As we enter into this New Year, we want to take a minute and check in with everyone. We recognize that for most, the market volatility we have experienced in this last quarter was “breathtaking” – and not in that magnificent, awe-inspiring sort of way, but more like you may have felt as if the wind was knocked out of you.
There are multiple factors contributing to this negative market. One of the main reasons being that stocks have been overvalued for an extended period of time and we are now experiencing a correction in prices. Other triggers for market volatility come in many different shapes and sizes—policy uncertainty in Washington, earnings reports, geopolitical unrest, government shutdowns – the list is almost endless. Market swings can rattle even the most seasoned investors' nerves, but as we all know, volatility is part and parcel of investing.
On average from 1926 to 2017, one in every four years yields a negative return in the U.S. Market - 2018 just happens to be one of those negative years.
Preparation and patience is the key to being able to weather both corrections and volatility in the market. At Onyx, we have worked with our clients to create a well-defined investment plan tailored to their goals and financial situation. Sticking to this plan is key to withstanding the normal ups and downs of the market.
Rather than focusing on the turbulence, wondering whether you need to do something now, or wondering what the market will do tomorrow, we advise that you concentrate on staying the course. A good plan and a long term focus can help you ride out the peaks and valleys of the market and work towards achieving your financial goals.