As hard as this is to believe, the COVID-19 pandemic started three years ago. Today, Ed Lambert and Alex Cabot look back at the economy and capital markets over that period. Interestingly, both are close to where they'd have likely been without a global pandemic.
First, Ed looks at the economic data, from Factset, comparing GDP, inflation, unemployment, and the ten-year treasury bond rate. And despite the stock market having its worst 23 day period ever in 2020, and $5 trillion in stimulus being pumped into the US economy, the unemployment and GDP are close to where they were three years ago. Yes, inflation and interest rates have changed, but if you told us back in 2020 where we'd be in early 2023, we'd likely have taken it.
Alex looks at the markets next, checking the annualized total returns over the last three years. Thanks to data from FactSet, he looks at Large, Mid, and Small Cap US stocks, Developed International, Emerging Markets, and REITS. What's most remarkable about these numbers? Well, it's how unremarkable they are. And this takes into consideration the tumult of early 2020, and the market drop of 2022.
As Alex says, we're on a roller coaster. But they key is not giving into human nature and seeing how high we can go, but rather growing our assets over time.
Financial education and literacy are very important to the team at Birch Run Financial. Alex and Ed are always happy to have a conversation with you, whether you're a client or not.
You can always email Alex and Ed at info@birchrunfinancial.com or give them a call at 484-395-2190.
Or visit them on the web at https://www.birchrunfinancial.com/
Alex and Ed's Book: Mastering The Money Mind: https://www.amazon.com/Mastering-Money-Mind-Thinking-Personal/dp/1544530536