This bull market we find ourselves in can be a great opportunity or a complete disaster. Many self “experts” I find myself engaging with on various social media groups have a terrible understanding that “This is the end”, “We’ve never seen a crash like this before”, and “The market will never recover”. In my opinion that is complete garbage. If you take a look at the history of the stock market since the 1900’s you’ll find that every crash throughout history has recovered and came back even stronger. Current stock prices are fantastic when you use the correct fundamentals of dollar cost averaging, RSI indicators (relative strength index), earning reports, etc. A lot of investors will tell you we’re not at rock bottom yet and should wait to start putting your money in, I disagree. Think of the current stock market as a department store where supplies are fairly valued at $100 and have just gone on sale for $50. Whether the price keeps dropping or not you are still getting a great deal on stock price with dollar cost averaging. If the price drops to $40 buy more. Timing the market is impossible and no expert can predict what is coming. As of 15 March 2020 I don’t believe that we’re at rock bottom, but in reality I have no idea. I see this market dip as a huge opportunity to make huge gains in the future. Stock prices have been beaten down from what’s mostly media hype which has convinced people to panic sell. I’d love to tell you that the stock market isn’t going anywhere, but that’s never a guarantee. In this time of crisis do you really think people in the future won’t be traveling, buying goods, and continue living the way we’ve always lived? Business will continue to thrive and be successful once the world returns to its natural state. A fantastic quote I’ve taken to heart which have been instilled in myself from my financial mentors.
“Be fearful when others are greedy and greedy when others are fearful.” -Warren Buffet
We are in a unique time to begin investing and I see it as the greatest opportunity of my young life to get started. I began my journey at the peak of the 2019 bull market so I was luckily enough not to be heavily invested yet, but this market crash has changed everything. The beginning is now and if you don’t take advantage of this unique opportunity you will regret it. Whether I’m right or wrong doesn’t make much difference at this point in time. If I’m completely wrong and the stock market somehow ceases to exist the dollar most likely won’t be worth much. In this event you should probably be stocking up on ammo and survival supplies, but I doubt it.
These panic sells are a terrible idea. So much money wasted and lost because people can’t see future value and are only worried about the short term effects, which are most likely temporary. The market will return stronger than ever!