~ TEN YEARS LATER ~
Forgive me for the drama – but as an financial advisor, I recallSept, 2008 very clearly and during that time and the following year we were in a period few investors and advisors ever experience. It was, in a single word, terrifying. Now, 10 years later, it’s additional proof. Proof markets recover, proof that faith in the market is appropriate.
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Ben Carlson is one of my favourite bloggers – his wealth of common sense articles offer a sensible perspective on the economy, equity markets and investing. The article linked below describes his review of the market and the economy since the Great Financial Collapse (GFC) of 2008, the last recession North America experienced.
Key messages: – the stock market is not the economy, the economy is significantly lower in volatility compared to the stock market, seven years after the GFC we are under 5% unemployment, equity markets are at all-time highs, economy is growing (slowly) and oil is below $50US/barrel.
Link to article
Here is the difficult truth – if you are going to survive as an equity investor you need to accept that your portfolio will be in a decline state about 50% of the time! But that’s okay because the declines are temporary and the recoveries inevitable.
180 Years of Market Drawdowns