This is more so a post for the newbies and/or investors with a long term time horizon. The Fear & Greed Index registers investor sentiment as extreme fear. With the S&P treading bear market territory, the majority of investors, those with a long term time horizon, should be buying at these prices. Over the course of a decade these kinds of steep price declines, beyond a correction, happen maybe 2-3 times at best. Sure, it's possible that the market keeps dropping for the next 6-8 months or so, but headlines and markets have a way of turning relatively quickly. The majority of people should be trying to increase their positions in index funds right now and should continue to do so if the market keeps falling.
Here's how quickly a news cycle can turn:
"Russia & Ukraine announce a 2 week cease fire, the western world begins buying Russian oil again, bringing gas prices down."
"Heading into the summer months, China announces that it has a lid on COVID outbreaks and begins opening up locked down cities. This should alleviate some supply chain issues, helping to control inflation."
"With inflation slowing, the Fed announces a rollback to .25% rate hikes, and estimates a moratorium on rate hikes within 6 months."
"Biden announces a $20,000 student loan forgiveness package, freeing up the millennial and gen z consumer base."
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We're a herd. We all get anal retentive and get incredibly bearish at once. Then we all turn bullish and start having orgies at our goat yoga sessions. We're anal retentive right now, but you don't have to be. Take advantage of this opportunity. Buy more index funds, i.e. VTI, SPY, etc. etc., right now while the market is down, and go enjoy your goat yoga.
Submitted May 25, 2022 at 10:47PM by sleepapneainvestor https://ift.tt/FgEtHpd
