PERSPECTIVE
"What we learn from history is that people don't learn from history."

- Warren Buffett, Chairman & CEO, Berkshire Hathaway

From 1926-2021, what percentage of the time did the stock market1 generate positive annual returns?

74% of the time!2 Yet, in the depths of market declines, like 2008 and 2020, this historical perspective escaped many as emotions took hold and prejudiced investment decisions. Would knowledge of past recessions have changed your actions during these turbulent periods? Perhaps.

The wisdom of history has taught us:

In the post-World War II period (1951-present), while the timing of recessions is largely unpredictable, recessions are fairly short in duration. In the ten US recessions occurring since 1951, the average duration was less than twelve months. Equally interesting, with the exception of the recession starting in May 2001, in nine of these ten financial market downturns, stock prices (S&P 500) stopped declining more than three months before the recession ended.3

If you waited for the recession to end to buy stocks, or sold stocks months into the recessionary declines, the emotional and financial toll was steep. What if your financial advisor considered the duration of past recessions in managing risk and creating cash buffers aligned with your spending needs? What if she planned for the unexpected and positioned you to stay the course?

1 S&P 500.
2 J.P. Morgan Asset Management.
3 Richard Marston, Investing for a Lifetime (Wiley, 2014), 32.

Please note: Past performance may not be indicative of future results. It is not possible to invest directly in an index. The S&P 500 is an unmanaged index of 500 widely held stocks.

Empowering Your Success

At Pando Partners, our appetite for investing wisdom is insatiable. We empower our clients by sharing and reflecting this wisdom in the custom strategies we create on their behalf. We believe financial market history can, and should, inform investment decisions. On behalf of our clients, we are constantly questioning, learning, asking, "What am I missing?" and "Who can help?"

We believe your biggest investment risk lies in not getting started. Just 2% inflation over 25 years can reduce the purchasing power of your capital by as much as 40%!

In their relationship with Pando, clients are invited to reach beyond investments. We understand that challenges in life and wealth are inextricably linked and life events are rarely predictable. Pando clients can rely on our counsel to help guide decision-making in all aspects of their financial lives, while taking a no excuses approach to helping them achieve their goals.

"Leading the life you want happens when you discover what is uniquely you: your passions, your interests, and your skills and converting that into value for other people."

- Dr. Stewart Friedman, Ph.D., Director, Wharton Leadership Program, University of Pennsylvania

POSSIBILITIES

Imagine your financial future; what does that look like?

What values would you share with future generations?
What will your legacy be?

The most important step in envisioning your financial future, and designing a path to get there, is to tell your story. To be heard and understood. We want to hear your story. What brings you the greatest joy? What keeps you up at night? What are your priorities? What are your goals?

How has your past shaped your financial behavior today? What does money represent to you? Our role in your journey, is to listen, understand, and design a roadmap to help guide your way. The possibilities for your life, and your wealth, are endless. The power to write your script and direct your journey, living the life you desire, is uniquely yours.