Remember, the only choice is optimism, the pessimists never get it right.
On January 1, 1973. the S&P 500 through October 3, 1973 (1 month before I started in the financial services industry.) was down 48%.
From March 24, 2000, to October 9, 2002, it was down 49%.
And from October 9, 2007, to March 9. 2009 it was down an astounding 57% and closed at 676.5. Last Friday, it closed at 4391.34.
I could continue with its history, but you get the picture. Also last Friday, the September jobs report was published and for much of the mainstream financial media it was devastating. And, just like spring follows winter, the chatter followed its normal pattern. Stock markets are overpriced, the US economy is headed for the cellar and the world will end as we know it.
The attached article is a summary of the report and some various comments from people of prominence.
Here’s some food for thought. The average long term compounded rate of return for the S&P 500 is around 10%. The compounded rate of return for debt (loaning money to companies and governments in the forms of bonds,) is around 6%. The average annual inflation rate is around 3%, meaning that the real return annually for the S&P 500 is 7% and for bonds 3%. That’s a pretty steep price to pay in an attempt to mitigate the temporary drops in value of a long term investing strategy.
Jean’s and my first trip to WNC was in the fall and, as you know, that is a beautiful time of the year. I hope you enjoy this season as much as we do.
Always, should you have any questions or wish to meet with or talk with me, please don’t hesitate to email, or call.
PS: This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.