Just a short week ago the sky was falling and market bears were predicting recession and the end of the world. Today, the market is up close to 1% for the second day this week. While we are still down from the highs earlier of 12,900 on the Dow, slowly but surely the market seems to be regaining its foothold. Will there be dark days the coming weeks, sure, is there a chance of recession, yes, but over time on average, the dow has returned over 8% and small caps over 12%. Be patient and dollar cost average in while we climb back, it will probably make you an extra 3 or 4% this year. All of that said, I personally do forsee a recession although it will probably be mild compared to the Tech crash a few years ago. The inverted yield curve is troubling to me and historically been a sign of problems within 18 months. What you do now? Get your financial house in order, pay down your credit cards, avoid any big purchases that you can't afford, sock away some extra cash for your mortgage and bills, and just prepare mentally that the stock market is not a straight line and some years the market and your portfolio will be down. For now, enjoy the upswing!
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