The speaker advises against stopping 401(k) investments due to market downturns. He urges viewers to "keep investing" and suggests that a down market may even be a good time to increase contributions, as this allows for buying more shares at a discount. He emphasizes that consistent investing is a superior long-term strategy.
This video encourages 401(k) investors to continue investing consistently, even during market downturns. It introduces dollar-cost averaging as a key strategy to mitigate emotional responses to market volatility and build long-term wealth.
The speaker explains that dollar-cost averaging removes the emotion from investing by automating the process. Instead of making investment decisions based on feelings about market conditions ("I don't want to throw good money into a bad market"), you simply invest a fixed amount regularly, regardless of market performance. This removes the need to constantly monitor the market and react emotionally to its fluctuations.
