Hold On, This, Too, Shall Pass

You will soon receive a year-end report showing the value of your accounts on December 31, 2015.

2016 has started with mostly down days in the markets.  “The worst start to trading in years” we hear.  It is a good reminder that “INVESTING IS A MARATHON NOT A SPRINT!”

Whether this turmoil will pass or turn into a full-fledged Bear Market we have no idea; we only know, having lived through many market downturns, that few are unhappy with investments they made in good quality issues during down markets, while holding on to what they currently own.  The wisdom of doing so becomes very clear when the markets turn upward, as they always have.

Living through downturns in markets builds strength – “What doesn’t kill you makes you stronger.”  We know of no-one who has regularly earned their retirement security by only investing in Bull Markets.  A lovely thought, but not practical.  One has to “bear” the Bear Markets.

We are not predicting anything about the market except continuing to purchase high quality issues during Bear or Flat Markets leads to success…in time.  As does holding on and living through the Bear Market.  Once over, it is surprising how fast it is forgotten.

I can’t contribute the quote but I heard “This is a market prone to react to bad news.”  I also heard BMO Investment Chief Brian Belski say “We believe stocks are in a breather of a 20 year Bull Market.”  Remember the twenty years following the very difficult 1970s?  When inflation was horrendous and interest rates were in the stratosphere?  The ‘80s and ‘90s, although not straight up, seem like a 20 year Bull Market now.

Do call for a discussion of your accounts at any time.  And hold on!!


Louise Googins