Markets have experienced volatility in recent weeks but price movements don’t necessarily mean it is time to abandon ship. Prices move as investors incorporate information, good or bad, and reflect their expectations about the future in their trades. Uncertainty also has an impact on prices. But while we tend to avoid the unknown, uncertainty is a persistent characteristic of investing. For an investor to earn above the “risk-free rate” they must weigh the tradeoff of taking on some level of risk. During new market highs or declines, it can feel like a bad time to invest. But a strategy you can stick with based on your goals and tolerances can help tame this anxiety. By understanding that uncertainty is an unavoidable component of investing, you can avoid reacting emotionally. (Downlad the PDF for more)
The stock markets seem to be doing a little better, but I’m still hearing talk about a recession. Should I be worried?
Equity markets have seen a much-welcomed reprieve recently with broad US, International, and Emerging Market indices up 11.6%, 15.3% and 6.9% QTD through 11/11/20221. However,