The Sprint to FI

COVID update and some optimism

I wrote a while back about COVID and the financial panic.  We have all heard stories of people pulling their money out of the markets, but we took JL Collins advice and held our course.  In fact, not only did we hold steady, we put money into the market (indexed funds only kids!) and we find ourselves on the upper part of the K shaped recovery.

Frankly we have done well so far over the past 12 months:

We seem to be missing some growth, but it is interesting that the recovery time post the COVID announcements is maybe 3 months. It doesn’t come back to where it was but it does resume growth and that is the important bit.  It’s the same situation with the election blip; it dipped but it is coming back.

Given that we are still not there yet in terms of a complete recovery, I am continuing to push money into index funds.  They are cheaper at the moment.

Do I expect the market to miraculously come back to the pre COVID levels and grow from there? Nope; there has been too much damage done not just in the USA but globally. With that said however, I remain optimistic that we will see growth later this year.  I tend to be politics neutral but I will say that I think the US government is now heading in a better direction than it was.  With the vaccine roll outs that are currently ongoing, I think we will see people back to work this year and (I really hope) unemployment start to drop as old businesses restart, and new business emerge.

Long story short, I am indeed optimistic.

One Comment

  • Zach

    I too am very optimistic! I hope that things work out even better than they were before. More remote jobs, and new businesses coming up!

Leave a Reply

Your email address will not be published. Required fields are marked *