Although most of our Thursday posts typically focus on financial planning tips, it’s challenging to overlook the stock market during periods of turbulence. As of the time of this writing, the S&P 500 has experienced a decline of just over 7% from its intraday peak on July 27th.

(Source: JP Morgan Guide to the Markets)

Unfortunately, volatility is an inherent aspect of the investment landscape, as depicted in the chart above dated 8/31/2023. Since 1980, the S&P 500 has exhibited an average intra-year decline of 14.3%. In simpler terms, this implies that a correction of 10% or more is a customary occurrence in any given calendar year. Conversely, positive annual returns were recorded in 32 out of the past 43 years.

This week’s message is concise and to the point. While no one relishes the difficult times for the stock market, the historical data from the past 43 years emphasizes that we cannot avoid it. Adhering to an investment strategy that aligns with your financial objectives becomes crucial, especially when market conditions are turbulent.

Presented by the Financial Planning Committee of Lake Street, an SEC Registered Investment Adviser

The information contained herein constitutes general information and is not directed to, designed for, or individually tailored to, any particular investor or potential investor. This report is not intended to be a client-specific suitability analysis or recommendation, an offer to participate in any investment, or a recommendation to buy, hold or sell securities. Do not use this report as the sole basis for investment decisions. Do not select an asset class or investment product based on performance alone. Consider all relevant information, including your existing portfolio, investment objectives, risk tolerance, liquidity needs and investment time horizon. Diversification does not ensure a profit or guarantee against a loss. There is no assurance that any investment strategy will be successful. Investing involves risk and you may incur a profit or a loss.