Markets Have Fallen 21% Invest Now if You Can
Published / Last Updated on 30/09/2022
Most stock markets are at or near their year lows and have fallen around 21% on average since the Russian invasion.
Most cash investors also continue to lose money as inflation at 10% pa wipes out interest earned at say 1% pa to 3% pa.
Every investor on the planet has likely made investment losses irrespective of whether they hold cash or stock investments.
Stocks:
- If you have lost money invested in stocks, they will come back.
Cash:
- If you have lost money holding cash with inflation at 10%, YOU WILL NEVER GET IT BACK as we do not ever see interest rates hitting 10% pa combined with inflation falling to 0% pa i.e., real growth.
There is no point trying to ‘bottom fish”. Trying to second guess when markets will finish falling and start rising. If markets are 20% or more below their year highs, that is our trigger point to invest. Stocks may fall further in the short term but in the medium term they will grow.
Never forget, buy low sell high.
