Click here to listen to this snippet.
Jim Lange: Paul Merriman is kind of the elder statesman of index investing. His workshops are famous, and he has been a real source of education and inspiration for both young and old investors. Paul has some contrarian ideas for young investors.
Paul Merriman: This is for the young listeners. When the market is going down and everybody is complaining about how horrible it is, young people should be celebrating. There is nothing better for a young investor than the market to go down for the first decade that they’re putting money away for their retirement. That is contrary to what their parents and their grandparents are telling them. Their grandparents and parents are saying they want the market to go up. No, they want the market to go down. And it’s that kind of counterintuitive thinking that makes investing successful, but it’s hard for people to do emotionally.