Market Volatility Happens — Here’s Why It’s Not the End of the World— by Noel Whittaker
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Noel Whittaker is the author of Wills, Death & Taxes Made Simple and numerous other books on personal finance. Email: [email protected]
It’s been chaos in the markets — more like a Netflix thriller than a finance report. One day it’s panic, the next euphoria, then straight back to fear. Headlines screamed meltdown, bloodbath, and $9 trillion wiped off the boards. One of the sharpest plunges in history was followed by a record-breaking surge — only to be flattened again by yet another slump. Volatility is back with a vengeance, and investors are gripping their seats.
I spent the week giving talks to well-resourced senior citizens on Sydney’s North Shore, reminding them I’ve been investing for 60 years — and that crashes are nothing new.
One of the earliest – and most dramatic – crashes of my investing life came in 1974 when a severe credit squeeze hit the country. Interest rates soared, inflation was rampant, and banks virtually stopped lending. It became almost impossible to get a loan, paralysing the property market and strangling business activity.
The next was 1987, when Australia was swept up in the global share market crash known as Black Monday. The All Ordinaries plunged more than 40% in just a few weeks, wiping out years of gains and decimating retirement savings. The index fell from over 2300 to under 1400 almost overnight.
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