After a year – really a decade – of excellent returns in the stock market, and for 2019 in the stock AND bond markets, it makes sense to ask, “WHAT IF?” As in, what if certain events take place in the markets or economy that could spoil the last several years of positive portfolio returns? Naturally then, there would be a handful of guesses or responses to the “what if” questions.
“10th Anniversary of what?” you may ask. Well, it appears you are not the only one in a state of ignorant bliss – no offense intended! I thought it may have been a bigger deal in the news, but very little has been written or reported about this 10-year milestone.
Newsflash: Things are (mostly) GOOD in the economy, businesses and peoples’ financial lives in the US these days. Don’t take my word for it. Just this week The Wall Street Journal ran an article leading with: “The job market doesn’t get much better than this.”* The title of the article was, “Inside the Hottest Job Market in Half a Century.” Wages on average in the US are rising modestly after “long-term stagnation” (their words not mine), and unemployment is the lowest in 50 years – with women experiencing some of the greatest gains in workforce participation.
BUT – it was 10 years ago this weekend on March 9, 2009 that the US stock market hit its low, with the S&P 500 index ominously touching 666, only to settle around 2750 this week. Ten years ago, the US (and global) economy was in “The Great Recession” and it was ugly. But then, yes, the S&P 500 took its time and has risen in value over four (4) times in roughly 10 years. There have been a few bumps – amidst higher interest rates – but stocks in the US and globally are materially higher which has created and grown wealth along the way. Continue reading “Happy 10th Anniversary?”