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The “Secret” to Growing Wealth

Dustin Granger

With 20 years in this industry, I’ve guided clients through five election cycles, each one stirring worries about who might win and how it could impact the markets. I started my career during times of market upheaval, witnessing the 2008 Financial Crisis and its recovery. I felt prepared when the COVID-19 crisis hit, and I saw how we bounced back. Here in Louisiana, we also weathered local challenges—Hurricane Rita in 2005 and Hurricanes Laura and Delta in 2021. There have been plenty of reasons for people to feel fearful, but experience and data have taught me that these shocks are temporary. The real story is in what comes after: the long-term growth of wealth for those who stay disciplined, which also happens to be the “secret” to growing wealth.

Lessons from Bull and Bear Markets

The chart above perfectly illustrates a core lesson I’ve learned: markets trend upward in the long run. Bull markets, historically, bring greater and longer-lasting returns than the temporary dips we see during bear markets. For instance, we’ve seen periods of immense growth, such as a 582% rise during one of the longest bull markets, compared to a relatively short 33.5% drop in the preceding bear market. Staying disciplined through the downturns ensures you’re there to enjoy the gains that follow.

The Cost of Emotional Investing

Over the years, I’ve noticed that clients who feel they’ve “lost money in the market” often made emotional decisions driven by fear or greed. In challenging times, the instinct to make sudden moves feels right—but it’s often those very moves that undermine long-term wealth. Warren Buffett once said he lives by the rule, “Be greedy when others are fearful and fearful when others are greedy.” While few people can truly follow this advice, the next best thing is to maintain perspective, stay disciplined, and resist the urge to time the market.

Staying the Course Through Crises

From the 2008 Financial Crisis to the COVID market downturn, and even our local challenges with hurricanes, I’ve seen firsthand how resilient the market can be. I knew that while market downturns were painful, they were temporary. That experience allowed me to help my clients keep their focus on the bigger picture. With every recovery, the markets have moved forward, reinforcing the importance of patience and a steady hand.

Looking at this chart reminds me of what truly drives long-term success in investing: discipline. The market will have ups and downs, and it’s normal to feel anxious during tough times. But by maintaining perspective and staying invested, you allow yourself to benefit from the extended periods of growth that follow. This is the real secret to wealth growth—not reacting to every market swing but understanding that time in the market beats timing the market.

The Real Secret to Growing Wealth

It’s natural to feel nervous, especially with everything happening around us. But if we keep the perspective this chart offers, it becomes clear that market downturns are just temporary. The “train” of wealth creation keeps rolling for those who stay disciplined and committed to their goals. If you’re ever feeling uncertain, let’s talk. My job is to guide you through these cycles and help ensure your financial goals remain on track, no matter what’s happening in the market.

Written by Dustin Granger, CFP® on 10/29/24

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

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