Our Thoughts on Recent Market Fluctuations
In the last year, and especially in the last few months, we have seen a return to normal levels of volatility, and it has not been a smooth and pleasant ride. However, this volatility is an opportunity to remind ourselves of a few things:
1) Markets recover much faster than we think. January markets have already recovered from late 2018 declines.
2) The year following US mid-term elections tend to be positive much more often than not, and those returns are double digits.
3) Markets tend to have positive returns following a negative year, as show in the below chart.
We continue to monitor markets and leading indicators and will adjust portfolios as required.
