Even with hindsight, it’s hard to know which performed best. So, what is going to do well in 2023? No one knows. A year ago, if someone told you eggs were going to outperform AMAZON, you probably would have laughed at them.
Are eggs going to be up 60% again next year? Hopefully not, but who knows. Maybe this is the year that candy corn prices will skyrocket. Trying to guess what will perform well on any given year is an exhausting and fruitless game. Instead, buy and hold index funds to harness the massive power, growth, and profits of all the companies of the world. Because eggs are probably NOT going to outperform index funds over the decades ahead.
The stock market did poorly in 2022. But this is nothing out of the ordinary. The stock market has fallen at least 20% in a calendar year six out of the last fifteen years. But during that time period, the market is up over 300% (about 10% per year)! Investing is never a straight line. But that’s okay because we are in it for the long term. Over years and decades, the market always goes up. It has to because it’s the collection point for all the profits and growth of the companies of the world.
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.
-Vivi & Shane