Pray that the Market Goes Down

When markets fall, stocks are returned to their rightful owners. A falling stock market—the kind that has everyone in a panic—is the great sieve that separates true investors from the masses.

The purpose of this post is to offer sound advice regarding your investments and what you should DO.

I’ve been a professional investment advisor since 2007—over 17 years as I write this. But my education in investing began long before that.

 

Monopoly and My First Lessons in Ownership

As a kid, I loved playing Monopoly against my younger sister, Helen. I always found a way to win. At the end of the game, the same thing would happen: to keep her playing, I’d literally give her the bank—handing her the tray of cash while I held onto all the property. I’d try to get her to go around the board as many times as she would, just to pay me rent!

Lesson learned:
Ownership of Productive Assets → Cash flow
Cash + No Assets = Broke Eventually

 

Baseball Cards and Portfolio Building

As a young teenager, I developed a serious baseball card collection. My friend, Luke Ruediger, introduced me to trading cards, and I was hooked. My favorite part was building a “portfolio” and watching it grow. I eagerly awaited each month’s Beckett magazine to check prices. I never bought a Beckett, though—it was a “trading cost” that could otherwise buy more cards!

Lesson learned:
Work → Dollars Saved → Dollars Invested → Bigger Portfolio

 

Stocks and Compound Interest

Later in my teenage years, my dad—then a stockbroker for US Bank—taught me about investing. I’ll never forget learning about compound interest and the difference between owning a company (stock) and lending money to it (bond).

But I didn’t formally become an investor until I was 18, when I opened my first brokerage account. My friend, Doug Armstrong, introduced me to stocks as productive assets—unlike baseball cards, they paid dividends. For years I diligently put $50 per month into the Templeton Growth Fund.

 

My Professional Commitment

Today, Practice Financial Group manages over $350M for our clients. Managing this money is to us a sacred trust. It represents:

1. The financial fruits of years of hard work and sacrifice for our clients.
2. The financial wellbeing of our clients, their families, and their employees.

I take this responsibility seriously. Over my years as an investor, and a professional investment advisor, I’ve learned a few things I want to share with you.

 

To maximize your wealth, “DO” these things:

1. Become exceptional at your profession and learn to make an income.
   Investing presupposes that you have money to invest. This is where 100% of your “for-profit” time and energy should go—into making money!
2. Find a financial advisor you trust and follow their advice.
   If you’re successful at step one, you’ll have money to invest. If it’s a lot, you’re climbing Mt. Everest, not Mt. Mole Hill—bring a guide!
3. Focus on the dollars you invest.
   This is your most important “key performance indicator.” When we meet with clients, we show both their investment growth and their contributions. Sometimes, growth comes entirely from their own dollars, not returns. Don’t lament this. You control two things: the dollars you invest and whether you leave them invested.
4. Leave your money invested. Be patient.
   If your fruit trees yield a smaller harvest, would you dig them up and replant them? I don’t know where the market will go tomorrow, but I do know this: those who leave their money invested, benefit from these tides pushing them forward:

• • The tide of dividends. Whoever owns the shares gets the dividends.
  • The tide of inflation. Inflation keeps coming and those who own shares ride this wave.

5. Unless you’re selling tomorrow, pray that the market goes down.
   Most people are conditioned to want the market to go up. Up markets bring political clout, happy headlines, and green arrows. But if you’re still buying, a down market is a sale!

 

Why You Should Pray the Market Goes Down

Imagine you own one share of ABC Company stock currently priced at $100. By holding the share, you’re saying you’d rather have the share than $100. In other words, by holding the share you’re saying that if you had $100, you’d trade it for the share!

Let this sink in and let’s consider the implications together.

Now, assume the market tumbles by 40%, and your ABC stock drops to $60. At this point, most investors become less interested in owning shares, which explains the price drop. But think about this rationally:

• • Is the risk of investing in ABC higher at $60 or $100?
  • Is the expected return higher at $60 or $100?

 

Here’s an important investing principle: you cannot separate an investment’s quality from the price you pay.

At $60, the same ABC stock is a better investment than it was at $100.

We understand this logic with everything else we buy:

• • When gas prices drop, we’re happy (unless we sell gas).
  • When milk prices drop, we’re happy (unless we’re dairy farmers).
  • When Taylor Swift tickets drop, every Swiftie rejoices (except Taylor).

But for some reason, stocks are different. When stock prices drop, buyers irrationally lament. Why?

1. Fear dominates. Market drops are always accompanied by widespread fear.
2. We fixate on the past. If shares were once $100, we feel regret for not selling “when we should have.”
3. It feels like a loss. If a $5M portfolio drops to $3M, it feels like losing $2M, even though you never “had” the cash—just the shares.

 

Think Rationally

The market’s price drop didn’t change your shares. You still own the same investments. Yet, somehow, you’re now desirous to sell for $60 what you refused to sell at $100.

Will you sell me your share for $100?

No.

How about $60?

Well, OK.

Please explain that thinking to me…

Conclusion

The next time the market takes a tumble, don’t panic—rejoice! A falling market is an opportunity, not a threat, for those who understand the value of owning productive assets. Stocks going “on sale” mean lower risk and higher future returns, but only for those who stay the course.

Successful investing isn’t about timing the market or reacting to short-term fear. It’s about committing to the long-term principles of earning, saving, investing, and staying invested. Remember, market downturns test your resolve, but they also offer the chance to build wealth by accumulating assets at lower prices.

So, if you’re a buyer, embrace the opportunity. And if you’ve done the work, hired a trusted guide, and committed to the plan—rest easy knowing that time and patience are your allies.

Pray that the market goes down, because when it does, it’s working in your favor.