How Money Works 
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The collective value of all American publicly traded stocks is now over fifty-eight TRILLION dollars.
That’s more than a three times increase from just a decade ago, and American public stocks are now the second largest asset class in the world behind only Chinese real estate which has… not been performing as well…
These amazing returns coupled with new technology which makes getting into the market easier than ever before has mean that more Americans than EVER are stockowners benefiting from this strong market!
Investing is THE best tool for average people to build up wealth to fund some of their most important life goals like retirement, send their kids to college, or leaving some money behind for their children…
With more people than ever benefiting from the stock market it means what is good for investors is good for everybody!!!…
The only problem is… basically everything I have just said is complete bull…
You are NOT an investor… but it’s really important that you think you are…
source
About The Author
To try everything Brilliant has to offer for free for a full 30 days, visit http://www.brilliant.org/howmoneyworks. You’ll also get 20% off an annual premium subscription.
I just buy all-world etfs and dont look at the account besides that
I would question the validity of the Gallup poll numbers. It was self reported, and in my ancedotal expirience, the amount of people I have met that didnt know their 401k is invested in the stock market is apalling.
I love your videos, but i get the feeling you are trying waaay too hard to spin everything to the most negative way possible, i really dont want anyone getting discouraged from investing since i think its a good way to build wealth ( obviously if you dont have any debt and dont make below living wage ) mainly in diversified and low fees low risk index funds
…..what are you insane if the banks go down I starve. I commodity trade not a investor. And you should care about the economy because the stock dominos into the real markets. When sticks go down businesses go under.
This video does not prove its thesis. There's some good information here, but the core thesis that "you are not an investor" is simply not proven in any way.
For someone to become rich, somebody has to go broke
Is it really worth investing in gold in 2025, I’ve been on the sidelines watching the market for awhile and it seems to be pretty stagnant to me not that it matters because I’m in it for the long run, but how can one generate actual profit in this current market?
Try investing into city rental flats in perspective countries.
You can probably buy 4 or 5 with $200K
I have a few questions and i'll be grateful if someone will reply. how can i invest in stocks? or how i can help to grow a portfolio? I want to invest around 140K cash savings. What are the best strategies?
I learned that lesson for less than $1000, fortunately.
Came here for my regular how money works reality check
Are you saying that society shouldn't prioritize the health of the stock market above everything else? What are you, a commie?
If inflation and financial market bloat wasn't so prevalent, no one would need to hand their money to these large funds to keep up with cost of living
I assumed everyone already thought like an investor and just tried to do it as ethically as their morals allowed and as disciplined as their circumstance and/or impulse control allowed.
As an investment enthusiast, I often wonder how top level investors are able to become millionaires off investing. I do have a significant amount of capital that is required to start up but I have no idea what strategies and direction I need to approach to help me make over $400k like some people are this season.
What sets top investors apart from the rest? I've got $385K in equity from a home sale and I'm unsure whether to put it into stocks or wait for a more favorable market condition.
@HowMoneyWorks I've been thinking about why S&P 500 growth was / is so much faster than GDP. So far I've gotten that it's primarily a mix of: no taxation on unrealized gains, FOMO – everyone wants to be an investor because stocks is how richest got rich (retirement funds, etc.), sampling bias + globalization (we're looking at list that approximates largest companies in the world). I would love to see your take on it.
Most investors are actually gamblers. Buying up penny stocks and options. Took me a long time to realize that. Now I just buy dividend paying stocks. Passive income is fun.
Algorithm
As a 25 year old with 2 young kids and a stay at home wife in med school. What can I be doing to give myself and my kids a better financial future? I currently am making 85K annually and will be north of 100K come 2026(hopefully). I have 20k in a 401k from an old job, and have about 5k in a roth IRA from my current job where I am contributing 10%. My main goal is to eliminate debt and hopefully get into the housing market when my wife will be working again. If anyone has any advice please feel free to leave it here.
Very glad I didn't fit into one of the groups/habits mentioned. I've been investing for 7 years and haven't been below a 15% annual return in any year with the average slowly creeping up as I improve. It's now at 26%. I did a lot of learning before starting but mostly focused on all the typical mental traps people fall into so I could avoid them. I track my thoughts on companies when I make a decision about them and look back to see if I was right or wrong so I know what I missed. I buy long term and haven't panic sold once. I'm very frugal and haven't changed my spending habits at all. Income wise I'm happy at my level and don't want promotions but I also have enough invested at this point that a pay jump wouldn't be more beneficial than my efforts with investing. Overall very happy and I'm definitely an investor, not trader or gambler or consumer. I try to warm others away from bad habits as well but most just don't have the interest to go deep into learning before jumping in. Then they screw something up and get jaded.
7:40 I could'nt agree more. Consistency of income and savings is how you build wealth. For years I tried to be a smart guy and I picked stocks and funds, until I realized I was wasting my time. The whole point is to put money in your portfolio, and avoid to be scammed by companies or fund managers. Stock picking is nothing more than a hobby. Even pros suck at beating the markets. The time you consume to try to beat the market isn't spent wisely. BUT. Everybody knows it, nowadays. The real danger is the rush on ETFs.
You know there is a saying "stop investing in stock market when everybody (literally people who have no clue about stock markets) is investing on that!
The crush is inevitable!!!
Great video! I really do have a question. For someone with less than $10,000 to invest, how would you recommend we enter the crypto market? I am looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. What’s your take on this approach?
I’ve only just started dipping my toes into stocks and it didn’t take long before I was slowing everything to a crawl, spooked by how similar everything sounded to the same pump and dump hype of EFTs. It’s like they just put on a suit and tie and talk leadingly about ‘strong forecasts for growth’ instead of screaming ‘GO TO THE MOON!!’
I joined a broker and was offered complimentary access to ‘market-research-backed advisors’ which came with daily newsletters and a whole bunch of website videos and articles and pdfs – and all I can think, looking at them, is ‘no wonder the stock goes up. You tell everyone who uses your platform that it will, so they buy in, and it does.’
I can’t shake the feeling that most buyers these days are just wallets who think they’re doing due diligence, when they’re really just consumers, steadily transferring their money to the people who influence what they are exposed to.
7:18 "for the vast majority of even the most dilligent investors, it's better for them to focus on increasing their earnings to buy more investments than it is to focus on hyper optimizing their investments" LOUDER FOR THOSE IN THE BACK
As a young person in a not that profitable profession that wants to own a house, and is scared as f to invest money, this makes me feel better. If i make safe choices, I wont lose money, but there is not some secret investment i'm not into that could make me millions. Just getting my hard earned money and investing a bit should do the trick, I guess?
Did you iust call Ben Felix a "boomer" ?
Taking all my money from savings accounts and spending them on slots machines. Thank you for this wonderful investment advice!
That's depressing… I better go optimize my portfolio more to make up for it.