you ever see a graphic that's so stupid that you want to talk about in a YouTube video no
well I did today we're going to be talking about investing in statistics that will make you think
about the way that you're doing things they may be something that goes along and makes you feel
yes that is something that I'm doing that feels really good or something that hopefully will
change your Viewpoint and get the discussion going in the comments the reason why I wanted
to make this video is I saw this graphic it was a survey of Americans that had them respond on
how confident they were that they could beat a specific animal in a fight you look at it 72
percent of people think they could beat a rat in a fight I feel like that number should be higher
but when you go down to it chimpanzee 17 those things are vicious but the one that really blows
me away is that six percent of people thought that they could beat a grizzly bear in a fight
people are stupid in statistics really group people into categories like this so I wanted
to talk about some of the really interesting investing statistics that I found that have
made me really think about the trends that we're going in and how we can improve as investors as a
whole there's no reason to kind of look at these statistics and go okay yeah these investors are
idiots here's how we're going to do it we're going to talk about how we can try to push the narrative
on how we can improve instead of looking at stuff like this and being like people believe this is
the best way to invest I don't think so 90 of people that watch my videos are not subscribed
so be sure to hit that subscribe button and let's get right into it the first one is that investors
have held stocks for 5.5 months on average and this number has continually gone down over the
past couple years this 5.5 months is very recent it's gone from the end of 2019 it was 8.5 months
it was 14 months 20 years prior in 1999 and the current average holding times are shorter than the
record low average of six months that took place right after the Great Recession in 2008. the main
takeaway that I get from this is that people are too worried about investing in the overall Mark
obviously there are awful things that happen when it comes to the way that the economy goes
together with the stock market and yes sometimes emergencies happen and you have to sell your
stocks but it's the idea that people see the stock market going down they see all these crazy giant
Red Graphics that we see on YouTube maybe they go on CNBC and they see some of the headlines
but it's the Panic that sets in as the market goes down instead of seeing it as an incredible buying
opportunity the stock market on average goes up up 8 out of 10 years and in the two years on average
that it goes down we really need to take advantage of buying the reliable stocks at a discount that's
why I've continually bought in 2021 and 2022 as the stock market has fallen because I see these as
buying opportunities instead of the Panic Button as oh we're going to take our money out of the
market because as we know humans on average are awful at trying to time the market so when I look
at this I see this as people are either investing in two volatile stocks and the volatility
has made them decide they needed to cut losses because their stock is down so much or if they're
just not used to the possibility that the market goes down when we look at younger investors people
most frequently got involved in the stock market in the past two years since the pandemic really
started when interest in the stock market really spiked but since that time we have not seen a lot
of negative news stories up until you know the first start of 2022. so this is a lot of
people's first bear markets and first time that their stock market has taken a major hit and as
a result people are owning stocks for less and less time we're trying to maximize our time in
the market and not trying to time the market so if you see a huge headline about your stock and
it really makes you panic and wants to sell the stock that may be an indication that your
positions and your portfolio is too aggressive and that's why I've made the switch in the past
year to dividend stocks I'll put a video up on the screen right now about the dividend snowball
and why I think it's my favorite way to invest overall and especially while the market is down
so that was the first statistic that really jumped out to me number two 18 of Americans
plan on investing more in 2022 than 2021. this is you know a year old 2021 was a fantastic year
when it comes to the overall Market but it kind of goes along with this first statistic that people
are more likely to invest when things are going well as opposed to when things are going poorly
we know all of the statistics about you know bear markets on average last you know 14 months so we
need to take advantage of that and just because you see that the market is down you should see
that as a buying opportunity and not a reason to panic yes there are some stocks that I would not
touch with a 10-foot Pole right now because of the market conditions but these Blue Chip stocks that
have been around for the longest time and have the track record of surviving Global conflicts
recessions high levels of inflation makes me confident in their abilities to recover much
quicker than the overall Market so when I see this number it shows that 62 percent say the current
inflation rates are too extreme for them to take any action in the market inflation is the reason
why your money is going down in value and yes you have some of the positives about the savings rates
have gone up uh in bank accounts but it's not going to outpace inflation the only thing that is
going to do that is investing in the stock market and that's why it's so critical to put your money
to work instead of just having it sit there yes you'll see the interest rates start going up and
instead of getting you know one cent per month you'll get eight cents per month that's a huge
increase when you look at it percentage-wise but you're not going to be able to outpace inflation
which is still relatively high sitting around seven percent the one Saving Grace that I will
say about the statistic is at the very bottom in case you didn't read it I'll highlight it again
73 of gen Z investors actively bought or sold stocks exactly because of the current marketing
conditions and 43 of them say that they'll invest more in 2022 than in 2021 so the younger investors
on average are being more opportunistic when it comes to the market conditions but we want to
push that to everyone we don't want to just to be the young people we want it to be everyone because
the whole idea of investing in the stock market is that everyone hopefully can benefit from them
instead of making rash decisions that are going to result in losses and some distrust in the overall
market number three was a big one and it's that 33 of people believe that real estate is the best
long-term investment if you are using surveys from the past year or two that would make sense we've
seen housing prices go up significantly we've seen interest rates be so low so it's become a very
attractive time to buy real estate and people may think that is the best way to grow well for the
long term there are some positives to it yes you can use leverage that's kind of what you know the
mortgage is all about but it's the idea that we've seen this crazy level of price increases that are
not going to be sustainable and we've seen the housing market start to slow down significantly
so for people that bought at the end of the boom their prices and their houses are probably worth
less than they bought it for and when we look at the long-term rates on how housing prices
have increased over time the numbers that I could find that the year-over-year increase on average
from 1992 up until 2022 was 4.6 percent which is a pretty nice return especially when I mentioned
people are able to use margin by taking out loans to really catapult their their wealth as they
start buying houses but it's the idea that most people's money is tied up in their houses and it's
not liquid so you can be house rich and cash poor and that's kind of the idea behind it so let's
compare it to how the stock market is done during that time the website that I use only goes back
until 1995 but from 1995 up until 2022 the S P 500 had an average annual Total return of 9.09 during
that time time which is double uh what the housing market had done during that time it's the idea
that people view the short-term results as being able to extrapolate it for the future if we saw
the crazy increases in house prices that we saw in the past two years for the next 20 years no one
would be able to buy a house so it's not going to go that way forever it's just a short-term Trend
because of the overall market conditions that we already saw so it's not going to be sustainable in
the housing market likely is not going to be the best place to invest but you do have the positives
of being able to put more of your money to work for you because instead of paying rent to someone
else you're able to pay off your mortgage which in theory builds equity for yourself so that's
a positive but statistically real estate is not the best place to invest overall when it comes to
returns likely the stock market is going to be and the final statistic that I wanted to talk about
in today's video is that the median retirement account value for people underneath 35 in 2019 was
less than twenty thousand dollars so we can look at this and say man people are really slacking
when it comes to retirement savings but the spin that I wanted to have on this is that if you are
under 35 and your retirement account is between zero and twenty thousand dollars you're not that
far behind it's the idea that retirement and just investing overall starts out really slow you start
putting in you know 100 bucks a month and it feels really slow you finally get to the point
where it's a thousand dollars and it feels like a good win and you start looking to the Future about
retirement and how much money you're going to need to retire and it feels really bad because the
whole idea is if you're making 10 a year which is what we're aiming for based on historical ranges
ten percent on a hundred dollars uh is ten dollars and as we get up to a thousand dollars that's only
a hundred dollars and that doesn't really feel like a lot but the idea that it starts chugging
along as the dividend snowball you're pushing it down a hill and it starts picking up more
and more steam your returns are going to be more and more exciting so while you're early on the
returns aren't going to be amazing but it's the whole idea of trying to come up with consistent
ways to invest adding to it on a reoccurring basis which is why I think our recurring Investments are
so important but it's the idea that if you're underneath that age bracket of 35 you may not
be as far behind as you thought you might need to take some steps to try to increase your savings
rate so that you can save up for retirement more than you were doing in the past but it's the idea
that you can catch up relatively quickly we've seen the Roth IRA contribution limits go from 6
000 up to 6500 and this is one of my favorite ways about Building Wealth because that Roth
component means that it is post-tax dollars so you've already paid taxes on it but all of that
money that grows in that portfolio is growing tax-free so if you put in six thousand dollars
this year and six thousand dollars next year all of the money that comes from that is going to be
tax-free as you decide to take it out would by the time you retire so there's so many positive
ways that you can take advantage of being young and invest in the stock market and just because
you see your portfolio and your account size is really small at this point that's not a reason
to get discouraged and stop investing it's a whole way of it's going to start slow for a
long time but we're trying to build habits when it comes to investing and after a while it's really
going to start picking up steam and instead of making a hundred dollars a year you're going to
start looking down and wow you made five thousand dollars in a year and it's really going to start
taking off as you get older and older and start getting closer and closer to retirement age so
if you look at the graphics and you feel like you're behind there's a chance that you can
catch up relatively soon it's a whole idea of if you start changing your habits now you can
build Financial wealth for a lifetime something that you can pass on to Future Generations it's
just the idea that you need to get the Habit started now and the best time to invest was
yesterday and the next best time is today so these are some of the investing statistics that
I thought were really interested in it goes on stuff like savings rate it goes on best places
to invest retirement accounts and I thought it was really interesting so let me know if
which of these statistics you thought was the most interesting and are you part of the six percent of
people that think they could beat up a grizzly bear let me know in the comments down below
up on one side of the screen right now are going to be two previous videos on
investing and behavior on the stock market and on the other side is going to be the Subscribe
button I'm hoping to get to 10 000 subscribers by whatever date just trying to see that number
increase for once thanks for watching my name is Andy and I will see you in the next video