Market volatility in perspective

It’s happening again.  Investors are picking up the phone and calling in as they are worried about volatility.  Now keep in mind, they haven’t been concerned about volatility since around 2010.  The main reason is that volatility has primarily been to the upside.  That is also fairly uncommon when looking at average intra-year declines.

From 1979 to now, the average intra-year decline has been about 14%.  About half of the years experienced declines of 10% and around a third of those years had declines of at least 15%.  Despite these intra-year declines, 33 out of 39 of these years was positive.  Going back to the basics of “why” we invest is important at times like these.  Remember why you invested “hopefully” in a globally diversified portfolio of stocks, bonds & cash.  Also remember why you take risk in the first place and how that will help you achieve your long term goals.