But don’t be surprised if the current bout of volatility eventually becomes forgotten as another stat in stock market history. Because so far, the market’s moves have been in line with the historical averages.
Inflation measured nationally is a little higher than the long term expectation of 3%. It’s almost always present and it is normal for it to rise and lower over time. Interest rate hikes are being implemented starting March 16, 2022, as a normal process to dampen inflation.
Not taking action IS taking action! Small adjustments rebalancing is also taking action. Accelerating annual retirement account contributions is taking action.
The data shows that any time is a good time for value. There’s not a way to reliably and accurately predict what will happen in a particular year. Yet, the “prediction pundits” will continue making predictions each year.
Check out these examples of saving $5000 and growing it in the market over 45, 35 or 25 years. The difference is astounding! Yet, this is the basic math of growing wealth over time in the market. “Simple, inevitable wealth”
Reaching a new high doesn’t mean the market will retreat. Stocks are priced to deliver a positive expected return for investors, so reaching record highs regularly is the outcome one would expect.
