Downturns this deep can take a long time to recover from, financially and mentally

Roller coaster

Before last week’s rebound, US stocks had lost around 25% since mid-February, as measured by the S&P 500 Index. Like many of you reading this, my savings have taken a big hit. I set up a junior ISA for both of my children in February, and that money has also fallen by around a quarter. I know we always say that investing in the stock market is for the long term, but that doesn’t make holding your nerve through this any easier.

Every single time there is a downturn it feels like we are drowning. When will the storm end? When will we be able to catch our breath? Where is the dry land? Importantly, how we respond to these downturns can have a big impact on our future wealth.

View Full Article – published by Schroders on 14th April 2020