The history of the stock market can be summed up pretty well: it goes up and down. As for the future, we cannot know for certain whether it will continue to go up and down—or on what schedule—but it seems reasonable to take the liberty of guessing this whole “up and down” thing may persist.
When things are down 20% from their most recent peak, and we recognize it goes up and down, this may well be as good a time as any to invest.
We might have a recession, but current lower prices already reflect a lower outlook. You could say sentiment is already in the mix, already baked into prices. And anyway, where there’s a recession, there’s surely a recovery to follow.
Do we know the timing? Nope. But we never do. (That’s where the whole up-down thing comes back into focus.)
There is much we do not know, but we have faith that perhaps our guesses may be good enough to get by. We believe, for example, that in the future there is money to be made by companies that meet our needs. We have a hunch we will continue to eat, shop, entertain ourselves, wear clothes, go places, communicate, create, and do all those other things humans tend to do. And we have an opportunity now to invest in companies that could provide those things then.
Clients, some things to consider at such a moment as this:
- Is there room to start or add to a Roth or IRA?
- Should some funds in a stable-but-stagnant form perhaps be invested for long-term growth?
- Would a Roth conversion make sense given these lower prices?
It goes up and down. And when we invest for the long run, we commit to the ups and the downs both. One never knows when the trend will change, just that it very well may.
If it’s time for you to add to long-term holdings, please email us or call the shop—anytime.
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