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How bad have 10 weeks of stock-market volatility been for your retirement fund? Maybe not as bad as you think. - MarketWatch

1. Investors remember down days more than up days, highlighting loss aversion. 2. Major indexes are flat, but down over the last month and year. 3. Financial advisers see no immediate warning signs despite recent declines. 4. Long-term market corrections don't significantly affect retirement success probabilities. 5. Market performance is less impactful than personal financial factors.

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FAQ

Why Neutral?

Current market conditions are mildly concerning, yet no significant threats are detected. For instance, despite recent market corrections, historical examples (2007-2009) show greater declines with clearer signals.

How important is it?

The market's current flat performance and loss aversion highlight investor psychology that could influence S&P 500 movements. As the S&P 500 reflects overall sentiment, this psychological aspect can sway investor action.

Why Short Term?

The current focus on short-term market fluctuations contrasts with long-term retirement planning. Advisors indicate fluctuations don't usually affect long-term strategies.

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