What is risk? To the conservative investor, risk is a negative. To the opportunistic investor, risk is a factor to tolerate and accept.
While a new year means new beginnings—changing to a new calendar, signing up for a new gym membership, and struggling to remember to write 2016 on our checks—markets are starting 2016 off with the same growth concerns and heightened volatility that made the second half of last year a challenging one for investors.
August brings with it the end of summer, but in recent years, bouts of stock market volatility have been common. It is quite normal for stock prices to decline at some point almost every year. In 30 of the 34 calendar years since 1980, the stock market, as measured by the S&P 500 Index, declined into negative territory at some point. At times like these, when markets are moving lower...
We do not believe the volatility seen in recent weeks is immediate cause for alarm when viewed in the context of historical trends. There is precedent for moves of this magnitude—both up and down—that [...]