Chapter 37 [The Market Is Always Rising]

Source:https://www.facebook.com/100063294665283/posts/585710896882061/

[James Origins and Today] Chapter 37 - The Market Is Always Rising (05/25/2023)

The market decline is temporary, the long-term market is always up, and investing in US index funds will have high returns in the long run.

When the market panics the most, try to calm down, “The market panics and I'm greedy. Therefore, when the market falls, we must bravely hold index funds, and even have money to buy more at low prices. Index funds are the overall US market, the entire US, the United States that has continued to innovate for a long time, and the United States that is a fair and fair open market. In the long run, it will only rise. This has been the case for the past 100 years and 200 years.

Long-term investors need to be extremely optimistic to survive market turbulence. Just like the founders, there is no reason to leave halfway, and Musk insisted on having Tesla today when Tesla was about to go bankrupt. So, for long-term investors, the most important thing is to stick with it.

The market shock is the fear and madness of short-term investors, not related to our long-term investors, don't dance with them, let alone madness with them. We'll just watch the show.

In 2000, the bubble fell in 2008, and eventually it rose back to a new high. Moreover, there are no shell companies in the dotcom bubble in 2000, and there is no banking crisis in 2008, so it is very safe and reassuring.

Even if the 2000 decline did not return to the peak until 2014, the dividend was 1% -1.5%, and as of today, May 21, 2023, the QQQ return was 4.7% plus 1% dividend also reached 5.7% spy 5.2% plus 1.5% dividend also reached 6.7%. If the highest point in 2021 (also calculated using the highest point.) QQQ returns 6.4% plus dividends 1% also have 7.4% spy plus dividends also have 6.85%. And if you keep buying at work, the market is falling and your returns are higher. Young people should welcome the market decline.

Long-term investors, always extremely optimistic, horse running, dancing, ignoring the existence of the market, do not look at the market, do not look at the account, time has passed, the market will naturally return, and will continue to set new highs.

Opportunities for young people come from falling markets. And the risk for retirees does not come from a downturn in the market, the risk for retirees comes from whether there are enough funds to retire.