Above is a chart of the U.S. GDP (Gross Domestic Product from 1947 – 2022).
Since the end of World War II, the U.S. economy has grown tremendously. GDP is now a staggering 10 times larger than it was back in 1947. Oh, and by way, this includes enduring 12 recessions (grey lines) along the way.
Above is a price chart of the Dow Jones Industrial Average going back to 1930. It includes some major world events, The Great Depression, several wars, and 15 recessions.
If I was a betting man (and I am), I wouldn’t bet against the United States continuing to grow and do well over time. The key part of this phrase being, “well over time.”
We are going to experience some tough times both now, and in the future…this unfortunately is unavoidable. Plan accordingly. Tough times don’t last, but tough people (and investors) do.
-Paul R. Rossi, CFA