BRIGHT KHUMALO: Bear markets are a natural part of the economy
But it does not negate the market’s power to create enormous wealth for the patient investor
I’m back, so is volatility in our markets. We’ve had a volatile couple of days. This reminded me of an old story in which John Pierpont Morgan was asked by a group of investors to forecast how the markets would go. Morgan stared down to his shoes, bristled his moustache and replied: “Markets will fluctuate.”
Today’s segment is about why market drawdowns, or what we call red days, are normal. These are so normal in fact that you’re likely to have a 10% drop in a market, with as much regularity as you celebrate your birthday, Heritage Day or another big holiday. ..