This interactive chart looks at a Century of economic cycles and the US stock market performance during this period. It highlights that stock markets incorporate news (positive and negative) into the prices of stocks. However, markets are forward-looking and price in the collective expectation of investors. In nearly every instance, the recession lasted much longer than the duration of the market downturn. Indicating that by the time “recession” was identified, the worst had already been factored into the market prices. As such markets reward long-term investors and despite all the cycles and downturns the overall trajectory of the markets is a climb upward!
Download – Market Returns through a Century of Recessions
Source: https://my.dimensional.com
Niyati Khanna (CFP® Professional, CA, MBA [Finance & Strategy]) is a representative of Alman Partners Pty Ltd, Australian Financial Services Licence No: 222107.
Performance data shown represents past performance or simulated performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
Note: This material is provided for GENERAL INFORMATION ONLY. No account has been taken of the objectives, financial situation or needs of any particular person or entity. Accordingly, to the extent that this material may constitute general financial product advice, investors should, before acting on the advice, consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation and needs. This is not an offer or recommendation to buy or sell securities or other financial products, nor a solicitation for deposits or other business, whether directly or indirectly.