent fast. Cut through the chaos with Indeed sponsored jobs. Get a $75 sponsored job credit at indeed.com/podcast. Terms and conditions apply. Hiring now? Then this is a job for Indeed sponsored jobs.

• 0:31Speaker 01

  Low energy, unfocused, foggy? You might be dehydrated. Whether it's hot yoga, over 100 degree weather, or too much sun. Gator Light, with a specialized blend of five electrolytes, was scientifically designed to help move fluids into the body faster for rapid rehydration. Shop now at retailers nationwide. Gator Light hydrates faster than water. Is it in you? Symptoms noted are signs of mild to moderate dehydration. Consult a healthcare professional if symptoms persist.

• 0:59Brian Preston?

  Markets crash, that's not new. What you do next, that's everything.

• 1:04Speaker 03

  Brian, I am so excited about this because there's a song and dance that the media does time and time again, when the markets crash, telling you that the market will never recover and that you should sell everything. And we want to cut through that noise today because we believe there's a better way to do money.

• 1:22Brian Preston?

  Today, we're going to look at the five worst market crashes in US history. The cause, the effect, and what you can learn from each so that your financial plan succeeds before, during, and even after volatility. Let's jump right in.

• 1:40Speaker 03

  All right, Brian, let's talk about the very first one. Now, this is the one that I think everyone has heard about. This is the Great Wall Street Crash of 1929.

• 1:49Brian Preston?

  This is the one that actually led to the Great Depression. I think even if you haven't, if you're not as familiar with the Wall Street Crash, you're very familiar with the Great Depression, all the breadlines and everything else. So, but let's give them the timeline and even kind of set the context of what was going on back then.

• 2:03Speaker 03

  Yeah, so this actual crash took place from 1929 to 1932. And as you can imagine, Headlines were pretty aggressive. Wall Street in panic as stocks crash. I mean, this was a terrifying time in our country, something that we had not seen up until this point.

• 2:24Brian Preston?

  Well, this is also what broke the banking system. You think about all the runs on the banks. If you watch It's a Wonderful Life, you see what was kind of a flash of what was going on. And there's a few key factors that we can kind of focus on is, and Bo, I think as, since we're doing five of these, I want everybody to have the context of think about greed and then think about the exasperation that comes from then, the fear that this creates. The human dynamic is amazing and you're going to see a trend through all these. And here's the key factor on this one, excessive speculation. There's some of that greed showing up and margin trading. Did you even know that they had margin trading back then?

• 3:03Speaker 03

  Did not even know that that was a thing in the 20s. What happened is people saw runups and they started pouring money into the stock market. They started selling their bonds, their fixed income, their conservative assets, and then they even started mortgaging their houses to get more money in. So this is literally, just like you said, Brian, this is like greed at an epitome, people wanting more, more, more, more, more, more, more.

• 3:26Brian Preston?

  And then, I mean, I couldn't believe when I read the stat that 1929, there were 300 million shares of stock that were on margins.

• 3:34Speaker 03

  Unbelievable.

• 3:35Brian Preston?

  This is the wild part. And then the lack of regulation and market exuberance, that obviously led to a disconnect from what the companies were worth that were on these exchanges to what the value that they were trading at. It just got disconnected completely.

• 3:50Speaker 03

  And then the federal government tried to curtail this. They tried to raise interest rates, but this was on top of a mild recession that had happened earlier that summer. So it was this perfect mix of events. And so when we think about this, we think about this as an investor, what did the actual numbers look like? What was the gravity of this? If you think back to this time period, it was actually an 89% drop in the Dow Jones Industrial Average.

• 4:20Brian Preston?

  I mean, that is devastating. That makes my stomach hurt just looking at it. And then if you think about this, this is why this sparked the Great Depression.

• 4:26Speaker 03

  Yep.

• 4:27Brian Preston?

  This is what, I mean, when you just see the stats of the GDP fell 30%, unemployment peaked at 25%. This is, if you, you get, I mean, think about that from a standpoint of your social group, your friends, your family. You know, people that have been devastated by the impact of this speculation and then the aftermath of all these people losing their jobs. It's really kind of a scary thing.

• 4:51Speaker 03

  And then that led to little to no liquidity available in the markets. You hear about the bank runs that caused over 9,000 banks to fail. And this was such a severe downturn. This was so, so gravitas that the market actually didn't get back to its pre-crash levels until 1954. That's how severe and how big and how bad and how aggressive this downturn was. And so the question may be, okay, well, what, what do we take away from this? What do we learn? How can we think about that market crash and apply it to present day? And I think the takeaway is something that we can all constantly be reminded of. Trees don't grow to heaven.

• 5:35Brian Preston?

  Now, people are saying, what, what do you mean by that? I just want you to know, I am old enough that I've lived through so many crazes that people just lose their mind about. Historically, you hear people talk about tulips. I'll talk about beanie babies. You can think about anything where people are chasing the latest, greatest trends to their detriment. I mean, they get, this is the, the human component back to the greed is that there's just never enough that people just to satiate the appetite that they more, more, more, and they take all these crazy risks. And then when the human element, the herd element where everybody panics and gets into fear together, you see, this is why, Bo, Don't go chasing the hot dot. Make sure you're not sticking all of your financial success to

• 6:20Brian Preston?

  one key thing being successful and you'll be in a much better place.

• 6:24Speaker 03

  Yeah, in 1929, people were margining up to 90%. It's like nine times your invested amount. That is so aggressive and so far out on the risk spectrum that even there were a 10% correction in the market, it would absolutely devastate you. It would completely wipe out your portfolio. Now, this is what we're not saying. We're not saying that the markets are scary and you need to avoid them and stay away from them altogether because market crashes are normal and they're a part of being an investor. But while they are normal and healthy, what causes them to be devastating is when your behavior becomes abnormal and unhealthy. So you should be making the same

• 7:09Speaker 03

  decisions during a market crash as you do during the bull market. And in 1929, that was not what people were doing.

• 7:17Brian Preston?

  Yeah, it's the common sense of the things we share on the show all the time. Don't go out there and leverage up to go invest and do all kind of other crazy speculative risky things. Know your why with your money and what you expect out of it. And you can actually use it as a really powerful engine to create the wealth and the life that you're dreaming for.

• 7:35Speaker 03

  All right, so we're talking about the five most significant downturns in stock market history. The second one actually occurred in October of 1987, and this is known as Black Monday.

• 7:46Brian Preston?

  Oh, wow. And this is one, I mean, when you see the headline, look at this headline here is that stocks plunge 508 points, a drop of 22.6%. 604 million volume nearly doubles the record. And here's the thing that shocked me, Bo, when I first read this, I was like, it talked about systems broke this. And we live in a world now where algorithms and other things, but the systems that you think about, you can put in limit orders, you can think about all the option systems. This really was one of those key factors where the program, programmatic trading and the portfolio insurance, which caused all kind of a Other strange ripple effects cause this huge drop.

• 8:27Speaker 03

  Yeah, so it's fairly complicated what actually happened, but basically there were complicated financial products that were involved and these programmatic trading triggered it to where it just became this pile on effect that bad went from worse and worse went from worse to even worse. And it fell precipitously so much that was the most significant drop, single day drop in US history. And this was amongst the fact that valuations were super high. And there were some global geopolitical things going on that had the public naturally a little bit more anxious and uncertain. So when the fear crept in, everyone ran for the exits rapidly.

• 9:09Brian Preston?

  So let's look at what this looks like visually. And here's the crazy thing. Now, we see the drop of 26%, but I just saw in that headline between 22 and 23% of this came in one day.

• 9:20Speaker 03

  One single day.

• 9:21Brian Preston?

  And what's crazy is when I look at the graph, when we were doing the show meeting and I was like, wait a minute, that doesn't look as steep as I would think. And it was brought, this is a Monday.

• 9:29Speaker 03

  That's right.

• 9:30Brian Preston?

  So when you look at this chart, realize you had a close on Friday. And because of the, we use Y charts. It basically tried to levelize out between what happened Saturday, Sunday. But this is actually a one day drop. So it is so much steeper than even what the visual shows. That is a gut check if I've ever seen it. Can you imagine you put in, you have a million dollar portfolio and you come out the other side and within a weekend you've lost $200,000? You're devastated.

• 9:58Speaker 03

  And so the aftermath of this was pretty significant also. Markets returned to their pre cap crash levels by May of 1989, but it's interesting, even though this was such a significant bad day and this actual downturn right here around Black Monday was so severe. A recession actually did not follow this. Everybody thinks, oh, these giant bear markets, these giant crashes, it moves the economy into depression. That was actually not what took place in 1987. There was no recession there. So what's the takeaway? What's the thing that you want to know or the thing? You ought to recognize one singular bad day or one singular bad event won't necessarily derail

• 10:43Speaker 03

  your wealth building journey, even though it does feel painful in the moment.

• 10:47Brian Preston?

  I mean, even on that previous graph, it showed, and we're going to talk a little bit more about this V-shaped recoveries is a common thread you'll hear, but it is important for anybody who starts investing. There's a reason we tell you this is long-term money, money that you can let sit out there for five to seven years is because even in normal markets, these are, we're doing the five biggest drops. But you think about the intra-year changes that we see, and I don't know if everybody, anybody's ever shared this with you, but if you look at it, we have a graph up on the screen and for my podcast listeners, it is very common that every year, including the good years, you're going to see intra-year changes or drops of around 14%. People don't know that. They just assume that when we talk about an annual rate of return

• 11:29Brian Preston?

  of 8%, 9%, it's going to come in those nice little prefabricated cubes. No, there's going to be a lot of gut-wrecking, gut-wrenching emotions that you better be prepared. It's just, it's a feature of this wealth building process, but don't get caught up in the emotional side of this.

• 11:45Speaker 03

  I think people don't recognize that when you hear years like 2003 where the market made almost 30%, they don't recognize that inside of that year, the market was down 14% or in 2009, and the market makes almost 25%. Inside of that year, the market was down 28%. Volatility and downturns and the market moving up and down is normal. That's why you want to make sure that you don't make rapid decisions when things get uncomfortable because the worst thing that you can do is try to get out of the bottom when it's going to turn very, very quickly. And I think these next couple recessions, these next couple

• 12:24Speaker 03

  severe bear markets, show us that because this is one, Brian, you remember all too well, the 2000 to 2002 dot com bubble bursting.

• 12:33Brian Preston?

  This is what's amazing to me is that these last three that we go, I actually was managing money through all three of these and the dot com bubble, just to kind of set the stage for everybody. Once again, everybody's chasing the hot pot and the trend. If you look at what the headline was on this, the year dot com turned into dot bomb. And I did live through this, and this is where it didn't matter if you were doing pet food, if you're doing grocery stores, if you just put dot com at the end, money was just being thrown out there after people because once again, the human factor is, is that we pile into things thinking that we're going to get into the latest, greatest trend, and it was devastating financially to a lot of folks.

• 13:11Speaker 03

  And so what ended up causing this was exactly that. This massive speculation on unprofitable companies. So the opportunity to look so exciting, so amazing, so incredible, that the fundamental numbers did not actually justify the valuations these companies were seeing. And what that ultimately led to was overvaluation, companies being listed for way more than they were worth, and herd behavior. You would go to the office Christmas party or to the family reunion, and all of a sudden you hear somebody telling you about, oh, this latest, greatest, amazing, high-flying stock they made all this money on. And so naturally you decide, okay, I got to pile in, pile in, pile in, pile in, pile in. And this FOMO-driven investing, this idea that if I'm not in, that I'm going to miss out,

• 13:57Speaker 03

  led to the market being unbelievably frothy and even irrationally exuberant.

• 14:03Brian Preston?

  Well, I think it's something, and we'll get to what the key takeaway is, but this is something just for you to internalize and think about, is that a lot of people, when we have disruptive new technology, you have to realize that this disruptive technology is going to take a lot and turn it into a few key players. So to have those few key players that end up coming out top of the heap at the end, you're going to see lots of destruction in the wake of that. So let's actually look at the actual numbers.

• 14:30Speaker 03

  Yeah, from this drop, from the dot com bubble bursting, if you look at the S and P 500, it actually dropped 49%. It cut in half over this time period.

• 14:41Brian Preston?

  Yeah, I mean, and this is widespread wealth destruction. We had, you think about this, the recession of 2001 kicked in. You also, this is the start of the lost decade. Now here's, I want to give you guys the context of somebody who was actually managing money through this, is that I actually, if you were a professionally managed portfolio with diversification that was goals-based in your risk profile, you actually did really good. This was a great time to be a financial advisor, because I remember how in this period, diversification actually got a lot of people through this and actually come out even better.

• 15:17Speaker 03

  Yeah, if you are someone and you're going through this downturn and you're going through this type of scary market, the things that have always been sound, continue to be sound, and actually continue to be even more sound, things like diversifying your portfolio, not having everything in one basket, things like dollar cost averaging. Yes, the market from the peak to the trough dropped 49%, but if you were buying every month or every quarter or putting your money to work every year, you were actually capitalizing on that decline. And if you have a long-term horizon, if you can zoom out and say, okay, yes, the market is down right now, my portfolio is down, I have some losses on paper, but my timeline

• 16:00Speaker 03

  is 10, 15, 20, 25, 30 years out into the future. If you can have that perspective, those tools, those keys can allow you to be a successful investor, even when these market environments present themselves. So what's the big takeaway we have from the dot com bubble bursting?

• 16:20Speaker 00

  This episode is brought to you by Indeed. You're ready to level up your business, but the pressure to find the right person to make that happen is intense. Indeed sponsored jobs can help carry the load. It boosts your job post to help it reach quality talent fast. Cut through the chaos with Indeed sponsored jobs. Get a $75 sponsored job credit at indeed.com/podcast. Terms and conditions apply. Hiring now? Then this is a job for Indeed sponsored jobs.

• 16:49Brian Preston?

  Hype is not a business model.

• 16:51Speaker 03

  That's exactly right.

• 16:51Brian Preston?

  And so like I said, a lot of destruction is going to be created. And I think a lot of people feel like they have to go scramble in and try to pick the next big winners. But it is worth remembering that 90% of actually fund managers who are doing this, getting paid professionally to go pick the next latest and greatest thing, underperform just the index. And that's over a 15-year timeframe. So guys, I'm telling you, innovation is going to create lots of opportunities for you to make money off of, but there's also going to be lots of destruction in its wake. So quit trying to pick the winners yourself and just buy the market itself. And I think you'll be rewarded in the long term in a much better way.

• 17:30Speaker 03

  Oftentimes, it's a more prudent investing strategy to just be the market than to try to beat the market. And the dot com bubble sort of underlined that to be true. All right, Brian, let's talk about the next great market crash we're seeing. This is the fourth one on our list. And this one is another one that you and I remember all too well. This is actually the Great Recession from 2007 to 2009.

• 17:53Brian Preston?

  Yeah, this one I always like because, and I love the icon we used here is because we have a house instead of an arrow going up and down. If you're noticing, this is how much intent and purpose we put in this stuff. And it's because we did have a complete collapse. And you guys, you now have the context. You know the aftereffect. But for everybody who didn't know, back then, everybody's saying, God's not creating more land. So houses can't go down in value. Man, oh, man, did we show that that is not the case. That once again, trees don't grow to heaven, is that look at what happened back in 2008.

• 18:27Speaker 03

  Yeah, we actually saw a number of key factors leading to this Great Recession. One of them, subprime mortgages. Banks were lending money to people that did not need to be borrowing money and they were borrowing it in droves. We saw excessive leverage. Folks that didn't need to be borrowing money anyways were borrowing more and more and more. And then financial institutions were recognizing, hey, we can package up all this borrowing, all this leverage, all these bad deals, and if we package enough of them together, we can sell them. As something that they are not in this beautiful storm of horrible decision making conglomerated together to create the largest downturn, the most significant drop that we've seen in the financial markets in the economy.

• 19:12Speaker 03

  Since the Great Depression.

• 19:13Brian Preston?

  Well, I mean, there was so much. Once again, the just the hubris of the human condition is that we have this overconfidence. We take something that's good. And then we just the greed of the situation is, I mean, I lived through this and I remember I even used one of these loans, a stated income loan. Can you imagine if your underwriting process where housing is such a hard thing, just asking somebody, hey, on your word, what do you think you have coming stated income? No, no, no, go out there and looking at pay stubs or anything else. This thing that shows just the amount of speculation and greed that went into this. And once again, valuations got disconnected from where the value of actual assets were. And if you want to see what the drop is, look at this.

• 19:57Brian Preston?

  We lost 49% over this two, two year period. And what this doesn't show, I mean, the graph shows it, but you can see a lot of this came in that fourth quarter of 2008, where the poop really hit the fan, where we realized this is where you saw Bear Stearns, Lehman Brothers, and all this other stuff where you realize all these people who were just heavy into these mortgage products got crushed.

• 20:22Speaker 03

  Yeah. From October 1st of 2008 to November 21st, that 49% loss that we saw of the Great Recession, 36% of that happened in that small timeframe. That's how severe that fourth quarter was. And so the aftermath was pretty severe as well. Not only did we see a severe global recession, not just here in the United States, but we saw it across the entire globe. We saw bank failures. We saw government bailouts. It was unprecedented times. Again, the most severe economic downturn that we've seen since the Great Depression. And again, fueled by greed and bad financial decision making.

• 21:00Brian Preston?

  We all remember the loss of jobs. Housing was just, you know, you saw neighborhoods that just, you know, had essentially PVC pipes on the land for, for decade. Because it's just that this devastated, I even have seen people talk about the aftermath of this is. The loss of trade because we just quit building homes.

• 21:21Speaker 03

  That's right.

• 21:21Brian Preston?

  That's why now we have inventory issues where there's just, I think this has contributed to the situation where now where housing is hard is because it had such a financial impact that just the supply just got disrupted and we're still paying the price for some of these decisions.

• 21:36Speaker 03

  And so what's the key takeaway? What things should you take away from this? Don't ever stretch yourself too thin or don't get too lean on cash. Don't buy into the hype, oh, they're not making more land and you can't lose money on real estate. So you need to buy as much as you can. You need to lever up as much as you can. You need to put as little down and borrow as much as possible. If you find yourself in a situation where people are trying to convince you to make financial decisions that don't even pass the common sense test, your spidey sense should start going off, then maybe this is not what I need to start doing.

• 22:09Brian Preston?

  Well, I mean, also, I think about the financial order of operations. There's a reason cash has two steps is because we all take it for granted until we go underwater and get in an emergency situation, like, oh, my gosh, cash is so much more valuable because home equity lines, all these other things that are tied to housing. It might be a little bit more quicksand than it actually is as stable or bedrock that we were presented. And that's why we've tried to help you. Not only have we given you the blow by blow of how not to fall into access to cash traps, but we have home buying calculators. We have a home buying checklist. Go to moneyguy.com/resources. Take advantage of these things because we're trying to educate you so you don't make those mistakes that history has already shown us the way for.

• 22:53Speaker 03

  Yeah, I think if we don't learn about our history, we are doomed to repeat it. It's why we come up with the things that we do and the resources that we have and the tools that we make available to you. These are all things that we've pulled out of these downturns, these recessions, these negative market events so that you will not fall prey to them. So you can keep yourself protected. But inevitably, even if you're making all the right decisions and you're doing all the things that you're supposed to be doing, there's a good chance that unknown unknowns are going to come your way, things that you could not. Not have imagined, you could not have planned for, may come into your purview. And that's exactly what happened with the fifth most significant downturn we've seen in the stock market history.

• 23:37Speaker 03

  This one actually took place in March of 2020. This was the COVID crash.

• 23:42Brian Preston?

  Yeah, now, look, I'm split in two different ways. I can't believe this many years has passed since COVID, but I'm also, you know, we are now far enough from it that we can take some and learn from what was going on. Like, if you look at the headlines, talking about nobody had this on their bingo card for the year is because it is the unknown. I mean, nobody, a pandemic, and then also the reaction, because, once again, we're herd creatures. So you can see, we had the worst route, the headline on this was the worst route for Wall Street since 1987. Which we already know how crazy that is. So, this is, here's, Bo, go over what are the key factors that actually led to this?

• 24:24Speaker 03

  Well, obviously, the first thing is there was a global pandemic at play. There was an unknown where everyone was scared about health risks that were very real concerns across the global public. And because of that, we saw economic shutdown. A lot of industries, people weren't allowed to leave their house. Industry was not allowed to operate, and we saw supply chain disruptions. We just took for granted the fact that, hey, the thing that I need to be here tomorrow is going to show up tomorrow. Well, if the entire supply chain shuts down, there are massive global economic impacts of that. And that's exactly what we saw during the COVID crash. And what the numbers actually would suggest is that in just over one month, we saw a 34% decline in the market.

• 25:09Speaker 03

  This was the fastest bear market we have ever encountered in the US stock market.

• 25:15Brian Preston?

  Yeah, I mean, and I think if you were reactionary, you probably got yourself in a heck of a situation, because it was one of those things where there was a lot of, the aftermath was pretty massive stimulus. I think about how, you know, we were paying people to basically be home. We were paying businesses so they could do payroll. We, now, It got us through it, but we're still, we don't even know how we're truly going to pay the price on this for all the debt and other things we've taken on, but it definitely created a lot of stimulus and that, but it is because all this money was thrown at it, it was the shortest recovery in U.S. history. And that's why that V-shaped recovery is a legitimate thing. And that's why sometimes the best thing you can do, even in bad situations,

• 25:59Brian Preston?

  is do absolutely nothing because reacting is not the course of action. And that's what key takeaways, and this is what, Bo, we're going to talk about what you can do before, so that it's good during, before, and even after. The key takeaway is control the controllables.

• 26:16Speaker 03

  Yeah, there are, there were certainly things in COVID that we did not have any control over. There were so many unknown unknowns, but there are things that we did know. And one of those things is, hey, I had a financial plan going into this pandemic. And if it's a sound, well-thought-out financial plan, it should be good before craziness happens. It should be good while craziness is going on, and it should even be good after the craziness passes. It's why we want to have things like emergency reserves of three to six months of living expenses, or if I'm a retiree or someone living off of my portfolio, if I had 12, 18, 24 months of liquid living expenses readily available, I did not have

• 26:58Speaker 03

  to make any decisions in the midst, in the middle of COVID that had long economic impacts. For me, it's why a sound plan is a sound plan because it prepares for those things. So, control the things that you can control, and the better you do that, the more prepared you'll be for the things that you cannot control.

• 27:19Brian Preston?

  I know we're getting new people every month, and a lot of you are like, okay, it sounds good, but what's, what's this actual plan that you guys are talking about? Guys, paint by numbers. I mean, we literally have written the book so you don't have to go reinvent the wheel. This is the instruction manual. Go take advantage of it. It's completely free. Go to moneyguy.com/resources. This is going to protect you because you're not going to run into, how often in here, Bo, that we hear people running into, they ran up too much debt? Or are we, people just were so... So excited about how good their housing was done, that they bought bigger houses and they cut it so close. They didn't have emergency reserves and even built a system that's going to maximize the tax benefits. But then even get to the why. So you live your great, big, beautiful tomorrow.

• 28:01Brian Preston?

  We've written the instruction manual for you guys. You just have to kind of do it and don't just take our word. Cause we also want to show you, cause there's been a common theme is I think anybody who's lived through these and I couldn't believe that I've actually lived through four of these five things and I've managed money through three of these, these five things. And there's a consistency that literally consistent behavior and not losing your mind and letting the emotions overcome this. And that's why we have a great kind of close out to this. When in doubt, zoom out. And Bo, kind of, you can look at this. I mean, this graph is telling a huge story.

• 28:36Speaker 03

  Yeah. Even though we just went through the five most significant downturns in the stock market history. You may be thinking, guys, well, the stock market, it sounds scary and uncertain and volatile and uncomfortable. And maybe I should have just avoided it altogether. Well, even with those downturns, even with those significant events that have taken place in our U.S. economic environment, if you were to zoom out and just look at what the stock market has returned from 1930 all the way until present day, it's like 17,000%. So at any point in time, if you were an investor, if you were well diversified during the lost decade,

• 29:18Speaker 03

  you were still an investor that made money. If you were someone who was investing in the seventies, eighties and nineties, you were someone who was making money in the nineties, 2000 and 2010, you were someone that was making money. If you can zoom out and have a long-term perspective, it's not a matter of if a downturn is going to happen or if we're going to have a bear market, it's just a matter of when it happens. And are you going to be prepared for and recognize that this too shall pass? The market is up far more often than it is down and the ups are far greater than the downturns. If you have a long-term perspective.

• 29:54Brian Preston?

  Also, I think it's if you look at this graph and we think about like the great recession or the Wall Street crash. That was an 80-plus percent drop and I can't even, you can't even see that.

• 30:04Speaker 03

  Can't even see it.

• 30:04Brian Preston?

  So, because in perspective of history, it's so small. Even fast forward to the Black Monday, barely see it on this graph. Even 2000, the dot com and the 2000 Great Recession, they look so small. And so, a lot of you might be looking at this going, guys, does that mean the greatest days are behind us? Because this thing has had a huge run-up. I talk about this all the time. The law of accelerating returns and the fact of innovation of the 80s with the personal computer and then what happened in the 90s and early 2000s with even the internet and the proliferation and now we're in this new AI phase. When you hear me talk about the law of accelerating returns, guys, this stuff is speeding up. So, that's why you still have the opportunity. The big thing is, is just control your behavior.

• 30:48Brian Preston?

  Control the controllables, as we just talked about. And a lot of you are like, okay, beyond the financial order of operations, what does this mean for me? Because I have been doing this. I have lived through a lot of this. But guys, I don't know. I've now created something because I've lived through this. I have seven figures of success and I'm now, my simple life has become so much more complicated. How do I navigate this? This is your first time. And I get nervous for people when you're, especially you're the CEO of a multiple seven-figure enterprise. How do you navigate the complexity that comes just from this wild world we're in? Once again, the abundance cycle comes in because we will leave the porch light on for you. I want you to come, absorb as much of the free stuff we give you, but when your life

• 31:33Brian Preston?

  gets complicated and you worry about, hey, this is so big now, I don't want to make a mistake. Give us a chance. Go out there to moneyguy.com/becomeaclient and check out our introduction message, just so you can see what we look like when we put coats on, too. And you know, and I think you'll see that there is something to this, this abundance cycle that we've created since 2006.

• 31:55Speaker 03

  Investing does not have to be scary. Money is nothing more than a tool that allows us to achieve the goals that we have and putting our dollars to work for us is the method that we use to achieve those goals. And the more educated and more well Well-prepared you can be for the unknown unknowns, the more likely you are to have a consistent plan that you stick to over the long term. And if you can do that, you really can have a great, big, beautiful tomorrow.

• 32:21Brian Preston?

  And we just talked about crashes, and you can't help but think about crashes and use old Uncle Warren. Be fearful when others are greedy, and greedy when others are fearful. That's so much easier for me to read out to you than to actually live. And that's what we're going to help you become, that financial mutant. So you actually get excited when everybody else is freaking out. And we're going to continue to create this type of content. I'm your host, Brian Preston, and Mr. Bo Hanson, Money Guy Team, out.

• 32:48Speaker 03

  The Money Guy Show is hosted by Brian Preston and Bo Hanson. Brian and Bo are partners with Abound Wealth Management. Abound Wealth Management is a registered investment advisory firm regulated by the Securities and Exchange Commission in accordance and compliance with the securities laws and regulations. Abound Wealth Management does not render or offer to render personalized investment or tax advice through The Money Guy Show. The information provided is for informational purposes only, may not be suitable for all investors, and does not constitute financial, tax, investment, or legal advice. All investments involve a degree of risk, including the risk of loss.

• 33:21Speaker 04

  Now at Kroger, your points add up to more ways to save every trip. Use them your way to take dollars off groceries at checkout, or save at the pump. You can even save up to $35 on your next fill-up. Same points, more choices. And with low prices on fresh, quality food, plus digital and personalized offers tailored to how you shop, your dollar goes further. Redeem your points online or in the app. Kroger, fresh for everyone. Restrictions apply. See site or store for details.

• 33:51Speaker 05

  What if you could run your Oracle databases in the cloud you already use? Good news, you can. Oracle AI Database runs in every major cloud, including AWS, Google Cloud, Microsoft Azure, and OCI. Migrate your Oracle databases to the cloud of your choice today, simply, securely, and on your terms. Find out how at oracle.com/migrate. That's oracle.com/migrate. oracle.com/migrate.