Making Lemonade in the Stock Market

For just the third time in a long time, the stock market has declined for three consecutive quarters.

Things feel dark out there, and investors are losing hope. But for those of us that are still contributing money to their future, this bear market should not be met with anxiety, but with open arms.

If you were contributing $100 every month to SPY, you would have been able to purchase half a share at the beginning of 2015. By the end of 2021, that same $100 only got you one-fifth of a share.

Now that markets have pulled back, your money is able to work harder even though you’re investments are on autopilot. Yes the money that you already invested is worth less, but the money you’re investing today will be worth more in the future.

Unless you’re managing a hedge fund, successful investing is not measured by risk-adjusted returns. For the rest of us, it’s about building wealth, however you choose to define it.

Bear markets are no fun, but this is where all the best long-term returns come from. The dollars you invest on the way down will be worth more on the way back up.