Capital Group: this is how opportunities arise from equity declines
In the “Guide to stock market recovery”, edited by Matteo Astolfi, giants such as McDonald’s, Walmart, Microsoft (NASDAQ:), Starbucks and Apple (NASDAQ:) are mentioned, founded during phases of economic contraction
Market downturns, although they may represent moments of extreme difficulty, can also offer opportunity. Investors who find the courage and conviction to stick to your plans in the long run they have often been rewarded by recovery. Capital Group has drawn up a “Guide to the recovery of the stock markets” edited by Matthew AstolfiHead of Client Group Italy, which highlights three peculiarities: recoveries tend to be much longer and more solid than recessions, markets recover relatively quickly from strong contractions, and some of the most influential companies in the world were born during the he resumed.
LIMITED DURATION OF DISCOUNTS FROM 1950 TO THE PRESENT
Astolfi observes that i periods of decline US markets since 1950 have lasted an average of 12 months, with bull markets five times longer. Furthermore, the uptrends have offered an average gain of 265%, but the recoveries almost never follow a regular path, because investors are often called upon to deal with alarming news, strong volatility and more push-ups. But those who stuck to their goal found themselves in a more advantageous position when the recovery began…
** This article was written by FinanciaLounge