Markets show resilience over time, despite dramatic headlines

Casey Bear |

When the world wakes up to dramatic geopolitical headlines, like today’s unprovoked invasion of Ukraine by Russia, investors can get spooked.  That fear often results in a sell-off and retreat into so-called “safe” investments like cash. The truth is major global or national events rarely change the trajectory of equity markets for a sustained period.  The chart below shows the S&P 500 Index performance from 2008 through 2021, noting various events and their relevance on long-term returns:

Current economic conditions, where sectors such as financials, energy and industrials continue to thrive in a high-growth, high-inflation environment, tell us that the fundamentals underpinning the market are still sound.  To discuss the strategic importance of adhering to your long-term financial plan, contact your Cranbrook Wealth investment professional