What happens if you invest right before a market crash and just hold on? The answer might surprise you.
What happens if you invest right before a market crash and just hold on?
The answer might surprise you.
The Bureau of Labor Statistics released another gloomy inflation report last week. The overall Consumer Price Index (CPI) rose 0.6% in September and 3.7% year-over-year, up from 0.4% and 3.4% in last month's report.
This was market-moving news. The odds for Federal Reserve interest rate hikes ticked up, discouraging debt-fueled investments and pressuring the margins in corporate earnings reports. The S&P 500 (^GSPC +0.41%) fell 1.1% that day while the volatile Nasdaq Composite (^IXIC +1.11%) took a 1.8% hit.
That's the bad news. I should have asked you to take a seat before reading that bit. But I can make up for the nerve-rattling inflation data and Fed rate predictions.
You see, it's still a good idea to start investing (or to keep investing) in October 2026. There may be some dark days ahead, but the stock market still tends to deliver inflation-beating returns in the long run. That's true even if you pick absolutely terrible times to put money in the market.
Market noise is louder than it looks
The stock market is not a smooth ride to the stars. Every day is a new squiggle on the long-term charts. Future investors may remember the September CPI report as a fairly significant blip.
Then again, maybe they won't. Oct. 14 was far from a record-breaking downtick. According to my spreadsheets, it was the 18th time the S&P 500 fell more than 1% in 2026. It also gained more than 1% on 19 occasions so far this year.
One uncomfortable economic report quickly blends into the daily noise. You're more likely to remember week-long price drops when looking at a full-year chart, or longer downturns on long-term time scales.
Averytin News Financial update.