On Monday, October 19, 1987 the Dow Jones Industrial Average fell an astonishing 22.61%. This was one of the largest declines in the US markets. Though “Black Monday” was scary it was a great time to buy stocks. In fact, in the long run the declines of that Monday turned into just a blip according to …
Continue reading ‘In The Long Run The Black Monday Was A Blip’ »
Global markets have turned volatile in recent weeks. Earlier this month when US markets crashed for a few days market experts were out in full force saying rising interest rate, valuations, etc. were the reasons for the sudden change in the direction of the market. Some simply said that markets were due for a correction …
Continue reading ‘Vanguard: How to Navigate Through Market Volatility’ »
Pullbacks are normal in equity markets. Over the long-term stocks tend to always climb a wall of worry and yield positive returns. So short-term corrections should not surprise long-term investors. Generally stocks go up when considered over many years. To put it another way, though corrections occur every now and then, stocks yield positive returns …
Continue reading ‘Corrections Are Normal in Equity Markets: Australian Example’ »
Pullbacks are common in equity markets. In any given years stocks tend to go up and down for any number of random reasons. Just because stocks have had declines in a year does not mean they will have a negative return for that year. Even when stocks have had big declines they have soared back …
Continue reading ‘Largest Declines and Annual Returns of Global Stocks’ »
Volatility is back in the equity markets with a vengeance. After years of calm and rising markets even a small decline of 2-3% feels like a major fall. Some investors may wonder if we are heading towards a bear market. Even if a corrections turns into a bear market, bear markets usually do not last …
Continue reading ‘S&P 500: Bear and Bull Market Price Returns’ »