Have you been feeling a little jittery with the recent bout of volatility in the equity markets?
You are not alone, but let’s take a step back and put things into perspective. This bull run has lasted since March 2009, and while time isn’t the killer of bull markets this run is the longest in history. Despite the wild ride thus far, the S&P 500 is positive YTD and is up 0.32%.¹
There are three things that we would like to point out during spates of market gyrations.
- Corrections are a normal course for the market and happen on average once per year. So far this year we have seen three corrections (February, March and October).
- Market timing sounds great but in reality is nearly impossible, as you have to get both the sell and buy decisions right.
- Missing some of the best days in the market can have outsized impacts on your portfolio over the long haul.
Our best advice is to have a plan so that when the markets do start to fluctuate, you are prepared mentally to take a step back and avoid making rash decisions.
If you reach the point where the volatility is too much to stomach, then it may be time to call your financial advisor and discuss reevaluating your risk tolerance.
Sources
¹ Bloomberg.The S&P 500 is a non-investable index.
