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Should I get out of the market when market crashes?

The year 2022 has not been kind to investors.  After the boom during the Covid-19 pandemic when he had massive drops and then a boom like no one had imagined, many tech or growth stocks have lost massive value.  Even otherwise solid companies like Amazon, Tesla, Apple, Facebook/Meta, etc. have lost a lot of value.  In times like these, particularly if you entered the market during the pandemic (meaning at or close to the peak), it is tempting to think that the market is rigged/broken and "not for me."  This is the biggest mistake you could make.

Let share this chart with you then.  This shows the market's performance between 1982 and 2022.  Indeed, there have been drops, but what do you see over the long term.  Nothing but growth.  In fact, when you look at real estate, gold, etc., they don't appreciate like the market does.

Chart showing the all time performance of the S&P500 index

So what is the secret to investing?

For me, it is all about keep investing no matter where the market is going.  I entered the stock market close to the peak of dot-com boom, and of course, there was a crash.  There were other drops around the September 11 attacks, 2008 housing collapse, early stages of the Covid pandemic in 2020, and then this year.  I have not been perturbed by this turbulence.  As a result, the money I invested has continued to grow.

But what if you are currently in the red and have doubts about the future?  What if your spouse, family, and friends are making fun of you and telling you to get out?  In moments like this, listen to the facts and look at the numbers and evidence.  There can even be years of pain in the market, but if you want to become a millionaire, then, you will have to think long-term.

I have been very transparent about not being able to envision myself as a millionaire because it is hard when you are starting with a few thousand dollars of net worth.  It was so difficult in the 1990s to view the year 2022 and see myself where I am today, but if my experience can tell you anything, it is that if you keep investing whenever you have some money saved, just do it.