4 Reasons I Don't Care About A Stock Market Crash
Picture this you get your first cup of coffee in the morning and go to turn on the news and before you take your first sip flashing in red is “The Stock Market is Crashing”.
Do you immediately think wtf is going to happen to my 401K or do I need to buy more?
I personally would be checking my accounts to purchase more funds because it looks like a big sale is going on today. You want to buy the stock when they are low, so for a long-term investor, a dipping market is actually a good thing. You can get funds at a cheaper price than the day before aka a sale!
The stock market crashing does not phase me because I am investing for the long haul and have about 20-30 years left of time in the market so any short term so any dip I know I will recover from. If you are closer to retirement age this might not be the case for you. This is where individual risk factor comes into play while investing. What is best for me at my age and my current income might not be best for you. Knowing your individual risk tolerance is one of the smartest things you can do for yourself while investing. Do not just copy other peoples investing strategies without considering how the risk would affect you personally.
Ok off that soapbox now on to the second reason I do not give an eff what the news is spouting off this morning regardless if you are left or right. It’s the NEWS job is to get you hyped up evoke emotion in some way and there is no better way to send people down an “I’m losing all my money spiral” than to say the stock market is crashing.
Third I look at the data - the stock market has taken a hit 3 times in 20 years, but all of them recovered from
2020 (-34%) covid but quickly rallied back and is at an all-time high in 2021
2008 (-56%) housing market crashed
2000 (-49%) the .com bubble
Forth if the stock market only went up all the time everyone on the planet would invest and be gazillionaires and game over capitalism. The stock market is expected to dip down so once you know that it’s part of the game you don’t get as freaked out when it does happen.
Peace, love and happy investing,
Christy Lepley