According to JPMorgan’s ‘Annual equity returns and intra-year declines’ data released on 30 June, the average ASX 200 intra-year drop over the past 32 years was 13.8% (median 11.5%).

While that might seem alarming, what is interesting is what happens afterwards.

Despite that recurring mid-year drop, the ASX 200 has still finished the calendar year in positive territory 23 times out of 32.

So, what it points to is a pattern, and it’s the pattern that we consistently see in financial markets. Falls are the norm, not the exception, and after every fall comes recovery.

It’s another reminder that when it comes to your investment strategy, patience pays. The best way to build sustainable generational wealth is to stay focused on long-term goals and to try to avoid knee-jerk reactions, even during downturns.

If recent market moves have you concerned, however, we’re always here for a confidential chat. We can help you gain clarity around your investment strategy, so you can make every financial decision with confidence.

General Advice Warning:

The information in this blog is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider whether the information is appropriate for you and seek professional advice before making any financial decisions.
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