Market Corrections Throughout the Year
It is common for the stock market to have declines during the year. I think the very calm and steady market of 2017 is still casting its rosy-colored hue onto our landscape of the capital markets. Rather, the corrections of February and October of this year are more the norm. If we evaluate the period from 1980 to 2017, the average intra-year decline has been -13.8%. Moreover, the market finished positive in 29 of those 38 years. For perspective, 2017 experienced a maximum decline of -3% throughout the year. In this regard, we were due for an increasing bout of volatility. In summary, the stock market has delivered returns above bonds and cash over the long-term. There are periods when stocks can experience turbulence. However, markets have a strong history of recovering from corrections. Please let us know if you have any questions or concerns.
Cory Nakamura CFA, CFP® Chief Investment Strategist Mosaic Pacific Investment Advisors | Honolulu, Hawaii Mosaic Pacific Investment Advisors, LLC is a Registered Investment Advisor in the state of Hawaii. This information is provided for general education and is not considered to be investment advice. Please contact your advisor for specific advice concerning your financial situation. Any rates or projections noted herein are for illustration purposes only and does not reflect current interest rates nor is a forecast of future returns or interest rates. Transactions requiring tax consideration should be reviewed carefully with your accountant or tax advisor. If you would like more information on our firm our ADV Part 2A (Brochure) is always available to you at no cost. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, Certified Financial Planner™ and CFP® in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements