Page 4 - Wall Street hammered! What now
P. 4
The performance of the S&P 500 over the last ten years (Source: S&P Global)
Yet, despite all of this, if you invested in the American stock market ten years ago and
proceeded to spend the following period meditating in a cave, you’d re-enter the real
world today with a compounded annual return of 12.5% before dividends, or 14.9%
including dividends.
Keep calm and stay invested
As scary as the daily headlines might be, history clearly shows that over time, such
headlines tend not to matter.
In fact, just this morning, we are already seeing some of the fear subside as Trump, again,
starts walking back from his tariff threat. Imagine you were someone who sold in panic,
crystallising a loss, only to potentially see the market rise again.
We don’t live in a news cycle anymore but rather a news washing machine.
Strong returns will go to those who are able to stay calm.
I’d argue the better question to ask, when the markets are in a hurricane of uncertainty,
is not whether you should get out, but whether, in the panic, one might find some great
long-term investment opportunities.
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Future Wealth Planners Pty Ltd is a Corporate Authorised Representative (325961) of Sentry Advice Pty Ltd (AFSL 227748, ABN: 77103642888

