Did you know the S&P 500 has returned an average of 12% per year since 1980? And that it has done so despite an average intra-year drawdown of 14% (!).
Often, the drawdowns are much worse. And yet, by year end, the market still delivers a positive return.
The chart below illustrates -
The lesson? Volatility doesn’t equal a permanent financial loss unless you sell.
You need to sit through the hard times. The good times will come. And that applies to life too.
Matthew Matthee has a wealth management business that specialises in retirement planning and investments. He writes about financial markets, investments, and investor psychology. He holds a Masters Degree in Economics from Stellenbosch University and a Post Graduate Diploma in Financial Planning from UFS. MatthewM@gravitonwm.com
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