- For the second consecutive trading day, global equity markets exhibited a high degree of volatility today. The S&P 500 opened sharply lower and was off nearly 3% at its lowest point mid-day before rallying into the close, finishing the day nearly unchanged.
- No single catalyst appears to account for the recent surge in volatility, but a number of factors likely played roles.
- Investor anxiety has risen in recent days, as concerns about the state of the economy and a lack of clarity around the current state of trade negotiations with China have been exacerbated by recent developments.
- We continue to believe that a broad swathe of economic data still paints a relatively positive story. Yes, growth is slowing, but recession risks still appear to be low.
- While recent volatility today can be unnerving, attempting to make meaningful investment decisions in response to (or anticipation of) short-term developments is ill advised. Investors are well served to look through the current risks, maintain a long-term perspective, and stay the course with their investment strategy.
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.