The stock market in July is up. We have almost made up for all the market losses that occurred during the pandemic. Financially the corporate world is doing great, despite boycotts, political actions, etc. We think it is an important idea to note. The things that we personally think are very important are not necessarily considered important by the stock market.
The stock market has dealt with many issues over its lifetime. Wars, diseases, etc. While individual companies have died, overall, the market is very resilient. When one company dies, other people see that as an opportunity to swoop in. Now particular industries might not survive, but new industries will be created. Gasoline cars killed the horse and buggy industry. Eventually electric cars will kill the gasoline car. Eventually something else will kill the electric car. Technology will continue to advance. We know from looking at history that when it comes to progress, there are winners and losers. There are people who are hurt by the innovations that occur. For example, the people who owned horse and buggy companies likely were very hurt by the switch to automobiles. A more recent example would be AI. While AI has been terrible for artists, it has done wonderful things for biology and chemistry research. The overall trend of AI is likely to be positive, though some people are not going to benefit. The world is trending up, though it is easy to not be able to see that when you are in the middle of it.
When you hear in the news that the market is crashing, that doom and gloom is coming, take a moment and step back. Is that bad news they are reporting really as bad as they say it is? Are there good things counteracting the bad that they are not reporting? Most of the time, the things being reported are not going to crash the market. To be fair, sometimes the reported things are going to crash the market, but that is not usually the case. Also, even if the stock market crashes, the stock market is likely going to recover within a few years. Even the Great Depression only lasted a decade. A crash is likely only going to be a blip in the lifetime of your portfolio history. Our recommendation is that you take the news with a grain of salt and stick to your plan. If you have a concern about a particular investment you have, we will look into it. However, the overall market will be fine, so don’t panic.
If you have any questions about your investments, please call at any time. We sincerely hope you got value from this newsletter.
We appreciate your business and trust.
Thank-You
Dan and Eli
As we’re writing these to help our readers, we would be very appreciative of any input in regards to what we should write next. If you want us to write about a particular topic, please contact me. Please contact me if you would like to submit a post to our blog.
If anything that we mentioned above interests you, please consider downloading our free e-book. The book contains our thoughts on investment management and some information that we think everyone should know. You can also download it below.
E-Book Download
Questions for the comments
Did the newsletter make sense? Do you agree or disagree with what we said?
Learn About Our Business
