Where to next?

Having suffered the worst calendar year for the ASX All Ordinaries index over the last century, we can assure ourselves that major falls are usually followed very quickly by some of the most significant sharemarket gains.

The sharemarket falls of 1973-74, 1981-82 and 1990 were all followed by some of the largest rises in sharemarket history.

The sharemarket has already factored in a severe downturn in the economy. Whether it materialises to the extent that the market has factored in, remains to be seen.

Annualised calender returns of the ASX All Ordinaries index since 1900