Recent Market Volatility
By Generational Wealth Advisors
11/19/2018
Following a spike in volatility earlier this year, global equity markets returned to relative calm through summer and early fall. However, during October and November, an increase in volatility in the market has resulted in renewed anxiety for many investors.
From October 1 through November 23, the US market (as measured by the Russell 3000 Index) fell almost 10%, resulting in many investors wondering what the future holds and if they should make changes to their portfolios. Over just two trading days, on November 19 and 20, the handful of tech stocks that have driven the recent performance of the S&P 500 retreated even further. At their lowest points, Facebook, Amazon, Apple, Netflix and Alphabet (Google) were all down by more than 20% from their peaks.
While it may be difficult to remain calm during a substantial market decline, it is important to remember that volatility is a normal part of investing. Additionally, for long-term investors, reacting emotionally to volatile markets may be more detrimental to portfolio performance than the drawdown itself.
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Generational Group, headquartered in Dallas, is a leading, award winning, full-service M&A advisory firm. With more than 350 professionals located throughout 16 offices in North America, the company helps business owners release their business’ wealth by providing growth consulting, merger, acquisition, and wealth management services. The Generational suite of advisory services includes strategic growth consulting, exit planning education, business valuation, value enhancement strategies, M&A services, digital services, and wealth management.
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