I Haven’t Lost Any Of My Money In The Stock Market, Even During The Down Slides.

Market ArrowSo.  Britain voted to exit the EU.  What’s that got to do with the US stock market?  Well, I guess a lot, as it plunged the day the news was released, or maybe, the day after.

Yep.

The market took a Nose Dive, again.

Why?

I don’t know.  Emotion is the only thing that I can think of. Fear.

Fear that it’s all gonna go “South.”

Well, it did.  The market plunged.

BUT!

I didn’t lose my money.

What?  Shin, how did you not lose any of your money when the market plunged?

Well, my portfolio is still larger than my initial investment.  AND!  I’ve been drawing off each month.  It’s paying for my early retirement.

I’m drawing money from my portfolio, and the market went South, but I haven’t lost any of my money.

?????!!!!!

I know!  How the hello does this compute?

Well, Hal, the only thing that I’ve lost is growth.  It wasn’t my money that I lost, it was the money that my money made.  MY money is still in my portfolio!

If you look at the history of the market, you’ll see that it’s gone down and come back up again.  Mostly up.  That’s how it works.  That’s why the market is the place to invest.

Check out these articles:

S&P 500: Total and Inflation-Adjusted Historical Returns

Is the 7 Percent Return for Stocks Extinct?

8 lessons from 80 years of market history

Investors question wisdom of 10% rate of return rule

How Have Stocks Fared The Last 50 Years? You’ll Be Surprised.

Now, here’s the thing.  Read each article to the end.  Don’t give the titles a second thought.

So, I haven’t actually lost any money in the market, and these articles back up my thoughts on staying in.  I’m in it for the long haul, the historical performance.  That’s what keeps the market in business.

So, what did you get from these articles?