This Is the No. 1 Thing Most Beginner Investors Get Wrong About the Stock Market -- and It Could Cost You Thousands
Key PointsInvesting can be daunting, especially when someone is just starting out.
Many beginner investors make a costly mistake when it comes to the stock market: reacting emotionally to periods of volatility by selling their investments. This behavior can cost them thousands of dollars, as it often takes place short-term and doesn't consider the long-term outlook. The stock market has been highly volatile since the pandemic, with the S&P 500 experiencing a 20% decline in 2022 and a 15% annualized volatility over the past century.
While it's tempting to sell during market downturns, history has shown that long-term investors in the S&P 500 generally fare well. Even during turbulent times, such as the Iran war causing high oil prices and inflation, the economy has remained resilient, leading to gains for the market. Patient and calm investors can often weather market fluctuations.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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