Skimming off the froth

Skimming off the froth

April 17, 2024

After a five-month rally that saw the S&P 500 gain 20%, we saw things cool off in April.  Uninterrupted rallies are uncommon; spikes in volatility and pullbacks are not unusual. 

We know that markets do not go up forever in a straight line.

Ups AND downs are normal and a sign of a healthy market (as opposed to a market bubble disconnected from economic fundamentals). 

The red numbers above remind us that temporary market declines AND positive annual returns can absolutely coexist. 

Thank goodness that investors with a lifetime financial plan don’t have to worry about timing the market- hopefully they didn’t learn the hard way that trying to AVOID temporary market declines will almost always lead to a lifetime of underperformance.

The cumulative effect of being invested every day is how we build wealth over the long term! 


Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

Securities and Retirement Plan Consulting Program services offered through LPL Financial, a

Registered Investment Advisor. Member FINRA/SIPC. Investment Advice offered through Western Wealth Management LLC, a Registered Investment Advisor. LPL Financial, Kennebec Wealth Management LLC and Western Wealth Management LLC are separate entities

Source: FactSet, Standard & Poor’s, J.P. Morgan Asset Management.

Returns are based on price index only and do not include dividends. Intra-year drops refers to the largest market drops from a peak to a trough during the year. For illustrative purposes only. Returns shown are calendar year returns from 1980 to 2023, over which time period the average annual return was 10.3%.

Guide to the Markets – U.S. Data are as of March 31, 2024.