There is always light at the end of the tunnel
Strong economic and investment conditions that can give you a healthy return are commonly referred to as ‘Bull’ markets, whereas the reverse situation is often known as a ‘Bear’ market.
With the outbreak of the coronavirus, life as we know it has fundamentally changed and the Bear has reared its head once again. An almost constant cycle of media coverage of the virus and its impact on the economy can not only make 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.
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 and, although this has been brought about by an unexpected pandemic, we have been here before. Many times in fact as the below chart, issued by Vanguard Asset Managers, showing investment conditions over the last 100 years illustrates;
As you can see from the above, the number of good years and the returns over those years vastly outweighs the bad. Although things look tough right now, history tells us that the economy should recover and new industries and technologies will be born. This will provide opportunities for those investors who are currently looking at losses but are savvy enough to stick it out or those looking at making their first foray into the investment world.
Whether you ride the bull or face down the bear, we will be right there with you every step of the way, making sure your finances stay on track.