Key takeaways:
- Market volatility can feel unsettling, but history reminds us that, despite inevitable dips, markets have grown over time.
- Investors naturally look for signs of recession amid periods of volatility, but it’s important to remember that the markets are not the economy. Rather, they are forward-looking pricing mechanisms, which means they often bottom during recessions – not after.
- Attempting to time investment decisions around market dips can lead to missing out on the recovery. Strategically managing around a market decline can help cushion the ride and make it easier to stay the course.
Volatility is one of the few constants in investing. Markets rise and fall, often without warning, and those swings can feel unsettling – even though they’re perfectly normal. Every downturn can feel like this time is different, but history reminds us that, despite inevitable dips, markets have grown over time.
One of the most striking realities of investing is how frequently markets experience meaningful pullbacks – even in years that end up solidly positive.
Read moreRelated insights
All opinions and estimates in this information are subject to change without notice and are the views of the author at the time of publication. Janus Henderson is not under any obligation to update this information to the extent that it is or becomes out of date or incorrect. The information herein shall not in any way constitute advice or an invitation to invest. It is solely for information purposes and subject to change without notice. This information does not purport to be a comprehensive statement or description of any markets or securities referred to within. Any references to individual securities do not constitute a securities recommendation. Past performance is not indicative of future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
Whilst Janus Henderson believe that the information is correct at the date of publication, no warranty or representation is given to this effect and no responsibility can be accepted by Janus Henderson to any end users for any action taken on the basis of this information.