How did stocks perform in 2022?

 Overall, the S&P 500 fell by 19 percent in 2022.

It will probably be one of the 10 worst performing years for the stock index in at least 90 years.

But keep in mind that you probably started investing in stocks well before January 2022. Look at your returns over the long run before panicking.

Because a major stock index is down almost 20% now is a great time to invest for long term goals like retirement. We've all heard the advice "buy low, sell high." Now is a chance to buy when prices are low (relative to the recent past). 

Rather than trying to time the market, set up a regular automatic monthly deposit into your investment and retirement accounts. No one can consistently time the market by guessing exactly when to buy and sell.

This is what we mean when we say stocks are "risky." Actually it's more accurate to say that stock prices can be very volatile. That's why you don't want your emergency reserve funds, or money you expect to need in the next 3-5 years, held in stocks.

I bonds, U.S. Government inflation-adjusted bonds are a great place for your emergency savings, vehicle replacement fund, and other short to medium range goals. 

Just be glad you didn't buy Tesla stock at its peak in November 2021. The stock has lost 70% of its value since then. Another good reason to have a widely diversified investment portfolio. Don't put all your eggs, or even most of them, in one basket. 

The S&P 500 is up 19 percent since 2020!

 If you want to feel better about your investments, you’ll need to go back to the start of 2020. Stocks have rebounded considerably from the brutal bear market at the start of the pandemic.