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.

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