stock market

Post Midterm Volatility

“A player surprised is a player half-beaten.” – Chess Proverb

The World Chess Championship is currently being played in London, and for the first time in decades, an American could be crowned as champion.

But this letter isn’t really about chess. It’s actually about the markets.

Why You Should Stay in Stocks in 2016

Why You Should Stay in Stocks in 2016? One bad trading day is not the year.
Provided by Eddy and Clayton Shum 

The stock market has wavered recently. A lackluster year just ended, and this year has started inauspiciously. You may be wondering ... should you really be invested in stocks right now?

Yes, you should be.

In moments like these, investors should not panic and overreact to the headlines. Instead, they should take the long view of stock market investing. Impulsive selling now can lead an investor to try and time the market later, and market timing usually leads investors to make mistakes.

Stock market investing is a long-run proposition. On a bad day, it may seem like the whole market is falling apart - but stock market performance is not measured only in days.

Keeping All This Volatility in Perspective

Keeping All This Volatility in Perspective

These recent ups & downs are reminiscent of past Wall Street swings.

 

Provided by Eddy and Clayton Shum

 

Fall might be anything but calm on Wall Street. Volatility is back, in a big way: the CBOE VIX has risen more than 105% since the end of July. Additionally, 11 of the 15 trading days ending September 9 were “all or nothing” days in which more than 80% of the S&P 500 moved either higher or lower. In the last 25 years, the index has not had a 15-day period like this.1,2

 

Contrast that with the first 159 trading days of 2015, in which just 13 such days occurred according to Bespoke Investment Group research. In fact, during the first half of 2015 the Dow Jones Industrial Average was never more than 3.5% up or down YTD, on pace for the most placid year in its history.2 

   

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