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8 Reasons Why the 1929 Stock Market Crash Won’t Happen Again
Every time the economy goes on a downward spiral, many people refer to the 1929 stock market crash, which is considered to be the worst economic event in modern history.
It’s often used as an example of how bad things could get. After the stock market crash, the US and European economies went into depression. Up to 25% of the US population was out of a job.
The stock market was also obliterated. At a peak of 381 points on September 3, 1929, the Dow Jones Industrial Average crashed to 198 in less than 2 months. It would take another 20 years before the Dow would surpass the 200-point level.1Source: Britannica
But will we experience something so draconian again?
That’s something experts like to predict. Headlines like, “Why The 1929 Stock Market Crash Could Happen Again” are always popular during a stock market crash.
As an investor and student of financial history, my answer is this: No, we will not see another 1930s-style crash and depression.
Here are 8 reasons why. At the end of this article, I’m confident you will agree with me.
Wise & Wealthy: Achieving financial independence and being an optimist
Welcome to Wise & Wealthy: A weekly newsletter full of proven ideas to become smarter and wealthier. I send this every Monday and every other Thursday.
#18 – July 14, 2022
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Wise
You probably wouldn’t guess this since I write about personal growth and investing, but I’m mostly a pessimist by nature.
Most of us have both optimistic and pessimistic tendencies. For example, a lot of people have a dim view of the future with the potential global recession and the prospect of a forever war in Ukraine.
But those same people might be optimistic when it comes to green energy or the ability to educate others through social media. It’s important to see the positive when you’re feeling negative, and vice versa
That’s the importance of having a realistic long-term view, which should be leaning towards optimism because we’re still here as a species.
No matter how dark the world can get, we should never underestimate the power of human ingenuity.
As many investors like to say, you have to be bullish on the future when you invest.
↳ Why It Pays off to Be an Optimist
Wealthy
When it comes to financial independence, people often set their sights on numeric goals.
- “Will a six-figure salary make me financially free?”
- “How much do I need for a comfortable retirement?”
- “Is 10 Million dollars enough to retire at 45?”
When we focus too much on money, we risk getting stuck in an endless cycle of earning more and spending more.
That’s why I believe financial independence isn’t only about how much money you make. It’s about how free you are from the never-ending trap of chasing money.
The person who spends more than they earn is never fully free.
Instead of trying to earn more, I’d rather focus on having a simple, sustainable, and enjoyable lifestyle.
When you enjoy your days and you consistently spend less than you earn, you have peace of mind; which is priceless.
↳ Why More Money Won’t Lead to Financial Independence
One interesting thing
Today I want to share an idea with you that I picked up from Sam Harris. I’ve been using his meditation app, Waking Up, for a few years now. One of the key concepts Sam talks about is this:
Become aware of the link between your thoughts and your impulse actions.
For example, when you’re doing something with a loved one and you see a message notification — will you be mindful enough to ignore it? Or will you “quickly check” the message?
When somebody does that to us, it’s annoying, right? So why do we do it? It’s not like we do it on purpose. It’s just where our attention goes.
When you meditate, you train yourself to be aware of these types of impulse actions.
Next time something like this happens, become aware of the thought and stop the impulse action. Let the notification slide. Focus on the thing that actually matters.
Thanks for reading! I hope you found this edition of Wise & Wealthy useful.
All the best,
Darius
Join the 7-day Stay Centered challenge
I’ve created a one-week email course that you can do together with a group. It’s called Stay Centered, and it will help you to reclaim focus and live a meaningful life.
When you’re centered, nothing can hurt you. You will have inner peace no matter what happens.
How to unlock Stay Centered
You can join the challenge for free. Every day, you’ll receive a short email with a small challenge that inspires you to live better.
I highly recommend sharing it with your friends so you can go through the program together. I did it with my team, which was a lot of fun.
Join here: dariusforoux.com/stay-centered
Best Decision-Making Articles: 25 Posts to Improve Your Decisions
Welcome to this page about how to improve your decision-making. We all want to make the best decision. But that doesn’t always happen.
Sometimes, we make bad decisions. And ironically, those decisions never seem to be bad at the moment. As veteran investor Charlie Munger says:
“Smart people do dumb things.”
You can never avoid making a mistake. However, you can do your best to avoid making dumb decisions. In this guide, I provide my best articles on decision-making.
On This Page
Wise & Wealthy: Comparing yourself and creating digital products
Welcome to Wise & Wealthy: A weekly newsletter full of proven ideas to become smarter and wealthier. I send this every Monday and every other Thursday.
#9 – June 2, 2022
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Wise
I’m hearing a lot of stories from people who want to make a career change. Something that’s more sustainable and enjoyable.
Over the past two years, a lot of things have changed. A lot of people felt the urge to do work that promised them the highest salary.
Now, I’m seeing more people who’d rather chase their dream, even if it pays less. We realize that life is short and hectic. We’d rather do something we enjoy.
That’s a great objective. The problem is that many people get sucked back into the rat race. I’ve seen a lot of people who started working towards their goals give up after a while because they got distracted.
They start comparing themselves to others and think, “Why is that person a multi-millionaire after creating one piece of art? Why not me?”
That’s dangerous. As soon as you catch yourself thinking those thoughts, stop. Focus on yourself.
Remember why you pursued something. I had many of those moments since I started chasing my dream of becoming a full-time writer. In my latest article, I share my thoughts on this subject.
↳ Want to Succeed? Stop Comparing Yourself to Others
Wealthy
Everyone with a computer and internet access can create digital products today. The entry barrier is very low. But simply creating a digital product/service doesn’t mean people will pay for it.
When we’re looking to create a digital product/service, the first question we should ask ourselves is this: “Why do I want to start an online business?”
If the answer is “to make money,” then starting a business is not the right move.
A business does not exist to generate money for its creator. Peter Drucker famously said, “The purpose of business is to create and keep a customer.”
You can’t create or keep a customer if your business doesn’t provide value. That’s what entrepreneurship is all about: Value.
The more value you provide, the more revenue you generate.
So focus on creating an excellent product or service. It’s not enough that your business is “good enough.” That’s the quickest way to fail.
↳ Essential Guide To Making Digital Products People Will Pay For
One interesting thing
digitalbusiness.school, my course for starting/growing a business that unlocks your freedom and gives you joy, is closing for registration tonight.
The last registration day is usually when the majority of my students join. I’m like that as well. While I don’t like to procrastinate, I do like to read all the materials before I buy something.
We want to make sure we benefit from a purchase before we spend money.
If you’re sure you will benefit from digitalbusiness.school, but not sure about when you should start, then I invite you to join today.
I want you to know that starting a business is not as daunting as it may seem.
Even if you don’t have experience, ideas, time, or knowledge, you can do it with this program.
Registration only opens once a year. If you missed today’s deadline, you won’t be able to sign up until next year.
Register here: digitalbusiness.school
Thanks for reading! I hope you found this edition of Wise & Wealthy useful.
All the best,
Darius
Join the 7-day Stay Centered challenge
I’ve created a one-week email course that you can do together with a group. It’s called Stay Centered, and it will help you to reclaim focus and live a meaningful life.
When you’re centered, nothing can hurt you. You will have inner peace no matter what happens.
How to unlock Stay Centered
You can join the challenge for free. Every day, you’ll receive a short email with a small challenge that inspires you to live better.
I highly recommend sharing it with your friends so you can go through the program together. I did it with my team, which was a lot of fun.
Join here: dariusforoux.com/stay-centered