It’s déjà vu all over again. With inflation higher than it has been since the 1970s, interest rates rising and the economy slowing, many have grown fearful of investing. This attached speech (Capital Group: Investing Against the Tide) known as the “Fullerton Letter” was delivered in 1974 amid a prolonged bear market provides a historical perspective and a dose of optimism when it is in short supply.
Over time, and in time, the financial markets have demonstrated a remarkable ability to anticipate a better tomorrow even when today’s news feels so bad. We are once again in uncertain territory. It feels scary and terrible. It is exactly those feelings that make this speech so timeless. It’s precisely when the backdrop has looked so difficult that the markets have begun to recover. It’s hard to know when that turn will happen this cycle. But, based on prior experiences the market will turn eventually.
“Have courage! We have been here before — and we’ve survived and prospered.”
