Hi,
The last few days, this forum was dominated by “long-term” mindset and that things are close to bottoming.
First: It is impossible to properly time the market. Good diversification (countries and asset classes) can take out the tail events. The market might go down 50% or it might go up 50% the next two years. It is impossible to know tho.
Second: With inflation and world events, there are a lot of things to worry. A 13% dip in the S&P500 is just a correction. Things can get a lot worse. There was an upvoted post, saying that the sentiment on AAII was at the bottom of 2009. What they are not telling you, is have you invest at a similar level in 2008, you would have lost 43%. It can get a lot worse
For the last two decades, the world had loose monetary policies and increased globalisation. It seems that some of that is reversing.
The valuation and price of what you pay in the end determines your return. It was ok to buy anything and it would go up, but it looks like valuations are starting to come back to more reasonable levels (30 PE should be reserved for the highest growing companies).
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