June 14 - Yes! I see RED in the MARKETS! Finally!
This was right after the FED pause at 2 PM EST.
At the end of the day, the markets recovered slightly. The S&P 500 was up over 10 points and then it dropped to -25 before closing at +3.58 at the end of the day.
Am I the only person in the world looking for some red market DAYS?
Sure my 401K value will be going DOWN today.
But then, why am I happy?
You see, when markets move up 10% in a short time you can see that is a good thing. For example:
- $100K portfolio --> is worth $110K now!
- $250K portfolio --> is worth $275K now!
- $500K portfolio --> is worth $550K now!
- $1M portfolio --> is worth $1.1M now!
- $3M portfolio --> is worth $3.3M now!
That is because most people don't have millions or large values in assets. In fact, 90% of people are still in the accumulation phase, including me!
That means the 10% move has little or ZERO impact on your net worth.
What to do now?
What should you do? In 2022, the markets were down 20+% If you started buying assets in 2022 and will continue this pattern, you might do well in the next decade or when you retire! The key is always to take advantage of market opportunities when prices are going down. History has shown that if you did that in 2022 and if you continue that in 2023, the value SHOULD be more in 20 years.
Now, markets do have risk and I'm not telling you to be a market timer, but rather time in the market! The key is to understand why. Things move up and down. But over the course of history, it has been shown that things will eventually recover (and past their old highs).
This concept has many names and I call it the "Worst investor Possible". That is someone that ALWAYS going APE (ALL-IN) and the worst possible time. How long does that investor need to wait before making? The answer is 20 years. This is why understanding how things work can be the best advantage of the tool.
This means that you will make money by investing in assets in the STOCK MARKET and being able to wait 30, 40, or 50 years. I have been investing for nearly 30 years and I see this is a TRUE statement. I can be an average JOE and do better than my smart friends that are Lawyers, Doctors, or business owners.
This is because I have invested my money and time into something that works for EVERYONE. There isn't anything magic about what I do.
Have a profitable day,
Solving-Chaos