Investing For Dummies. Eric Tyson
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Introduction
With each new edition of this investing guide, I find that the core investment philosophy I discuss within it has stood the tests of time and changing market forces.
During the financial crisis of 2008, things got scary. Large Wall Street firms were going under, stock prices were plummeting, and layoffs and unemployment rates were soaring. And all this was happening in the midst of the 2008 presidential election. Talk of another Great Depression was in the air. In fact, polls showed a majority of Americans feared that another depression was actually happening. Housing prices were dropping sharply in most communities, and more and more properties were ending up in foreclosure.
Investing didn’t seem so fun anymore. However, even though the downturn was the worst in decades, it had similarities to prior downturns, and people who kept their sense of perspective and followed my advice have enjoyed tremendous returns since the market bottom.
Now, fast forward to 2020. The United States was enjoying one of the longest continuous periods of economic expansion and the unemployment rate had sunk to a 50-year low. Stock prices continued to rise to new highs despite periodic setbacks. And then the coronavirus upset the good times and quickly reminded us that investing involves risks and sharp price declines, often when least expected.
I know from working with people of modest and immodest economic means that they increase their wealth by doing the following:
Living within their means and systematically saving and investing money, ideally in a tax-favored manner
Buying and holding a globally diversified