A Once in a Generation Opportunity to Invest?

This article was written in March 2020

Is now a once in a generation opportunity to invest, given the recent market falls?

Just one month ago, in late February, the US S&P500 and Nasdaq hit record highs, despite the fact that the coronavirus was getting worse.

As I mentioned before, markets went up during the Spanish Flu Influenza of 1918-1920, despite there being a world war on top of the virus.

The same thing happened during HIV and various other pandemics.

This time, stock markets have reacted to the government shut downs of large parts of the economy, which didn’t happen in 1918-1920.

What do we know from past experience?

  • The average bear market doesn’t last long as per the stats below. Even during 2008, it took markets 3 years to recover from the falls:
  • Markets have always recovered for over 100 years in the US and UK, despite countless previous huge falls.
  • Anybody buying at these levels, has tended to get high returns in the subsequent 5 years. For instance, in the 5 years after 2008, investors in the S&P500 got about 15.80%.
  • Most successful investors, including Warren Buffett, advocate taking advantage of market falls:

The past is no definitive guide to future investment returns. A long-term investor though, should see themselves as a collector.

Cheaper prices, are good for net buyers (those not in retirement). Market falls are bad for net sellers (retirees who have to sell to fund their lifestyle).

For anybody with a 10 year+ time horizon, these valuations represent an excellent opportunity.

For comments or questions about how to invest, you can contact me on advice@adamfayed.com, or using the chat function below.

Update – since this article was published on March 24, US Stock Markets have risen by 50%-80% depending on which index you look at.

Blog Comments

Where and how to invest?

I will email you.

what potential area do I invest this time? How do I go about it, please?

I will email you

I’m a retiree

I need advise to invest in best stocks from long term view. I am a retiree .

I will email you.

I would like to invest in this period, please email me

will email you.

Have some spare money in hand for investing and would like to get some advise on how to go about that in the present conditions. I believe a lot of good stocks are at low prices and is it advisable to go in now and pickup some good stocks. Thank you and appreciate a reply.

I would like to invest some saved money as the market are down. Please if you can guide me, appropriate it. Thanks.

I would like to invest some saved money as the market are down. Please if you can guide me, appropriate it. Thanks.

I will email you.

Please advise me on how to invest

I want to invest but don’t know how to start. Please help!

email me!!! i need to invest

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