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


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