So many “market participants” today only know what it’s like to invest in good times. If you entered the work force in 2009, you’re likely in your mid 30s with a 401k that only goes up.
This market is not abnormal, it’s just long, long overdue. The bull market could have naturally fizzled in 2020 at the end of an 11-12 year run, but we dumped unprecedented stimulus into the economy and pushed the market up 20% further to new records.
Time to pay the piper. Those with a plan who stick to the plan need not panic. Those with cash on the sidelines are licking their lips for opportunity.
In my late 40s and in financial services my whole life, the “noise” started with Long Term Capital Management collapse in 1998, with some tech bubble, Enron, 9/11, financial crisis brought about by bad mortgage debt, you name it…
If you’re investing in your 401k and can afford it, up the contribution a few points. This will pass. Maybe not in 2022, maybe not even 2023, but it will pass.
Here’s some perspective…
S&P 500 hit an ALL-TIME high on March 30, 2021. Many then thought the stimulus went too far and didn’t allow a correction. Do you know what that high was?
3958.55
It was 1% higher than that yesterday.