We are here for the volatility, we need to stick around for the reward
Thursday, April 2nd, 2020
What a wild ride we've experienced in the first quarter of 2020. Thank you for your trust to guide you through this volatile time. Although past performance is not an prediction or indicator or future returns, we can look at historical returns for some perspective on how market recoveries have looked previously. Please enjoy the following charts that offer some perspective.
Chart 1: Looks at the intra-year declines (red number) versus the annual returns since 1980 (gray number). Despite average intra-year drops of 13.8%, annual returns have been positive in 30 of 40 years. Thus far in 2020, the S&P has experienced a pullback as much as -34%. As of 3/31/2020, the return of the S&P was -20%. Keep in mind, the S&P is an index that tracks US Stocks and a diversified portfolio includes US Stocks, Foreign stocks and Fixed Income (stocks and bonds).
Chart 2: Looks at Average returns around the previous three bear markets. How interesting to see how each asset class stood 12 months prior to the market pullback, during the market drawdown, and the 12 month recovery period. We are here for the volatility, we need to stick around for the reward.
We thank you for your continued trust. We are here for you and welcome you to reach out should you have any questions or concerns.
- Alina Leon is here for all your scheduling needs - Alina@bfpcc.com
- Melissa Kolcz is here for any beneficiary updates or paperwork requests - Melissa@bfpcc.com
- Katie Brennan Kane is here for all your operations and investment requests - Katie@bfpcc.com
- Kelli Grew is here for your financial planning and investment needs - Kelli@bfpcc.com
- Michaela is here for your financial planning and investment needs - Michaela@bfpcc.com
Please continue to take good care of yourselves and be safe.
With gratitude for your trust,
Your Team @ Beacon Financial Planning of Cape Cod