Our November newsletter covers some relevant and timely topics we hope you find value reading. This month’s newsletter focuses on the recent market volatility. Below we share data and market commentary that we feel is of interest. We are also pleased to provide Touchstone Advisory’s latest guide on “How to Grow Your Wealth” along with the latest monthly commentary from Pacific Asset Management.
We experienced the second market correction of 2018 (down 10% or more) in October. Market corrections happen more often than you may think (more on that below) and we recommend reviewing how your investment strategies manage this type of volatility. Below is some interesting data to consider regarding investing during periods of increased volatility (Source: Market Watch):
- From 1996 through 2015, the S&P 500 returned an average of 8.2% a year, yet if you missed out on the top 10 trading days because you were trying to time the market, the returns shrank to just 4.5%. And If you missed out on the top 20 trading days, your returns came in at just 2.1%.
- On average, the market has seen about one correction — defined as a decline of 10% or more — a year going back more than a century.
- Fewer than 20% of all corrections turn into a bear market. This means that 80% of corrections are just short breaks during a bull market. When the stock market starts tumbling, it can be tempting to abandon ship by selling assets and moving into cash. However, doing so could be a big mistake. You would likely be selling all of your assets at a low, right before the market rebounds!
How to Grow Your Wealth
Investing can be intimidating, a complex world with its own language. But by recongising and meeting your distinct requirements, we can have a positive impact on your life and investment objectives and help you through the entire process.
To read the full guide, click the link below:
Pacific November Monthly Commentary
Our partners at Pacific Asset Management share their latest Market Commentary. Please click the link below to read the latest monthly commentary:
NEW OFFICE ADDRESS
Please note we have moved our office location to downtown Manhattan’s financial district. Our new address is below:
Touchstone Advisory, LLC
90 Broad Street, Suite 904
New York, NY 10004
We hope you have a wonderful November. Please contact us if we can be of further assistance.