Due to the availability of the operating room at the hospital used by my doctor, I had some minor surgery I needed to have done Friday morning, August 2nd. The word “minor” depends on which end of the surgery you are. Be that as it may, over the weekend, I had a very hard time finding an appropriate topic and supporting article that was pertinent to what was going on economically.
As we all know, over that same weekend, China decided to revalue its currency and Monday, world markets reacted negatively to the tune of about 3%. I also received an email from one of the sources I use reminding me that it was 8 years ago when the Standard & Poor’s downgraded the credit rating of the United States from AAA to AA+ sending the S&P 500 down 6.6%. Since from that end of the world until Monday morning, the compound rate of return of the S&P 500 has been about 14.5%.
I’m not a big fan of Motley Fool but the attached article does help put this into perspective. It was very hard to find any news that did the same. So, I don’t know what’s going to happen after this “End of the World” but equities have, over the long haul, provided long-term returns that have outpaced inflation and help protect our purchasing power by a wide margin.
As always, should you have any questions or wish to meet with me, please just email or call the office. In the meantime, have a super week.