IMPORTANT DISCLOSURE INFORMATION
The following presentation by New England Capital Financial Advisors, LLC (“NECFA”) is intended for general information purposes only. No portion of the presentation serves as the receipt of, or as a substitute for, personalized investment advice from NECFA or any other investment professional of your choosing. Please see additional important disclosure at the end of this penetration. A copy of NECFA’s current written disclosure Brochure discussing our advisory services and fees is available upon request or at www.newenglandcapital.com.
Market Volatility
With recent events in the stock market, I thought it would be a good time to address volatility in the market. While it may be easy to get worried about a short-term market drop, I am here to tell you why there is no reason to panic.
Historically, there is a market pullback of 5% or more about 3.5 times per year. There is a market pullback of 10% or more about once per year. A market pullback of 15% or more happens about once every 3.5 years. Lastly, a market pullback of 20% or more typically happens about once every 6.3 years.
The point is, market volatility is common throughout history, but markets have always responded after times of uncertainty. The average 12 month return after a market drop of 15% or more is a whopping 55%. This is why it is important to remain calm and stay invested through volatile times.
In 2009, markets had dropped to levels not seen in over a decade, and investors were net sellers (they sold more stock than they bought). This net selling trend continued for the next 5 years, as markets recovered. This caused a lot of investors to miss out on some of the best returns in years.
As long-term investors, we think it is important to remain invested in the markets, even during times of economic uncertainty. As always, feel free to call any of us here at New England Capital with any concerns.
If you have any financial questions you would like Chris Beale to answer in his upcoming blog, please submit them to us, and he’ll be sure to address them in his next post!
IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance is no guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by New England Capital Financial Advisors, LLC [“NECFA”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from NECFA. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. NECFA is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the NECFA’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.newenglandcapital.com. Please Note: NECFA does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to NECFA’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Please Remember: If you are a NECFA client, please contact NECFA, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.