Page 3 - Wall Street hammered! What now

The absolute daily change in the S&P 500 (Source: S&P Global)

During this period, the average daily move of the American stock market was only 0.1%.

So, it isn’t a surprise that when we do experience such a day, especially when the market
falls, that we forget history and some people start to panic.

Numerous studies of loss-aversion have frequently shown that people typically feel the
pain of loss more than they do the joy from an equivalent day, and many argue that it is as
much as double the magnitude.

Expand your mind, or time

But what about the long-term?

Have you heard of the term “invest for the long-term” – it’s a great cliché but it’s a good
one because it works.

The last ten years have hardly been a “calm” period.

On top of the COVID pandemic, which plunged global economies to a halt, we’ve also
had extreme inflation, geopolitical instability and war, amongst other “crises”.

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Future Wealth Planners Pty Ltd is a Corporate Authorised Representative (325961) of Sentry Advice Pty Ltd (AFSL 227748, ABN: 77103642888