The U.S. markets on Wednesday, June 24, experienced more volatility as nervous investors reacted to a host of new data, including a growing number of reported COVID-19 cases, and a grim outlook by the International Monetary Fund (IMF) projecting a significantly deeper recession and slower recovery than it anticipated just two months ago.
Experts from our financial services partner, Avantax Wealth Management℠, address why the “risk-off” trade on Wall Street returned this week, with the large-cap S&P 500 Index ending June 24 down 2.6%, and the small-cap Russell 2000 Index down 3.5%. The attached Market Commentary is co-authored by Martin Landry, director of the Avantax Portfolio Management Group, and by Malav Gandhi, investment analyst with Avantax.
As we all know, the markets have spasmed before, and we should expect continued periods of volatility, particularly as fear and uncertainty find their way into headlines. It’s during the volatile points that we want investors to remember to take a deep breath, and don’t panic – making rash decisions during times of emotional stress often has negative consequences and can potentially threaten long-term financial goals.
Among the best ways to throttle emotion is to remember the “long-term why” – that is, why are you investing for the long term, and have those reasons changed based on the day’s events?
We are profoundly committed to a long-term view of investing, and we believe that perspective is in the best interest of nearly all investors. Our counsel today, as it has been through all the market volatility of 2020, is to hold fast, stay committed to your financial strategies, and know that we are always here for you – whether that’s to review your goals and plans, or just to talk each other through the latest rough patch of our shared financial journey.
Markets Driven Lower by Anxious Investors
June 26, 2020