One of the few things that investors can absolutely count on is that there will be a next recession. Currently, recession talk has completely taken over the discussion on Wall Street and CNBC. Economists and other prognosticators seem to be constantly competing with each other to be the first to predict the next downturn in the economy and the stock market.
While another recession is a virtual certainty, the timing is far more difficult.
Long term investors should chill. Yes, markets are very likely to decline, perhaps sharply, sometime in the future, but throughout the history of the stock market, there has always been an eventual recovery and a march to new highs.
Trying to capitalize on market fluctuations has proven to be very difficult and no one has been able to effectively sustain a market timing strategy over the long haul.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA