Quote Of The Week: What The Summer Swoon Means For You

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Market ups and downs can make you queasy, but summer swoons like this are not out of the ordinary.

“August was awful for U.S. stocks.

Here’s the good news.

First, it probably means a lot less than the scary headlines would suggest. Wall Street has suffered a “summer swoon” most years since the days of robber barons and mutton chop whiskers.

The past is no guarantee of the future, but nonetheless if you had invested your entire life savings in a global stock market portfolio just before Lehman Brothers collapsed in September 2008, left it there and gone to live on a desert island, today you’d be up 80%. (You were actually already back in profit by the end of 2009.)

A market sell-off is an opportunity. It’s a sale. Stocks are cheaper than they were. That’s good news for anyone who needs to invest.  … Unless you are already astonishingly rich, you need to invest your money somewhere — and over time a global equity portfolio is still almost certain to beat cash or bonds.”

Brett Arends, “What the summer swoon on Wall Street really means for your money,” September 1, 2015, MarketWatch

About Mari Adam

Mari Adam, Certified Financial Planner™ has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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