It seems like the markets are finally starting to correct after the unprecedented rise we’ve all been experiencing. I honestly thought it would happen at the end of 2016 when Trump became our president. I wrongly assumed his Tweets would cause investors to lose confidence and I was wrong. Thankfully, I didn’t let the thought of that deter me from investing as the past year has been kind to us all.
Today’s drop does remind me a lot of this quote by JL Collins:
Everybody makes money when the market is rising. But what determines whether it will make you wealthy or leave you bleeding on the side of the road is what you do during the times it is collapsing.
I know that corrections and recessions happen, and you have to stay the course. Keep your same investing habits as if it gaining 40% a year. In the end, it’ll all work out. The market always goes up.
As someone that only invests in index funds and has limited knowledge of the market, I do find this swing interesting in that it’s coming off the heels of the tax plan. They are claiming will make the market continue to rise, but not many are talking about our huge national debt and the increases in it to pay for it. Maybe that’s why the market is now turning? I’m sure no one knows.
I know very little about economics, but I find it interesting how the markets react to different things and always have to remember to stay the course and not live fearfully. Beyond that, I’m most concerned about who is going to get the blame for this. We’ve all been trained over the past year that the administration is only responsible for positive things, so it’ll be interesting for sure.