GFC vs Coronavirus

GFC vs Coronavirus – The current pandemic is like nothing the world has ever seen before. This time last year we were in a very different place. Many people are now questioning whether we are heading into a period of economic crisis reminiscent of the days of the Global Financial Crisis (GFC).  Let’s compare this current Coronavirus crisis to the GFC of 2007/2008. Whilst it is still early days in the current crisis, there are similarities and differences we can make with the GFC.  We believe an investor’s response to these crises should be similar, with the adage “time in the market is more important than timing the market” remaining appropriate. This is illustrated in the following chart;   As you can see above, even if you had invested just prior to the start of the GFC in late 2007, in the following years you would have reaped the benefits of a strongly rising market, in both Australian and [...]