Investing Is Like Riding A Roller Coaster
Always have your seat belt fastened
As I’ve been putting together my outlook for 2025, I can’t help but wonder where the stock market ends up next year after back to back yearly gains of over 20%.
There hasn’t been back to back yearly gains of over 20% since 1998 and 1999.
Things have been so good that the biggest pullback we’ve seen the past two years has been down 10%. That happened in 2023. In 2024 the worst has been down 8%.
Volatility? What volatility.
Investing in the stock market to me has always been viewed like being on a roller coaster.
There are the ups and the downs. The thrills and the chills.
When you buy a ticket to ride a roller coaster, you know what you’re signing up for. You’re signing up for the unexpected up, down and all around experience.
Investing is the same thing. Your ticket is that you’re investing your money to participate in the ups and the downs. The thrills and the chills.
2023 and 2024 have been more like a lazy river ride for investors. It’s felt like you’ve been floating around with your feet up and a drink in hand. The water is smooth and there isn’t a care in the world. All the market seems to do is go up.
Will 2025 be a roller coaster ride or another relaxing lazy river cruise?
As you can see, history shows us that there is no pattern.
There is no advantage. Your guess is as good as mine or any professional on Wall Street. Someone may have more data available to them, but that guarantees nothing.
Nobody knows anything for sure. Everyone is just making their best guess. That’s the beauty of it.
We’re all on the ride together and nobody knows what the roller coaster will do next. That’s why you always have to have your seat belts fastened.
📅 The much anticipated and most read newsletter each year is coming. The 2024 Recap & 2025 Outlook will be coming out on January 4th.
The Coffee Table ☕
I found Ryan Detrick’s piece, Nine Reasons We Still Believe in a Santa Claus Rally to be very interesting. I’m with Ryan on this, even though things are a little choppy right now. He throws out some excellent historical data points and hit some points right on the head. Don’t stop believing in Santa just yet.
Joy Lere who writes
wrote a wonderful post called The Gifts We Give Our Kids. I found this to be helpful and true about raising kids. We have a 6 and 8 year old so this was the perfect thing to read as we are about to reach the holidays with them. If you have kids you will appreciate this.This was an interesting chart to see. It’s investing strategies by generation. You can see how the risk and technology varies from generation to generation.
Source: Visual Capitalist
Thank you for reading! If you enjoyed Spilled Coffee, please subscribe.
Spilled Coffee grows through word of mouth. Please consider sharing this post with someone who might appreciate it.