“This is the End?”

Stock markets have had this recurring nightmare ever since the recovery from the 2007-2009 financial crisis; “this is the end.”  Now that the recovery and bull market are over 10 years old, this fear comes around more and more.  Australia has not had a recession since 1991, belying the notion that there is some sort of natural economic life cycle of around 3-8 years.  However, humans are human, and fear is a powerful impulse.

And so, it continues, bouts of fear punctuated by periods of relief.  This pattern has always been a part of the investing landscape; today it all just happens so abruptly.  This may be a function of our modern stock market structure with algorithmic trading, international money flows, a relaxed regulatory scheme, and an absence of institutional market makers.

To be successful today one must keep a constant eye on the fundamentals; they are still good. Stay steady, my friends.

The Lonely Bull