We have all heard the saying, "Times Change." When it comes to the stock market, it's always one of those times. Over the past 20-plus years, we have seen the tech bubble burst, a terrorist attack that sent markets tumbling, a global credit crisis that caused a world recession, a pandemic that caused everything from local to international commerce to come to a standstill and just months ago the worst bond market in history.
But you know what? Markets have a long history of rebounding. Stock markets are considered a "leading economic indicator." They project the fruits of economic activity. That activity is our perceived value found in exchanging goods and services priced by HUMAN BEHAVIOR.
So, at a very fundamental level, markets have not changed. But in the last 20-plus years, we have also witnessed government stimulus on a global scale never seen before, access to markets by more participants than ever, and international economies inextricably linked to one another like never before.
Fundamentally, the financial markets have not changed. They continue to act as a daily pricing mechanism for thousands of entities. But the world, the environment in which they exist, have changed. It has evolved. Has your investment strategy evolved?
Let us know if you'd like to review it!
Sincerely,
Brian Pittell
BPG Planning