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ADV : Keep Volatility in Perspective

Dear Clients,

Volatility is never comfortable, and this latest round is no exception. Panicked headlines may have investors feeling apprehensive and uncertain.

This has been the worst start to a year for the S&P 500 in the last 25 years. However, in my over 30 years of experience, I’ve seen this happen time and again. Market pullbacks and corrections are necessary to sustain a healthy market and that, over time, the market has experienced positive growth.

“The first two years of a bull market tend to lead to investor complacency as returns are robust and broad-based,” said Raymond James Chief Investment Officer Larry Adam. “The third year tends to be different and defined by more volatility, muted returns and the need to be more selective. While this downside volatility may seem extreme, it is worth noting that it really is an ‘average’ pullback.”

Having concerns when volatility affects your portfolio is normal. This is why I emphasize the importance of a tailored financial plan focused on long-term financial goals. Over time, dips such as these should feel like mere bumps in the road.

“We encourage investors not to focus on daily headlines and certainly not to make investment decisions based on those headlines,” Adam said. Here are some key facts investors can bear in mind amid volatility:

  • Fundamentals continue to support a move higher for equities
  • Bond yields have created opportunities for income-oriented investors
  • Downside volatility may seem extreme, but in perspective is actually average

As your advisor, I’m here to provide you not only with insight but with advice on how we can help manage the effects of – and capitalize upon – the markets’ movements. I am watching the markets closely and will reach out should anything require immediate action. In the meantime, please feel free to get in touch if you’d like additional perspective or guidance.

As always, I thank you for the trust you place in us.

With Kindness,

Kelli Young, CLTC

Financial Planner, Owner


The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor’s results will vary.

Past performance is not indicative of future results. The information provided is for informational purposes only and has been obtained from sources considered to be reliable, but its accuracy is not guaranteed.

Investment advisory services are offered through Golden State Equity Partners, LLC (“GSEP”), an investment adviser registered with the U.S. Securities and Exchange Commission. Longevity Wealth is a DBA of GSEP. CA Insurance Lic# OH03261