Short blog posts, journal entries, and random thoughts. Topics include a mix of personal and the world at large. 

Is the correction coming?

Of course it is. It’s just that none of us know when that is going to be. I’m actually looking forward to the upcoming correction because it means things (stocks or otherwise) can be bought at huge undervalue.

That’s assuming I keep my job through the next recession.

Yesterday the stock markets took a huge dump on us investors: both the Dow and S&P plunged over 3%. Nothing to really panic over (yet) seeing as the S&P merely returned to August (of this year) levels, and the index is still up 9% year-to-date. Smart people advises one shouldn’t pay attention to the daily fluctuations of the stock market anyways; given a long enough time horizon, all the ups and downs aggregate out to constant growth over decades.

Should your time horizon be short, then that money shouldn’t be in the equities market. The yield on savings accounts have finally crept back into respectable levels (my Ally account just got bumped up to 1.9%), so it’s a wonderful time to store funds there risk free (up to the $250,000 FDIC limit anyways). Readers of this blog know I’m planning to buy a car soon, so that allocation of capital is safely in my savings. The precipitous drop of yesterday’s stock market didn’t register there at all.

Where it did register was on the recent deposits into my investment accounts. The money I put in these past few months have completely taken a bath due to yesterday’s shenanigans, and as I’m typing these words it isn’t looking too spectacular today, either. Yes it’ll all even out eventually, but it still hurts on a surface level. I’m optimistic the remainder of this year will round out positively, and ultimately none of this matters much as my time horizon is quite long indeed.

So I shouldn’t be looking at the market’s daily machinations, but my human nature prevents me; stocks are simply too intriguing to not follow. It’s super fun when it’s up, and utterly dreadful when it’s down massively like yesterday.

I found Santa Cruz street in Santa Cruz. Oh and a supremely clean NA Miata as well.

I found Santa Cruz street in Santa Cruz. Oh and a supremely clean NA Miata as well.