6 Years Later...
3
min. read
As we head into February we want to revisit that scary time 6 years ago, almost to the day, when we had the onset of the global pandemic as well as check in with a few small updates.
As we head into February, it’s not lost on us (or probably most of you), that six years ago on February 19th, we were hit with one of the most “this time it’s different” tests of our lives. COVID unleashed a vicious health and economic crisis that comes along once every 100 years. The entire global economy shut down, and the US equity market tanked 34% in 33 calendar days. The fastest decline since October 1929. Not to mention the fear and uncertainty that affected every other aspect of life.
What did we do at Gg? What did we advise?
On the worst single day of it all, when things were at their literal bleakest, we wrote this: Moment of Truth
I strongly encourage you to take a few minutes to re-read it.
Re-live it, if only for a moment.
I can remember the feeling in my fingers as I typed the words looking at a screen of blood red markets, ultimately ending that day down 12%.
What happened next was a combination of Congress and the Fed unleashing a barrage of fiscal and monetary stimulus, along with a host of other factors that turned the economy around, reversing the entire decline, with an absolutely explosive rally and the markets breaking to new all-time highs just six months later.
As of this writing, the S&P 500 sits right around 6,900. More than doubling the February 19th peak. Despite several market dips, including a brutal 10-month 25% decline, the Index has compounded at *gasp* 15% annually in the six years since.
Looks like it wasn’t different that time either.
We are proud to say we took every single client through that torrid time without making the big mistake and allowing a temporary event ruin their financial lives.
A new crisis will always be just around the corner. It will take a different form from the last one. Whether it be a global pandemic, Dot Com Crash, AI bust, debt crisis, tariff tantrum, dollar fears, another global pandemic… or something entirely different.
Make no mistake, there will be another and another.
Gg's advice will remain steadfast and true.
This too shall pass.
And that crisis, like all others before it… will be temporary.
Patience. Discipline. Faith in the Future.
The reason? It works.
The antidote to all of these crisis is meeting with us at least annually so we can plan and prepare for these temporary declines and understand they are simply a part of life and investing.
We’re always interested in what is most pressing for you. If you have a question or 2 that you would like our specific feedback on send it our way. It can be about any topic on your mind: investing, estate planning, insurance, retirement, taxes, etc.
We’re happy to provide our thoughts. We’ll gather the questions and summarize for our March newsletter, or just respond to you directly, whichever you prefer.
So shoot us what’s on your mind.
We’re here to help.
