The stock market is absolutely getting red. A lot of people talk about finance on the internet, but very few are actually qualified to do it. I, however, am Vivian, your hbff and your favorite Wall Street girly who can break it down for you. The stock market is not getting wrecked. Sure, it’s down over the past month, but if you zoom out, it’s still up 9% year to date, down from 15% highs.
So what’s going on? In 2022, when inflation was crazy, the government called the Fed for help, aka the One Bank to rule them all. And to control inflation, the Fed raised interest rates, meaning borrowing got more expensive, business growth slowed, people spent less, save more. But Fed Daddy has to walk a fine line, curb inflation, but don’t slow things so much that we go into a recession. And last week, data came out that basically said the economy is cool in a little fast on employments up and jobs are not hiring at the same pace. But if you’re a regular investor, this shouldn’t really impact your strategy. Don’t panic. Don’t pull your money out of the market at a loss because if you do and you end up missing the 10 best trading days each year, you miss out on a lot of money. Time in the market beats timing the market every single time. Just keep investing. Those headlines are scary to get you to click.