There have been several different dynamics we have observed, and of which we have lived, over the last 20 years since North Main Financial Group has been in business. We had the Internet boom, and then bubble, and then the bursting of the bubble at the end of the 1990s and into the early 2000s. We then had what some would describe as a real estate bubble happening from 2005 to about 2007.
Volatility is an intrinsic characteristic of the stock market. When you think about your financial plan, it’s important to have a solid understanding of your goals and situation so you can think through how a volatile market may affect your situation. The volatility of the market over the last few months may have made you take notice but it’s not a time to panic.
You may have been watching business shows or the nightly news in recent weeks and seen quite a bit of negative volatility in the stock market for the first time in a collection of months. We had some negative volatility earlier this year, but it seemed to dissipate over the summer. Fast forward to October and we’ve seen the negative volatility pick up in recent weeks.
If you’ve been watching the stock market the last few weeks you’re probably asking, “what is going on?” The stock market has had some movement that we haven’t seen for several months and in some cases, years. It’s been a rather tumultuous couple weeks and when that happens, it creates a certain amount of anxiety.