After a record-breaking year, the stock market has had a bumpy few weeks.
Bureau of Labor Statistics, the Consumer Price Index is up 6.8% year over year, its highest since 1982.
In response, the Federal Reserve is aggressively dialing back its bond buying program, which was intended to bolster the economy during the early stages of the pandemic.
Case in point: For more than a year and a half, the market has been shattering records — despite a global pandemic, record inflation, a labor shortage, supply chain issues, and other economic concerns.
Conversely, if you sell too late after the market is already on a downhill slide, you may be selling your stocks for less than you paid for them.
The market also has a 100% success rate when it comes to recovering from crashes, so as long as you’re patient and avoid selling your stocks, you can simply ride out the storm.
This means the companies have strong financials, a competent leadership team, and a history of performing well over time.
While even the strongest stocks may take a hit in the short term, they’re more likely to bounce back after a crash.