Mentally it’s tough to keep buying with non-stop red days. Here’s a long term perspective to consider.
AAPL is now down 30%, but a return to all time high means a 183/129 = 42% return. If you’re happy with an average annual return of 10%, then buying now means AAPL has 4 years to get back to ATH in order for it to be a good investment for you.
Obviously a faster return to ATH gives an even better average return. (I oversimplify the math a little by ignoring compounding)
A similar analysis on these blue chips shows that a return to ATH in,
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MSFT: 4.5 years
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GOOG: 5 years
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AMZN: 8 years
Would equate to an average annual return of ~10%.
If your time horizon is more than a few years, these are great times to be in the market.
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