This week has been a perfect example of why you should not try and predict the market. The S&P 500 entered into a correction (10%+ drop) for the first time since 2023 only to jump up 2.1% on Friday.

All of the buzz about uncertain trade policies, jumps in the market, and inflation data may cause young, worried investors to ask questions like:

• “Should I stop investing with the market down?!”
• “Should I be saving my cash until the market is back up?”
• “Should I wait for the bottom to invest my money?”

And my answer of course is, “”NOOO! GOD! NO GOD PLEASE NO! NO! NO! NOOOOOO!”” (feel free to read that as Michael Scott).

Investing is funny because every human instinct we have about it is wrong. We’ve evolved to run at the first sign of danger. That may serve us well in the wilderness where a twig snapping could mean a predator looming. But with investing we should do the opposite. The prices dropping should never be a signal to run.

Is the most recent dip in the market a fluke or a sign of certain doom? Will the market continue to bounce back after Friday’s turnaround? I have no idea. If I could tell you when these corrections and rebounds were going to happen, I could trade on that information, and I would be richer than Elon Musk in about six months. Anyone who is not richer than Elon Musk still claims to know what the market will do is full of

.

So no. Don’t sell. Don’t wait. Don’t hold back cash. Don’t change anything. Keep investing early and often. In a few decades you’ll be fabulously wealthy and won’t even remember this drop.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy

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By: Jeremy Schneider
Title: The market is down… should I still be investing?!
Sourced From: www.personalfinanceclub.com/stock-prices-are-dropping-in-2022-what-should-i-do/
Published Date: Wed, 19 Mar 2025 02:53:59 +0000

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