4 Tips for Navigating Market Volatility
Despite the inevitable anxiety that accompanies it, stock market volatility may be beneficial. Corrections are a normal and essential part of the cyclical nature of the market, serving as a “pressure release valve” when equity markets soar too high too fast.
During the 17-month bear market that occurred from October 2007 to March 2009, the S&P 500 plummeted nearly 57%. Yet, it bounced back in a big way, ending 2009 with a 26% gain. More recently, during the initial month of the COVID crisis (from mid-February to late-March 2020), we saw the Dow Jones Industrial Average lose 37% of its total value, then rebound back up 43.7% by the end of the year.
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