This is an interesting factoid, and quite obvious when you give it a little thought.
The majority of the time your investments are worth less than the highest value they have achieved.
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In my world being below the highest value is being in “drawdown”. In the article (point 3) we can see that the S&P500 (the main US stock market) has, since 1928, spent 71% of it’s time below it’s peak.
Therefore “drawdowns” are both normal and the usual state of affairs – you should expect your investments to be worth less than the previous highest point most of the time.
The apparent contradiction is that the S&P500 has, on average, produced a total return close to 10% pa since 1928.
Meaning that the 29% of the time it is above the previous high it is really motoring and producing very healthly returns.
All of which is to say that the current malaise you are experiencing with investment values is entirely normal and to be expected.
Which is turn means that nothing is wrong or broken or needs fixing – if we stick to the plan the historic record shows we will be rewarded.
The UK weather seems overcast 71% of the time to me, but we get through it. And our forbearance is because when the sun does shine there’s nothing quite like it is there?
The sun will start shining again soon enough, but expect it to be cloudy most of the time.