“The Market Got Endless Things To Worry About Sia!”

But does that mean you should stop investing?

There are always something seemingly important that investors and traders go crazy over and try to predict them.

But very often, it turns out that these events weren’t very impactful in the long run.

Here are some examples:

YOU WILL NEVER KNOW FOR SURE HOW AN INDIVIDUAL STOCK DECIDES TO MOVE.

But does that mean you should stop investing?

For the past 20 years, AMZN stock price had an annual max decline ranging from 10% to even 80%.

You can say that AMZN had a double digit fall almost every year.

But in totality, for the past 20 years, AMZN grew from $10 to $3000, that’s an increase of more than 30,000%!

Keep in mind that past performance does not indicate future results

Stock volatility is completely normal, it shouldn’t be scaring you away.

Don’t let it stop you from investing!

THERE WILL ALWAYS BE SOMETHING SCARY TO WORRY ABOUT!

But does that mean you should stop investing?

In March 2020, the Covid-19 pandemic caused economic disaster globally, everything fell, people lost jobs, businesses shut down.

US was one of the worst hit countries. However, from Jan 2020 to Dec 2020, the S&P500 grew 16%.

Keep in mind that past performance does not indicate future results

But wait, there’s more! Let’s see…

– Early 1990s recession
– Dot com bubble (2000 – 2002)
– 9/11 attacks (2001)
– Financial Crisis (2007 – 2009)
– Late 2000 worldwide recession
– Covid-19 pandemic

These are just some of the major economic crises from the 1990s to now.

Similarly, in the same time frame, S&P500 grew 950% without considering dividends!!

Keep in mind that past performance does not indicate future results

So, for a long term investor, it’s as if these past crises don’t exist!

Don’t let it stop you from investing!

THE ISSUE BEHIND US AND CHINA WILL ALWAYS BE AROUND TO SCARE YOU!

Warren Buffet said this in his shareholders’ letter: “We will continue to ignore political and economic forecasts, which are an expensive distraction for many investors and businessmen”.

If you let such geopolitical events prevent you from investing, you will never get a chance to start investing as these events will always be happening.

Thus, you will risk losing out on the returns.

Similarly, these pictures shows how the market performed during previous geopolitical events.

As you can tell, it is generally an upward trend in the long run even in the presence of those geopolitical events that threatens the stock markets.

Don’t let it stop you from investing!

I hope that by now you should understand why a long term investor shouldn’t be affected by volatilities in the stock market.

In fact, you should take advantage of it as every crisis is an opportunity!

If you require any assistance or input, feel free to contact us here or at any of our platforms.

CHEERS! 🥑🥑🥑

Disclaimer: This post is for your information only and does not constitute any form of financial advice, you may wish to seek advice from a financial consultant before making a commitment to purchase any product.