Do you remember Black Monday?

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Do you remember Black Monday? Or as I called it at the time, “Overcast Monday”? It was 24 August 2015. Almost everybody was in a panic back then. At the time I posted a column here that said we shouldn’t worry. (Check the link for the most important chart for any long-term investor).

My point was not that things were not going to get worse, but rather that nobody knows the future. As long-term investors volatility is part and parcel of investing. We shouldn’t be concerned about it.

As the Top40 chart below shows, the local market has actually done very well since that Black Monday, adding some 10% in the eight weeks following the event. All that panic and selling was for nothing and those who panicked and sold are worse off for it.

Here’s a video I did, reflecting on it. The point remains twofold:

  • Nobody knows the future.
  • Long-term investors should not worry about short-term market gyrations.

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