This information is for guidance purposes and may become out of date at any given time. It is not investment advice. Investments can rise and fall in value. We won’t make any assessment of whether the investments you chose are appropriate or suitable for you. If you are unsure of the suitability of any investment, investment service or strategy, you should seek independent financial advice. Past performance does not indicate future results. Capital is at risk. Recessions are a natural part of the economic cycle, and well-informed investment decisions can lead to opportunities for long-term growth and financial security. can negatively impact long-term financial goals. Selling assets for less than their purchase price can hold back your progress toward those goals. Because of this, investors with long-term horizons often choose to stay invested and wait for stock prices to recover after a downturn. While no one can predict the future or market direction with certainty, historical data shows that over the long term, stock markets tend to trend upwards with short-term periods of volatility. Investing additional funds when markets are down may allow you to acquire assets below their true market value, potentially enhancing gains when the market recovers. As Hartford Funds research found, missing the top 10 market days over the past 30 years would cut returns in half, and missing the top 30 days would reduce returns by 83%. These numbers serve as a reminder that market timing is challenging and trying to avoid volatility can have negative effects. When the markets bounce back? Uncertainty can be stressful, but that’s an inevitable part of investing. Sooner or later, uncertainty in the markets will happen for every investor. It’s important to keep in mind, that according to Ned Davis Research, as of July 2023, the S&P 500 has experienced 27 bear markets (a period of prolonged drop when assets are expected to fall in price) since 1928, along with 27 bull markets (when asset prices are expected to rise). These bear markets have an average duration of approximately 292 days or 9.7 months. While the uncertainty can be difficult, it can also bring opportunities and enhance your portfolio. Navigating through times of recession requires a well-thought-out strategy and a long-term perspective. Recessions are a natural part of the economic cycle, and well-informed investment decisions can lead to opportunities for long-term growth and financial security. Finance Monthly. Investment 63
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