I wanted to take a look at my Portfolio over the course of the pandemic and the market crash that resulted because of it. It has been a rollercoaster for sure. Here is a brief history of the past year or so.
I started investing around 2003. I was out of college for a few years and had just landed my first real job. My first investment in the stock market was via my employer’s 401K program. Initially I invested 10% of my pay. Fast forward a few years, and I bought my first individual stock and opened a Roth IRA. Sprinkle in some real estate, and you have a picture of my portfolio. Stocks, Mutual Funds, and some real estate.
I have been investing monthly into my holdings like clockwork without fail since the beginning. I have experienced a few market downturns, and I have always stayed the course.
Before most people heard of Covid-19 my portfolio was gaining ever more and more. In February of 2020 it was sitting at $726,000. I was up $30,000 for the year already and thought it would keep pushing higher. Then the bottom fell out.
Height of the Crash
In March of 2020, my portfolio dropped to $643,000. That was a drop of close to $100,000. Ouch. But I stayed the course. I did not sell anything, and I kept my monthly contributions going. Riding out the storm was a smart decision as you will see in a minute.
As Spring and Summer rolled on my portfolio slowly recovered. Fast forward to the present day, and my portfolio is sitting at $743,000. Not only did I regain all my losses, but I am ahead by nearly $20,000.
The moral of this story is to hold the line. Do not panic sell and make knee jerk reactions based on daily headlines. If you have a plan, and you believe in it, then stick to it. As you can see from the above example buying and holding for the long-term means to ignore the day-to-day changes of the markets and focus on your overall goals. How did you fare during the pandemic? Share your experiences below.
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