A regular query we hear these days......." after such a sharp rebound in the market, what do you think is going to happen this year?"
An excellent question coming out of a recession, and reasonable considering we saw such a sharp drawdown, with an almost equally swift recovery in stock markets. If we exclude circumstances surrounding each recession (self induced or otherwise), and look at the data, post recession rebounds tend to be quite sharp. We also see that the second and third year can be fairly robust in terms of returns too. For the example below, we looked at the SP500 as well as the TSX.
So now the big question.....what do you think is going to happen this time?