After an unusually calm start to the year, we've seen an uptick in overall market volatility in the past few weeks. However, we want to remind you that corrections such as this are very normal in historical context... and even though the exact circumstances are different each time, the end result have generally been the same.
One of the keys to investing success is to expect market volatility, and therefore, you can become more equipped to navigate it properly.
(Below) Ben Carlson’s “A Wealth of Common Sense" provided this table of Stock Market Drawdowns since 1928. This shows that stock market volatility "is a feature, not a bug”, and to achieve potentially larger than normal returns, you need to expect and be OK with volatility, as that is the premium we pay for higher long-term returns.
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Source: https://awealthofcommonsense.com/2024/02/how-often-do-bear-markets-occur/
This article is being provided for informational purposes and should not be construed as investment advice or relied upon as a basis for any investment or financial decision. Past investment or market performance is no indication of future results. Indices are unmanaged portfolios of specified securities. Individuals cannot invest directly in an index.
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