Markets Rise Again

Markets fall. Markets rise. It’s part of the rhythm of investing.

From 1929 to 1932, during the Great Depression, US shares lost almost 90 percent of their value. In the 1970s, the oil crisis and inflation triggered a fall of about 48 percent. Black Monday in 1987 brought a sudden 22 percent one-day drop, and by the end of that period markets were down roughly one-third. The Global Financial Crisis of 2007 to 2009 saw a 56 percent decline, and in 2020 the COVID-19 shock sent the S&P 500 down about 34 percent in just five weeks.

Each time it felt like the end. Yet each time, recovery followed.

“Volatility is the price we pay for progress. The reward goes to those who stay the course.”

Since 1926, the US sharemarket has averaged around 10.3 percent growth per year, including every crash, rebound, and calm stretch in between. Over the long run, progress and innovation have always won out.

Volatility is the price we pay for progress. The reward goes to those who stay the course.

Trying to time the market rarely works. Even missing a few of the best days can make a big difference, and those best days often arrive just after the worst. That is why having a plan matters. One that keeps you invested, diversified, and focused on your long-term goals rather than the noise of the moment.

Patience beats panic. Perspective beats prediction. And history continues to show that time in the market wins.

If the headlines have made you nervous, talk to Mark at Hallam Jones about keeping your investment plan on track.

Mark Jones

Director
Principal Adviser

Simply give Mark Jones a call on 0800 404 202 or send him a message.

This content has been provided for information purposes only and is not intended as a substitute for specific professional advice on investments, financial planning or any other matter. Read our disclaimer notice and privacy statement.

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