Volatility is back: What does the recent market sell off mean

Feb 15, 2018 | Doug Vicic


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Volatility is back: What does the recent market sell off mean - a few thoughts...

You have probably heard several times on the recent news: “the Dow had its largest point drop in history today”

 

A few thoughts

 

  • A more reasonable way to look at this is in terms of percentages. Drop was closer to 4% which is not trivial but not near the larger % drops in history such as 1987 (over 20%)
  • This move takes the Dow back to where it was in December (about 2 months ago)
  • Market needed a correction. While this was more than most anticipated it is well within the range of normal pullbacks.

 

Things we are watching for that would cause us to become more cautious

 

  • Downturn in leading indicators
  • Inverted yield curve
  • Federal reserve raising interest rates quickly
  • USD increasing quickly

Our Portfolio Advisory Group has published a piece on the recent market volatility and what this can mean.  Click Here to read more.

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