Admist market volatility, our Director of Portfolio Management (Matthew Tarka, AAMS? CRPS?), took a deep dive into historical drawdowns back to 1995. The most important takeaway? It's important to remain committed to a long-term plan. Market timing is a futile effort and impossible to do. Our process stresses having a balanced asset allocation and a long term focus is crucial to the success of any plan. Though times like this can be unnerving, keeping the course can lead to smooth sailing
Market commentary always centers around the fact that there are drawdowns that occur often, but what exactly do they look like? A daily drawdown of 2% - 3% is the most common going back to 1995. This garden variety volatility can be the primer to push markets higher regardless of the political, economic, or societal backdrop. Portfolios have reaped the spoils of strong performance and a lack of volatility for years now. Re-enter diversification and active management - something that gets lost in times of strong markets. Through time tested approaches, diversification and active management can help you breathe a bit easier when large shifts hit the fan. Data Source: YCharts Disclosures: https://lnkd.in/d_BZ42f2