The Stock Market Always Rebounds
I’m a great believer in the US stock market. The global market to a lesser degree, because they’re all newer, and there’s more uncontrolled external factors like regulation, corruption and war.
People I know in professional circles tend to be naturally pessimistic about the market.
![The Stock Market Always Rebounds 2 History of market corrections showing the stock market always rebounds](https://hooshmand.net/wp-content/uploads/2023/10/history_of_market_corrections2-hires-1024x708.png)
Yes, markets crash. They’ve always crashed, and they’ve always returned.
For the market to crash to zero, you’d have to say: “There is no value left in anything in the market.” This will never happen. There will always be a floor, where someone with cash under their mattress will begin buying again.
The stock market always rebounds. It always has.
The challenge is knowing when exactly!
I bought in to the stock market in June 2018. The market was steady aand grew for a couple of months.
And then… it crashed, spectacularly, falling 20% from its peak.
In October 2018, the Dow topped 26,500, and was approaching 27,000.
By mid December it was below 22,000!
But I remembered what I always believe: the stock market rebounds.
I posted this on LinkedIn:
Just to show this wasn’t a total act of hubris, here’s the chart since then.
![The Stock Market Always Rebounds 3 Evidence that the stock market always rebounds.](https://hooshmand.net/wp-content/uploads/2019/04/Stock-market-always-rises-again-smaller-2-copy-1024x542.png)
In fact, since i posted this, the market has recovered almost entirely. The Dow is back around 26,500.
So do I sell, knowing another crash is imminent? Or hold on to it?
I don’t think I’m going to worry about it.