Market Volatility Happens — Here’s Why It’s Not the End of the World— by Noel Whittaker

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.


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Crashes are nothing new. Image Credit: Shutterstock



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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