Posted on

Lessons of History

Take a look at how economic recessions and the unemployment rate have interacted over the last 70 years. It’s an eerie correlation, wouldn’t you say? We may not have bottomed out quite yet, but a bounce off of historical unemployment lows is a trend all investors should keep an eye on. Historically, the corrective slope leading towards recession is quite steep. In other words, it happens fast. Call it market cycles, call it reversion to the mean – can you stand to lose 30-40% of your life savings in the next downturn? I believe it was Mark Twain, who once said that history doesn’t always repeat itself, but it sure does rhyme. The time is nigh. Let’s check in with your portfolio and discuss the optimal trade-off between risk and reward.