Omigosh, it’s omicron! Does the new variant really have that big of an impact on the stock market? It can when you understand that it’s a psychology machine
So I just lost a bunch of money. Well, not really… paper loss that one day, ya know. But what gives? Why did the market dip this week? And should we buy the dip?
At least the market didn’t tank. But that reminds me of some good advice…
You can’t time the market.
Remember it’s not about “timing” the market; it’s about “time in” the market. Especially with our government-created inflation, it’s hard to improve on time in the market. Leaving your money in a sock drawer (or even a deposit account) is costing you money each day. Money on the sidelines has to be put to work during inflationary times. And that means investing! Invest in yourself, your Roth, your taxed account… anything but the sock drawer.
Amusement parks are fun!
The market can be a roller coaster ride for sure. And like any good roller coaster, the ride begins with a slow incline, catching periodically on the pull chain. And the slow inclines are always followed by fast sharp dips. The bigger the incline, the bigger the dip. Roller coasters are much like the stock market. But it’s hard to beat >20% returns for 2021 in simple low-cost index funds like VTSAX.
Steady as she goes, Mr. Sulu.
For us, we’ll just keep dollar-cost averaging (DCA) every Friday. DCA eliminates the need to try to time the market with strategic lump sum investments. DCA combined with effective asset allocation strategies will ensure that you are buying low and selling high when you re-allocate on a regular basis. At least annually. The more you accumulate, the more often you’ll want to re-allocate your portfolio.
As Always…
Thanks for reading! I hope this information provides food for thought. Remember that I am not a certified financial planner, a certified public accountant, a licensed real estate agent, etc. My content is for educational purposes. I am a math educator who happens to have a finance degree. Like they say, never take financial advice from a math teacher! (Do they really say that?)
But you should spend less than you earn, invest the difference, and stay out of debt!
I would so appreciate your sharing my content with anyone you feel could benefit. And if you would like a free exploratory conversation or just want to shoot the breeze about personal finances, call me and leave a message or send a text to 570-731-0425.