Investors know that the stock market moves in cycles, but the cycle has seen no daily drops of more than 2 percent for over a year. As the accompanying chart shows, the 2023-2024 stretch of low volatility ranks 9th since 1966. Is that cause for alarm? No. Concern? Maybe, but only if you let emotions drive your decision-making. |
There’s no reason to suggest that a 2 percent move is pending. The table shows the stock market has a long way to go before it sets any records. But the table also reminds us that the stock market has trended higher while managing through domestic economic uncertainty and unsettling international news. History suggests that it may be only a matter of time before we see a 2 percent daily drop. When we created your portfolio, we anticipated there would be periods of market volatility. While none have occurred, you base your portfolio on your goals, time horizon, and risk tolerance. We’re ready for what comes next. Email me, brentclabaugh@rigglewealth.com or call the office at 717-630-1001, for a confidential evaluation of your financial portfolio and together we'll chart a course with you at the forefront. S&P 500 – A capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. Investors should consider their financial ability to continue to purchase through periods of low price levels. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. |
Don’t Be Fooled by Low Volatility
