Q1 Update: Recent Market Volatility Reinforces the Need for Long Term Perspective
Let’s talk about a few things that have happened in the last quarter. But first, a reminder about discipline.
When the market acts like it’s been acting lately, it’s a good time to remind everyone that, while downturns feel bad, they should not be a surprise. The history of the market is dotted with peaks and valleys that must have been hard to live through, even if they were temporary.
That’s why now, as ever, discipline should be your top priority. As DFA Founder and Chairman David Booth says, “reacting emotionally to recent market volatility may be more detrimental to portfolio performance than the drawdown itself.”
Keep your eyes on the long-term, ignore the noise, and stay focused on your vision through your financial plan.
Q1 Takeaways
View Dimensional’s complete market review here.
US stocks declined, with the S&P 500 Index falling 3.3% and the tech-heavy Nasdaq losing 7.8% as of March 21.
Near the end of the quarter, stocks in international developed markets and emerging markets were outpacing those in the US—a departure from recent trends.
Value stocks outperformed growth stocks for the quarter, but small caps lagged large caps.
In the bond market, US Treasuries rose, sending the benchmark 10-year yield below 4.5%.
The threat of tariffs is liable to loom over markets for the foreseeable future, with levies on China already in place and those on Canada and Mexico set to take effect in early April.
Please contact your advisor with any questions or concerns.
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