Timely and Relevant News: Market Volatility
Markets pulled back on Thursday after a record setting rally. The Nasdaq Composite closed down nearly 5% and the Dow dropped more than 800 points.Market volatility can occur for a number of reasons. On Thursday, the Nasdaq was hit particularly hard as investors moved money out of tech and into cyclical stocks. As always, we are continuing to closely monitor both market fundamentals and technicals.
"Although there is no single driver for the weakness, it seems as if investors all of a sudden realized how overbought stocks are and sold...," said Ryan Detrick, Chief Market Strategist for LPL Financial.
G. Ward Keever, President and CEO of Covenant Wealth Strategies is often quoted as saying, "the market is an escalator on the way up, and an elevator on the way down." This is what we just witnessed. Markets generally move up relatively slowly and can move down rather suddenly from time to time. However, these down drafts often represent “buy the dip” opportunities.
If you have specific questions or would like to discuss your own investment strategy or financial planning needs, we welcome you to call us at 302.234.5655 or email us at contactus@covenantwealthstrategies.com to set up time to discuss further.