AZTG
OG
For more experience investors..My question is with everything that going in the economy. How would someone like myself know when it time to sit on the hands? These big swings in the Dow is scary.. I took my money out but was that the right decision?
My gut is telling I'm right because the housing market is at all time highs. And, I don't recall people buying all these houses in 2018 and 2019... So, how all of a sudden people have money to purchase these home?
The stock market never loses long term fam.
Stocks are all about building enough capital to stack compound interest. Meaning your profit makes a profit. Then your profits profit makes a profit and so on.
Put the majority of your investment in s+p500 tracking fund and dont worry about swings and housing market crashes. It dont matter.
You only lose money if you sell. The profit or loss you see on your dashboard means nothing. Even if you are seeing -$100 on the day, you dont actually lose money unless you sell on that day.
All that to say, the stock market been there for over 100 years and averages around 8% gain. So even if have a year where you are negative, your 3 year average is always positive.
Just dont have most of your money 1 stock or 1 industry. Thats why I always keep around 65 to 75% of my stock investment in a s+p tracking fund. Cause thats the top 500 companies in the world. If that shit crashes for real, we gon be in the dark ages and profit/loss gonna be the least of our worries.