Vector Wealth Management

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Markets, when in decline

Daily stock prices have been wobbling more than usual lately, and overall, prices have trended lower. Is it normal to see prices swing two percent or more in a day?

When we look back to the late nineties, we find a pattern emerges. Larger daily price movements, up and down, tend to be clustered together in time. There are years when not much happens and periods, like we're living through now, where a 2% shift is just another day.

Perhaps most interesting is that the price movements that negatively impact investors on the way down tend to be close neighbors to those price movements that benefit investors on the way up.

The US stock market is about 15% off the highs set at the start of the year. In our weekly video, we zoom out to understand what happens in the years after a decline, and we check in on CPI and inflation.

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