You never undo your seat belt or jump from a moving roller coaster. Nor should you when it comes to our current Stock market.
Eight years ago, if you bought a share of VOO or Vanguard S & P 500 ETF stock, you may have paid about $220 for the share. Today, as of this writing it’s worth $490.55. In other words, even with the fall of the stock market recently you have made good money on your investment. A couple of weeks back it was up to $560 which means you were flying high on your profit. Still yet, you have done well.
If you bought your share of VOO two weeks ago at $560 then you have lost $70, at least for now. You may lose some more but you have to hold tight. Don’t panic and sell now or you will have a loss. Ride it out and give the market time to settle down and rise again. If you have to cash in your stock, then cash in while they are high.
Don’t invest your grocery money in stock. This is the money you need every week for food, shelter, travel and overhead. This is not the money you spend on stock. If you do, then in two weeks you will have to sell your stock to eat and risk losing some of the money you invested. Only invest in stock what you don’t currently need for general living expenses.
Now may be a good time to buy but keep in mind the market may go down some more. If you bought VIG two weeks ago then you’ve already seen a significant drop. Keep in mind you only lose it if you sell it when the stock is down. I feel confident that the stock market will come back bigger and bolder than ever, but it may take a few months or longer.
The stock market has averaged making about ten percent over the last fifty years. This means it has had years when it made more and years when it made less. An average of ten percent is about the best you can do on your money over the long haul.
Now is not the time to faint or jump from the roller coaster. Rely on your stable income such as Social Security, or any other stable income you may have. If you have a regular paying job, you may want to stay with it a little while longer if you can and if you enjoy your work.
