Market commentary
Uncertainty has U.S. stocks on the defensive
Uncertainty in capital markets is running rampant and putting U.S. stocks on the defensive. While it never feels good to see declines, they are actually a frequent occurrence. As always—but especially in turbulent times—we believe diversification is the best defense against volatility.
Uncertainty has U.S. stocks on the defensive
Stay the course
Fully diversify your portfolio, maintain it in line with your risk tolerance, stay invested, and don’t panic—these are some the core investing principles that we always come back to in turbulent times. While this advice has served long-term investors well, it’s also human nature to question it when markets decline. Although the exact reasons for market downturns are always different, the core principles of sound advice remain the same for any market environment, including today.
Market dips happen often
Uncertainty currently abounds in capital markets; we review the major concerns in the blue call-out box on the next page. When uncertainty rises to this level, there are typically some declines to follow. U.S. stocks have borne the brunt of them thus far. U.S. equities, as measured by the broad-market S&P 500 Index, were hovering near a 10% decline (the level of losses that technically define a market correction) at the time of this writing. Losses of 5%-10% are actually a fairly common occurrence (as shown in Exhibit 1) despite being unsettling to many investors.
Important information
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. All information as of the date indicated. There are risks involved with investing, including possible loss of principal. This information should not be relied upon by the reader as research or investment advice, (unless you have otherwise separately entered into a written agreement with SEI for the provision of investment advice) nor should it be construed as a recommendation to purchase or sell a security. The reader should consult with their financial professional for more information.
