Showing posts from March, 2018

Managing Stomach Churning Market Drops

Ugh.  This year has been psychologically brutal for buy and hold investors.  Between February’s sell off and this week’s repeat on US/China trade war concerns-there has been a lot of volatility in the market.  The S&P 500 is currently down below November 2017 levels wiping out all January 2018 gains. Don’t panic-remember we are investing for the long term.  S&P 500 March 2018 YTD At least, for now, we are still positive versus this time last year. S&P 500 1 Year Performance March 2018   None of this short term volatility matters-even if the US heads into a recession (after all this is the second longest bull market in history-it’s time) in the next few years. These market dips are a buying opportunity.  Basically the market periodically goes sale.  If the S&P is at 5000 in seven years-would you rather have bought at 2500 or 2800?  Remember-we are investing for the long term, 20-30 years.  The market goes up over long periods of time