As you may have noticed, last week was quite the ride in the stock market. For the week, the S&P 500 returned -11.47% [1]. It was the fastest correction (defined as a -10% return) since July of 1933. Even for the normal ups and downs of the stock market, this was a volatile week.
I’m sure none of us roots for the market to decline. In fact, it can be a little nerve-wracking when the news headlines are flashing red, both literally and figuratively. Depending on what we read and whom we talk to, we may become concerned that the market movement is going to directly affect our financial lives in a lasting way. Even for a patient, long-term investor, rapidly declining markets can be scary!
We are here to remind you that even though we don’t like seeing the red, we expect it. In fact, in the assumptions we make, plans we build, portfolios we manage and projections we run for you, the ups and downs of the market are already factored in. We know that corrections are going to come; we just don’t know when and for how long they will last. That is the big difference between predicting corrections and expecting them!
So when you see red, read the negative news and hear your neighbors talking about all they are doing to try to combat the market, you can remember that we have expected it. We certainly aren’t enjoying it, but we aren’t surprised either. Your plan is in good hands, your future has been accounted for and the negative markets have already been considered.
Continue to focus on what is most important to you, and tell us how we can continue to walk with you to that end!
[1] https://markets.businessinsider.com/news/stocks/stock-market-outlook-sp500-coronavirus-outbreak-correction-fastest-great-depression-2020-2-1028949992
