Trying to make sense of it all?

Clearly the events of the last several days are unsettling. In speaking with many people over the last few days the consensus opinion is that it will take a long time to recover from this. That could be the case but history would show that would be the exception not the rule. Thanks to Steve Schwab (no relation to Chuck) at Technical Niche Trading who passed along this data from Arrow Funds.

Ending Date

1 Yr Decline

1 Yr Later

3 yrs*

5 yrs*

10 yrs*

June 1932






March 1938






May 1931






Sept. 1974






Sept. 2001






March 2003






May 1970







Sept. 2008






May 1947






April 1941






August 1988






March 1935






October 1962






July 1982












* Annualized Returns

There are many examples of double digit returns after the bottom has been reached. The multiple year columns are annualized numbers and show for the most part exceptional returns.

Emotional blow-offs in the markets result in exceptional values in great companies. Companies like Microsoft, Apple Computer, Baxter International, CVS, Comcast etc., are not going away. Every bear market is unique and this one is no different. In a previous post we also explored some of these past events. The common theme near the bottom is fear that it can only get worse because the news is so negative. Of course, eventually things do change and often very quickly. We are here for you if you do want to discuss in more depth. Another interesting viewpoint from a Morningstar analyst follows.

What’s Behind The Relentless Selling

The foregoing content reflects the opinions of White Oaks Wealth Advisors and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.

Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns.

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