Every day there’s a news article filled with conspiracy theories about “when” or “what” will cause the stock market to crash.
I don’t worry about any of the “noise”.
Anytime I invest (for both real estate and stock), I plan to hold for at least a decade.
The stock market is no stranger to entering bear or bull markets; we’ve had many sell-offs, pullbacks, and bear markets since the 1800s (as shown in the list I’ve compiled below).
History has demonstrated that the market has always recovered, and that’s important to remember.
The last “crash” we experienced was at the onset of the pandemic. During this time, many investors panic-sold their stocks as the future felt uncertain.
I took Warren Buffet’s advice and decided to be greedy when others were fearful, and I pulled together as much capital as I could and simply purchased indexes and ETFs.
I’ve continued purchasing stock throughout the pandemic to ensure that I leverage my cash wisely and not miss out on potential returns or lose money due to inflation; I think we all knew higher inflation was coming as we began navigating our way out of the pandemic and the demand for consumer goods has increased.
While some other investors were panic-selling and sitting on cash, some of my ETFs earned over a 60% return this past year — I’ll take it!
I’d much rather earn 40, 50, and 60 percent returns than lose money out of fear.
If you’re wondering “what” ETFs I own, I simply purchase Vanguard’s growth, large-cap, and sector ETFs. They all have relatively low expense ratios (in comparison to the industry standard). You can find the full list of ETFs and their returns here.
Lastly, I’ve continued purchasing index funds in my 401k. Since I have a Fidelity account, I leverage the “Zero Funds” which have no expense ratios (I highly recommend them).
I specifically buy the large-cap, total market, and extended market funds. These funds mimic any other major index fund without the expense ratio or fees attached (there’s also no investment minimum) — I like the word “free” much better than “fee”!
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