Scary

September 19, 2018 - Published by IAG Wealth Partners

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Now that the kids are back to school, the Halloween decorations are out in force. It is truly the scariest time of the year.

Ten years ago it was even scarier. After reaching a record high on October 9, 2007, stock market traders became increasingly scared of a recession as bad news kept piling up through 2008.

Ten years ago today on September 18, 2008, the S&P 500 Index was already in bear market territory – more than 20% below its October 9, 2007 record high.

A mere three weeks later on October 10, 2008, it had dropped another 25% in only 15 trading days — a second degree bear market, if you will.

By March 9, 2009, the S&P 500 Index had dropped another 25% — a third degree bear market that burned many traders.

Those were VERY scary times for our clients. Our advisors worked with our clients to help them make logical decisions in what appeared to be very illogical times.

Here we are 10 years later with a different kind of scary. In hindsight, we now know that the Great Recession’s triple bear market breathed its last breath on March 9, 2009. On March 10, 2008, a baby bull market was born, and it has grown to be a monster.

Eventually this bull will breathe its last breath and a baby bear market will be born. If history is any guide, the bull’s death will go largely unnoticed at the time. Headlines will likely be positive, greed will be in the air, and only the most persistent bear enthusiasts can imagine that the bull is in ill health.

When that scary time comes, we will be here for you. Not with a death notice or a birth announcement, but with consistent disciplined long-term advice to help you continue to focus on your path toward your family’s goals.

 

Quote of the week:

 

Carl Richards: “We spend a lot of time designing a rational, long-term investing plan. We do this presumably when we are thinking clearly about our goals and incorporating all the historical evidence about risk and reward. Then, when things get crazy, we scrap that rational plan and tell ourselves there is another way. We make a change that in hindsight turns out to be a bad idea. Then we repeat that process every few years. It would be comical if it weren’t so painful. Avoiding this kind of dysfunctional behavior is the crux of investing. The biggest risk investors face is getting scared out of their plans at exactly the wrong time.”


Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through IAG Wealth Partners, LLC, (IAG) a registered investment advisor and separate entity from LPL Financial.

The S&P 500 is an unmanaged index of 500 U.S. large cap stocks. One cannot invest directly in an index.

Past performance is no guarantee of future performance. In fact, the opposite can be true. The information contained in this report does not purport to be a complete description of the securities, markets, or development referred to in this material.

Any opinions are those of IAG and not necessarily those of LPL Financial. Expressions of opinion are as of this date and are subject to change without notice. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein.

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