Ten Years Later – What we learned from the Great Recession of 2008
Ten years ago the U.S. economy and the world economy were in the midst of the greatest economic downturn since the Great Depression. Economists refer to this time period between November 2007 and March 2009 as the “Great Recession”. Many of you probably had investments in the stock and bond market and saw your portfolios decline significantly. Those of you who did not have investments have probably heard people talk about the 2008 market crash.
No one wants to relive the pain of 2008. However, it is worth noting the lessons that we learned and re-learned from this time period when it comes to investing your hard-earned dollars either for retirement, education or other goals.
First of all, short-term volatility and market downturns do not negate positive long-term investment results. Investors who didn’t panic and stayed the course through this time period and continued to follow a dollar-cost average investment strategy through the down markets were made whole within a couple of years. Investors who panicked and pulled their investments out of the market ended up missing all or part of the tremendous bull market that followed in the next few years.
An additional takeaway from 2008 is that investors who remained focused on investment fundamentals such as their long-term goals and prudent asset allocation suffered less damage to their nest egg. In both up and down markets and economic cycles, it is critical to balance and re-balance your investments to coincide with your goals, time horizon and risk tolerance. Proper allocation of your assets is vital to making sure you have the ability to weather economic and stock market declines.
Many investors are still making investment decisions with the 2008 Great Recession in mind. Don’t let short-term market volatility keep you from achieving your long-term goals.
Community Financial Services Group manages $600 million for hundreds of individuals, families and non-profit organizations. CFSG can help you determine and attain your long-term investing goals. If you are interested in meeting with a CFSG representative for unbiased investment & financial planning advice, please call 877-334-1677. Our Trust Officers can meet with you at any Community National Bank office, or other convenient location.
Community Financial Services Group, LLC (CFSG) is the Trust and Investment management affiliate of Community National Bank. CFSG accounts are
• Not deposits or other obligations of the bank
• Not guaranteed by the bank
• Not insured by the FDIC; and
• The investments are subject to risk, including the possible gain or loss of principal.