Iy really means nothing if the S&P fell on Monday. Days are irrelevant, so are weeks, even months. And let's face it, most are on holiday atm so everything that happens will be based on low volumes. So don't worry bout a thing.
I invest in companies with a 1 to 3 year outlook Minimum. to make meaningful predictions beyond that timeframe is pure conjecture. Example, 10 years from now will $McDonald's(MCD)$ still be the world's biggest burger maker? Well actually McDonalds doesn't make burgers. It owns property and collects franchise fees from franchises that make burgers.
So will they be doing that in ten years from now, or will they bulldoze all their restaurants and build high rise apartments and hotels. I know I'm being a bit silly, but it's silly season. My point though, you really can't predict where a company will be 5 to 10 years from now. Those doing valuations based on 5 year plus DCF analysis are in lala land.
Who could have predicted that the once biggest and best rocket company ULA would be absolutely smashed by a little start up called Space X. Space X launched well over 100 falcon 9 rockets this year, I believe ULA struggled to do 6 launches. ULA has been searching for a buyer for about two years now, and their are no takers. It's a low flying dead duck sadly.
Two years ago, you could foresee the writing on the wall, 10 years ago, definitely not. And what happens tomorrow for ULA is really meaningless.
My time horizon for buying a stock or not buying a stock remains firmly based on educated assumptions as to what's going to happen in the next year, and maybe out to 3 years. Today or tomorrow is insignificant, unless it's significant. 10 years from now, well that's just pointless.
We can say with a level of confidence that the S&P500 will keep going up over time though. And there will be periods where it gets A wack a mole.
In my retirement Account which is similar to a 401k it's 50% of that portfolio. It's up about 11% this year which is fine. The other 50% is in individual stocks most of which have absolutely smashed that return, but a few haven't. That's investing, win some, loose some and learn from success and failure.
I have learned that timing the market is fantastic for individual growth stocks, but it can also hurt short term when you get the timing wrong. With the S&P 500, no point timing. Just buy a tiny bit every paycheck and spend time in the market. You will never make a fortune in a year buying the S&P 500, but over 10 years plus it will start to perform.
In conclusion, this is why I really don't care if the S&P 500 dropped yesterday. Its totally irrelevant For me.
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