Skip to content
Albert Einstein

Physics and the Stock Market

What goes up must come down?

Back in physics class, I learned that:

  • Every action has an equal, opposite action.

And that implies that what goes up must indeed come down. The media is more than happy of late to point out this “fact” when it comes to the achievement of all-time highs in the stock market. They cry out, “When’s the crash coming?” or “Get out now” amongst many other things.

Are they right? Maybe, but I’ve got a different perspective.

Will the market go down?

In short—absolutely! But I don’t think that’s the question that we should ask when it comes to investing. Instead, the question to ask is:

  • Do I want to participate in the collective value of humankind?

By my way of thinking, the stock market reflects the value of a number of companies. These companies are made up of people—and the value of the companies comes from the collective mental genius of all of their employees. To me, this is a “rocket ship” that I want to be on.

Does that mean that the market will always go up? Nope. In FACT—and I use that word intentionally—I’m 99.999% certain that we will have periods of time when the market goes DOWN. But, long-term, I am extremely confident that we will continue to grow as a civilization and will create more economic value, which will be reflected in companies being worth more, stock prices being higher, and the market rising over the LONG-TERM.

So why not get out now—and jump back in when the market goes down?

If only it were that simple!!!! The strategy of jumping out of the market when it is at peaks, and back in when it is at troughs, is known as market-timing. And it’s a fool’s game. No one has proven that they have the ability to effectively time the market. Read that again. No one.

If you don’t believe me, do the research yourself. Sure, you’ll find some folks who claim that they have done so. But when you investigate their claims, you’ll find that they don’t have a long-term track record of success.

If you don’t believe the facts—which is crazy in my opinion—can you at least subject this idea to the following “sniff test”?

  • Does it seem “too good to be true” that you can jump in and out of the market at exactly the right time?

There’s a reason that your mother told you to be careful about things that sound too good to be true!

To pull things together here, history would suggest:

  • The market is at what is nearly an all-time high.
  • At SOME TIME the market will go down.
  • Determining when this will occur is impossible to do consistently.
  • Long term the market will trend higher.
  • Investing in the intellectual capacity of humankind is a wise investment.

All of this has me unconcerned about the articles the press is putting out trying to scare us—again!!!

You can read a bit more information on this topic here. While the article is from 2021, the story is the same!

Would You Like More Support?

      • Do you have a well-defined Investment Policy Strategy that is used to drive your investments in support of a comprehensive financial plan?

      • If not, would you like to partner with someone who is used to helping people get through these struggles and (then, with confidence) implement portfolio strategies in a systematic manner while focusing on your desired outcomes?

If so, feel free to send us an email or give us a call. We’d love to have the opportunity to help you find a bit more peace of mind when it comes to investing.


F5 Financial

F5 Financial is a fee-only wealth management firm with a holistic approach to financial planning, personal goals, and behavioral change. Through our F5 Process, we provide insight and tailored strategies that inspire and equip our clients to enjoy a life of significance and financial freedom.

F5 Financial provides fee-only financial planning services to Naperville, Plainfield, Bolingbrook, Aurora, Oswego, Geneva, St. Charles, Wheaton, Glen Ellyn, Lisle, Chicago and the surrounding communities; to McDonough, Henry County, Fayette County, Atlanta and the surrounding communities; to Venice, Sarasota, Fort Myers, Port Charlotte, Cape Coral, Osprey, North Port, and the surrounding communities; and nationally.

We'd love to have the opportunity to hear about your situation. Contact us here to schedule an appointment for a consultation.

Learn more about What We Do.

Helping You With

Wealth Preservation – Wealth Enhancement – Wealth Transfer – Wealth Protection – Charitable Giving


Sign up for our newsletter to get insights on investing and financial planning.

Posted in ,
Curt Stowers

Curt Stowers

Curtis Stowers helps individuals and families across the United States grow their financial assets, particularly in the Naperville, IL region. He is a Certified Financial Planner, holds a Ph.D. in Industrial Engineering from the University of Illinois, and is the founder of F5 Financial.