Inside This Edition …
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The Beat Goes On
The previous edition of the Summit Perspective was composed at the end of 2018 amid a market swoon with U.S. stock indices dipping 20 percent from their autumn highs.1 We took the opportunity to perform a lifeboat drill on how to navigate bear markets and market volatility. It was good advice, and we earnestly wanted to share it with you— and then the world failed to end! One could sense things were a bit overblown on Christmas Eve as the U.S. stocks hit what turned out to be the recent bottom given the solid fundamentals in earnings and profits. However, the speed of the recovery that has occurred in the first few months of 2019 surprised many market watchers.
As in preceding downturns, this most recent version melted away and the capital markets resumed their forward progress. However, this time the downturn happened to coincide with the calendar, just in time for investors to receive their report card via their annual statement. If the investing public wasn’t spooked out of their portfolios by Christmas Eve as the market bottomed, many saw the first meaningful annual losses in years on their statements and began to worry.