Hi Scott,
I stupidly put $9,000 into shares before Trump, when prices were high, but now they’ve gone backwards! Yikes! I haven’t sold them (yet), but I’m just wondering how low can they go? Obviously these tariffs and trade wars are biting, but will it end? And how can we tell when the lowest point is reached? And will it ever recover?
Helen
Hi Helen, How low can your shares go? Well, my back-of-the-envelope calculations say that you’re down about … $700. Boo. Bloody. Hoo. Helen.
Seriously, if you’ve going to invest, you should be prepared for your shares to (temporarily) be cut in half.
It’s happened before!
Yet here’s the key: the market has always bounced back, and then gone higher. And that is why we invest: it’s because the share market really is the greatest wealth-building tool in history … but only if you allow your money to keep compounding. So, here’s your three-step survival guide:
First, only invest in index funds with money you don’t need for at least five years.
Second, have enough Mojo – cash in a savings account – so you can sleep at night and not panic sell.
Finally, be like me – only check your shares once or twice a year. You’ll be much happier and wealthier for it.
Scott