Panic At The Open

Just a quick post to reiterate a point about market volatility that we've made many times before.

There is obviously no way to know whether the decline we've seen in the S&P 500 and other broad benchmarks in the previous few days and following through today is the start of a big one or if it will be one of the many declines that most people forget about shortly thereafter.

What we do know though, is that no matter what sort of event it turns out to be, it will at some point end, that markets will then start to work their way higher, eventually making a new high. The only variable is how long that all takes. 

This was the case in;

• 2022
• the Pandemic Crash of 2020
• the mini-crash at the end of 2018 if you even remember that one
• the Financial Crisis in 2008/2009
• the Internet Bubble
• the blow up of Long Term Capital Management in 1998
• Asian Contagion in 1997
• the default in Orange County, CA in 1994
• Kuwait getting invaded in 1990
• the failure of the leveraged buyout of United Airlines in 1989
• the 1987 crash and any other future market events.

I have no idea where this ends but selling into broad market panic has always been a very bad idea.

The information, analysis and opinions expressed herein reflect our judgment and opinions as of the date of writing and are subject to change at any time without notice. They are not intended to constitute legal, tax, securities or investment advice or a recommended course of action in any given situation.