A market downturn often goes hand in hand with some kind of a recession. A great example of this was the housing market crisis in the United States around 2008 and 2009. It was felt everywhere in the world.
What doesn’t come to mind for a lot of people is the fact that a market downturn is one of the best times to invest. When for example Canadian stocks or house prices are at a very low point, the only way is usually up. Maybe not in the short term, but definitely in the long term.
If there is one thing that is consistent in the history of the markets, it’s that a recession will always end at some point. And the greatest profits are made when you buy low and sell high.
Instead of being ruled by fear, like many people are with a market downturn, there are a always a few who know what to do with it.
As a financial advisor I know for a fact that investing during a market downturn can lead to some great financial times for yourself. When done the right way, you’ll come out of the downturn financially healthier than you went in.