Participating But Defending as Recession Storm Clouds Build
Many investors have forgotten that volatile markets exact an emotional toll. For several years during the current economic expansion, the biggest dips were in the 6% range. December 2018 saw a 10% decline in about three weeks. Market corrections (~10%) can be considered a healthy stabilizer.
We have written several times about the emotional toll from volatile markets. For a few years in the current economic expansion, the biggest dips were in the 6% range. December 2018 saw a 10% decline in about three weeks. Market correction (of 10%) can be considered a healthy stabilizer but when they’re frequent or more severe, investor and consumer behaviors can swing.<
On April 1st the S&P 500 Index® was successfully retesting its February 11th low of 2,532 and began its recovery process. Although trade talks slowed the rebound, investors discounted the potential threat to the world economy. US markets traded higher, and in mid-June were within just 2.8% of retaking the January highs.