Just like a clickbait YouTube video, these news headlines are meant to catch your attention. Journalists write about an upcoming market crash or the pending recession to get views, not to give you financial advice. Deciding what to do with your money based on news headlines is a great way to go broke.
If you listened to the headlines, you would have kept your money in cash heading into 2023 for fear of the market continuing to fall. You would have missed out on the 20% gains that long-term investors have enjoyed so far this year.
Sadly there are still a lot of people that have been afraid to invest since 2008 because of all the negative news headlines during the financial crisis. BUT, during that time the stock market has gone up 573%!
The best investors in the world consistently fail to outperform an index fund. Despite every resource at their fingertips, it’s nearly impossible to time the market. So, we certainly wouldn’t expect journalists to be able to do it either.
Don’t listen when you hear someone talking about the upcoming market crash. It doesn’t matter if it’s the most reputable publication in the world or your uncle who’s a stock market “expert”. No one has any clue. The only way to be sure that you can take full advantage of the stock market going up is to always stay invested. It will be a bumpy ride, but that’s okay because you are a long term investor.
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
