Sometimes we forget the simple truth.
Markets go down. In fact a lot of times.
Let me clarify…
Markets go up, and then they go down. Over time they go up more than they go down.
If you have forgotten this, probably today is an apt time to refresh your memory.
Here is a time travel across the last 40 years…
As seen above, declines are a normal part of equity investing.
In fact, a 10-20% temporary decline is as common as your birthday and you should expect this almost every year.
The average intra-year decline has been -21 percent for the last 40 years.
The chart below is a summary of the past intra year declines (all the charts that you saw above).
Now that you are aware of how markets have behaved in the past, is the current market decline something that you should be surprised about?
We have shown you the proof.
To paint this as a crisis or to convert this into an opportunity, is a choice that you have to make.
As always, Happy Investing! 🙂
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