Predictably Unpredictable

I hope that everyone is enjoying the summer.

If there is one constant with investing it is that there is always something to worry about. More specifically, there are always concerning headlines, economic challenges, and fears about the future. This is exacerbated by the financial media. Whether times are good or bad, the media seems to only portray things negatively. Despite all of this, equity markets have performed very well, and patient investors have been rewarded accordingly.

Now to segue to the real topic of this essay: Market Declines

Market declines are normal and frequent. While we know they will occur, they are entirely unpredictable regarding their timing, depth, and duration. With history as our guide however, all market declines over the last century have one predictable trait… they have all been temporary. As such, the most reliable way to capture the long-term return of equities is to ride out their frequent, but ultimately temporary declines.

When things are going well, we are all susceptible to lose sight of this. Hopefully, this refresher will help fortify your resilience when the road gets rough. As always, we will be here to help guide you pragmatically and even opportunistically down the right path.