A Note on Recent Market Volatility

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The past two trading days in the stock market have been quite a shock to many investors as the Dow plunged over 600 points on Friday, followed immediately by an 1,175 point drop on Monday - the largest intraday point decline in its history. Similarly, the S&P 500 fell over 4% in its largest one-day decline since August 2011; erasing all its gains for 2018 so far. 

Much of the sell-off can be attributed to the January Jobs report that was released on Friday. As the unemployment rate remained steady at 4.1% and wage growth increased at its fastest rate since the middle of 2009, many investors have grown concerned that the Federal Reserve will begin to raise interest rates faster than what was previously expected. 

While the surge in market volatility and simultaneous plunge in the equity markets can be concerning in the short term, this may be a good opportunity to readdress your current portfolio allocation to evaluate if it still meets your risk tolerance and retirement goals. 

And as always, we encourage you to reach out to us with any questions at (781) 235-4426 or at info@assetstrategyrc.com.