The Times They Aren’t A Changing

This note owes a debt to Legg Mason and a document it makes available on its US website. Time magazine is an iconic US publication with a US readership of 20 million and an estimated worldwide readership of 25 million people; it has charted the history of the American people since its founding in 1923 and there are many famous Time covers, possibly the most well known being that of Albert Einstein, who was voted person of the 20th century.

Legg Mason have taken a number of Time covers which chronicle market downturns in the US and placed them on a timeline, the backdrop of which is the performance of the S&P 500. With titles like, “Is the US Going Broke”, “Can Capitalism Survive” and “The Crash” it takes recent history, from about 1970 and puts it into perspective. As part of the press, Time is of course more interested in bad news than good but the litany of bad news that these covers represent has not presaged the end of capitalism nor stopped the inexorable rise of stock markets.

Legg Mason make some important points in the body of the brochure; investing is for life (or longer if you have children or grandchildren); your long-term goals and objectives are more important than short-term crises; market timing is impossible to get right; invest for the long-term and keep your eyes on the horizon; it is never “different this time”.

Click to read Legg Mason article

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