The latest US-Iranian conflict, tech stock sell-off (Nasdaq down 5% year to date) and now the Fed is putting interest rates on hold. Even Singapore REITs supposedly on track to recover are now facing pressure.
This fear continues as the Iran war faces uncertainty around a resolution. And it leaves people with much confusion
Even the Fear & Greed Index is now ~16, pushing stock prices lower. That’s the kind of fear reading you expect to see during a market correction.
I wouldn’t know where the stock market is heading over the next week, next month, or the next year. It’s hard to tell.
But here's what I know: The average market loss during a correction is ~13%. Yet that loss recovered over a four month period.
In fact, following the last 15 corrections going back to 2008, the S&P 500 was up 15% on average, in the next 12 months.There will be big swings on continued geopolitical tensions.
Finally
There will be times when my stock portfolio goes up.There will be times when my stock portfolio gets bashed down.
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