🧠 Is It Finally Safe to Invest In Stocks?
Friends,
What the heck happened last week? In a two day window, the NASDAQ rose 9%. Advertising-focused companies — like Magnite — jumped as much as 100%.
And all of this because inflation came in at 7.7% — instead of the expected 7.9%? While it’s nice that inflation appears to be cooling, a 7.7% jump is still nothing to get that excited about, right?
To answer this question, it’s important to remember that the stock market is a forward-looking machine.
It doesn’t care about where we are. It only cares about where we’re going.
This is why markets tend to bottom while the headlines still look awful.
Need proof? Here are some of the headlines from March 9th, 2009, which was the day the market bottomed following the Global Financial Crisis:
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Do you see any good news? We sure don’t.
In fact, it wasn’t until April 2010 — 13 months later — that unemployment finally peaked.
Yet, if you would waited on the sidelines until April 2010 to start investing in stocks again, you would have missed out 80% of the market’s gains.
The takeaway for us isn’t that we should expect smooth sailing from here on out (although we wish that we true). The takeaway is that you can only capture all of the stock market long-term gains by remaining invested.
That’s easy to do in theory, but damn hard to do in practice.
We certainly hope that we’ve hit a bottom and that the economic picture gets better from. However, the only way we’ll know that for sure will be with the benefit of hindsight.
– Brian Feroldi, Brian Stoffel, & Brian Withers
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One Simple Graphic:
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One Piece of Timeless Content:
It’s harder to maintain relationships as you age. You are fighting the constant of change. Whether you change jobs, your kids change the sports they are into, or you move to a new neighborhood; any of these situations can make it more difficult to make friends.
This NPR article explains how to make friends and keep them, with some added relationship resources at the end.
One Twitter Thread:
The 10-K filing is the best way to learn about a company. But, the downside is there’s usually more than 100 pages in each one.
This thread from Ryan Reeves, Infuse Asset Manager’s Chief Investment Officer, explains how you can read this key investment resource “efficiently and effectively.”
July 2nd 2022
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One Resource:
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One Quote:
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