Yep, it’s time again to remind dear readers that the stock market isn’t a living thing that hates you. It’s a place where people exchange shares of companies based on a price buyers and sellers think is fair at the moment.
The only bad emotion in the stock market the regret felt by those who sell when they had losses, only to sit in cash while the stock market turned around and went back up. It looks like this:
Please, sear this chart onto your brain. Notice that the stock market is up (blue) much more than down (orange). Remember:
- People who ignore the stock market are the smartest investors you know
- If you have enough cash to cushion you through a job loss (if you are working) or 2 years of withdrawals (if you are retired), you do not have to worry about short-term stock market drops.
Remember, recessions last on average 11 months. The regret of lost growth opportunity from trying jumping out when times are tough lasts forever.
