Fifty Years, Three Epic Bear Markets: A Study in Crisis and Resilience

LT Site Icon

In this month’s client’s corner, Nick Murray discusses three bear market crises we’ve seen in the last 50 years.

The three bear market episodes under discussion here are:

Data 1

Keep these three downturns in your mind as we look at certain financial and economic measurements from the onset of the first of these crashes up to the present day.

Data 2

Yes, after half a century of serial crises, the value of the S&P 500 is up 34 times. Perhaps even more important is while inflation is up seven times in these 50 years, the cash dividend of the S&P 500 is up 20 times. Historically, equity dividends haven’t just kept pace with inflation, they’ve beaten the heck out of it.

Financial markets are resilient. They have crashed, recovered, and reached new highs time and time again. The best response a long-term, plan-driven investor can have during a crisis is no response at all—or, more accurately, to just tune out the doom and gloom of financial news and continue acting on your plan.

Talk to your financial advisor to ensure your investment strategy is structured to ride through volatile and uncertain investment periods. Especially during times of volatility, it’s best to consult a professional before making changes in terms of asset allocation, investment diversity, or risk tolerance.

There is no such thing as a risk-free investment portfolio in uncertain times, but there are ways to give you peace of mind and help you sleep well at night.

Wishing you all a joyous and peaceful holiday season. We hope you enjoyed this month’s Client’s Corner. Please do not hesitate to reach out if you have any questions or feedback.

Thinking about hiring a professional to help you implement a long-term financial strategy? We would be more than happy to set up a 30-minute discovery call to get a better understanding of your unique situation.

Get In Touch With LT Wealth

Read The Full Commentary

If you do not have access to our monthly email, you can request it here:

Your privacy is fully protected. By filling out this form to request this month’s commentary, you give explicit permission for LT Wealth Management Partners to email you to deliver our e-newsletter. It is important to note that your consent acknowledges agreeing to receive our newsletter knowing that your name and email may be stored on external servers outside of Canada. 

Share on facebook
Share on twitter
Share on linkedin
Share on email

Nine Recessions

In this month’s client’s corner, Nick Murray discusses the eight, almost nine, economic recessions that have taken place in the United States since 1970.

Read More »

Looking to build sustainable, long-term wealth?

We can help.

(604) - 416 - 2505

LTwealth@raymondjames.ca

555 Burrard St, Vancouver BC

Article Disclaimer:

Links provided to other internet sites are for the convenience of users. Raymond James Ltd. is not responsible for the availability or content of these external sites, nor does Raymond James Ltd. endorse, warrant or guarantee the products, services or information described or offered at these other sites. Users cannot assume that the external sites will abide by the same Privacy Policy which Raymond James Ltd. adheres to. Information in this article is from sources believed to be reliable, however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. The views are those of LT Wealth Management Partners and not necessarily those of Raymond James Ltd. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decision.