(Another) Test in Staying the Course
- Recent market volatility is yet another painful reminder of what happens to risk assets during
challenging times for the world and economy, this time revolving around a political regime change
and again escalating trade tensions. - Market volatility is a natural aspect of investing, and the S&P 500 has had an average
intra-year max drawdown of 13.9% over the past 40+ years. - Over periods of market stress, it’s essential to stay focused on long-term goals. These
times reaffirm the need to maintain diversified portfolios aligned with individual risk tolerances. - Uncertainty is likely to remain high in the coming months – or even years – but the best path
isoften to stay the course, assuming all near- and medium-term liquidity needs are met. There may
also be opportunities to take advantage of as market dislocations occur.