“Fortune favours the brave.” Investing more aggressively is one of the key behaviours of money masters in creating long term wealth. But when the share market falls suddenly and significantly many people cannot contemplate such a behaviour.
To help you be comfortable to invest more aggressively you need to invest time educating yourself about the short term risk, the long term rewards and your available options. Education and awareness is one key.
To assist you, Vanguard have published a chart of the volatility of the Australian share market index over the past 30 years. It shows that there have been 7 times since 1978 that the index has fallen more than 10%, for an average fall of 21.2%. The chart also shows the time length of the downturn and the subsequent recovery.
Remember: wealth creation is a long term game. What happens in the short term is mostly irrelevant – it’s just a blip on the radar.