Goodbye and good riddance to the third quarter of 2022! Joe Calhoun of Alhambra Investments wrote a great article on October 3rd reviewing the past year and giving a little perspective on what may be the bright side of this bear market.
“It is easy to be bearish right now. Everybody knows about the bad stuff. Yes, things could still get worse from here. But investors have to think long term and once the S&P 500 drops 25% the forward returns start to look pretty darn good. Since 1961, once the market hits down 25%, the average forward one-year return is over 21%. The only negative outcome was the 2008 financial crisis when the return was -6.9%. 3,5 and 10-year returns are all positive. If your time horizon is less than a year you shouldn’t be in risk assets at all. But if you are an investor, this is when you get tested, when you have to remember that lower prices today mean higher returns tomorrow. And that tomorrow always comes.”
See the full article HERE
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