But a strong recovery, even a boom, did eventually come, and the worse things looked, the stronger the eventual bounce back was. The fact that we haven’t seen one yet doesn’t mean it isn’t on its way. Many of the passing economic headwinds may be setting us up for just that outcome, no matter how unlikely it seems at the moment.
So what would this boom look like?
Probably another couple of years of strong growth, with rising consumer confidence and spending. And possibly a couple of strong years for the stock market. At some point, of course, we will face a downturn, but maybe not for some time yet.
Will this boom happen? Who knows, but it’s a real possibility, and—since no one is really talking about it—may represent real opportunity for investors. When planning for downside risks, don’t forget to consider the possibility of upside risks as well.
Brad McMillan is the chief investment officer at Commonwealth Financial Network, the nation’s largest privately held independent broker/dealer-RIA. He is the primary spokesperson for Commonwealth’s investment divisions. This post originally appeared on The Independent Market Observer, a daily blog authored by McMillan.