Advisor Voices

Advisor Voices: Some Perspective on the Market's Recent Swings

1 October 2019

By: Kristi Wano, Senior Wealth Advisor

Like Top Gun, mom jeans and the music of Queen, market volatility is making a comeback in 2019. We are now in the 11th year of a record-setting bull market, but virtually every week seems to bring another plunge in the stock market, followed, just as often as not, by an equal and opposite rally.

What should investors make of the moves and what should they do in response? They can start by making sure they keep volatility in perspective. Following are a few points to bear in mind about equity market volatility:

So then do nothing? Just ride out the volatility? Not exactly.

For most investors it pays to keep a long-term perspective. Often the worst thing you can do when stocks are falling is to sell into the drop, thereby missing the rebound. But if volatility is indeed back, now might be a good time to check in with your advisor, discuss your goals and any important changes to your circumstances, and make sure your portfolio is suited to your current situation.      

[1] The VIX Index is based on options of the S&P 500 Index, considered the leading indicator of the broad U.S. Stock Market. The VIX Index is recognized as the world’s premier gauge of U.S equity market volatility.
[2]  https://www.investopedia.com/a-history-of-bear-markets-4582652

 

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