I hope you and your family are well! Yesterday, March 9th, was the eleventh anniversary of the final bottoming process of the bear market from 2007 to 2009. How ironic that the world elected to celebrate this iconic anniversary with, you guessed it, another panic attack.
I hope this finds you and your family doing well! Part of our communication protocol is to reach out to you when the equity markets enter correction status-down more than 10% at closing from a previously established record high. We did that yesterday on both the Dow Jones Industrial Average and the S&P 500.1 When we experience these kinds of swings, I think it is important to understand that corrections are a common occurrence though usually not as swift as what we have experienced this week. From 1949-2018, a 5% or more decline from a previously established high has occurred about 3 times a year. A 10% or more correction happens about once a year.2