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Client Communication Briefing Market Volatility Yesterday’s
stock market sell off is a reminder that markets have risk. The Dow Jones Industrial Average declined
by over three percent. The trigger
seems to have been the concerns over risks in some of the more risky markets
like These
events along with an above average run up in stock prices set the stage for
yesterday’s sell off. Is this just a
one or two day event or does the sell off signal the start of a period of
declines? No one knows the
answer. It is normal for stocks to
decline after a recent run up. After
all, we have had a gain of over twenty percent over the stock market lows of last
June. A decline of up to ten percent at
this time would come as no surprise. Our
response to rapidly changing markets is to stick to the plan we have
developed for you. Those plans are
designed around your risk tolerance, time horizons and investment objectives. We stick to the plan and do not let short
term market volatility drive our decisions.
As always, keep us informed of any changes that may be happening in
your life so we can respond appropriately. If you
have any questions or concerns, give us a call. Michael Haubrich, CFP |
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