Good Financial Reads: Market Volatility

2 min read
February 16, 2018

GFR market volatility

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Catch up on some of the latest posts with this week's roundup:

 

4 Charts that Tell You Everything You Need to Know About Investing

by Michael Kostelnik, Family Life Financial Planning

If you have not seen yet, the market is a little bit of a nose dive. Also in the news today, the world is ending, and the sky is falling. In all seriousness, though, when the market drops 4.1% in a day, it is time to remember a few things about investing. Here are 4 charts that tell you everything you need to know about investing.

[Read the Full Article]

 

How Does The Volatility Of The Stock Market Affect Your Investment?

by Jiyao Xu, X and Y Adivsors

There is no doubt that the stock market is volatile. The questions are how volatile it could be, what differences are between short-term and long-term, and what we can learn from it. Firstly, let's look at how volatile the stock market has been. 

Figure 1 shows that the average intra-year decline of S&P 500 index was approximately 14.1% for the period from 1980 to 2016. The intra-year decline means the largest market drops from a peak to a trough during a year. In 2008, the intra-year decline was 49%. In other words, if you invested in an S&P 500 index fund through 2008, you would have experienced an approximately 49% decline in your account. It is quite volatile, isn't it? 

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Should You Be Hoping For The Stock Market To Go Drop?

by Jared Paul, Capable Wealth

One of my close friends left their job this past year. When he did, we had a conversation about what he was planning to do with his retirement money inside his old employer’s 401(k) plan.

My friend was wondering how the money should be invested; if it should be rolled over into an IRA, or if it should be put into another 401(k) plan.

One of the driving concerns was the potential for the market to go down, causing him to lose money.

[Read the Full Article]

 

A Lesson in Market Returns

by Jeff Snodgrass, Mindful Wealth

The most common questions the last few weeks are:

  • When do you expect the next bad market?
  • How bad will it be?

THE FIRST PART OF MY RESPONSE is a reminder that your market expectations are only half of the story. Think back to March of 2009. We had just been through some of the worst equity returns in history. The general economic outlook could be described as hopeless. 

If you lived through this time period as an adult you can distinctly remember the uneasy feeling and the sense of despair that so many people had for months on end.

[Read the Full Article]