What should you know?
In the short term stock markets often appear random and erratic, especially during times of global uncertainty. Sentiment can change from positive to negative, and back again, on a weekly or daily basis without any clear trend or pattern.
It can be tempting to try to draw conclusions as to whether your investments are growing as expected and if you should intervene.
At these moments it is important to ‘zoom out’ and see the bigger picture. With a wider perspective you can clearly see the consistent and relentless upward trend of equity markets.
Why should you care?
It is generally not recommended to invest money that you may need in the near term. Rather, investing should be for a long term aim, allowing money you do not need today to grow and provide you with more life choices in the future.
As such, recent performance and the unhelpful noise about current events is irrelevant and can be ignored.
History shows that over the long term, global equities will always revert to trend and provide patient investors with growth significantly in excess of inflation. The healthy approach is to zoom out and focus your attention on the future.
