We’re all hearing about and seeing high inflation. The S&P 500 is down 17% (at the time I wrote this). It’s also a mid-term election year… which aren’t always full of joyful deliberation. Do the various negative news headlines mean you should pull out of the market? Stop investing?
You can always come up with a dozen reasons to not invest. Yet, there is one overarching reason you should invest – to build wealth over time. Over time… through the ups and the downs. It comes down to Nick Murray’s quote,
“Time in the market, as opposed to timing the market, is not a way of capturing the long-term return of equities; it is the only practicable way. You have to stay in it to win it.”
Today, I’m sharing some older blogs as well as resources from other experts that address these questions.
This is one of my most simple blogs, but it will be forever true. There is something you should all fear more than stock market volatility… and that is outliving your money. Investing in a well-designed diversified portfolio is a proven way to build wealth and exceed inflation over time.
I wrote this during the high of the COVID pandemic when we didn’t truly know we were dealing with yet. We were all nervous. Would the world ever be the same? Could our economy sustain itself? These principles of exercising control during uncertainty can be applied during ANY time of uncertainty… like periods of inflation and market volatility.
This has always been one of my favorites. It’s your friendly reminder that you are not investing in the oval office or the House of Representatives. You are investing in companies that produce in-demand goods and services. You are probably now muttering a snarky comment about how your least favorite politician is indeed going to ruin America. If I caught you doing that, read this article.
Sometimes an inspirational quote or two is helpful when trying to keep yourself on track. Read some of Adam Zuercher’s favorites here.
If you are feeling anxious about your financial future, I sympathize greatly. If you have taken major losses in your portfolio… oof, I’m right there with you. What matters most is not what is happening in your portfolio, it is what you are doing in response to it. Talk to your financial advisor, voice any concerns you have, and keep your perspective long term. More than likely, you planned for this. You might be more prepared to face it than you think.