Many of our clients will have been familiar with the message we have been delivering for years now that Economy and Markets are two very different things. I even wrote a piece about it here if you’d like a reminder.
Recent interest rate rises have been coupled with talk of the inevitability of a recession in the USA and more widely which will doubtless cause concern to some. Bad news sells, but should we really be worried, particularly when it comes to our investments?
In the UK, a recession is defined as two consecutive quarters of GDP decline, nothing more, nothing less. I find that coming back to this is a useful way to dampen the noise which typically accompanies commentary on this subject.
Our friends at Dimensional have been looking at the data surrounding the announcement of previous recessions and what was happening with markets here. I thought our clients and friends might find it interesting and comforting. I certainly did.
Posted by: Matthew Kiddle | Posted in: News