HomeCanadian InvestmentWhat do we all know? – The Common Joe

What do we all know? – The Common Joe


For these with photos turned off: “Inform me… If we don’t know after we’re OUT of a pandemic…or after we are IN a recession. What do we all know?”

We’re no economists or well being specialists, however listed below are some issues we do find out about markets:

1/ Bear markets are unavoidable. Over a 50-year interval, anticipate 14 bear markets — roughly one each 3.6 years.

2/ What comes after a bear market? A bull market. Shares fall 36% on common throughout bear markets — and achieve 114% on common throughout bull markets.

3/ Bear markets are shorter than bull markets — that are 3.4x longer on common.

However nobody can inform when markets will get well. Right here’s some detective work from #fintwit:

And, after all, the numbers talked about above are the common, and never all shares will make it again to new highs. Some firms will go bankrupt, and others will proceed to wrestle as unhealthy enterprise fashions are uncovered.

However we will belief the S&P 500 to get well. If it doesn’t, we in all probability have a a lot larger downside on our arms. In the long term, does it matter whether or not we’re in a recession or not, or if the pandemic is over?



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