A Calm Reflection On The Markets

Many of you may prefer to tune out the financial news, and you may not need much reassurance when we experience bear markets.  But the biggest worry that we have is that a client is worried; if that is the case with you please don’t hesitate to call to go over your investment plan.

The most common question we get during times like these is: “your phone must be ringing off the hook.”  The truth is, that it is not.  That doesn’t mean that we’re less busy in times like these.  But we do think the quiet is a testament to not only the planning we’ve done and (hopefully) the perspective we’ve provided you, but also that you’ve placed your trust in us.  So thank you for that trust—we don’t take it lightly—and we really mean that we are here for you if you want to call or set up an appointment.

So, another long bull market has come to an end (for now).  This happens when a market declines by 20% from its recent high watermark.  And, while we tend to focus on the negative aspect (the -20% or more), which we completely understand, we recently came upon the following picture that shows in detail the length and scale of ALL the previous bull markets (and bear markets).  What is very evident, is that over time the blue/positive/upturn/bull markets dominate the red/negative/downturn/bear markets.

You can click on the following link to see a larger version of this image: Market Declines and Volatility



This, of course, doesn’t mean that downturns are any less difficult when we’re experiencing them.  But sometimes visual evidence can help a long-term investor (like you) remember why we invest in the first place.  The positive growth outlasts the negative (every time so far) and the net outcome is expected growth.  We don’t know when the next upturn will begin.  But staying invested means that we’ll be there when it does.



Past performance is no guarantee of future results. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio.


Waypoint Wealth Management

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Waypoint Wealth Management