The stock markets’ abrupt dives so far in February have caused the S&P 500 to give back all of its 2018 gains. While these market drops can be disconcerting, they are a common occurrence in investing; the extended calm that preceded this volatility was the anomaly. We remain confident in our portfolio positioning and our clients’ ability to weather periods of uncertainty like this one.
We remain confident in our diversified portfolio positioning looking ahead over our long-term investment horizon. Financial markets were strong in 2017 and the macro outlook is positive. Unprecedented central bank policy shifts could trigger increased volatility, but that’s all the more reason to stay disciplined and patient.