August 2023 White-Labeled Client Letter

From the August Whitelabeled Client Letter

Stocks continue to rock and roll as they recover from the depth of 2022's bear market. Is this surprising?

Not really.

According to the market research company Bespoke, there have been 27 bear markets since 1929, lasting, on average, about 9.5 months (Williams 2023). Historically, the market has recovered from each one of them. Why wouldn’t it recover from the 2022 bear market, as well?

As stocks plummeted in 2022, we were confident that if the market recovered from the past 26 bear markets, we should also expect a recovery from the current bear market.

That is precisely how it has played out.

It's worth noting that we can't accurately predict when the market will hit its bottom. However, when stocks drop by over 20%, like they did last year, there's a strong argument for staying invested or even investing more money into stocks, if your financial plan permits it.

Amazingly, ‘recover’ doesn’t do justice to the behavior of markets when we look back at the past 93 years….

Continued in this month’s client letter.

Your Cause is Righteous.

Photo by Charlie Parker on Unsplash