Good Afternoon,
While market volatility can be unnerving for our clients, it is important to maintain a long-term outlook. Our core principles of investing are, to stay the course, and avoid market timing. We follow this discipline because historically we have seen markets occasionally experience their best performing days soon after their worst performing days. Please review the chart titled
“S&P 500 Index Performance During and After Extreme Down Days.”
Had an investor acted hastily and sold at the bottom it is likely that they then would have missed the subsequent positive returns, which would only have exacerbated their problem and provided a barrier to their financial goals.
Market fluctuations are not new. We also have a chart titled “
A History of Market Corrections
.” Over the last 118 years the Dow Jones Industrial average has experienced a 10% drop about every eight months, including as recently as 1st quarter of this year. The History of Market Corrections chart provides a context of the frequency of drops in the S&P 500 as well as the Dow Jones Industrial Average. We certainly cannot predict the future, so we think back to how we felt during the last sell off and remember the rewards of maintaining focus and staying invested. Though short-term swings in the market can be unsettling, we continue to maintain our long-term view for our clients and strive to provide the best opportunity for our clients to meet their financial goals.
Our team of advisors are here for you if you have any questions.
Robert G. Carpenter
President & CEO
Baltimore-Washington Financial Advisors
5950 Symphony Woods Road, Suite 600
Columbia, MD 21044
