INVESTORS can learn a lot about themselves during a stock market downturn. After all, everyone makes mistakes. The difference comes from how you learn the right lessons from the past and apply them to the future.
As we look back at our past actions, it is imperative that we do not learn the wrong lessons. In that spirit, here are five possible conclusions you should avoid from 2022’s market crash:
1. Avoiding all stocks due to high interest rates
The market decline last year coincided with the US Federal Reserve’s decision to aggressively raise interest rates. Interest rates were raised from zero in March 2022 to 4.5 per cent in December 2022. During the year, the US benchmark S&P 500 index...