Everywhere you look nowadays, the talk is of a recession. The Dow today is down 500 points. It’s reached it’s recent all-time low since the pandemic. From it’s recent high, the stock market is down over 25%. It seems like the stock market is tanking and my account – and probably yours as well – is getting smacked hard.
So, where is the hope?
Well, if you’ve been around for a while, this can be a bit normal for the stock market. Remember the early 2000s? If not then, you’ll probably recall the 2008 financial crisis. Those were painful lessons.
On the positive side, those painful lessons can be a bit comforting to us today. On each and every one of those horrible times, the market has recovered and losses were recouped. If you were in it for the long haul, you’ve made money, especially if you were consistently adding to your position.
Remember, when we dollar cost average in (when we consistently buy shares on a regular schedule), we are not only buying at sale prices, but we’re adding to the number of shares we have.
That’s a great feature to focus on: the number of shares which keeps going UP.
When the market recovers, those shares increase in value and so does your account.
So, take heart.
Make sure your emergency fund is fully funded. Keep expenses as low as you can. Be conscious about where your money is going.
All of these things will help secure a more rewarding future.
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