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.
Financial markets around the world faltered in the 4th quarter, not entirely due to economic realities but largely in response to “noise” over geopolitical events, trade concerns, rising interest rates, slowing growth of corporate earnings and global economies.
From the market’s closing high on Oct 3rd to its trough on Dec 24th, the S&P 500 gave up 19.8% of its
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.