Wise Money Tools's Podcast
About This Show
A podcast designed to empower you to take control of your financial future.
We'll talk about money, investments, and strategies that actually work to make financial planning easy, so easy, you'll feel like an insider.
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Episode #34 - The DOW for the last 100 years
4 days ago
Hi everyone, welcome to another wealthy and wise Wednesday, glad you can join me today on this podcast and video, hope is going well for you. Today, I am going to spend quite a bit of time on this chart that I was recently given and I think it is pretty telling for a lot of different reasons. You know we have kind of got this mindset that wall street keeps us in, you know a few weeks ago, I shared you that cartoon of how wall street just want to keep you in the traffic, dodging cars, going towards wealth right down the middle of wall street and taking all that risk and those time where it is time to get out of traffic and I kind of want to depict this, showing you this chart because it is critical that there are times in your life based on what you are trying to do and where you are at. Maybe you want to be out of the traffic [00:01:23] and there are ways to do that and unfortunately a lot of advisers’ kind of missed this and don't really use this as part of a particular strategy. So let me kind of show you how this chart works, how it looks and then kind of talked about it based on where you are at, what stage of life you are in and some of things that you probably have to concerned about to make sure your money is going to be there when you need and would last as long as you do if not longer. Okay, so I am just going to bounce over my computer and put this chart and we will talk about it from there. Okay what we are seeing here is [00:02:07] industrial average from 1896 to 2016 and you might not be able to read a lot these little, they are basically things that happened and they occurred in the economy [00:02:23] along the way like for instance the one at the very top, number one is it says Ford basically Ford build the first assembly line in Detroit and then as you can go down you can see Russian, Japanese war and you get the Titanic sinking and you get basically all these events throughout history going on but what I really want you to focus on are these recovery times in the given period that we have seen market drops and you can see the very first one going back basically from 1900- about 1906. We had a pretty good market increase [00:03:23] and then about 1906 we had a 19 years’ period of time where the market just ran flat all the way to about 1924/5 and then we really started with the market and what basically happened there just to kind of refresh our memory. That is when borrowing and merging first came about. People could go out and leverag