Principle #5: Volatility Is Normal; Don't Let It Derail You - J.P. Morgan Asset Management
CLOSE

PRINCIPLE #5: VOLATILITY IS NORMAL; DON'T LET IT DERAIL YOU

IS THERE ALWAYS A LIGHT AT THE END OF THE TUNNEL? NOT IF YOU CUT YOUR TRIP SHORT.

A long-term view can help keep investors on track – and even turn pull-backs into buying opportunities. Let’s navigate the market to build stronger portfolios.

Lower volatility equity strategiesACCESS ALL 7 PRINCIPLES   

Annual returns and intra-year declines

Seeing through the noise

Every year has its rough patches. The red dots on this chart represent the maximum intra-year decline in every calendar year for the S&P 500, since 1980. While these pull-backs can’t be predicted, they can be expected; after all, markets suffered double digit declines in 21 of the last 38 years.

But despite the many pull-backs, roughly 75% of those years ended with positive returns, as reflected by the gray bars.  Investors need a plan for riding out volatile periods instead of reacting emotionally.

 

 

 

 

Explore More Principles

Learn more about successful long-term investing

  <    PREVIOUS PRINCIPLE       NEXT PRINCIPLE   >  

USE EVERY ASSET CLASS TO YOUR ADVANTAGE

We offer investment strategies covering all asset classes for diversification and risk management to help you and your clients build stronger portfolios.

ACCESS 4 HIGH CONVICTION FUNDS

Diversification does not guarantee investment returns and does not eliminate the risk of loss. Diversification among investment options and asset classes may help to reduce overall volatility.