The Northern Star 1/2/19 Turbulence Continues
Message from Jon
Merry Christmas & Happy Holidays to each of you! I hope that you had time with your loved ones.
We will be closed for New Years on the 31st and 1st.
The markets on the other hand extended their sell off into Christmas Eve down more than 600 points. According to Kate Rooney at CNBC, we are officially in a bear market for the S&P 500 which should not be much of a shocker to anyone of you by now when reading any of my recent newsletters. 1
We have been moving money to higher ground since October and grateful we did so.
Here are some notes for when the concerns, headlines, stress and hyperventilation starts to creep in.
- 2008-2009 was a S&P 500 decline of approximately 54% 2
It recovered in 4 yrs! 3
- Worst decline since the great depression and the recovery was less than the terms of a car loan!
- If you decline 10% then it requires a 12.3% gain to get back to break even
- We have made those gains from Jan to Oct. of 2017 (9 months) 4
- If you decline 20% then it requires a 25.2% gain to get back to break even
- We have made those gains from Dec 2016 to Jan 2018 (13 months) 5
I say this to remind you to remain calm. The headlines will get worse before they get better, remain calm. Accounts will drop but they will also recover, stay calm. This period will pass and all will return to normal in the kingdom. Don't let your emotions get the best of you because you may end up making decisions that you later come to regret.
Till we speak again, have a Safe and Enjoyable New Years!
WEEKLY UPDATE - DECEMBER 24, 2018