Patterns of a crash.
Updated: Jul 31, 2020
January 2020 - May 2020 (FTSE 100)
A month ago the worlds equities crashed - but most have now partially recovered and maybe even stabilised.
Are we on the road to recovery, or just at the start of the real crash?
Every financial crash is caused by something different, unexpected, and unforeseen.
So what can we learn?
Look at any graph of any index during a significant crash in the past, (we used the FTSE100
for this illustration).
2007/2008 Crash (FTSE 100)
The key factors are:
1. The market bottom takes months or possibly years to reach, often with false "recoveries".
along the way.
2. Once at the bottom, it can take years to see real growth.
3. It often takes years to then recover to pre crash levels.
Dot Com Crash 2000 (FTSE 100)
If your clients are in equity funds and afraid of "consolidating losses", now is the time to talk
honestly with them about the returns they want over the next few years.
Holding firm could mean years of no growth or further loss.
Or, we can give 14% growth pa.
Contact Accruvis for more information about crashes and our fixed return investment.
Accruvis Investment Solutions