Though August has seen the stock market decline, it is still up from it’s low in early October last year. At that low point, stocks had declined significantly because of fear that rising interest rates would cause a recession.
Will we have a recession? Will the stock market continue to increase? At this point, no one can say with 100% certainty. But whether a recession occurs with a market decline or whether the stock market keeps rising, the following article by the Capital Group, one of the Portfolio Strategists we utilize for client accounts, provides an important historical perspective regarding the nature of stock market recoveries.