Market Chaos: Perspective Required
Yes, the markets have lost their collective minds once again. However, it is nothing new and is actually a feature of the markets. As of this publishing the market is down 12.4% from the peak, using the benchmark S&P 500 index. Given that the market was up in the last 2 years, 23.3% and 24.3% respectively we really have to take the current volatility in stride. Although unsettling, the market goes through this type of turmoil periodically. In our opinion, this is the reason to be properly diversified as is the case for our clients. Nobody has a crystal ball and those that say they do are not to be believed. So if you are properly diversified it makes the ride less bumpy and positions you for an unknown future. What we do know is the markets adjust and find a new way forward. The market adjustments will be chaotic but this too shall also pass.
Take the Market Moves Quiz to find out how you handle market chaos!