Focusing on the long-term is easier said than done
Alarming headlines make it hard to be a stock investor. Especially headlines about the stock market itself. We know that long term, great companies will make us rich, but being forced to live in the short term is the hard part.
The first chart covers a 10-year period, from early 2016 until now. Bumpy, but up for a gain of 3½ times cash invested at the beginning. (Dividends only make it better.)
The chart below shows the S&P for the last 4 months. The S&P has gone absolutely nowhere over that period. Instead, we’ve had 6 significant drops in price and lots of headlines attempting to explain why the market dropped each time.
Not knowing where the market will be in the next few months is the cost of benefiting from the long-term chart above.
Massive gains can be expected over the next ten years. We just need to live those years one day at a time.
Best regards,
Daniel A. Ogden
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