After taking a holiday form blogging in the summer, I want to start up again with this 3rd quarter commentary from Geoff MacDonald, a portfolio Manager from Edgepoint Wealth Management. I know what you are thinking – “A 3rd quarter commentary? That’s as interesting as watching grass grow.” Usually, you would be correct. However, this article challenges our perceptions and asks if what we hold to be true is actually true. Are our preconceived ideas supported by facts? The easy path is to take what we are told at face value. Let’s face it, it takes time & effort to verify the facts. The effort, however, is probably worth it. If we look at the recent stock market results and the headlines surrounding them, the news sounds pretty bad. Maybe you want to withdraw your investments and save the money under your mattress? What if you knew, as Geoff points out, that the average yearly drawdown on the S&P 500 is 13.8%? With that perspective, the recent market volatility does not seem all that bad because you would know that the markets still grow with an average downturn of 13%.
A little perspective can be illuminating.
I hope you take the time to read the commentary. I know I am going to look for a copy of Factfulness.