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Volatility in First Quarter

1. The average annualized returns for the five-year period after 10% declines were 9.33%; after 20% declines, 9.66%; and after 30% declines, 7.18%. Credit: Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.

It has been an interesting first quarter, to say the least. When reviewing Dimensional Fund Advisor’s market report, the stock market is responding as quickly as the news travels. Dimensional Fund Advisors reminds us that markets are designed to handle uncertainty, processing information in real-time as it becomes available. This happens when markets decline sharply, as well as when they rise. For investors, these declines can be stressful but also demonstrate the market is functioning as expected. Historically, US equity returns, following sharp downturns, have on average, been positive as shown here.

At Soundmark, we plan and prepare for volatility. We work with our clients to make intelligent decisions, based upon financial needs, not market movements. If you have questions or would like some insight into our investment philosophy, let’s connect. Your life awaits, plan with confidence.


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