Thanks for reading Finessing Finance. As always, your support does not go unrecognized on my journey to help people with free, accessible personal finance content.
Where We’ve Been
2021 felt like yesterday. The stock market hit all-time highs (ATHs) and you had everyone on every corner screaming, “Buy the dip.”
As we continue on our 2023 journey, the market is telling a much different story. Banks are failing, personal savings rates are at the lowest they’ve been in decades, and inflation is, well, inflating.
Living in Los Angeles, I’ve seemed to notice the rate of inflation skyrocketing more than usual. Oh, how I yearn for the prices of 2019.
Taking Stock of Stocks
That point I mentioned earlier about everyone saying to buy the dip? This year holds a much different mentality. Nearly 60% of people were expressing this mentality during 2021 which has fallen to ~30% as we continue to navigate difficult economic times. It seems that more money is heading to bills and necessities rather than the stock market this year.
The stock market continues to be a powerful wealth generator, having granted ~10% of returns on the standard occasion (minus a pandemic).
What should be your decision to continue exploring the stock market?
Time is On Your Side
Time is everything. The answer to my question earlier is time. Let’s say you’re young and continuing to invest in the S&P500, we know eventually that the U.S. will weather through the storm. If you’re under the age of 30, this is the perfect opportunity to take advantage of stocks at a discount price for the long-term horizon. A reminder that this isn’t a get-rich-quick scheme that many people associate with the market.
That said, we’re personally continuing to invest in ETFs within our personal and retirement accounts. Our sights are set on the far future.
So, yeah, buy that dip.
Have a great week,
Jordan