S&P 500 has risen 19.6 % this year, never waste a good crisis!
Crisis is also opportunity
2022 was disastrous year for all financials. Crypto, stocks, even bonds all went negative, because of the rising interest rates by the central banks. Some indexes even went 20 to 25 % negative last year. The doom profits were there again, predicting the downfall of the entire system. The vultures are always there, you can't escape them, but you can ignore them! That's a choice! One that I made! I always take doom profits with a big bag of salt.
So, at the end of last year, I decided to invest a little more money into my stock and fund portfolio. Because crisis always brings opportunities. And those are never offered by doom profets, they just predict pandemomium, and that's it. If they predict it enough, they will be correct one day.
But the S&P 500 is a good example of how things really went this year, we started at 3819 points, and today we are at 4568 points, that is a difference of 19.6 %. Not all losses of last year have been erased, but people that invested in the beginning of this year, or at the end of last year, have made some great profits.
Never waste a good crisis
As the good old Winston Churchill once said, "Never let a good crisis go to waste". And he was right, stock markets go down, but they always jump back up. The only thing you can never get correct, is when they will jump back up. But that was not a criterium for me to not invest.
The money I invested is invested for at least a term of 5 years, so even if the market had tanked some more, it would not have been an issue for me. So, I made the right choice, I didn't time perfectly, but it is a fata morgana to time the market perfectly. If you do it, it is sheer luck, nothing less nothing more. It is about the bigger picture, about investing when there is a crisis at hand. It sounds counterintuitive, but it is in fact almost always a good choice!
I wish you all great profits, this year, and next year!
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