A couple of weeks back we learned about some important updates regarding Social Security and Medicare. I had meant to write about them at the time but, as happens every now and then, the markets turned volatile and took precedence within these posts.
While I'll address the updates below, here's a quick note from my research partners at Bespoke Investment Group. The note came out last week on the anniversary of so-called Black Monday. The important takeaway is, as the saying goes, "it's time in the market and not timing the market" that pays the most over time.
Please feel free to ask questions regarding current market volatility and the general outlook.
While Halloween is still 12 days away (remember, this note came out last week on the 19th), the scariest day of the year for many equity investors is today, as it represents the anniversary of the 1987 stock market crash 31 years ago. When you consider the fact that the S&P 500 fell 20% in a single day back in October 1987, the recent weakness seems like peanuts.
For anyone who was sitting around a trading desk at the time, we're told that it was the scariest day of their careers. That being said, look at the simple historical chart of the S&P 500 since 1928 below. You can barely see the 1987 crash.
More importantly, though, remember the number 9.9% because that is what your annualized total return would have been if you had 'bought' the S&P 500 at the end of September 1987 before the crash and held through today. While anyone making that trade in 1987 would have felt pretty stupid pretty quickly, over the long term, even buying equities at one of the worst possibly timed points in the last 50 years would have netted you an annualized return of 9.9%. Nobody knows where the market is going in the short term, but time and time again throughout history, the long-term direction has been the same.
On to my post...