There’s an old saying, “May you live in interesting times,” and we sure have.
Sometimes “interesting” means inspiring and wonderful, but other times, it can be downright scary. Even scarier is when those interesting times result in a wild market. Unexpected events can lead to uncertainty, and uncertainty can negatively impact stock prices. But no one has a crystal ball, and uncertainty is just a part of a rich, multi-faceted life.
The good news is that no matter how challenging the crisis, over time the markets have proven to be very resilient. This flyer from Putnam Investments, Markets Recover from Crises, highlights how major historic events of the last 75+ years have affected the market…and more importantly, how the market eventually recovered, in every case.
During times of volatility, financial professionals can sound like a broken record: “Hang in there.” “Stay the course.” “Think long-term.” But we look to history for a model because it’s a way to gauge performance, and it’s one of the strongest indicators we have to plan for the future. Financial professionals spend their career studying this type of data and market history so you don’t have to. If you want to check in at any time, let’s connect.
Resilient Markets Bounce Back
September 25, 2020