Rough day for the market, and many fear this is just the beginning. Investors have been riding an incredible wave for the past year or so, with many stocks or funds closing at new highs seemingly every week. As the old adage says though, what goes up must come down. There are many lessons that can be learned in the downturn of a market: patience, minimalism, gratitude, breathing techniques, etc. Although my investing experience is admittedly small, it seems to me that these things come and go, and the most important thing to remember is that eventually, this too shall pass.
Another lesson that can be taken from times like these is the necessity of diversifying. I'm unsure of where I originally heard this quote, but it's something that's especially pertinent as the world economy could be looking at the start of another decline or recession: there is power of abundance in uncorrelated bets. In plain terms, it's not a good idea to have all your eggs in one basket. The S&P 500 has shot to all-time highs lately, but that doesn't mean you should be all-in with your money in that or similar mutual funds. Having percentages of your investments in areas such as precious metals or crypto can be a great way to still see some green when everything else is red.
Remember, this has happened before. Numerous times. And though times may get much worse before they get better, as long as we're still breathing, we've got a lot to celebrate.
"A Single Seed" is my attempt to get out one idea every day that I've learned or accumulated over the years, with the hope that it may stick in someone else's memory bank as well. The idea may be related to fitness, business, life, or philosophy, but I think you'll find that many can change domains if you wish them to. With each seed planted, a new life awaits.
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