July 2015 Newsletter to Clients
Submitted by Moneywatch Advisors on July 9th, 2015Enjoy this month’s edition that features a milestone anniversary for Moneywatch Advisors, historical table of market conditions over the same period and an overview of the situation in Greece, aka Grexit.
Moneywatch Advisors will celebrate its 35th anniversary in July. Since the founding of the company the list below names the stock market crashes and bear markets which have occurred (source Wikipedia).
Souk Al-Manakh stock market crash
Aug 1982
Black Monday
19 Oct 1987
Rio de Janeiro Stock Exchange Crash
June 1989
Friday the 13th mini-crash
13 Oct 1989
Early 1990s recession
July 1990
Japanese asset price bubble
1991
Black Wednesday
16 Sep 1992
1997 Asian financial crisis
2 July 1997
October 27, 1997 mini-crash
27 Oct 1997
1998 Russian financial crisis
17 Aug 1998
Dot-com bubble
10 March 2000
Economic effects arising from the September 11 attacks
11 Sep 2001
Stock market downturn of 2002
9 Oct 2002
Chinese stock bubble of 2007
27 Feb 2007
United States bear market of 2007–0
11 Oct 2007
Financial crisis of 2007–08
16 Sep 2008
2009 Dubai debt standstil
27 Nov 2009
European sovereign debt crisis
27 April 2010
2010 Flash Crash
6 May 2010
August 2011 stock markets fal
1 Aug 2011
Over the same period, the S&P500 increased 1717% (source Yahoo Finance). Our long term time horizons and asset diversification continue to serve us well.
Could the current situation in Greece be the next ‘event’ on this list? Anything is possible but the facts remain; Greece is a small country. Its Gross Domestic Product (GDP) is under 6.5% of Germany’s. The Greek outstanding debt is barely 1% of Europe’s banking assets. Default of Greek debt will not threaten Europe’s financial stability. Will the future of the Euro need to be examined more closely? Absolutely, but we see no threat to our investment portfolio based on the problems Greece is currently experiencing.
Perhaps, the best question/answer I have heard thus far regarding Greece:
Who needs to be worried about the crisis in Greece?
- Those that live in Greece.
- Those that hold Greek assets.
Thank you for your continuing confidence.
Past performance is no guarantee of future results. The opinions expressed are those of Moneywatch Advisors, Inc. and are no guarantee of the future performance of any particular fund. This information is for educational purposes only and is not intended as investment advice. Please consult your financial advisor for more detailed information or for advice regarding your individual situation.
