In reference to the old adage, “the calm before the storm” – the stock markets tend to have good storms right after the bad storms. By this I mean that equity markets have a tendency to rebound fairly strongly after adverse market conditions.
Unfortunately, many investors bail out of their investment portfolio strategies during the bad storms and forego the market appreciation while watching from the sidelines. Of course, it can be very difficult watching your portfolio see-sawing back and forth so I thought I would ask Russell Investments for permission to post a fantastic chart they have that might help you “batten down the hatches” and focus on the long term…
(Note – you can click on the picture for a larger version. For email subscribers, please click here to view the photo if it does not appear.)
Many thanks to Russell Investments Canada Limited for permission to post this.