S&P 500 Selloff: Embrace Short-Term Pain for Sustainable Long-Term Gains
I'm back in the thick of market action after a refreshing vacation, which included a visit to the picturesque Santiago de Compostela, renowned as one of the final destinations along the famous spiritual pilgrimage route.
Santiago de Compostela holds a special place for pilgrims who traverse miles on foot or by bicycle, marking it as their ultimate goal.
What caught my attention as I strolled through the city's streets was a compelling message: «Sin dolor, no hay gloria!» accompanied by an image of weary feet. In English, it translates to «no pain, no glory.»
The journey itself is undeniably challenging, and I could sense the incredible feeling of achievement upon reaching the finish line.
As a dedicated investor, I couldn't help but draw parallels between this pilgrimage and the financial markets of recent years.
Particularly in these weeks spanning August to September, the market still appears to be in a corrective phase, a topic we've previously discussed.
Whether this correction is due to seasonal factors or a more substantial adjustment following the impressive rally up to the end of July, it's clear that many investors are growing impatient.
It's worth noting, however, that despite a 7.15% dip from July highs, the S&P 500 is still up nearly 11.5% since the start of the year.
Once more, it appears that we're surrounded by predictions of impending doom, with forecasts of everything on the verge of collapse.
It's the same once again – interest rates, inflation, Central Banks – all seemingly conspiring to bring about another collapse, perhaps akin to the events of 2022 or even worse.
However, in times like these, maintaining the right perspective becomes crucial. It enables us to sift through the noise and maintain our
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