As investors, every single one of us is prone to a range of emotions during periods of market volatility: fear, anxiety, optimism, greed, regret, and more. We’re not alone in this experience; there are millions of investors going through these same emotions with us each and every day. The incredible reality of the market is that no one precisely knows what the future holds, when the stock market will bottom out, or what the ultimate economic and human impact will be of the COVID-19 ... [Continue Reading]
Articles and resources related to Market Volatility.
As markets wait to hear the details of an upcoming Federal Government stimulus bill, the Federal Reserve has been regularly announcing steps it is taking to ensure market liquidity. A recent piece from the Council on Foreign Relations describes the various steps that have been taken, as well as further steps that the Federal Reserve can take if necessary. ... [Continue Reading]
The market is digesting a large volume of new information, spanning from coronavirus and continuing trade war negotiations to a second inversion of the yield curve and, of course, an upcoming presidential election. Vanguard’s recent "Market Perspectives" touches on a number of these issues. While each issue is important for investors to be aware of, it's also important to remember that the market is constantly incorporating new information into stock prices, as well as expectations for ... [Continue Reading]
March 9, 2009, is an important day in our shared history. We didn’t necessarily know it at the time as it took a few months for the significance of the day to reveal itself, but it was on this date when the financial markets hit rock bottom during the Global Financial Crisis (GFC). From that day forward the markets stopped their painful retreat and began to recover. That was ten years ago now, and as we reflect on those ten years, of course there are countless learnings and insights that could ... [Continue Reading]
The S&P 500, an index that tracks the performance of large U.S. company stocks, has delivered 9.99% average annual returns since 1926 1 . We know that this terrific performance is compensation to investors for taking on risk, and that returns weren’t achieved in a slow and steady manner. Investors don’t have to look too far back in time to remember the poor performance of the tech bubble in the early 2000s or the financial crisis of 2008. In fact, the 10-year annual return of the S&P ... [Continue Reading]