We are fond of graphs and infographics; this one tells the last 25 years of the stock market story well.
We’ve had some big drawdowns represented here. The dot com collapse, the financial crisis, and Covid.
Today we are living through the effects of higher interest rates and inflation, among other things. The market is down about 20% from its all time high 9 months ago after a 114% almost straight run up from the Covid lows.
Make your own conclusions, but a 20% drop after the recent moves is not surprising to most investors. We wouldn’t be surprised if we went lower. However, this doesn’t mean investing is broken or people should give up on their important goals. We knew this would happen, not when, but it literally occurs with regular frequency. The market tends to go up two-thirds of the time, meaning one-third of the time, it is moving the opposite way we would like. This is a known feature of investing, not a bug.
Please reach out if you’d like to connect. We’d love to help!
Your ISC Team
