Here we are, 10-plus months into the year, and we have nothing to show for it.
At least, that is the case if we measure our progress by the gains (or losses) of the Dow Jones Industrial Average. The index is now unchanged for the year after last week’s losses. The previously one direction market has suddenly recalled what volatility looks like, having for the most part forgotten.
Yes, stocks go up AND down.
At the beginning of the fourth quarter, the Standard & Poor’s 500 Index was up about 7 percent for the year; those gains have now been cut by more than half. The Russell 2000 small cap index was already almost 5 percent, and the past few weeks have added to the red. The Nasdaq 100 is still positive on the year, but the has given back some of its gains.
I can’t tell you what will happen in the coming weeks or months, nor can I tell you what to do, not knowing your time horizon, risk tolerance and client base. I can, however, bring to your attention some interesting data points you may not have been aware of: