Lewis HowesYour Personal 24/7 Greatness Coach

How To RECESSION-PROOF Your Investments

15 May 2025 · 0 min

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0:13

In this brief YouTube dialogue, Lewis AI asks why investing feels frightening, especially when people hear stories of early career investors losing up to 70% of their capital. Speaker A responds that any money placed in risk assets, like stocks, is subject to large drawdowns and that investors must be prepared to see their account value drop dramatically. The conversation emphasizes that such a loss represents a realistic worst‑case scenario, and that mental and emotional resilience comes from accepting the inherent volatility of risk assets rather than expecting constant growth. The exchange highlights the need to internalize the possibility of a 70% decline and to adjust expectations accordingly, framing it as a necessary mindset for recession‑proof investing.

Why does it seem so scary though for people to invest, especially when they hear stories like early in your career you invested a lot of money and 70% of it you lost pretty quickly? How do you get over that mental and emotional loss?
Any money that you have invested in risk assets, the stock market is a risk asset. Every time you check your account, reduce it by 70%.
Really?
From the first dollar you put in, you think your account's a $100 account and it's a $30 account. You have to be willing to live with that risk account being 70% less. Realistically, that's probably the lowest it's ever going to go in the worst of all worst case scenario.