On today’s episode, we’re going to talk about who won and who lost when it comes to investing over the past two tumultuous years since the market meltdown in March 2020.

When people do well when investing are they doing something different than the rest of us? What separates the winners from the losers? As we spoke about last week, the market has been a rollercoaster ride since 2020. Most winners have a plan, they stick to it, and they don’t react to inflammatory news stories.

On the other hand, losers attempt to time the market, sell low and buy high, and make emotional decisions that often lead to poor results. A winning strategy is all about staying disciplined and sticking to a plan. Americans have gained an average of 26 pounds over the past two years. (Yikes!) Is that surprising to you? At the start of the pandemic, a barrel of oil dropped from $60 a barrel to $18. No one wanted oil, that probably blows your mind in today’s inflated gas price world where a barrel is over $100. Looking at the broad measurements of the market the Dow Jones is up 87%, the S&P 500 is up 101%, and the NASDAQ is up 105%. Wait there’s more! Some stocks are up over 1,000%. (Hint – Elon Musk is very happy)

When we are exposed to seeing these big gains, we might start making emotional and greedy decisions when it comes to our own stake in our retirement plans. You may want to find the next Tesla or Moderna stock and the news is probably encouraging you, but it’s the wrong approach. There is no way of knowing who the winners and losers in the market will be in the next year or even five years.

It’s essential to stay dedicated to your plan. The stock market is always going to react to the news. True winners are disciplined, diversified, and determined in accordance with their values and financial plan.

On today’s Cash Connection, we will answer an e-mail on a local investor that is retiring soon and wants some non-financial advice.

If you have any questions for Don reach out at (732) 784-2867 or don@doncash.com.

Listen to the full episode to learn more or skip around to certain topics.

[0:53] – UNC versus Kansas

[3:43] – The market since 2020

[5:10] – Winners have a plan

[6:49] – Changes since 2020

[11:19] – Greed and gains

[14:20] – What makes a winner?

[16:55] – Waiting to get back in

[19:49] – Mailbag: “Non-financial suggestions for retirement?”