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Current market volatility

Current market volatility

June 29, 2022

We are starting to get questions about the recent market volatility.  Here are some facts:

On March 6, 2009, the DOW closed at 6,626 and this was the beginning of a very good, very long (11 year) bull market.

On January 17, 2020, the DOW closed at 29,349.  

We experienced what I call "the COVID scare" which, as you might assume, was a stock market reaction to the pandemic, and the DOW closed at 21,636 on March 27th 2020.

The DOW closed at its all-time high on January 5, 2022 at 36,952.

Today, June 29, 2022, it closed at 31,029 (16% lower than the high on 1/5/22).

The DOW is simply a measurement of thirty large, well known companies.

Volatility is normal.  The bull market we experienced from 2009 to 2020 is not normal.  It was the longest ever. 

The stock market is not for everyone.  If the volatility illustrated in the above numbers causes you to lose sleep at night, stocks might not be the best investment class for you to own.  Having said that, it's important not to react and sell out at the wrong time - during volatility.  If you'd like to explore a different investment plan to achieve your goals, let your advisor know and be sure to circle back once the markets have stabilized.  If you have more than enough money, and don't need the returns stocks provide, there are other asset classes that are less volatile.  

Having been in the industry for three decades, what I've found is that investors aren't very likely to move out of stocks once they've recovered and most people decide to stay put.

In this season of volatility, it's important to stay in touch with your advisor.  We'd love to answer your questions!