How would you cope when markets fall?
Before you invest a single euro, it helps to know something about yourself: how would you actually feel, and what would you actually do, if your investments dropped sharply in value?
It's easy to say "I'm in it for the long term" when prices are rising. It's much harder when the news is grim, your app is showing red, and everyone around you is worried. Every investor goes through this sooner or later. Here are five real moments from the last 25 years:
The pattern: nobody saw these coming, each one felt like "this time it's different", and in each case the people who sold in a panic usually locked in their losses. But recoveries are not guaranteed or quick – after 2000 and 2008 some investors waited many years. Past performance is not a reliable guide to future performance.
This short quiz (12 questions, about 4 minutes) asks how you think you'd react. There are no right or wrong answers – just answer honestly. At the end you'll see which of three investor personalities you're closest to.
Important: This tool is for general education only. It is not financial advice, a suitability assessment or a recommendation to buy or sell any investment. Your answers are not stored or sent anywhere. The value of investments can fall as well as rise, and you may get back less than you invest. Before investing, consider speaking to a financial adviser authorised by the Central Bank of Ireland – you can check a firm on the Central Bank's register at centralbank.ie. Market figures are approximate peak-to-low falls in the main US indices (S&P 500 / Nasdaq) unless stated.
