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Market Corrections and the Long-Term Investor

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On Tuesday, the S&P 500 entered correction territory––a decline of at least 10% from the previous high––following aggressive positioning at the Russo-Ukraine border.  We as investors may recognize that these events will endanger many innocent people, but may struggle to then take a step back to consider what this means for the stock market and the long-term investor.

 Though in times like these it can seem inappropriate to talk about markets, it is absolutely valid to be concerned with whether you can realize the long-term goals associated with your portfolios. 

 At Portfolio Advisors, we remind the families we serve that it is important to focus on those things that we can control.  It is worth recalling that as investors, we deal with changes and uncertainties constantly.  With recent market volatility, there might be opportunities for rebalancing portfolios with an eye towards the long-term.  The chart below provides some insight into historical corrections in the S&P 500 index and how markets have responded in the 1 and 2-year periods following such market turbulence.

 History tells us that corrections in the S&P 500 occur with some frequency but that, statistically, those investors have benefited by maintaining a disciplined approach with a focus on the long-term.

As always, feel free to reach out and schedule some time with your financial advisor if you would benefit from further discussion on this or any other pertinent topics.