GET READY FOR RECOVERY
If history is any guide, both the economy and the markets will eventually recover – despite all the negative headlines. As an investor, it’s important to be properly positioned for the recovery well in advance. No one can say exactly when we’ll see a recovery. What looks like the beginning of a new long-term bull market today could turn out to be a short-lived “bear market rally” months from now – or vice versa. The key thing for investors to know is that the markets have always recovered strongly, even after a major economic crisis that, at the time, had many people doubting they ever would. There have been other downturns as severe as the current one – The Oil Crisis (197375), The Early ’80s Recession (1980-82), Black Monday (1987) and the Technology Bubble (2000-2001), to name a few. Each time, after suffering a major setback, the markets recovered and continued their long-term upward advance, typically making up losses within two years. History lessons: The market always comes back
One-year returns from end 32.0% 51.8% 18.8% 22.2% The Oil Crisis The Early ’80s Recession Black Monday
The Technology Bubble
Decline -48.2% -27.1% -33.5%
S&P 500 Index Bear Markets (RBC Asset Management) This article is supplied by Angelo D’Amico, Vice President, a Portfolio Manager with RBC Dominion Securities Inc. Member CIPF. This article is for information purposes only. Please consult with a professional advisor before taking any action based on information in this article. Angelo D’Amico can be reached at 514-878-5196.
Two-year returns from end 65.6% 50.2% 37.7%