Dave Ramsey says: “In the short term, whether the stock market goes up or down is a drama queen affair”

Last week, stock markets experienced significant swings that caused concern among investors. The major drops on August 5 led to headlines about a “market sell-off” and widespread investor panic. However, the major indices ended the week with only modest change.

This short-term panic has led many financial experts to take to their channels and ask investors to calm down. Among them, Dave Ramsey We discussed this stock market volatility on “The Ramsey Show” and advised investors on managing short-term fluctuations.

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“The stock market has fallen dramatically in the last few days,” Ramsey acknowledged, before adding sarcastically: “Then you hear the wailing and the screaming and the gnashing of teeth that everyone’s going to die, that we’re all going to retire and have to eat Alpo.”

Ramsey criticized the emotional reactions to the market downturn, saying that “in the short term, the stock market going up or down is a real disaster.” He stressed that over long periods of time, the stock market is driven by numbers, not daily fluctuations, which are unreliable for making investment decisions.

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Ramsey said the recent economic slowdown was driven by a weak jobs report, which showed slowing growth, rising unemployment and lingering concerns about the economic situation. Federal Reserve ActionsHe advises against reacting impulsively to short-term market changes.

“If you check your accounts every morning, you’re crazy,” he said, illustrating the futility of obsessing over short-term changes. Instead, he encouraged regular, consistent investing, arguing that such fluctuations would become irrelevant over time. “In 10 years, you won’t even remember this crap,” Ramsey said.

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Jade Warshaw, co-host of The Ramsey Show, asked a question some viewers might have about the need to invest more during a sharp market downturn. She asked what advice Ramsey would give to someone who was considering investing a lump sum and buying more stocks during these short-term market swings.

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Ramsey’s immediate response was “no.” He noted that this could encourage investors to day trade more frequently. “You shouldn’t try to time the market. All the data and research tells us that people who try to time the market make less money than people who invest regularly.”

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Many financial experts agree that market fluctuations are an integral part of investing. They also stress the importance of having a diversified portfolio…