Money Guy Show - Episode Summary
Episode Title: Experts Predict MASSIVE Stock Market Drop (Should You Sell?)
Hosts: Brian Preston & Bo Hanson
Date: November 12, 2025
Episode Overview
In this episode, Brian and Bo tackle sensational headlines predicting a massive upcoming stock market crash. Rather than stoking fear, they guide listeners through economic realities, address investor concerns, and reaffirm disciplined wealth-building strategies. They respond to listener questions covering market timing, mortgages, car-buying decisions, and the newsworthy topic of proposed 50-year mortgages, all while maintaining their accessible, practical tone.
Key Discussion Points & Insights
1. Market Crash Headlines: Hype vs. Reality
- The hosts display recent alarming headlines predicting the "mother of all crashes" or a brutal 2025-2026 bear market.
- Bo notes, “There is always someone out there saying, okay, the next crash is coming, the next downturn is coming. You need to be afraid. You need to be aware.” [00:11]
- Brian warns against letting such voices distract your financial focus: “You have to be careful who you let in your head...you can cherry pick the data on inflation multiple ways.” [02:42]
2. Current Economic Concerns
- They list the top concerns that feed crash hysteria:
- Slowing Job Market and Lingering Inflation: The policy tools to address these are often at odds, adding to uncertainty.
- Tax Policy and Trade Tariffs: Unclear future regulations add to investor discomfort.
- Volatile AI/Tech Markets: The “AI bubble” debate highlights how investor FOMO can go wrong but reinforces the value of diversification.
- On AI and “bubble” talk, Brian shares a personal anecdote about advising a friend to buy the S&P 500 instead of Nvidia: “He brings it up to me constantly. He's like, you realize that $10,000 would now be worth $97,000. Who's keeping track though?” [05:11]
- Bo’s diversification philosophy: “If you're in a well-diversified portfolio...it’s not something that's going to leave you destitute because we know that when the market goes down, there's often a V shaped recovery.” [06:14]
3. Should You Be Worried About a Crash?
- Their Answer: No.
- Market cycles are normal; downturns and new highs are part of investing.
- Warren Buffett advice: “When it's raining opportunity, reach for a washtub, not a thimble.” [12:27]
- Brian: “If your plan was good before, it’s going to be good during and...after. Make sure you're creating a plan of action and not just flopping around based upon what the media tells you.” [10:59]
- Financial Order of Operations: The hosts urge listeners to return to their trademarked step-by-step system for financial decisions.
- Have a solid plan, emergency fund, and long-term approach to investing, making you “immune” to short-term volatility.
4. Listener Q&A Highlights
a) When to Invest a Lump Sum? (Mason Pease, [14:04])
- Mason asks if he should wait to invest Roth IRA contributions given market fears.
- Bo: “Is the market going to go down? Yes. Is the market going to go up? Also yes...The best time to invest is, is when it is the absolute scariest.” [14:32]
- Brian advises: “If you're worried ...definitely set up a dollar cost averaging structure...What is not the right answer is to do nothing.” [15:54]
b) 15-Year vs. 30-Year Mortgage for a First Home ([20:41])
- Listener asks which loan type is better for wealth-building and future flexibility.
- Brian shares his personal experience: “...that 15-year mortgage kind of bit me...From a cash flow perspective, I had to carry both homes for a period of time...I wish I'd had a little more flexibility.” [20:43–23:46]
- Both agree: Loan choice isn’t “mathematically optimal” in a vacuum. Tailor to your cash flow, financial phase, and the financial order of operations.
c) Should I Repair or Replace My Totaled Car? (Nathan C, [30:15])
- Nathan, already saving 38% of income, wonders if a totaled Corolla should be repaired or replaced.
- Brian: “You have to advocate for yourself, especially if you're not at fault...But don’t use this bad situation to turn into a worse situation by running up debt.” [32:32]
- Bo: Don’t be “penny wise and pound foolish” with cars—consider lifetime cost, not just purchase price. [33:48]
d) High Housing Costs & Retirement Planning ([36:22])
- 35- and 37-year-old listeners worry they won’t have their home paid off at retirement.
- Bo: “Our preference would be...to be completely debt free, mortgage included...But that doesn’t always happen...A goal should be to have the house paid off, but I don’t think that’s going to...decide whether or not I could actually retire.” [36:38]
e) 50-Year Mortgages Debate ([40:00], [46:20])
- With news of possible 50-year mortgages, the hosts consider implications for first-time buyers.
- Brian: “I at least like the discussion piece because this might be potentially a band aid...It’s a tool…If I was at the beginning of my career and I know that my future earning potential is on the upward trajectory, I'm probably looking at this...” [49:06, 55:25]
- Bo clarifies: “We want you financial mutants to own your life. Even if you did take advantage of it [a 50-year mortgage], we want you to have a plan...Because financial independence...is the opposite of financial encumbrance.” [57:46]
- Both warn: Some people will abuse this tool, just like any financial innovation.
5. Philosophy & Tone
- Consistent advocacy for behavioral discipline over market timing.
- Encouragement for building “financial mutant” habits—automatic investing, embracing volatility, and constructive risk-taking.
- Humor and team camaraderie—e.g. memorable “on-air sneeze” moment, playful debates about whether “frugal” is an insult or compliment ([13:03], [34:53]).
- Pop culture tangents, relatable analogies (e.g., “always be buying baby,” “bedazzle your basic life” [62:21]), and regular returns to the Money Guy financial order of operations.
Notable Quotes & Memorable Moments
- On Crash Fears: “There's always going to be something that is going to scare you financially. I mean, I've lived long enough...” – Brian [07:44]
- Diversification Wisdom: “If you're in a well-diversified portfolio...we know that when the market goes down, there's often a 'V-shaped' recovery.” – Bo [06:14]
- Market Timing: “Don’t get too cute with it. If you have the money right now, I'd love to see you... begin dollar cost averaging or get it to work in the market.” – Bo [14:32]
- On 50-Year Mortgages: “Money’s only a tool...I at least like that it’s creating a conversation on affordability, because I have not seen anybody really coming up with what is the younger generation going to do to start working towards this homeownership problem.” – Brian [49:06, 55:25]
- Behavioral Finance: “Behaviorally, people would be better if we just said no, but we try to treat everybody like, hey, this is how I would approach it with money.” – Brian [61:05]
- Always Be Buying: “That's why I stand by Always be buying, baby—setting up the behavior that you're saving consistently, you're respecting diversification...” – Brian [09:51]
Segment Timestamps
- Headlines & Market Crash Fears – [00:05]–[04:29]
- Economic Concerns Explained – [01:46]–[06:14]
- AI Bubble & Diversification – [04:29]–[07:32]
- Should You Sell? (Rebutting Fear) – [07:32]–[13:03]
- Listener Q&A
- Lump-Sum Investing vs. Timing – [14:04]
- Mortgage Terms Debate – [20:41]
- Car Replacement Decision – [30:15]
- Retirement & Mortgages – [36:22]
- Home Repairs: How to Pay – [41:12]
- 50-Year Mortgage Discussion – [46:20]
- Philosophical Wrap-Up/Outro – [59:21]–[62:21]
Final Takeaways
- Ignore the media noise about crashes; stick to your long-term plan.
- Diversification, automatic investing, and dollar cost averaging consistently outperform attempts to time the market.
- Short-term volatility is a feature, not a bug—for disciplined investors, downturns are buying opportunities.
- New financial tools (like 50-year mortgages) require caution and context-specific use; they aren't one-size-fits-all solutions.
- Build confidence by following an orderly, rational, and adaptable approach to your financial decisions.
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