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Big swings in the market, and in our emotions.

Big swings in the market, and in our emotions.

May 10, 2022
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The stock market began last week with a strong rally, only to be followed by a sharp downturn at the end of the week, which resulted in market indexes closing out the week modestly lower. On a positive note, the April employment picture was better than anticipated which may reduce the possibility of a recession.

Stock market volatility and lower portfolio values are challenging for all investors. Let’s take a look back at the past hundred years of stock market history to help put the current market moves in perspective of long-term growth. The average annual gain for many broad-based stock indexes is around 10% per year, and this includes both the large drops and the big rallies. Stock market drops are a part of investing, and they are factored into your long-term investment strategy with BAM. An investment strategy allows you to make a plan with sound decisions when you are cool and collected and keeps you on course when the stock market is volatile and your emotions are suggesting you make impulsive decisions. This is the edge you have over novice investors, and it makes all the difference in long term investment growth.

Photograph by: Mason Panos on Unsplash

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