The IWM ETF (which tracks the Russell 2000 index) has dropped about 40% from its previous high. So, it looks like a pretty good time to buy for longer term investors. The IWM (and the Russell 2000 for that matter) might drop even more if we actually experience a recession (this index usually falls first and the hardest during recessions but is generally the first and the fastest to recover).

Regardless of whether we experience a recession or not, the IWM (and Russell 2000) is likely to recover its previous high within 3 years or so. If you’re thinking a 40% gain in 3 years sounds pretty good, then do your math again. Because it would be more like a 67% gain which is very substantial. Even if the IWM took 10 years to get back to even (which would be a very rare occurrence), that would be a 6.7% gain every year which is a pretty decent gain.

If you like technology stocks then the QQQ, which tracks the Nasdaq, has also dropped about 40% from its previous high which means it will also experience about a 67% gain once it gets back to its previous high.

Another thing you can do is split money between IWM and QQQ if that is your preference or buy over several days, weeks, or months. The only problem with that might be when they recover they generally rise sharply so you might miss out on some of the early gains if that happens.

You’re Welcome.

You can learn about all of my investing techniques via my “Invest Like a Pro in 10 Minutes a Day!” series of 4 books where you can learn the “end to end” process to investing and gain key investing insights and skills (https://brighterdayslifecoaching.com/published-books…/)

Also, you can read all about my stock market activities here: https://brighterdayslifecoaching.com/stock-market-activities/

I wish you much success in creating a brighter financial future for yourself, your loved ones, and those who follow.

Happy investing everyone!

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