COVER STORY
Market crashes
“ If you ’ ve bought a stock as a momentum trade , to gain exposure to an in-vogue market , or because someone has tweeted that it ’ s going to the moon , then you have every right to be fearful ”
Eric Burns Sanford DeLand ’ s chief analyst
there is no need to panic . People often forget that future returns are directly related to the price paid .”
Looking up Once you have calmed down , rationalised any losses in your portfolio and , most importantly , resisted the urge to sell , you may well start thinking about investing more , which certainly wouldn ’ t be the worst idea : basic maths shows the best time to buy into the market is when it reaches its lowest point . Yet while the bottom looks clear in any graph of stock market performance in previous crashes , this is not what it feels like at the time .
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