The past few weeks have been unkind to the stock market in general. I have slowly watched my unrealized profits shrink and shrink. A week or so ago, the number actually went negative. That means putting the money in a low-interest savings account would have made more financial sense. Fortunately I know that my investments are solid and it is just a matter of time before that number goes positive again. The trick is not needing any of that money immediately to pay bills. That is why they recommend not investing any money you will need in the next two years.
I generally check my stock balances daily and so I cannot say the drop was unexpected. I watched the numbers fall over time and the optimist in me hoped the market would recover. I still believe that and so I won't be liquidating my investments quite yet. Had I been a bit more pessimistic, I could have put in stop-loss orders and I would be way ahead of where I am now. The only trick is to knowing when the market hits complete rock bottom and when to jump back in.
It should come as no surprise that the stock market is in the toilet. We are still fighting various strains of COVID-19. There is a war between Russia and Ukraine that should never been allowed to happen. This created drastic increases in gas prices. Then the government also handed out tons of money and is now wondering what caused such drastic inflation numbers. Fortunately some of these issues will eventually be resolved and the stock market will begin a steady upward rise. It always does, even after the great depression. The trick is to not panic. Sometimes that is easier said than done.
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