YouTube Guru Gave 500k Followers Bad Advice—Here's the Math
Waiting for a market crash sounds smart—until you see what it actually costs you.
Hey there,
Recently, I heard a popular YouTube finance guru tell their listeners not to invest in the stock market until there’s a 20% crash. The post has thousands of likes… and it’s wrong.
On the surface, the advice sounds like a smart move. No one wants to lose money, so if stocks are going to drop, why buy now? I understand that fear.
But you don’t know when stocks will drop. Do you?
Historically, markets drastically increase before they ever crash. And when that crash finally comes, prices are usually still higher than when you started waiting.
Here’s what I mean...
The Person Who Waited
Let’s say your favorite stock is at $100 per share, and you have $10,000 ready to invest today. But you decide to wait for a 20% crash.
That could take years. In the meantime, that stock climbs $100 → $115 → $130 → $150.
Finally, that recession you’ve been waiting for hits, and the stock falls 20%.
How much would that stock be?
$150 × 0.80 = $120
You waited years for the crash and still paid 20% more than you should have.
The Person Who Starts Investing Today
Now imagine your friend took their $10,000 and invested it while the stock was $100 per share.
Their investment grew whenever the market rose: $100 → $115 → $130 → $150. Now their total investment is worth $15,000.
Similar to scenario 1, when the market crashes, their stock falls 20% and so does their money.
How much would their total investment be worth?
$15,000 × 0.80 = $12,000
Even after the crash, they still have $2,000 of profit—$2,000 you did not earn. Plus, they’ve been earning dividends and compounding returns the entire time you sat on the sidelines.
I Understand the Fear
Nobody wants to invest $10,000 and watch it drop to $8,000 next month. It feels like losing. But the truth is: if you wait to avoid a 20% loss, you can miss years of potential 30%, 40%, or 50% gains.
Truth is: not everyone on social media is giving you sound advice.
Waiting for crashes sounds smart on the surface, but it might cost you thousands! Once you realize this, you can’t unsee it.
That’s why I want you to start investing now, keep investing consistently, and use dips as big opportunities to buy more—not the place to start.
Here’s What You Can Do
If you have money you’re ready to invest, do the following:
Start with a portion today: You don’t need to invest everything at once. Put 25-50% of your money to work today.
Invest consistently every month: Set up automatic investments to buy regardless of what the market is doing.
When crashes come, load up: You’ll already be in the game, have experience, and will be buying more of the stocks you love at discounted prices.
The Bottom Line
The biggest risk for most beginners isn’t buying too early.
It’s waiting too long to start.
And if you’ve been following the market, you know stocks are down now. So, truthfully, what are you waiting on?
Invest wisely,
✍️ Isaiah from Earn Out Loud
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