Initially my VDHG investment was making regular 0.4% gains each day and it was looking like a nice a stable investment. I bought at about $60.10, and after reaching $60.70 it began its plummet to $56.87. A quick 6.4% drop. It is still continuing to drop and there is a lot of uncertainty around the potential effects of the Corona Virus. It is close to being called a pandemic which may have an even greater impact on the economy and my investment.
This period has made me question the ‘timing’ of my investment. I understand that it will probably recover from this COVID crash and maybe in a few months I will be back on track to positive gains and I’ll forget this time happened. But the one thing that I find hard to ignore is that a recession could occur and it will totally nullify my money for years at a time.
If it’s true that recessions are inevitable, then it makes long-term investment seem foolish. You essentially have to invest after a recession and sell before it. Otherwise you will be riding the recession down, waiting for it to recover, returning to your original investment value, waiting for growth, and then by that time you are ready for the next recession. I have to confirm whether this is the case. But it seems like investment goals with 10+ year timeframes in a world where recession occur every 10 years or so seems like bad idea.
AnxiousInvesting 