As we present you with the third quarter market review we’d like to draw your attention to two items in this report:
- As always, The Impact of Diversification slide gives us a long term perspective which is all the more important to see during a downturn in the market.
- We also included an article at the end of the report which speaks to the power of human ingenuity. This is what ultimately moves the stock market forward, and it is what gives us great confidence that it will continue to do so in the future.
Additionally, we’d like you to think back to a date in history a little over a decade ago. Perhaps you can remember where you were and what was going on in your life on March 9, 2009. As you may recall, the stock market had just hit new lows after a dismal year in 2008 due to the real estate and financial collapse. Little did we all know that gloomy Monday in early March was the first day of one of the longest bull markets in US history!
The important lesson here is that when a bear market turns, we typically don’t realize it for quite some time and it usually happens when the economic news is still dire. Missing out on these early days and months of a new bull market can be one of the most detrimental mistakes an investor can make. This is one of the many reasons we encourage you to stay invested through thick and thin.