- Recent market volatility is yet another painful reminder of what happens to risk assets during challenging times for the world and economy.
- Market volatility is a natural aspect of investing, and the S&P 500 has had an average intra-year max drawdown of 14% over the past 40+ years. Recently, market volatility has been suppressed by significant government monetary intervention but is returning to more normalized levels.
- Over periods of market stress, it’s essential to stay focused on long-term goals. These times reaffirm the need to maintain diversified portfolios aligned with individual risk tolerances.
- Uncertainty is likely to remain high in the coming months – or even years – but the best path is often to stay the course, assuming all near- and medium-term liquidity needs are met. There may also be opportunities to take advantage of as market dislocations occur.
