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
18 February 2021 - 17:24
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. ..
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