Just the facts please

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The famous Warren Buffett famously said in his 2016 annual report, “Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold.”

So, what exactly does Warren Buffett mean by “raining gold?”

Let’s look at the facts as presented by our friends First Trust.

The image below shows the depth and duration of all bear markets (excluding the one we’re in now) since the early 1900’s. It also shows the bull market that followed the bear market.

Here’s the summary:

  • The average bear market lasted 1.3 years with an average draw down of -38%
  • The average bull market that followed lasted 6.6 years with an average cumulative return of 339%

Now we have no idea the depth and duration of the current bear market. Nor do we have any idea what the returns will be moving forward. (Past performance is not indicative of future returns.)

BUT . . .

Perhaps the returns that occur (an avg. of 339%) after a bear market is the gold that Mr. Buffett is referring too?

Here’s to wise investing,

Iron Gate Global Advisors

 

The commentary on this program reflects the personal opinions, viewpoints and analyses of the Iron Gate Global Advisors, LLC employees providing such comments, and should not be regarded as a description of advisory services provided by Iron Gate Global Advisors, LLC or performance returns of any Iron Gate Global Advisors, LLC Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Iron Gate Global Advisors, LLC manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results and always consult with a professional prior to investing.

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