Why is it that when a consumer item like a new phone is on sale, we pounce, but when the stock market is on sale, we run? Buying and holding are both far more difficult to do in a volatile market for most investors. And when we see terms like ‘bear market’ and ‘recession’ in the headlines, it makes it even harder for many of us to continue to invest. But what is important to remember is that buying into this market volatility is the source of future returns. The overall American stock market has returned roughly 9.7% over the past 90 years. And those 90 years have included difficult events like wars, depressions, deflation, and various politicians. So while it might feel a lot safer to not invest at all, know that American capitalism has continued to produce results for decades on end despite real challenges. Investing in an economic tailspin, although it feels a bit counterintuitive, is the best thing you could be doing over the long-term.
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