Gaining Historical Insight from Past Recessions
Looking at today’s stock, bond, real estate, and commodity markets in the context of history can be a useful exercise. A balanced view of history can provide valuable perspective that mitigates myopic fear and prevents investors from making knee-jerk trading decisions that are counterproductive for a long-term investment strategy to build wealth. Attempting to time the market bottom in a recession is a losing proposition, and understanding how capital markets have behaved through past economic recessions and recoveries enables a deliberate, thoughtful investor to construct a strategic plan to benefit from the dollar-cost-averaging opportunities offered when markets recede.
Read more on this subject here: https://www.forbes.com/sites/mikepatton/2020/04/30/what-the-past-90-years-has-taught-us-about-recessions-and-stock-behavior/#7de1ec6a2ddf
