What should you think about bumpy markets?
Short-term market movements come from politics, speculators guessing what other speculators are guessing about, geopolitical events, Fed pronouncements, interest rates, and occasionally even actual business results!
Over the next 2-3 years plus - the bare minimum of an investment horizon for nearly anyone – markets and their constituent stocks mostly see price changes that come from value changes - based on their actual business results.
But how do we feel about choppy markets? We are wired to notice and avoid danger and red digits on the screen feel like trouble to our brain. Looking at falling prices can make you feel a little like Austin Reaves.