Market Update from World Trend Financial
The past ten days have seen events that will reshape the future of US equity markets. Predictably, worldwide equity markets responded with significant losses. These come on the back of an already shaky market resulting from the sell-off since markets peaked last October. Over the last 11 months, the S&P 500 fell 21.52%. The overseas markets, which have outperformed US markets for much of this decade, have dropped 28.24%. Financial stocks, which comprise a sizable chunk of the US equity markets, have shed 37.78%. The losses have been broad-based and staggering.
The focus now is where markets will go from here. While there is no shortage of varying opinions, the truth is that no one knows. It is during periods like these that it is important to revert back to what we believe the two pillars of long-term investment success: asset allocation and time horizon.
Only those investors who avoid the prevailing panic will be positioned to benefit. Many of the funds that we recommend for our investors are aggressively establishing new positions that are trading at lower prices. Of course, the recognition of this value may not be immediately evident.
These are certainly difficult times for investors. Every day seems to bring additional bad news. It is more important than ever to formulate a rationale investment approach that can help weather the current volatility. We stand ready to discuss any questions or concerns you may have.
Please call us at (319) 339-4884 or visit our website at www.RealFinancialStrategies.com to learn more.
Below are articles about market volatility and about why sticking to your investment plan, even in this scary environment, pays off in the long run.