Dizzy from world stocks’ wild whipsawing? It’s yo-yoing many investors from panic to sweet relief and back repeatedly amid frightful headlines. Who knows when the frenetic ride ends? No one possesses such clairvoyance. But history shows those maintaining your cool during corrections like this earns big rewards later. To help toward that, here is my volatility survival guide.
In January, I told you 2022’s midyear combination of US political gridlock and fading global fears spelled a great year for world stocks—but with a rocky, grinding first half to endure. No, I didn’t foresee global stocks’ near-immediate drop or Putin’s horrid invasion. Pinpointing any pullback’s start or end is a fool’s errand. But gut-churning short-term gyrations like early 2022’s are the price investors routinely pay for stocks’ high long-term returns. Volatility and stocks go hand-in-hand. Embrace it. Don’t try timing it. You can’t control it—only how you react.
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