Don’t panic

The geopolitical and economic uncertainty induced by the Trump government is taking its toll on financial markets. The sea of red we saw in equities worldwide is a painful reminder that equities are not going up in a straight line. At ECP, we stick right now to our course as our the case for equities remains intact and the investment cases we have are robust. If anything, we use these situations to look for new investment opportunities and put money to work when bargains arise. For me personally, the below graph is one of my preferred showing the advantages of a long term approach, comparing the max losses incurred at any given year since 1990 in the S&P 500 to the final performance of the year. Things always look worse during the large drawdowns, that are the norm, than at the end of the calendar year.