Is 2023 going to be a repeat of 2022 or is something else in store?
(Phot credit: Rebecca Zwiren photography)
This week I was standing in front of a room of about 200 people at the Nefesh B’ Nefesh and Living Financially Smarter conference in Jerusalem.
This was my first public speaking event since pre-pandemic, I was nervous but excited but pretty quickly realized that everyone was looking at me and waiting for me to answer "the" question.
Is now a good time to invest in the stock market?
Well, to be honest, this past year the stock market’s been in a bad mood. And if you just read the headlines, recession fears, inflation, the markets seem doomed.
But, here’s something that may surprise you....
In the last 95 years the market has only EVER gone down two years in a row 4 times, during the Great Depression, WWII, 1970’s and the dotcom bubble bursting. 2 bad year in a row is an extremely rare phenomenon.
Zooming out, even with the recent market crash here is how well the market (S&P500) is actually doing.
The Truth Behind the Crash
The US stock markets goes up 71% of the time, that is a fact.
The market typically goes through long stretches of growth and phenomenal stock market gains (highlighted in green below) followed by short periods of contraction, as you can see in the slide here. There is a bust and then a long boom.
This is a natural part of the market and these contractions which we are experiencing now are actually amazing investing opportunities.
Do I see this as a time of opportunity?
Yes, there are amazing companies and ETFs on “sale” that looking back a few years from are likely to seem cheap. Does this mean that you should all of a sudden invest a significant amount of your savings?
No, my recommendation is similar to how your retirement money is invested. You want to invest consistently a little bit each month as the market slowly starts to stabilize.
I have been through the pain of many crashes, and have made the mistake of panicking or not seeing the opportunity, don’t let the noise or fear let you miss out on this opportunity.
Want to see the 3 other tips I gave in my presentation and the practical on how to apply them?
The conference didn't allow recordings, but I do have footage from a similar session that expands on these concepts with practical steps on how to put them to work for you. Click below to check it out.
Thanks again Living Financially Smarter and Nefesh B'Nefesh for the great event. It made me realized how much I missed and love sharing my passion of investing with people. If you are looking for a speaker or lecturer at your event or company, let’s connect!
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