When the stock market falls, it’s vital to keep things in perspective and look ahead. What goes down will rise again and it could happen sooner and more rapidly than you think.
As the chart shows, in the dual between the falling bear and the rising bull, history shows the latter to be the dominant force for 103 of the last 120 years.
What’s more, the average bear period lasts just 1.3 years. That’s why, when clients approach us with an amount they’d like us to invest, we always advise them to keep what they’re likely to need for the following two years.
It’s also why we’re currently focusing our activity on rebalancing portfolios, which will help clients to pick up bargains before share prices rise again and the bull comes charging back.
As BRWM’s managing director, Richard Wood, frequently says to clients: “The best time to go shopping is in the January sales.”
We’ll be shopping on our clients’ behalf and we’re confident about the future.