road with a green tree tunnel

There is always light at the end of the tunnel

Bull and bear markets are nothing new. Strong economic and investment conditions that can give you a healthy return are commonly referred to as ‘Bull’ markets. The reverse situation is often known as a ‘Bear’ market.

With the outbreak of the coronavirus, life as we know it has fundamentally changed. For 2022, we are still in a bear market following lots of uncertainty. COVID-19…wars… Brexit… many unknowns are hanging over us. An almost constant cycle of media coverage of the virus and its impact on the economy makes it seem as though we are all facing financial catastrophe. But, the sheer weight of ongoing press can make it appear as though there is no way out. For those who hold investments, and for those who are looking to beat the meagre rates of interest available to them via the high street banks, it can look as if there is nowhere to turn.

Have hope

It is crucial at this point to keep calm and have hope. This is not the first time the world’s economy has been severely stricken, nor will it be the last. Economies and investment conditions endure cycles of boom and bust naturally. Although this has been brought about by the COVID-19 pandemic, we have been here before. Many times in fact. The below chart, issued by Vanguard Asset Managers, shows investment conditions over the last 100 years:

Vanguard Bear and Bull Markets Over Time Chart

As you can see from the above, the number of good years and their returns vastly outweighs the bad. Although things look tough right now, history tells us that the economy should recover. New industries and technologies will be born. This will provide opportunities for those investors who are currently looking at losses. They’ll also be great for those looking at make more from their money with their first foray into the investment world.

Whether you ride the bull or face down the bear in the market for 2022 and beyond, we’ll be right there with you. Our team will help make sure your finances stay on track. Just get in touch.

Categories: Updates