After a period of relative calm in the markets, in recent days the increase in volatility in the stock market has resulted in renewed anxiety for many investors. From September 30–October 10, the US market (as measured by the Russell 3000 Index) fell 4.8%, resulting in many investors wondering what the future holds and if they should make changes to their portfolios.1 While it may be difficult to remain calm during a substantial market decline, it is important to remember that volatility is a normal part of investing. Additionally, for long-term investors, reacting emotionally to volatile markets may be more detrimental to portfolio performance than the drawdown itself.
In the video below, Jake DeKinder, Head of Advisor Communication at Dimensional Fund Advisors, explains why investors should view recent market declines as part of the nature of investing.
If you’re interested in seeing more data and analysis about recent market volatility, we invite you to read more on the Dimensional Fund Advisors website. Click here to read more.
As always, we are honored to serve as your financial advisors, and welcome any questions you may have for us about the markets in general, as well as your specific portfolio.