Time to dispel the misnomer of economics that money can disappear. There’s an idea in the world that “rich people’s” money leaves the economy and doesn’t go back into the world to help people. When someone has discretionary income only one of several things can happen: 1) they can spend it, putting it back in to the economy; 2) they can invest it, again putting it back into the system and helping the economy grow; or 3) they might give it to charity, which is pumped back into the system to help people.  I encourage the “rich people” to do what they want with their discretionary income, because chances are whatever they do with it, it’s going to go back into the system and can only help the economy.

When the market sees the kind of drops that we have experienced in the last 18 months, inevitably investors are worried and concerned about when and if it will recover. The good news is that historically, that when the market recovers, it does so fast and furious. The average recovery time for a market crash historically is 111 days. Now is the time to remain disciplined so you can reap the rewards of the coming rebound.

The truth is no one knows what is going to happen in the stock market tomorrow, this month, or this year. Anyone who does try to tell you they know what’s going to happen in the market is either lying or delusional. What we do know is that historically the market goes up two out of every three years. Market prices are random and unpredictable. A prudent investor diversifies their portfolio and does not try to predict the market.