Broker Check

What does it mean for your investments now that volatility has returned to the market?

| February 07, 2018

I know I just posted my Financial Insight for February, but in light of the recent return to volatility in the market, I felt it was important to reach out with some basic information about market performance, economic strength and our investment philosophy.

We have been in a very long period of strong market appreciation that has been almost without volatility for most of the time the market has been booming.  In fact, this post from Bespoke Investment Group from January 30th captures the reality of this period: "It has been 310 trading days since the S&P 500 last had back-to-back 0.50%+ declines. That's double the prior longest streak." 

Let that sink in. 310 trading days without two consecutive days of ½% declines. That is the anomaly.  I believe many of us have forgotten what the historical performance of the market is like.  This last week should remind all of us that the market doesn't normally go up and up without small corrections.

Here at Global View Capital Advisors our investment philosophy is simple.  We manage downside risk through the use of a strong defensive discipline that allows us to keep our clients invested through all market conditions by allowing our tactical money managers to move through all the market cycles.  This philosophy aims to manage downside risk when the market moves from a "bull" (rising) to a "bear" (falling more than 20%) market and to capture upside gains when the market moves from "bear" to "bull"

If you are feeling concerned by the recent market fluctuations and are not currently using tactical managers in your portfolio, please reach out to me so we can talk about how we may help you manage your downside risk now that volatility has returned to the market.

Also, please take a look at our latest Global View Report by clicking here.  The President of Global View Capital Management and our Chief Investment Strategist Dina Fliss, offers a very detailed explanation of what we do and why as well as a good look at why the markets may be normalizing with a return of volatility.  Kind Regards, Rudy