This correction feels so different, but it likely isn’t. We often repeat that market corrections only seem “natural, normal, and healthy” until you are in one. Since the 09/21/18 peak, the S&P 500 (SPX), Nasdaq Composite (NAZ), and Russell 2000 (RTY) are down 10%, 14%, and 16%, respectively – and the environment feels awful. There has even been a more dramatic 26% pullback in the MSCI Emerging Market Index (MXEF) from it’s peak on 01/29/18 Although these pullbacks seem pretty dramatic, when you put them into the context of how much the widely followed indices rallied from the February 2016 low, it seems a lot more normal. The SPX, NAZ, RTY, and MXEF were up 62%, 93%, 62% and 85%, respectively since the lows on 01/20/16. We are in the process of consolidating those gains before the next intermediate-term leg higher begins.
Past performance is not indicative of future results. Index returns are unmanaged and do not include expenses and fees.
Sign up for more access!
Access additional content across the site when you sign up for an account.