Rob Coyte's Blog
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- Pardon? 15-May-2012
- Bank practices during the GFC 12-Apr-2012
- Current State of Dividends for Shares 19-Mar-2012
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Need to Remain Patient
From an investment returns perspective it seems the GFC is still here. People are asking when asset values will recover.
As with everything the longer things go the more people question will it ever change? The answer to that is only if it is different this time and never is.
The graphs Missing the Best Trading Days and Rolling Returns Since 1980 demonstrate that we need to stay the course and commit to our longer term strategy. The fact that so much has gone against us in the last few years is reason for the attitude that it change sooner or later. In a drought every dry day is said to be a day closer to rain.
In short we cannot afford to be out of the market for the days that it does go up. For example last week the S&P 500 increased 5.6% its largest weekly gain in 2 years.
Also, importantly when we look at rolling returns over longer periods of time the returns become more palatable. Obviously 3-5 years during the period such as the GFC will not look spectacular but the question is what does the next 5 years have install?
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