Mindful But Not Alarmed - By Jerry Black

Jennifer Hester |

Here at Legacy Planning Group, we are mindful but not alarmed. Market volatility is par for the course and there have been certain media exploitations of the data of what has transpired in the markets over these past few days. Yesterday the DOW (which represents only 35 stocks) was down 1100+/- points, or roughly 4% of the value. It’s important to remember two very important numbers. They are 25 and 10. History reveals there is a 25% chance in any given year the markets will decline 10% or more. It’s been about 8 years since we last had a 10% or more decline. Yesterday (2/5/2018) the market declined approximately 4%. A 4% decline does not even make it into the top 25 worst days. Markets don’t like uncertainty. In the short term, markets are driven mostly (not always) by human emotion. Years from now the DOW may be at 40,000 and the headlines will read something like this: The DOW, being down 1600 points, just experienced its worst single-day point drop in US history. Same percentage, different numbers. As of this writing at 3:25 pm 2/6/2018 the DOW is up 350 points. For further perspective: Should the market decline 20% it would arrive at a point where it was just one year ago. Accordingly, We Are Mindful But Not Alarmed. Don’t hesitate to give us a call if you’re concerned.



Past performance is not a guarantee of future financial results.  This information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. There is no guarantee that any opinion or suggested possibility will happen.