Volatility Is The Norm...

| February 07, 2018
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…Not the placid markets we experiences for nearly two years without a 5% drop. That period was the anomaly.

The research team at DFA and JP Morgan produce great work on Intra-Year Declines.

In examining calendar year returns for the US stock market since 1979, the average intra-year decline was about 14%.

About half of the years observed had declines of more than 10%.

Roughly a third had declines of more than 15%.

Despite substantial intra-year drops, calendar year returns were positive in 32 years out of the 37 examined.

Again volatility is the norm, so don’t be lulled to sleep and if you can’s sleep at night, you need to immediately review your current asset allocation and course correct before you make an emotionally driven decision that works against your long-term financial plan.

 

Stay Tuned, Disciplined & Patient! {TJM}

The Investor & Character Equation (ICE) | S + R = O

 

Disclosure
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Meyer Capital Group), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Meyer Capital Group. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Meyer Capital Group is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Meyer Capital Group’s current written disclosure statement discussing our advisory services and fees is available for review upon request.

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