The beauty of the public markets is the capacity to gain instant access to the most prosperous companies in the world. Additionally, financial information is standardized, allowing investors to obtain more precise insights into company operations. However, it is this liquidity benefit which can also act as a psychological burden to many investors. Investors tend to painfully watch their investments daily, counting each tick higher or lower.
Today is a day where the market is down roughly 1.75%, a mere 1.75% I may add. This is standard behavior for markets overall. Below is a way to think about the markets in a broader sense. The top chart takes the cumulative running total of 1% moves since the start of the year and compares it to the last 20 years. At 36 total 1% moves this year, 2018 is right smack in the middle of historical occurrences. The bottom graph highlights where 36 occurrences stacks relative to other annual figures. Overall, this suggests 2018 is normal concerning its daily moves.
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Sean D. Emory
Avory & Co. Founder & Chief Investment Officer
Disclaimer: This is not a recommendation for purchase or sale of any securities.
AVORY & CO. IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY. PLEASE SEE FULL DISCLAIMER HERE
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