The Roller Coaster

Posted in: Economics, Stock Market, Thought of the Week

Since 2000, the S&P 500 has experienced bigger swings and greater volatility. The result being investors must endure bigger swings and greater volatility. Even though we have seen an increase in volatility, the S&P has still delivered positive annual returns in 25 of the last 32 years.  The lesson here is that despite the tech bubble, the financial crisis of 2008, Bernie Madoff, Allen Stanford, and the flash crash, the equity markets have grown at a significant rate.

Investors must resist the temptation to panic because, in the end, these shocks may have been temporary and equity markets have delivered strong annual returns. Long term investors that stay invested can withstand short term market disruptions that result from bubbles bursting, corporate fraud, and recessionary times. Read this week’s Thought of the Week to find out where our Investment Committee thinks the market is heading in the next decade.

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As an Investment Advisory Representative working in conjunction with Global Financial Private Capital (GFPC) we are provided weekly thoughts on what is happening in the economy and the market.  Written by our investment committee at GFPC we find these thoughts to be informative and interesting.