In other words, what we have seen is a typical, if sharper than usual, market cycle. In the short term, it is painful. But in the longer term? It really doesn’t mean much. As long as the economy is basically healthy (which it is) and as long as policymakers are on top of things (which they are), companies will keep growing and making money. We, as investors, will be able to profit from that.
So, Why Is The Market Going Down?
Because the Fed is raising rates to get inflation under control. This is painful in the short term, but necessary to lay the foundation for future growth. As always, we just need to ride out the short-term pain to benefit from that future growth.
Keep calm and carry on.
Brad McMillan is the chief investment officer at Commonwealth Financial Network.