My Thoughts On The Recent Stock Market Correction

My Thoughts On The Recent Market Volatility
The above 6-Minute video commentary on the recent market drop

As you watch this video, we’ve been experiencing something that hasn’t occurred on Wall Street since 2011 – a stock market correction.
 
Corrections are unsettling, yes – and they are also part of any ordinary bull market. Historically, they have occurred about every 18 months. This current bull is extraordinary – the S&P 500 has sailed along without a correction since October 2011 – the third longest interval without a correction in the past 50 years. That 2011 correction took three months to occur, so it was not nearly as dramatic as what we seem to be witnessing now.
Thinking in the long-term.
 
A correction is short-term, and your investing is long-term. The same goes for a bear market. Patience is part of investing, and when you have the patience to ride out turbulence and market shocks and stay invested, you position yourself to deal with any development.
What is driving stocks downward so violently?
 
1-Global investors are starting to believe China isn’t fully admitting the trouble within its economy.
2-Oil Prices are still dropping, partly on the assumption that China will demand less oil.
3-Wall Street still assumes that the Federal Reserve could raise interest rates next month.

The point is that these are short-term issues. They may not be in the mind of investors next quarter, next month or even next week for all we know. Headlines come and go and the market has amazing rallies and harsh selloffs. But remember that when it comes to the stock market, the sunny days have tended to outnumber the bleak ones.
Stay the course, this correction will pass…

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Take Care,

Jerry Broussard, CFP®

Jerry Broussard is a Kaplan, La and Lafayette, La Fee-Only Financial Planner serving the entire Gulf Coast region. Broussard Financial Group, LLC specializes in providing objective financial planning to help clients build, manage, grow, and protect their assets through life’s transitions. Jerry Broussard is also a NAPFA-Registered Financial Advisor and a CERTIFIED FINANCIAL PLANNER™ Professional. 

 

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