Artefacts and exhibits
Chrysanthemum rock
Subtly painted screen
- Copyright reserved
Happenings Down Under - politics, business, economy and values ... as well as leisure, food and hobbies
Chrysanthemum rock
Subtly painted screen
- Copyright reserved
Waterlilies
Reflection
Textured painting of nature
For all the wrong reasons 2008 will go down as a historic year but the chances are it won't be repeated next year. As it stands, history tells us next year is unlikely to be as disastrous - there could still be falls but not as bad. On average, 70 per cent of the the past 183 trading years have produced positive returns.
Despite the daily to monthly volatility of the markets, stepping back and taking an annual view smooths out the performance.
It is the most relevant view for most private investors because we tend to take a medium- to long-term view and invest in quality stocks. But it's human nature to be attracted to drama. So when there is a sharemarket plunge, we follow it day by day and get panicky when things continue to deteriorate. Markets reflect investor sentiment and psychology and become panicky when we become panicky. Try to break the cycle. Take an interest, of course, but keep it in perspective rather than get sucked into the drama.