Remain Calm, it is Not That Bad

It certainly seems like the sky is falling but it is not the first time, and it will not be the last time that you have this feeling. The crypto market is in chaos, the yield curve is inverted, all major stock market indices are down for the year, but the holiday season is fast approaching. It appears that a recession is coming if you believe that history will repeat itself. Generally, following an inverted yield curve, a recession is likely to follow. However, consumer spending remains strong, and it is possible that the American consumer will spend the US economy out of a possible recession. Tough times means great investment opportunities, particularly for the long-term investor. If you are young and saving for retirement, then you should be loading up on your investments and taking Warren Buffett’s advice which is to be greedy when others are fearful. Now is the time to load up on your favorite stocks and buckle up for what might be a great ride to higher returns.

Since 1926, the S&P 500 has produced year over year returns of negative 10 percent or more only 11 times in the last 96 years ending in 2021. Not surprisingly, investing in the S&P 500 following one of these down years, produces an average return higher than the historical market average for investments held for 5 years for all observed periods of 5 years since 1950. Now is not the time to panic but a time to rejoice as investment opportunities are ready to be wrapped and gifted to investors who are willing to overcome their fears. Bear markets, corrections, and other market events are normal and will occur in the future. Fortunately for market participants, the good outweighs the bad. Historically, market returns of 10 percent or more have happened nearly 60 percent of the time since 1926. Market returns of negative 20 percent or more happened less than 7 percent of the time. Bottom line, the good outweighs the bad and historically, the market has averaged over 10 percent since 1926.

There is more reason to cheer as there are investment strategies that can provide market beating returns that are significantly higher than any market index with lower risks. Investors who are willing to investigate and seek alternative investment approaches that are unique can experience better risk adjusted and higher returns. As investors, we must all do our own independent research and due diligence, and for those that do, opportunities are available to generate higher returns. Barry Minkow, Emanuel “fruit basket” Pinez, Enron, Bernard Madoff, and now, SBF or Sam Bankman-Fried. The list of company failures and fraudsters is endless but generating higher returns is very possible without being the victim of scammers.

At Investoristics, we have an excellent product that consistently produces market beating returns based on solid fundamental investment principles. Quality, value, and financial strength are the characteristics that drive our portfolio’s success. If you or your organization are looking for an alternative approach that is straightforward and not a black box solution, then Investoristics is probably ideal for your investment needs. If you are interested in finding out more about our investment approach, please give us a call or contact us via our website.