In light of the recent market pullback we have provided the following charts to provide perspective of the longer term which paints a much different picture:
- The first chart below shows the return of the US Market since the GFC (2009) highlighting the pullback in valuations of greater than 7%. Whilst short term volatility can seem significant, the longer term picture shows a different story:
- The second chart shows the comparative performance of the S&P / ASX 200 industrials, S&P / ASX 200 resources sector and overall S&P / ASX 200 index since the GFC (2009). Industrials have performed well notwithstanding recent volatility while the resources sector has significantly underperformed:
If you wish to review your strategy to make sure it is consistent with your objectives please make contact with us.