Markets move. This is the way.
Financial media will often report on market volatility seen from day-to-day, week-to-week, and month-to-month.
Last week, the FT reported on the “๐ธ๐ฐ๐ณ๐ด๐ต ๐ธ๐ฆ๐ฆ๐ฌ ๐ช๐ฏ 18 ๐ฎ๐ฐ๐ฏ๐ต๐ฉ๐ด ๐ข๐ด ๐ด๐ญ๐ฐ๐ธ๐ฅ๐ฐ๐ธ๐ฏ ๐ง๐ฆ๐ข๐ณ๐ด ๐ฎ๐ฐ๐ถ๐ฏ๐ต”. Whilst this statement is true, without the context historical returns provide this headline might cause investors unnecessary discomfort.
This figure shows that volatility is indeed a feature of markets, rather than a bug, as the saying goes. Large weekly swings in value are commonplace. Bearing with this shorter term uncertainty is necessary for investors to reap the rewards that stock markets can deliver over the longer term.
Over the time period shown, 43% of weekly periods saw negative returns. Not far from a coin toss.
(Mr) J.P. Morgan once provided one of the great short term market forecasts: "It will fluctuate.”
Related Blogs
Get in touch
Don't hesitate to get in touch - we would be delighted to receive your call or email. For enquiries about our service, please use the contact form and one of the team will respond in due course.