Intra-Year Price Drops

Did you know that despite sizable intra-year drops in the market, 14 percent on average, the S&P 500 has had positive returns most of the time?

We expect volatility and its good friend uncertainty to appear throughout the year. Indeed, this is the risk and reward trade-off that brings participants to the market.

Markets reacted this week to reports of the Omicron variant and a hawkish shift in tone from the reappointed Federal Reserve chairman.

When we extend our time horizon, we find that having a plan to ride out short-term volatility makes better opportunities possible in the long-term. To be sure, past performance does not guarantee future results. Nevertheless, history can help guide us to plan for uncertainty.

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