VOLATILITY - IT GOES BOTH WAYS!

February 29, 2024

Recently the market has been doing great positive things! It has been going higher, and the S&P 500 hit a record high today as I write this.

 

Here is a wonderful quote by Howard Marks the author of:  The Most Important Thing- Uncommon Sense For The Thoughtful Investor

“Note that … ‘volatility’ is often a misnomer. Strategists and the media often warn ‘there is volatility ahead.’ What they really mean is ‘there may be price declines ahead.’

No one worries about, or minds experiencing, volatility to the upside.” - Howard Marks, “What Really Matters,” November 22, 2022.

 

Interesting to note what the markets were like in 1958, the year that many of you were born, through the December 31, 2023 (65 years):   

                      ~The Power of Positive Volatility~


 19582023 
S&P 500:554769.83 UP 86.7 times
Dividend per share:$1.75$70.30 UP 40.2 times
CPI (consumer price index):29.9307 UP 10.3 times

 

You need to own equities continuously for the rest of your lives! As this shows, equities are a powerful inflation hedge.   Investments are subject to risk, including the loss of principal. Some investments are not suitable for all investors, and there is no guarantee that any investing goal will be met. Past performance is no guarantee of future results. Talk to your financial advisor before making any investing decisions.