If you’re paying any attention to the markets this week, then you are probably aware of its sharp slide over the past several days, sending the Dow plunging 300+ points for two straight days and down 5% this week alone. Around the globe, stocks are sharply down.
Yesterday, the Dow gave back 530 points and, over the past week, lost its 2015 gains. Apparently, a 10% correction in the market is widely anticipated among investors, and many believe
this may be its chance that it is happening, down 10% from its all-time high.
The Dow’s 530-point drop on Thursday was the biggest in four years. Well-known companies like Netflix, Apple and even Disney – all down more than 16% this week alone.
According to the “experts”, uncertainty over China’s economy and a possible Federal Reserve interest rate hike have combined into a perfect shit-storm of selling throughout the stock market, which might mean that it’s the right time to buy.
Regardless of the reason this time, the stock market is a living and breathing “thing”. It has good days and bad, and we investors take the bad with the good as it continues its trek.
We sent an additional $7500 into the markets this week – of course, this was a planned activity and in no way associated with the down tick in the markets. But nevertheless, this is the nature of the stock market. It rises and falls, and the trick is to buy when prices dip and sell when prices are high. Easy in concept, not so easy in practice.
Only time will tell whether buying this week will turn into a profitable circumstance, but we are keeping our heads held high because investing in the stock market is about the long term, not week or month long stretches where investors either lose their shirt or “get rich”. It doesn’t happen that way.
Are you in the stock market for the long term? Do you even notice its weekly rises and dips?
Steve is a 38-year-old early retiree who writes about the intersection of happiness and financial independence. Steve is a regular contributor to MarketWatch, CNBC, and The Ladders. He lives full-time in his 30′ Airstream Classic and travels the country with his wife Courtney and two rescued dogs.