The markets are in turmoil, the economy is in shambles and the end is nigh. Most people are scared. I've just contributed the max to my Roth IRA. Am I incredibly brave or incredibly stupid?
Here's my though process. You can't predict the markets. You can't time the markets. However, you can take advantage of low prices. We're seeing market prices from 10 years ago. Considering that over the long run the market has always gone up, investing now seems a good idea.
We've been through wars that have destroyed entire continents. We been though depressions and recessions. People have starved to death in the past. The chances of that happening are pretty small.
We may experience a rough patch, but for those of us with a long term investment horizon, now might be a great buying opportunity.
By the way, you can contribute $5,000 this year.
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