“Markets love volatility” – Christine Lagarde
Last week, we advised that the weekly brief will only consist of market numbers until the completion of tax season on April 30th. However, we wanted to provide some perspective on the recent market pullback.
Bloomberg has written a great article on the recent volatility. Throughout the current nine-year U.S. bull market, there have been five other corrections like this one. On average, equities fell 14 per cent and took seven months to recover. It has been 60 days since the January 26th peak for the S&P 500; therefore, this current correction could last until August (if other recent selloffs are any indication).
While the message we’re trying to impart is that volatility is quite normal, we understand that it may be concerning in the short term. The above data is simply a reminder that even in an upward market there are prolonged periods of negative returns.
If you have any questions about markets or your portfolio, please feel free to contact us.
On behalf of the You First team, we wish you a Happy Easter long weekend.