Over the last several years capital markets have been unusually friendly. They have dropped double digits briefly only a couple of times, and with an emphasis on “Briefly”
We have been spoiled !
Since the beginning of the year, markets are returning to more normal moves (even more jumpy than normal in some cases) or should we say moods ! 2007-2009, 1999-2002 still ring clearly in our ears (and eyes) and is for sure in part why we are more conservative.
Capital Markets don’t go down forever, but is sure seems like it, as it slows down when they do (the pain is greater than the pleasure.) Of course we do not enjoy it either…
With never going “all in” or “all out” we are very happy with our allocations and will take advantage of the opportunities as they present themselves.
How long will this last ?
The average bear markets lasts about 18 months, but for various internal reasons, we think this may not be a BEAR, but just a long awaited, take the froth out correction! No matter, we like our allocations !
In five years, we doubt this movement will displace the afore mentioned historical dramatic times.
Just a return to more normal movements !
To all of our friends in front of the storm coming this weekend, we wish you a safe time …summers we get tornadoes, winters you get storms … exchanging well wishes here !
Have a Great Weekend!
John A. Kvale CFA, CFP
8222 Douglas Ave # 590
Dallas, TX 75225