Netflix stock is down over 35% this week after a bombshell report revealed a drop in subscribers for the first time since 2011, while United Airlines and American Airlines are looking forward to big gains as summer travel makes a comeback.
Comments from Federal Reserve Chairman Jerome Powell have investors expecting a 0.5% interest rate hike next month.
The biggest trackable upcoming event is the planned interest rate hikes starting next month, which affect investors because they siphon interest toward government-backed securities and Treasury funds, and tend to discourage consumer borrowing and spending, which lowers overall market performance.
The market looks forward and reacts fast.
The best performing portfolios are ones that are diversified and have the most time in the market.
The great thing about index funds is that they are diversified, meaning your money is spread out among hundreds, if not thousands of companies.
Instead of just investing in Netflix stocks, put your money in an index fund that tracks the S&P 500.
“The most important thing is to always remember what you’re investing for,” says Thomas Muñoz, associate financial life advisor at Telemus, a financial advisory firm.
Whatever you do, invest early and often, especially if you have a long investment timeline.
You can even take advantage of a dip to invest more, but not if it impacts your regular investing schedule, Muñoz advises.
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