The Market WILL Rebound

stock market crash

In the past week I’ve had a lot of people say to me, “Dave, I understand that if the stock market goes down, it will recover, in time.  But I don’t have time!  I’m in my 60’s now.  I don’t have time!”

Having an anxious personality myself, I know that feeling of dread.  So I am making it my mission to help take away some of your financial worries.  How?  By showing you that things may not be as bad as you think!

Take a look at this:

When Pearl Harbor was attacked in World War II, the market went down 7% in four days.  One year later, the market was up 15.8%

During the Cuban Missile Crisis in 1962 the markets went down 10% over a couple months.  One year later, the market was up 41%.

When Richard Nixon resigned, the market went down 13.4% in August of 1974.  One year later it was up 30.2%.

In 1987 we saw a stock market crash in October, where the S & P 500 dropped 31%.  One year later it was up 27%.

After the U.S. invaded Iraq in 2003, the market was down 2%.  One year later it was up 35%.

When the housing bubble burst in September of 2008, the market dropped 39% over the next two months. One year later it was up 49%.

What’s my point?

It doesn’t take nearly as long for markets to rebound as you may think.  If you are in your sixties, there is a good chance you will live another 20-30 years.  You DO have time.

 

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.

The value of fixed-income securities may be affected by changing interest rates and changes in credit ratings of the securities.

 Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. Indexes are unmanaged portfolios and individuals cannot invest directly in an index.  Actual results will vary.

This communication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any securities or product, and does not constitute legal or tax advice. The information contained herein has been obtained from sources believed to be reliable but we do not guarantee accuracy or completeness. Do not act or rely upon the information and advice given in this publication without seeking the services of competent and professional legal, tax, or accounting counsel.

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