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A note from my investment manager...
Good afternoon,
As you are more than likely aware, market volatility is upon us once again. Last week was the worst week for the S & P 500 in two years, and the sell-off accelerated today turning the U.S. stock market slightly negative for 2018 after a strong start to the year.
Although the exact cause is never fully known, the current sell off is largely being attributed to concerns of accelerating inflation and the potential for faster than expected interest rate increases. Interestingly, these concerns are being fueled by the continued positive economic fundamentals such as accelerating wage growth.
Given how accustomed we’ve grown to this “calm and steady” bull market over the last few years, a little volatility can definitely be unnerving. But it’s worth remembering that when it comes to markets: “calm and steady” is the exception, not the rule. Not only is volatility normal, it’s to be expected. Over the last 10 years, the S & P 500 has experienced a greater than 1% move on 27% of trading days. However, in 2017, a 1% or greater move occurred on only 3% of trading days.
As you have heard from us during previous times of increased volatility, it is imperative to stay calm and not panic. Periods of heightened volatility are often the worst times to make drastic portfolio changes. As always, we will continue to monitor global markets. We will not make any decisions that materially alter your long-term diversified portfolio as a result of short-term volatility.
As you are more than likely aware, market volatility is upon us once again. Last week was the worst week for the S & P 500 in two years, and the sell-off accelerated today turning the U.S. stock market slightly negative for 2018 after a strong start to the year.
Although the exact cause is never fully known, the current sell off is largely being attributed to concerns of accelerating inflation and the potential for faster than expected interest rate increases. Interestingly, these concerns are being fueled by the continued positive economic fundamentals such as accelerating wage growth.
Given how accustomed we’ve grown to this “calm and steady” bull market over the last few years, a little volatility can definitely be unnerving. But it’s worth remembering that when it comes to markets: “calm and steady” is the exception, not the rule. Not only is volatility normal, it’s to be expected. Over the last 10 years, the S & P 500 has experienced a greater than 1% move on 27% of trading days. However, in 2017, a 1% or greater move occurred on only 3% of trading days.
As you have heard from us during previous times of increased volatility, it is imperative to stay calm and not panic. Periods of heightened volatility are often the worst times to make drastic portfolio changes. As always, we will continue to monitor global markets. We will not make any decisions that materially alter your long-term diversified portfolio as a result of short-term volatility.
8 replies
= new reply since forum marked as read
= new reply since forum marked as read
Fools game for many, esp. those that are not members of the 1%. 
<snerk>
