First three disclaimers: I am NOT an economist, I am NOT saying we are in a recession, and I am NOT providing any investment guidance via what I am about to share.
In all likelihood, the impact of coronavirus is such that we will see the economy slip into a recession. Some—make that many—have used this anticipated economic event as a rationale to exit the stock market. They are hypothesizing that “the sky is falling.”
And yet the data does not support this “the sky is falling” mindset. Rather, during the past century’s 15 recessions, 11 of the 15 instances have been such that the returns on equities were POSITIVE (see figure).
In particular, the annualized market return for the two years following a recession’s start average 7.8%
As always, I strongly recommend that prior to investing, any and all individuals develop and deploy an “Investment Policy Strategy” to guide their actions.
You can see more information on this topic at this article.
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