If a friend tells you they’re waiting for a market drop to buy anything, ask them “why do you think the market will drop?” and watch their heads explode.

Sounds silly, but it’s actually a good gut check for your investing decisions.

The market could drop from here. Or it could rally another 50% and never drop to these levels ever again.

I’ll tell on myself here.

I am no market timer, but I used to say that about the housing market when somebody asked when we wanted to buy a house.*

Then, a colleague asked me why I thought the housing mkt would go down.

*btw, we’re looking, not because we tried to time the market, but because we have a dog and want a yard.

housing is something you shouldn’t try to time but that’s a thread for another day

Anyways, that was two years ago. We just went through the worst recession on record by many measures, but GUESS WHAT?

Home prices didn’t go down. They went up. Fast.

Markets are unpredictable. They can stay irrational longer than you can stay solvent yadda yadda yadda.

That’s why it’s soooooo important to know

why you’re investing
what you need the money for ( #goalzzzz)
what you need to invest in to achieve those goals

From there, you can make a plan of how to get from today to your goal dates (instead of potentially waiting forever for that big drop).

BTW, this is not me making a call that stocks will never drop again. They will. Who knows when?

Just try not to base your (long-term) investing decisions on what the market will do next. That’s a fool’s game.

BUT stay flexible and have some cash on hand, in case that big drop happens. https://twitter.com/toddgordonta/status/1357681465681715203