Investing With a Long Term Mindset

We are living in times of uncertainty and everyone from investors to the average person working is experiencing the overwhelming anxiety that comes with it. Since the start of this year, we have seen the Russian – Ukraine conflict and constant talks about recession in the news. It is very normal to be worried about how these negative events will affect the long-term performance of your investments and how it can possibly affect your future goals. However, at the same time they do not have to be a reason to completely panic about the markets when you are in a long-term investing mindset.

Imagine it’s 25 years ago in 1997

• General Motors is releasing the EV1, an electric car with a range of 60 miles.
• The internet is brand new, Y2K looms, and everyone is worried about the Russian financial crisis.

Now someone says they are going to tell you what will happen in the next 25 years. The following events will happen:

• Russian default
• Tech collapse
• 9/11
• Stocks’ "lost decade"
• Great Recession
• Global pandemic

With knowing these events would occur some questions to ask yourself when thinking about these events are, would you still invest in the stock market? would you have taken your money out of the market? Increase or decrease your equity holdings?

The point we are illustrating is that with all these challenges, the market still carried on and progressed forward. In fact, from January 1997 to December of 2021, the United States stock market had an average 9.8% return per year! How in the face of all these disasters during this time period could that be?!?

If you have any questions or concerns about your investment options and portfolio you can reach us at Investments@grwealthplan.com