Volatility in Pictures
Focus on the Rebounds
Volatility in Pictures: Focus on the Rebounds
Knowing when and how markets have recovered during past downturns can help investors today
Past performance does not guarantee future results.
WATCHING MARKETS SEESAW between positive and negative territory—especially when it happens a number of times over the course of a single trading session—is enough to unnerve even calm investors. But impulsive reactions to tumultuous markets are typically not a good idea, says Chris Hyzy, Chief Investment Officer for Bank of America Global Wealth & Investment Management. A better course, Hyzy believes, is to “stay the course and don’t over-react to daily volatility.”
The charts above may help provide you with some context. For instance, take a look at how significant one-day declines are often followed by strong rebounds over the ensuing 30- and 90-day periods. And see how missing the 10 strongest days in any decade could have a significant effect on your returns, according to BofA financial power Global Research.
Knowing when and how markets have recovered during past downturns can help investors today
Past performance does not guarantee future results.
WATCHING MARKETS SEESAW between positive and negative territory—especially when it happens a number of times over the course of a single trading session—is enough to unnerve even calm investors. But impulsive reactions to tumultuous markets are typically not a good idea, says Chris Hyzy, Chief Investment Officer for Bank of America Global Wealth & Investment Management. A better course, Hyzy believes, is to “stay the course and don’t over-react to daily volatility.”
Stay the course and don’t over-react to daily volatility.
Chris Hyzy, Chief Investment Officer, Bank of America Global Wealth & Investment Management