These numbers are real. Since September 1982 there have been 20 market “corrections” where the S&P 500 has dropped at least 10%. There have also been eight bear markets (20%+) drop and five recessions: Yet a $10,000 investment in an index fund in September 1982 would today be worth over half a million dollars.

What does all of this mean?! If you’re investing over many years, you will inevitably see scary swings in the market. History will tell you that THIS IS NORMAL and you should stay the course. You will survive the market if you hold steady.

But if you are NEW to investing and just started at the beginning of this year, it probably feels pretty deflating. You hear all these wonderful things about investing but when YOU put your money in, it goes down. JUST YOUR LUCK, right?! Well, it’s not bad luck. The market going down is a SURE THING. But it’s four step forwards, one step back. The backwards step always comes. And if you’re at the beginning of your investing journey (or thinking about starting), you should be THANKING YOUR LUCKY STARS we’re in a backwards step right now. That means you get to acquire MORE SHARES for LESS MONEY. So when the market does start screaming upwards (which it will) you’ll realize an even bigger amplification effect from your additional shares!

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: Gabriela Gonzalez
Title: Why market dips are a new investor’s best friend
Sourced From: www.personalfinanceclub.com/why-market-dips-are-a-new-investors-best-friend/
Published Date: Wed, 19 Mar 2025 02:55:56 +0000

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