Wall Of Worry

The wall of worry is what befalls the stock (and other financial) markets when the world is up against something big and bad. When consumers lose confidence because of political and/or economic issues, the wall of worry can crop up.

So far, the stock market continues to rise in the long-run, successfully climbing the wall of worry like Sir Edmund Hillary on Mount Everest. No wall of worry can keep the money wheels from churning again.

A wall of worry can come at different points, resulting in different after-wall effects. For instance, if a wall of worry crops up on an economic downturn, things will keep going down for awhile (as it does) before turning around to surmount the wall. However, if the wall of worry pops up during an economic peak—when everything’s going great—it’s much more likely markets will tumble downward for a while before any recovery happens.

The wall of worry has always been something markets have been able to bear. It’s not about not-falling off the horse, it’s about knowing how to get back on it, right? So don’t worry, your retirement savings are just fine (for now).