The market is no stranger to unprecedented events.

It has been an odd few years. We’ve dealt with a lot and it appears we will continue to be dealing with a lot. In all honesty, I am not sure if this is always how things were, maybe I was just too young to follow the news or really grasp anything that was happening.

It feels like the sky is falling every other month. Maybe that is part of growing up and being able to form your own opinions, consume media, and have a general understanding of what is happening in the world we live in.

I speak generally, but of course, anything that is going on in the world impacts the market in some way, shape, or form. Whether it is increased gas prices, inflation, taxes, etc. the market is working to price in nearly everything all at once. Here and there, the market gets irrational but over the long term, we can see that generally stocks do go up.

I say all of this because as a young person, it feels like all we want right now is some sense of normalcy in our lives. I am not sure there is light at the end of the tunnel as far as things returning to “normal.” A lot of what we’ve experienced is anything BUT normal. All of our adult lives have been throughout times of major uncertainty.

I understand some people’s hesitance when it comes to investing. I can fully understand why someone would prefer to hold cash. It is stable, it is like a warm blanket that can always be relied on… in the short-term that is. On a broad basis, the same item that cost $100 in 2021 now costs $116. Inflation is real and it can eat away at your purchasing power very quickly.

We’re getting an absolute speed run of a lesson right before our eyes. Our cash is buying us less and less. The market has been volatile and we experienced a true bear market in 2022.

But alas the market prevails. $100 invested in the S&P 500 in 2021 would now be roughly $175. Think of every single thing that has happened since then. There was a pandemic, an election, multiple wars, record inflation and an unprecedented amount of rate hikes.

Oh, and not to mention there was an assassination attempt on a former President and current Presidential candidate this weekend. These events are relentless.

So is the market. Just like it’s always been.

The chart above from Russell Investments shows us that the market generally goes up. Zooming out, even the Great Financial Crisis is dwarfed. It is like a blip on the map.

We always think long-term when it comes to investing. Find comfort in the history of markets, find faith in the current market, and stay the course. The riskiest investment can be not investing at all.

When something feels unprecedented, there is a good chance it is not unprecedented for the market. Even if it is unprecedented, the market will adjust accordingly. You might even be lucky enough to find yourself in a position to invest when the market becomes irrational.

Stay the course!!

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Have a more specific question or want to get your finances in order? Feel free to reach out to [email protected] for a free consultation!