Are you ready for the next stock market correction?

We have been 721+ days without a 10% correction in stocks.   This is the 4th longest period since 1929.  Pullbacks are a healthy part of markets dynamics.  Every trade has a buyer (who thinks that markets are going higher) and a seller (who thinks markets are going lower).  It is impossible to time the market. Here are some items to consider:

• Markets have seen increased volatility and we expect this to continue.
• Most diversified portfolios declined in Q3 2014.
• This market volatility is very normal.
• Since 1950, over 692 rolling 7 year periods, the SP500 was positive 98% of the time. Thus, any money invested in stocks should be long-term money.
• Since 1950, the SP500 declines about 30% of the time over a 90 day period, 30% of the time over a 6 month period and 30% of the time over a 12 month period. Some of these losses can be dramatic and swift. It is impossible to time the market.
• Since 1928, markets have averaged about three 5% corrections (decline) each calendar year.
• The SP500 has not lost money in a calendar year since 2008 (this is 5.75 years). Again, the average is losing money about 30% of the time.
• A 5% correction from the market high of 2,000 points on the SP500 goes to 1,900 points. A 10% correction goes to 1,800 points. A 15% correction goes to 1,700 points.
• Surprisingly for 2014, bonds have been one of the best performing asset classes. Bonds are up 2% to 3% YTD 2014.
• During times of volatility, it is important to focus on your long-term goals and continue to save money.
• We believe that it is important to focus on what you can control in life and investing. For investing, this is building low-cost globally diversified portfolios that target the higher expected returns of value companies, small cap companies and companies with high profitability.

If you need help, give us a call at 303-549-4720 — Watch this brief video below to find out more about the current volatility in the markets and how you can best position your portfolio.

Key Actions to Survive the Next Bear Market

Find out Why DFA may be a better solution for your portfolio than Vanguard Funds, American Funds or Fidelity Funds.

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If you have over $500k in a portfolio and would like a free 2nd opinion about your strategy, give us a call.  Your retirement will thank you.

All the best,

Todd