What do you do?
Financial Crisis 2008
Although the definitive cause of the 2008 financial crisis is the subject of some debate, a series of complex and interconnected events unfolded over the course of 2007-2008, resulting in the collapse of several companies. The events threatened the foundations of the global financial system and plunged the world into an economic downturn that’s now commonly referred to as the “Great Recession”. There was no shortage of gloomy headlines in 2008, as investors feared the worst and markets responded in real time to the news.
Your decision was made as the stock market approached a bottom during the financial crisis – a point of the market cycle that is often dominated by fear, but also a moment of significant opportunity.
Brexit 2016
Uncertainty was the dominant theme of 2016, as the United Kingdom held a referendum to exit the European Union (known as “Brexit”) and Donald Trump became president elect of the United States of America. Amidst this backdrop of political upheaval, investors were still digesting news that China’s economic growth had slowed to its lowest level in 25 years. The slowdown sparked fears of a global recession, wreaking havoc on equity markets as investors feared the end of a strong bull market. West Texas Intermediate crude oil also spiked in 2016 after hitting multi-year lows early in the year, adding another element of uncertainty that fueled market volatility.
Your decision was made in the midst of this uncertainty, in a year that reminded investors that volatility and investing in the stock market go hand-in-hand.
Pandemic 2020
The world was shaken when the COVID-19 virus rapidly spread throughout the globe. The effects of the virus negatively impacted several industries, particularly the tourism, travel, health, and food industries. Lay-offs were rampant and many businesses declined invalued or closed, and social restrictions contributed to an emerging work-from-home culture that altered how business was conducted. Against this backdrop, the future looked exceedingly bleak.
Your decision was made during a time when many countries began to shut their borders as the World Health Organization declared COVID-19 a pandemic, but before the full extent and duration of the pandemic were known.
