The Roller Coaster Of Investor Emotion: Chart

Yesterday major US equity market indices fell sharply after many months of strong gains and record highs. After the initial euphoria of the current administration wore off, stocks have been stuck in steady state for a few weeks now. Elevated stock prices and political drama unfolding in DC led stocks to their deepest decline so far this year with the Dow falling 1.78% and the S&P declining 1.82%.

When markets enter such volatile periods it is important to keep emotions in check and focus on the long-term goals. The following chart shows the roller coaster of emotions that most investors go thru:


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Source: A further 21 great investment quotes by Dr.Shane Oliver, AMP Capital Investors

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