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The Proven Optimism of The Uncertain Future
The Faith That Powers You Through The U.S. Stock Market Crashes
To many people, this bear market in 2022 is the first experience in their lifetime. Nasdaq is down 28% from an all-time high. The S&P 500 is down 18%.
Especially for the people who have become financially independent and retired early (FIRE) based on the 4% withdrawal rate rule, it really tests these people’s tolerance. The whole premise of the 4% rule is that your portfolio will continue to grow for the next 30 and 40 years. How do we know that the U.S. stock market will recover and continue to grow?
We don’t know. No one knows what the future holds.
Human nature being what it is, when I don’t know, I find myself having the tendency to fear. However, the uncertainty is not novel in this century or the last. If we look at the history of the U.S. stock market, it has always been bumpy as hell, rather than a predictable linear line.
My personal experience with money is short, so I wonder how the famous wealth builders (Warren Buffett, Peter Lynch, etc.) were thinking in those interesting times. To keep emotions and behaviors in check, I want to know what they know and enrich my views.
Your personal experiences with money make…
