DMD 010: Stock market roller coaster ride
This is likely a textbook buying opportunity for new and longstanding investors
Welcome to issue #10 of DMD.
By now you likely know that stocks continue to sell off significantly over the last several days primarily due to the uncertainty of the impact from tariffs placed on numerous countries from the Trump administration. Here’s some specifics:
Markets update (stocks and crypto)
The S&P 500 (where most of the stocks in your ETF’s and mutual funds are located) is down 10% so far in 2025.
The Nasdaq (which has a heavy concentration of tech related stocks) is down nearly 15% so far in 2025.
Stocks in focus: Apple (AAPL) is down nearly 22% in 2025, Cava Group (CAVA) is down 23% and Chipotle (CMG) is down 16% so far in 2025.
Bitcoin trades around $79,000 so it’s down about 27% from its all time high (ATH) of $109,000.
Top alternative cryptocurrency coins Ethereum, Solana, XRP and Chainlink trade at $1,519, $112, $1.97 and $12.02 respectively with the total crypto market cap just under $2.6 trillion - about $1.4 trillion from an ATH.
While stocks are getting hammered so far in 2025 let’s not forget the following facts:
Stocks, as measured by the S&P 500, were up 26 and 25 percent in 2023 and 2024 respectively. That’s well above historical average annual gains of 10-12% per year.
Nearly 100% of the time when stocks go down over 20% it represents a significant buying opportunity to buy stocks of good companies on sale.
Check out our newsletter from a couple of weeks ago titled Everyone Likes A Good Sale.
Money Moves
Begin investing ASAP or stay the course of your wealth creation journey.
We believe the stock market is currently on sale, based on 100+ years of historical data, to begin investing for the first time now, add more to your stock ETF’s or keep to your weekly or monthly automatic investments.
Does anyone believe Apple, Microsoft, Nvidia, Walmart, Verizon, Coca-Cola and hundreds of other great companies will be going out of business soon? Heck no.
When fear is high it almost always means it’s the best time to invest as markets over time go back up after economic policy and corporate earnings resets.
DMD’s presenting sponsor, Acorns, is giving a $40 bonus to open your first investment account so now is an excellent time to buy stocks on sale through this great platform. Click here to get started with Acorns and start your weekly or monthly recurring investment strategy to build wealth over time.
Social Proof
Cam from Salt Lake City, Utah:
“Based on the money management principles you and DMD have taught us, my wife and I have been able to grow our net worth by nearly 33,000 percent over the last 18 months”.
See the full 12 minute interview with Cam here.
Amanda from Savannah, Georgia:
“Saving money in different named savings accounts that DMD taught me to do has given me a feeling of much more control when I manage some of my money this way”.
See the full 8 minute interview with Amanda here.
Word of the Week - Diversification
Diversification is a risk management strategy that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio constructed of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio.
Importance: It reduces the risk of significant losses because different asset categories and investments will react differently to the same economic event.
Practical Example: Suppose you invest only in technology stocks. If tech companies suffer losses due to a new regulation, your entire investment’s value could plummet. However, if you have diversified your portfolio to include stocks from different sectors, bonds, and other securities, the negative impact on tech stocks could be balanced by stability or gains in other areas.
Diversification is foundational for smart investing, helping to protect and grow your money over time.
Side Hustle Differently - Tutoring
A great side hustle to earn an extra $500 - $1000 or more per month is tutoring.
Identify Your Specialty: Determine which subjects you are most knowledgeable about and passionate about teaching. Commonly high-demand subjects include mathematics, science, languages, and standardized test preparation.
Set Up a Structure: Decide whether you want to offer online tutoring, in-person sessions, or both. Online tutoring can attract a broader client base and is convenient as it requires no commuting.
Market Your Services: Use social media platforms, local community boards, and educational forums to advertise your tutoring services. Platforms like Tutor.com or Wyzant can also help connect you with students.
Determine Pricing: Research what other tutors charge in your area and set competitive rates. You might start lower to attract clients and increase as you gain more experience and testimonials.
Create Teaching Materials: Develop lesson plans and learning materials that cater to different learning styles and needs. This will help you deliver effective and engaging sessions.
Schedule Flexibly: As a side hustle, it’s important to balance tutoring with your main commitments. Set specific hours for tutoring sessions that work with your schedule.
Tutoring not only helps in earning extra income but also strengthens your own understanding of the subject, enhances communication skills, and provides the satisfaction of helping others achieve their academic goals.
Engagement
Partners
I’ve been using Acorns as one of my investment accounts for years. We have helped thousands of people on our speaking tour begin investing with Acorns too. With over 10 million users and growing it’s one the best ways for new investors (young and old) to begin investing into the stock market safely and securely. The “Round Ups” feature allows you to invest spare change into a diversified portfolio of stocks and bonds in addition to setting up a weekly or monthly recurring investment to create significant wealth over time.
Click on the Acorns logo above or click this link - $40 bonus - to get started on your investment journey. You will receive the bonus as long as you set up at least a $5 or more weekly or monthly recurring investment.
Thank you!
For being a valued subscriber to DMD and choosing the path of financial rebellion to create a better life for you and others.
Please share the DMD newsletter with others to help them do money differently.
Todd