If last week didn’t get your attention, then there may be no hope as it looks like this week started much like last week ended, with the various indexes and averages pushing significantly lower.
The Standard & Poor’s 500 stock-index looks to take out the 3900 level and which has been tested at least four or five times since January.
The next stop could be 3500 and who knows after that we could look at 3200. What you are seeing is that the 3900 level is a 20% decrease while 3200 would mean more than 35%.
This is the same drop we witnessed in March of 2020. These are arbitrary levels but are worth watching.
Moreover, we have yet to talk about the impact of a recession.
If you invested in crypto through Bitcoin, it hasn’t been painless either. There will always be those that told you they were in at $250 so they aren’t impacted, but I doubt the boast. More than half the investments in crypto have come in the last year or so and they are down over 50%.
They are even putting holds on withdrawing assets from certain accounts to meet demand.
I think what you find is that block chain isn’t that much more efficient for transaction purposes - there have been accounts eliminated by fraud and it is no protection against inflation.
So much for being different this time.
On the positive side, that we are finally getting into territory where I seriously look at the value this drop has provided. I wish I could tell you that we will bounce from this level, but I have no confidence in that theory.
There is more pain to come but you should get ready. I know this is not easy when you have watched your monthly statements sink. Most want to wash their hands and never come back.
We lose a whole segment of investors every time we go through one of these corrections, or more so, a bear market.
It can get lonely as you will turn on the news and Chicken Little would sound like an optimist.
Just realize that great companies like Amazon and Google are still best in show. You will get a real opportunity to get on board at a substantial discount.
This is a time to put whatever cash you have to work in solid companies with great management that pay dividends. These opportunities happen about once a decade.
The last was only two years ago due to the pandemic, but you only have to go back and see what happened after 1987, 2000, 2008 and 2020.
This is the antithesis of being a trader. This is being an investor and I can promise you this works.
It just takes patience and a strong constitution.
