#MarketTurbulence

What do the market turbulences mean?

Crises and market corrections have always been part of economic life. They happen every now and again at irregular intervals. It is also impossible to predict how far share prices will fall and how long they may take to recover.

A glance at history shows that crises are usually followed by longer periods of recovery. For example, after the 2008 financial crisis the Swiss Performance Index (SPI) only returned to its pre-crisis level in 2013. In the case of the recent shock caused by the corona pandemic, prices recovered within just a year. So you can sit tight and wait out any crises, because time is on our side.

Market turbulence is part and parcel of investing, and brings opportunities with it. These fluctuations can be managed better with long-term investment plans and diversified portfolios.

This means it’s worth staying calm.