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10 Years After The Great Recession

Ten years ago, the economy was bleak. The U.S. was in a recession. The subprime mortgage crisis was undermining Bear Stearns, Lehman Brothers, Countrywide Financial, AIG, and other major financial institutions; General Motors looked like it might go out of business. Then, in a story for the ages, the nation bounced back and led the world out from The Great Recession.

Over the last 10 years, a dollar in America's 500 largest public companies grew to $2.48. From the stock market's low point on March 9, 2009, a dollar appreciated in value 4.75 times, to $4.72 - a 372% return!

For the past decade, what makes America exceptional was in plain sight but difficult to see in the moment. It's never easy to see why U.S. stocks would gain in value. The current period is no different.

Share prices plunged 10.2% in early February, on inflation jitters, and again in March, on fears of a trade war. In April, The Wall Street Journal warned of a long period of weakness and cracks in global growth. Things looked bleak.

We're here to remind you that U.S. leading economic indicators released in April continued a long surge far beyond the highest point of the last expansion. This key forward-looking composite of 10 indicators points to solid growth for the rest of 2018. Despite the headlines, increased market volatility, and a weak first quarter return on stocks, very strong economic fundamentals remain in place. We're here to help you manage your portfolio for the long run.


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Index
The Interest Rate Inflection Point And Your Portfolio
Inflation: A Portfolio Risk That Never Dies
New Ways To Influence The Next Generation
Giving More To Loved Ones - Tax-Free
New Deduction Rules For Business Owners
A Bright Outlook For Consumer Spending
Six Tips To Avoid Phishing Scams
Good Riddance To The Alternative Minimum Tax
The New Tax Law Gives Roth Converters A Little Less Wiggle Room
Bad News: The New Tax Law Curbs A Home's Deductibility
Earnings Drives Stocks, And That's A Good Bottom Line
A Framework For Wealth Management We Believe In
Four Smart Tools For College Savings
Tax Relief For Disaster-Area Losses
It's Hard To Beat The Annual Gift Tax Exclusion For Ease

This article was written by a professional financial journalist for Houston Asset Management and is not intended as legal or investment advice.

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