Local Life - Wigan - August 2020

Downturn is followed by recovery
And rise again they inevitably do, because
economies and the markets influenced by them
are cyclical. They move through expansion, peak,
recession and trough and then back round again
on an ongoing basis. It’s more a question of how
long a recovery will take to come after a downturn,
and what that recovery will look like, than whether
recovery will come at all. The US National Bureau
of Economic Research (NBER) found there were 33
cycles between December 1854 and the summer
of 2009 . That period included events like the great
depression, two world wars and the bursting of
the dot com bubble in 2001. After the financial
crash of 2008 we saw over a decade of recovery
and expansion before the Coronavirus pandemic
moved the cycle to recession once again.
Understanding the cyclical nature of markets can
help you to screen out the short-term noise when
a downturn comes. It’s also the reason why some
investors with long time horizons may see recession
and downturn as a buying opportunity rather than
something to fear.
Our service
For those who prefer to visit our offices in Standish,
please be assured that we follow strict Government
guidelines on social distancing. We also continue
to offer a telephone and video-based service if you
would prefer to deal with us remotely.
David Barton APFS Cert CII (MP)
Chief Executive Officer
Remember all investments can fall as well as rise in value so investors could get back less than they invest.
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