Did you ever watch those old cartoons where the dog or cat are running in circles going nowhere?
If you did, then you might be able to relate to what the market has done over the last 2.5 years. The stock market is right back where it started back in April 2021.
Some interesting facts over the last 2.5 years: If you would have bought at the high in 2021, you'd be down over 10% today. However, if you got lucky and bought in October 2022, you'd be up almost 20%. From its high in 2021 to the low in 2022, the market was down over 25% at one point.
Is this anything new. Nope.
Should we be worried about this. Nope.
What did GDP (Gross Domestic Product) do over the same period of time?
GDP went virtually straight-up from $23 trillion to over $27 trillion.
What's going on?
Charlie Munger said at one point, "If you're not a little confused about what's going on, you don't understand it."
This is what markets do, they provide very uneven returns. In the short-term, it can feel like we are going nowhere fast.
-Paul R. Rossi, CFA