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.<
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