Dear Reader,
I've been watching the market for a good amount of time.
This weekend I was reflecting back on 2016 when the S&P 500 had a 14% correction.
It got me thinking about how every major sell-off in stock market history is accompanied by a mix of economic concerns, monetary policy shifts, or geopolitical tensions.
These circumstances typically result in investors demanding a higher premium for putting their capital at risk.
The details are different each time.
But structurally, it's generally the same story: it's risky out there.
Amid all this, one pattern has stood the test of time.
Stocks will go down (maybe a lot), but they'll go up a lot more.
Today, we're experiencing economic concerns amid high inflation, monetary policy shifts in the form of interest rates hikes, geopolitical risks in Ukraine, and another source of consternation: COVID-19.
So while there is no need to panic, I do think it is pertinent to prepare yourself for the fact that we might experience some unexpected turbulence in the market.
As we've said in the past, investing is a marathon, and we're in it for the long haul.
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