Some people will tell you that the market always goes up. But they base this on the misleading data from the very beginning of the stock market to over 100 years later. And that's a misleading statistic because a lot of economic things happened during that time that affected the stock market. But it doesn't necessarily mean that the stock market always goes up
For example if you bought into the stock market in 2003 then by 2010 you would still be in the red
And there's a lot of other times were you can pick data points and compare them to later datapoints and see that you would be down from where you were. The basic rule of the market is that it always goes down. It doesn't matter when you buy into the market. Pick any random day and put money in the market. Guaranteed that within one week and at the most two weeks Your Position will be lower than what you bought into it for. Sure maybe eventually it will become higher but in the short-term it will always go down. Without fail. It NEVER goes up short term
Approve this in 2021 early on I sure did one share of the snp500. Just one. And then I watched the Returns on that single shorted share..
What did I see? The exception of a very short time span in which it went into the red (aka the S&P 500 was worth more than what I bought it for) most of the time it was in the green. Meaning the vast majority of the time of having that shorted share I had actually made money
And this isn't unique to the S P 500. It's most stocks. No matter when you buy into them at least in the short-term they're going to go down. They will ALWAYS go down
wethe you bought Apple in October of 2020 or whether you bought Tesla in 2020 just to see if crater down to 700 for months on end
The market always goes down. If you bought into the market in March 2021 you're in the red
why? because the market always goes down
So you can buy into stocks and hope Beyond hope that over the course of many many years they will gradually trickle up to maybe a 10% gain. Or you can recognize that within the shorter-term you they will go down by 20 and 30% easily
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