Markets go through cycles. We know this. The Chief Investment Strategist at Charles Schwab once said, "It's not what we know that makes us successful investors; It's what we do." Indeed, we can't know for sure what will happen in the next few years. Markets are uncertain in the short term. So, what can we do? At Vector, we suggest investors continuously prepare and position themselves for opportunities.

The U.S. stock market has performed well this year, only experiencing an intra-year decline of about -5%. However, as we dig a bit deeper, we find that 51% of S&P 500 index companies have experienced an intra-year price decline of 20 percent or more. These price dips are somewhat masked by the market being top-heavy.

We know that predicting short-term market movements is not a successful long-term strategy. It's not what we know; It's what we do.

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