Today’s investment world has a low cost of entry and is more convenient than at any time in history. Easier access to the marketplace for retail investors has made a dazzling array of financial products available. The huge selection of passively managed funds, such as index funds and exchange-traded funds, keeps costs down and allows beginners to build a diverse portfolio without spending long hours doing research.

Although the 21st century has brought social and economic upheaval, the general trend of the stock market has continued to point upward. Today, the patient investor can build substantial wealth simply by going online, investing in an exchange-traded fund, and watching its progress over the years. 

The current market climate is one where stocks are hitting new highs every few weeks. The stock market is an exciting place to invest, and many new investors enter every day, putting more and more money into the market, which in turn drives stock prices higher every day.

The reality is that prices will not continue to go up forever. Many of the investors today have never experienced a market decline of 25, 35, or 50 percent, but take my word that it happens breathtakingly fast, and the losses can be horrible. They take new investors totally by surprise. However, to the long-term investor (and honestly, if you’re investing, you must have a time horizon of at least five to 10 years) a stock market decline is your friend, because it lets you buy shares when prices are low.

The main benefit of this system is that it prevents you from investing all of your money when stocks are expensive, it takes the emotion out of the process, and it ensures that you continue to buy stocks even when the market declines so you will buy shares when stocks are cheap.

Would you like to know more? Buy the audiobook now to start learning these new methods.