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October 29, 2018 Blog 1 min read
October is a notoriously volatile month for equity markets, and this year is no exception. Still, the volatility since the beginning of the year isn’t unusual in a historical context. To the contrary, it is much more like a typical year than not.
  • Market dynamics changed in October, and the uptick in volatility has prompted concerns for investors. Despite the recent choppiness in markets, this year has not been abnormal from a volatility perspective.
  • A combination of factors appear to be contributing to the recent risk-off environment. These include growing concerns about growth peaking, higher interest rates, U.S.-China trade tensions, and uncertainty stemming from the upcoming midterm elections.
  • Although the pace of economic growth may have peaked in Q2, most economists expect that the economy has room to grow further, extending the current expansion to 2020 or beyond.
  • While bouts of volatility can create angst for investors, short-term emotions should not drive one’s investment decisions. Creating and adhering to a sound investment plan can not only help weather choppy markets, but can allow investors to take advantage of the opportunities they will present

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Disclosures

Past performance does not guarantee future results. All investments include risk and have the potential for loss as well as gain.

Data sources for peer group comparisons, returns, and standard statistical data are provided by the sources referenced and are based on data obtained from recognized statistical services or other sources believed to be reliable. However, some or all of the information has not been verified prior to the analysis, and we do not make any representations as to its accuracy or completeness. Any analysis nonfactual in nature constitutes only current opinions, which are subject to change. Benchmarks or indices are included for information purposes only to reflect the current market environment; no index is a directly tradable investment. There may be instances when consultant opinions regarding any fundamental or quantitative analysis may not agree.

Plante Moran Financial Advisors (PMFA) publishes this update to convey general information about market conditions and not for the purpose of providing investment advice. Investment in any of the companies or sectors mentioned herein may not be appropriate for you. You should consult a representative from PMFA for investment advice regarding your own situation.