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Hello Reader, Warm Sunday wishes! With the time change do not forget to take care of yourself. Rest, recharge, and most importantly stay safe On to the topic of the weekLet’s start off with a quote. It is a long one but a very important one. I don’t think human nature deals very well with the patience and strong stomach investing requires. We’re wired for fight or flight. Look at the chart of the S&P 500 over 40 years, and you see an endless series of jagged peaks and valleys. Each of those downs and ups is a moment of panic or elation. But step back for a wider view, and you see the inevitable direction is up. Stick with it and ride out the emotions, and you’re an investor. – Charles Schwab
I wanted to remind you of this quote as the market is hitting an all-time high. Why? Because sooner rather than later we will see a pullback, will it be more than just a pullback? I don’t know. But we will see it soon. I want you to be patient with your money and not make any knee-jerk decisions when that happens. If you feel there are stocks that you own that may go down significantly then take some profits and move to safer stocks. Remember the most important rule of investing is not to lose money. Losing money sets you back so far out that recovering takes a lot of time. See below what each % loss would take to recover. -10% you need to gain +11.11% -20% you need to gain +25% -30% you need to gain +42.86% -40% you need to gain +66.67% -50% you need to gain +100% -60% you need to gain +150% -70% you need to gain +233.34% -80% you need to gain +400% -90% you need to gain +900% That is all for now. Check out the tweet below and let me know which one are you!
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Carrying our Stock Market discussion!
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