Those of us in it for the long haul are now going to have to make room for all the good-time-only investors, because today the market is on the cusp of a large and sustained BOOM (though not as sustained as I would like it to be).
Nice solid market returns have happened since 2009, but many of the uneducated still have believed the market to be a place to be away from during that whole time. That attitude will now change.
Today's economic news shows that first-time filers for unemployment benefits is the lowest it has been in 5 years, beating estimates. Housing starts have increased 12%. Bank of America had crazy unexpected profits.
Look for a drop in the unemployment rate too.
Why is this a "sad time"? Because, as a long-term investor, it is always better to be in bad or mediocre times while seeing the light at the end of the tunnel rather than entering the light at the end of the tunnel and seeing the next tunnel ahead.
So, what to do? Well, if you have been out of the market since 2009, then too bad for you, and I have no comforting words for you other than you should be back in today. Get ready to see some nice gains for a period of time now. So, keep putting money in and see it grow. Continue to eliminate risk by getting rid of debt and growing your emergency fund to as much as a year even if you are close to retirement. And then continue to put money in when the inevitable drop happens at the end of this bull run.
So, put money in during good times and bad? Yep. Gotta make sure you are out of debt though.
Would have been fun to continue to see nice returns that were still low enough to be under the radar of the average person, but beginning today, that's all over. Big increases to happen for a while.