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Are we overreacting to geopolitical crises?
According to a Goldman Sachs report, historically, the S&P 500 index has declined by an average of 4% in the first week of major shocks, but it is accustomed to returning to its previous levels within just one month.
Markets are inherently fearful of the immediate unknown, but they quickly shift their focus back to numbers and economic fundamentals.
The lesson always is:
Crises create noise in the short term, but the long-term path is shaped by returns, not bullets...
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