Recent Market Volatility
The recent stock market volatility investors experienced over the past month is a good reminder that investing comes with risk. It’s important to put recent events into a broader context. If there were no volatility in the markets, the expected return for stocks would not be greater than the expected returns for bonds and cash. Stock market corrections, which are defined as a price decline of 10% or more, happen on average once every twelve to eighteen months. Remember that historically the stock market returns after a 10% correction have been positive on average for the subsequent one, three, and five year time periods.
To learn more, see the video below from one of our investment partners.