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.
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
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