2008 Repeat–We don’t think So !

The capital markets have been very volatile lately, leading to much commentary of a repeat of 2008.

Here are a few items to remember:

In 2008 we had numerous large banks default; this is very doubtful at this time.

In 2008, world economic growth came to a screeching halt, with many countries, including the USA making provisions to help accelerate growth. Today, many countries are pulling funds out of the economy to slow growth.

It’s summer time and markets are thinly traded. Wild fluctuations happen often when summer events spur markets in one direction or another. With low trading, summer volume, capital markets are bouncing more than they might otherwise.

Interest rates continue to hold steady and trudge down. With rates still cooperating and not jumping dramatically, financing costs remain reasonable.

Is it scary ?

If we buy into much of the drama, which we believe, is exaggerated, sure it can be. Remember, diversified, multi asset, rebalanced portfolios have served us well in the past, and we believe will again.

Have a Good Day !

JK