Whew! Have you seen the stock market recently? What is going on? My portfolio has experienced a big dip and you might be experiencing the same. There’s so much to take in. Let’s see, there’s inflation, a pandemic, potential Russian invasion, rising interest rates, the Great Resignation, and more. With so many things happening, it’s no wonder we’re having a roller coaster market.
Inflation is a huge factor. It costs more to buy the same goods now than it was last year. Gas prices are high, meat prices are high, car prices are high, home prices are high…everything is getting more and more expensive faster. And these are just the necessities.
Interest rates are going to go up. We’ll have to see by how much and how many times. This impact consumer spending and your willingness to borrow money. Raising interest rates is used to help stagger inflation. If less people are not willing to spend or borrow money, it should keep prices from rising.
The market has dropped significantly. Do you sell and get out? Do you wait it out? Historically, investing for the long haul pays off. Although the market may be trying to correct itself, the economy grew its fastest pace since 1984. We are in the dip but the market has always bounced back. It may even go down further but for me, that’s ok. I’m in it for the long journey.
Since stock prices are much lower, it could actually be a good time to buy that stock that you’ve been itching to buy. I always say that you need to do your research before investing in anything. Does the stock price match the value of the company? Is there growth or profits? What’s on the horizon? Do your research!
The roller coaster is an up and down pattern. When you go down there’s always going to be a bottom and it comes back up. The market is taking a dip but it’ll hit the bottom eventually. I continue to invest in my retirement, my children’s 529 plans, and other investments. The economy is strong. We just need to ride the roller coaster market out. If you are interested in following my journey, email subscribe to get alerts of latest posts or follow me on Facebook, Instagram, and Pinterest.
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