Flexible Plan: In Investing, It's All Relative
(Jerry Wagner, Flexible Plan) The concept of relativity, where what one experiences depends on their frame of reference, can help investors understand what’s happening in the financial markets.
Einstein’s special theory of relativity posits that time slows down depending on your perspective, like time moving more slowly for someone on a moving train compared to a loved one waiting at the station. In investing, the answer to “How is the market doing?” often depends on the time period referenced.
A short-term view of the S&P 500 can look this bleak: