Two weeks ago, I was looking at a chart of the S&P 500 and it was approaching an all-time high. A few days later, it made an all time high. At that point, it seemed like the market would continue to make new highs.
Then the trade war heated up and sent the market into a tailspin.
It feels a lot worse than it is. The S&P 500 is only down 4% from its all-time high. That’s nothing, in the grand scheme of things.
Is the selling over? Maybe, maybe not. The truth is, I don’t know.
We could easily go down 6 to 10 additional percentage points. Or, we could rip to new highs. I wouldn’t be surprised either way.
No matter what happens, though, we here at Wealthy Joe think you should be buying this sale.
We don’t believe in trying to time the market. By trying to time the market, you can miss out on some of the biggest moves ever.
Historically, some of the biggest gains in the market come after some of the steepest sell-offs. It’s true!
Right now, the trade war between China and the United States has the market extremely nervous because of the impact a trade war will have on companies with significant exposure to China.
I can’t tell you when it will happen, but – this trade war will come to a resolution. It could be this year. It could be next year. But it will in both countries’ best interest to make sure that happens.
In the meantime, ignore the noise.
Buy great companies that will thrive in the future regardless of the trade war.
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